Analysis of the effects of regulatory policy on the relative efficiency and profitability of natural gas distribution in Argentina
Keywords:
regulatory policy, efficency, costs, profitability, natural gas, ArgentinaAbstract
The main objective of the present analysis is to identify the impact that the regulatory policy generated on the profitability and efficiency of Argentine gas distribution companies. The study is developed in two methodological approaches: a) determination of the relative efficiency of Argentine companies through Efficiency Frontiers; b) analysis of the regulatory impact (RIA) on the profitability of Argentine companies, measured through a series of financial, accounting and commercial indicators. It is concluded that, for the period analyzed, Argentine companies were relatively more efficient than the rest of the companies in the Latin American region. This greater efficiency occurred both in operating costs (Opex) and total costs (Totex). This efficiency did not translate into higher profitability; on the contrary, it was the fall in profitability margins that forced Argentine companies to become more efficient. The adjustment, in order to maintain margins, led to a reduction in the number of new clients, as well as to a general disinvestment policy in the industry.
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