Electric energy supply deregulation-retail competition

The restructuring of the electric sectors, and especially in the sense of allowing all final users to choose their electricity supplier ("retail access" or "direct access"), requires an analysis and solution of a great number of issues. The object of such analysis consists in establishing clear commercial relationships and responsibilities by the market participants and ensure an efficient and fair market operation. The complete deregulation of electricity supply generates uncertainties and shows a great number of problems that must undoubtedly be wholly solved before retail access starts operating. These problems and uncertainties involve legal, technical, commercial and regulatory aspects, most of which still have no answer. The different countries and states that have allowed their small and large users to choose their supplier have solved the problems caused by this access in different ways, based on the particular structure of each wholesale market and their political situation. This paper presents the international experiences in retail access and details on the different implementations, with the object of providing a comparative picture and the corresponding background. Given the extent of the information presented, we have chosen to include the relevant aspects of each subject analysed. Finally, a general analysis of the advantages and inconveniences produced by such a measure is made, according to the experience gathered in all the places where it has been implemented