Modifies The Regulatory Framework For The Power Sector

Original Language Title: MODIFICA EL MARCO NORMATIVO DEL SECTOR ELECTRICO

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"Article 1. Introducense the following |! | amendments to the decree with force of law Nº 1, de |! | 1982, the Ministry of mining, General Law of |! | Electrical services: 1.-repeal of the second paragraph of article 79.

2 Intercalanse, then of article 79, |! | the following new items: "article 79 1-service dealerships |! |" public distribution must have permanently |! | supply of energy which, coupled with the ability to |! | own generation, allow them to meet the total |! | projected consumption of regulated consumers |! | at least for the next three years.
For these purposes, the beforehand set the |! | Regulation, shall tender supply necessary for |! | supply consumption subject customers to |! | located in its concession area, price regulation |! | so that the whole of the resulting contracts, |! | most eventually own generating capacity, |! | ensure compliance with the obligation established |! | in the preceding paragraph.
Tender of delivery shall be public, |! | Open, non-discriminatory and transparent. In addition, |! | the information contained in the tenders of the |! | proponents will be in the public domain through a medium |! | electronic.
The concessionaires will coordinate to perform |! | a tender joint for the sum of the supplies |! | individual to hire.

Article 79 °-2-the basis for tendering, |! | individual or joint, are drawn up by the |! | concessionaires and must be approved previously by |! | the Commission.
The bidding rules shall specify, at least, |! | the points of power system in which are |! | carry out the supply, the amount to be bid and |! | period of supply covering the offer.
In any case, tenders which the |! | concessionaires carry out to supply its consumption |! | regulated may not include consumption of customers not |! | subject to regulation of prices of their areas of |! | concession.
The rules shall lay down the maximum percentage of |! | energy for regulated customers requirements to |! | hiring in each contract. The term of the contracts |! | You must be coordinated so that the expiration of these |! | does not imply that the amount of energy to hire in a |! | calendar year exceed the designated percentage |! | previously.

Article 79-3.-safety requirements and |! | quality of service are established for each |! | tender must be homogeneous, as set it the |! | regulations, and non-discriminatory for the bidders. |!| Any offeror may offer special qualities of |! | service, nor include royalties or additional benefits |! | to supply.
The regulations shall determine the requirements and the |! | conditions to be offering, as well as warranties |! | that this must yield to ensure compliance of its |! | offer and supply contract which is signed.
The period of supply covering the offer shall |! | be the one that specify the bidding rules, the |! | that it may not exceed fifteen years.
The offeror shall submit an offer to supply |! | Noting the price of energy, in the o in paragraphs |! | purchase matching, in accordance with the foundations.
The price of power, during the term of the |! | supply contract, will be the price fixed in the |! | Decree of price of current node at the time of the |! | tender, article 103 and following. |!| The indexing of prices for energy formulas and |! | power will be defined by the Commission on the basis of |! | the invitation to tender or, if they allow it, by the |! | suppliers, in accordance with the abovementioned conditions in |! | them.
The energy price indexing formulas |! | they must express the variation in costs of the |! | fuels and other relevant inputs for the |! | power generation. Similarly, the formulas of |! | indexation of the price of the power must reflect |! | variations in unit investment costs |! | more economical to provide generator power |! | during the hours of peak demand, and you'll get a |! | starting from the values of the most representative currencies |! | the origin of the generating unit, duly |! | reset to maintain purchasing power in their |! | respective countries.

Article 79 - 4.-the tender will be awarded to the |! | the bidder offering the lowest price of energy. In the |! | If there is more than one supply point, the |! | How to calculate the price of energy will be the |! | to indicate the regulation.
All supply contract between a Distributor |! | and your supplier, to supply regulated customers, |! | It will be signed by public deed, and a copy |! | authorized will be registered in the SVS. |!| In addition, the respective Distributor must inform |! | on the outcome of the invitation to tender to the Commission, in the |! | form which is available, at the latest three days later |! | of made the mentioned registry.
Other conditions of tenders for |! | supply consumption regulated, and their bases, |! | laid down in the regulation. In any case the |! | Regulation may establish more onerous conditions than |! | those laid down in this law.
In any case, the total energy to be |! | check the supplier to a Distributor |! | It shall be equal to the energy actually sued by this |! | in the billing period.

Article 79 °-5.-each tender the maximum value |! | bids will be the equivalent to the upper limit of |! | the band set out in article 101 ° ter, existing to the |! | time of the tender, increased by 20%.
If a tender is received to the |! | time of the opening of supply tenders, the |! | concessionaire shall summon a new tender, the |! | which must be made within thirty days |! | following this statement. In this case, the Council |! | Officer of the Commission may agree, founded, |! | the upper limit of the band, designated in the |! | previous paragraph, be increased in addition, |! | in up to 15%.
Where is this new tender |! | has been received, the concessionaire may convene a |! | new tenders, with the maximum value that designates the |! | previous paragraph, until it is in effect the next |! | Decree of knot prices, from which time the |! | maximum value of the energy price will correspond to the |! | defined in subsection first. "."

3. Insert, after article 90, |! | the following new article: "article 90 bis.-generators that provide |! |" electricity consumers subject to regulation of |! | prices, in accordance with paragraphs 1 and 2 of the article |! | 90 °, and which connected the end user power |! | than or equal to 500 kilowatts, may agree with |! | These reductions or temporary increases of its |! | consumption, which shall be charged to the supplies |! | committed by the respective generator.
In addition, generators, direct or a |! | utilities concessionaires through |! | public distribution, may offer or agree with |! | consumers of less than 500 kilowatts reductions or |! | temporary increases in consumption, which shall be charged to |! | committed by the respective supplies |! | generator.
Proposals that make generators of |! | accordance with previous, as well as formulated |! | under non-discriminatory and transparent terms, should be |! | specify the period by which offered the |! | proposed conditions and shape, mechanism and |! | periodicity of incentives which will be awarded by the |! | reductions or increases in consumption, and will contain the |! | other specifications that designate the Commission.
If such an offer if any through de |! | distribution companies, they must transmit them to |! | consumers, in the form and within the time that |! | determined by the Commission, unless they can incorporate them |! | any element or additional condition to the established |! | by the generator. These mechanisms may not contain |! | conditions or clauses that graven, fine or may impair |! | consumers.
Once made the offer, either directly or a |! | through the distribution companies, it means |! | tacitly accepted by users |! | recipients per single reduction or increase of the |! | consumption, as the case, and the generators will be |! | forced to comply with incentives and other conditions |! | offered by the period designated in the respective |! | offer.
The costs associated with the implementation of the |! | system of incentives for reductions or increases of |! | consumption will be in charge of the generator.
The Commission shall establish the rules which are |! | necessary for the proper application of the mechanism |! | provided for in this article, regulating procedures, |! | period and other conditions that are required for your |! | execution. "."

4 Intercalanse, continuation of article 96, |! | the following new items: "article 96 bis.-energy prices and |! |" power obtained in regulated auctions in the |! | Article 79-1 and following, called "prices of knot |! |" long-term", and their indexing formulas, are |! | they will include in the decree referred to in article 103 |! | that rendered subsequent to the term of the |! | respective tender.
Article 96 º ter-service dealerships |! | public distribution shall transfer to customers |! | end subject to regulation of the prices to |! | level of handled resulting from averaging |! | the current prices for such supplies in accordance with |! | their respective contracts. The average is obtained |! | prices weighted by the volume of supply |! | corresponding.
If the average price of energy a |! | concessionaire, determined for the whole of its area |! | grant, exceeds by more than 5% the average |! | weighted price of energy calculated for all the |! | concessionaires of the electrical system, the average price |! | of such licensee shall conform so de |! | delete this excess, which will be absorbed in the |! | average prices of the system dealers, to |! | proportion to the respective supplied energy for |! | regulated customers. For purposes of comparison |! | designated, average prices must relate to a |! | in substation of electrical system.
The recalculation between companies |! | a giving origin the mechanism referred to in subsection |! | above shall be calculated by the direction of tolls of the |! | Respective CDEC.
The reassessment which may be made between |! | distribution public service dealers not |! | It will affect the obligation of the respective concessionaire of |! | pay the full price of the energy your supplier |! | and received power.
Without prejudice to the right to bid on the |! | tenders regulated in the articles 79 1 and |! | Next, in the conditions that establish the |! | respective bases, the owners of means of |! | generation referred to in article 71 - 7 will have |! | right to supply dealers of |! | distribution, the average price referred to in subsection |! | first of this article, up to 5% of the total of |! | demand for regulated customers.
Procedures for fulfilling to thing |! | laid down in this article shall contain in the |! | Regulation.

Article 96 º c-average prices than the |! | public service distribution dealers, |! | calculated in accordance with the previous article and which should |! | transfer to its regulated customers, will be fixed |! | by Decree of the Ministry of economy, development and |! | Reconstruction, issued under the formula "by order of the |! |" President of the Republic", report of the |! | Commission. Such decrees will be given in the |! | (siguientes oportunidades: a) on the occasion of the fixations of prices |! | mentioned in article 103;
(b) on the occasion of the entry into force of any |! | tendered pursuant to the article supply contract |! | (79º-1 y siguientes, y c) when any price be indexed in a |! | existing supply, pursuant to contract in |! | articles 98 bis and 104 degrees.
Prices resulting from the designated publication |! | (en la letra b) shall be effective from the date |! | in to start the supply, as it indicates the |! | respective contract, and will proceed to the reassessment |! | that it is necessary, according to article 103.
Prices resulting from the publication |! | (señalada en la letra c) will take effect starting from |! | the date arising from the indexing.

5. Insert, after article 98, |! | the following new article: "article 98 º bis-prices of long knot |! |" time will reset in accordance with their respective |! | formulas for indexation, on the occasion of each fixing of |! | prices referred to in article 103. These new |! | prices will be used to determine prices |! | average indicated in article 96 ° ter.
If, within the period that mediate between the months |! | referred to in article 103, to apply the formula of |! | respective indexing, a knot of long term price |! | experience a greater than ten cumulative change by |! | cent, this will be reset, and the Commission must |! | the new average price of each |! | Distributor as designated in article 96 |! | ter. "."

6.-enter in the fourth subparagraph of article 99 |! | bis, the following final sentence: "nor is |! |" They shall be considered force majeure or fortuitous, case fail them from |! | Central total restrictions as a result or |! | partial natural gas from pipelines |! | International"."

7. Insert, after article 99 |! | bis, the following new item:.

"Article 99 º ter-all subject customer to |! |" price regulation is entitled to receive the |! | compensation of the previous article, independently |! | the origin of the obligation to supply to the |! | concessionary public service of distribution by |! | generating companies. "."

8. replace article 101 ° by the following: "article 101.-companies and entities that are |! |" Article 100 ° shall communicate to the Commission, |! | before the 31st March and 30th September of each |! | year, conformity or your observations to the report |! | technician prepared by the Commission. Together with its |! | conformity or observations, each company must |! | communicate to the Commission, to its clients not |! | subject to regulation of prices, hereinafter "customers |! |" ("free, and distribution, as follows: to) the power;
b) energy;
(c) the corresponding delivery point;
(d) the average price charged by the sales |! | the average price charged by the sales (a precio libre, y e) |! | a knot of long-term prices.

The information in the previous letters |! | you will understand the four months prior to the dates |! | mentioned in the first subparagraph.
(Los precios medios señalados en las letras d) and e) |! | they must be expressed in real currency at the end of the |! | informed period, in accordance with the mechanisms that |! | set the rules.
The Commission can accept or reject, total or |! | partially, the observations of the companies; without |! | However, the final knot prices of energy and |! | power that is determined shall be such that the |! | Theoretical means price is within the band of |! | Designated market in 101 article ter prices. "."

9 Intercalanse, continuation of article 101, |! | the following new items: "article 101 bis.-the procedure of |! |" determination and comparison of the prices of |! | (Mercado y Teórico será el siguiente: 1) from the average prices informed |! | (conforme a las letras d) and e) of the preceding article, is |! | calculate the middle market price. This will be |! | determined as the quotient between the total of the |! | billings made by all supplies of |! | energy and power to free clients and distributors |! | indicated in item 101, and the total energy |! | associated with such supplies, both occurring in the |! | period of four months culminating in the previous month |! | of the fixing of the prices of knot.
(2) starting from the energy and power of the |! | supplies made to free clients and |! | distributors, reported in accordance with article 101, is |! | It will determine the theoretical middle price. This is calculated |! | as the quotient between the theoretical billing, which |! | results of rating designated supplies to the |! | certain knot of energy and capacity prices by |! | the Commission, including charges intended to remunerate |! | transmission system backbone as it designates the |! | Article 71 °-30, in their respective supply points |! | and voltage level, and the total energy associated to |! | these supplies, both in the four month period |! | designated in the previous issue.
(3) if the theoretical middle price lies within |! | of the band of market prices referred to in the |! | Article 101st ter, the certain knot prices |! | they will be accepted previously by the Commission. In case |! | If not, the Commission must multiply all the |! | prices of knot, only in its energy component, by |! | a single coefficient, achieving the limit more |! | Next, top or bottom of the price band of |! | Market.

Article 101 º ter-the limits of the band of |! | Market prices will be calculated according to thing |! | (siguiente: 1) from the basic prices of energy and |! | power calculated by the Commission, shall be calculated a |! | average price, called basic half price.
(2) if the difference between the basic medium price and |! | the middle market price is less than 30%, the band |! | Market price will be equal to 5%, with regard to the |! | Means of market price.
(3) if the difference between the basic medium price and |! | the middle market price is equal to or greater than 30% e |! | less than 80%, the band of market prices will be |! | equal to two-fifths of the difference |! | percentage between both average prices, less 2%.
(4) if the difference between the basic medium price and |! | the middle market price is equal to or greater than 80%, the |! | Band of market prices will be equal to 30%. "."

10. Insert, after article 102, |! | the following 102 ° bis, new article: "article 102 bis.-knot prices to be |! |" Article 103 ° will incorporate a percentage of |! | the increased costs incurred by the electrical system |! | for required security of supply plans |! | exceptionally to the COC for the Commission, agreement |! | of its Board of Directors.
The rules shall lay down the conditions for that |! | exceptionally, the mechanism is given for |! | set the percentage referred to in the preceding paragraph, |! | which will correspond to the proportion of consumption |! | regulated price of knot in relation to total consumption, |! | the recalculation needed to make the |! | fundraising by the generating companies than |! | they incurred additional costs for plans of |! | security, as well as also to ensure that there are no |! | double payments by users. "."

11 Introducense, in article 150 the |! | (siguientes modificaciones: a) Insert, in the second paragraph of the letter |! | (b), between the expressions "Directory" and "organisms |! |" technicians"the following phrase:" that will be composed by |! | " companies generating and transmitting trunk and |! | sub transmission and a representative of customers |! | free of the respective system, as determined at |! | the rules of procedure. "It will also with".
(b) add, then in the second paragraph of |! | the letter b), the following third, new subparagraph: "the COC will consist of proprietary companies |! |" facilities that designates the subparagraph first of |! | This letter, in the form determined by the regulation. The |! | Directors of each Directorate shall be appointed and may be |! | be removed before the end of the period, by the |! | two-thirds of the directory and will last in office four |! | years, and may be re-elected by two-thirds, only by |! | one period. Funding from each COC will be de |! | charge of its members, as it determined the |! | Regulation. The annual budget of each COC shall |! | reported favorably by the Committee, in the form |! | prior to their execution. "."