Chile seen facing electricity shortages – Fitch

LONDON (Thomson Financial) – Fitch said there is a likelihood of energy shortages in Chile and the electricity prices will remain on an upward trend for the next couple of years due to rising energy demand, high diesel prices, natural gas restrictions, and initial delay in new projects.

Chile’s current water deficit, combined with further disruptions in the supply of Argentine natural gas, has raised concerns about possible power shortages beginning as soon as March, Fitch said in a report titled ‘Chilean Energy Crisis: Electricity Shortages Loom in 2008′.


Fitch added the companies least affected are the ones that use coal as their main energy source, such as Empresa Electrica Guacolda S.A. (Guacolda). The ratings agency also noted Empresa Nacional de Electricidad SA’s conservative commercial policies that allow it to be a net seller of electricity in the spot market.