| Date
|
Event
|
| 1947 |
First 100-percent
federally-owned electric utility, Agua y Energia
Electrica, Sociedad del
Estado (Ayee), was created. |
| 1950 |
Argentina
begins its nuclear research and development program,
creating
Comision Nacional de Energia Atomica (Conea). |
| 1957 |
Second
100-percent federally-owned electric utility, Servicos
Electricos del Gran Buenos Aires
(Segba), was
created to serve the Buenos Aires metropolitan area.
|
| 1977, March |
The Foreign
Investment Law is passed, allowing foreign investors for
the first time to remit all their
profits from
Argentine investments to their home country. |
| 1982 |
Nationalization
of electricity ends with the acquisition of the remaining
investor-owned
utility-Compania
Industrial de Argentina Electrica (Ciae). |
| 1989 |
The Economic
Emergency Law passed, suspending all state subsidies and
creating incentive
programs for
mining and manufacturing companies. |
| 1989,
September |
The
Administrative Reform Law passed, defining the ground
rules for investment in formerly
federally-owned
companies. |
| 1992, January
|
The Electric
Law passed, establishing a legal structure for the
restructuring and privatization
of the
electricity industry. |
| 1992 |
The Bilateral
Investment Treaty is signed, giving U.S. companies the
right to invest in Argentina under
terms at least
as favorable as those accorded Argentine firms. |
| 1992, April |
60 percent of
the thermal generator Central Puerto (formerly part of
the federal electricity company
Segba) is sold
to three Chilean electricity companies, marking the
initial privatization of Argentina's
electricity
industry. |
| 1992, May |
60 percent of
the thermal generator Central Costanera (formerly part of
the federal electricity
company Segba)
is sold to foreign companies, including the U.S. company
Entergy. This was the
first purchase
of an Argentine electricity company by a U.S. company.
|
| 1993 |
The Amendment
to the Foreign Investment Law is passed, removing foreign
investors' burdensome requirement of receiving prior
federal approval for all investment (a few investments
still require the
prior approval
step). |
| 1993 |
The Decree
1853 is passed removing most remaining restrictions on
foreign investment. The Decree
allows
100-percent foreign ownership of Argentine firms and full
repatriation of profits and capital
to the home
country of foreign investors. |
| Date
|
Event
|
| 1990,
November |
The Industry
Commission recommended reforms that included the
privatization and/or
commercialization
of all state-owned electricity industries. |
| 1991, May |
The
Commonwealth, state and territorial heads of government
established the National
Grid Management
Council, an intergovernmental advisory body, to develop
the National
Electricity
Code. |
| 1993 |
The National
Competition Policy Review, known as the Hilmer Commission
Report,
identified
industries (such as electric, gas, water, and road
transport) where reform
could yield
substantial benefits to Australia's economy. |
| 1994, October
|
The National
Grid Management Council developed interim market
arrangements and
broad objectives
for the national electricity market, released in a report
entitled
"Restructuring
of the Electricity Supply Industry in Australia." |
| 1995, April |
The Council
of Australian Governments agreed to a national
competition policy reform,
the National
Competition Reform Act 1995, which provided, in part, for
uniform protection
of consumer and
business rights and increased competition in all
jurisdictions. |
| 1995, April -
July |
The first
draft of the National Electricity Code was issued to the
public for comment. |
| 1995,
September |
The National
Grid Management Council prepared a second report
detailing the market
functions
proposed for the National Electricity Code. |
| 1996,
September |
The National
Electricity Code was finalized. |
| 1996,
November |
The National
Electricity Code was submitted to the Australian
Competition and Consumer
Commission, with
approval expected in late 1997. |
| 1997, May |
The first
phase of the national electricity market began in New
South Wales, Victoria, and
the Australian
Capital Territory. |
| 1997, October
|
All the
regulations of the National Electricity Code are to be
imposed, except those for
market rules and
system security, which will be governed by State Codes
until the
national market
systems are operational. |
| 1997, October
|
Queensland is
to participate in the national electricity market system.
|
| 1998 |
The national
market systems are to be in operation and full
implementation of market
arrangements
will be applied according to the National Electricity
Code. |
| 1998 |
South
Australian generators will enter the market as full
participants. |
| Date |
Electricity
Reform Milestones in the Australian States |
| |
Victoria
|
| 1993, October
|
Victoria's
monopolistic electricity industry, the State Electricity
Commission of Victoria,
was vertically
separated into three segments: generation, distribution,
and transmission. |
| 1994 |
The
government created state-owned entities. The generation
sector was divided into
5 competitive
and independent companies. The former 29 electricity
distribution companies
were merged into
5 companies and a transmission company, PowerNet
Victoria, was
created. |
| 1994 |
The state's
wholesale market became operational. |
| 1992,
December |
In December
1992, Victoria began the privatization of its generation
sector with the
51-percent sale
of its Loy Yang B power station to the U.S.-based Edison
International's
Mission Energy
Company. In May of 1997, Edison International purchased
the remaining
stake in the Loy
Yang B power station. |
| 1996, March |
The
generation plant, Yallourn-W, was sold to PowerGen PLC of
the United Kingdom. |
| 1996, August |
The Hazelwood
coal-fired plant and a coal mine were sold to a group led
by National
Power PLC of the
United Kingdom. |
| 1997, May |
The Loy Yang
A coal-fired power station and a coal mine were sold to a
consortium
group led by the
U.S. company CMS Energy. This was the largest energy
asset
privatization in
Australian history. |
| 1996 |
Customers
with energy consumption of 750 megawatts per year became
eligible to
choose their
electricity marketer. |
| 1995 |
The state
began the privatization of its electricity assets through
the auction of all of its
5 electric power
distribution companies (United Energy, Solaris Power,
Eastern Energy,
Powercor, and
Citipower). |
| 1997 |
PowerNet
Victoria Transmission, the state-owned agency operating
Victoria's
high-voltage
electricity transmission grid, is expected to be
privatized. |
| |
New South
Wales |
| 1991, August |
The states'
monopolistic electricity industry, Electricity Commission
of New South Wales,
was renamed
Pacific Power and was restructured internally into six
smaller business
units. |
| 1994 |
Pacific
Power's electricity transmission network business unit
was established as a
separate legal
entity, the Electricity Transmission Authority, and was
later separated
from Pacific
Power in February 1995 to form a state-owned corporation
(now called
TransGrid). |
| 1995, October
|
The state's
previous 25 distribution boards were aggregated into six
businesses and
were later
corporatized1 in March 1996. |
| 1996, May |
The wholesale
market became fully operational. |
| 1997, July |
Customers
with energy consumption of 750 megawatts per year became
eligible
to choose their
electricity marketer. |
| 1997, May |
The New South
Wales' treasurer, Michael Egan, announced his intentions
to privatize
all of the
state's electricity assets. |
| 1995 |
A consortium
consisting of Air Liquide Australia Ltd, Itochu
Corporation (a Japanese
company), and
Energy Australia (New South Wales' electricity
distributor) was formed
to develop a
350-megawatt cogeneration plant in Sydney. |
| 1995,
December |
Energy
Developments Limited (an Australian company) became
involved in a 4-megawatt
gas-fired power
plant, and a proposed 90-megawatt coal steam methane
power plant. |
| 1995,
December |
Sithe
Energies (a U.S.-based independent power producer) and
Broken Hill Proprietary (Australian-owned) began the
construction of a 175-megawatt cogeneration plant at
Smithfield (near
Sydney, Australia), with commercial operations to begin
in 1997. |
| 1997 |
Energy
Australia withdrew from the cogeneration project in
Sydney. |
| |
The
Australian Capital Territory (ACT) |
| 1995, July |
The ACT's
monopolistic electricity industry was corporatized. |
| 1996, March |
The ACT began
to participate in the New South Wales electricity market.
|
| 1997, May |
The ACT began
to operate in the national electricity market in
conjunction with
New South Wales
and Victoria. |
| 1997 |
The ACT is to
begin retail competition. |
| |
Queensland
|
| 1995, January
|
The state's
monopolistic electricity company, the Queensland
Electricity Commission,
was restructured
and corporatized to form two new government
corporations--
AUSTA Electric
and the Queensland Transmission and Supply Corporation
(QTSC). |
| Late 1997 |
AUSTA
Electric is to be split into three generating companies
that will compete amongst
themselves to
supply the seven existing government electricity
distributors. |
| Late 1997 |
Three new
electricity marketing corporations are to be created. |
| 1994, March |
Generation.
The Queensland Electricity Commission sold the 1,650
megawatt
coal base-load
power station, Gladstone, to Comalco (an Australian
company) and
Northern States
Power (a U.S. company). |
| 1994 |
The Broken
Hill Proprietary Company (an Australian company) began
construction
of a
105-megawatt gas-fired power station. |
| 1996, August |
AUSTA
Electric issued proposals to recommission generation
plants (Collinsville and
Callide-A) and
to have an interconnection transmission link with the
state of
New South Wales.
Both projects will be completed between 1998 to 1999. |
| 1997, April |
Australia
Shell began a feasibility study for the construction of a
power station in Callide,
Queensland. |
| 2002 |
The state
plans to construct a 440-megawatt plant. |
| 2003 to 2006 |
The state
plans to build a power plant with generating capacity
between 600 and
1,400 megawatts.
|
| 1997, June |
Queensland
and New South Wales announced their intentions to built
an interconnection
grid link
between the two states, with operations to begin by 2001.
|
| |
South
Australia |
| 1995 |
The
vertically-integrated state-owned utility, the
Electricity Trust of South Australia,
was restructured
and corporatized as ETSA Corporation. |
| 1997, January
|
ETSA
Generation was separated from its parent company and
became an independent
government
business (ETSA Generation was formerly a subsidiary of
ETSA Corporation). |
| 1998 |
The state is
scheduled to participate in the national electricity
market. |
| Date |
Western
Australia |
| 1995, January
|
The
vertically-integrated state-owned utility, the State
Electricity Commission of
Western
Australia, was divided into two independent electricity
and gas corporations,
trading as
Western Power and Alinta Gas. |
| 1995 |
Edison
International (a U.S. company), through its subsidiary
Mission Energy, began
a project to
build an $111-million electric power plant. |
| |
Tasmania
|
| 1995, June |
The
Hydro-electric Commission of Tasmania (HEC) passed
legislation to allow the entry
of new
participants and extended customer choice in the
industry. (The HEC remains a vertically-integrated,
state-owned electricity business with separately
organized
generation,
transmission, and distribution segments.) |
| 1996 |
A feasibility
study that began in 1993 concluded that while it was
technically possible
to construct a
subsea-link between Tasmania and Victoria, the
subsea-link would
not be economic
until the year 2000. |
| 1997, April |
The state
government announced intentions to introduce retail
competition in its
electricity
industry and to sell some of its equity interest in the
electricity industry. |
| |
The Snowy
Mountains Hydro-electric Scheme |
| |
The Scheme
will be corporatized under the national electricity
market reforms and
will sell
electricity on the national grid in competition with
other states. |
| Date
|
Event
|
| 1926 |
The UK
government passes Act establishing the central
government's authority in
electricity
matters through the Central Electricity Board. |
| 1935 |
The UK's
central electricity grid goes into operation. |
| 1947 |
The
electricity industries in England, Wales, and Southern
Scotland are nationalized. |
| 1947 |
The British
Electricity Authority assumes responsibility for
generation and transmission. |
| 1957 |
The Central
Electricity Generating Board (CEGB) is created. |
| 1965 |
Natural gas
is discovered in the North Sea, which (nearly 2 decades
later) provides
electric
utilities with an important alternative fuel. |
| 1973-1974 |
First oil
price shock occurs: the UK moves towards greater reliance
on nuclear power and
domestic coal.
|
| 1978-1979 |
Second oil
price shock occurs further encouraging the UK toward
greater reliance on
domestic fuels.
|
| 1979 |
The
Conservative Party assumes national power under the
leadership of Margaret Thatcher
resulting in the
implementation of radical economic reforms. |
| 1983 |
Energy Act of
1983 is passed, opening the central electricity grid up
to independent
power producers.
|
| 1984-1985 |
Year-long
miners strike ensues, calling into question reliance on
domestic coal as the
predominant
electricity fuel. |
| 1986 |
The Gas Act
of 1986 is passed, deregulating the natural gas market
and privatizing British Gas. |
| 1988 |
A Fossil Fuel
Levy is introduced in order to subsidize nuclear power
and nonrenewable
fuel industries.
|
| 1989, July |
The
Electricity Act of 1989 is passed, inaugurating a
sweeping deregulation and privatization
of UK
electricity. |
| 1989 |
The UK
government postpones nuclear power's privatization
indefinitely due to concerns
over potential
auction problems stemming from upward estimations of the
financial costs
associated with
spent fuel disposal and decommissioning. |
| 1990, April |
Vesting Day
inaugurates the initial implementation of the Electricity
Act of 1989. |
| 1990, April |
The Office of
Energy Regulation (OFFER) assumes the responsibility of
industry regulator. |
| 1990, April |
The >1
megawatt electricity marketing market is deregulated,
allowing large industrial
consumers to
purchase electricity directly and at unregulated prices.
|
| 1990, April |
New coal
contracts take effect (with an expiration date of March
1993). |
| 1990, April |
OFFER employs
price caps to regulate distribution, transmission, and
the still-regulated
(tariff)
marketing services. |
| 1990, April |
A new
electricity industry comes into being. The new industry
includes two thermal power
producers
(National Power and PowerGen), a nation-wide transmission
company
(the National
Grid Company), and twelve regional electricity
distribution companies (RECs). |
| 1990,
December |
The RECs are
auctioned off. |
| 1991, March |
Sixty percent
of the shares in the two newly-created power generation
companies are
auctioned off.
|
| 1991, July |
OFFER
introduces service standards for tariff customers.
|
| 1991,
December |
OFFER
releases pool price inquiry report. |
| 1992, October
|
Crisis ensues
over coal contract negotiations. |
| 1993, March |
3-year coal
contracts officially expire. |
| 1993, March |
The UK
government releases white paper presenting official
government proposal on
future 3-year
coal contract. |
| 1993, April |
OFFER places
new price caps on National Grid Company. |
| 1993, July |
OFFER
releases report criticizing pool competitiveness. |
| 1993,
November |
Coal contract
agreement reached (for the April 1994 through April 1998
period). |
| 1993,
December |
OFFER reaches
agreement with National Power and PowerGen to sell off a
total of
6000 megawatts
of capacity in order to create more competition in
electricity generation. |
| 1994,
February |
OFFER
establishes electricity pool price ceiling because of
concerns that electricity
suppliers were
exercising undue market control. |
| 1994, April |
The >100
megawatt electricity marketing market is deregulated.
|
| 1994, August |
OFFER
proposes new price caps on RECs. |
| 1994,
December |
Trafalgar
attempts to purchase the REC, Northern Electric,
resulting in a general
reappraisal of
REC asset values and, in turn, an unscheduled regulatory
review by the OFFER. |
| 1995 |
British Coal
is privatized. |
| 1995, March |
OFFER
announces a reexamination of REC prices. |
| 1995, March |
The UK
government's "golden share" in the RECs
expires. This "golden share" had
previously
limited individual ownership to no more than fifteen
percent of any particular REC. |
| 1995, March |
The UK
government's remaining shares in National Power and
PowerGen are auctioned off,
although the
government retained its "golden share" in the
two generation companies. |
| 1995, April |
OFFER raises
electricity service standards for tariff customers for
the third time. |
| 1995, July |
Scottish
Power places bid for the REC, Manweb (which would
eventually become successful). |
| 1995, July |
U.S.-based
Southern Company bids for the REC, South Western
Electricity
(which would
eventually become successful). |
| 1995, July |
North West
Water places a bid for the REC, NORWEB (which would
eventually become
successful).
|
| 1995, August |
Trafalgar
withdraws bid for Northern Electric. |
| 1995,
September |
Hanson bids
for the REC, the Eastern Group (which would eventually
become successful). |
| 1995,
September |
PowerGen bids
for the REC, Midlands Electricity (which eventually is
rejected by
the UK
government). |
| 1995, October
|
National
Power bids for the REC, Southern Electric (which
eventually is rejected by
the UK
government). |
| 1995, October
|
U.S.-based
Central and South West Corp bids for the REC, SEEBOARD
(which would
eventually
become successful). |
| 1995, Autumn |
PowerGen
sells 2000 megawatts of generation capacity to Hanson in
compliance with
the December
1993 agreement with the OFFER. |
| 1995,
December |
Welsh Water
bids for the REC, SWALEC (which would eventually become
successful). |
| 1995,
December |
REC sell
shares in the National Grid Company (NGC) and NGC's
shares trade on
London Stock
Exchange. |
| 1995,
December |
The UK
government consolidates eight of the countries' advanced
nuclear plants to
form the company
British Energy. |
| 1996, January
|
NGC sells
pumped storage units to Mission Energy of the United
States. |
| 1996, April |
National
Power sells 4000 megawatts of generation capacity to
Hanson in compliance
with the OFFER
proposal. |
| 1996, April |
U.S.-based
Southern Company makes a bid for National Power (which is
eventually rejected
by the UK
government). |
| 1996, April |
The UK Trade
and Industry Secretary thwarts REC takeover attempts by
National Power,
PowerGen, and
the Southern Company. |
| 1996 April |
The UK
creates the government-owned entity, British Electric,
retaining public ownership of
the nation's
older style nuclear reactors. |
| 1996, May |
U.S.-based
General Public Utilities and Cinergy bid for Midlands
Electricity (which would
eventually
become successful). |
| 1996, July |
British
Energy (which assumed ownership of the country's advanced
nuclear reactors)
is privatized.
|
| 1996, October
|
U.S.-based
CalEnergy bids for the REC, Northern Electric (which
would eventually
become
successful). |
| 1996,
November |
U.S.-based
Dominion Resources bids for the REC, London Electricity
(which would
eventually
become successful). |
| 1997,
February |
U.S.-Based
American Electric Power and Public Service of Colorado
bid for the REC,
Yorkshire
Electricity (which would eventually become successful).
|
| 1997, May |
Energy Group
purchases the U.S. electric power marketing company,
Citizens Power. |
| 1997, June |
U.S.-based
Pacificorp places a bid for the REC, Energy Group (the
success of which had
not been
determined by publication date of this report). |
| 1998, March |
Expiration
date for the March 1994-March 1988 coal contract. |
| 1998, April |
All of the
electricity marketing segment is deregulated,
implementing the final stage in the
deregulation of
the UK electric marketing segment. |
| 1998 |
The nuclear
levy is scheduled to be completely phased out. |
This appendix is designed to aid the reader in following
important electricity developments through time as they have
occurred in Argentina, Australia, and the United Kingdom over the
last century. These developments are discussed more fully (and in
context) in Chapters 2 , 3 , and 4 . Table B1 provides milestones
for the United Kingdom. Tables B2 and B3 provide milestones for
Australia and Argentina, respectively.