Minister Álvaro García underlined that the current administration successfully managed to regularize over US$6 billion in electricity debt and introduced a subsidy benefiting 1.8 million households within the lowest 40% income bracket as identified by the Social Household Registry (RSH). This forthcoming stage targets the residual outstanding debt with a uniform tariff adjustment: a flat monthly surcharge of 1,450 pesos for all regulated residential customers over 48 months. This approach aims to streamline collections irrespective of individual company or consumer debt balances, particularly easing burdens on rural populations.
Crucially, the proposal incorporates a subsidy to fully offset the incremental charge for the RSH-identified vulnerable segment, preserving affordability while extinguishing arrears. The financing mechanism leverages increased tax revenues generated by the tariff adjustment, structured to avoid fiscal deficits. The subsidy accounts for less than one-quarter of current electricity subsidy expenditure and is lower than projected additional government revenues from the tariff increase.
The Ministry intends to deliver this proposal to the incoming government led by President José Antonio Kast, expecting it to advance as a bill during March 2026. This framework is positioned as a technically sound, legally compliant, and economically feasible solution to close the tariff freeze consequences while minimizing tariff shock to Chilean households.
This article was curated and published as part of our South American energy market coverage.
