The 1996-97 Gas Price Review in Argentina
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 bid...
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1999/04/2529867/1996-97-gas-price-review-argentina http://hdl.handle.net/10986/11493 |
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okr-10986-114932021-04-23T14:02:55Z The 1996-97 Gas Price Review in Argentina Gomez-Labo, Andres Foster, Vivien GAS PRICES ASSETS BONDS CASH FLOW ANALYSIS CASH FLOWS CONSTRUCTION CONSUMERS COST OF CAPITAL DEBT DEPRECIATION ECONOMIC RESEARCH EQUITY CAPITAL GAS INCOME INDEXATION INFLATION INTEREST RATE INVENTORY LEGISLATION MARKET VALUE MATURITIES MONOPOLIES OPERATING COSTS OPPORTUNITY COST POPULATION DENSITIES PRESENT VALUE PRODUCTIVITY PRODUCTIVITY INCREASES PURCHASE PRICE REGULATORY CAPTURE REGULATORY FRAMEWORK REGULATORY REGIMES RISK PREMIUM SOVEREIGN RISK TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY ANALYSIS TRANSPORT VALUATION VEC YIELD TO MATURITY NATURAL GAS MONOPOLIES BIDDING TARIFFS TECHNOLOGY REGULATORY FRAMEWORK METHODOLOGY COST OF CAPITAL DEVELOPING COUNTRIES GAS SUPPLY ASSET PRICING 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. 2012-08-13T15:13:13Z 2012-08-13T15:13:13Z 1999-04 http://documents.worldbank.org/curated/en/1999/04/2529867/1996-97-gas-price-review-argentina Viewpoint -- Note No. 181 (April 1999) http://hdl.handle.net/10986/11493 English Viewpoint CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Viewpoint Publications & Research Latin America & Caribbean Argentina |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
GAS PRICES ASSETS BONDS CASH FLOW ANALYSIS CASH FLOWS CONSTRUCTION CONSUMERS COST OF CAPITAL DEBT DEPRECIATION ECONOMIC RESEARCH EQUITY CAPITAL GAS INCOME INDEXATION INFLATION INTEREST RATE INVENTORY LEGISLATION MARKET VALUE MATURITIES MONOPOLIES OPERATING COSTS OPPORTUNITY COST POPULATION DENSITIES PRESENT VALUE PRODUCTIVITY PRODUCTIVITY INCREASES PURCHASE PRICE REGULATORY CAPTURE REGULATORY FRAMEWORK REGULATORY REGIMES RISK PREMIUM SOVEREIGN RISK TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY ANALYSIS TRANSPORT VALUATION VEC YIELD TO MATURITY NATURAL GAS MONOPOLIES BIDDING TARIFFS TECHNOLOGY REGULATORY FRAMEWORK METHODOLOGY COST OF CAPITAL DEVELOPING COUNTRIES GAS SUPPLY ASSET PRICING |
| spellingShingle |
GAS PRICES ASSETS BONDS CASH FLOW ANALYSIS CASH FLOWS CONSTRUCTION CONSUMERS COST OF CAPITAL DEBT DEPRECIATION ECONOMIC RESEARCH EQUITY CAPITAL GAS INCOME INDEXATION INFLATION INTEREST RATE INVENTORY LEGISLATION MARKET VALUE MATURITIES MONOPOLIES OPERATING COSTS OPPORTUNITY COST POPULATION DENSITIES PRESENT VALUE PRODUCTIVITY PRODUCTIVITY INCREASES PURCHASE PRICE REGULATORY CAPTURE REGULATORY FRAMEWORK REGULATORY REGIMES RISK PREMIUM SOVEREIGN RISK TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY ANALYSIS TRANSPORT VALUATION VEC YIELD TO MATURITY NATURAL GAS MONOPOLIES BIDDING TARIFFS TECHNOLOGY REGULATORY FRAMEWORK METHODOLOGY COST OF CAPITAL DEVELOPING COUNTRIES GAS SUPPLY ASSET PRICING Gomez-Labo, Andres Foster, Vivien The 1996-97 Gas Price Review in Argentina |
| geographic_facet |
Latin America & Caribbean Argentina |
| relation |
Viewpoint |
| description |
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. |
| format |
Publications & Research :: Viewpoint |
| author |
Gomez-Labo, Andres Foster, Vivien |
| author_facet |
Gomez-Labo, Andres Foster, Vivien |
| author_sort |
Gomez-Labo, Andres |
| title |
The 1996-97 Gas Price Review in Argentina |
| title_short |
The 1996-97 Gas Price Review in Argentina |
| title_full |
The 1996-97 Gas Price Review in Argentina |
| title_fullStr |
The 1996-97 Gas Price Review in Argentina |
| title_full_unstemmed |
The 1996-97 Gas Price Review in Argentina |
| title_sort |
1996-97 gas price review in argentina |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/1999/04/2529867/1996-97-gas-price-review-argentina http://hdl.handle.net/10986/11493 |
| _version_ |
1764416933305778176 |