Chile to improve competitiveness of electricity tariffs


Santiago de Chile — (METERING.COM) — May 24, 2012 – Chile’s Ministries of Energy and Economy have presented three strategies to improve the competitiveness of electricity tariffs and to reduce prices for residential and small and medium business customers.

The three strategies are the implementation of variable rates, the introduction of education at primary and secondary levels, and the introduction of “multicarrier power” or commercialization agents.

According to a statement the energy ministry will develop a strategy to implement hourly-based tariffs for residential customers, allowing them to change their consumption pattern and to reduce their bill, as well as postpone the development of new generation capacity.

The ministry is also working to include in the curriculum at primary and secondary levels topics pertaining to energy, including energy efficiency concepts and how energy is produced in Chile, with the aim of stimulating a more rational use of energy in the long term.

The “multicarrier power” concept is aimed at wholesale market customers and business customers up to 2 MW and the ministry will develop the legal and regulatory framework to allow one or more such agents to operate, who will cover the demand of these customers. In this connection, a risk coverage market will also be created to enable the agents to diversify their exposure to factors such as variations in energy price.

“With these measures, the government is honoring its commitment to the competitiveness of the sector for small and medium businesses. Furthermore, the people will achieve savings in their energy bills and a better understanding of the functioning of the electricity market,” commented energy under secretary Sergio del Campo.