The new electricity supply tender in Chile has reignited a debate that extends beyond renewable energy projects, energy storage, and contract prices. According to the Chilean Association of Energy Marketers and Suppliers (ACEN) , the return of long-term contracts to supply regulated customers could hinder further liberalization of the electricity market .
On June 9, the National Energy Commission (CNE) approved the preliminary terms of the 2026/01 Supply Tender , which includes 2,835 GWh/year for regulated customers, divided into two blocks: one of 1,575 GWh/year , with supply starting in January 2029, and another of 1,260 GWh/year , starting in January 2030. Both will have a duration of 15 years .
While the design opens up space for renewable technologies and storage , ACEN focuses on another point.
“Our biggest concern is that long-term blocks are being auctioned again. These auctions, for these amounts of energy, make the free market more rigid ,” warned Eduardo Andrade , executive secretary of ACEN, in an interview with Energía Estratégica .
“Distributors and companies that subsequently contract for this energy, after winning the bids, may consider that they have an acquired right . Therefore, as we have been arguing for a long time, it becomes complicated to continue lowering the power limit for becoming a free market customer . This goes against the grain,” he maintained.
Chile has already made progress in lowering the threshold for accessing the free market, from 500 kW to 300 kW . For the entity, the challenge now is to continue this process and enable the participation of smaller companies , thereby expanding competition in energy trading .
“We hope that some leeway will be created, allowing energy to be transferred from the regulated market to the free market , and that, consequently, the threshold for being a free market customer will be lowered. This threshold is already at 300; the idea is to lower it to 200 and then to 100 ,” Andrade stated.
The criticism arises in a particular context. In previous processes, the CNE had opted for more limited and short-term tenders: the 2025/01 tender included a block of 1680 GWh to cover supply between 2027 and 2030, for a period of four years , while the exceptional 2025/02 tender aimed to supply consumption in 2026, with a block of 1470 GWh .
Given this precedent, Law 2026/01 reinstates larger and longer-term contracts, committing 2,835 GWh/year for 15 years . For ACEN, this reopens the debate about how much demand should be secured in the regulated market and how much space should be reserved for the expansion of the free market .
The discussion is connected to the distribution reform.
Andrade's proposal is not limited to the bidding process. According to the executive secretary of ACEN, the underlying debate is linked to the modification of the electricity law and, in particular, to the modernization of the distribution segment .
“There is already at least some consensus in the industry that there are four key areas to address: pricing , remuneration , safety or quality of service , and marketing ,” he listed.
“How will those four be prioritized? We hope that marketing will also have a certain priority, that it will be taken into account. Because we believe that, while it is possible to continue making progress in liberalizing the market without necessarily making legal changes, it is advisable to do so,” he added.
Among the points that the union considers central are the structural separation between distribution and marketing companies , information management , the figure of the pure generator and the definition of rights and duties of free customers .
This last point becomes more relevant as the power threshold decreases. Regulating the commercial relationship of large industrial customers is not the same as regulating that of small and medium-sized enterprises that could enter the free market in the coming years.
“When dealing with deregulated customers using over 500 kW —medium-sized companies—less protection is needed. However, when we're talking about 100 kW customers, which are much smaller companies, their rights and obligations in the deregulated market are not as clear. We believe this needs to be better assessed,” Andrade stated.
The debate surrounding the modernization of electricity distribution is not new in Chile, but it has gained renewed momentum following the gradual opening of the free market . Current regulations distinguish between regulated customers , supplied by distributors at prices determined by bidding processes, and free market customers , who can directly negotiate their supply terms.
With the reduction of the threshold from 500 kW to 300 kW , more users became eligible to opt for this system, which creates new challenges regarding marketing , access to information , payment for network use , customer rights and the relationship between distributors and suppliers.
Looking ahead to the rest of the year, Andrade anticipated that one of ACEN's strategic objectives will be to actively participate in the regulatory discussion and continue pushing for a reduction in the power limit .
In turn, the union maintains a working agenda with distributors and authorities to address more operational issues, related to the coexistence between the regulated world , distribution companies and energy marketers or suppliers .
“We hope these issues will be addressed in the short term and continue to be resolved throughout the year. However, this is a rapidly evolving world, and new discussions are constantly emerging that must be tackled as they arise,” the executive secretary concluded.