Enersis PLC project on hold

Monday, March 10, 2003

Chilean power sector holding Enersis (NYSE: ENI) has indefinitely suspended development of a commercial model for power line communication (PLC) technology, pending the publication of commercial guidelines for the service by the government's fair trade regulator FNE and antimonopoly commission CRA, an Enersis source told BNamericas.

"It is very likely that this project will be on hold for years," awaiting the CRA's resolution, he said, explaining that the lack of expectation for a quick resolution owes to the CRA's typically delayed responsiveness.

Local telco Entel requested the guidelines in May 2002, but at that time Enersis was scheduled to continue testing until this month. In March 2002 Chile's electricity and fuels regulator SEC authorized Enersis' distribution subsidiary Chilectra and new services subsidiary CAM to begin testing, which they did through a pilot project in 50 Santiago homes.

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Enersis had accepted the FNE's recommendations it should create a new subsidiary to operate the technology and that the subsidiary should only operate under a carrier of carriers business model.