Chile's Superintendency of Electricity and Fuels (SEC) ordered the National Electric Coordinator to suspend the processing of the internal procedure called "Diesel Fuel Availability Uncertainty Factor" , following a presentation made by the Independent Energy Generators Association (GIE).
The measure is provisional and does not imply that the SEC has already determined that the Coordinator exceeded its authority. For now, the agency seeks to prevent the methodology from producing technical or economic effects before it has all the necessary background information to resolve the complaint.
The conflict revolves around whether a matter of this scope can be defined through an internal procedure of the Coordinator or whether, due to its regulatory effects, it should be addressed through a Technical Standard within the current institutional framework.
GIE argues that the instrument introduces technical and economic criteria that affect fuel availability, Limited Power, availability indicators, Initial Power and Power Sufficiency of generating units.
On that basis, the union requested that the procedure be rendered ineffective and, while the merits are analyzed, that its processing, publication and implementation be suspended.
The SEC granted that request on a provisional basis.
Specifically, he instructed the Coordinator to refrain from approving or publishing a final version of the procedure and from ordering its entry into force or initiating its application with respect to the coordinated entities.
It also prohibited him from using the methodology or its results to determine fuel availability, Limited Power, availability indicators, Initial Power, Sufficiency Power, or economic transfers.
The tipping point: October 2026
One of the factors that weighed heavily in the SEC's decision is the planned schedule for the first application of the procedure.
The instrument itself stipulated that the calculation of the availability of the main or alternative input would begin from October 2026 , with effects on the average annual availability of this year and on the subsequent determination of the Power Sufficiency.
According to the SEC, this opened the possibility that the procedure could begin to alter economic results before the administrative analysis was completed.
The regulator noted that any approval or implementation during this period could affect fuel availability, Initial Power, Sufficiency Power and the corresponding economic transfers, making it difficult to reverse the situation later if the final resolution were different.
The precautionary measure seeks precisely to avoid that scenario.
GIE valued the decision and stressed that its presentation does not question the technical merit of the measures proposed by the Coordinator nor does it ignore the need to adapt the regulation to the current challenges of the system.
The union argues that the discussion is of an institutional nature and that changes with technical and economic impact should be processed through the instruments and competencies defined by the legislation.
From that perspective, the controversy relates to the delimitation of powers between the different bodies of the Chilean electricity sector and the scope that the Coordinator's internal procedures may have.
The Coordinator will have to respond
Before adopting the provisional measure, the SEC had asked the Coordinator to explain the legal, regulatory and technical grounds that, in his opinion, enable him to develop and implement the procedure.
He also requested information on the processing status of the instrument, the stages completed and pending, and the dates planned for its approval, publication, and application.
The Coordinator requested an extension and the SEC granted him an additional ten business days to submit his full response.
However, the regulator noted that the response presented up to that point did not indicate whether there was a final version of the procedure, its specific state of implementation, or the dates planned for its entry into force.
That lack of information was another argument used to justify the temporary suspension.
The Coordinator may continue to conduct internal analyses, process observations, and prepare background information, provided that these tasks do not involve formally approving, publishing, implementing, or applying the procedure.
Furthermore, it must expressly inform the SEC of the current status of the proceedings, whether there is a final version, the pending stages and the possible technical, operational, administrative and economic effects of the provisional measure.
The discussion, therefore, remains open.
For GIE , safeguarding clear rules and well-defined competencies does not mean opposing the changes the electricity system needs. On the contrary, it allows those changes to be built on solid foundations, providing certainty for all stakeholders and better conditions for investment, competition, and the development of an increasingly diverse electricity industry.