On March 21, 2025, the National Energy Commission (CNE), through Exempt Resolution No. 130, published the Preliminary Terms of the National and International Public Tender for Energy and Electric Power Supply. According to these terms, the tender will auction a Supply Block of 1,680 GWh, intended to meet the energy needs of regulated customers within the National Electric System, starting in 2027 and lasting for four years.
The purpose of this resolution is to award the supply of energy and power to regulated electricity customers who have not yet been awarded contracts in previous processes. This will allow bidding concessionaires to enter into supply contracts with the awarded bidders to ensure electricity supply for these customers, in accordance with the General Law on Electric Services (LGSE), the Bidding Regulations, and other applicable regulations.
Given the period being tendered, this is a short-term supply bidding process, with specific characteristics explained below.
- PROCEDURE [1]
The process begins with a preliminary bidding report issued by the CNE. After a period for comments and/or disputes, the report is finalized as the Final Bidding Report.[2].
Following the report, the CNE prepared the bidding terms, which were duly notified to the bidding concessionaires so that they could submit any necessary comments.
Once the deadline for submitting comments expired, the terms were approved through an exempt resolution by the CNE and published on its website.
Subsequently, in accordance with Article 26 of the Bidding Regulations, the concessionaires must call for bids within eight administrative business days following notification of the exempt resolution approving the terms. In this case, since the terms explicitly establish the date for the "call for bids," it must take place on Tuesday, April 29, 2025.
Additionally, according to Article 28 of the same regulations, the CNE may make justified corrections, amendments, or additions to the bidding terms. For a short-term bidding process, such modifications can be made up to one month before the proposal submission deadline. If these modifications are made, the process manager must send them to bidders by email no later than three days after the CNE's notification. Furthermore, these modifications must be published on the website indicated in the bidding terms, ensuring transparency and proper access to information for bidders.
- CONTENT AND SPECIFICS
According to Article 132 of the General Law on Electric Services (LGSE) and Articles 19, 21, and 69 of the Bidding Regulations—which define the minimum content required for bidding terms—the terms for this process include several key aspects, which are highlighted below.
- New Features
In addition to the standard conditions included in previous bidding terms, the CNE introduced new elements aimed at mitigating risks for suppliers, encouraging bidder participation, and ensuring supply coverage at the most efficient market prices. These new conditions include:
- Segmentation into four zonal blocks: A new Zonal Block No. 4 has been created in the southern part of the system, grouping the requirements of the distributors SAESA, Cooprel, Luz Osorno, and CRELL.
- Expanded participation requirements: Both local and foreign companies can participate, provided they demonstrate ownership of generation assets interconnected with the National Electric System before the start of supply. These assets must have sufficient generation capacity to support the energy committed in the contracts. Additionally, companies may complement this support by signing contracts with other generation companies, provided these contracts remain valid for at least the duration of the supply period.
- Performance Guarantee: The terms require that the Contract Performance Guarantee remains in effect from the signing of the contract and throughout its duration.
- Systemic Costs
As in 2024, the newly published bidding terms incorporate systemic costs into the energy price, meaning that these costs will be included in the awarded price. This results in an additional charge to energy prices, which will be borne by customers rather than generators.
- Short-Term Bidding Process
Under Article 131 bis of the General Law on Electric Services (LGSE), the CNE is responsible for determining the necessary supply tenders each year to meet the demand of price-regulated customers at the lowest supply cost, based on information provided by public distribution service concessionaires.
Typically, the CNE designs, coordinates, and oversees bidding processes at least five years in advance of the supply start date. However, based on information from the concessionaires, the CNE deemed it necessary to include short-term bidding processes to meet supply needs for 2027, 2028, and 2029.
The 2024 Final Bidding Report identified the need for a short-term bidding process, mainly due to the early termination of certain contracts.
As a result, this 2025/01 bidding process aims to cover the supply needs of regulated customers starting in 2027 for a period of four years. The remaining long-term supply needs outlined in the 2024 report will be addressed in an upcoming supply bidding process to be launched later this year.
- KEY DATES
- April 29, 2025: Deadline for the official call for bids.
- July 2, 2025: Deadline for companies acquiring the bidding terms to submit questions and comments.
- September 1, 2025: Deadline for modifications (corrections, amendments, or additions to the bidding terms).
For further information, please contact Francisco López (flopez@jdf.cl) or Eduardo Silva (esilva@jdf.cl).
[1] Art. 131° y siguientes de la LGSE; Art. 13° y siguientes del Decreto 106 de 2016 del Ministerio de Energía que aprobó el reglamento sobre licitaciones de suministro de energía para satisfacer el consumo de los clientes regulados.
[2] Art. 131° ter de la LGSE.
[3] Art. 131 LGSE y art. 9 del Reglamento.
