Regulatory response to COVID-19 in the Ibero-American electricity sector: Policy implications and critical analysis of support measures

Abstract

The confinement measures implemented to curb the spread of COVID-19 caused massive job destruction and increased residential electricity consumption due to the increased time people spent in their homes, putting millions of people around the world at risk of energy poverty at a time when they depended on it for telecommuting, distance learning, recreation, and communication. Governments reacted quickly and introduced various emergency measures to secure the power supply. This article reviews and classifies the emergency measures implemented in the electricity sector in 22 Ibero-American countries, identifying the validity of the measures, the benefits provided, and the requirements to apply. The paper focuses on economic support measures for residential customers. The main measures include the prohibition of disconnection of electricity service, deferment of payment of the electricity bill, installment payments of the electricity debt, and reduction of the electricity tariff. However, measures aimed at commercial and industrial customers and companies participating in the electricity supply chain are also reviewed. We argue that these measures, applicable not only during health crises but also during any event that confines the population for an extended period, should be targeted at the most vulnerable population to reduce fiscal expenditure and increase social impact.