LAW NO. 20,257 INTRODUCES AMENDMENTS TO THE GENERAL LAW OF ELECTRICAL SERVICES REGARDING THE GENERATION OF ELECTRIC POWER WITH SOURCES OF NON-CONVENTIONAL RENEWABLE ENERGIES Having present that the National Congress has given its approval to the Bill: " Single article.-Enter into the decree with force of law No. 4, 2007, of the Ministry of Economy, Development and Reconstruction, which fixes the recast, coordinated and systematized text of the decree with force of law No. 1, 1982, of the Ministry of Mining, which contains the General Law on Electrical Services, (1) Intercalase in the first paragraph of Article 79 °, between the "generation" and "connected" expressions, the following sentences: " non-conventional renewable and efficient cogeneration facilities, defined in the Article 225 (aa) and (ac) of this law, which are ", and replace the sentences", the source of which is unconventional, such as geothermal, wind, solar, biomass, tidal wave, small hydroelectric power plants, cogeneration and other (a) the Commission has decided to do so in accordance with Article 85 (a). 2. following Article 150 °, the following Article 150 ° bis: " Article 150 ° bis.-Each electrical undertaking carrying out energy withdrawals from electrical systems with an installed capacity exceeding 200 megawatts to be placed on the market with distributors or with end customers, whether or not they are subject to price regulation, you must accredit to the respective CDEC Peages Directorate, that an amount of energy equivalent to 10% of your withdrawals in each calendar year has been injected into any such system, by means of non-conventional renewable generation, own or contracted. The electrical undertaking may also demonstrate compliance with the obligation referred to in the first subparagraph, by means of non-conventional renewable energy injections made to the electrical systems during the immediately preceding calendar year, to the extent that such injections have not been credited for the fulfilment of the obligation which it was required for that year. Any electrical undertaking exceeding the percentage referred to in the first subparagraph of non-conventional renewable energy injections within the year in which the obligation is to be met, with own or contracted energy and even if it has not been carried out Withdrawals may result in the transfer of their surplus to another electricity company, which may even be carried out between companies of different electrical systems. An authorized copy of the respective agreement shall be delivered to the respective CDEC Peages Directorate for the purposes of the corresponding surplus in the corresponding accreditation. The electrical undertaking which does not credit the fulfilment of the obligation referred to in this Article at 1 March following the corresponding calendar year, shall pay a charge, the amount of which shall be 0,4 UTM for each megawatt/hour of deficit in respect of the of their obligation. If within the following three years again incurred in breach of its obligation, the charge shall be 0,6 UTM for each megawatt/hour of deficit. Without prejudice to the foregoing, any loss-making power undertaking may, with a limit of 50%, defer the accreditation of the obligation corresponding to it at the end of a calendar year for up to one year, provided that it has communicated it to the Superintendence before 1 March following the calendar year referred to. The CDEC Peages Directorates of the electrical systems larger than 200 megawatts shall coordinate and carry a single public record of the non-conventional renewable energy obligations, injections and transfers of each electrical undertaking, as well as all the necessary information to enable the fulfilment of the obligations and the application of the provisions contained in this Article. The charges referred to in the fourth indent shall be assigned to the final customers and to the customers of the distributors whose supplies have fulfilled the obligation laid down in the first subparagraph of this Article. The amounts of money collected on these charges shall be distributed in proportion to the energy consumed by the customers indicated in the preceding paragraph during the calendar year in which the obligation of the first subparagraph was breached. The Directorate of Peages of the respective CDEC will calculate and arrange both the payment of the charges that each company will have to pay in order to be used for the customers referred to on the basis of the amounts collected from the companies that have not fulfilled the obligations, as well as transfers of money to be made between them. The Superintendence will have to require the Peajes Directorate and the companies concerned to obtain the information necessary to monitor compliance with the obligations imposed on them in this article. Any dispute arising in the application of the preceding paragraph with the respective CDEC Peages Directorate promoted by the electrical undertakings subject to the obligation laid down in the first subparagraph or by the final distributors and customers shall be the panel of experts, which should opt for one of the proposed values for the one who promotes the discrepancy or for that address, understanding that this is formalized in the presentations that they will have to make to the panel, in on closed, within 15 days of the calculation carried out by the Directorate of Tolls. In order to deliver the opinion concerned, the Panel shall be subject to the procedure applicable to the discrepancies provided for in Article 208 (11). For the purposes of the accreditation of the obligation referred to in the first subparagraph only, injections of hydroelectric power plants with a maximum power equal to or less than 40,000 kilowatts shall also be recognised. by a proportional factor equal to one minus the cost of the excess over 20,000 kilowatts of the maximum power of the plant and 20,000 kilowatts, which is expressed in the following formula: FP = 1-((PM-20,000 kw)/20,000 kw) Where FP is the factor The above and the PM is the maximum power of the respective hydroelectric power plant, expressed in kilowatts. ' (3) The fifth indent of Article 157 (3) shall apply. 4. In Article 225 (z), the following points (aa), (ab) and (ac): " aa) Non-conventional renewable means of generation: those with any of the following characteristics: 1) Those whose source of renewable energy primary energy is the energy of the biomass, corresponding to that obtained from organic and biodegradable matter, which can be used directly as fuel or converted into other liquid, solid or gaseous biofuels. The biodegradable fraction of solid household and non-household waste shall be understood. (2) Those whose primary energy source is the hydraulic energy and the maximum power of which is less than 20,000 kilowatts. 3) Those whose primary energy source is the geothermal energy, understood by such that it is obtained from the natural heat of the interior of the earth. 4) Those whose primary energy source is solar energy, obtained from solar radiation. 5) Those whose primary energy source is wind energy, corresponding to the kinetic energy of the wind. 6. Those whose primary energy source is the energy of the seas, corresponding to all forms of mechanical energy produced by the movement of the tides, waves and currents, as well as that obtained from the thermal gradient of the seas. (7) Other means of generation established by the Commission, which use renewable energies for electricity generation, will help to diversify energy supply sources in electrical systems and cause a low level of electricity. environmental impact, in accordance with the procedures laid down in the Regulation. (ab) Non-conventional renewable energy: that electricity generated by non-conventional renewable means of generation. (ac) Installation of efficient cogeneration: installation in which electric power and heat are generated in a single high energy efficiency process, the maximum power supplied to the system is less than 20,000 kilowatts and which meets the requirements laid down in the Regulation. '; TRANSITIONAL PROVISIONS Article 1 Transitional.-The obligation contemplated |! |in article 150 ° bis that this law incorporates into Law |! | General of Electrical Services, will govern to count from 1 |! |January of the year 2010, and will apply to all retreats |! |power to market it with distributors or with |! |end customers whose contracts are subscribed from |! |of August 31, 2007, be new contracts, |! |renewals, extensions or other conventions of |! |similar nature. Compliance with the above mentioned obligation must be |! |made with renewable means of generation not |! |conventional or with those mentioned in the final paragraph |! |of the article 150 ° bis that introduces this law, own or |! interconnected to |! |electrical systems after 1 January 2007. The |! |non-conventional renewable generation means, which |! |are interconnected to the electrical systems |! |prior to the date stated in the above mentioned paragraph |! |, may also be fulfilled. installed capacity of generation |! |after that date and retain its condition |! |of non-conventional renewable generation medium once |! |executed the extension. For the purposes of the |! |accreditation of the indicated obligation, the injections |! |coming from the means of generation referred to in |! |this paragraph, will be corrected by a proportional factor |! |equal to the cuociente between the added power with |! |later January 1, 2007 and power |! |maximum of the generation medium after enlargement. However, the obligation referred to in the first subparagraph shall be 5% for the years 2010 to 2014, increasing by 0,5% per year from 2015. This progressive increase will be applied in such a way that the withdrawals affected by the obligation to the year 2015 will have to comply with 5.5%, those of the year 2016 with 6% and so on until the year 2024 the 10%, for the contracts concluded with after 31 August 2007 and before 1 July 2013. For contracts signed after 1 July 2013, the obligation referred to shall be 5% for 2013, with increases of 1% from 2014 to 12% for the year 2020, and increases of 1,5% from the year 2021 until the end of 2013. 18% the year 2024, and an increase of 2% to the year 2025 to reach 20% by the year 2025. The tendering mechanism shall apply for the year 2015. If the regulation is not in force for that period, the invitation to tender shall start to run from the following year and so on. For the period in which the tendering mechanism has not started to apply, the obligation shall be fully enforceable for the power undertakings which carry out withdrawals. The progressive increase provided in the paragraph |! |above, will not be required in respect of the withdrawals of |! |energy associated with the supply of companies |! |concessionaires of public service of distribution |! |electric, to satisfy consumption of customers |! |regulated, that would have initiated the process of |! |tender that provides article 131 ° of the Law |! | General of Electrical Services, prior to the |! |publication of this law. Article 2-Transitional.-The National Energy Commission shall, by means of a resolution exempt, establish the technical provisions necessary for the proper implementation of the rules introduced by this law into the General Law of Electrical services and for the application of the preceding transitional provision. Article 3 Transitional.-The obligation referred to in Article 150 ° bis that this law incorporates to the General Law of Electrical Services, will govern for 25 years to count from January 1 of the year 2010. Article 4 (a) transitional period.-Electrical undertakings must prove to the Directorate of Peages of the respective CDEC that at least 50% of the progressive increase of 0,5% per year of the obligation referred to in the fourth indent of the First transitional article, it has been met with energy injections of own or contracted means, chosen through a competitive process, transparent and that does not involve arbitrary discrimination. " And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, March 20, 2008.-MICHELLE BACHELET, President of the Republic.-Hugo Lavados Montes, Minister of Economy, Development and Reconstruction.-Marcelo Tokman Ramos, Minister President, National Energy Commission.-Santiago González Larrain, Minister of Mining. What I transcribe to you for your knowledge.-Salutes intently to Ud., Jean Jacques Duhart Saurel, Undersecretary of Economics.