Chile Government Cuts Central Power Node Rates 12.1% Through April
October 15 2009 - 12:47PM
Dow Jones News
Chile's National Energy Commission said Thursday it cut by 12.1%
the average regulated electricity wholesale price, or node rate,
generators charge distributors operating on the country's central
electricity grid from November through April 2010.
This is the biggest drop in wholesale rates on the central
electricity grid, or SIC, since October 1997, "which is obvioulsy
very good news for consumers," Energy Minister Marcelo Tokman
said.
The SIC, supplies some two-thirds of electricity to Chilean
homes and industries.
As a result of the node rate cuts and other readjustments,
residential electricity rates will fall an average 8.6% on the SIC
grid, according to the minister.
The energy commission adjusts the node rate, a theoretical price
for electricity charged to regulated customers, every six months.
The prices are based on the exchange rate between the dollar and
the peso, 10-year power demand projections, utilities'
capital-spending plans, water reservoir levels, the prices of oil,
coal and natural gas, and variations in the producer price
index.
The commission also can re-adjust rates between these dates if
any of the factors it takes into consideration vary more than 10%
during the six-month period in which the regulated prices are
valid.
The principal power companies supplying energy to the SIC grid
are Empresa Nacional de Electricidad (EOC), AES Corp. (AES) through
its Gener (GENER.SN) unit, and Colbun (COLBUN.SN).
-By Carolina Pica, Dow Jones Newswires; 56-2-820-4244;
carolina.pica@dowjones.com