LAW NO. 20,928 ESTABLISHES MECHANISMS OF EQUITY IN ELECTRICITY TARIFFS Having present that the National Congress has given its approval to the following Bill: " Single article.-Enter into the decree with the force of law No. 4/20.018, of the Ministry of Economy, Development and Reconstruction, enacted in 2006 and published in 2007, which fixes the recast, coordinated and systematized text of the decree with force of law No. 1, of Mining, 1982, General Law of Services Electrical energy, in electrical energy, the following modifications: 1) Add, in the fourth indent of Article 131, the following final sentence: " Within these expenses shall be understood, among others, those which have as their object the financing of management activities, such as lease of premises, expenses of notary or other, and activities which are intended to convoke potential participants, in or outside the national territory, in which representatives of the public or private sector may participate. " 2) Incorporation, in the second subparagraph of the Article 132, the following final sentence: " The bases may also regulate the destination that is It will give to the resources obtained by the sale of these same ones, which in any case must be limited to the realization of activities directly linked with administrative, management, diffusion or publicity aspects of the legal processes, in the (3) Amend Article 157 as follows: a) Intercalanse the following third, fourth, fifth, sixth and seventh, new points, passing the current third indent to be eighth, and so on: " Additionally, in those communes intensive in electrical generation located in the systems Electrical equipment with installed capacity of more than 200 megawatts, a discount will be applied to the power component of the knot price established at the point of connection with the distribution facilities that the distribution concessionaires pass through to supplies subject to price regulation. This discount shall be made after the mechanism referred to in Article 191 has been applied and shall be calculated on the basis of the intensity factor of each commune, according to the following scale:. The intensity factor for each commune shall be calculated by the Commission on the basis of the data it obtains for such purposes, and shall be reported to the Ministry on the occasion of the semi-annual price fixing referred to in Article 158. The discounts indicated will be absorbed by the supplies submitted to the price regulation of the non-intensive communes, through a charge in the energy component of the price of knot established at the point of connection with the distribution facilities. Together with the above, in those communes in which they are central, whose electrical energy generated, as a whole, is greater than 5% of the electrical energy generated by the power stations interconnected to the systems of installed capacity superior to 200 megawatts, an additional discount will be applied to the one set out in the previous paragraph. The additional discounts to which the application of this paragraph will be applied will be absorbed by all the supplies of customers subjected to the price regulation of the non-intensive communes. The discount will be applied in the same way as indicated in the previous points and according to the following table:. For these purposes, it shall be considered as electrical energy generated by a power plant, the energy which it has injected into the system during the 12 continuous months preceding the month in which the price fixing process starts refers to the fourth indent. It shall be the duty of each CDEC to inform the Commission of the amount of electricity generated per generator, for the purposes of the technical report referred to in Article 158. Without prejudice to the foregoing, if a certain commune favoured by the said discount is to contribute less than 5% on the energy generated, the commune shall receive a discount equivalent to 7,5% until the following half-yearly fixing, in the same terms as in the previous points. For the case of hydraulic power plants producing electric power, whose main installations, such as the bocatoma, the machine room, the dam and the reservoir, are located in the territory of more than one commune, the methodology indicated in the third to the sixth above, it shall apply to all the communes where the plant is located, according to the intensity factor of those communes and to their percentage of contribution to the generated energy. The above shall also apply to the case of the plants defined in Article 225 (ab) which are located in the territory of more than one commune. For the purposes of determining the location of the power plants, the Commission may require other services or authorities to record the location of the power plants. " (b) Reposition in the current third subparagraph, which has become eighth, the "previous paragraph" means the following: "this Article". (c) Add the following final point: "For the purpose of applying this Article, distribution concessionaires shall provide all the information required by the CDEC and the Commission." 4) 184, the following final point: " Without prejudice to the above points, in connection with the process of fixing the distribution supply tariffs, they may consider some of the services referred to in point 4 of the Article 147, which have previously been the subject of price fixing, within the aggregate value of (5) Add, in Article 191, the following second and third points: " Without prejudice to the foregoing, in all electrical systems with an installed capacity of more than 1,500 kilowatts, the maximum rates for undertakings Distributors may not exceed the simple average of these, calculated on the basis of a standard consumption, increased by 10% of the same, taking into account a representative sample. Where such tariffs exceed this percentage, an adjustment shall be applied to the component referred to in Article 182 (3). If, in spite of this, it is not possible to achieve the above mentioned percentage, the maximum discount will be applied without additional adjustments. The differences will be progressively absorbed by all other supplies subject to price regulation that are below the average indicated, with the exception of those residential users whose average monthly energy consumption of the year the previous calendar is less than or equal to 200 kWh, so that the initial total collection is not varied. Without prejudice to the above, the rates for residential users who are to absorb the differences identified may not be higher than the simple average of these. However, the absorption of the differences previously mentioned by residential customers whose average monthly energy consumption of the previous calendar year has been greater than 200 kWh and less than or equal to 240 kWh, will be proportional to the for consumption of more than 240 kWh in accordance with the following: 20% for the range greater than 200 kWh and less than or equal to 210 kWh, 40% for the range greater than 210 kWh and less than or equal to 220 kWh, 60% for the range greater than 220 kWh and less or equal to 230 kWh and 80% for the range greater than 230 kWh and less than or equal to 240 kWh. The adjustments and surcharges to which the mechanism indicated will be set out in the decree issued by the Ministry of Energy on the occasion of the semi-annual price fixing referred to in Article 158, subject to the technical report of the Commission. In turn, transfers between companies distributing to the origin of the differences in invoicing resulting from the application of the aforementioned mechanism will be calculated by the respective CDECs in a coordinated manner. The mechanism for the reliquidation of the differences in turnover between concessionary distribution companies will be established by the Commission by means of a resolution. For these purposes, distribution concessionaires must provide all the information required by the CDEC and the Commission. The submission of erroneous, incomplete or elaborate information from a non-reliable background shall give rise to the penalties laid down in Title IV of Law No 18.410, which creates the Superintendence of Electricity and Fuels. " 6) in Article 225, following point (ac), the following points (ad) and (ae): " ad) Factor of intensity: defined as the ratio of the generation capacity installed in each commune, expressed in kilowatts, and its number of customers subject to price regulation. (ae) Intense in Generation: commune whose Factor of Intensity is equal to or greater than 2,5 kW/N ° Customers Regulated. ". PROVISIONS TRANSITORY Article 1.-For the purposes of the first implementation of the measures contained in the numeral 3) of the The only article of this law, the Minister of Energy must dictate under the formula "by order of the President of the Republic" an average price decree of knot. Likewise, the first implementation of the measure referred to in the numeral 5) of the single article of this law may be included in the decree of the price of knot mentioned in the previous paragraph or in the following decree of price of knot half-yearly. Article 2.-For the application of this law, the Commission, in the Technical Report setting out the tariff formulae for the distribution public service concessionaires, shall determine the tariff options corresponding to the residential Aryans However, for these purposes, as long as the supreme decree N ° 1T of the Ministry of Energy is in force, enacted in 2012 and published in 2013, it fixes tariff formulas applicable to supplies subject to prices. (a) to be considered as residential users to those customers who are within the BT1 tariff option, which are indicated by the distribution concessionaires indicated. For the purposes of the application of the mechanism referred to in Article 191 of the General Law of Electrical Services, the factors for the allocation of sectorized costs contained in the aforementioned supreme decree N ° 1T shall be equal to 1 for the tariffs for residential users. Article 3.-Increase, adjusting the total number of respective charges, the following allocations for the year 2015: a. Ministry of Energy, in a quota. b. National Energy Commission, in four quotas. c. Superintendence of Electricity and Fuels, in three quotas. Article 4.-The greatest expenditure that the application of this law represents during the first financial year of entry into force will be financed from the budget of the Ministry of Energy and, in what will be lacking, the Ministry of Finance will be able to To supplement it from the budget line of the Treasury. Article 5.-For the purposes of the application of this law, the resources obtained in accordance with the second paragraph of Article 132 of the General Law on Electrical Services, which are intended for the activities mentioned in the Article 131 (4) of the same law also includes those obtained during legal proceedings prior to the entry into force of this law. Article 6.-The provisions of Article 4 (4) of the Single Article shall apply to the process of determining distribution rates for the period 2016-2019 as well as to the process of pricing of non-consistent services. in energy supplies, associated with the distribution of electrical energy, in so far as it is relevant. '; And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, June 15, 2016.-MICHELLE BACHELET, President of the Republic.-Maximo Pacheco Matte, Minister of Energy.-Rodrigo Valdes Pulido, Minister of Finance. What I transcribe to you for your knowledge.-Saluda Atté. to Ud., Hernan Moya Bruzzone, Chief Legal Division, Undersecretary of Energy.