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Electric Market Regulation

Bill that streamlines electrical concession procedures

Bill that seeks to expedite the process and terms associated with electricical concessions due to the impact they are having in terms of risk and development of power lines. In essence, it simplifies the process of granting provisional concessions, modifies processing terms, specifies comments and objections, modifies the notification process, establishes summary judicial procedures, introduces the possibility of dividing the concession applications, modify the property appraisal procedure and solves conflicts between different types of concessions.

Indication to the Bill that favors the expansion of the energy matrix through ERNC

Substitutive proposal to the bill promoting ERNC. In essence, the share of ERNC is increased from 10% to 20%, ant the target date is moved forward from 2024 to 2020. It establishes ERNC generation’s eligibility for a stabilized energy price. ERNC tenders will be conducted for that purpose and ERNC accreditation certificates will be created, which may be traded between companies, even between different electrical systems.

Draft of Proposed Regulation for Medium Systems

Draft regulation in public consultation stage concerning the operation and management of medium electrical systems. Medium electrical systems are defined as those with installed capacity between 1.5 MW and 200 MW, applicable to Aysén and Magallanes electrical systems. Creates Economic Load Dispatch Centers (CDEC’s) for each system, which currently only exist for major systems (SIC and SING). The Energy Commission (CNE) must issue a Technical Report for medium systems, establishing performance criteria, estimation of firm capacity, variable operating costs, transmission costs and expansion plans.

Amendments to the DFL-4 on the procedure for granting electrical concessions

Bill that aims to expedite electric transmission line concessions. Transmission lines have nowadays a longer development period than power plants, largely due to the processing of the concession, especially when areas with native forests are involved.

Compensation to municipalities for power plant installations

Bill to compensate local communities for the installation of new power plants. It proposes generating companies to pay compensation to the municipalities where new power plants. The compensation is 270 UTM per MW (about UDS 20,000) for power plants larger than 200 MW. The compensations would not generate additional costs to generators, as they are to be deducted from other taxes. The proposal intends to retain a larger share of the profits locally and provide greater certainty to compensations generation companies must incur.

Modification of the geothermal concessions law

Draft law introducing amendments to the Law 19,657 on geothermal concessions in order to encourage the development of geothermal energy. Among others, the amendments seek to accelerate the processing of concessions, and after obtaining it, obligating exploration activities, establishing a fee payment for non-use. It also seeks to protect from overexploiting the resource and to allow extending the operation area to give further incentives.