The 1996-97 Gas Price Review in Argentina

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collection.link.196
https://openknowledge.worldbank.org/handle/10986/9427
collection.name.196
Viewpoint
dc.contributor.author
Gomez-Labo, Andres
dc.contributor.author
Foster, Vivien
dc.date.accessioned
2012-08-13T15:13:13Z
dc.date.available
2012-08-13T15:13:13Z
dc.date.issued
1999-04
dc.description.abstract
Argentina's natural gas industry was privatized at the end of 1992. Prior to divestiture, the state-owned monopoly Gas del Estado was divided into two transport and eight distribution companies, all of which were sold through international bidding. An independent government body, Ente Naal Regulador de Gas (Enargas), was established to regulate the transport and distribution segments of the industry. As part of its mandate, Enargas is in charge of price reviews. These reviews, which occur every five years, determine the allowed tariffs for each transport and distribution company. The first such review took place in 1996-97, and the new tariffs went into effect in January 1998. This Note examines the methodology and outcome of this experience. The Enargas price review is of interest for several reasons. First, it is the first of its kind in Argentina, and one of the first in a developing country. The outcome of the process provides a test of the regulatory framework adopted by the Argentine government, and may influence regulatory reform in other parts of the world. Second, as the first such event, the 1996-97 review set a precedent for methodologies and approaches to be used in future utility price reviews in Argentina. Finally, the approach used to calculate the cost of capital-as well as the other parameters used to set prices-provide an interesting illustration of how theoretical and practical methods from regulatory practice in industrial countries can be adapted to developing countries, where data availability and other restrictions prevent a direct transfer of techniques.
en
dc.identifier.citation
Viewpoint -- Note No. 181 (April 1999)
dc.identifier.uri
http://hdl.handle.net/10986/11493
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Viewpoint
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
GAS PRICES
dc.subject
ASSETS
dc.subject
BONDS
dc.subject
CASH FLOW ANALYSIS
dc.subject
CASH FLOWS
dc.subject
CONSTRUCTION
dc.subject
CONSUMERS
dc.subject
COST OF CAPITAL
dc.subject
DEBT
dc.subject
DEPRECIATION
dc.subject
ECONOMIC RESEARCH
dc.subject
EQUITY CAPITAL
dc.subject
GAS
dc.subject
INCOME
dc.subject
INDEXATION
dc.subject
INFLATION
dc.subject
INTEREST RATE
dc.subject
INVENTORY
dc.subject
LEGISLATION
dc.subject
MARKET VALUE
dc.subject
MATURITIES
dc.subject
MONOPOLIES
dc.subject
OPERATING COSTS
dc.subject
OPPORTUNITY COST
dc.subject
POPULATION DENSITIES
dc.subject
PRESENT VALUE
dc.subject
PRODUCTIVITY
dc.subject
PRODUCTIVITY INCREASES
dc.subject
PURCHASE PRICE
dc.subject
REGULATORY CAPTURE
dc.subject
REGULATORY FRAMEWORK
dc.subject
REGULATORY REGIMES
dc.subject
RISK PREMIUM
dc.subject
SOVEREIGN RISK
dc.subject
TIME SERIES
dc.subject
TOTAL FACTOR PRODUCTIVITY
dc.subject
TOTAL FACTOR PRODUCTIVITY ANALYSIS
dc.subject
TRANSPORT
dc.subject
VALUATION
dc.subject
VEC
dc.subject
YIELD TO MATURITY
dc.subject
NATURAL GAS
dc.subject
MONOPOLIES
dc.subject
BIDDING
dc.subject
TARIFFS
dc.subject
TECHNOLOGY
dc.subject
REGULATORY FRAMEWORK
dc.subject
METHODOLOGY
dc.subject
COST OF CAPITAL
dc.subject
DEVELOPING COUNTRIES
dc.subject
GAS SUPPLY ASSET PRICING
dc.title
The 1996-97 Gas Price Review in Argentina
en
okr.doctype
Publications & Research :: Viewpoint
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/1999/04/2529867/1996-97-gas-price-review-argentina
okr.globalpractice
Social, Urban, Rural and Resilience
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Governance
okr.globalpractice
Environment and Natural Resources
okr.globalpractice
Finance and Markets
okr.globalpractice
Water
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
000090341_20031001125011
okr.identifier.internaldocumentum
2529867
okr.identifier.report
26831
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/10/01/000090341_20031001125011/Rendered/PDF/268310VP0Note0no101810gomez.pdf
en
okr.region.administrative
Latin America & Caribbean
okr.region.country
Argentina
okr.sector
Energy and mining :: Oil and gas
okr.topic
Urban Development :: Municipal Financial Management
okr.topic
Banks and Banking Reform
okr.topic
Economic Theory and Research
okr.topic
Water Resources :: Water and Industry
okr.topic
Environmental Economics and Policies
okr.topic
Finance and Financial Sector Development
okr.topic
Macroeconomics and Economic Growth
okr.topic
Environment
okr.unit
Off of VP
okr.unit
FPD&IFC Chief Econ-WB (FPDVP)
okr.volume
1 of 1

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