Annual Report 2010 - Enel.com

ANEEL resolution also provides for the possibility of an
extension of the concessions beyond the current 20 years
(i.e. until 2021). At the end of the concession period, the
plants will be paid at their residual value (in line with the
provisions of Law 8987 on administrative concessions).
The new remuneration rules will enter force after approval
of the implementing decree by the Ministry for Energy
and Mineral Resources.
On December 28, 2010, the Ministry for Energy and Mineral
Resources published Portaria 1004/2010, asking for
expressions of interest concerning the treatment of interconnection
lines as part of the transmission grid, in the
light of the special conditions applied by ANEEL.
In the meantime, on June 4, 2010, the Acuerdo de Provisión
de Energía Eléctrica between CIEN and CAMMESA,
the Argentine electrical market operator, was signed. The
agreement provides for a monthly payment over nine
months and will expire following definition of the annual
remuneration paid to CIEN by ANEEL.
Social rate
On January 20, 2010, Law 12212 on the social rate was
promulgated. It changes the amount of the discount
granted to low-income residential customers.
The primary changes from the previous rules (Law 10438
of 2002) relate to the eligibility requirements for the social
rate: eligibility will no longer be based solely on monthly
consumption, but will also take customers’ financial situation
into account. Specifically, it requires registration in
the Cadastro Único para Programas Sociais do Governo
Federal (CadÚnico), a register of economically disadvantaged
households maintained by the Ministry for Social
Development and the Fight against Hunger (previously
users with consumption of less than 80 kWh/month were
exempt from this requirement).
The law also introduces slight reductions in discounts
granted to consumers that vary based on monthly consumption:
65% for consumption of less than 30 kWh/
month, 40% for consumption of between 30 and 100
kWh/month and 10% for consumption of between 100
and 200 kWh/month. Low-income households with consumption
in excess 200 kWh/month will not receive any
discount.
In May a public consultation was initiated on a new draft
regulation for the social rate, which requires that registration
of a customer in the Cadastro Único for the purposes
of application of the social rate be approved by ANEEL.
On July 22, 2010, the regulator, ANEEL, approved the
regulation making the Law 12212 operational, including
the definitive criteria to be used to determine customer
eligibility and the amount of the consumption-based discounts.
The distribution companies must publish their lists
of eligible customers within 60 days of approval.
Finally, the law also introduces amendments to the legislation
on energy efficiency (Law 9991/2000). The primary
change made to the law requires that distribution companies
set aside at least 60% of energy efficiency program
resources (currently 0.5% of the companies’ operating income)
for customers benefiting from the social rate.
Rules on climate change
On December 29, 2009, Law 12187/2009 on combating
climate change was published. This law introduces the
Plan Nacional sobre el Cambio Climático (PNMC) and sets
the goal of cutting greenhouse gas emissions by between
36.1% and 38.9% of projections as of 2010 by 2020. The
expected reductions for each industrial segment have not
been determined.
On December 10, 2010, the decree regulating the national
policy for the fight against climate change was published
in the official journal. The decree sets a target for greenhouse
gas reductions of 6% by 2020.
Chile
Update of nodal prices
As from May 2010 the nodal price was updated by the
regulator to $95/MWh, an increase of 1.8% with respect
to its level in October 2009 and an increase of 9% compared
with the price in force after the most recent indexing
adjustment in March 2010. The price was in effect
from May to October 2010.
Subsequently, the regulator CNE published the definitive
nodal price for the period from November 2010 to April
2011. The monomic price will be $112.52/MWh, an increase
of about 8% on the current level.
Auction price pass-through rules
As from January 2010 the reform of the wholesale sourcing
mechanism for electricity to be supplied to customers
in the regulated market entered force (provided for under
Ley Corta II of May 2005). The contracts entered into
at the nodal price set by CNE will be gradually replaced
by 15-year contracts at the price established by auctions
held by the distribution companies starting from 2006.
For the distribution company Chilectra, this occurred
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