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Climate risks and the energy industry

Aug 16, 2024

We invite you to read the letter to the editor written by our Director of Energy and Infrastructure, Federico Rodríguez, on climate risks and the energy industry.

MR. DIRECTOR:
The power outages caused by the storm that occurred a few days ago are a clear sign of climate risk. These events will continue to occur and it is essential that the strategies of companies, the public sector and users include tools to prevent and deal with these scenarios.

The SEC and the CNE should consider in the new tariff processes that current technologies allow online management of assets, which helps to prevent contingencies and, if they occur, to have useful information for their management and to inform users.

It is likely that the updating of the risks to which the energy industry is exposed today will lead to higher tariffs for end customers. Likewise, municipalities and users have the obligation to keep overhead lines clear, although this obligation is not supervised. We are beneficiaries of the service and, in part, we are also responsible for ensuring that the public utility companies can provide a quality service.

The management of public service assets, such as electricity distribution, involves not only the distribution company, but also regulators, municipalities and the users themselves. This is not only for regulatory reasons, but also because of the importance of the services and the interaction of all of them in the same space, the public space.

Source: La Tercera, August 15. [See here]

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