Starting in the second half of 2024, six municipalities of Chile will receive an extra discount on their electricity bills, as part of a series of measures implemented to alleviate the impact of the rise in the price of electricity. This occurs in a context in which a 12.5% increase in the cost of electricity bills is expected, after the unfreezing of rates.
Congress approved a law on April 10 to stabilize the electricity rates, which also includes additional aid for certain communities in the country. This rate increase aims to gradually pay off a multimillion-dollar debt with generating companies, which was accumulated in previous years.
The new legislation establishes a mechanism to pay outstanding debt, while protecting clients, especially the most vulnerable, who represent 40% of the Social Household Registry. However, in addition to this subsidy, extra help is included for certain municipalities identified as energy transition zones.
These six communes, which are Mejillones, Tocopilla, Huasco, Puchuncaví, Quintero and Coronel, will benefit from an additional discount on their electricity rates. These areas are considered to be in transition towards a more sustainable energy matrix, and therefore, will receive a reduction that will range between 20% and 40%.
The Territorial Generation Recognition Mechanism (RGT), established by the Council of Ministers for Sustainability and Climate Change, will allow this additional reduction in electricity rates for these communities. This discount will be applied automatically and is expected to be reflected in invoices starting in the second half of 2024, as confirmed by the Minister of Energy, Diego Pardow.
