The first barometer of the Chilean electrical system was launched

This is an automatic translation of the original release, issued in Spanish.

COMMUNICATION from Acenor
August 5, 2024

Santiago, August 5, 2024.- In order to be able to evaluate whether the final supply prices in Chile are in comparable ranges with other electricity markets, the first barometer of prices and costs of the electricity system in Chile was launched, which makes a comparison between different countries for sectors intensive in electricity consumption such as industry, construction or transportation.

This report, prepared by the Association of Non-Regulated Electricity Customers (whose members represent 50% of the consumption of free customers in the country), shows that, internationally, Chile has total electricity supply costs 70% higher than in Peru , 13% more than in France, 8% more than in Germany and 5% more than in Spain. “These calculations do not consider the discounts that the electro-intensive industry in Europe obtains for demand management and CO2 compensation, so the differences could be even greater,” clarifies the executive director of ACENOR, Javier Bustos .

The report, explains the representative of free customers, also tracks all the costs of the Chilean electricity system and its relationship with the prices that end customers pay in their monthly bills. In this context, it is observed that the total cost of electricity supply in Chile (energy, power and systemic charges, without considering the payment of transmission and distribution networks) went from 63 USD/MWh in 2020 to reach a maximum of 183 USD/MWh in July 2022. Since July 2023 it has converged to levels of 80 USD/MWh.

“The final price to free customers averaged 87 USD/MWh in 2020, reached a maximum of 124 USD/MWh in February 2023 and during 2024 it is at 112 USD/MWh, which results in an increase of 26% in 4 years,” explains Javier Bustos. "With these levels of electricity prices for electro-intensive industries, it is difficult to compete with neighboring countries, as well as enter more developed markets such as those that exist in European countries."

The document also details the evolution of systemic charges, payment for capacity or power, transmission costs and the public service charge.   In the case of this last component, it is observed that it had a significant increase in December 2022 with the creation of the rate stabilization fund for regulated customers, which included an additional charge of $2.8/kWh (value at the time of publication of the law, which is updated annually for inflation) for monthly consumption greater than 5,000 kWh.

* The Barometer of Prices and Costs of the Electricity System in Chile can be downloaded here: https://acenor.cl/barometro-del-mercado-electrico-chileno-junio-2024/

About the Electrical Customers Association

ACENOR is the only trade association that represents unregulated electricity clients or free clients in the Chilean electricity sector. Free customers are all those whose connected power is greater than 500 kW and have opted for this category or have a connected power greater than 5 MW.

The Association of Electrical Customers has 28 years of history and the sum of its members represents 50% of the consumption of free customers in the country. Among its partners are companies from different productive sectors such as Codelco , Metro , AZA Aceros and Polpaico .