To mitigate social impact, the Ministry introduced a bill proposing a universal, consumption-independent charge paired with a subsidy covering the entire surcharge for the bottom 40% of households registered in the Social Registry of Homes. This subsidy is intended to be funded through increased VAT revenues linked to higher tariff collections. The proposal simplifies repayment across distributors by standardizing charges amid varied regional consumption and pricing structures, particularly benefiting rural and vulnerable populations.
The repayment mechanism and subsidy framework will enter the legislative agenda under President-elect José Antonio Kast’s administration, with incoming Energy Minister Ximena Rincón expressing intent to review and potentially modify the current government’s proposal. Failure to pass the legislative measure would revert to SEC’s individualized billing method, which lacks direct subsidy support. The gradual tariff normalization reflects the resolution of financial imbalances created by the extended tariff freeze during social unrest and the COVID-19 pandemic, with a potential downward adjustment of electricity bills expected only after 2028.
This article was curated and published as part of our South American energy market coverage.
