The Indispensability of New Financial Instruments in the Reorganization of the Energy Industry

Abstract

Energy issues have marked global economic life, and the sectoral reality is undergoing significant reconfigurations. The primary objective of the reorganization of the electricity industry has been to promote competition in segments where its inclusion is desirable, to limit the outcomes of the industry resulting from regulated monopoly, and to introduce new regulatory mechanisms for the remaining monopolistic segments, with the aim of reducing costs and allowing efficient prices. Consequently, the specific characteristics of this commodity make it urgent to develop appropriate financial instruments to address emerging financial risks, especially since electricity has begun to be traded on the stock exchange under rules very similar to those of any other commodity.