Chile: New Bill Seeks Greater State Role in Energy Bidding Process

By: PanAm Post Staff - Aug 21, 2014, 8:52 am

EspañolSeeking to overcome the major energy challenges Chile, Minister of Energy Máximo Pacheco and the National Energy Commission (CNE), presented a bill to Congress on Tuesday to reform the country’s power auction system.

Minister of Energy Máximo Pacheco introduces electricity reform bill.
Minister of Energy Máximo Pacheco introduces electricity reform bill. (Wikimedia)

The legislation proposes a greater state role in administering power auctions, coordinating and managing the bidding process at every step.

The bill includes a more flexible scheme to determine short and long-term action blocks, as well as risk control instruments for providers. It also calls for a new criteria for defining price limits and new mechanisms for regulating non-contract electricity supplies.

“The government adopts a new role in this process in order to convert the power auction system into a public policy instrument that achieves the goal of having more secure, efficient, cheap, and sustainable electricity and that operates with greater competition,” explained Pacheco.

“This bill is an important step toward executing the energy agenda,” the minister added. “It goes to the heart of the power sector and seeks to prevent current market conditions from continuing to condemn households and small and medium enterprises to high electricity prices in the coming years.”

Meanwhile, CNE Executive Secretary Andrés Romero, said regarding the bill: “It has been put together in conjunction with various areas related to the sector, through a serious, rigorous, open, and participatory process. Each element of the bill has been deeply studied and discussed with all stakeholders in the sector.”

Source: Economía Terra.