The New Electric System in Chile

Electric System in Chile

Alejandro Vergara Blanco

January 4, 2017 12:00 AM

Chilean Act No. 20.936, which modifies the General Electric Services Act, was published on July 20, 2016. This act establishes a new system of electric transmission and creates a new independent coordinating agency for the national electric system. In general terms, the main modifications are:

New Coordinating Agency for National Electric System

This agency is a side effect of the interconnection between the two electric systems that exist in Chile. Now, with only one big electric system, a new coordinating agency is required. This agency is a public organ (the previous coordinating agency was operated by the electric companies) with the power to, besides coordinating the electric system, monitor the free competition in the electric market, the complying of the open access regime, and the payment chains between electric companies, among others.

Development Poles

As far as development poles go, there are areas that have a high concentration of renewable generation percentages, which are identified by the Ministry of Energy during the energetic planning procedure.

Energetic Planning and Transmission Expansion

The act promotes the creation of new transmission segments according to their functionality and restrictive technic criteria, creating the (i) National Transmission system (old Troncal system); (ii) Zonal Transmission system (old Subtransmission system); (iii) Dedicated Transmission system (old Additional system); (iv) International Interconnection system, which will facilitate the export and import of energy from or to the national territory; and (v) Development Poles Transmission system, which will facilitate the transport of energy produced by renewable sources located in development areas to the transmission system.

Concerning the energy planning, the act incorporates a new planning procedure that will be open every five years, led by the Ministry of Energy for a 30-year span.

Tracings Definitions

The act incorporates the possibility by the administration to define the tracings of the transmission installations, according to an economic, social, and environmental balance. Before this modification, tracings were defined by the transmission companies.

Open Access

The act extends the open access sphere of application to all transmission levels and brings new powers to the coordinating agency to apply rules, procedures, and stages in order to guarantee the open access.

System Remuneration

The act unifies the different installations qualification procedures, eliminating the speculation in fee procedures. Related to these modifications, the return guarantee of the investors is highly increased.

Legal Development and Regulation

The Energy Regulatory Commission (CNE) is highly powered by this act and is able to dictate technical and economic regulations and oversee the coordinating agency’s acts.

Related Articles

The Best Lawyers in Chile™ 2022

by Best Lawyers

The results include an elite field of top lawyers and firms.

The Best Lawyers in Chile™ 2022

Summer Voting Season Is Here!

by Best Lawyers

Summer 2021 voting is open to all lawyers listed in Best Lawyers in Chile, Colombia, Peru, Brazil, Mexico, Portugal, South Africa and Spain.

How To Vote On Your Best Lawyers Ballot

Announcing the 2021 Best Lawyers in Chile, Colombia, and Puerto Rico

by Best Lawyers

Find the top legal talent in Chile, Colombia, and Puerto Rico.

Best Lawyers in Chile, Colombia, Puerto Rico

Effect of Anti-Suit Injunction in Cross Border Litigation

by Cariola, Díez, Pérez-Cotapos

What is the purpose of an anti-suit injunction, and how can it work with cases in different countries?

Anti-Suit Injunctions in Cross Border Cases

On the Cutting Edge After a Century in Business

by Best Lawyers

Manuel Carvallo of Estudio Carvallo Abogados discusses his firm's 130-year-old history, adapting to the latest technologies, and its 2019 "Law Firm of the Year" award for Insurance Law in Chile.

Estudio Carvallo Law Firm of the Year

Why Cariola Díez Pérez-Cotapos Developed Its Own Legal Tech

by Best Lawyers

Juan Pablo Matus of Cariola Díez Pérez-Cotapos, 2019 "Law Firm of the Year" award for Corporate and M&A Law in Chile, discusses his firm's joint venture with Cognitiva in creating Lexnova, a legal AI system.

Cariola Díez Pérez-Cotapos Interview

Baraona Fischer & Cia on the Changes Coming to Tax Law in Chile

by Best Lawyers

Juan Manuel Baraona of the 2019 "Law Firm of the Year" award-winner for Tax Law in Chile discusses forthcoming regulations, career highlights, and his secrets to success in an interview with Best Lawyers CEO Phillip Greer.

Baraona Fischer & Cia LFOTY

Related-Party Transactions in Chile

by Roberto Guerrero V. and Tomás Kubick

A significant change in law and practice.

Related-Party Transactions

Chilean Water Model: Current Legal Rules and Possible Modifications

by Daniela Rivera Bravo, Gonzalo Muñoz Escudero, and Alejandro Vergara Blanco

Chile has an unequal distribution of water in its territory; the water legislation, however, is the same for the whole country.

Chilean Water Model

Trending Articles

How Palworld Is Testing the Limits of Nintendo’s Legal Power

by Gregory Sirico

Many are calling the new game Palworld “Pokémon GO with guns,” noting the games striking similarities. Experts speculate how Nintendo could take legal action.

Animated figures with guns stand on top of creatures

Announcing the 2023 The Best Lawyers in America Honorees

by Best Lawyers

Only the top 5.3% of all practicing lawyers in the U.S. were selected by their peers for inclusion in the 29th edition of The Best Lawyers in America®.

Gold strings and dots connecting to form US map

The U.S. Best Lawyers Voting Season Is Open

by Best Lawyers

The voting season for the 31st edition of The Best Lawyers in America® and the 5th edition of Best Lawyers: Ones to Watch® in America is officially underway, and we are offering some helpful advice to this year’s voters.

Golden figures of people standing on blue surface connected by white lines

Announcing the 2022 Best Lawyers® in the United States

by Best Lawyers

The results include an elite field of top lawyers listed in the 28th Edition of The Best Lawyers in America® and in the 2nd Edition of Best Lawyers: Ones to Watch in America for 2022.

2022 Best Lawyers Listings for United States

2021 Best Lawyers: The Global Issue

by Best Lawyers

The 2021 Global Issue features top legal talent from the most recent editions of Best Lawyers and Best Lawyers: Ones to Watch worldwide.

2021 Best Lawyers: The Global Issue

How To Find A Pro Bono Lawyer

by Best Lawyers

Best Lawyers dives into the vital role pro bono lawyers play in ensuring access to justice for all and the transformative impact they have on communities.

Hands joined around a table with phone, paper, pen and glasses

What the Courts Say About Recording in the Classroom

by Christina Henagen Peer and Peter Zawadski

Students and parents are increasingly asking to use audio devices to record what's being said in the classroom. But is it legal? A recent ruling offer gives the answer to a question confusing parents and administrators alike.

Is It Legal for Students to Record Teachers?

Best Lawyers: Ones to Watch in America for 2023

by Best Lawyers

The third edition of Best Lawyers: Ones to Watch in America™ highlights the legal talent of lawyers who have been in practice less than 10 years.

Three arrows made of lines and dots on blue background

The Best Lawyers in Australia™ 2024 Launch

by Best Lawyers

Best Lawyers is excited to announce The Best Lawyers in Australia™ for 2023, including the top lawyers and law firms from Australia.

Australian Parliament beside water at sunset

The Upcycle Conundrum

by Karen Kreider Gaunt

Laudable or litigious? What you need to know about potential copyright and trademark infringement when repurposing products.

Repurposed Products and Copyright Infringemen

Inflation Escalation

by Ashley S. Wagner

Inflation and rising costs are at the forefront of everyone’s mind as we enter 2023. The current volatile market makes it more important than ever to understand the rent escalation clauses in current and future commercial lease agreements.

Suited figure in front of rising market and inflated balloon

Wage and Overtime Laws for Truck Drivers

by Greg Mansell

For truck drivers nationwide, underpayment and overtime violations are just the beginning of a long list of problems. Below we explore the wages you are entitled to but may not be receiving.

Truck Driver Wage and Overtime Laws in the US

A Celebration of Excellence: The Best Lawyers in Canada 2024 Awards

by Best Lawyers

As we embark on the 18th edition of The Best Lawyers in Canada™, we are excited to highlight excellence and top legal talent across the country.

Abstract image of red and white Canada flag in triangles

Announcing The Best Lawyers in South Africa™ 2024

by Best Lawyers

Best Lawyers is excited to announce the landmark 15th edition of The Best Lawyers in South Africa™ for 2024, including the exclusive "Law Firm of the Year" awards.

Sky view of South Africa town and waterways

Best Lawyers Voting Is Now Open

by Best Lawyers

Voting has begun in several countries across the globe, including the United States, the United Kingdom and Europe. Below we offer dates, details and answers to voting-related questions to assist with the voting process.

Hands holding smartphone with five stars above phone

Unwrapping Shrinkflation

by Justin Smulison

Through the lens of the United States, we take a closer look at the global implication of companies downsizing products while maintaining and often raising prices.

Chocolate bar being unwrapped from foil