Title: Regulation and entry of new players in the electric sector: the Brazilian case revisited

Authors: Helder Queiroz Pinto, Mariana Iootty

Addresses: Institute of Economics, Federal University of Rio de Janeiro, Av. Pasteur, 250, room 123, Praia Vermelha, Rio de Janeiro, Brazil. ' Institute of Economics, Federal University of Rio de Janeiro, Av. Pasteur, 250, room 123, Praia Vermelha, Rio de Janeiro, Brazil

Abstract: The new basic conditions of energy industries – depicted by the deregulation process, technological innovations, and maturity of network industries in the industrialised countries – promoted the transformation, on the international level, of the energy sector|s industrial configuration. In many countries, this movement has been accompanied by the privatisation process of electric firms. Direct impact upon ownership restructuring can be identified. In the Brazilian case, one of the interesting features was the entry of some international players. The present work draws attention to the need for adaptation of the Brazilian electric sector institutional design, given the new strategic behaviour of energy firms. The paper highlights that the opening up process carried out on the Brazilian electric sector has also contributed to instability of the sector, due to the recurrent changes in the strategic goals of these firms, and to the institutional and regulatory uncertainties in the sector.

Keywords: firm strategies; institutional design; regulatory features; electricity sector; Brazil; strategic management; energy firms; international organisations; privatisation; business strategy.

DOI: 10.1504/GBER.2005.007614

Global Business and Economics Review, 2005 Vol.7 No.2/3, pp.180 - 190

Published online: 20 Aug 2005 *

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