Venezuela 2000 restructures its electric power sector to ensure competitiveness
- Electrical Power Sector, Caracas (Venezuela)
Today, it is well known that the countries that are best equipped to develop their production are not those with the most natural resources but those who have the best trained people, most technical resources and that base their development on competitiveness. The State model is, definitely, not one that offers the greatest advantages, and Venezuela is an example of this. Even when, thanks to the economic boom the country enjoyed in the 70s and 80s, it was able to cost the investments required to develop its infrastructure and to prepare a first class human contingent, over the long term, competition was discouraged and waste encouraged. The result was that, even when Venezuela had vast economic resources compared to its relatively small population, it was not able to become the exception to the rule and succeed in applying this model--now considered obsolete in many countries--indefinitely. Another model based on private ownership has begun to take its place, one that has made it possible to cost the increasingly large investments required, involves opening up these sectors to private capital, and uses the phenomenon of globalization--a major driving force behind competition and one that has wrought considerable change in all corners of the increasingly smaller planet. This paper describes the steps that different sectors in the country have been taking to implement this new model in the electric power sector, such as developing draft legislation for regulating the Sector, very shortly to culminate in the passing of an electric power law by Congress; opening up the Sector to private investors (privatization); dividing the electric power industry into four business units (generation, transmission, distribution and marketing); the electric power market; and other innovations currently being implemented.
- Research Organization:
- Illinois Inst. of Tech., Chicago, IL (United States)
- OSTI ID:
- 696731
- Report Number(s):
- CONF-990410--PROC.-Vol.2
- Country of Publication:
- United States
- Language:
- English
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