By: Felipe Bahamondez and Carolina Bawlitza

Chile’s Tribunal for the Defense of Free Competition (TDLC) rejected the plea of Celeo Redes Chile Limitada, which had requested that the government modify “the legal precepts necessary to introduce a greater degree of competition in the generation, distribution and electric transmission markets.” In particular, the requested regulatory amendment sought to:

• Eliminate the prohibition against companies that own or operate national transmission systems from participating in electricity generation or distribution activities and
• Eliminate the restriction against generating companies, distributors and non-price-fixing customers from participating individually in a maximum of 8 percent and, as a whole, up to 40 percent of the total investment value of the national transmission system.

The TDLC considered that, given the position adopted by the Ministry of Energy in the process, which “not only noted the proposal…. but also spoke openly in its favor,” the recommendation to the government is inofficious.

Given the above, the indicated restrictions shall remain in force as long as the National Congress of Chile does not approve a bill aimed at eliminating them.