Annual Report 2009 - Isagen

ANNUAL REPORT 2009 / ISAGEN S.A. E.S.P.58Charges for taking part in the Wholesale EnergyMarket – MEM (for its Spanish initials)Payments made by ISAGEN during 2009 for taking part in the Market were 5.8% lower thanin 2008.No matter this result, connection charges were 32.6% higher than in 2008, mainly due to alarger amount of energy exported to Venezuela. On the other hand, charges for NationalTransmission System, Regional Transmission System and Local Distribution System usewere significantly lower than those of 2008, due to the lower demand of end-customers anddeflation of Producer Price Index –PPI–, because tariffs are indexed to this indicator.Constraints were 25% lower than those registered last year. It is worth mentioning this resultbecause during the second semester of 2009 a large amount of out-of-merit thermal generationwas required to meet System requirements and keep reservoir levels in order to face El Niñophenomenon. Constraints costs during 2008, on the other hand, were caused by out-of-meritgeneration due to system maintenance, especially in Chivor and San Carlos power plants.TABLE 13.CHARGES FOR TAKING PART IN THE WHOLESALE ENERGY MARKET2009 2008 Difference Growth$Million $Million $Million %STN use 69.409,8 73.234,5 -3.824,7 -5,2STR, SDL use 75.115,4 82.351,2 -7.235,8 -8,8Constraints 17.642,9 23.516,5 -5.873,6 -25,0STN Connection 14.644,1 11.047,5 3.596,6 32,6Administration services 7.497,0 6.304,6 1.192,4 18,9Law 99 contributions 31.318,3 33.193,1 -1.874,8 -5,6FAZNI contributions 10.128,8 10.133,7 -4,9 0,0Total MEM charges 225.756,4 239.781,1 -14.024,7 -5,8Contents Letter from the CEO Achievements2009Good GovernancePractices EvaluationCorporateManagementFinancial Management