LAW NO. 20.220 PERFECTS THE LEGAL FRAMEWORK IN FORCE IN ORDER TO PROTECT THE SECURITY OF SUPPLY TO REGULATED CUSTOMERS AND THE SUFFICIENCY OF ELECTRICAL SYSTEMS. Bill of Law: " Single article.-Join the decree with force of law No. 4, of the Ministry of Economy, Development and Reconstruction, 2007, which fixes the recast, coordinated and systematized text of the decree with the force of Law No. 1, of the Ministry of Mining, 1982, which contains the General Law on Electrical Services, the following modifications: 1) Intercalase, in the first paragraph of Article 25, between the word "Reconstruction" and the separate point (.) which follows, the phrase ", with copy to the Superintendence so that it exercises its powers according to the following articles", and, in the the second subparagraph of point (d) of its third indent, following the sentence "governed by the Code of Water", the following text: ", the concession may be requested with the drawings of the hydraulic works which have been submitted to the Directorate General of Waters for the authorization referred to, but the interested party must prove to the Superintendence which is in the process and which shall be attached to the approved plan before the issue of the report referred to in Article 29 of this Law. " 2) Amend Article 27º, as follows: (a) In the first paragraph: (1) Intercalase between the word "Municipality" and the disjunctive conjunction "or" that follows, the expression ", notarial certification". a.2) Attaché, following the separate point (.), which happens to be followed (.), the following sentence: " In the notarial certification mentioned above, it must be stated that the plans of the referred easements were brought to knowledge (b) Substitute the third subparagraph by the following: " The persons concerned who have made observations or oppositions in respect of the plans referred to in the first subparagraph shall be notified, for all legal purposes, of the (3) Intercalanse, in the second subparagraph of the Article 133º, between the word "subscribe" and the separate point (.) that follows, the phrases ", such as guarantee ballots granted by the offeror or any other guarantee granted by one or more parent companies of which the consortium is In addition to the institutional risk classification report to be submitted by the offeror, which shall not be longer than 12 months from the date of submission of the tender in the tendering process, among others. 4. The following Articles 146 (a), 146 (b), 146 (b) and 146º (c) are added as follows: " Article 146a.-In all judgments which are initiated in order to terminate an electricity supply contract which has been the Superintendence must be a part of the same, with the aim of contributing all the necessary information, to the general public, and to a concessionaire of public service of distribution to supply regulated customers of the respective system, the Superintendence necessary background to safeguard the conditions of supply to regulated customers In the case of the Court, the Court of Justice has ruled that the notification to the defendant is a matter of the Superintendence. Article 146º.-The bankruptcy of a generating, transmitting or distributing electricity company shall be governed by the following special rules and, as not provided for therein, by those contained in Book IV of the Code of Commerce, entitled " De The Bankruptcy '. Immediately after a request for the bankruptcy of a generating undertaking, a transmitter or a distributor of electrical energy, the Registrar of the Court shall notify the Superintendence and the Commission, within 24 hours the following hours, in accordance with the provisions of Article 55 (2) of Book IV of the Code of Commerce, for the court to rule on it after reporting by the indicated bodies, which shall indicate whether the bankruptcy whether or not the objectives referred to in Article 137th or the sufficiency of an electrical system are committed. If it commits them, the Superintendence will propose to the court the appointment of an interim administrator of those natural or legal persons who are registered in a public register that will maintain the Superintendence for such effect. The Regulation shall lay down the requirements and conditions for integrating the public register referred to in this Article, together with the grounds for exclusion. The court will also be able to request a report from the Superintendence of Bankruptcy, in respect of the matters of its competence. If the objectives referred to in Article 137th or the sufficiency of an electrical system are compromised, the decision declaring the bankruptcy shall order the effective continuation of the turn of the failed, together with the appointment of the administrator. (a) the provisional administrator's remuneration, which may not exceed 50% of the average remuneration received by a general manager of the business of the Member State concerned, shall be calculated on the basis of the same spin, as reported by the Superintendence. As soon as he assumes his position, the interim administrator must lift an inventory of the assets of the company declared bankrupt which will be included in the effective continuation of the turnaround, which will be added to the cars once approved by the company. Superintendence. The foregoing does not preclude the rights that the law grants to the board of creditors and to third parties in the matter of making inventory and determining the goods concerned with the effective continuity of the rotation. Any discrepancy or opposition to the inventory of assets that will be included in the effective continuation of the rotation shall be settled by the judge of the bankruptcy as provided for in Article 5 of Book IV of the Commercial Code. it shall ensure that the goods falling within the effective continuation of the rotation permit the fulfilment of the objectives referred to in Article 1377 and the protection of the sufficiency of the system, for which the Superintendence and the Commission shall send the judge an inventory of the assets deemed to be sufficient for that purpose. Where the effective continuation of the turnaround includes goods consisting of a garment or a mortgage or affections to the statutory right of retention, the right of mortgage creditors, loans and retenants shall be suspended to commence or continue in form (a) separate actions aimed at obtaining the realization of the goods included in the effective continuation of the rotation, affecting the security of their claims. The provisional administrator of the goods included in the effective continuation of the rotation shall have all the powers of the ordinary business of the undertaking concerned, which the law or its statutes indicate to the board and its managers. For its part, the liquidator will have the powers indicated in Article 207 of Book IV of the Code of Commerce, without prejudice to the powers conferred on him by the law as the administrator of the assets of the bankruptcy. included in the effective continuation of the rotation. The provisional administrator shall be subject to the provisions of the final paragraph of Article 116 of Book IV of the Trade Code. The provisional administrator shall be liable for a levisima fault in the exercise of his duties and shall be charged with the incompatibilities and incompatibilities of the syndicates, as appropriate. He shall also cease in his office by a declaration of the court, at the request of any person concerned, when any of the grounds referred to in Article 17 (1) to (4) or Article 24 (1), (2) and (3), both of the Book IV of the Code of Commerce, or when it has ceased to integrate the public register referred to in this article, or by resignation accepted by the court. Any conflict that may arise between the liquidator and the interim administrator shall be resolved by the judge of the bankruptcy incidentally and in a single instance, previously hearing the Superintendence of the Bankruptcy and the Superintendent of Electricity and Fuels. The provisional administration shall be extended for any period necessary for the completion of the disposal referred to in the following points. The assets which have been included in the effective continuation of the turnaround shall be considered as an economic unit, unless the creditors holding more than half the liability of the bankruptcy with the right to vote request the bankruptcy judge to The Court of the Court of the European Court of the European Court of the European Court of the European Court of the European Court of This disposal shall be verified within a period not exceeding 18 months after the judgment declaring the bankruptcy is enforceable. The disposal of assets as an economic unit may be carried out by means of any of the mechanisms referred to in Articles 122 et seq. of Book IV of the Trade Code. The mechanism, as well as the bases or conditions of such disposal as an economic unit, shall be agreed by the board of creditors with the favourable vote of the creditors meeting more than half of the liability of the bankruptcy and, where appropriate, with the favorable vote of the failed one, being able to formulate opposition founded in accordance with the provisions of Title IX of the Book IV of the Code of Commerce. Where the goods are put in place by means of the mechanism provided for in Article 124 et seq. of Book IV of the Trade Code or by public tender, the bases shall be (a) the Superintendence, in conjunction with the Commission, shall include the contents referred to in Article 125 of Book IV of the Trade Code, as well as the contents approved by the board of creditors or by the court, corresponds, in accordance with the provisions of the foregoing paragraph, and may establish special conditions to safeguard the competition between the bidders and the continuity of the respective service. Any discrepancy or opposition in respect of the mechanism to carry out the disposal as an economic unit or in respect of the bases or conditions of such disposal shall be settled by the judge of the bankruptcy as provided for in Article 5 of the Book IV of the Commercial Code, consulting the greatest ease and the best result of the disposal, as well as the continuity of the respective service. Where the economic unit has been agreed to by means of the mechanism laid down in Article 124 of Book IV of the Trade Code or by public tender, and, despite the fact that it has been offered in accordance with the bases, it shall not be presented In this case, the price can be reduced to two-thirds of the price. However, if other changes are made to the bases in this second appeal, this article must be carried out in accordance with this Article. If, on a second occasion, the goods are not concerned, the goods shall continue to be carried out in accordance with the relevant rules of Book IV of the Trade Code. The provisions of this Article shall also apply to cases where the bankruptcy of a generating, transmitting or distributing undertaking occurs without being preceded by an application for bankruptcy, and the judge must, in such a case, request the the report referred to in the second subparagraph, prior to the declaration of bankruptcy. Article 146º.-The withdrawal, modification, disconnection, or cessation of operations without this being due to failures or scheduled maintenance, of units of the generator park and of the facilities of the transmission system, shall be communicated in writing both to the respective CDEC and to the Commission, with the advance notice to be determined by the Regulation, which in any case shall not be less than 24 months in the case of generating units and 12 months for the installations of the transmission system. However, in qualified cases, the Commission may exempt an undertaking from compliance with the time limits laid down in this Article, subject to the safety report of the Directorate of Operation of the CDEC concerned. The violations of this article will be sanctioned as very serious by the Superintendence according to Law No. 18.410. " Transitional provisions Article 1 °.-The provisions of Article 146º bis introduced to the General Law of Electrical Services by the sole article of this law shall apply for those judgments which are initiated to be counted from the date of publication of this law in the Official Journal. Article 2.-In the event that an electricity supply contract between a generating company and a public distribution utility company to supply regulated customers of the respective system ends with a judgment that (a) the undertaking shall continue to supply the energy subject to the contract, on its own terms, for the period of 18 months from the date on which the judgment is enforceable. This obligation may be terminated in advance if the supply under a new contract has been initiated within that period by virtue of the obligation of the distributor, from the date on which the judgment is enforceable, to call for tenders supply in accordance with the provisions of Articles 131 and following of the General Law on Electrical Services. The distributor affected by the termination of its supply contract to supply regulated customers who, by reason of being within the period referred to in Article 131 of the General Law on Electrical Services, has already carried out the call for tender of supply provided for in those Articles shall not make a new call for tender for supply in accordance with the provisions of the preceding subparagraph. After the period of eighteen months provided for in the first indent of this Article without the supply being initiated under the new contract resulting from the tendering process, the supply of the distributor concerned to supply to its customers subject to price regulation will be made and invoiced at the price of the knot for each generator of the respective system, pro rata of their firm energy, considering both the own generation facilities and the contracted ones were connected to the respective system at the time of publication of this law in the Official Journal and remain connected to the end of the eighteen months period referred to above. This obligation shall remain in force until the implementation of the new contract resulting from the tendering procedure is initiated. The cost of serving the supply subject to price regulation of the distributor concerned, in the proportion destined to regulated customers, defined as the difference between the marginal cost hours of energy and the corresponding price of knot in force, multiplied by the energy supplied to satisfy the supply dedicated to regulated customers of the corresponding system, will be financed by the generators that withdraw energy and included as a new cost of the contracts of supply to satisfy the entire consumption of the respective system, without cost is applicable to regulated customers. For this purpose, and for each period in which the invoices of the energy transfers are carried out in the Center of Economic Dispatch of the respective system, the cost before mentioned will be divided by the totality of the energy defendant. This resulting value shall be the additional charge to be charged to each kilowatt-hour withdrawn. From the sum that is collected with the application of the said charge, the Management of Peages of the Center of Economic Dispatch of Cargo will determine the amount to be paid to each generating company in accordance with the provisions of this paragraph. For the purposes set out in this Article and in the following transitional Article 3, the sum of the firm energy of its own power plants and of firm energy blocks, the supply of which by other entities, shall be understood as firm energy. generators operating in sync with the system have been secured by a freely agreed upon contract. In the case of hydroelectric power plants, the firm energy is equal to the annual capacity of energy production under dry hydrology conditions, taking into account the applicable irrigation restrictions. It is understood by dry hydrology, the year of the hydrological statistic defined as the probability of surplus closer to 90%, for the electrical system as a whole. In the case of other plants, the firm energy shall be calculated as the annual capacity of energy production under average availability conditions of the generating units. The average energy availability of these plants is defined, the maximum of the annual energy that, as an average, can be generated by these plants, considering the maintenance and failure periods. For these purposes, the historical background of the Office of the Economic Office for Cargo and, in the case of new units, the estimates it carries out on the basis of own studies and the background shall be used. technicians to present their owner. The provisions of this Article shall apply to supplies to regulated customers of an electrical system, the contracts of which terminate by judgment which causes execution within the period between the date of publication of this law in the Official Journal and 31 December 2010. However, no tendering process which originates under the provisions of this Article may award a supply contract for it to be initiated at a date after 31 December 2011. Article 3.-Declared the bankruptcy of a generating company that maintains existing electricity supply contracts with a distribution company to supply regulated customers of an electrical system, the supply of the distributor concerned to supply its customers subject to price regulation will be made and invoiced at the price of the knot for each generator of the respective system, including the bankrupt company, pro rata of its firm energy, considering both the own generation as the contractors who were connected to the respective system at the time of publication of this law in the Official Journal and remain connected at the time of filing for bankruptcy of the generating undertaking referred to above. Each of the generating undertakings which, in accordance with the provisions of the preceding subparagraph, contributes to the supply of the distribution concerned, in the proportion intended for regulated customers, shall enjoy, by this single contribution, a credit coming from the effective continuation of the spin of the failed. The amount of this appropriation will correspond to the sum, duly updated, of: the differences between the marginal cost of energy and the corresponding price of the current energy knot, multiplied by the energy supplied to satisfy the supply to the regulated customers of the corresponding system, in the proportion corresponding to each generator. The statement of credit shall be calculated for the entire period between the declaration of bankruptcy and the first to occur between the disposal of the assets as an economic unit; the commencement of supply under a new contract resulting from the tendering process referred to in this Article; or the term of the obligation to supply energy to regulated, contractual or legal customers of the failed for with the distributor. The Management of Peages of the Center of Economic Dispatch of the respective Cargo will determine the amount to pay to each generating company, according to the previously established. After the period mentioned in the previous paragraph, without a new supply contract being initiated to the distributor, the cost of serving the supply subject to the price regulation of the distributor concerned, in the proportion intended for regulated customers, defined as the difference between the marginal cost of energy and the corresponding current price, multiplied by the energy supplied to satisfy the supply dedicated to regulated customers of the system, will be financed by generators that withdraw energy and included as a new cost of supply contracts intended to satisfy the entire consumption of the respective system, without such cost being applicable to regulated customers. For this purpose, and for each period in which the invoices of the energy transfers are carried out in the Center of Economic Dispatch of the respective system, the cost before mentioned will be divided by the totality of the energy defendant. This resulting value shall be the additional charge to be charged to each kilowatt-hour withdrawn. From the sum that is collected with the application of the said charge, the Management of Peages of the Center of Economic Dispatch of Cargo will determine the amount to be paid to each generating company in accordance with the provisions of this paragraph. The obligation of the system-generating set of undertakings, consisting in satisfying the supply necessary for the regulated customers in proportion to their firm energy indicated in this Article, shall remain in force until the beginning of the supply under a new contract. For these purposes, from the date of the declaration of bankruptcy of the generating undertaking, the distributor shall be obliged to call for a supply invitation to tender in accordance with the provisions of Articles 131 and following of the General Law on Services Electric. For all the corresponding effects, the supply under the new contract resulting from the aforementioned tendering process shall cease any and all obligations which the distributor, under the contract or the contracts, maintained in force. the power supply to supply regulated customers who have been held with the failed generating company. The distributor who, by reason of being within the period referred to in Article 131 of the General Law on Electrical Services, has already made the call for a supply invitation to tender referred to in that Article, shall not carry out a new call for tender of supply in accordance with the above paragraph. The provisions of this Article shall apply to supplies to regulated customers of an electrical system which have been engaged with a generating undertaking, the bankruptcy of which is declared within the period between the date of publication of the contract. present law and 31 December 2010. However, no tendering process which originates under the provisions of this Article may award a supply contract for it to be initiated at a date after 31 December 2011. Article 4 °.-The National Energy Commission shall, by means of an exempt resolution, establish the technical provisions necessary for the proper implementation of the rules introduced by this law into the General Law on Electrical Services. Article 5.-As long as the corresponding regulatory provisions do not enter into force, the time limits referred to in Article 146 ° c which are introduced into the General Law on Electrical Services shall be 24 months for generating and generating units. 12 months for transmission systems. ' And because I have had to approve and sanction it; therefore, promulgate and take effect as the Law of the Republic. Santiago, 13 September 2007.-MICHELLE BACHELET, President of the Republic.-Alejandro Ferreiro Yazigi, Minister of Economy, Development and Reconstruction.-Karen Poniachik Pollak, Minister of Mining.-Marcelo Tokman Ramos, Minister President National Energy Commission. What I transcribe to you for your knowledge.-Salutes intently to Ud., Ana María Correa López, Undersecretary of Economy.