Abstract

With the California crisis developing and its power exchange (PX) being closed, the concern arose in Latin American countries about the validity of the new pradigm for second-stage reforms. The path is still being defined, but clearly the naive approach to an ideal unregulated bid-based spot exchange market is discarded. Generally, all markets are successful in emulating competition and discarding market power. Contract financial markets is developed in parallel between generation and large consumers. Private investment has flown to the region prices has declined significantly in most markets, and security and quality of supply has increased.