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Last week, a proposal was presented that, among other sources of revenue, proposes reducing income from distributed generation (PMGD). The sector accuses the government initiative of altering legal predictability, loss of confidence in political authority and a non-proportional distribution of public burdens.
The Association of Generators of Chile, the Chilean Association of Renewable Energies and Storage (Acera), the Chilean Association of Solar Energy (Acesol) and the Association of Small and Medium Generators (GPM) have released a new statement in which they accuse the Chilean governments new electricity subsidy bill presented to the National Congress of suffering from "serious deficiencies" and of harming "the basic principles on which every productive sector is developed."
The statement said it “shares the concern to find support mechanisms for the most vulnerable families in our country to cope with the rise in electricity rates,” although it points out the lack of coherence “with other public subsidy policies and with a stable and long-term vision for the correct development of the electricity industry.”
In line with the request made at the beginning of last August , actions taken by the State over the last five years are cited, such as, for example, “the freezing of energy prices” and points of the government proposal are detailed which are judged to suffer from “serious deficiencies and substantially harm, at least, the following basic principles on which every productive sector that contributes to the growth of the economy and the generation of jobs in the country is developed”.
Thus, it is described as negative points:
Legal Predictability: continuously and unexpectedly altering the regulatory conditions on which the generation industry has developed and collaborated with the Chilean States policy on energy transition and decarbonization.
Legitimate Trust in Political Authority: defining new public burdens without justifying their measures or explaining the effects on people and businesses: consumption, price levels, inflation and investment conditions.
Proportional Distribution of Public Burdens: establishing tax burdens in an ad-hoc manner for specific economic sectors, without considering any financing that comes from an exercise of efficient and focused financial management by the Government.
Finally, a call is made for a discussion that “allows for finding necessary, viable and expeditious responses to focus on the delivery of a benefit with public funds and, at the same time, respect regulatory signals”, challenges that are summarized in “the conditions of supply, storage and electrical transmission, which are decisive for injecting energy at competitive prices into the system”. |
