Electricity bills in Santiago to drop 2% on rate calculation modification

SANTIAGO.- The National Energy Commission revealed the process of defining electricity rates today with regards to the Value Added Distribution (VAD), which will be effective from 2008 until 2012. The rate definition contains the monetary values that will be received by electricity distributors for business related to distribution.

While referring to the process, the Minister of Energy, Marcelo Tokman, announced that distribution prices for companies would fall by an average of 11.4%.

As a proportion of the final bill, the VAD is considered to equal approximately 20%. Therefore, the fees charged for end consumers on electricity bills are expected to drop by 1.7%, although the final details of the rate calculation process will be revealed once it is approved by the Comptroller's Office.

The Ministry of Energy also indicated the variation that can be expected within important cities throughout the country.

According to the department, electricity bills in Santiago, Valparaíso and Concepción will fall by 2%. Meanwhile, Punta Arenas is expected to see the most significant decrease, amounting to 5%.

On the other hand however, Valdivia and Iquique are expected to see an increase in electricity bills of 1% and 2% respectively.