Regulation of the Electricity Industry in Bolivia: Its Impact on Access to the Poor, Prices and Quality



group, the agreed performance guidelines seem to have produced a moral hazard kind-of-
situation, where the worst type of behaviour emerged in all companies due to the aforementioned
lax and over-generous permissible quality parameters.

Figure 3.12

Average Frequency of Interruptions

A Elfeo A Cessa A Sepsa

Source: Superintendency of Electricity

As for the second indicator of quality, total time of interruptions per consumer, it measures the
average time that every consumer is deprived of electricity during a semester. In line with the
first quality indicator, results are presented for the 2 groups of operators already defined.

The first group (Cre, Electropaz and Elfec) has an allowed time limit of 20 hours. This limit was
not surpassed by any of the companies in the 4 semesters analyzed. Figure 3.13 summarizes
results for this second indicator of quality.

22



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