[1] The constitution of 1991 gave the private initiative a major role in providing public utilities and allowed the government to regulate the sector.
The regime created three regulatory commissions (for electricity, telecommunications, and water and sanitation) and an organization for the promotion, supervision, and control of competition called the Residential Public Services Superintendency (SSPD).
[1] As a result of the reforms, which naturally generated resistance in certain sectors of society, particularly among union workers, the provision of all services has improved significantly.
It also has meant that consumption has fallen as a result of the higher prices, delaying the need for further investments in order to increase installed capacities of different services.
CREG has regulated natural monopoly stages, such as transmission and distribution, through price caps, while competition has played an increasing role in generation and commercialization.
Interconnection with Andean and Central American countries is being considered as a means of improving competition and providing better protection against future rationing in the region.
This reduced consumption in response to higher prices has generated efficiency gains by lowering expansion requirements and variable costs.