By means of Executive Decree No. 515, dated September 29, 2026, the General Regulations to the Organic Law of the Public Electricity Service were amended. Among other changes, the Decree introduces a specific regime governing the electricity supply of mining and petroleum projects, establishing new rules on self-generation, self-supply and connection to the National Interconnected System (“S.N.I.”). The Decree will enter into force upon its publication in the Official Gazette.
- Mining Projects Not Connected to the S.N.I.
Mining projects that are not connected to the S.N.I. will be responsible for their own self-generation. The regulation provides that such self-generation will operate on the basis of the corresponding mining title and that the project’s responsibility will encompass the construction, operation and maintenance of its electrical systems, including self-generation infrastructure.
For purposes of the electricity sector, these projects will only be required to provide the information requested by the Ministry responsible for the sector or the Electricity Regulation and Control Agency (“ARCONEL”) for planning, statistical and informational purposes, in accordance with the regulations to be issued.
- Mining Projects Connected to the S.N.I.
For mining projects connected to the S.N.I., their authorizing instruments must include self-generation or self-supply provisions, as applicable. The reform establishes a differentiated regime based on the project’s maximum electricity demand.
Projects with a maximum demand of up to 10 MW may choose between two alternatives, to be agreed upon between the authority responsible for the mining sector and the applicant company. The first consists of remaining a regulated consumer of an electricity distribution company and implementing self-supply systems. The second allows the project to install self-generation systems and qualify its demand as self-consumption, in which case the project must supply 100% of its electricity demand.
In contrast, mining projects with a maximum electricity demand exceeding 10 MW must install self-generation systems, qualify as self-consumption and supply 100% of their electricity demand, in accordance with the regulations applicable to self-generation. In this case, the Decree does not provide an alternative allowing the project to remain solely a regulated consumer.
- Deadline Applicable to Self-Supply
For projects of up to 10 MW that choose to remain regulated consumers, the new regime refers to the coverage requirements and deadlines set forth in the Fourteenth Transitional Provision of the Regulations. As a general rule, this provision establishes an 18-month period for high-voltage tariff customers that do not have generation systems capable of supplying their own demand to implement such systems.
However, the article specifically applicable to mining projects establishes a particular rule for calculating this period: it expressly provides that, for such projects, the applicable deadlines will be calculated from the commencement of construction of the mining project.
The Fourteenth Transitional Provision exempts from the general obligation only certain consumers whose electricity use is associated with social assistance, public benefit, drinking water services or official entities; it does not establish a specific exemption for mining activities.
- General Rules on Self-Generation and Self-Supply
The reform also amends the general self-generation regime. The authority responsible for the electricity sector may authorize legal entities that produce electricity to develop self-generation projects intended to supply their own consumption points. Such projects may generate surplus electricity without limitation and supply it to regulated demand or large consumers. ARCONEL must establish the applicable technical and commercial conditions, as well as preferential conditions for surplus electricity generated from Non-Conventional Renewable Energy (“ERNC”, for its Spanish acronym) or transition generation, particularly with respect to the price and term for the sale of electricity to regulated demand.
With respect to self-supply, regulated consumers, large consumers and the self-consumption loads of self-generators may install generation systems and inject electricity into the distribution grid. Regulated consumers must pay the applicable charges for the use or availability of the distribution and/or transmission networks. Nominal capacity will be subject to ARCONEL regulations and the corresponding connection feasibility study.
Authorization for the installation and operation of self-supply systems by regulated consumers will be granted by the relevant distribution or transmission company, as applicable, while large consumers and the self-consumption loads of self-generators must obtain authorization from ARCONEL. The specific requirements and procedures must be further developed through regulation.
- Energy Deficits and High-Voltage Customers
The reform is also relevant to mining projects operating as high-voltage tariff customers. During periods of energy deficit, rationing, capacity shortages or grid conditions that may result in load disconnections, ARCONEL may authorize the use of emergency generation owned by the user or provided by third parties.
During such periods, the National Electricity Operator (“CENACE”) may order the disconnection from the S.N.I. of high-voltage tariff consumers whose demand exceeds the threshold established in the Regulations. These users must have generation systems capable of supplying their entire energy and capacity demand.
- Oversight, Consequences and Regulatory Development
The new provision specifically applicable to mining projects does not establish a fine or a specific ground for termination of the mining title for failure to comply with these obligations. Nevertheless, the regime provides for information and oversight obligations under ARCONEL and, in the case of high-voltage users, the possibility of disconnection during the energy deficit or contingency circumstances provided for in the Regulations.
ARCONEL must monitor and oversee the implementation of the generation systems subject to the Fourteenth Transitional Provision and may request information from consumers, electricity distribution companies and CENACE.
In addition, the Decree grants ARCONEL a period of eight months from its entry into force to issue the technical and commercial regulations required for implementation of the reforms. Any arrangements requiring specific technical or commercial regulations will become applicable upon the entry into force of the corresponding regulations.
- Entry into Force
Executive Decree No. 515 was executed on September 29, 2026, and provides that it will enter into force upon its publication in the Official Gazette.
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This is a summary of legal developments of interest and therefore should not be construed as legal advice. If you have any questions, please contact the AVL team.