China State Grid, the owner of Chilean energy supplier Silkvinda, has announced a “strong impact” on its treasures due to a law that prevents users from cutting essential health services even if they are by default.
The person responsible for noticing the situation was Yumeng Zhao, chairman of the Silquinda Board. He stressed that the Basic Services Act carries a financial weight, which is usually generated due to the company’s payments to generators and suppliers.
The Basic Services Act was promulgated and issued on August 8 last year “Exceptional Measures in Support of End Users of the Health Services, Electricity and Gas Network”, Due to the effects of the epidemic in Chile. The law stipulates that companies responsible for these services cannot make cuts for non-payment of bills, and Empowers customers to repay loans without interest or penalty. Initially, the validity of the law was extended to November 2020, but then it was postponed to May 5 of this year, the deadline for this legislation.
This is why In view of the immediate outcome of this regulation, this Thursday the Chamber of Deputies Economic Commission discussed extending the validity of the Basic Services Act for the third time and continuing to maintain exceptional measures for users due to the crisis created. By infection.
Pressures to avoid new extension
The Commission voted in favor of this plan, who They endorsed the idea of expanding the benefits of the Basic Services Act. Now, the initiative will go to a referendum of parliamentarians to decide together whether they will definitely approve the speech. If the plan does not find the necessary votes among members of parliament to postpone the legislation, Companies may be authorized to disconnect default users.
On a pre-vote appointment to the Chilean Parliamentary Committee, Superintendent of Electricity and Fuels (SEC), Louis Avila, announced that the total number of contracts signed by the Department of Electricity was 178 thousand. “Looking at the pre-epidemic situation, the number of failures in the electricity sector as of March, before the revenue problems caused by the epidemic, was 514,418 in the level of residential customers who returned to normal on that day (…) There is an accusation brought by the industry that is not related to the consequences created by the epidemic, ”he warned.
State grid relationship with energy in Chile
China is the largest trading partner of investment projects from Chile and Asia. And InvestSail supports, which stood at US $ 4.85 billion in 2019, representing 167% growth compared to 2018.
On October 14, 2019, the previous full owners of Silkinda Energy, Sembra Group has announced that it will sell 100% of its shares to State Grid International Development Limited (SGIT), a Chinese state-owned company.
According to information available at the time, the business would have closed for about $ 2.23 billion, which was considered one of the most “luxurious” transactions of the year at the time.
The client portfolio of this Chinese-owned company covers a large area of Valparaராசso’s Fifth Region and a rural area of Chile’s Seventh Region, hence the administrative risk associated with Parliament, If the extension is not approved, large sections of the population in key parts of the country could eventually be affected by the power outages. According to the Cilkinda report for 2020, the company will provide power to approximately 758,739 customers.
On Friday, November 13 last year, the Chinese state-owned State Grid again hit the desk and announced the acquisition of the General Electricity Corporation (CGE) for $ 3,000 million, which was described as the “biggest operation” by the Spanish Securities Commission, according to the Spanish Securities Commission. Announced the purchase of State Grid from Natarki. CGE is the largest electricity operator in Chile, so State Grid has confirmed the real presence of Chinese employers in its purchasing Chilean energy supply.
On March 31, the Office of the National Economic Attorney confirmed the sale of CGE by the Asian company State Grid. Currently, it is estimated that CGE transmits and distributes energy through concessions in 11 regions of Chile, including the metropolitan area, Valparaiso and Antofagasta.