Chile Energy Commission rejects ENAPs push into electricity business
The percentage of the equity stakes that Enap and/or its subsidiaries need to have to participate in projects seems to be one of the main issues.
Chilean news state that after a long and intense debate, the Mining and Energy Commission of the Chamber of Deputies rejected three points from the proposal bill that would allow Enap, the national oil company to enter the electricity generation business forcing a second study on this matter.
The points of discord make reference to the criteria that defines Enap and/or its subsidiaries or affiliates and who may participate, through companies that have more than a 50% equity stake in geothermal energy related activities and electricity generation. The parliamentary proposals state that mandatory participation would have to be below 50%.
The Energy Minister said at the beginning of the debate that the new proposal was presented as a sign of flexibility by the government and addressed the need to quickly turn the bill into law, since they want to introduce more competition in the electricity generation market through state participation.
He explained that the new wording allows the National Oil Company to enter the electricity business which determines a maximum stake of up to 66% and reassures minority shareholders.
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Source: Estrategia