Chile's Supreme Court upheld the appeal of the National Electricity Coordinator (Coordinador Eléctrico Nacional, the grid operator) and overturned the ruling of the Competition Tribunal (TDLC) that, in October 2024, had fined it 500 annual tax units (UTA) over a transmission works tender held in 2022. Revista Electricidad reported the decision on October 9.
The ruling comes at a time of change for the body: its new board of directors made its first courtesy visit to the National Energy Commission (CNE) on October 14.
What the Supreme Court decided
The case began with a complaint by Ferrovial Power Infrastructure Chile before the TDLC, challenging how the Coordinator ran a transmission works tender in 2022. The tribunal ruled in its favor and fined the Coordinator. The Third Chamber of the Supreme Court reversed that decision.
According to Revista Electricidad, the Court held that disputes over how tender rules are applied and how winning bidders are selected must be resolved through the corresponding legality review mechanisms, not through competition law.
| Case milestone | Detail |
|---|---|
| Challenged tender | Electricity transmission works, 2022 |
| Plaintiff | Ferrovial Power Infrastructure Chile |
| TDLC ruling | October 2024: 500 UTA fine on the Coordinator |
| Supreme Court ruling | Upholds the appeal and overturns the ruling (reported October 9, 2026) |
The Coordinator said it *"values this court ruling"* and *"reaffirms its commitment to strict compliance with the regulatory framework in force"*.
Why the ruling matters
The National Electricity Coordinator is the technical body that operates Chile's power system and, among other duties, tenders the transmission expansion works defined by grid planning. A competition fine over those tenders opened the door for any award to end up before that tribunal. According to the Coordinator, the ruling *"reaffirms criteria"* about its role in these processes.
Transmission tenders are key for the system: they produce the lines and substations that carry renewable energy from the north to central Chile, as well as urgent works like those the CNE has just approved in La Araucanía, covered in the 2026 urgent transmission works.
The Coordinator's new board
On October 14, the Coordinator's new board visited the CNE, according to a statement from the National Energy Commission. They were received by executive secretary Carlos Barría and the head of the Electricity Department, Danilo Zurita.
| Board member | Position |
|---|---|
| Humberto Espejo | Chair |
| Bernardita Espinoza | Board member |
| Claudia Rahmann | Board member |
| Carlos Finat | Board member |
| Eric Ahumada | Board member |
The meeting covered planning, operation and development of the sector, infrastructure, renewable energy integration and electricity market modernization, with the shared goal of *"a safe, efficient and resilient power system"*, according to the statement.
The challenges ahead
- Storage: integrating battery capacity, which already exceeds 3,000 MW, into system operation, as we report in Chile surpasses 3,000 MW of battery storage.
- Curtailment: reducing renewable energy lost to grid congestion.
- Long-term supply: supporting the tenders the CNE is preparing to cover demand from 2030, detailed in the supply report through 2029.
- Resilience: responding to weather events like the 2026 storms, covered in the October power outages.
Does your company work in transmission, grid operation or electricity regulation? Reach the industry on Energía Futura.
See advertising optionsWhat the TDLC is and what a UTA is
The Competition Tribunal (TDLC) is the specialized court that hears cases of anti-competitive conduct, such as collusion or abuse of a dominant position. Its rulings can be reviewed by the Supreme Court through an appeal, which is what the Coordinator did.
The annual tax unit (UTA) is a unit of account used to set fines in Chile and is equal to 12 monthly tax units (UTM). Its value in pesos is adjusted for inflation, so a 500 UTA fine is a significant amount.
What Chile's National Electricity Coordinator does
The Coordinator was created in 2017 under the transmission law (Law 20,936), which merged the former dispatch centers of the Central Interconnected System and the Northern Interconnected System. Today it coordinates the operation of a single national power system.
| Coordinator function | What it involves |
|---|---|
| System operation | Decides in real time which plants and batteries generate to meet demand at the lowest cost and safely |
| Short-term market | Calculates marginal costs and transfers between companies |
| Transmission tenders | Tenders the construction of the expansion works defined in planning |
| Competition monitoring | Monitors the behavior of electricity market participants |
That role of tendering works is precisely what was at issue in the case decided by the Supreme Court.
Frequently asked questions
What did the Supreme Court decide about Chile's grid operator?
It upheld the Coordinator's appeal and overturned the 500 UTA fine imposed by the competition tribunal over a 2022 transmission tender.
Who sued the Coordinator?
Ferrovial Power Infrastructure Chile, before the Competition Tribunal (TDLC).
Who chairs Chile's National Electricity Coordinator?
Humberto Espejo, who leads the new board.
What does the National Electricity Coordinator do?
It operates Chile's power system and tenders transmission expansion works.
