Rain seen diluting Chile wholesale electric prices
Wholesale prices are those Chile's electricity generators charge the country's distributors. Typically, they represent nearly 60 percent of the total price paid by residential consumers.
"We expect a reduction of between 5 to 10 percent in wholesale prices in October and we will most likely see a fall in regulated prices into 2009," Diego Celedon, an analyst with Santander GBM, the bank's research unit, told reporters.
However, much will depend on how the volatile peso fares in coming months, as the government fixes its prices in dollars, he said.
In April the government decided it would cut wholesale electricity prices by 5.2 percent in the country's heavily populated south and center, citing a strong appreciation of the peso against the dollar.
Chile is in the midst of an energy squeeze, with Argentina restricting its exports of natural gas and costly oil derivative imports stoking domestic inflation.
Chile's main electricity generators are Endesa Chile END.SN, AES Gener CHG.SN and Colbun COL.SN. The big distributors include Chilectra CHE.SN and CGE CGE.SN.
Related News
Disruptions in the U.S. coal, nuclear power industries strain the economy and invite brownouts
WASHINGTON - Is anyone paying any attention to the crisis that is going on in our electric power markets?
Over the past six months at least four major nuclear power plants have been slated for shutdown, including the last one in operation in California. Meanwhile, dozens of coal plants have been shuttered as well — despite low prices and cleaner coal. Some of our major coal companies may go into bankruptcy.
This is a dangerous game we are playing here with our most valuable resource — outside of clean air and water. Traditionally, we've received almost half our electric power nationwide from…
