National Energy Commission presented proposals for the Short-Term Market

PRESS RELEASE from CNE

This is a machine translation of the original statement issued in Spanish

January 5, 2023

After reviewing the ideas raised by 12 of the 17 public and private participants that the Short-Term Market public-private dialogue table had, the agency published a report with a series of measures to materialize in the short and medium term, for which work will be carried out jointly with the Ministry of Energy.

Within the framework of the public-private dialogue table, which analyzed the current state of the Short-Term Market, the National Energy Commission (CNE) published a report that includes fifteen proposals, and their implementation deadlines, in the areas of the chain of payments in the Short Term Market; electricity supply tenders for regulated customers; and in the generation-storage and operation of the electrical system segment.

The document considered the ideas presented by 12 of the 17 participants of the public-private dialogue table, which analyzed the current state of the Short-Term Market, based on the situation in which supply companies have declared the impossibility of complying with their obligations. of payment of said market.

In this context, the Ministry of Energy and the CNE will also work together to continue analyzing other measures in the context of the Short-Term Market, especially those that require legal modifications.

During the next few days, the CNE will also publish a document with answers to all the observations made by the members of the Dialogue Table.

Main Proposals

Chain of payments in the Short-Term Market

-A proposal will be presented to the Ministry of Energy to modify the Regulation of Coordination and Operation of the National Electric System.

-Request a quarterly report of the reasoned analysis of the disagreements related to payments in the Short-Term Market from the National Electricity Coordinator.

-Implement a new Payment Portal.

Supply tenders for regulated customers

A review of the bidding process bases is proposed to assess the convenience of the following points:

-Incorporation of incentives for storage in the award mechanism of bidding processes.

-Incorporation of location signs in the awarding mechanism of bidding processes.

-Modification of guarantees or fines for non-compliance with contracts.

Generation-storage segment and operation of the electrical system

-Incorporate a methodology to remunerate the contribution of pure Storage Systems to sufficiency. For this, a proposal will be presented to the Ministry of Energy in the context of the new power transfer regulation, under discussion in the corresponding Boards, to incorporate a remuneration mechanism for said systems in the transitory regime.

-Modify the iterative process of programming the operation of storage systems. For this, a proposal will be presented to the Ministry of Energy to modify the Coordination and Operation Regulations.

-Enabling renewable power plants with storage systems so that they can make withdrawals in the system. For this, a proposal will be presented to the Ministry of Energy to modify the Coordination and Operation Regulations.

-Allow the programming of the operation to be closer to the operation in real time. This will be specified through the issuance of the Operation Programming chapter of the Technical Regulation for Coordination and Operation, by the Commission.

Other actions

Additionally, the report indicates that, in matters related to side payments and systemic costs, the National Electricity Coordinator has committed to the publication of a consolidated report of the balances of economic transfers, including the amounts associated with these charges.

Regarding modifications to the transmission planning and pricing process, the report indicates that changes are required to the General Law of Electric Services, for which reason this and other measures are already being analyzed in the context of the Law Project for the Promotion of Energy transition.

The Executive Secretary of the CNE, Marco Antonio Mancilla, highlighted the public-private collaboration to advance on this issue, pointing out the importance of collecting the constructive contributions made by the industry to have good public policies in the energy sector: "Without Without a doubt, proposals were presented that exceeded the scope of the work of the table, several of them related to substantive modifications to the current regulatory scheme, which in any case will continue to be technically evaluated by this Commission in order to make proposals to the ministerial authority in a timely manner.”

"All in all, we believe that the battery of 15 short and medium-term measures that this body is committed to promoting are a first sign that, regardless of particular cases and factors exogenous to the Chilean market such as the rise in fuel costs, State agencies are aware and busy ensuring that the electricity market functions properly within the framework of a regulation that adequately safeguards the public interest,” added the authority.