LAW NO. 21,185 CREATES A TRANSITIONAL MECHANISM FOR THE STABILIZATION OF ELECTRICITY PRICES FOR CUSTOMERS SUBJECT TO TARIFF REGULATION. 1.-Establishment of a mechanism for the stabilization of electricity prices for end users subject to the regulation of prices provided by public service distribution companies regulated by the decree with force of Law No 4/20018 of the Ministry of Economy, Development and Reconstruction, which fixes consolidated, coordinated and systematised text of the General Law on Electrical Services, in the field of electrical energy, and other applicable sectoral rules, which shall be subject to the following rules: 1. In the period from 1 July to 1 July 2019 and 31 December 2020, the prices that distribution public service concessionaires will be able to transfer to their regulated customers will correspond to the price levels contained in the Ministry of Energy's 2018 decree 20T, and will be called the Regulated Customer Stabilized Price, hereinafter "PEC". 2. In the period from 1 January 2021 until the end of the stabilisation mechanism, the prices which the distribution public service concessionaires may transfer to their regulated customers shall be those defined in the six-monthly fixations referred to in Article 158 of the decree with force of law N ° 4/20018, 2006, of the Ministry of Economy, Development and Reconstruction, which establishes consolidated, coordinated and systematized text of the General Law of Services Electric, which in any case may not be higher than the PEC adjusted according to the Price Index the Consumer as of January 1, 2021 based on the same date, hereinafter "adjusted PEC". 3. From the publication of this law and until the end of the stabilization mechanism, in the decrees of average prices of knot that are dictated in accordance with the provisions of the article 158 already mentioned, the prices that the concessionaires The public distribution service will pay its suppliers to consider the application of an adjustment factor to ensure that the billing of these is consistent with the expected collection due to the adjusted PEC or PEC corresponding distributor. According to the above, in case the calculation of average knot prices would have resulted in higher prices to the adjusted PEC or PEC, as appropriate, the prices will be adjusted downwards. Otherwise, the prices will be increased, in order to cover the uncollected balances. However, in respect of each contract, the adjustment shall be applied to cover the balance not raised in accordance with the following number 4. 4. In the report referred to in Article 158, the National Energy Commission shall calculate, for each contract, the differences in billing that occur between the price established in the respective semi-annual decree, in accordance with the (a) the price which would have been applied in accordance with the conditions of the relevant contract. This balance must be incorporated in the respective semi-annual tariff decrees, detailing the uncollected balances of each contract in its dollar equivalent of the United States of America. As of July 2023 or until an uncollected balance of $1.35 billion is accumulated, the uncollected balances cannot be increased, for which the National Energy Commission will have to determine the adjustments to the necessary adjusted PEC. 5. Balances not collected in accordance with the previous number 4 shall not be of interest. Exceptionally, balances not raised as of 1 January 2026 shall bear an interest equal to Libor of six months, or the equivalent fee to replace it, plus a spread corresponding to the country risk to the date of application. Only contracts that start supply before 2021 will be considered for the mechanism. The decrees referred to in this Article shall remain in force until the decree corresponding to the following period is published in the Official Journal, in accordance with the permanent rules referred to in Article 158. Article 2 °.-The National Energy Commission by exempt resolution shall establish the necessary rules for the implementation of the stabilization mechanism referred to in the previous article, which shall comply with the following rules: principles: a. That the distribution companies transfer the prices indicated in each of the contracts in full to their suppliers according to the temporality established by the present law, without any cost or additional income to the revenue from the aggregate distribution value (VAD). b. That the adjustments that are being made are paid or charged to the generators in such a way that it does not mean arbitrary discrimination. c. That the credits are made in proportion to the uncollected balances. d. For those generating companies whose contract is terminated, the corresponding payments are included for the total extinction of their uncollected balance. e. The small means of generation distributed as referred to in the second indent of article 72º-2 of the decree with force of law No 4/20018, shall not be affected by the provisions of this law. Article 3.-Customers subject to price regulation which choose to switch to the free price regime, from the time this law is in force until the end of the stabilisation mechanism, will have to participate in this stabilisation mechanism. on a level playing field with the rest of the regulated customers, through a specific component that will be added to the distribution toll as determined by the National Energy Commission. Article 4 °.-The price stabilization mechanism shall be extended until the balances arising out of application of the same are extinged, which in no case may be extended beyond 31 December 2027. If during the period between 2025 and 2027, the National Energy Commission projected that the uncollected balances will not be completely extinguished, the National Energy Commission will determine the adjustments to the adjusted PEC necessary to extinguish the fully balances before December 31, 2027. Article 5 °.-Derogase the decree 7T, of 2019, of the Ministry of Energy, extending the validity of the decree 20T, of 2018 of the Ministry of Energy, from its original maturity until the publication of the decree of price of the average knot that (a) to be issued after the entry into force of the law. Article 6 °.-The National Energy Commission shall inform the Mining and Energy Commissions of the Senate and the Chamber of Deputies of the amount of uncollected balances generated under this law. " And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, October 30, 2019.-SEBASTIAN PINERA ECHENIQUE, President of the Republic.-Juan Carlos Jobet Eluchans, Minister of Energy. What I transcribe to you for your knowledge.-Salutes intently to Ud., Francisco López Díaz, Undersecretary of Energy.