Chile's Ministry of Energy announced on Thursday its decision not to proceed with the revocation of Enel's concession in the Metropolitan Region. This resolution concludes the administrative process that began in August 2024 following massive power outages caused by a storm system in Santiago.
The energy ministry's decision is based on a technical report prepared by the Superintendency of Electricity and Fuels (SEC). According to the ministry, the regulatory body conducted an exhaustive performance evaluation of the distributor covering the period from 2019 to 2025.
The SEC analysis examined critical indicators, including supply quality, commercial quality, and product quality. The results of the study, submitted to the Ministry on April 29, concluded that the company maintained service levels within the limits required by current regulations throughout the entire period reviewed.
Legal grounds and judicial status
After receiving the technical findings, the Ministry of Energy conducted a legal review to determine if there were sufficient grounds to revoke the contract. The authority confirmed that the necessary legal criteria to proceed with the termination of the Italian utility's concession were not met.
"The company meets the standards required by law to maintain it," stated the official release from the ministry, headed by Ximena Rincón.
The review process was originally triggered in August 2024, when a storm system damaged electrical infrastructure in central Chile, leaving thousands of users without power for several days. This event prompted a strong response from Gabriel Boric's administration, which instructed the SEC to launch the corresponding investigations.
However, the government clarified that this administrative resolution is independent of other legal disputes currently pending in court. The Ministry of Energy noted that a judicial process is ongoing regarding the 2024 blackouts and the fines imposed on the company by the SEC.
Impact of the force majeure claim
A key point in the resolution is the Ministry's stance regarding the company's potential defenses. According to reports from El Mostrador, the authority emphasized that even if the courts were to accept Enel's arguments regarding the existence of "force majeure" during the weather events, the decision not to revoke the concession would remain unchanged.
This position stems from the fact that the conclusion regarding the lack of grounds for revocation is based on a global assessment of the company's regulatory compliance, rather than solely on the specific events of 2024. Consequently, the resolution ensures the company's continued role in the national electricity system.
With this administrative ruling, the concession review process, which spanned nearly two years, has come to an end. The decision ratifies the continuity of the utility's operations in the Metropolitan Region, based on the regulator's technical data.
