ESTRATÉGIAS DE REGULAÇÃO E QUALIDADE DOS SERVIÇOS PÚBLICOS

Abstract

The purpose of the text is to place the question of quality within the theoretical framework for study of public utility regulation, referring to the electric sector in Brasil. The question of quality is initially presented in terms of the formal aspects of the relationship between the regulatory body and the firm, followed by a review of the main features of regulation by rate-of-return and regulation by price-cap, and their implications pertaining to service quality. The evidence collected so far, based in experiences outside Brasil, suggests that the theoretical advantages of the price-cap system are very limited in practice, and that such a regulatory strategy may lead to underinvestment in service quality.