On April 21, 2026, Law No. 21,814 was published, modernizing the sanctioning regime applicable to concessionaire companies supervised by the Superintendence of Sanitary Services (SISS). The reform amends Law No. 18,902, which created the SISS, and DFL No. 382/1988 (General Law of Sanitary Services), strengthening the authority’s supervisory and enforcement powers, redefining the catalogue of infringements and penalties, and introducing compliance plans as a mechanism for early termination of sanctioning proceedings.

The law applies only to sanctioning procedures initiated after its entry into force. The Ministry of Public Works has six months to issue implementing regulations and to introduce the corresponding amendments to Supreme Decree No. 1,199/2004.

1. I. New Catalogue of Infringements and Sanctions

Previously grouped into two tiers with a general cap of 1,000 UTA, infringements are now reorganized into three categories, with the following maximum fines:

• • Very serious (up to 10,000 UTA): breaches affecting service quality or continuity that seriously impact public health; widespread service disruptions affecting customers for 36 continuous hours or more; and failure to execute committed works under development plans, among others.
• • Serious (up to 5,000 UTA): service disruptions exceeding 12 continuous hours; deficient maintenance of infrastructure attributable to the provider; absence of an emergency prevention and response plan; and submission of false information to the SISS, among others.
• • Minor (up to 500 UTA): improper charges; deficient handling of complaints; failure to comply with notified instructions; and failure to update development plans, among others.

Misuse of inside information (Article 68 of DFL No. 382/1988) is punishable by fines of up to 1,000 UTA. For minor infringements, written warnings remain available. The law also introduces an express list of mitigating factors (self-reporting prior to investigation, substantial cooperation, unilateral remedial actions, and absence of prior sanctions in the same locality within the last 36 months) and aggravating factors, primarily recidivism within the same period and the continuous nature of the infringement.

1. Compliance Plan as a New Tool

The main procedural innovation is the introduction of the compliance plan as a mechanism for early termination of sanctioning proceedings. In cases of serious or minor infringements, the provider may submit a compliance plan within 15 business days from notification (extendable by 7 days). The SISS must decide within 30 business days. Once approved, the plan suspends the proceedings; full compliance results in their termination.

Failure to comply with the plan allows the SISS to impose up to double the maximum fine applicable to the original infringement. This mechanism is not available for infringements that pose a risk to public health, which must proceed through the ordinary sanctioning process.

• Other Relevant Changes

The law also introduces several additional adjustments:

• • Closure powers and industrial liquid waste (RILES): the authority’s power to order total or partial closure—previously limited to generators of industrial liquid waste—is expanded as a general measure in cases of serious risk to service provision or public health, where no other effective means exist. Additionally, fines of up to 1,000 UTA apply to generators that breach regulations on RILES discharges related to sanitary services.
• • Amendments to DFL No. 382/1988: o Obligation to declare the tourism or real estate purpose of concession applications. o Requirement for providers to certify service feasibility for certain properties located within a 200-meter strip adjacent to the operational area, subject to a cumulative cap of 5% of maximum demand under the development plan, prioritizing housing and public-interest infrastructure. o Expansion of the concept of inside information (Article 68) to include information capable of influencing land and property prices, along with the introduction of a compensation action for affected parties under new Article 68 bis.
• • Limitation period and appeals: the limitation period for enforcement actions is reduced from four to three years from the commission of the infringement, interrupted by the filing of charges. Appeals, previously heard by civil courts, must now be filed before the Santiago Court of Appeals within 15 business days and, as a general rule, suspend the enforcement of the sanction—unless such suspension may affect service quality, continuity, or safety.

1. Practical Implications and Strategic Outlook

Law No. 21,814 aligns the sanitary sanctioning regime with current standards in environmental and energy regulation, combining a three-tier classification system, objective penalty criteria, and mechanisms for early termination. While enforcement powers are strengthened, the introduction of the compliance plan creates a meaningful mitigation tool, as full implementation results in exemption from sanctions.

In the short term, companies in the sector are advised to: • Review and update emergency prevention and response plans, as their absence constitutes a serious infringement. • Strengthen internal governance regarding the use of inside information, under the expanded scope of Article 68 of DFL No. 382/1988. • Develop internal protocols to assess, in a timely manner, the convenience of submitting a compliance plan, considering that non-compliance may significantly increase exposure.

The practical effectiveness of the new regime will depend largely on forthcoming regulations and the criteria the SISS adopts for assessing mitigating and aggravating factors.

If you want, I can also prepare a one-page executive summary, client alert email, or LinkedIn version tailored to your audience. Should you require further information on this matter, please contact Francisco López (flopez@jdf.cl) or Eduardo Silva (esilva@jdf.cl).