The auction structure divided the supply into four geographic zones—North, Central, Central-South, and South—each segmented further into three hourly blocks, enhancing offer flexibility. The pricing formula accounted for systemic costs by indexing 70% of prices to the Henry Hub gas index and 30% to the Consumer Price Index (CPI), thereby limiting risk-based surcharges for suppliers.
Six companies submitted bids on November 14, 2025, generating 708 offers equivalent to 3.9 times the total energy requested. The North zone exhibited the highest level of competition, with offer volumes 4.6 times the required energy. Enel Generación Chile S.A. emerged as the sole successful bidder, winning 100% of the energy blocks across all zones and hourly segments with a price offer of US$64.499 per MWh.
This adjudicated price stands significantly below the average of current contracts for 2026, set at US$92.3 per MWh, projecting a reduction in the average price for 2027 between 2% and 4%, depending on systemic cost evolution and price indexation. The award follows a pattern observed in earlier similar tenders, where Enel secured the full contracted volume, repeating its comprehensive participation strategy.
Key authorities highlighted the auction’s transparency, competitiveness, and strong market confidence. The CNE stressed continuous improvements to maintain interest and efficiency. The results reaffirm the mechanism’s role in securing regulated supply under transparent conditions at competitive prices for households and SMEs. Fenacopel emphasized that although challenges remain, notably in contract fulfillment, the regulatory signals are effectively reaching the market, fostering ongoing improvements and competition. The tender reflects a concentrated market dynamic, raising industry discussions on promoting greater bidder diversity while balancing supply reliability, cost containment, and infrastructure investment.
This article was curated and published as part of our South American energy market coverage.
