Starting in January 2026, thousands of Chilean consumers will be able to opt for more competitive electricity contracts, leaving the regulated segment and accessing the free energy market. This will be possible thanks to the reduction of the connected power threshold from 500 kW to 300 kW, a measure promoted by the industry for more than two years and implemented in early 2025. "The market will open up to between 3,000 and 3,500 small and medium-sized enterprises, although the transition will not be immediate."
“The progression will be similar to when the limit was reduced to 500 kV, when in the first year it was 10-15% of the total, then 20-25% in the second year, and so on for the following three years,” stated Eduardo Andrade , executive secretary of the Chilean Association of Energy Retailers (ACEN) . Most of those initial contracts were for four years and proved successful: “Practically none returned to the regulated segment; they are very few and far between,” the executive emphasized in an interview with Energía Estratégica . And for this new group of users operating between 300 and 500 kV , four-year contracts are expected to remain the standard , allowing them to meet the minimum commitment requirements while also providing flexibility.
But over time, a trend toward longer-term agreements is projected, in order to achieve more attractive and competitive prices. "What prices can be expected? Prices will be close to $60-70 per MWh (as seen in other parts of the Southern Cone), although it will depend on the energy volume, contract terms, location, consumption times, and other variables," explained Andrade. The new regulatory landscape coincides with a context of electricity oversupply in the country, stemming from weaker-than-historical demand growth.
Whereas previously consumption grew one or two points above GDP, today it grows at the same level or even below. “We have three times the supply of peak demand ,” the specialist warned, adding that this is further enhanced by the incorporation of storage technologies that allow consumption to be shifted from off-peak hours to peak hours. This creates opportunities for retailers, as they have an advantage and can capture the lowest price and pass it on to end customers. And while the implementation of the new 300 kV threshold will begin to take shape next year, ACEN is not resting on its laurels and is already planning to move towards a new objective : enabling access to the free market for consumers with as little as 100 kW of connected power, with the focus on allowing customers to choose their suppliers. Distribution at the heart of the upcoming reform. With the change of government in 2026 approaching ( José Antonio Kast was elected president via runoff ), the electricity sector hopes that a pending agenda will be resumed: the reform of the distribution system . ACEN emphasizes that there are three key aspects that must be reviewed to avoid distortions and guarantee the system's sustainability. The first has to Regarding tariff management in a distributed generation context: "If the current model isn't modified, those with more resources will install panels and batteries in their homes, and those who pay more for the grid will be those with fewer resources, which would ultimately raise the cost for the most vulnerable sectors." The second focus is on service quality , an aspect that, according to the executive, requires a thorough review of the regulatory framework to ensure adequate standards.
Therefore, a comprehensive reform of the tariff system appears as an indispensable condition to adapt to the new reality of the Chilean electricity market.