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CHIP NEWS
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Date: April 27, 1999
Subject: Frei Unveils energy Crisis Plan
Sources: El Mercurio, La Tercera
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FREI UNVEILS ENERGY CRISIS
PLAN
President Eduardo Frei addressed the nation's energy crisis in
a nationally televised speech Monday, calling for an increase
of 500 megawatts in the capacity of the nation's primary
power grid and increased conservation among the public.
The President also blasted power companies as unresponsive
and also proposed public sector representation on CDEC,
the private- sector body that oversees certain energy issues,
as well as other increases in government regulatory power.
He further called for hikes in the maximum fine power
companies face for non-compliance with energy regulations
from the current US$25,000 to US$6.2 million.
Monday's speech came nearly a month after implementation
of programmed power outages in the nation's Central
Interconnected System (SIC) power grid, which serves 85
percent of Chile's population, to confront the crisis. It also
follows an announcement earlier Monday by power
distributor Chilectra that the programmed outages power
users face will be increased from two to three hours a day.
Frei didn't say how increasing the capacity of the SIC by
500 megawatts - about 15 percent of the current capacity -
would be achieved or set a time frame. But he said it
wouldn't be subsidized by the government or be completed
through an increase in prices the nation's distributors pay
generators for powers.
He said a reduction in energy consumption by the public is
also a key factor in combating the energy shortfall, and
called for a 10- percent cut in use by the sector. At the same
time, he announced a proposal that would compensate
energy customers for the inconvenience of power cuts,
though such a measure wouldn't be expected to be approved
until after the current crisis eases.
In criticizing the nation's power companies, Frei said they
sometimes opt to violate regulations and pay the relatively
small fines rather than rectify the problems.
"This attitude has prevented operation of the system in
accordance with technical criteria aimed at the common good
and, with it, has prevented adoption of measures that,
despite the drought, would assure the power supply," Frei
said.
Francisco Courbis, general manager of power producer
Colbun, said in response to the presidential address there is
little room for more investment in the sector, alluding to
Frei's call for the 500- megawatt increase in capacity. He said such an
increase would cost US$300 million.
An ongoing drought has dried up reservoirs in the southern part of the
nation, severely limiting output of the nation's Hydroelectric generators,
much cheaper to operate than
thermal powered plants, currently supply about 30 percent
of Chile's energy power.
*The End*
Monti Aguirre
Latin American Campaigns
International Rivers Network
1847 Berkeley Way
Berkeley, Ca. 94703
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Tel: 510 . 848.11.55 and/or
707 . 591.91.49
Fax: 510 . 848.1008
monti@irn.org
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