The 2027 Budget bill that the Chilean government sent to Congress cuts spending by the Ministry of Energy from CLP 155,435 million to CLP 138,026 million, a drop of CLP 17,409 million, or 11.2%, according to the comparative table for budget item 24 published by the Budget Office (Dipres). Both figures are expressed in 2027 pesos.
The cut is uneven: the National Energy Commission (CNE) and the Superintendence of Electricity and Fuels (SEC) barely change, while two programs of the Undersecretariat disappear entirely: Just Energy Transition and Support for the Development of Non-Conventional Renewable Energy.
Ministry of Energy 2027 budget: 11.2% or 11.8%
A cut of 11.8% circulated in the press, while Dipres's total spending shows 11.2%. Both figures come from the same table, but they measure different things:
| Budget item 24 indicator (thousands of 2027 pesos) | Adjusted 2026 law | 2027 bill | Change |
|---|---|---|---|
| Total spending | 155,435,099 | 138,026,118 | -11.2% |
| Operating State Spending | 155,375,892 | 137,072,297 | -11.8% |
| Current transfers (subtitle 24) | 79,128,811 | 66,233,548 | -16.3% |
| Capital transfers (subtitle 33) | 4,670,605 | 1,236,750 | -73.5% |
| Personnel spending | 53,848,010 | 53,504,686 | -0.6% |
Total spending includes every subtitle, such as payments to the treasury and debt service. Operating State Spending excludes those financial items and is the indicator Dipres uses to measure the State's actual spending. At Energía Futura we use total spending (11.2%) and keep the other as a reference.
Which energy programs disappear in 2027
The tables for each program, also published by Dipres, show where the adjustment is concentrated:
| Program (Undersecretariat of Energy) | Adjusted 2026 law (thousands of CLP) | 2027 bill (thousands of CLP) | Change |
|---|---|---|---|
| Just Energy Transition | 6,805,218 | 0 | -100% |
| Support for Non-Conventional Renewables | 1,712,765 | 0 | -100% |
| Energy Efficiency Action Plan | 8,775,068 | 6,716,734 | -23.5% |
| Undersecretariat of Energy (program 01) | 92,824,614 | 86,412,176 | -6.9% |
The Just Energy Transition program (Dipres table) grouped lines such as the Green Hydrogen Promotion Program (CLP 254.6 million in 2026), the Just Energy Transition allocation (CLP 550.1 million) and several Sustainable Productive Development lines. All are at zero in 2027.
The non-conventional renewables program (Dipres table) also disappears as a stand-alone program, although program 01 of the Undersecretariat adds a new allocation of CLP 323.3 million under the name *Support for the Development of Non-Conventional Renewable Energy*.
The cut to energy efficiency and to the transfer to ENAP
In the Energy Efficiency Action Plan (table), the largest drop is in capital transfers to the Energy Sustainability Agency, which go from CLP 2,832 million to CLP 1,237 million (-56.3%). Current transfers to the same agency stay at CLP 2,689 million.
In the Undersecretariat's main program (table), the transfer to the state oil company ENAP falls from CLP 72,545 million to CLP 61,650 million (-15%). It is the ministry's largest single item, so it explains much of the cut in pesos. By contrast, the Rural and Social Energization program rises from CLP 221 million to CLP 391 million in transfers to the private sector.
| Ministry of Energy agency | Adjusted 2026 law (thousands of CLP) | 2027 bill (thousands of CLP) | Change |
|---|---|---|---|
| National Energy Commission (CNE) | 9,169,417 | 9,050,241 | -1.3% |
| Superintendence of Electricity and Fuels (SEC) | 20,277,080 | 20,266,050 | -0.1% |
| Transfer to ENAP | 72,544,875 | 61,649,883 | -15.0% |
| Energy Sustainability Agency (capital transfers) | 2,832,312 | 1,236,750 | -56.3% |
What environmental organizations say about the 2027 budget
The Latin American Alliance for a Just Energy Transition, which includes Chile Sustentable and other organizations from the region, presented the document *Towards a Regional Electrification Agenda for Latin America and the Caribbean* at OLADE's Energy Week and called for strengthening transition policies amid the cuts, according to Revista Electricidad. Its spokesperson was Sara Larraín, director of Chile Sustentable.
Dipres's tables do not explain the reason for each cut. That justification is discussed in the joint budget subcommittees, where the ministry presents its item.
One point to keep in mind when reading the figures: Dipres compares the 2027 bill with the adjusted 2026 law, expressed in 2027 pesos. During the year, the *current* budget can change through amendment decrees: as of August 2026, the ministry's current budget was CLP 159,513 million (in 2026 pesos) and execution stood at CLP 85,984 million, according to the same table. That is why different comparison bases can give different percentages.
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See advertising optionsWhat the cut means for the energy transition
The Ministry of Energy's public budget is small compared with private investment in the sector: a single solar project with batteries can exceed US$400 million. But it funds tasks the market does not do, such as programs for municipalities where coal plants close, green hydrogen pilots and energy efficiency funds for households and small businesses.
The transition is moving along other tracks. This same month, the country's first coal plant completed its conversion to gas, as we reported in the conversion of the IEM plant in Mejillones.
And solar power, driven by private investment, is already a third of the country's installed capacity, as we show in solar energy in Chile in figures.
Meanwhile, households will see lower bills in most regions from January, as we explain in the 4.3% cut in electricity bills.
How the 2027 budget debate continues
- Joint subcommittees: review each item and can approve, reject or reduce spending.
- Special Joint Budget Committee: consolidates the bill.
- Floors of the Chamber and the Senate: vote on the bill. The Constitution gives Congress 60 days from its submission to pass it.
- Key limit: legislators cannot increase spending or create programs; only the executive can propose that.
Frequently asked questions
How much does the Ministry of Energy's budget fall in 2027?
By 11.2% in total spending, from CLP 155,435 million to CLP 138,026 million (2027 pesos), according to Dipres.
Why is an 11.8% cut being reported?
Because that is the change in Operating State Spending, an indicator that excludes financial items. Total spending falls 11.2%.
Which programs are eliminated?
Just Energy Transition (CLP 6,805 million in 2026) and Support for Non-Conventional Renewables (CLP 1,713 million), which go to zero as programs.
Is the SEC's budget cut?
Barely: it falls 0.1%, to CLP 20,266 million.
