In Official Register No. 62, Eighth Supplement, dated June 18, 2025, Executive Decree No. 32 of the 15th of the same month—issued by the President of the Republic—was published, enacting amendments to the General Regulations of the Organic Law on the Public Electricity Service and to the Natural Gas Operations Regulation (hereinafter, the “Regulation”). The Regulation entered into force upon its publication in the Official Register.

This bulletin outlines the main changes introduced by the Regulation to the General Regulations of the Organic Law on the Public Electricity Service, as follows:

Update of Definitions:

1. Among others, the definition of “regulated demand” is updated (now excluding self-consumption by self-generators and large consumers with bilateral contracts), and the concept of “energy storage” is redefined.

Powers of State Entities

2. A new article is incorporated granting CENACE the authority to issue alerts regarding generation deficits and coordinate response measures; it also empowers the Ministry of Energy and Mines (“Ministry”) and ARCONEL to issue exceptional resolutions directed at sector companies and affiliated entities.

3. Regulates the disconnection of high-voltage customers during periods of generation deficits and/or rationing. It establishes that high-voltage tariff customers must have generation systems to supply their own demand, and, by exception, any excess electricity generation may be delivered to the National Interconnected System (SNI), in accordance with regulations issued by ARCONEL.

Non-Conventional Renewable Energy (NCRE) Generation Projects Not Included in the Master Electricity Plan (PME)

4. Changes are introduced to the scope of application, requirements, and procedures for participation in non-conventional renewable energy (NCRE) generation projects, and transition energy sources—such as natural gas, green hydrogen, or nuclear energy—are now included.

5. The power thresholds for direct delegation have been modified. While the previous regulation differentiated between projects up to and above 10 MW, the current Regulation allows direct delegation for NCRE and transition energy projects up to 100 MW, reserving Public Selection Processes (PSPs) exclusively for those that exceed this threshold.

6. For projects with a nominal capacity of up to 10 MW, the interested party may choose to accept the preferential pricing conditions, although opting out is also allowed. The same applies to projects with a capacity greater than 10 MW and up to 100 MW.

7. Public-Private Partnerships (PPPs) are reserved for projects with a nominal capacity greater than 100 MW (including both non-conventional renewable energy and transition technologies) that are declared to be of “public interest” by the Ministry.

Ancillary Services and Energy Storage Projects

8. The Regulation maintains the granting of enabling titles through Public-Private Partnerships (PPPs) for projects that are included in the Master Electricity Plan (PME). For projects outside the PME, the Regulation replaces the PPP mechanism with a direct delegation through a concession contract.

Self-Generation

9. The self-generation enabling title does not require an opinion from the Ministry of Economy and Finance (MEF) if it does not create fiscal obligations; however, if such obligations are generated, MEF approval will be required.

Guarantee of Contractual Payment Obligations

10. It is added that the State and/or distribution companies may use mechanisms such as contingency funds, trusts, financial guarantees, or other instruments to guarantee the payment of their contractual obligations in the electricity sector, in accordance with current regulations. The implementation of these mechanisms requires technical analysis and a favorable opinion from the public finance governing body.

Electric Power Transmission Activity

11. The Ministry is allowed to delegate, through a Public-Private Partnership (PPP), projects proposed by private initiative that are not included in the Master Electricity Plan (PME).

12. It is added that if the expansion of the National Transmission System (SNT) does not proceed in accordance with the PME, transmission users or other legal entities may directly execute new network and infrastructure projects, subject to prior authorization from the transmission company.

Distribution Activities

13. It is amended to establish that, when the distribution company fails to carry out the required network expansion in a timely manner, applicants or customers under the general tariff category may build new networks, subject to prior approval by the distribution company through a selection process.

Declaration of Public Interest

14. It is clarified that the provisions under the section “Declaration of Public Interest for Projects Proposed by Private Initiative” are mandatory for all private companies submitting a private initiative for projects not included in the Master Electricity Plan (PME).

Collection and Payment of Obligations Arising from Commercial Transactions

15. The Regulation specifies that first priority will be given to private participants in generation and/or transmission projects, and preferential treatment will be granted to state-owned companies that form strategic alliances or consortia with private capital participation.

Territorial Development Projects

16. The allocation of resources to the Ministry of Economy and Finance (MEF) and related operational aspects has been amended.

Award Criteria

17. For private initiative generation or transmission projects not included in the PME and submitted under a Public-Private Partnership (PPP) scheme, the initial proponent may improve its offer in response to competing bids, provided that the technical and financial viability of the project is not compromised.

Procedure for Granting Enabling Titles

18. A simplified procedure is established for granting concession contracts to private companies for non-conventional renewable energy (NCRE) projects with storage capacity that include interconnection networks with a nominal capacity greater than 10 MW and up to 100 MW, as well as transition generation projects of up to 100 MW.

New Requirement for Signing a Concession Contract

Assignment of the Concession Contract

19. The circumstances under which the concession contract may be assigned to financiers are regulated.

Reversion of Assets

20. The obligation of asset reversion excludes, among others, self-supply assets, self-generators, co-generators, and non-conventional renewable energy (NCRE) generators with a capacity of up to 10 MW.

Other Provisions

21. Licensing: The Ministry of the Environment will continue to issue environmental licenses and permits for electricity projects until ARCONEL obtains its environmental accreditation.

22. High-voltage customers: who do not generate their own energy must implement self-generation systems within 18 months, starting from June 15, 2025.

23. Trusts: Electric distribution companies must establish a trust within 180 days using the revenues from electricity and public lighting charges, in order to guarantee the priority order of payments.

24. Power Increases: Within 60 days, the Ministry must issue procedures to approve power increases for projects currently under review with a 10 MW limit, in accordance with the new regulatory thresholds.

25. Public entities involved in the authorization processes related to the Simplified Procedure for Granting Enabling Titles for Non-Conventional Renewable Energy (NCRE) Projects must issue internal regulations to adjust deadlines and terms, ensuring the applicability and feasibility of the procedure.

For more information, please contact us at the following email addresses:

• Rafael Valdivieso:  rvaldivieso@bustamantefabara.com
• Gustavo Almeida:  galmeida@bustamantefabara.com
• Bruno Pesantes:    bpesantes@bustamantefabara.com