Annual Report 2009 - Isagen

ANNUAL REPORT 2009 / ISAGEN S.A. E.S.P.49Regulation also experienced importantchanges during 2009. The regulatory agendaduring the first quarter was shaped byCREG Resolutions 006 and 015. This regulation,aimed at promoting and preservingfree competition in the Wholesale EnergyMarket, limited access to information of dispatchand bid prices, something that forcedto re-consider strategies for agent’s pricebids and, obviously, did impact marketresults.Through CREG Resolutions 051 and 076,price bids scheme, Ideal Dispatch and therules to determine pool price in the WholesaleEnergy Market were modified during the secondhalf of 2009. This regulation also introducedStart-up and Stop Prices bid for thermalgenerators.years, ISAGEN proactively took part, with proposals and comments, in regulation issued fromcompetent authorities.Another important aspect to mention during 2009 was the high thermal generation registered,especially during the last two quarters. Thermal generation was encouraged mainly by regulationfrom Resolutions 051 and 076 and, later, by low inflows and low water reserves, forcingthermal generation in order to supply energy demand from the national electric system.System demandDomestic demand during 2009 reached 54,679 GWh, an increase of 1.5% compared to lastyear’s. This growth is slightly bigger than 1.4% projected by UPME in its medium scenario ofNovember 2009. During the last two years, demand has decreased significantly in its growthrate, mainly due to the world economic crisis started in 2008, something that produced a significantnegative impact on the country’s economic growth, which, in turn, affected electricitydemand of unregulated customers as a consequence of a lower manufacturing activity. This isdepicted in Chart 5.CHART 4.DOMESTIC DEMAND EVOLUTION IN GWh/YEAR 1995-2009At the beginning of the fourth quarter of 2009,by means of Resolution 18 1654, the Ministryof Mines and Energy declared a natural gasscheduled rationing, in order to find the mostefficient possible way to assign available gasquantities for thermal generation and, in thisway, face the dry season caused by El Niñophenomenon. Upon issuing of this Resolution,a series of CREG (Energy and Gas RegulatoryCommission) and MME (Ministry of Minesand Energy) regulations were producedaimed at facing in the best possible way theclimate phenomenon. It is worth mentioningthat during 2009, as happened in previousDemandGrowthContents Letter from the CEO Achievements2009Good GovernancePractices EvaluationCorporateManagementFinancial Management