COVID-19 Expected to put Financial Stress on Chilean Discoms & Gencos: GlobalData

With the outbreak of the COVID-19, Chilean distribution utilities (Discoms) are supplying electricity to the customers despite non-payments from them and hence, the utilities are finding it difficult to pay back to the generators as per the power purchase agreements (PPAs). Consequently, the utilities have warned to claim force majeure to protect themselves from the short-term financial stress of adhering to the PPA obligations, says GlobalData, a leading data and analytics company.

As a relief measure, the Chilean Renewable Energies Association (ACERA) has appealed to the government to create a pool of funds, comprising of about USD 80 million per month, that would likely be of help to distribution utilities to cover the collection losses, which shall be repaid after normalcy gets restored.

Chile has a substantial industrial sector, especially the mining sector, which accounts for a large portion of the demand. As parts of the country went into lockdown, a decline in the consumption of power was experienced.

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