Chile's Electric Sector Under The Regulatory Magnifying Glass
Chile's Competition Monitoring Unit, an arm of the Electric Coordinator, is only a year old, but in that time its Advisor to the Coordinator has opened seven examinations for possible anti-competitive practices.
One of those investigations has been turned over to the National Economic Prosecutor's Office (FNE) for action under its legal authority.
The regulators
The Competition Monitoring Unit is in charge of searching for "actions that could constitute an attack on competition" according to Law Number 20.936 (Law of Electrical Transmission), monitoring compliance with competition law in the electricity sector.
It should be borne in mind that the role of the Electric Coordinator is not to level charges or try cases. Its duty is to uncover and report possible competition breaches to the FNE. It is the FNE that proceeds on the basis of the evidence. When an infraction has occurred, the Tribunal for the Defense of Free Competition (TDLC) examines the charges and determines potential sanctions.
The FNEs process takes place in the following stages:
Analysis of the admissibility of the report. Once the complaint has been admitted, an investigation of the alleged act is opened, during which various diligences may be carried out, such as requiring more information or economic reports. As a result of the investigation, the FNE takes one of the following courses: (a) initiating proceedings before the TDLC, such as an injunction or a request for a legal opinion; (b) concluding an out-of-court agreement with the offender; or (c) shelving the investigation. Potential...
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