Investing in the power transmission industry

How to mitigate the regulatory risk linked to the modification of the tariff rules applicable to the electricity transmission activity in the Guaranteed Transmission System?

Abstract

The investment in electricity transmission infrastructure has the regime of Public-Private Partnerships as a regulatory policy. The projects are awarded through a tender and the subscription of the Concession Contract. However, the determination of rates is established by the referred contract and by a different regulatory framework. This generates a regulatory risk, as there are no mechanisms to mitigate the future damages that may arise after the modification of the applicable regulatory framework.