The operation of electric power systems in the 1970s was a vertically integrated activity with a strongly monopolistic character and with a public acceptance energy supply service obligation in their location area. Their activities were under the scrutiny of a regulatory authority accountable, directly or indirectly, to the government.
The 1980s brought changes to this landscape. Achievements in technology, a political environment favorable to ‘free markets’ and opposed to monopolies, of the state in particular, as well as modifications to the ownership structure by placing distribution and production assets in the hands of private ownership have changed the perception of energy sector development completely. An important part of the sector, that related to network services (transmission, distribution), still remains a natural monopoly which needs monitoring by the state by regulating access to the network in a non-discriminatory way, as well as by providing protection mechanisms for underprivileged consumers. Privatization in Chile and the UK marked the beginning of this process.
