Reducing the capacity limit to be a free customer does not generate risks to competition

This is a machine translation of the original release, issued in Spanish.

PRESS RELEASE from Acen
November 28, 2024

The initiative activated by the Ministry of Energy to reduce the minimum power threshold to be eligible to be a free customer made great progress. The Tribunal for the Defense of Free Competition (TDLC) issued its Report No. 33/2024, the conclusions of which indicate that after analyzing the proposal, consisting of a reduction from 500 to 300 kW of the minimum power threshold for customers to opt for the supply of electricity as free customers, “this Tribunal concludes that the Request does not generate substantial risks to competition. Consequently, it is reported favorably .”

It should be remembered that in December 2023, the Ministry of Energy requested the TDLC to issue a report on the request to lower the power limit so that end users can opt for a regulated tariff or free price regime, from the current 500 kilowatts to 300 kilowatts, in accordance with article 147 letter d) of Decree with Force of Law No. 4/20.018 of the Ministry of Economy, Development and Reconstruction, of 2006.

The executive secretary of the Association of Energy Traders (ACEN), Eduardo Andrade, indicated that “we consider highly relevant what was indicated by the TDLC in its report issued yesterday regarding the fact that the reduction from 500 to 300 kW of the threshold for clients to be eligible to be free clients does not generate substantial risks to competition, therefore, they report favorably. We also highlight what was indicated by the TDLC regarding the binding nature of the report, that is, it is highly probable that potential new free clients will be able to access the benefits that this implies in a relatively short period of time. All that is missing is for the Ministry of Energy to issue the corresponding decree.”

Meanwhile, the Association of Non-Regulated Electricity Customers pointed out that, for the industrial, mining and transport sectors that ACENOR AG represents, this measure is considered an opportunity for smaller companies to have the freedom to decide under which conditions they contract their electricity supply.

"We believe that this measure must be complemented by an official policy to support smaller clients, in order to reduce information asymmetries and promote competition in the energy contract market," said ACENOR's executive director, Javier Bustos.

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In 2021, ACEN, together with ACENOR, Aproval, Avec, Chile Alimentos, Hoteleros de Chile, Sago, Social Lab and Vinos de Chile, promoted a campaign to showcase the advantages of reducing the power limit, which would enable more SMEs to become free customers, allowing them to access multiple services, in addition to lower costs in their electricity rates.