Winners of Chile’s Record Electricity Auction May Not Be Bankable, Say Lawyers

    View Authors September 2016

    The outcome of Chile’s largest ever energy auction will slash electricity bills for consumers and could encourage economic growth, but lawyers are questioning the bankability of some of the awarded projects writes Latin Lawyer in a September 19 article. 

    On August 17, Chile’s National Electricity Commission announced the winners of the auction. Bids from 22 companies were selected, who will sign on with a 20-year concession contract to supply a record 12,430 gigawatt-hours per year. 

    In the article, Energy partner Kevin Levey told Latin Lawyer that he believed some companies placed bids that know will make a loss just to gain market share. Mr. Levey also pointed to a recently passed transmission law, which may have explained by the number of supply contracts up for grabs was substantially more than one year prior, 84 versus 30, respectively.