regulatory overview of the chilean energy sector1 · 2019-06-28 · the aforementioned, whether or...

1
1 This overview only includes the most relevant Chilean regulations, applica- ble to each of the areas of the Energy Sector. It therefore, does not repre- sent the totality of Chilean regulation. The map shows current regulations as of May 27th, 2019. The dates associated with each law are those of its publication date and those of each regulation are those of its first publication in the Official Gazette, notwithstanding that its texts include subsequent modifications. Some abbreviations are with their original name in Spanish. 2 The regulatory framework of the electricity sector applies entirely to non-conventional renewable and renewable energies. MINISTRIES ABBREVIATIONS: MIDEPLAN Ministry of Planning and Coordination MINECON Ministry of Economy, Development and Reconstruction MINENERGÍA Ministry of Energy MINHACIENDA Ministry of Finance MININTERIOR Ministry of Interior MINJUSTICIA Ministry of Justice MINMINERÍA Ministry of Mining MINREL Ministry of Foreign Affairs MINSEGPRES Ministry General Secretary of the Presidency MMA Ministry of Environment MTT Ministry of Transportation MTyC Ministry of Land and Colonization OTHER ABBREVIATIONS: CNE National Commission of Energy DFL Decree with Force of Law DS Supreme Decree ENAP National Oil Company LGSE General Law of Electrical Services LNG Liquefied Natural Gas LP Liquid Petroleum LPG Liquefied Petroleum Gas NCRE Non Conventional Renewable Energy PMG Small Generation PMGD Small Distributed Generation SEC Superintendence of Electricity and Fuels SEN National Electrical System Regulations with associated technical standards http://www.minenergia.cl/mercadoernc/ GENERATION MEDIUM SYSTEMS OTHER MATTERS COORDINATION AND OPERATION OF THE SEN TRANSMISSION DISTRIBUTION SECURITY RENEWABLE ENERGY 2 FUEL SECTOR ENERGY EFFICIENCY ELECTRICITY SECTOR It establishes an optative energy price stabilization mechanism for proprietors of generation means whose capacity surplus does not exceed 9 MW; as well as the procedure for obtaining the authorization, operation and coordination of those generation means when they connect to electric lines from a distribution concessionaire, or facilities of a company with distribution lines that use national goods of public use. Small Distributed Generation DS 244/2006 MINECON It regulates the procedure applicable to long-term energy planning in order to determine the scenarios for the transmission system planning, subject to the provisions of the LGSE. Long-Term Energy Planning DS 134/2017 MINENERGÍA It regulates all those matters of the LGSE that are not entrusted to a special regulation. Currently those standards regarding concessions and electricity easements; security and quality of the electricity supply provided by electricity distribution companies; determination of the distribution component of the tariffs applicable to regulated customers, among others, remain valid. Concessions and Distribution DS 327/1998 MINMINERÍA It establishes complementary standards for implementing Law N º 20.365, that establishes a fiscal credit for building companies installing Thermal Solar Systems intended for warming sanitary water in new residences before 2020. It also details the minimum requirements Thermal Solar Systems must meet, their installation and mandatory maintenance, as well as other matters entrusted by the law. Tax Exemption of Thermal Solar Systems DS 331/2010 MINENERGÍA It establishes the procedure according to which the minimum standards of energy efficiency will be established, and the standards of application that products, machines, instruments, equipment, devices and materials that use any type of energy resource must comply with, for their commercialization in the country. Procedure to set Energy Efficiency Standards DS 97/2012 MINENERGÍA It establishes the energy consumption labeling system for motorized vehicles, light and medium, that use diesel or gasoline as fuel; those driven exclusively by electric power; or the so-called "hybrids". Energy Consumption Labeling for Motorized Vehicles DS 61/2012 MINENERGÍA It establishes the minimum requirements applicable to the design, construction, commissioning, operation, maintenance and any other action necessary for the correct construction and operation of public lighting for the illumination of vehicular traffic routes, in order to satisfy the basic, necessary conditions and efficient for the illumination of roads. Public Lighting of Vehicular Traffic Routes DS 2/2015 MINENERGÍA It establishes the requirements that must be fulfilled by facilities where electrical energy and heat are generated in a single process of high energy efficiency, to be considered as "efficient cogeneration" for the purposes of the LGSE. Efficient Cogeneration Facilities DS 6/2015 MINENERGÍA It establishes the minimum requirements applicable to any action necessary for the correct construction and operation of public lighting destined for roads for pedestrian traffic; sidewalks squares, parks, gardens, open areas, pedestrian areas, playgrounds and exercise machines, and pedestrian crossings under the road and footbridges. Public Lighting of Pedestrian Transit Areas DS 51/2015 MINENERGÍA It establishes the procedure according to which the characteristics of the energy consumption labels that products, machines, instruments, equipment, appliances, devices and electrical, gas and liquid fuels materials or that use any type of energy resource will have to be determined for marketing in the country; as well as the other standards necessary for its application. Procedure to Elaborate Technical Specifications of Energy Consumption Labels DS 64/2014 MINENERGÍA It establishes the minimum safety requirements that liquid petroleum and biofuel (LP) fuels installations must fulfill, and the operations associated with the production, refining, transport, storage, distribution and supply of LP that are carried out in such facilities, as well as the obligations of natural and legal persons involved in such operations. The latter, in order to develop such activities in a safe manner, controlling the risk in such a way that it does not constitute a danger to people and/or things. It will not be applicable to facilities in oil production fields, direct aircraft supply or LP maritime transport. Security of Facilities and Production, Refining, Transportation, Storage, Distribution and Supply of Liquid Fuels DS 160/2009 MINECON It establishes the minimum safety requirements that must be met by gas transmission and distribution networks, new and in use ("gas networks"), with respect to their design, construction, operation, maintenance, repair, modification and inspection and In addition, the obligations of natural and legal persons involved in these facilities are established. The latter, in order to develop such activities in a safe manner, controlling the risk in such a way that it does not constitute a danger to people and /or things. Security for the Transportation and Distribution of Gas Network DS 280/2010 MINECON It establishes the minimum safety requirements that the transport units of LNG must meet in the stages of design, manufacture, commissioning, operation, maintenance, inspection and definitive end of operations, as well as the obligations of the natural and legal persons that intervene in them. The latter, in order to develop such activities in a safe manner, controlling the risk in such a way that it does not constitute a danger to people and /or things. Safety for the Transportation of Liquefied Natural Gas DS 102/2014 MINENERGÍA It establishes the minimum safety requirements that LPG facilities must meet, in the stages of design, construction, operation, maintenance, inspection and definitive end of operations, in which storage, packaging, transport, transfer, and distribution activities will be carried out. It also regulates the supply of LPG, as well as the obligations of natural and legal persons involved in said activities. The latter, in order to develop such activities in a safe manner, controlling the risk in such a way that it does not constitute a danger to people and /or things. Safety for Storage, Transportation and Distribution of Liquefied Petroleum Gas DS 108/2014 MINENERGÍA It establishes minimum safety requirements for the design, construction, operation, maintenance, inspection and definitive termination of LNG Plant operations, in which Natural Gas liquefaction is performed or LNG is received, stored, transferred or regasified. It also establishes the obligations of natural and legal persons involved in these activities. Safety of Liquefied Natural Gas Plants DS 67/2012 MINENERGÍA It establishes technical, quality and control procedure standards applicable to fuels derived from petroleum, natural gas, liquefied gas and piped gas, and that appear in the Nomenclature of the Council of Customs Cooperation of Brussels, adapted to the Andean Area, in the Chapter 27 of the Customs Tariff. Technical, Quality and Control Standards of Raw Oil and other Derived Fuels DS 132/1979 MINMINERÍA It regulates the procedure for the granting of Concessions for the Public Service of Network Gas Distribution and of Network Gas Transportation, the Requests for such Concessions, Operating Conditions; and the Expiration of Concessions before entering into exploitation. Concessions for the Distribution and Transportation of Gas DS 263/1995 MINECON It establishes dispositions that are applicable to the companies that distribute or supply network gas to the facilities of said companies, to those of the clients or consumers when these are necessary to carry out the supply, and to the relations of the distributing or supplying companies with the State and with the individuals. The aforementioned, whether or not they are public service concessionaires. Network Gas Service DS 67/2004 MINECON It authorizes the use of liquefied petroleum gas (LPG) as fuel for motor vehicles, provided that the system that allows the use of said fuel complies with the safety requirements established in Standard NCh 2102 Of. 87. Use of LPG as a Fuel for Motorized Vehicles DS 52/1987 MTT It establishes gasoline quality specifications for spark ignition engines, Kerosene and Diesel Oil Grade B. Specifications of the Quality of Fuels DS 60/2012 MINENERGÍA It regulates the procedure and granting of geothermal energy exploration and exploitation concessions, as well as the control and compliance with the obligations derived from the concession, whether it is granted to explore or to exploit. Geothermal Energy Concessions DS 114/2013 MINENERGÍA It establishes minimum safety requirements that biogas facilities must comply with in the design, construction, operation, maintenance, inspection and definitive conclusion of operations, in which any of the stages associated with generation or consumption of biogas is carried out. Safety of Biogas Facilities DS 119/2017 MINENERGÍA It contains quality definitions and specifications for the production, import, transport, storage, distribution and commercialization of bioethanol and biodiesel. Quality Specifications for Biofuels DS 11/2008 MINECON It regulates the obligations and procedures for identifying taxpayers who are obliged to pay the tax over emissions to the atmosphere of particulate material, Nitrogen Oxides, Sulfur Dioxide and Carbon Dioxide produced by facilities with boilers or turbines that, individually or as a group, have a thermal capacity greater than or equal to 50 MW, considering the maximum limit of the energetic value of fuel established in the Income Tax Law. It also establishes the administrative procedures required for its correct implementation. Procedure for Appliying a Tax Over Atmosphere Contaminating Emissions DS 18/2016 MMA It seeks to control the emission to the air of Particulate Material (PM), Nitrogen Oxides (NOx), Sulfur Dioxide (SO2) and Mercury (Hg), aiming to prevent and protect people’s health and the environment. This regulation is mandatory throughout the Chilean territory. Emission of Atmosphere Contaminants for Thermal Power Plants DS 13/2011 MMA It regulates the determination of prices for services different from the electricity supply provided by distribution concessionaires as ancillary services, such as: leasing, installation; modification or reprogramming of electricity consumption measuring devices; installation, removal or capacity enlargement of electric connections; or review of electric projects. Price Detemination for Ancillary Services DS 341/2008 MINECON It establishes the applicable rules for determining the energy and capacity prices that will be transferred from the concessionaires of the public service of distribution to their clients subjected to tariff regulation. Base Price Determination DS 86/2013 MINENERGÍA It establishes the provisions applicable to bidding procedures for the supply of electrical energy, which have the purpose of making the public services concessionaires put in place energy supply agreements to supply the consumption of regulated customers located in their concession area with electrical systems of installed capacity greater than 200 MW. Energy Tender for Regulated Customer DS 106/2016 MINENERGÍA It establishes the requirements and procedures to be met by distribution companies, installers and regulated customer of the distribution companies that have NCRE generation equipment or efficient cogeneration facilities for self-consumption, for them to be able to use their right to inject their energy into the distribution network, and have this injection economically valued and discounted from their energy bill. This standard aims at establishing the minimum security conditions to be met by low-voltage consumption electrical facilities to safeguard people who operate or use them and preserve the environment where they have been built. Distributed Generation (Netbilling) DS 71/2014 MINENERGÍA Technical Standard for Low-Voltage Consumption Facilities DS 115/2004 MINECON It establishes the procedure applicable to the determination of alternative and preliminary corridors for those new transmission projects that may require it and the determination of the final layouts, security corridors and the constitution of electrical easements in case of determining corridors. Determination of Preliminary Corridors for New Transmission Projects DS 139/2017 MINENERGÍA It complements the LGSE regarding the obligations of the Coordinator, as well as the planification and programming of the operation. Coordination of the Operation DS 291/2008 MINECON It establishes the provisions applicable to the organisation, composition and operation of the Coordinator. It also regulates all the necessary matters for the Coordinator to exercise its duties and powers according to the provisions of the LGSE and other applicable regulations. Independent Coordinator of the SEN DS 52/2018 MINENERGÍA Ancillary Services are those services that allow the coordination of the operation of the National Electric System. The Coordinator, through the Ancillary Services, must preserve the security of the service and guarantee the most economical and quality operation for the electric system. Ancillary Services DS 113/2019 MINENERGÍA It regulates, among others, the circumstances under which a Supply Security Plan is required to the Coordinator. The plan will be a set of measures to be fulfilled by the Coordinator, aiming at ensuring the supply of the relevant electrical system and the prevention of deficit situations or reducing to a minimum level the risk of them within a given period of time. The plan shall also take into consideration, where applicable, a proper handling of the hydrological resources of a system and/or the optimal use of the available consumables for thermal plants. Supply Security Plans Requirements DS 97/2008 MINECON It establishes the requirements, terms and procedures for energy export and import applications and other electrical services, from and to the electrical systems located within the national territory. International Exchanges of Electrical Services DS 142/2017 MINENERGÍA It regulates the transfers of capacity between generation companies, which are determined from the generation capacity that is compatible with the sufficiency and with the existing peak demand engagements. Capacity Transfers between Generation Companies DS 62/2006 MINECON It regulates the compensations that coordinated electricity companies must pay in case of unavailability of the electricity supply. Determination and Payment of Compensations for Unavailability DS 31/2017 MINENERGÍA It regulates the treatment for pumping facilities without hydric variability as electricity storage systems coordinated by the Coordinator, as well as their technical characteristics. Hydraulic Pump Stations Without Hydric Variability DS 128/2016 MINENERGÍA It establishes the provisions applicable to electrical systems which installed generation capacity is between 1.5 MW and 200 MW, named Medium Systems. Medium Systems Operation and Management DS 23/2015 MINENERGÍA It establishes the conditions and requirements for current installations in Medium Systems to qualify as generation facilities or transmission facilities and makes provision for the cost and demand calculation methodology. Recovery and Expansion of Medium Systems DS 229/2005 MINECON It regulates the integration, operation, financing and faculties of the Expert Panel, as well as the procedures and other matters necessary for the proper exercise of their duties. Regulation of the Expert Panel DS 44/2018 MINENERGÍA It regulates the procedure for elaboration and amending technical standards governing technical matters related to security, coordination, quality, information and economic performance of the electrical sector. These standards are enacted by the CNE. Procedure for Issuing Technical Standards on the Electrical Sector DS 11/2017 MINENERGÍA It regulates the procedure for determining other means for the generation of NCRE, which use renewable energies for the production of electricity and diversify supply sources. Procedure for determining other Means for the Generation of Non-Conventional Renewable Energies DS 20/2015 MINENERGÍA It establishes the minimum security requirements to be met by electrical facilities devoted to the production, transportation, provision of ancillary services, storage and distribution systems of electrical energy. It also establishes the obligations of natural and legal persons that participate in these activities to develop them in a safe manner. Security of Electrical Facilities DS 109/2018 MINENERGÍA It establishes the conditions and characteristics of the annual public tender processes for the provision of energy blocks from NCRE means and the applicable rules to materialize and operate the awarded projects. Tenders for the Provision of Annual Energy Blocks with NCRE DS 29/2014 MINENERGÍA EMISSIONS OTHERS REGULATIONS It regulates the substances that are susceptible to mining concession and those whose are not. Non-concessible substances include, among others, liquid or gaseous hydrocarbons, lithium, deposits of any kind existing in maritime waters subject to national jurisdiction and reservoirs of any kind located, in whole or in part, in areas that according to the law, may be determined as important for national security with mining effects. As required by the national interest, the lithium extracted and concentrates, derivatives and compounds thereof, may not be subject to any legal act except when they are executed or concluded by the Chilean Nuclear Energy Commission or with its prior authorization. It regulates the following markets, in matters such as: · Generation: Concessions, a system of annual quotas of injection of NCRE to the SEN, PMG and PMGD, rationing. · Transmission: Concessions, open access, tenders, expansion, valuation and remuneration of transmission, interconnections. · Distribution: Concessions, open access, energy tenders for the supply of regulated customers, the price regime according to the type of customers and size of the electricity system, fare equity, distributed generation. · Coordination and operation of the SEN and the electricity market: Security, operation and economic transfers, public information, international exchanges, ancillary services. · Medium Systems: Those electrical systems whose installed generation capacity is greater than 1.5 MW and less than 200 MW. Geothermal Energy Concessions LAW 19.657/2000 MINMINERÍA It establishes that geothermal energy is a state own good, capable of being explored and exploited, after granting a concession, and it defines the rules for the granting of exploration and exploitation concessions. Among other matters, it regulates the relationships between the geothermal energy concessionaires, the State, the owners of the surface land and the holders of rights over other natural resources; as well as the obligations that concessionaires must respect and the sanctions applicable in case of non-compliance. Tax Exemption for Solar Thermal Systems LAW 20.365/2009 MINHACIENDA It establishes a transitory benefit for construction companies, through which they can deduct from their income tax payment a tax credit equivalent to all or part of the value of the Solar Thermal Systems destined for the heating of sanitary water, which are installed in new homes built until 2020. Registry of Owners of Fuel Facilities DFL 1/1979 MINMINERÍA It establishes a registry where the owners of facilities that serve for the production, import, refining, transport, distribution, storage, supply, regasification or that commercialize fuel derived from petroleum, liquid biofuels, combustible liquefied gases and all combustible gas, must register natural gas, gas network and biogas. This record is carried out by the SEC. Gas Services DFL 323/1931 MININTERIOR It regulates the transport, the gas distribution of the network; the marketing of gas; the system of gas network concessions and tariffs; the role of the State regarding these matters; and the criminal and infraction provisions. Fuel Price Stabilization Mechanism LAW 20.765/2014 MINHACIENDA It regulates the stabilization of domestic sales prices of fuels, such as automotive gasoline, diesel oil, compressed natural gas and liquefied gas. This regulation is achieved through increases and reductions in the specific taxes established by the fuel tax law. Nuclear Safety and Security LAW 18.302/1984 MINMINERÍA It regulates activities related to the peaceful uses of nuclear energy and nuclear substances and radioactive materials. It establishes measures to prevent the misappropriation and illicit use of nuclear energy, substances and facilities. Water Regulation Code DFL 1122/1981 MINJUSTICIA It regulates the right to use the water that is destined to the production of electrical energy. Likewise, it regulates hydroelectric plants that are governed by the provisions of the LGSE. Income Tax DL 824/1974 MINHACIENDA It establishes, among other provisions, an annual tax for fiscal benefit that taxes air emissions of particulate matter, oxides of nitrogen, sulfur dioxide and carbon dioxide, produced by fixed sources that add a power greater than or equal to 50 MW thermal. Incentives for Economic Development in Extreme Zones LAW 19.606/1999 MININTERIOR It grants a tax credit in favor of all those First Category taxpayers that invest in the extreme zones of the country, destined to the production of goods or provision of services in said zones. Incentives for Economic Development in Arica and Parinacota LAW 19.420/1995 MINHACIENDA It grants a tax credit in favor of all those First Category taxpayers that invest in the provinces of Arica and Parinacota, destined to the production of goods or provision of services in said zones. General Basis of the Environment LAW 19.300/1994 MINSEGPRES It regulates the right to live in a pollution-free environment, the protec- tion of the environment, the preservation of nature and the conservation of environmental heritage. Among other matters, it establishes: · Procedures to dictate quality standards and emission of pollutants. · The Environmental Evaluation System of investment projects. · The responsibility for environmental damage. · The Ministry of Environment. · The Council of Ministers for Sustainability. · The Environmental Evaluation Service. · The Superintendence of the Environment. Acquisition, Administration and Disposition of State Goods DL 1.939/1977 MTyC It establishes that State assets may be subject to destinations, concessions of use, affectations and leases. In particular, it states, among others, that the general provisions for sale, lease and use through concessions of fiscal lands for the installation of energy generation and transmission infrastructure. Maritime Concessions DFL 340/1960 MINHACIENDA It regulates the maritime concessions granted on national public goods or fiscal goods whose control, supervision and oversight corresponds to the Ministry of National Defense, whatever the use to which the concession is destined and the place where the goods are located. Marine Coastal Spaces of Native Peoples LAW 20.249/2008 MIDEPLAN It establishes that the goods included in the coastal border that are under the supervision and administration of the Ministry of National Defense are susceptible to be declared as marine coastal spaces of native peoples. Mining Concessions LAW 18.097/1982 MINMINERÍA LAWS SECTORAL LEGISLATION ELECTRICAL ENERGY RENEWABLE ENERGY 2 FUELS NUCLEAR ENERGY COMPLEMENTARY SPECIAL LEGISLATION Electrical Services DFL 4/20.018/2007 MINECON FUNDAMENTAL RIGHTS The Article 19 N° 24 establishes that the State has the absolute, exclusive, inalienable and indefeasible dominion of all mines, including the salt mines and the deposits of coal and hydrocarbons and other fossil substances, notwithstanding the property of the persons on the lands in whose entrails they were located. National Energy Policy DS 148/2016 MINENERGÍA The Chilean Energy Policy - Energy 2050 built through a participatory process, proposes a vision of the energy sector by 2050 that corresponds to a reliable, sustainable, inclusive and competitive sector; in order to move towards a sustainable energy in all its dimensions. To achieve this vision, the policy defines plans of action and goals for two horizons: 2035 and 2050. The long-term energy policy will be updated in a participatory manner every 5 years. Washington Convention DS 531/1967 MINREL Also known as the Convention for the Protection of Flora and Fauna and the Scenic Beauties of America. Its objective is to protect all species and genres of the flora and fauna of the Americas from extinction and to preserve areas of extraordinary beauty. Among other matters, it establishes conditions for activities carried out in areas with some degree of official protection. Ramsar Convention DS 771/1981 MINREL Convention on Wetlands of International Importance, especially as Waterfowl Habitat. Its objective is to ensure the conservation of wetlands and their flora and fauna through long-range national policies combined with coordinated international action to the activities carried out in these areas. Indigenous and Tribal Peoples Convention 169 OIT DS 236/2008 MINREL It refers to the human rights and civil liberties of indigenous and tribal peoples and their right to land and territory, health and education; it establishes the protection of the social, cultural, religious and spiritual values and practices proper to indigenous peoples; and, among other matters, establishes the obligation to consult indigenous communities on legislative and administrative measures that may directly affect them. Paris Agreement DS 30/2017 MINREL It has its origin in the United Nations Framework Convention on Climate Change that estab- lishes measures for the reduction of emissions of greenhouse gases (GHG) through the mitigation, adaptation and resilience of ecosystems for the purposes of global warming. It will be applicable as of the year 2020, when the Kyoto Protocol expires. Chile committed to meet goals to reduce the increase in the intensity of GHG emissions per GDP, as established in the National Determined Contribution (NDC) of Chile. MINISTRY OF ENERGY The MINENERGÍA is the highest collaborative body of the President of the Republic in the tasks of government and administration of the energy sector. Its main functions are: to prepare and coordinate plans, policies and standards for the proper functioning and development of the energy sector, to ensure its compliance and give advise to the Government on all matters related to the energy sector, considering all types of primary and secondary energy source. It was created by Law N° 20.402 of 2009 that modifies Decree Law N º 2.244/1978. NATIONAL COMMISION OF ENERGY The CNE is a decentralized public institution with its own capital and full capacity to acquire and exercise rights and contract obligations, whose communications with the President of the Republic are channeled through the MINENERGÍA. It is responsible for analyzing prices, tariffs and technical standards to which the production, generation, transport and distribution of energy companies must adhere. All of the above, to provide a sufficient and safe service, compatible with the most economical operation. It was created by Law N° 20.402 of 2009 that modifies Decree Law N º 2.244/1978. SUPERINTENDENCY OF ELECTRICITY AND FUEL The SEC is a functionally decentralized service, whose purpose is to supervise compliance with legal and regulatory norms as well as technical standards on the generation, production, storage, transportation and distribution of fuels, gas and electricity; services provided with current regulations and without danger to people or things. It was created by Law N° 18.410 of 1985. NATIONAL OIL COMPANY ENAP is a company owned by the State of Chile, with legal capacity and its own assets, which relates to the President of the Republic through the MINENERGÍA. Its main purpose is the exploration, production, refining and commercialization of hydrocarbons and their derivatives. In addition, ENAP may participate in companies that develop activities related to the generation of power and exploration and exploitation of geothermal energy. It was created by Decree with Force of Law N° 1 of 1987. NATIONAL COMMISSION OF NUCLEAR ENERGY It is an organism of autonomous administration of the State, which relates with the Government through the MINENERGÍA. Its functions, among others, include addressing issues related to the peaceful uses of atomic energy; to regulate, supervise and control relevant nuclear and radioactive facilities throughout the country; and to advise the Government on matters related to nuclear energy. It is the only entity empowered to conclude legal acts related to lithium. It represents the State of Chile in matters regarding the exploitation of grantable substances that are accompanied by lithium, being able to request their separation. It was created by Law N° 16.319 of 1965. NATIONAL ELECTRICAL COORDINATOR The Coordinator is a technical and independent organism, in charge of the coordination of operation of the interconnected facilities of the SEN that operate interconnected among themselves. It was incorporated in the LGSE by means of Law N° 20.936 of 2016. PANEL OF EXPERTS The Panel of Experts is an autonomous collegiate organism whose function is to solve the discrepancies and conflicts that arise as a result of the application of electrical and gas legislation. It was incorporated in the LGSE by means of Law N° 19.940 of 2004. ENERGY SUSTAINTABILITY AGENCY The Energy Sustainability Agency (ex AChEE) is a non-profit, private-law legal entity whose purpose, among other matters, is to promote, strengthen and consolidate the efficient use of energy on a national and international level. It also seeks to implement public-private initia- tives in the different sectors of energy consumption, contributing to the competitive and sustainable development of the country. It was created in 2010, by virtue of Decree Law N° 2.244 of 1978. POLITICAL CONSTITUTION ENERGY INSTITUTIONALITY ENERGY POLICY INTERNATIONAL TREATIES REGULATORY OVERVIEW OF THE CHILEAN ENERGY SECTOR 1

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Page 1: REGULATORY OVERVIEW OF THE CHILEAN ENERGY SECTOR1 · 2019-06-28 · The aforementioned, whether or not they are public service concessionaires. Network Gas Service DS 67/2004 MINECON

1 This overview only includes the most relevant Chilean regulations, applica-ble to each of the areas of the Energy Sector. It therefore, does not repre-sent the totality of Chilean regulation. The map shows current regulations as of May 27th, 2019. The dates associated with each law are those of its publication date and those of each regulation are those of its �rst publication in the O�cial Gazette, notwithstanding that its texts include subsequent modi�cations. Some abbreviations are with their original name in Spanish.

2 The regulatory framework of the electricity sector applies entirely to non-conventional renewable and renewable energies.

MINISTRIES ABBREVIATIONS:MIDEPLAN Ministry of Planning and CoordinationMINECON Ministry of Economy, Development

and ReconstructionMINENERGÍA Ministry of EnergyMINHACIENDA Ministry of FinanceMININTERIOR Ministry of InteriorMINJUSTICIA Ministry of Justice

MINMINERÍA Ministry of MiningMINREL Ministry of Foreign A�airsMINSEGPRES Ministry General Secretary of the PresidencyMMA Ministry of EnvironmentMTT Ministry of TransportationMTyC Ministry of Land and Colonization

OTHER ABBREVIATIONS:CNE National Commission of EnergyDFL Decree with Force of LawDS Supreme DecreeENAP National Oil CompanyLGSE General Law of Electrical ServicesLNG Lique�ed Natural GasLP Liquid Petroleum

LPG Lique�ed Petroleum GasNCRE Non Conventional Renewable EnergyPMG Small GenerationPMGD Small Distributed GenerationSEC Superintendence of Electricity and FuelsSEN National Electrical System Regulations with associated

technical standards

http://www.minenergia.cl/mercadoernc/

G E N E R A T I O N

MEDIUM SYS TEMS

O T H E R M A T T E R S

COORDINATION ANDOPERATION OF THE SEN

T R A N S M I S S I O N D I S T R I B U T I O N S E C U R I T Y

RENEWA BLE ENERGY 2 F U E L S E C T O R ENERGY E FFICIENCYE L E C T R I C I T Y S E C T O R

It establishes an optative energy price stabilization mechanism for proprietors of generation means whose capacity surplus does not exceed 9 MW; as well as the procedure for obtaining the authorization, operation and coordination of those generation means when they connect to electric lines from a distribution concessionaire, or facilities of a company with distribution lines that use national goods of public use.

Small Distributed GenerationDS 244/2006 MINECON

It regulates the procedure applicable to long-term energy planning in order to determine the scenarios for the transmission system planning, subject to the provisions of the LGSE.

Long-Term Energy Planning DS 134/2017 MINENERGÍA

It regulates all those matters of the LGSE that are not entrusted to a special regulation. Currently those standards regarding concessions and electricity easements; security and quality of the electricity supply provided by electricity distribution companies; determination of the distribution component of the tari�s applicable to regulated customers, among others, remain valid.

Concessions and DistributionDS 327/1998 MINMINERÍA

It establishes complementary standards for implementing Law Nº 20.365, that establishes a �scal credit for building companies installing Thermal Solar Systems intended for warming sanitary water in new residences before 2020.

It also details the minimum requirements Thermal Solar Systems must meet, their installation and mandatory maintenance, as well as other matters entrusted by the law.

Tax Exemption of Thermal Solar SystemsDS 331/2010 MINENERGÍA

It establishes the procedure according to which the minimum standards of energy e�ciency will be established, and the standards of application that products, machines, instruments, equipment, devices and materials that use any type of energy resource must comply with, for their commercialization in the country.

Procedure to set EnergyEfficiency Standards

DS 97/2012 MINENERGÍA

It establishes the energy consumption labeling system for motorized vehicles, light and medium, that use diesel or gasoline as fuel; those driven exclusively by electric power; or the so-called "hybrids".

Energy Consumption Labelingfor Motorized Vehicles

DS 61/2012 MINENERGÍA

It establishes the minimum requirements applicable to the design, construction, commissioning, operation, maintenance and any other action necessary for the correct construction and operation of public lighting for the illumination of vehicular tra�c routes, in order to satisfy the basic, necessary conditions and e�cient for the illumination of roads.

Public Lighting of Vehicular Traffic RoutesDS 2/2015 MINENERGÍA

It establishes the requirements that must be ful�lled by facilities where electrical energy and heat are generated in a single process of high energy e�ciency, to be considered as "e�cient cogeneration" for the purposes of the LGSE.

Efficient Cogeneration FacilitiesDS 6/2015 MINENERGÍA

It establishes the minimum requirements applicable to any action necessary for the correct construction and operation of public lighting destined for roads for pedestrian tra�c; sidewalks squares, parks, gardens, open areas, pedestrian areas, playgrounds and exercise machines, and pedestrian crossings under the road and footbridges.

Public Lighting of Pedestrian Transit AreasDS 51/2015 MINENERGÍA

It establishes the procedure according to which the characteristics of the energy consumption labels that products, machines, instruments, equipment, appliances, devices and electrical, gas and liquid fuels materials or that use any type of energy resource will have to be determined for marketing in the country; as well as the other standards necessary for its application.

Procedure to Elaborate Technical Specificationsof Energy Consumption Labels

DS 64/2014 MINENERGÍA

It establishes the minimum safety requirements that liquid petroleum and biofuel (LP) fuels installations must ful�ll, and the operations associated with the production, re�ning, transport, storage, distribution and supply of LP that are carried out in such facilities, as well as the obligations of natural and legal persons involved in such operations. The latter, in order to develop such activities in a safe manner, controlling the risk in such a way that it does not constitute a danger to people and/or things. It will not be applicable to facilities in oil production �elds, direct aircraft supply or LP maritime transport.

Security of Facilities and Production, Refining, Transportation,Storage, Distribution and Supply of Liquid Fuels

DS 160/2009 MINECON

It establishes the minimum safety requirements that must be met by gas transmission and distribution networks, new and in use ("gas networks"), with respect to their design, construction, operation, maintenance, repair, modi�cation and inspection and In addition, the obligations of natural and legal persons involved in these facilities are established. The latter, in order to develop such activities in a safe manner, controlling the risk in such a way that it does not constitute a danger to people and /or things.

Security for the Transportation and Distribution of Gas NetworkDS 280/2010 MINECON

It establishes the minimum safety requirements that the transport units of LNG must meet in the stages of design, manufacture, commissioning, operation, maintenance, inspection and de�nitive end of operations, as well as the obligations of the natural and legal persons that intervene in them. The latter, in order to develop such activities in a safe manner, controlling the risk in such a way that it does not constitute a danger to people and /or things.

Safety for the Transportation of Liquefied Natural Gas DS 102/2014 MINENERGÍA

It establishes the minimum safety requirements that LPG facilities must meet, in the stages of design, construction, operation, maintenance, inspection and de�nitive end of operations, in which storage, packaging, transport, transfer, and distribution activities will be carried out. It also regulates the supply of LPG, as well as the obligations of natural and legal persons involved in said activities. The latter, in order to develop such activities in a safe manner, controlling the risk in such a way that it does not constitute a danger to people and /or things.

Safety for Storage, Transportation andDistribution of Liquefied Petroleum Gas

DS 108/2014 MINENERGÍA

It establishes minimum safety requirements for the design, construction, operation, maintenance, inspection and de�nitive termination of LNG Plant operations, in which Natural Gas liquefaction is performed or LNG is received, stored, transferred or regasi�ed. It also establishes the obligations of natural and legal persons involved in these activities.

Safety of Liquefied Natural Gas PlantsDS 67/2012 MINENERGÍA

It establishes technical, quality and control procedure standards applicable to fuels derived from petroleum, natural gas, lique�ed gas and piped gas, and that appear in the Nomenclature of the Council of Customs Cooperation of Brussels, adapted to the Andean Area, in the Chapter 27 of the Customs Tari�.

Technical, Quality and Control Standards ofRaw Oil and other Derived Fuels

DS 132/1979 MINMINERÍA

It regulates the procedure for the granting of Concessions for the Public Service of Network Gas Distribution and of Network Gas Transportation, the Requests for such Concessions, Operating Conditions; and the Expiration of Concessions before entering into exploitation.

Concessions for the Distribution and Transportation of GasDS 263/1995 MINECON

It establishes dispositions that are applicable to the companies that distribute or supply network gas to the facilities of said companies, to those of the clients or consumers when these are necessary to carry out the supply, and to the relations of the distributing or supplying companies with the State and with the individuals. The aforementioned, whether or not they are public service concessionaires.

Network Gas ServiceDS 67/2004 MINECON

It authorizes the use of lique�ed petroleum gas (LPG) as fuel for motor vehicles, provided that the system that allows the use of said fuel complies with the safety requirements established in Standard NCh 2102 Of. 87.

Use of LPG as a Fuel for Motorized VehiclesDS 52/1987 MTT

It establishes gasoline quality speci�cations for spark ignition engines, Kerosene and Diesel Oil Grade B.

Specifications of the Quality of FuelsDS 60/2012 MINENERGÍA

It regulates the procedure and granting of geothermal energy exploration and exploitation concessions, as well as the control and compliance with the obligations derived from the concession, whether it is granted to explore or to exploit.

Geothermal Energy ConcessionsDS 114/2013 MINENERGÍA

It establishes minimum safety requirements that biogas facilities must comply with in the design, construction, operation, maintenance, inspection and de�nitive conclusion of operations, in which any of the stages associated with generation or consumption of biogas is carried out.

Safety of Biogas FacilitiesDS 119/2017 MINENERGÍA

It contains quality de�nitions and speci�cations for the production, import, transport, storage, distribution and commercialization of bioethanol and biodiesel.

Quality Specifications for BiofuelsDS 11/2008 MINECON

It regulates the obligations and procedures for identifying taxpayers who are obliged to pay the tax over emissions to the atmosphere of particulate material, Nitrogen Oxides, Sulfur Dioxide and Carbon Dioxide produced by facilities with boilers or turbines that, individually or as a group, have a thermal capacity greater than or equal to 50 MW, considering the maximum limit of the energetic value of fuel established in the Income Tax Law. It also establishes the administrative procedures required for its correct implementation.

Procedure for Appliying a Tax OverAtmosphere Contaminating Emissions

DS 18/2016 MMA

It seeks to control the emission to the air of Particulate Material (PM), Nitrogen Oxides (NOx), Sulfur Dioxide (SO2) and Mercury (Hg), aiming to prevent and protect people’s health and the environment. This regulation is mandatory throughout the Chilean territory.

Emission of Atmosphere Contaminantsfor Thermal Power Plants

DS 13/2011 MMA

It regulates the determination of prices for services di�erent from the electricity supply provided by distribution concessionaires as ancillary services, such as: leasing, installation; modi�cation or reprogramming of electricity consumption measuring devices; installation, removal or capacity enlargement of electric connections; or review of electric projects.

Price Detemination for Ancillary ServicesDS 341/2008 MINECON

It establishes the applicable rules for determining the energy and capacity prices that will be transferred from the concessionaires of the public service of distribution to their clients subjected to tari� regulation.

Base Price DeterminationDS 86/2013 MINENERGÍA

It establishes the provisions applicable to bidding procedures for the supply of electrical energy, which have the purpose of making the public services concessionaires put in place energy supply agreements to supply the consumption of regulated customers located in their concession area with electrical systems of installed capacity greater than 200 MW.

Energy Tender for Regulated CustomerDS 106/2016 MINENERGÍA

It establishes the requirements and procedures to be met by distribution companies, installers and regulated customer of the distribution companies that have NCRE generation equipment or e�cient cogeneration facilities for self-consumption, for them to be able to use their right to inject their energy into the distribution network, and have this injection economically valued and discounted from their energy bill.

This standard aims at establishing the minimum security conditions to be met by low-voltage consumption electrical facilities to safeguard people who operate or use them and preserve the environment where they have been built.

Distributed Generation (Netbilling)DS 71/2014 MINENERGÍA

Technical Standard for Low-Voltage Consumption FacilitiesDS 115/2004 MINECON

It establishes the procedure applicable to the determination of alternative and preliminary corridors for those new transmission projects that may require it and the determination of the �nal layouts, security corridors and the constitution of electrical easements in case of determining corridors.

Determination of Preliminary Corridors forNew Transmission Projects

DS 139/2017 MINENERGÍA

It complements the LGSE regarding the obligations of the Coordinator, as well as the plani�cation and programming of the operation.

Coordination of the Operation DS 291/2008 MINECON

It establishes the provisions applicable to the organisation, composition and operation of the Coordinator. It also regulates all the necessary matters for the Coordinator to exercise its duties and powers according to the provisions of the LGSE and other applicable regulations.

Independent Coordinator of the SENDS 52/2018 MINENERGÍA

Ancillary Services are those services that allow the coordination of the operation of the National Electric System. The Coordinator, through the Ancillary Services, must preserve the security of the service and guarantee the most economical and quality operation for the electric system.

Ancillary ServicesDS 113/2019 MINENERGÍA

It regulates, among others, the circumstances under which a Supply Security Plan is required to the Coordinator. The plan will be a set of measures to be ful�lled by the Coordinator, aiming at ensuring the supply of the relevant electrical system and the prevention of de�cit situations or reducing to a minimum level the risk of them within a given period of time. The plan shall also take into consideration, where applicable, a proper handling of the hydrological resources of a system and/or the optimal use of the available consumables for thermal plants.

Supply Security Plans RequirementsDS 97/2008 MINECON

It establishes the requirements, terms and procedures for energy export and import applications and other electrical services, from and to the electrical systems located within the national territory.

International Exchanges of Electrical ServicesDS 142/2017 MINENERGÍA

It regulates the transfers of capacity between generation companies, which are determined from the generation capacity that is compatible with the su�ciency and with the existing peak demand engagements.

Capacity Transfers betweenGeneration Companies

DS 62/2006 MINECON

It regulates the compensations that coordinated electricity companies must pay in case of unavailability of the electricity supply.

Determination and Payment ofCompensations for Unavailability

DS 31/2017 MINENERGÍA

It regulates the treatment for pumping facilities without hydric variability as electricity storage systems coordinated by the Coordinator, as well as their technical characteristics.

Hydraulic Pump StationsWithout Hydric Variability

DS 128/2016 MINENERGÍA

It establishes the provisions applicable to electrical systems which installed generation capacity is between 1.5 MW and 200 MW, named Medium Systems.

Medium Systems Operationand Management

DS 23/2015 MINENERGÍA

It establishes the conditions and requirements for current installations in Medium Systems to qualify as generation facilities or transmission facilities and makes provision for the cost and demand calculation methodology.

Recovery and Expansion of Medium SystemsDS 229/2005 MINECON

It regulates the integration, operation, �nancing and faculties of the Expert Panel, as well as the procedures and other matters necessary for the proper exercise of their duties.

Regulation of the Expert PanelDS 44/2018 MINENERGÍA

It regulates the procedure for elaboration and amending technical standards governing technical matters related to security, coordination, quality, information and economic performance of the electrical sector. These standards are enacted by the CNE.

Procedure for Issuing Technical Standardson the Electrical Sector

DS 11/2017 MINENERGÍA

It regulates the procedure for determining other means for the generation of NCRE, which use renewable energies for the production of electricity and diversify supply sources.

Procedure for determining other Means for theGeneration of Non-Conventional

Renewable EnergiesDS 20/2015 MINENERGÍA It establishes the minimum security requirements

to be met by electrical facilities devoted to the production, transportation, provision of ancillary services, storage and distribution systems of electrical energy. It also establishes the obligations of natural and legal persons that participate in these activities to develop them in a safe manner.

Security of Electrical FacilitiesDS 109/2018 MINENERGÍA

It establishes the conditions and characteristics of the annual public tender processes for the provision of energy blocks from NCRE means and the applicable rules to materialize and operate the awarded projects.

Tenders for the Provision of AnnualEnergy Blocks with NCRE

DS 29/2014 MINENERGÍA

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It regulates the substances that are susceptible to mining concession and those whose are not. Non-concessible substances include, among others, liquid or gaseous hydrocarbons, lithium, deposits of any kind existing in maritime waters subject to national jurisdiction and reservoirs of any kind located, in whole or in part, in areas that according to the law, may be determined as important for national security with mining e�ects.

As required by the national interest, the lithium extracted and concentrates, derivatives and compounds thereof, may not be subject to any legal act except when they are executed or concluded by the Chilean Nuclear Energy Commission or with its prior authorization.

It regulates the following markets, in matters such as:

· Generation: Concessions, a system of annual quotas of injection of NCRE to the SEN, PMG and PMGD,rationing.

· Transmission: Concessions, open access, tenders,expansion, valuation and remuneration oftransmission, interconnections.

· Distribution: Concessions, open access, energytenders for the supply of regulated customers, theprice regime according to the type of customers and size of the electricity system, fare equity, distributedgeneration.

· Coordination and operation of the SEN and theelectricity market: Security, operation andeconomic transfers, public information, international exchanges, ancillary services.

· Medium Systems: Those electrical systems whoseinstalled generation capacity is greater than 1.5 MWand less than 200 MW.

Geothermal Energy ConcessionsLAW 19.657/2000 MINMINERÍA

It establishes that geothermal energy is a state own good, capable of being explored and exploited, after granting a concession, and it de�nes the rules for the granting of exploration and exploitation concessions.

Among other matters, it regulates the relationships between the geothermal energy concessionaires, the State, the owners of the surface land and the holders of rights over other natural resources; as well as the obligations that concessionaires must respect and the sanctions applicable in case of non-compliance.

Tax Exemption for Solar Thermal SystemsLAW 20.365/2009 MINHACIENDA

It establishes a transitory bene�t for construction companies, through which they can deduct from their income tax payment a tax credit equivalent to all or part of the value of the Solar Thermal Systems destined for the heating of sanitary water, which are installed in new homes built until 2020.

Registry of Owners of Fuel FacilitiesDFL 1/1979 MINMINERÍA

It establishes a registry where the owners of facilities that serve for the production, import, re�ning, transport, distribution, storage, supply, regasi�cation or that commercialize fuel derived from petroleum, liquid biofuels, combustible lique�ed gases and all combustible gas, must register natural gas, gas network and biogas. This record is carriedout by the SEC.

Gas ServicesDFL 323/1931 MININTERIOR

It regulates the transport, the gas distribution of the network; the marketing of gas; the system of gas network concessions and tari�s; the role of the State regarding these matters; and the criminal and infraction provisions.

Fuel Price Stabilization MechanismLAW 20.765/2014 MINHACIENDA

It regulates the stabilization of domestic sales prices of fuels, such as automotive gasoline, diesel oil, compressed natural gas and lique�ed gas. This regulation is achieved through increases and reductions in the speci�c taxes established by the fuel tax law.

Nuclear Safety and SecurityLAW 18.302/1984 MINMINERÍA

It regulates activities related to the peaceful uses of nuclear energy and nuclear substances and radioactive materials. It establishes measures to prevent the misappropriation and illicit use of nuclear energy, substances and facilities.

Water Regulation CodeDFL 1122/1981 MINJUSTICIA

It regulates the right to use the water that is destined to the production of electrical energy. Likewise, it regulates hydroelectric plants that are governed by the provisions of the LGSE.

Income TaxDL 824/1974 MINHACIENDA

It establishes, among other provisions, an annual tax for �scal bene�t that taxes air emissions of particulate matter, oxides of nitrogen, sulfur dioxide and carbon dioxide, produced by �xed sources that add a power greater than or equal to 50 MW thermal.

Incentives for Economic Development in Extreme ZonesLAW 19.606/1999 MININTERIOR

It grants a tax credit in favor of all those First Category taxpayers that invest in the extreme zones of the country, destined to the production of goods or provision of services in said zones.

Incentives for Economic Developmentin Arica and Parinacota

LAW 19.420/1995 MINHACIENDA

It grants a tax credit in favor of all those First Category taxpayers that invest in the provinces of Arica and Parinacota, destined to the production of goods or provision of services in said zones.

General Basis of the EnvironmentLAW 19.300/1994 MINSEGPRES

It regulates the right to live in a pollution-free environment, the protec-tion of the environment, the preservation of nature and the conservation of environmental heritage.

Among other matters, it establishes: · Procedures to dictate quality standards and emission of pollutants.· The Environmental Evaluation System of investment projects.· The responsibility for environmental damage.· The Ministry of Environment.· The Council of Ministers for Sustainability.· The Environmental Evaluation Service.· The Superintendence of the Environment.

Acquisition, Administrationand Disposition of State Goods

DL 1.939/1977 MTyC

It establishes that State assets may be subject to destinations, concessions of use, a�ectations and leases. In particular, it states, among others, that the general provisions for sale, lease and use through concessions of �scal lands for the installation of energy generation and transmission infrastructure.

Maritime ConcessionsDFL 340/1960 MINHACIENDA

It regulates the maritime concessions granted on national public goods or �scal goods whose control, supervision and oversight corresponds to theMinistry of National Defense, whatever the use to which the concession isdestined and the place where the goods are located.

Marine Coastal Spaces of Native PeoplesLAW 20.249/2008 MIDEPLAN

It establishes that the goods included in the coastal border that are under the supervision and administration of the Ministry of National Defense are susceptible to be declared as marine coastal spaces of native peoples.

Mining ConcessionsLAW 18.097/1982 MINMINERÍA

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Electrical ServicesDFL 4/20.018/2007 MINECON

FUNDAMENTAL RIG HTS

The Article 19 N° 24 establishes that the State has the absolute, exclusive, inalienable and indefeasible dominion of all mines, including the salt mines and the deposits of coal and hydrocarbons and other fossil substances, notwithstanding the property of the persons on the lands in whose entrails they were located.

National Energy PolicyDS 148/2016 MINENERGÍA

The Chilean Energy Policy - Energy 2050 built through a participatory process, proposes a vision of the energy sector by 2050 that corresponds to a reliable, sustainable, inclusive and competitive sector; in order to move towards a sustainable energy in all its dimensions. To achieve this vision, the policy de�nes plans of action and goals for two horizons: 2035 and 2050. The long-term energy policy will be updated in a participatory manner every 5 years.

Washington ConventionDS 531/1967 MINREL

Also known as the Convention for the Protection of Flora and Fauna and the Scenic Beauties of America. Its objective is to protect all species and genres of the �ora and fauna of the Americas from extinction and to preserve areas of extraordinary beauty. Among other matters, it establishes conditions for activities carried out in areas with some degree of o�cial protection.

Ramsar ConventionDS 771/1981 MINREL

Convention on Wetlands of International Importance, especially as Waterfowl Habitat. Its objective is to ensure the conservation of wetlands and their �ora and fauna through long-range national policies combined with coordinated international action to the activities carried out in these areas.

Indigenous and Tribal Peoples Convention 169 OITDS 236/2008 MINREL

It refers to the human rights and civil liberties of indigenous and tribal peoples and their right to land and territory, health and education; it establishes the protection of the social, cultural, religious and spiritual values and practices proper to indigenous peoples; and, among other matters, establishes the obligation to consult indigenous communities on legislative and administrative measures that may directly a�ect them.

Paris AgreementDS 30/2017 MINREL

It has its origin in the United Nations Framework Convention on Climate Change that estab-lishes measures for the reduction of emissions of greenhouse gases (GHG) through the mitigation, adaptation and resilience of ecosystems for the purposes of global warming. It will be applicable as of the year 2020, when the Kyoto Protocol expires. Chile committed to meet goals to reduce the increase in the intensity of GHG emissions per GDP, as established in the National Determined Contribution (NDC) of Chile.

MINISTRY OF ENERGY

The MINENERGÍA is the highest collaborative body of the President of the Republic in the tasks of government and administration of the energy sector. Its main functions are: to prepare and coordinate plans, policies and standards for the proper functioning and development of the energy sector, to ensure its compliance and give advise to the Government on all matters related to the energy sector, considering all types of primary and secondary energy source.It was created by Law N° 20.402 of 2009 that modi�es Decree Law Nº 2.244/1978.

NATIONAL COMMISION OF ENERGY

The CNE is a decentralized public institution with its own capital and full capacity to acquire and exercise rights and contract obligations, whose communications with the President of the Republic are channeled through the MINENERGÍA. It is responsible for analyzing prices, tari�s and technical standards to which the production, generation, transport and distribution of energy companies must adhere. All of the above, to provide a su�cient and safe service, compatible with the most economical operation.It was created by Law N° 20.402 of 2009 that modi�es Decree Law Nº 2.244/1978.

SUPERINTENDENCY OF ELECTRICITY AND FUEL

The SEC is a functionally decentralized service, whose purpose is to supervise compliance with legal and regulatory norms as well as technical standards on the generation, production, storage, transportation and distribution of fuels, gas and electricity; services provided with current regulations and without danger to people or things.It was created by Law N° 18.410 of 1985.

NATIONAL OIL COMPANY

ENAP is a company owned by the State of Chile, with legal capacity and its own assets, which relates to the President of the Republic through the MINENERGÍA. Its main purpose is the exploration, production, re�ning and commercialization of hydrocarbons and their derivatives. In addition, ENAP may participate in companies that develop activities related to the generation of power and exploration and exploitation of geothermal energy. It was created by Decree with Force of Law N° 1 of 1987.

NATIONAL COMMISSION OF NUCLEAR ENERGY

It is an organism of autonomous administration of the State, which relates with the Government through the MINENERGÍA. Its functions, among others, include addressing issues related to the peaceful uses of atomic energy; to regulate, supervise and control relevant nuclear and radioactive facilities throughout the country; and to advise the Government on matters related to nuclear energy.It is the only entity empowered to conclude legal acts related to lithium. It represents the State of Chile in matters regarding the exploitation of grantable substances that are accompanied by lithium, being able to request their separation.It was created by Law N° 16.319 of 1965.

NATIONAL ELECTRICAL COORDINATOR

The Coordinator is a technical and independent organism, in charge of the coordination of operation of the interconnected facilities of the SEN that operate interconnected among themselves.It was incorporated in the LGSE by means of Law N° 20.936 of 2016.

PANEL OF EXPERTS

The Panel of Experts is an autonomous collegiate organism whose function is to solve the discrepancies and con�icts that arise as a result of the application of electrical and gas legislation.It was incorporated in the LGSE by means of Law N° 19.940 of 2004.

ENERGY SUSTAINTABILITY AGENCY

The Energy Sustainability Agency (ex AChEE) is a non-pro�t, private-law legal entity whose purpose, among other matters, is to promote, strengthen and consolidate the e�cient use of energy on a national and international level. It also seeks to implement public-private initia-tives in the di�erent sectors of energy consumption, contributing to the competitive and sustainable development of the country. It was created in 2010, by virtue of Decree Law N° 2.244 of 1978.

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REGULATORY OVERVIEW OF THE CH ILEAN ENERGY SECTOR 1