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Annex 1.2 Regulations

Supreme Decree N° 327 officially entitled “Establishes Regulation of the General Law of Electrical Services” was enacted by the Ministry of Mining in December, 1997. This is an all-embracing regulation that seeks to include all the aspects regulated by LGSE, repealing provisions contained in disperse and partial regulations.

This regulation includes concessions, permits and easements, relationship between owners of electricity installations, customers and authority, as well as interconnection of installations, and installations and electricity equipment. It also includes service quality aspects, prices, fines and sanctions.

Supreme Decree N° 88 with official title “Approves Regulation for Small-Scale Generation Media” was promulgated by the Ministry of Energy in September 2019 and published in October 2020, replacing the S.D. N°244 of 2006. The decree establishes provisions for companies that have generation means whose power surpluses are less than 9 MW (PMG and PMGD).

The regulation includes the following titles: Small Means of Small-Scale Generation (Interconnection procedures, determination and costs of additional works, operation and coordination regime, remuneration and payments, measurement and billing, price stabilization mechanisms), Small Distributed Generation Means (PMGD) (interconnection, energization and commissioning procedure, associated additional costs and its operation and coordination requirements), Small Generation Means (PMG) (its interconnection, energization and commissioning, and its operational and coordination requirements).

Supreme Decree N° 62 officially entitled “Approves Regulation for the Transfer of Capacity between Generation Companies Established in LGSE” was enacted by the Ministry of Economy, Development and Reconstruction in February 1, 2006.

The decree regulates transfers of capacity between companies with generation units synchronized to an electric system, resulting from the coordination of operations established by the LGSE. The chapters of interest are: Definitions, background and information to be used, maximum installed capacity and statistical control, allocation of adequacy power, initial power, preliminary power, definitive power, theoretical reserve margin, balance of injections and withdrawals, demand commitments, physical balance and valued balance.

The regulation was modified by S.D. N°42 of 2020, which introduces modifications that incorporate into the regulation of the electricity sector the State of Strategic Reserve for generating units that begin the withdrawal process of the SEN.

Supreme Decree N° 113 entitled “Approves regulations that establish the provisions applicable to the ancillary services that each electric system must count for the coordination of the operation of the system in the terms referred to in Article 137 of the General Law of Electrical Services” was promulgated on November 28, 2017 and published in March 2019. However, the regulation of ancillary services was implemented after the approval of the report on the definition of the Ancillary Services Program, a fact that occurred on January 19, 2016. This new regulation establishes the way in which the services required by the National Electrical System and the mechanisms for providing and/or installing them will be defined. It also establishes how auctions, tenders and the provision and/or direct installation of the required services will be carried out

Promulgated on August 29, 2012, this decree regulates the prices transferable to the regulated customers of the distribution companies. In order to do this, it defines the short-term node prices and establishes the procedure for calculating it (simulation horizon, demand forecast, fuel prices, and availability of primary inputs of thermal power stations, treatment of hydroelectric plants, failure costs and rationing, in other aspects). It also defines aspects regarding the long-term node price (on the maximum value of bids for supply bids, indexation of long-term node prices, among others).

Supreme Decree N° 114 entitled “Approves new regulations for the application of Law 19.657, on concessions of geothermal energy and repeals S.D. N° 32 of 2004, of the Ministry of Mining” was promulgated on November 15, 2012. This regulation eliminated the lack of legal certainty in obtaining concessions for the exploitation of geothermal energy. Thus, it grants the exclusive right to an exploration concessionaire, to obtain an exploitation concession. In addition, it removes requirements to apply for a geothermal exploration concession and expedites the application process. The regulation was modified by S.D. N°51 of 2021 to advance the digital transformation of information.

Supreme Decree N°57 entitled “Approves the regulation of distributed generation for self-consumption”, promulgated in July 2019 and published in September 2020, replacing the S.D. N ° 71 of 2014. The regulation establishes the provisions for distributed generation destined for self-consumption, in particular the procedure to carry out the connection of generation equipment and the cost of additional works, adjustments and adjustments for the connection, establish the limits to the connection and the injections of the generation equipment that do not require additional works, adjustments or adjustments for the connection, the measurements and valuation of the injections and the transfers of surpluses of non-conventional renewable energies, as well as other matters necessary for the proper development of distributed generation for self-consumption.

Supreme Decree N°125 entitled “Approves the Regulations for the Coordination and Operation of the National Electric System”, promulgated on December 20, 2019, establishes the provisions applicable to the coordination and operation of the National Electric System, as well as the other necessary matters for the proper exercise of the functions of the Independent Coordinator of the National Electric System, and the rights and duties of the entities subject to said coordination.

In addition, it establishes the provisions for the Energy Storage Systems and the provisions for the Coordinator to implement a centralized forecast of renewable generation with variable primary resources.