Deputy Energy Minister Hugo Briones explained that September represents the month of highest activity for the productive sector, particularly agriculture, and removing it from the peak period should benefit small and medium enterprises while supporting employment. The peak hour system functions similarly to congestion pricing on toll roads, incentivizing consumption shifts to lower-demand periods. However, Briones noted that for SMEs in agriculture, fishing, and metallurgy, the tariff affects production processes, raising output costs and impacting market efficiency.
The measure particularly benefits sectors entering their peak season during September, including agriculture, fishing, and food production linked to national holiday consumption. Catalina Vergara, risk and regulation analyst at EVOL, indicated that power demand charges during peak hours will continue through the rest of the year, calculated from the two highest demands registered during the control period. The change means September consumption no longer factors into this calculation, eliminating the cost penalty that previously extended throughout the year.
Industry association Acenor, representing free clients including mining, transport, and water companies, welcomed the decision. Executive Director Juan Ignacio Gómez stated that excluding September provides greater production flexibility and reduces pressure to adopt costly mitigation measures. A 2024 Acenor survey found 24 percent of respondents reduced production during peak hours, while 23 percent resorted to fossil-fuel self-generation. The ministry will formalize the change through a technical report and decree submitted to the Comptroller General’s Office. Energy markets division chief Jaime Gallegos confirmed the National Energy Commission will lead technical evaluation of future modifications to the peak-hour system.
This article was curated and published as part of our South American energy market coverage.
