Law No. 20.396, published in the Official Gazette on July 20th,
2016, has created a new electric power transmission system that
regulates interconnection process of the two main power systems of
the country (SING-SIC). This is part of the "Energy
Agenda", which purpose is to determine a clear action plan for
Chile to achieve trustworthy, sustainable, inclusive and reasonably
priced electric power.
This law provides the obligation to submit to the coordination
of the system, including the small producers supplying energy to
third parties. A Coordinator will be appointed in order to achieve
this goal, who will authorize the connection of third parties to
the transmission systems and will substitute the current CDEC. The
Coordinator will determine the available technical capacity of the
systems for these purposes.
Open access to the transmission systems shall be granted.
Denying the service shall be prohibited when technical capacity is
The kind of compensations due to supply unavailability is
regulated to an equivalent of the power supplied in the
corresponding event with a valuation of 15 times the effective
power rate or the market price, according to the type of client. On
the other hand, the compensations per event for each transmission
company is limited to a 5% of the total income obtained in the
previous commercial year, in both cases limited to a maximum amount
of 20.000 UTA (Chilean annual tax unit).
Different electric power transmission systems are created,
namely, the National Transmission System, the Transmission System
for Development centers, the Dedicated Transmission Systems, The
Zonal Transmission Systems and the International Interconnection
System. The latter shall allow the import and export of electric
power, both for public service and private interest, which opens an
interesting market with the neighboring countries. In order to
participate in power transfers the works must have been duly
declared under construction and have an energization authorization
for its commissioning.
The Ministry of Environment will develop a long-term power
planning process for a 30-year time frame. For these purposes, it
shall include various supply and demand scenarios and identify the
areas where power generation development centers may exist. The
Ministry shall elaborate technical reports of every development
On the other hand, the Coordinator shall annually present an
expansion proposal for the different transmission segments. A
technical report shall be issued based on this proposal.
Third-party discrepancies regarding this report can be solved by an
Finally, a transmission expansion order shall be issued. The
process of determining the strips shall be initiated based on this
order. The preliminary strip shall be subject to environmental
assessment and can be encumbered with easements.
To set the rates, valuation studies will be performed to
determine the value of the investment and the annual costs of the
operation, maintenance and management of each section.
The transmission companies may provide as security, for the
financing or performance of a project, the performance or execution
rights of new constructions that belong to the transmission
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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