Enel Americas Annual Report 2008

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FY2008 Annual Report · Enel Americas

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A N N U A L R E P O R T

Santiago Stock Exchange
New York Stock Exchange
Madrid Stock Exchange

ENERSIS
ENI
XENI

Enersis S.A. was initially constituted with the name
Compañía Metropolitana de Distribución Eléctrica S.A., but
changed its name to Enersis S.A. on August 1, 1988. Its
capital is ThCh$2,824,882,834 divided into 32,651,166,465
shares.

Its shares are quoted in the Chilean stock
exchanges, on the New York Stock Exchange in the
form of American Depositary Receipts (ADRs), and the
Latin American Securities Exchange of the Madrid Stock
Exchange (Latibex).

Its principal business is the exploitation,
development, operation, generation, distribution,
transmission, transformation and/or sale of energy in
any of its forms or nature, directly or through other
companies, plus activities in telecommunications and
the provision of engineering advisory services in Chile

and abroad, and to invest and manage its investments in
subsidiary and affiliate companies.

Its total assets amount to ThCh$14,399,627,877 as

of December 31, 2008.

Enersis controls and manages a group of companies
that operate in the electricity markets of 5 countries
in Latin America. During 2008, it produced a net
income of ThCh$570,883,101 and operating income of
ThCh$1,978,797,458.

As of the end of 2008, it employed 12,733 people

directly through its subsidiary companies in the region.

ENERSIS MANAGEMENT

CHAIRMAN
PABLO YRARRÁZAVAL VALDÉS
PHONE (56-2) 353 4663

CHIEF EXECUTIVE OFFICER
IGNACIO ANTOÑANZAS ALVEAR
PHONE (56-2) 353 4510

COMMUNICATION OFFICER
JOSÉ LUIS DOMÍNGUEZ COVARRUBIAS
PHONE (56-2) 353 4666

AUDITING OFFICER
ANTONIO ZORRILLA ORTEGA
PHONE (56-2) 353 4647

HUMAN RESOURCES OFFICER
FRANCISCO SILVA BAFALLUY
PHONE (56-2) 353 4610

INVESTOR AND SHAREHOLDER
RELATIONS

REGIONAL ACCOUNTING OFFICER
FERNANDO ISAC COMAS
PHONE (56-2) 353 4685

CHIEF INVESTMENTS AND RISKS OFFICER
RICARDO ALVIAL MUÑOZ
PHONE (56-2) 353 4682

REGIONAL CHIEF FINANCIAL OFFICER
ALFREDO ERGAS SEGAL
PHONE (56-2) 630 9130

CITIBANK NY
RICARDO SZLEZINGER
PHONE (1-212) 816 6852

SANTANDER CENTRAL HISPANO INVESTMENT
ENRIQUE ROMERO
PHONE (34-91) 289 3943

REGIONAL PLANNING
AND CONTROL OFFICER
RAMIRO ALFONSÍN BALZA
PHONE (56-2) 353 4684

GENERAL COUNSEL
DOMINGO VALDÉS PRIETO
PHONE (56-2) 353 4631

[ Contents ]

CHAIRMAN’S LETTER

HIGHLIGHTS OF 2008

COMPANY IDENTIFICATION

OWNERSHIP AND CONTROL

SHARE TRANSACTIONS

DIVIDEND POLICY 2008

INVESTMENT AND FINANCING POLICY 2008

MANAGEMENT AND PERSONNEL

THE COMPANY’S BUSINESSES

50 RISK FACTORS

54 DESCRIPTION OF ELECTRICITY BUSINESS BY COUNTRY

78 OTHER BUSINESSES

86 SUSTAINABILITY

IDENTIFICATION OF THE SUBSIDIARY AND ASSOCIATE COMPANIES

112 DECLARATION OF RESPONSIBILITY

114 CONSOLIDATED FINANCIAL STATEMENTS

224 UNCONSOLIDATED FINANCIAL STATEMENTS

256

FINANCIAL STATEMENTS OF THE SUBSIDIARIES

enersis08
ANNUAL REPORT

CHAIRMAN’S LETTER

ANNUAL REPORT
CHAIRMAN’S LETTER

In a year characterized by the real risk of suffering

electricity rationing in Chile’s central zone, Enersis and

its subsidiaries Endesa Chile and Chilectra took the

actions necessary for mitigating this risk and working

in cooperation with the authority with the objective of

seeking and designing suitable solutions for managing

this delicate situation.

We thus confirmed the position of leadership and

commitment that we have in the region, and especially

with Chile, ratifying our belief in alternatives that

contribute to guaranteeing electricity supplies in the

five countries where we operate (Argentina, Brazil,

Chile, Colombia and Peru).

We have the financial strength and necessary assets

for assuming this responsibility and continuing forward

as the leading electricity company in Latin America.

Dear Shareholder,

As Chairman of the Board of Enersis, I have pleasure

RESULTS

in presenting to you the Annual Report 2008 which

summarizes the company ’s ac tions in both the

Thanks to the diversified asset portfolio that we manage,

Generation and Transmission businesses and in

by having a presence in the electricity Generation,

electricity Distribution, plus the series of advances we

Transmission and Distribution businesses, added to the

have achieved in Sustainability.

fact that we operate in five countries in Latin America

Before commenting on the principal financial and

which enables us to stabilize our operating cash flows,

management indicators, I wish to thank each one of

Enersis produced a net income of 570,883 million

you in the name of Enersis for the trust placed in the

Chilean pesos in 2008, which represented a growth of

business project that I preside.

178% over the previous year.

enersis08
ANNUAL REPORT

At the operating level, revenues rose by 35%, ending

position and allowing 2008 to end with a healthy

Despite this tight energy scenario, and thanks to the

the year at 6,650,287 million Chilean pesos, increasing

liquidity position which may enable us to face new

measures taken by the government and the support of

our result by 45% to a total of 1,978,797 million Chilean

challenges and take advantage of growth opportunities

the private-sector companies, including Endesa Chile

pesos.

that may appear in the future.

and Chilectra, the crisis was overcome successfully with

This ratified the good progress of our businesses, a

no cuts having to be made to the people.

situation confirmed by the 48% increase in operating

CAPACITY AND CUSTOMERS

In the case of our generation subsidiary, this brought

income of the Generation and Transmission segment

forward the start-up of the San Isidro II combined-cycle

and the 43% rise in the Distribution segment, ending

By the end of 2008, our installed capacity in the region

plant, adding a total of 353 MW; it had already added

the year at 1,100,727 million Chilean pesos and 877,117

increased by 1.4% to 13,893 MW. Notable were the

248 MW in April 2007. During June, the Ojos de Agua,

million Chilean pesos respectively. Another element

start-ups of the San Isidro II combined-cycle and the Ojos

de 9 MW mini-hydroelectric plant started operating; this

that reflected the good performance for the year was

de Agua mini-hydroelectric plants, projects that added

capacity helped to meet the supply situation experienced

the company’s return on assets, which improved from

114 MW to Chile’s principal electricity grid (SIC).

by the central zone.

1.65% as of the end of 2007 to 3.96% as of the end

In the Distribution business, we added 443 thousand

Starting in March, Endesa Chile made its first offers

of 2008.

new customers, which equates to adding to our

in order to regulated customers could reduce their

The non-operating result produced a negative figure

operation a new mid-sized distribution company. In

consumption. This mechanism was channeled through

of 266,128 million Chilean pesos, which however was an

fact, our companies supplied electricity to 12.4 million

the electricity distributors which transferred the payment

improvement of 343,915 million Chilean pesos over the

customers, more than 45 million Latin American

for savings to the end users, and sought to reduce energy

loss of 610,043 million Chilean pesos in 2007.

residents.

It should be mentioned that the large increase in net

income for 2008 was partly explained by accounting

SUPPLY

effects and the appreciation of the currencies of the

demand and decrease the requests of the system.

Chilectra, our distribution subsidiary, launched a

campaign for promoting the efficient use of energy

and thus support and reinforce the savings campaign

different countries where we operate with respect to the

2008 was not an easy year, considering the real risk

introduced by the government in February 2008.

dollar, especially in Colombia and Brazil, a situation that

of a programmed rationing on the SIC, system that

All these actions were a reflection of a series of

will probably not be repeated in the coming years.

supplies over 90% of the Chileans. This was due to the

measures that the Enersis Group introduced and

While the accounting matter impacted positively, the

drought during the early months of the year, natural gas

carried out to reduce the risks of electricity rationing,

operation and management of the company’s businesses

restrictions and the blackout suffered by prevailing one

in collaboration with the Ministry of Energy and the

also did so, managing to maintain our solid financial

of the principal thermal plants in the grid.

National Energy Commission (CNE).

ANNUAL REPORT
CHAIRMAN’S LETTER

TRUST

OF ALL CHILEANS

better job and training opportunities, a situation that

will translate into better living conditions. This, also

In this summary, I would not wish to omit mentioning

In mid 2008, HidroAysén, the company in which Endesa

thanks to the development of trade and connectivity,

the financial crisis that affected and still affects the

Chile holds 51% of the share capital, submitted to the

will permit a greater integration of Aysén’s people with

economies of the world, a situation that nobody foresaw

relevant authority its Environmental Assessment Study

the rest of the country.

at the beginning of 2007 when the so-called sub-prime

(EAS) for the Aysén Hydroelectric project.

crisis exploded.

Enersis, as the controller of Endesa Chile, follows

PROJECTS

The lack of liquidity and confidence impacted our

the development of this project closely and in detail,

economy and will continue to do so to a greater or

knowing that its completion is of great importance for

In the business of Generation and in line with the

lesser degree depending on the productive sector in

Chile’s energy independence and growth.

commitment we assume of providing security of supply

which each company operates.

The five plants of HidroAysén will substitute fossil

in the countries where we operate, we submitted during

As Enersis Group, however, we think that the region is

better prepared to face the current situation, especially

Chile, which has a healthy macroeconomic position,

a recognized institutional structure and consolidated

capital markets.

fuels in generation, replacing at full capacity the emission
of 44 thousand tons daily of CO2, some 16 million tons
annually. This figure equates to the annual emission of
CO2 by the whole Chile vehicle park (excluding buses
and trucks).

2008 the Environmental Impact Declaration (EID) for the

Canela II wind farm, and work also continued on the

Bocamina II, Quintero Thermal Plant and GNL Quintero

Terminal projects. Progress was also made in the studies

for the Choshuenco, Neltume and Los Cóndores plants,

Despite the turbulences that affected the markets,

The project is designed to generate the least amount

all in Chile.

the price of our shares in the local stock exchange rose

of environmental impact and, of all the energy production

At the same time, we continue with the Santa Rosa

by 3% during 2008, ending the year at 165 Chilean

pesos per share.

forms in Chile and the whole world, hydroelectricity does
not emit CO2.

(new open cycle) project in Peru, and the El Quimbo

hydroelectric project in Colombia.

For their part, the shares of Endesa Chile and Chilectra

Preventing the hydroelec tric development of

In Distribution, the investments are and will be

ended the year with prices of 734 Chilean pesos and

Chile, with its consequent lower costs and less

oriented partly to attending the needs of our growing

1,450 Chilean pesos each respectively, which implied a

environmental impact, will necessarily imply the system’s

customer base and maintaining the high standards of

growth of 16% in the case of our generation subsidiary

growth through more expensive and contaminating

service quality which, among other parameters, are

and of 22% in the case of the distribution subsidiary.

alternatives.

measured by a reduction in the annual number of power

This is an evidence of the trust in our business and

At the s ame time, the initiative will mean a

cuts, a reduction in the duration of power cuts and the

the solid foundations of the Enersis Group, the parent

development opportunity for the inhabitants of the

provision of more reliable networks.

company of Endesa’s businesses in Latin America.

Region of Aysén, through the creation of new and

enersis08
ANNUAL REPORT

However, and considering the present global economic

Secondly, and with the firm conviction of contributing

- Contribution to the Endesa Spain Community

scenario, the company has the necessary tools for

to the educational and cultural development of Chile,

(ENDESA).

making this investment plan more flexible and thus

Enersis, El Mercurio newspaper and Universidad de

- Best Investor Relations Team in Chile, according to

adapting it without affecting our contribution to the

Los Andes decided to support and enliven the Chile

Capital magazine and Santander Global Banking &

security of electricity supplies in Latin America.

Bicentenary in Four Moments project.

Markets (Enersis).

The third event was related to the start-up of the

- First place in the category Corporate Governance

SUSTAINABILITY

Corporate Volunteers Program, an initiative that reflects

Practices, Utilities Sector, according to Investor

a culture committed to education and in which 15% of

Relations Global Rankings (Enersis).

W ith resp e c t to the ac tions t aken in ter ms of

the company’s personnel have already taken part.

- Best Managed Company in Latin America in the

Sustainability, which we understand as economic growth,

Lastly, and in our wish to contribute to knowledge,

Utilities Sector, according to Euromoney magazine

social progress and ecological balance, I can state with

preservation and care for biodiversity, the Enersis Group

(Enersis).

pride that during 2008 we carried out a series of tasks

and Fundación San Ignacio del Huinay prepared the book

- To p 10 i n T h e B e s t G o v e r n e d M a j o r L a t i n

within our principal focus of action: education.

Native Trees of Chile and the mock-up of the document

Corporations 2008 according to the consultancy

To summarize these actions, we can mention four

Marine Benthonic Fauna of the Chilean Patagonia.

Management & Excellence and LatinFinance

significant highlights:

Firstly, we are continuing to advance with our project

RECOGNITIONS

called Illuminating Monuments in the South of the

magazine (Enersis and Endesa Chile).

- Best Group Annual Report, according to Gestión

magazine and PricewaterhouseCoopers (Enersis,

World.

I should also like to share with you the series of

Endesa Chile and Chilectra).

Since its beginnings in Latin America in 2000 and

recognitions that we received during 2008, awards that

- Top 10 in the 4th CSR Ranking 2008, according to

until the end of 2008, this initiative has permitted the

confirm our practices and achievements.

Fundación PROhumana, CPC and Capital magazine

illumination, restoration and giving life to more than 80

These include:

(Endesa Chile).

religious and civil works in Chile, Peru and Colombia.

- Ten Best Companies for Working Mothers and

- Labor Safety Prize (Endesa Chile).

We have completed work on a total of 49 monuments

Fathers, according to Fundación Chile Unido and

- AmCham Prize for Good Corporate Citizenship

at the local level and, in 2008, inaugurated the lighting

Ya magazine of El Mercurio (Enersis, Endesa Chile

(Chilectra).

of the churches of Carahue, Villarrica and Molina.

and Chilectra).

- Cigré Prize for Innovation (Chilectra).

ANNUAL REPORT
CHAIRMAN’S LETTER3

- ACHS Prize for Effective Action in Safety Matters

A s the Enersis Group, we have the mission to

(Chilectra).

contribute to security in electricity supplies, providing

- Best Social Management Report, according to Acción

the best service in Latin America at a reasonable price

RSE (Chilectra).

and with respect for the environment.

Under this premise, based on a robust financial

BETTER SERVICE AND PERSONNEL

situation and assets of 22,625 million dollars, we will

be alert to new growth opportunities and the fulfillment

Everything mentioned in this report, both at the financial

of our investment plan in the five countries in which

and management levels, would not have been possible

we operate, especially in Chile; all this through the

without the decided support of ever y one of the

development of autochthonous, renewable and clean

workers and staff who form part of the companies of

resources like water, the resource that is everyone’s and

our business group.

for all Chileans.

As Chairman of Enersis, I would like to congratulate

every one for their work during 2008. Thanks to this,

Yours sincerely,

we have managed to close a good year despite the

energy tightness that affected Chile and the series of

problems that the global economy has faced and will

continue to face.

We have reaffirmed our leadership position in Latin

America and our solid financial position, a situation that

speaks very well of each of our employees and managers

as, without their work, we would not be capable of

achieving the objectives which we set ourselves as a

Pablo Yrarrázaval Valdés

company year by year.

Chairman

enersis08
ANNUAL REPORT

HIGHLIGHTS OF 2008

ANNUAL REPORT
HIGHLIGHTS OF 2008

At the end of January, and as part of the Donation

of Libraries program, Enersis donated, together with

El Mercurio, 500 books to the Municipal Library of

Paredones, located in Chile’s 6th Region.

Enersis was distinguished in March as the Best Managed

Company in Latin America in the Utilities Sector,

according to Euromoney magazine.

As part of the Illuminating Monuments in the South

of the World project, the lighting was restored to the

Sagrado Corazón de Jesús Cathedral in Villarrica in

March. Later in the year, the San Pablo de Carahue and

Nuestra Señora del Tránsito de Molina parish churches

were added.

In the 10th edition of Investor Relations Global Rankings

(IRGR 2008) in April, Enersis was awarded top place in

On March 19, the Enersis Group inaugurated the

the category Corporate Governance Practices Utilities

combined cycle of the San Isidro II thermal pant, thus

Sector.

adding 105 MW to the SIC.

enersis08
ANNUAL REPORT

During May, Enersis was distinguished as the Best

In May also, Enersis began the pilot run of the Corporate

On September 2, Enersis and its subsidiary Endesa

Investor Relations Team in Chile, heading the Top 100

Volunteers Program.

ranking in that category, measures by Capital magazine

Chile, with the principal local companies, successfully

celebrated Chile Day in the New York Stock Exchange

and Santander Global Banking & Markets.

In June, the company obtained an outstanding place

(NYSE).

in The Best Governed Major Latin Corporations 2008,

being among the Top 10 in this ranking.

In mid July, and as part of the Libraries Donation

program, Enersis presented, together with El Mercurio,

more than 400 books to the Pedro Mariño de Lobera

Municipal Library, Coronel, in Chile’s 8th Region.

The Enersis Group was distinguished in September

as being among the Ten Best Companies for Working

Mothers and Fathers.

ANNUAL REPORT
HIGHLIGHTS OF 2008

The Enersis Group, jointly with El Mercurio and

Earl y in S eptemb er, Ener sis organize d the 4th

During December, Enersis and Fundación San Ignacio del

Universidad de los Andes, officially launched the Chilean

International Conference for Chilean Issuers, an event

Huinay published the book “Native Trees of Chile”.

Bicentenary in Four Moments project in the first days

that was attended by leading economists, portfolio

of September.

managers and executives related to bank s and

The company Bureau Veritas Chile certified the total

The Enersis Group was recognized in September as

producing the Best Group Annual Report, according to

PricewaterhouseCoopers and Gestión Magazine.

investment funds.

gross declared capacity of the generating assets of the

Enersis Group in Latin America 2008, amounting to the

total of 13,893 MW, a 1.4% increase over the year

before.

Revenues grew by 35% to 6,650,287 million Chilean

pesos, explained by an increase of 33% in the

Generation and Transmission business and a rise of

35% in Distribution.

enersis08
ANNUAL REPORT

COMPANY IDENTIFICATION

ANNUAL REPORT
COMPANY IDENTIFICATION

Name

Domicile

Kind of company

Tax I/D No.

Address

Telephones

Fax

PO Box

Web Site

Enersis S.A.

Santiago, being able to open agencies or branches in other parts of the

country or abroad.

Open Corporation

94,271,000 - 3

Santa Rosa Nº 76, Santiago, Chile

(56-2) 353 4400 - (56-2) 378 4400

(56-2) 378 4788

1557, Santiago

www.enersis.cl

Electronic Mail

informaciones@e.enersis.cl

Inscription Registree N°

175

External Auditors

Subscribed & Paid Capital (ThCh$)

Chilean Stock Exhanges ticker N°

New York Stock Exchange ticker N°

Madrid Stock Exchange ticker N°

ADR Program Custodian Bank

ADR Program Depositary Bank

Latibex Custodian Bank

Latibex Link Entity

Deloitte & Touche

2,824,882,834

ENERSIS

ENI

XENI

Banco de Chile

Citibank N.A.

Banco Santander

Santander Central Hispano Investment S.A.

Chilean Credit Rating Agencies

Feller Rate and Fitch

International Credit Rating Agencies

Fitch, Moody’s and Standard & Poor’s

enersis08
ANNUAL REPORT

01. CONSTITUTION

bylaws approved by Resolution 409-S of July 17, 1981

On August 1, 1988, the company’s name was changed

of the Securities and Insurance Commission (SVS). The

to Enersis S.A. The latest amendment is that set out

The company that gave rise to Enersis S.A. was formed,

extract of the authorization for the incorporation and

in public deed dated April 13, 2006, certified by the

initially with the name Compañía Chilena Metropolitana

approval of the bylaws was registered in the Santiago

Santiago notary Patricio Zaldívar Mackenna, whose

de Distribucion Electrica S.A. by public deed dated

Trade Registry on page 13,099 Nº 7,269 for year 1981,

extract was registered in the Santiago Trade Register

June 19, 1981 granted by the notary Patricio Zaldívar

and were published in the Official Gazette of July 23,

for 2006, page 15,343, Nº 10,611 and published in the

Mackenna in Santiago, and was modified by public deed

1981. The bylaws of Enersis have since undergone a

Official Gazette on April 22, 2006.

dated July 13 the same year before the same notary.

number of amendments.

The company’s incorporation was authorized and its

ANNUAL REPORT
COMPANY IDENTIFICATION

02. CORPORATE OBJECTS

Company’s objects are to explore, develop, operate,

generate, distribute, transmit, transform and /or

sell energy in any of its forms or types, in Chile or

abroad, directly or through other companies, and

telecommunications activities and the provision of

engineering consultancy in Chile and abroad. It may

also invest and manage its subsidiaries and affiliate

companies, be these generator s, transmit ter s,

distributors or traders of electricity or whose business

is any of the following: (i) energy, in any of its forms or

nature, (ii) the supply of public utilities or whose main

raw material is energy, (iii) telecommunications and IT,

and (iv) trading over the internet.

In complying with its main objects, the company will

carry out the following functions: a) promote, organize,

create, modify, dissolve or liquidate companies of any

services; financial, technical, legal and auditing advice;

trading and disposal of all kinds of movable and

nature which have similar corporate objects to its own;

and in general any type of service necessary for their

immovable assets, either directly or through subsidiary

b) propose investment, financing and business policies

best performance.

or affiliate companies; ii) all kinds of financial assets,

to subsidiary companies, as well as accounting criteria

In addition to its main objects and acting within

including shares, bonds and debentures, commercial

and systems that these should follow; c) supervise

the limits established by the Investment and Financing

papers and in general all kinds of titles or securities

subsidiary company management: d) provide subsidiary

Policy approved by the general shareholders meeting,

and company contributions, either directly or through

or associate companies with the necessary financing for

the Company may invest in: i) the acquisition, operation,

subsidiary or affiliate companies.

their business development and provide management

construction, rental, administration, intermediation,

enersis08
ANNUAL REPORT

OWNERSHIP AND CONTROL

ANNUAL REPORT
OWNERSHIP AND CONTROL

01. OWNERSHIP STRUCTURE

The company capital is divided into 32,651,166,465 shares of no par value, in the same sole series.

As of December 31, 2008, all the shares were subscribed and paid, distributed in the following manner:

Shareholder

Endesa Latinoamérica S.A.

Pension Fund Managers

ADR’s (Citibank N.A. Depositary Bank, Rule N°1,375 SVS)

Stockbrokers, Insurance Companies & Mutual Funds

Banco de Chile (on behalf of third parties)

Foreign Investment Funds

Others

Total Acciones

Number of Shares

Shareholding

19,794,583,473

5,584,380,494

3,563,352,750

1,784,596,797

873,795,010

96,656,413

953,801,528

60.62%

17.10%

10.91%

5.47%

2.68%

0.30%

2.92%

32,651,166,465

100.00%

enersis08
ANNUAL REPORT

02. IDENTIFICATION OF THE
CONTROLLERS

03. LIST OF MAJOR SHAREHOLDERS

As of December 31, 2008, Enersis was owned by 8,241 shareholders. The major were:

According to Chapter XV of Law 18,045, the direct

controller of the company is Endesa Latinoamérica, S.A.,

Name

Endesa Latinoamérica S.A.

a Spanish corporation that holds 60.62% of Enersis.

Citibank N.A. (Depositary Bank, Rule N°1,375 SVS)

Endesa Latinoamérica, S.A., in turn is controlled 100%

by ENDESA, S.A., a corporation located in the Spain

Kingdom and whose main shareholders as of December

31, 2008, and according to the CNMV (Spanish National

Securities Market Commission) are: ENEL ENERGY

EUROPE S.r.L. with a 67.053% shareholding (ENEL

AFP Provida S.A.

AFP Habitat S.A.

AFP Capital S.A.

AFP Cuprum S.A.

Banco de Chile (on behalf of this parties)

Banchile Corredores de Bolsa S.A.

LarrainVial S.A. Corredora de Bolsa

AFP Planvital S.A.

Celfin Capital S.A. Corredores de Bolsa

ENERGY EUROPE S.r.L in turn is controlled 100% by

Banco Itaú (on behalf of investors)

Tax No.

59,072,610-9

97,008,000-7

98,000,400-7

98,000,100-8

98,000,000-1

98,001,000-7

97,004,000-5

96,571,220-8

80,537,000-9

98,001,200-K

84,177,300-4

76,645,030-K

Sub total: 12 shareholders

Others: 8,229 shareholders

Total: 8,241 shareholders

ENEL S.p.A); ACCIONA, S.A. with a 5,01% shareholding

and FINANZAS DOS, S.A. with 20.0% (FINANZAS DOS,

S.A. in turn is controlled 100% by ACCIONA, S.A.).

The ENDESA, S.A. free float as of December 31, 2008

was 7,937%.

On March 26, 2007, ACCIONA, S.A., and ENEL

ENERGY EUROPE S.r.L., entered into a shared-

management agreement with respect to ENDESA, S.A.

The text of this agreement was reported to the CNMV

as material information on the same date of its signing

and can be consulted on that authority’s web site

(www.cnmv.es).

Number of Shares

Shareholding

19,794,583,473

3,563,352,750

1,744,595,549

1,341,201,242

1,250,054,362

1,069,960,516

873,795,010

447,694,539

187,819,735

178,568,825

136,592,147

127,334,804

30,715,552,952

1,935,613,513

32,651,166,465

60.62%

10.91%

5.34%

4.11%

3.83%

3.28%

2.68%

1.37%

0.58%

0.55%

0.42%

0.39%

94.08%

5.92%

100.00%

ANNUAL REPORT
OWNERSHIP AND CONTROL

04. MAJOR OWNERSHIP CHANGES

The changes of greatest importance in the ownership of Enersis in 2008 were:

Name

Citibank N.A. (Depositary Bank, Rule N°1,375 SVS)

AFP Provida S.A.

AFP Habitat S.A.

AFP Capital S.A. (*)

AFP Cuprum S.A.

Banco de Chile (on behalf of this parties)

Banchile Corredores de Bolsa S.A.

Banco Itaú (on behalf of investors)

Santander S.A. Corredores de Bolsa

Bolsa Electrónica de Chile

Shares as of

31/12/2007

2,890,139,300

1,790,291,654

1,513,040,675

1,284,346,556

949,141,449

471,646,933

522,653,676

168,196,303

147,525,675

Note:
(*) AFP Capital S.A. is the result of the merger of AFP Santa María & AFP Bansander.

Shares as of

31/12/2008

3,563,352,750

1,744,595,549

1,341,201,242

1,250,054,362

1,069,960,516

873,795,010

447,694,539

127,334,804

126,410,661

71,994,378

Change in No.

of Shares

673,213,450

-45,696,105

-171,839,433

-34,292,194

120,819,067

402,148,077

-74,959,137

127,334,804

-41,785,642

-75,531,297

05. SUMMARY OF SHAREHOLDERS’ COMMENTS AND PROPOSALS

Enersis received no comments with respect to the progress of the business during 2008 by the majority shareholders

or groups of shareholders representing 10% or more of the issued shares with voting rights, in accordance with the

provisions of article 74 of Law 18,046 and articles 82 and 83 of the regulations to the Corporations Law.

enersis08
ANNUAL REPORT

SHARE TRANSACTIONS

ANNUAL REPORT
SHARE TRANSACTIONS

01. STOCK EXCHANGE TRANSACTIONS

The quarterly transactions of the last 3 years on the stock exchanges where Enersis shares are traded, both in Chile,

through the Santiago Stock Exchange (Bolsa de Comercio de Santiago), and the Chile Electronic Stock Exchange (Bolsa

Electronica de Chile), and the Valparaiso Stock Exchange (Bolsa de Valores de Valparaíso ), and in the United States

of America and Spain through the New York Stock Exchange (NYSE) and the Latin American Securities Exchange on

the Madrid Stock Exchange (Latibex) (Bolsa de Valores Latinoamericanos de la Bolsa de Madrid (Latibex) respectively,

are detailed below:

SANTIAGO STOCK EXCHANGE

During 2008, 9,609 million shares were traded at

the Santiago Stock Exchange, which is equivalent to

1,568,149 million Chilean pesos. As of December, the

closing share price was 164.73 Chilean pesos.

CHILE ELECTRONIC STOCK EXCHANGE

1,309 million shares were traded at the Chile Electronic

Stock Exchange during the year, the equivalent of

209,642 million Chilean pesos. The share price closed

at 166.50 at December 2008.

Period

1st Quarter 2006
2ndt Quarter 2006
3rd Quarter 2006
4th Quarter 2006
Total 2006
1st Quarter 2007
2ndt Quarter 2007
3rd Quarter 2007
4th Quarter 2007
Total 2007
1st Quarter 2008
2ndt Quarter 2008
3rd Quarter 2008
4th Quarter 2008
Total 2008

Period

No. of Shares

1,963,504,194
1,391,561,107
1,424,604,249
2,935,194,633
7,714,864,183
2,326,545,937
2,281,519,210
2,623,759,573
3,104,262,960
10,336,087,680
2,629,967,374
2,353,763,372
1,810,012,396
2,815,324,441
9,609,067,583

No. of Shares

363,061,858
280,361,371
278,723,806
551,462,369
1,473,609,404
482,727,433
327,721,596
433,727,621
504,779,498
1,748,956,148
528,349,339
281,269,910
222,175,773
277,018,070
1,308,813,092

Amount (Pesos)

Average Price

241,782,332,100
170,737,146,206
185,750,114,705
471,034,884,328
1,069,304,477,339
403,238,785,712
448,872,471,686
482,941,651,473
546,181,448,622
1,881,234,357,493
369,032,945,308
407,183,479,315
312,772,735,787
479,160,238,375
1,568,149,398,785

Amount (Pesos)

44,427,922,583
34,161,027,229
36,216,066,265
88,445,858,217
203,250,874,294
83,082,386,777
64,327,071,276
79,890,053,929
87,569,943,661
314,869,455,643
76,278,908,151
48,515,676,390
38,114,037,557
46,733,014,629
209,641,636,727

123.14
122.69
130.39
160.48

173.32
196.74
184.06
175.95

140.32
172.99
172.80
170.20

Average Price

122.37
121.85
129.94
160.38

172.11
196.29
184.19
173.48

144.37
172.49
171.55
168.70

enersis08
ANNUAL REPORT

VALPARAISO STOCK EXCHANGE

50 million shares were traded on the Valparaiso Stock

Exchange, amounting to 8,335 million Chilean pesos.

The share price closed at 163.84 at December 2008.

NEW YORK STOCK EXCHANGE (NYSE)

The Enersis stock started trading on the New York Stock

Exchange (NYSE) on October 20, 1993. An Enersis ADS

consists of 50 shares and its mnemonic name is ENI.

Citibank N.A. acts as the depositary bank and Banco

de Chile as the custodian in Chile.

During 2008, 109 million ADS were traded in the

United States of America amounting to 1,691 million

dollars. The December ADS closing price was 12.74

dollars.

Period

No. of Shares

Amount (Pesos)

Average Price

11,090,794
7,727,889
8,279,320
16,427,067
43,525,070
8,364,095
9,737,577
7,417,521
16,507,087
42,026,280
12,601,763
20,095,015
4,196,431
13,461,949
50,355,158

1,365,417,295
938,354,614
1,049,392,923
2,582,363,519
5,935,528,351
1,446,466,587
1,914,700,194
1,362,390,508
2,947,390,529
7,670,947,818
1,826,943,424
3,470,065,340
727,400,548
2,310,726,034
8,335,135,346

123.11
121.42
126.75
157.20

172.94
196.63
183.67
178.55

144.98
172.68
173.34
171.65

No. of Shares

Amount (Dollars)

Average Price

24,652,200
20,778,900
13,510,900
20,414,300
79,356,300

19,608,400
19,283,100
22,964,900
21,992,500
83,848,900

30,348,500
18,772,700
25,112,963
34,750,666
108,984,829

290,941,664
241,808,215
161,595,768
299,067,454
992,963,101

314,610,895
358,148,873
411,880,074
393,529,397
1,478,169,239

459,142,457
344,723,090
418,886,734
467,921,193
1,690,673,474

11.78
11.64
11.96
14.65

16.04
18.57
17.94
17.89

15.13
18.36
16.68
13.47

ANNUAL REPORT
SHARE TRANSACTIONS

LATIN AMERICAN SECURITIES MARKET ON THE

Period

No. of Shares

Amount (Euros)

Average Price

MADRID STOCK EXCHANGE (LATIBEX)

The Enersis shares started trading on the Latin American

Securities Exchange of the Madrid Stock Exchange

(Latibex) on December 17, 2001. The company’s

dealing unit is 50 shares and its mnemonic name is

XENI. Santander Central Hispano Investment S.A. acts as

the linking agent and Banco Santander is the custodian

in Chile.

During 2008, 1.5 million shares were traded, the

equivalent of 16 million euros. The closing share price

as of December was 9.11 euros.

472,690
479,532
433,281
475,391
1,860,894
468,101
426,654
206,383
250,092
1,351,230
574,208
317,115
349,868
243,642
1,484,833

4,652,963
4,411,956
4,059,131
5,367,646
18,491,696
5,720,875
5,826,061
2,701,883
3,023,238
17,272,057
6,082,911
3,703,245
3,917,120
2,472,402
16,175,678

9.84
9.20
9.37
11.29

12.22
13.66
13.09
12.09

10.59
11.68
11.20
10.15

02. STOCK TRANSACTIONS BY DIRECTORS AND SENIOR EXECUTIVES

Shareholder

Tax No.

Purchase/

Date of

Number

Trans-action

Total Amount

Object of the

Sale

Transaction in

of Shares

Unit Pice

of Transaction

Transaction

Share-holders

Traded

(Pesos)

Relationship

to Company

Jorge Omar Ale Yarad

Ricardo Alvial Muñoz

8,360,211-2

7,330,389-3

Sale

Marcos Cruz Sanhueza

10,702,983-4

Purchase

05/20/2008

08/11/2008

10/09/2008

21,208

10,000

86,000

164.00

187.00

150.00

3,478,112

1,870,000

Financial Investment

General Manager Waters East Santiago

Financial Investment

Risks and Investments Director

12,900,000

Financial Investment

Taxation Manager

enersis08
ANNUAL REPORT

DIVIDEND POLICY 2008

ANNUAL REPORT
DIVIDEND POLICY 2008

01. DISTRIBUTABLE EARNINGS

02. DIVIDEND POLICY 2008

The distributable earnings for 2008 are as follows:

The board explained to the general shareholders meeting

The total dividend will be defined by the ordinary

of Enersis held on April 1, 2008, the dividend policy that

shareholders meeting to be held during the first four

Millions of Ch$

the board expected to follow during 2008: to distribute

months of 2009.

Net income for year

Amortization negative goodwill (less)

Distributable earnings

570,883

6,219

564,664

as a total dividend an amount equivalent to 70% of the

Compliance with the above program will be subject,

net income for 2008.

in terms of dividends, to the net income actually

The board distributed an interim dividend, with charge

produced and also the results of the projections made

to the net income for 2008, representing 15% of the

by the company periodically or the existence of certain

net income as of September 30, 2008, according to the

conditions, as the case may be.

financial statements as of that date, which was paid in

The dividend policy that the board expects to follow

December 2008.

during 2009 will be approved by the board at the

appropriate time and duly informed to shareholders at

the ordinary shareholders meeting planned for April

15, 2009.

No. Dividend

Type of Dividend

Closing Date

Payment Date

Pesos per Share

Charged to the Year

Final

Interim

Final

Interim

Final

Interim

04/14/05

03/28/06

12/19/06

05/16/07

12/20/07

04/24/08

12/13/08

04/20/05

04/03/06

12/26/06

05/23/07

12/27/07

04/30/08

12/19/08

0.416540

1.000000

1.110000

4.890330

0.531190

3.412560

1.539310

2004

2005

2006

2007

2008

enersis08
ANNUAL REPORT

INVESTMENT AND FINANCING POLICY 2008

ANNUAL REPORT
INVESTMENT AND FINANCING POLICY 2008

The ordinary shareholders meeting held on April 1,

B) MA XIMUM INVESTMENT LIMITS

2008 approved the Investment and Financial Policy

indicated below:

The investment limits for each area are the following:

01. INVESTMENTS

• Investments in its subsidiaries in the electricity sector,

the amounts needed for the subsidiaries to meet their

A) AREAS OF INVESTMENT

respective corporate objects.

• Investments in other subsidiaries such that sum of

Enersis will invest, as authorized by its bylaws, in the

the proportions of the fixed assets corresponding

following areas:

to each of these other subsidiaries does not exceed

• Contributions for investment in or for the creation

the proportion of fixed assets corresponding to the

of subsidiary or affiliate companies whose activity

shareholdings in the subsidiaries in the electricity

is aligned, related or linked to any forms or types of

sector and of Enersis.

energy or the supply of public utilities or whose main

raw material is energy.

• Investment s consistent with the acquisition,

exploitation, construction, rental, administration,

trading and disposal of any class of immovable assets,

whether directly or through subsidiary companies.

• Other investments in all kinds of financial assets, titles

or securities.

enersis08
ANNUAL REPORT

PARTICIPATION IN THE CONTROL OF THE

AREAS OF INVESTMENT

In order to control the investment areas and in

accordance with Enersis’s corporate objects, the

following procedure will be pursued wherever is

possible:

At the general shareholders meetings of the

subsidiary and affiliate companies, the appointment

of directors consistent with the Enersis shareholding in

that company shall be proposed, these preferably being

from among directors or executives of the company or

its subsidiaries.

• Investment, financial and commercial policies will be

proposed to the subsidiary companies, as well as the

accounting criteria and systems they should follow.

• The management of the company subsidiaries and

affiliates will be supervised.

• Permanent control of debt limits will be maintained,

to the point that the investments or contributions

implemented or that are planned for implementation

do not represent an unusual variation from the

parameters defined by the maximum investment

limits.

ANNUAL REPORT
INVESTMENT AND FINANCING POLICY 2008

02. FINANCING

A) MA XIMUM LEVEL OF DEBT

C) MANAGEMENT POWERS TO AGREE THE

GRANTING OF COLLATERAL WITH CREDITORS

The maximum level of debt of Enersis is a debt to equity

the granting of tangible collateral or guarantees in

plus minority interest ratio of 1.75 times, based on the

accordance with the law and the corporate bylaws.

The company’s management may agree with creditors

consolidated balance sheet.

D) ASSETS ESSENTIAL TO THE FUNCTIONING

B) MANAGEMENT POWERS TO AGREE DIVIDEND

OF THE COMPANY

RESTRICTIONS WITH CREDITORS

Dividend restrictions may only be agreed with creditors if

subsidiary Chilectra S.A. are considered essential assets

previously approved by a shareholders meeting (ordinary

for the functioning of Enersis.

The shares representing Enersis’s shareholding in its

or extraordinary).

enersis08
ANNUAL REPORT

MANAGEMENT AND PERSONNEL

01. BOARD OF DIRECTORS

ANNUAL REPORT
MANAGEMENT AND PERSONNEL

CHAIRMAN

VICE CHAIRMAN

DIRECTOR

Pablo Yrarrázaval
Valdés
Chairman of the Santiago
Stock Exchange
Tax ID No.: 5,710,967-K

Rafael Miranda
Robredo
Industrial Engineer
Instituto Católico de Artes
e Industrias, Madrid
Tax ID No.: 48,070,966-7

Pedro Larrea
Paguaga
Mining Engineer
Universidad
Politécnica de Madrid
Tax ID No.: 48,077,275-K

Hernán Somerville
Senn
Lawyer
Universidad de Chile
Tax ID No.: 4,132,185-7

Eugenio Tironi
Barrios
Sociologist
School of Senior Studies in
in Social Sciences,
Paris, France
Tax ID No.: 5,715,860-3

Patricio Claro
Grez
Civil Industrial Engineer
Universidad de Chile
Tax ID No.: 5,206,994-7

Juan Eduardo Errázuriz
Ossa
Civil Engineer
Pontificia Universidad
Católica de Chile
Tax ID No.: 4,108,103-1

SECRETARIO
DEL DIRECTORIO

Domingo Valdés
Prieto
Lawyer
Universidad de Chile
Tax ID No.: 6,973,465-0

Enersis is managed by a 7-member board of directors

DIRECTORS’ REMUNERATION

each of whom remains in office for a period of 3 years

and may be reelected. The current board of directors was

Pursuant to article 33 of the Corporations Law 18,046,

elected at the ordinary shareholders meeting held on April

the ordinary shareholders meeting held on April 1, 2008

1, 2008. The chairman, vice-chairman and the secretary

approved the remuneration to be paid to the members of

to the board were appointed at a board meeting held on

the board for 2008.

the same day.

enersis08
ANNUAL REPORT

The amounts paid to the directors as of December 31, 2008 as members of the board as such, and as members of the Directors’ Committee and Audit Committee, and those

company directors who are acting or have acted during 2008 as directors of subsidiaries, are detailed below:

As of December 31, 2008 Chilean Pesos

Name

Position

Period of

Performance

Pablo Yrarrázaval Valdés

Rafael Miranda Robredo

Pedro Larrea Paguaga

Hernán Somerville Senn

Eugenio Tironi Barrios

Patricio Claro Grez

Juan Eduardo Errázuriz Ossa

Juan Ignacio de la Mata Gorostizaga

Chairman

01/01/08 al 12/31/08

Vice Chairman

01/01/08 al 12/31/08

Director

01/01/08 al 12/31/08

04/01/08 al 12/31/08

01/01/08 al 03/31/08

TOTAL

Note:
(*) Amountss

Board of

Enersis (*)

53,444,563

40,334,747

25,951,460

26,722,281

19,539,745

6,457,681

225,895,039

Board of

subsidiaries

Directors’

Audit

Committee (*)

Profit

Sharing

8,939,058

5,862,573

2,982,012

2,155,705

26,817,174

16,862,863

ADVISORY EXPENSES OF THE BOARD

02. DIRECTORS’ COMMITTEE

ACTIVITIES OF THE DIRECTORS’ COMMITTEE

The board incurred no expenses in advisory services

In accordance with article 50 bis of the Corporations Law

The Directors’ Committee met 12 times during the

during 2008.

18,046, Enersis has a 3-member Directors’ Committee

year 2008. It examined and approved the information

whose powers and duties are set out in that article. On

relating to the operations referred to in article 89 of the

April 1, 2008, the company’s board appointed Pablo

Corporations Law 18,046, doing reports over the above

Yrarrázaval Valdés (related to the controller), Hernán

mentioned transactions. In addition, specific issues were

Somerville Senn (related to the controller) and Patricio

dealt with at these meetings, as detailed below:

Claro Grez (independent of the controller) as members

At its first meeting of the year, on January 30,

of the Directors’ Committee. In turn, the Enersis

2008, the Directors’ Committee agreed to propose to

Directors’ Committee, at its meeting hold on April 25,

the general shareholders meeting that the firms Feller

2008 appointed Pablo Yrarrázaval Valdés as its chairman

Rate Clasificadora de Riesgo Limitada and Fitch Chile

and Domingo Valdés Prieto as its secretary.

Clasificadora de Riesgo Limitada be appointed as the

ANNUAL REPORT
MANAGEMENT AND PERSONNEL

company’s national private credit-rating agencies and

and between Enersis S.A. and Corpbanca, in accordance

stating that this met conditions of equity similar to those

the firms Fitch Ratings, Moody’s Investors Service and

with Resolution 13/2007 adopted by the meeting of the

habitually prevailing in the market and made its report

Standard & Poor’s International Ratings Services as its

Directors’ Committee on May 29, 2007, declaring that

in accordance with article 50 bis No.3 of Law 18,046. It

international credit-rating agencies for 2008. It approved

these operations meet the conditions of equity similar

also examined the operation consisting of renewing the

a budget proposal of the Directors’ Committee for 2008

to those habitually prevailing in the market and made

Group’s material damages and civil liability insurance

and decided to submit this proposal to the board and

its report in accordance with article 50 bis No.3 of Law

program within the “Cautiva” scheme for the period

to the general shareholders meeting of Enersis S.A. It

18,046.

2008-2009, since the offers received met conditions

approved the text of the report that should be presented

In its third meeting on March 28, 2008, the

of equity similar to those habitually prevailing in the

to the general shareholders meeting about the activities

Directors’ Committee agreed to propose to the board, in

market, issuing their respective report.

of the Committee during 2007, and on the expenses

order for it in turn to propose to the general shareholders

At it s six th meeting on June 25, 2008, the

that it has incurred, including those of advisers during

meeting, the appointment of the independent external

Committee examined the transactions of Enersis S.A.

that year.

auditing firm Deloitte & Touche for the year 2008.

with related parties during May 2008.

In its second meeting on February 27, 2008,

It also examined the remunerations system and

At it s seventh meeting on July 31, 2008, the

the Directors’ Committee examined the company’s

compensation plans for the company’s managers and

Directors’ Committee examined the unconsolidated and

unconsolidated and consolidated financial statements

senior executives.

consolidated financial statements of the company as of

for 2007, their notes, statement of income and material

At its fourth meeting on April 25, 2008, which

June 30, 2008, their notes, statements of income and

information, plus the report of the external auditors

took place following the general shareholders meeting

material information.

and the inspectors of accounts. It was informed of

of April 1, 2008 which renewed the board of Enersis

At its eighth meeting held on August 29, 2008,

the report prepared by the external auditors on the

S.A., the Committee agreed to appoint as its chairman

the Directors’ Committee examined the contracting of

banking and money-broking businesses, as established

Pablo Yrarrázaval Valdés and Domingo Valdés Prieto as

services for the development and implementation of

in Joint Circular 960 of the Superintendency of Banks

its secretary. It also examined the unconsolidated and

a Taxation Consultation Portal, to be signed between

and Financial Institutions and the SVS, and the internal

consolidated financial statements of the company as of

the company and its subsidiary Synapsis Soluciones

control letter of Enersis S.A. dated February 19, 2008,

March 31, 2008, their notes, statements of income and

y Servicios IT Limitada (Synapsis), finding that it met

prepared by the external auditors Deloitte & Touche

material information.

conditions of equity similar to those habitually prevailing

in accordance with SVS Circular 422. The Committee

At its fifth meeting held on May 28, 2008, the

in the market, and issuing its report. It also examined the

also examined certain financial operations executed

Directors’ Committee examined the operation of

services contract for support in technical and scientific

between the subsidiary Endesa Chile and Corpbanca,

contracting CIEPLAN for arranging three seminars a year,

aspects of the book “Native Trees of Chile”, to be signed

enersis08
ANNUAL REPORT

between the company and its subsidiary Empresa de

approx.) to Constructora Logro S.A., a subsidiary of

03. AUDIT COMMITTEE

Ingeniería Ingendesa S.A. (Ingendesa), finding that

Sigdo Koppers S.A., a company in which Juan Eduardo

it met conditions of equity similar to those habitually

Errázuriz Ossa is a shareholder, who is also a director

The formation of the Audit Committee was approved

prevailing in the market and issuing its report.

of it and of Enersis S.A., the parent company of Endesa

by the Enersis board at its meeting held on June 29,

In the ninth meeting of September 24, 2008, the

Chile. The Directors’ Committee declared that the award

2005. The Audit Committee is separate from the

Committee examined the transactions of Enersis S.A.

met conditions of equity similar to those habitually

board and the Directors’ Committee, as required by

with related parties during August 2008.

prevailing in the market and issued its report. The

Corporations Law 18,046. The Audit Committee is a

At its tenth meeting on October 29, 2008, the

Committee also approved the timetable for its ordinary

requirement of the United States of America Sarbanes

Directors’ Committee examined the unconsolidated

meetings for 2009.

Oxley Act and the complementary regulations issued

and consolidated financial statements of the company

In the twelfth meeting of December 19, 2008, the

by the Securities and Exchange Commission (SEC) and

as of September 30, 2008, their notes, statements of

Committee examined the transactions of Enersis S.A.

the New York Stock Exchange (NYSE), as Enersis is an

income and material information. The Committee was

with related parties during November 2008.

issuer of American Depositary Receipts (ADRs) which are

also informed of certain financial transactions signed

In conclusion, the Directors’ Committee of Enersis

registered with the NYSE, and is also an issuer of bonds

between Chilectra S.A. and Corpbanca, in accordance

has complied with the matters set out in article 5º bis

registered in the United States of America. Its duties

with Resolution 13/2007 adopted by the meeting of the

of the Corporations Law 18,046 and has analyzed and

include the following: i) to be one of the proposers to

Directors’ Committee on May 29, 2007, which met the

contributed to the better development of the operations

the ordinary shareholders meeting of the appointment of

conditions of equity similar to those habitually prevailing

analyzed.

in the market.

the external auditors; ii) to be responsible for controlling

the performance of the Company’s external auditors;

At its eleventh meeting on November 28, 2008,

DIRECTORS’ COMMITTEE EXPENSES DURING

iii) initially approving the external audit services and

the Directors’ Committee noted that is was informed

2008

of the internal controls letter of Enersis S.A., dated

the various services provided by the external auditors;

and iv) to establish procedures for the reception and

November 15, 2008, prepared by the company’s

During the year 2008, the Directors’ Committee did not

management of claims in the accounting, internal control

external auditors Deloitte & Touche, referring to SVS

make use of the operating expense budget approved by

or auditing areas. The Enersis extraordinary shareholders

Circular 980. The Committee also examined the terms

the company’s ordinary shareholders meeting held on

meeting held on March 21, 2006 reformed its bylaws

of the bid adjudication made by Endesa Chile for the

April 1, 2008. The Committee has not had to hire the

to regulate the creation, integration, performance and

contract CAN-009.08 “Civil Works Canela II Wind

services of professional consultants for the performance

powers of the Audit Committee.

Farm”, for an amount of UF 351,060 (US$11,600,000

of their duties.

ANNUAL REPORT
MANAGEMENT AND PERSONNEL

ACTIVITIES OF THE AUDIT COMMITTEE

2007, plus the use of the expenses for that period

of Enersis S.A. as of December 31, 2007, its notes,

approved by the general shareholders meeting of April

statements of income and material information, plus

On April 1, 2008, the board of directors appointed

24, 2007. In accordance with the procedures relating

the report on these issued by the company’s external

Hernán Somer ville Senn, Patricio Claro Grez and

to the Ethics Channel and the Handling of Accusations

auditors. The Committee also noted that it had been

Juan Eduardo Errázuriz Ossa as members of the Audit

approved according to the provisions of the Sarbanes

formally and expressly informed of the internal controls

Committee, all of whom meet and declared meeting

Oxley Act, the Committee issued its opinion on each of

letter dated November 15, 2007 and that of February

the level of independence expected of members of

the accusations presented, provide guidelines to follow

19, 2008, both related to Enersis S.A. and signed by

the Audit Committee by the Sarbanes Oxley Act of the

in each of these and confirmed that the chairman of the

the company’s external auditors, Deloitte & Touche,

United States of America, the Securities and Exchange

Audit Committee should determine the convenience of

as referred to in SVS Circular 980, complemented by

Commission and the New York Stock Exchange, as

calling an extraordinary meeting of the Committee in

its Circular 422 dated December 6, 2007. It was also

their respective provisions are applicable to Enersis.

the event that the entity making the accusation justifies

formally and expressly informed of the report prepared by

The Enersis Audit Committee, at its meeting of April 25,

it in the opinion of the chairman. In addition, and as

the external auditors on the banking and money-broking

2008, unanimously agreed to appoint Hernan Somerville

stated in Section 202 of the Sarbanes Oxley Act, the

businesses during 2007. In accordance with the Audit

Senn as its chairman and Domingo Valdés Prieto as its

Audit Committee agreed to pre-approve the contracting

Committee’s internal regulations and the Statement on

Secretary. The Audit Committee met on eight occasions

of external audit services and those unrelated to the

Accounting Standards N° 61, the Committee revised and

during 2008, and the following specific subjects were

external audit to be provided by the external auditors

discussed with the external auditor, Deloitte & Touche,

discussed:

and which were presented to that meeting for their

the scope of its professional services, the coverage of the

In its ordinary meeting N°1/2008 held on January

prior approval. This Committee meeting also approved

audit, its independence, the opinions of the management

29, 2008, the Audit Committee approved the fees paid

the proposal of the Audit Committee’s budget for 2008

and accounting estimates, critical accounting policies

by the Enersis Group companies during 2007 to the

and agreed to submit the budget proposal to the board

and sensitive areas, significant transactions analyzed,

different external audit firms used, these being Deloitte

and the ordinary shareholders meeting of Enersis S.A.

changes in significant accounting policies, proposed

& Touche, Ernst and Young and KPMG, and authorized

in order for it to finally resolve on this matter. The

au dit adjus t ment s c ar r ie d o u t o r not , w r it ten

the estimate of proposed fees for the year 2008. The

Committee also agreed to approve the timetable for its

communications such as letters of representation and

Committee also approved the text of the report that had

ordinary meetings for 2008.

reports to the management, consultations and principal

to be presented to the general shareholders meeting

In its extraordinary meeting N°2/2008, held on

subjects discussed during the year, disagreements

and incorporated in the annual report of Enersis S.A

February 27, 2008, the Audit Committee examined the

with the management, considerations of fraud, state

about the activities carried out by the Committee during

unconsolidated and consolidated financial statements

of progress of the SOX 404 audit and convergence of

enersis08
ANNUAL REPORT

Chilean accounting principles to IFRS. It also examined

the convenience of calling an extraordinary meeting of

adjustments made for the first time to the company’s

favorably the supervision and evaluation of the work of

the Committee in the event that the entity making the

financial statements, complementing the presentation

the company’s external auditors made during 2007.

accusation justifies it in the opinion of the chairman. In

made at the previous meeting.

At its extraordinary meeting N°3/2008 held on

addition, and as stated in Section 202 of the Sarbanes

At its ordinary meeting N°7/2008 held on July 31,

March 28, 2008, the Audit Committee agreed to propose

Oxley Act, the Committee agreed to pre-approve the

2008, the Audit Committee examined the unconsolidated

to the ordinary shareholders meeting the appointment

contracting of certain auditing services and those

and consolidated financial statements of Enersis S.A.

of the firm of independent external auditors, Deloitte &

unrelated to the audit, to be provided by the external

as of June 30, 2008, its notes, statements of income

Touche, for the year 2008. In addition, and as stated in

auditors.

and material information. It also revised and approved

Section 202 of the Sarbanes Oxley Act, the Committee

At its extraordinary meeting N°5/2008 held on

the annual external audit plan and the means for

agreed to pre-approve the contracting of certain auditing

May 28, 2008, the Audit Committee, in accordance

carrying it out, thus complying with the respective

services and those unrelated to the audit, to be provided

with SOX 404, approved Enersis’s internal control

requirement in the Audit Committee regulations. In

by the external auditors.

structures and procedures necessary for its financial

accordance with the procedures relating to the Ethics

At its ordinary meeting N°4/2008 held on April 25,

reporting. The Committee also examined the draft

Channel and the Handling of Accusations approved

2008, following the holding on April 1, 2008 of the

Form 20-F, including the reconciliation with US GAAP

according to the provisions of the Sarbanes Oxley

ordinary shareholders meeting that renewed the board

of the company’s financial statements, and other related

Act, the Committee issued its opinion on each of the

of Enersis, the Audit Committee agreed to appoint

information required by the Securities and Exchange

accusations presented, provided guidelines to follow in

Hernán Somerville Senn as its chairman and Domingo

Commission (SEC) of the United States of America. It

each of these and confirmed that the chairman of the

as its secretary. It also examined the unconsolidated and

also examined the comparative presentation of the

Audit Committee should determine the convenience of

consolidated financial statements of Enersis S.A. as of

IFRS with the adjustments made for the first time to

calling an extraordinary meeting of the Committee in

March 31, 2008, its notes, statements of income and

the company’s financial statements. In addition, and

the event that the entity making the accusation justifies

material information. In accordance with the procedures

as stated in Section 202 of the Sarbanes Oxley Act,

it in the opinion of the chairman. As stated in Section

relating to the Ethics Channel and the Handling of

the Committee agreed to pre-approve the contracting

202 of the Sarbanes Oxley Act, the Committee agreed to

Accusations approved according to the provisions

of certain auditing services and those unrelated to the

pre-approve the contracting of certain auditing services

of the Sarbanes Oxley Act, the Committee issued its

audit, to be provided by the external auditors.

and those unrelated to the audit, to be provided by the

opinion on each of the accusations presented, provided

At its extraordinary meeting N°6 /2008 held

external auditors, presented on that occasion for its

guidelines to follow in each of these and confirmed that

on June 13, 2008, the Audit Committee examined

prior approval.

the chairman of the Audit Committee should determine

the comparative presentation of the IFRS with the

ANNUAL REPORT
MANAGEMENT AND PERSONNEL

At its ordinary meeting N°8/2008 held on October

EXPENSES OF THE AUDIT COMMITTEE DURING

29, 20 0 8, the Audit Commit te e e xamine d the

2008

unconsolidated and consolidated financial statements

of Enersis S.A. as of September 30, 2008, its notes,

The Audit Committee did not make use of the operating

statements of income and material information. In

expense budget in 2008 as approved by the company’s

accordance with the procedures relating to the Ethics

general shareholders meeting held on April 1, 2008.

Channel and the Handling of Accusations approved

The Committee did not need to hire the services of

according to the provisions of the Sarbanes Oxley

professional consultants for the performance of its

Act, the Committee issued its opinion on each of the

duties.

accusations presented, provided guidelines to follow in

each of these and confirmed that the chairman of the

Audit Committee should determine the convenience of

calling an extraordinary meeting of the Committee in

the event that the entity making the accusation justifies

it in the opinion of the chairman. As stated in Section

202 of the Sarbanes Oxley Act, the Committee agreed to

pre-approve the contracting of certain auditing services

and those unrelated to the audit, to be provided by the

external auditors.

enersis08
ANNUAL REPORT

04. SENIOR EXECUTIVES

REGIONAL CHIEF
ACCOUNTING
OFFICER

CHIEF
COMMUNICATIONS
OFFICER

REGIONAL CHIEF
PLANNING &
CONTROL OFFICER

CHIEF EXECUTIVE
OFFICER

CHIEF HUMAN
RESOURCES OFFICER

LEGAL COUNSEL

CHIEF AUDIT
OFFICER

CHIEF REGIONAL
FINANCE OFFICER

Fernando Isac
Comas
Economist
Universidad de
Zaragoza
Tax No.: 14,733,649-7

José Luis Domínguez
Covarrubias
Civil Engineer
Pontificia Universidad
Católica de Chile
Tax No.: 6,372,293-6

Ramiro Alfonsín
Balza
B.A. in Business
Administration
Pontificia Universidad
Católica de Argentina
Tax No.: 22,357,225-1

Ignacio Antoñanzas
Alvear
Mining Engineer
Universidad Politécnica
de Madrid
Tax No.: 22,298,662-1

Francisco Silva
Bafalluy
Public Administrator
Universidad de Chile
Tax No.: 7,006,337-9

Domingo Valdés
Prieto
Lawyer
Universidad de Chile
Tax No.: 6,973,465-0

Antonio Zorrilla
Ortega
Mining Engineer
Universidad Politécnica
de Madrid
Tax No.: 22,551,385-6

Alfredo Ergas
Segal
Commercial Engineer
Universidad de Chile
Tax No.: 9,574,296-3

05. ORGANIZATION STRUCTURE

CHAIRMAN
Pablo Yrarrázaval Valdés

CHIEF EXECUTIVE OFFICER
Ignacio Antoñanzas Alvear

ANNUAL REPORT
MANAGEMENT AND PERSONNEL

SEVERANCE PAID TO SENIORS EXECUTIVES

& MANAGERS

The sum of 114 million Chilean pesos was paid in 2008 for

this concept.

06. HUMAN RESOURCES COMPOSITION

The distribution of Enersis personnel, including information

related to subsidiaries in the five countries where the Group

operates in Latin America as of December 31, 2008, is the

Chief Communications Officer
José Luis Domínguez
Covarrubias

Chief Audit Officer
Antonio Zorrilla Ortega

following:

Chief Human Resources
Officer
Francisco Silva Bafalluy

Chief Regional Accounting
Officer
Fernando Isac Comas

Chief Regional Finance
Officer
Alfredo Ergas Segal

Chief Regional Planning
& Control Officer
Ramiro Alfonsín Balza

Legal
Counsel
Domingo Valdés Prieto

SENIOR EXECUTIVES & MANAGEMENTS FEES

SENIOR EXECUTIVES AND MANAGEMENT

The total gross remuneration received during 2008

INCENTIVE PLANS

by the senior executives mentioned above and other

managers of Enersis who do not report directly to the

Enersis has an annual bonus plans for its executives

chairman or the chief executive officer, totaled 3,108

based on compliance with objectives and the individual

million Chilean pesos.

level of contribution to the company’s results. This plan

includes a definition of the bonus range according to

levels of executive hierarchy. The bonuses ultimately

granted to the executives consist of a determined

number of gross monthly salaries.

Company

Enersis

Endesa Brasil (1)

Endesa Chile (2)

Chilectra

Edesur

Edelnor

Codensa

Synapsis (3)

CAM (4)

Manso de Velasco (5)

Managers
& Senior
Executives

Professionals
& Technicians

Workers &
Others

Total

124

2,394

2,120

533

1,893

346

916

701

1,159

363

257

157

669

211

424

232

2,806

2,442

717

2,590

571

932

810

1,596

TOTAL

252

10,202

2,279

12,733

Notes:
(1) Includes Ampla, Coelce, CIEN, Cachoeira Dourada, Fortaleza & CTM.
(2) Includes Ingendesa, Pangue, Pehuenche, Celta, San Isidro, Central
Costanera, El Chocón, Edegel, Emgesa, Enigesa, Endesa Argentina,
Fundación Endesa Colombia, EEPSA, CEMSA, Dock Sud & Túnel el Melón.

(3) Includes Synapsis Argentina, Synapsis Brasil, Synapsis Chile, Synapsis

Colombia & Synapsis Perú.

(4) Includes Cam Argentina, Cam Brasil, Cam Chile, Cam Colombia & Cam

Perú.

(5) Includes Soc. Agrícola de Cameros, Aguas Santiago Poniente, Const. y

Proyecto Los Maitenes, & Agrícola e Inmobiliaria Pastos Verdes.

enersis08
ANNUAL REPORT

THE COMPANIES BUSINESSES

ANNUAL REPORT
THE COMPANIES BUSINESSES

Businesses Structure

01. HISTORICAL SUMMARY

Generation

Distribution

(*)

(*) Transmission

Other Businesses

On June 19, 1981, Compañía Chilena de Electricidad S.A.

formed a new corporate structure which gave birth to

a parent company and three subsidiaries. One of these

was Compañía Chilena Metropolitana de Distribucion

Electrica S.A. In 1985, under the privatization policy

of the Chilean government, the process of transferring

the share capital of Compañía Chilena Metropolitana

de Distribucion Electrica S.A. to the private sector

was begun, ending finally on August 10, 1987. In this

process, the pension fund managers (AFPs), company

employees, institutional investors and thousands of small

shareholders joined the corporation Its organizational

structure was based on activities or operating functions

whose results were evaluated functionally and its

profitability was limited by a tariff structure as a result

of the company’s exclusive dedication to the business

of electricity distribution.

In 1987, the company’s board proposed forming a

division for each of the parent company’s activities.

Four subsidiaries were therefore created to manage

themselves as business units each with its own objects,

thus expanding the company’s activities toward other

non-regulated activities but linked to the main business.

This division was approved by the extraordinar y

shareholders meeting of November 25, 1987 which

enersis08
ANNUAL REPORT

defined their new corporate objects. Compañía Chilena

The development of the electricity distribution

02. EXPANSION AND DEVELOPMENT

Metropolitana de Distribucion Electrica S.A. thus became

business abroad has been implemented jointly with

an investment holding company.

its subsidiary Chilectra, a company that distributes

Enersis started its international expansion in 1992

On August 1, 1988, as resolved at the extraordinary

electricity in the Metropolitan Region of Santiago,

through acquiring holdings in different privatization

shareholders meeting of April 12, 1988, one of the

Chile.

processes in Latin America, thus developing a significant

companies that arose from the division changed its

Its investments in electricity generation in Chile

presence in the electricity sectors of Argentina, Brazil,

name to Enersis S.A. At the extraordinary shareholders

and abroad have been developed mainly through its

Colombia and Peru.

meeting of April 11, 2002, the company’s objects were

subsidiary Empresa Nacional de Electricidad S.A. (Endesa

modified, introducing telecommunications activities and

Chile).

1992

the investment and management of companies whose

In addition, it is involved in businesses that

• On May 15, it acquired a 60% shareholding and

businesses are in telecommunications and information

complement its principal ones through majority holdings

control of the generator Central Costanera, now

technology, and internet trading businesses.

in the following companies:

Endesa Costanera, in Buenos Aires, Argentina.

In 1988, and in order to successfully meet its

Synapsis Soluciones y Servicios IT Ltda., that provides

• On July 30, it was adjudicated 51% of Empresa

development and growth, the company was split

services and equipment related to the computer business

Distribuidora Sur S.A., Edesur, an elec tricit y

into 5 business units which in turn gave birth to

and data processing.

distributor in the city of Buenos Aires, Argentina.

five subsidiaries. Of these, Chilectra and Río Maipo

Inmobiliaria Manso de Velasco Ltda., committed to the

were responsible for electricity, Manso de Velasco

real-estate business through the integral development

1993

concentrated on electrical engineering and construction

of real-estate projects and the administration, rental,

•

In July, it bought the generator Hidroeléctrica El

services, plus real-estate management, Synapsis in the

purchase and sale of the property assets of Enersis and

Chocón, located in the province of Neuquén and

area of information technology and data processing,

its subsidiaries in Chile.

Río Negro, Argentina.

while Diprel focused on providing procurement and

Compañía Americana de Multiservicios Ltda. (CAM),

commercialization of electrical product services.

whose business is related to trade and other networking

1994

Today, Enersis is one of the biggest private electricity

operations for public-utility companies, preferably in

•

In July, Enersis acquired for 176 million dollars the

groups in Latin America in terms of consolidated assets

utility metering service systems and as an agent in

60% of the share capital of Empresa de Distribución

and operational income, achieved through steady and

purchasing, importing and exporting, as well as a trader

Eléctrica de Lima Norte S.A., Edelnor, in Peru. It also

balanced growth in its electricity businesses, generation

and supplier of materials for Enersis subsidiaries and

acquired Edechancay, another electricity distributor

and distribution, as well as other related businesses.

third parties.

in that country, which was later absorbed by the

former.

ANNUAL REPORT
THE COMPANIES BUSINESSES

• At the end of the year, Enersis acquired an additional

1997

• On December 28, Enersis was adjudicated 40% of

1.9% of the share capital of Endesa Chile, increasing

• On September 5, it acquired for 715 million dollars a

the share capital of Esval, in Chile’s 5th Region.

its shareholding to 17.2%.

78.9% shareholding in Centrais Elétricas Cachoeira

Dourada, Brazil.

1999

1995

• On September 15, Enersis successfully took part in

• ENDESA S.A., a spanish company, became the

• On December 12, Enersis acquired an additional

the capitalization of Codensa S.A. E.S.P., acquiring a

controller of Enersis. Through a public share offering,

39% in Edesur to give it control of the company.

shareholding of 48.5% for 1,226 million dollars. This

the multinational company acquired an additional

•

It also acquired the generator Edegel in Peru.

company distributes electricity in the city of Bogotá

holding of 32% in Enersis which, together with the

and the department of Cundinamarca, Colombia. It

32% already acquired in August 1997, gave it a

1996

was also adjudicated 5.5% of Empresa Eléctrica de

total holding of 64%. This transaction, completed

• On Februar y 15, Ener sis reached a 25.28 %

Bogotá.

on April 7, 1999, involved an investment of 1,450

shareholding in Endesa Chile and, on April 15,

• On September 15, it acquired a 75% shareholding,

million dollars. As a result of the capital increase

Endesa Chile became a subsidiary of Enersis.

for an amount of 951 million dollars, in Emgesa, a

made in 2003, this shareholding reduced to the

•

It invested in the sanitation market with the

Colombian generator.

present 60.62%

acquisition of Agua Potable Lo Castillo S.A.

• ENDESA S.A. acquired 32% of Enersis.

• On May 11, Enersis acquired 35% of Endesa Chile

• On December 20, Enersis entered the Brazilian

market with the acquisition of a large block of shares

1998

which, added to the 25% already held, enabled

it to obtain a 60% shareholding in the generator

in the previously-called Companhia de Eletricidade

• On April 3, Enersis again entered the Brazilian

and made it the parent company. It therefore

do Río de Janeiro S.A., Cerj, a company that

market, this time being adjudicated 89% and control

consolidated its position as one of the principal

distributes electricity in the city of Río de Janeiro and

of Companhia Energética de Ceará S.A., Coelce,

private-sector electricity groups in Latin America.

Niteroi, Brazil. Its present name is Ampla Energía e

for 868 million dollars. This company distributes

Serviços S.A.

electricity in the north-east of the country, in the

2000

• On December 20, its acquired a 99.9% shareholding

state of Ceará.

• As part of its Genesis Plan strategy, the subsidiaries

in Central Hidroeléctrica de Betania S.A. E.S.P, in

• On April 22, Enersis acquired a 100% shareholding

Transelec, Esval, Aguas Cordillera and real-estate

Colombia.

in Aguas Cordillera, Santiago, Chile.

assets were sold for 1,400 million dollars.

enersis08
ANNUAL REPORT

2001

2004

• In March, Enersis informed the SVS about the merger

• Large investments were made: 364 million dollars for

• The Ralco hydroelectric plant began operations. This

of Elesur and Chilectra by the absorption of the latter

increasing its shareholding in Chilectra, in Chile; 150

is located in Chile’s 8th Region and contributes 690

by the former. The legal effects of this merger were

million dollars in the acquisition of 10% of the share

MW of capacity.

effective from April 1, 2006.

capital of Edesur, in Argentina, a percentage that

was held by the company’s employees; 132 million

2005

•

In June, Edegel and Etevensa were merged, the latter

a subsidiary of Endesa Internacional (now Endesa

dollars to increase its shareholding in Ampla, in

• On April 18, the subsidiary Endesa Eco was formed

Latinoamérica) in Peru.

Brazil; 23 million dollars to increase its shareholding

to promote and develop renewable energy projects

• On September 29, Endesa Chile, ENAP, Metrogas

by 15% in Río Maipo, in Chile, and 1.6 million dollars

like mini-hydroelectric, wind farm, geothermal, solar

and GNL Chile signed an agreement defining the

to increase its shareholding by 1.7% in Distrilima,

and biomass projects, and to act as the depositary

structure of the liquefied natural gas (LNG) project in

in Peru.

2002

and trader of the emission reduction certificates

which Endesa Chile participates with a 20% holding

produced by such projects.

and which forms part of the strategy for meeting the

• The subsidiary Endesa Brasil S.A. was formed

lack of natural gas from Argentina.

•

In Brazil, Central Termoeléctrica Fortaleza in the

with all the assets held in Brazil by the Enersis

state of Ceará was adjudicated to the company.

Group and Endesa Internacional (now Endesa

2007

The commercial operation also began of the

Latinoamérica): CIEN, Fortaleza, Cachoeira Dourada,

•

In March, the company Centrales Hidroeléctricas de

second phase of the electricity interconnection

Ampla, Investluz and Coelce. It now has the IFC

Aysén S.A. (HidroAysén) was formed, to develop

between Argentina and Brazil, CIEN, completing a

(International Finance Corporation) as a shareholder,

and exploit the hydroelectric project in the region of

transmission capacity of 2,100 MW between both

which contributed a sum equivalent to 50 million

Aysén, called the “Aysén Project”, which will imply

countries.

2003

dollars.

2006

2,750 MW of new installed capacity for Chile.

•

In April, the first phase of the San Isidro combined-

cycle thermal plant, second unit, with a capacity

• Assets of 757 million dollars were sold, including

• During February, the Termocartagena (142 MW)

of 248 MW, was made available to Economic Load

the Canutillar generating plant and the distributor

plant in Colombia, which operates with fuel oil

Dispatch Center (CDEC-SIC).

Río Maipo in Chile.

or gas, was bought for approximately 17 million

•

In September, the merger was completed of the

dollars.

Colombian generating companies, Emgesa and

Betania.

ANNUAL REPORT
THE COMPANIES BUSINESSES

• On October 11, ENEL S.p.A. and ACCIONA, S.A.

03. FINANCIAL ACTIVITIES

took over control of Enersis through ENDESA

to be traded in the Latin American Securities Market

(Latibex) of the Madrid Stock Exchange, with the ticker

S.A. and Endesa Internacional, S.A. (now Endesa

The financial activities of the Enersis Group have always

number XENI.

Latinoamérica).

been an important and priority matter. Work has been

In May 2003, Enersis signed a bank loan for 1,388

• During November, the Palmucho hydroelectric plant

carried out on improving the financial profile of both

million dollars, called “Jumbo II”, and between June and

started up its commercial operations. This plant is

Enersis and its subsidiaries, with capital and debt

December made a new capital increase which enabled

located at the foot of the Ralco plant dam on the

issues carried out on the best conditions existing in

the company’s capital base to increase by over 2,000

Upper Biobío in Chile’s 8th Region, and contributes

the market.

million dollars. Refinancing transactions were also

32 MW of capacity to the SIC.

The following are among the most relevant financial

completed for more than 4,000 million dollars using

• Canela was inaugurated on December 6, the first

events in the history of Enersis:

different instruments like new syndicated loans, bond

wind farm on the SIC. Canela is located in the

Between 1988 and 1992, Enersis’s shares began to be

issues on the domestic and foreign markets, prepayment

village of that name in the Region of Coquimbo

traded on the local stock exchanges and, on October 20,

of the “Jumbo II” loan and other smaller transactions.

and contributes 18 MW to the SIC.

1993, on the New York Stock Exchange (NYSE), through

During 2004, debt of 2,100 million dollars was

2008

In February 1996, Enersis made a second issue

dollars maturing in 2009 was signed.

•

In January, the second phase of the San Isidro II

of shares on both the local and international (ADS)

In 2007, two loans of 200 million dollars each were

combined-cycle thermal plant began its commercial

markets. It also issued bonds in the United States for a

obtained, by both Enersis and Endesa Chile, maturing

ADS with the ticker number ENI.

refinanced and an international loan for 350 million

operation of its second unit, with an installed

total amount of 800 million dollars, with maturities in

in 2010.

capacity of 353 MW.

2006, 2016 and 2026.

• On March 24, the dual operation of Unit No.1 of

In February 1998, Enersis again increased its capital

DOMESTIC FINANCES IN 2008

the Tal-Tal thermal plant began operations, with an

and issued convertible bonds amounting to 200 million

installed capacity of 245 MW.

dollars.

In February 2008, Enersis registered a domestic line

•

In June 27, the Ojos de Agua mini-hydroelectric plant

In 2000, it made a further capital increase of 525

of bonds for UF 12.5 million which is currently available

began operations, contributing 9 MW of installed

million dollars approximately, and in July 2001, it

and not issued, and in June a term loan agreement was

capacity to the SIC.

signed a bank loan for close to 500 million dollars. On

signed for another 200 million dollars and another loan

December 17 the same year, the shares of Enersis began

for the same amount.

enersis08
ANNUAL REPORT

In September, a partial prepayment was made of the

million dollars was in the form of a revolving facility

year with total available cash of 1,024 million dollars,

revolving credit facility whose agent bank is BBVA, for a

which is available for drawing at the end of 2008.

Enersis with 214 million dollars and Endesa Chile with

total of 200 million dollars with which, as of December

Drawings were also made under existing revolving

810 million dollars.

31, 2008, there was a principal debt outstanding of

credit facilities, whose agents are Caja de Madrid and

The consolidated financial debt of Enersis as of

150 million dollars and a balance of 200 million dollars

The Bank of Tokyo Mitsubishi for a total of 165 million

December 2008 decreased with respect to the end of

available for drawing.

dollars and 69 million dollars respectively, with which

2007 due to the depreciation of local currencies and a

Regarding refinancing agreements, on October

these facilities were fully drawn.

greater cash generation. The Enersis Group ended with a

17, amendments were signed to the two revolving

In December, bonds series M were placed on the

total of 7,847 million dollars. Of this, 4,343 million dollars

credit facilities of Enersis and three of Endesa

domestic market for UF 10 million (some 341 million

is with Endesa Chile (consolidated) and 3,504 million

Chile, all contracted in 2004 and 2006, in order to

dollars) with final maturity in December 2029, equal

dollars with Enersis and its foreign subsidiaries. This debt

significantly reduce the restrictions in the respective

semi-annual repayments starting in December 2020

is divided mainly between bank debt and domestic and

bank documentation. The principal changes included:

and a nominal interest rate of 4.75%.

international bonds. The consolidated cash position of

an increase in the trigger for cross-default materiality

Regarding the two revolving credit facilities for

Enersis closed at 2,045 million dollars, ending with a net

to 50 million dollars together with a requirement of an

200 million dollars each contracted in late 2006 by

debt of 5,802 million dollars.

overdue payment for that same amount; a reduction

Enersis and Endesa Chile to maintain the liquidity of

in the number of financial covenants; a more relaxed

both companies, these were not drawn during 2008 so

INTERNATIONAL FINANCES IN 2008

leverage covenant for Endesa Chile; a modification to

Enersis and Endesa Chile ended the year with a total

the documentation reflecting the adoption of IFRS, and

available balance for drawing under revolving facilities of

While the second half of 2008 was marked by the financial

other changes of definitions and conditions that provide

400 million dollars each. Both Enersis and Endesa Chile

crisis that affected the principal economies of the world,

a greater flexibility to both companies.

also have, at the end of 2008, lines of credit available

the foreign subsidiaries of the Enersis Group continued

With respect to the financial activities of Endesa Chile,

for drawing in the domestic market for the equivalent of

to refinance their debt at longer term. This despite the

finance was contracted in June 2008 for a total of 400

185 million and 196 million dollars respectively.

credit restrictions and reduced access to capital markets.

million dollars, whose agent bank is BBVA Bancomer,

In addition to the credit facilities and as a way of

The foreign subsidiaries have continued to seek financing

of which 200 million dollars was drawn as a syndicated

safeguarding the liquidity of both Enersis and Endesa

in local currency and at longer terms, to the extent that

loan with a six-year bullet repayment and an annual

Chile and meeting the maturities due in 2009, both

their operating cash flows are in those currencies and that

interest rate of LIBOR + 0.75%. The balance of 200

companies, on an unconsolidated basis, closed the

markets permit it on reasonable conditions.

ANNUAL REPORT
THE COMPANIES BUSINESSES

Consequently, the foreign subsidiaries carried out

the proceeds of medium-term bank loans obtained in

HEDGING POLICY

financial transactions in 2008, both refinancing and

December 2007. Coelce in May signed a bank loan to

new issues and hedging, for a total equivalent to

finance its investments in the 2008-2009 period for

EXCHANGE R ATE

2,209 million dollars, of which 125 million dollars were

203 million dollars, a transaction carried out through

The Group’s exchange rate hedging policy is based on

in Argentina, 594 million dollars in Brazil, 793 million

state entities that permitted it to gain access to low-

cash flows and its objective is to keep a balance between

dollars in Colombia and 697 million dollars in Peru.

cost funds.

The following are some of the more important

financial transactions of 2008:

COLOMBIA

flows indexed to foreign currency (US$) and the levels

of assets and liabilities in that currency. During 2008,

Enersis’s financial transactions enabled it to maintain a

In generation, Emgesa contracted short-term debt

level of dollar liabilities matched to the expected flows

ARGENTINA

during 2008 for approximately 147 million dollars

in that currency.

Costanera refinanced maturities for 60 million dollars

(including renewals). The distributor Codensa refinanced

with medium-term bank loans and supplier credit. El

short-term maturities through a domestic bond issue

INTEREST RATE

Chocón contracted an interest-rate swap at a 3-year

for 214 million dollars.

term for approximately 50 million dollars which enabled

it to fix the interest rate for the whole term of the loan. It

PERU

The Enersis Group’s policy consists of maintaining

hedge levels, total fixed-rate debt and/or hedged debt

over total net debt, within a band of more or less 10%

also refinanced debt of 12 million dollars, which enabled

Edelnor placed domestic bonds for approximately 63

with respect to the hedging level established in the

it to re-denominate part of its debt into local currency,

million dollars with terms of between 3 and 8 years,

annual budget. During 2008, interest rate swaps were

according to the indexation of its flows, and extend the

using the proceeds to refinance debt maturities. Edegel

therefore contracted for 77 million dollars, achieving

average term. Edesur signed a bank loan for 3 million

issued bonds in dollars and local currency for 29 million

a consolidated fixed-rate or hedged debt to total net

dollars at short term in the domestic market in order to

dollars, the proceeds being used to refinance maturities

debt ratio of 86%.

refinance part of its debt.

and prepay debt. Bank loans were also signed during

the year for 96 million dollars (including renewals). In

CREDIT RATING

BRAzIL

March, a financial lease was signed for project financing

In January, Ampla refinanced bank loans for 60 million

for 90 million dollars at a 9-year term. An interest-rate

On November 9, 1994, Standard and Poor’s and Duff

dollars corresponding to its 2010 maturities, extending

swap was also contracted for 30 million dollars to fix

& Phelps rated Enersis for the first time as BBB+, i.e.

the term from 2 to 5 years and reducing the interest rate.

the rate on a 5-year floating-rate loan.

an investment grade company. Later, in 1996, Moody’s

In March, it repaid bonds for 163 million dollars from

enersis08
ANNUAL REPORT

rated the company’s foreign currency long-term debt

PROPERTIES AND INSURANCE

TO OFFER THE BEST ELECTRICITY SERVICE IN

as Baa1.

LATIN AMERICA

Over time, most of the credit ratings have varied. All

The company owns some equipment and substations

are now investment grade with stable outlook, based on

in the Santiago Metropolitan Region. The company

Quality of ser vice is an important matter for the

the diversified asset portfolio, the liquidity and suitable

holds insurance against risks such as fire, lightning,

organization. We are aware that we supply an essential

debt service policies.

explosions, malicious acts, earthquakes, floods, alluvium

service for the social and economic development of the

The year 2008 required an especially demanding

and others.

credit rating from the rating agencies because of the

difficult global conditions in the capital markets and

REGISTERED NAMES

the growing uncertainty with respect to the payment

communities where we operate. We therefore force

ourselves every day to be more effective and to know

our customers in order to offer solid solutions in line

with their needs. As a company, we have an attentive

capacity of the companies analyzed.

The corporation holds the following registered trade

organization constantly in contact with the market and

In a complex environment, or a clear recession and a

names: Enersis, Chispazos, Dixsa, EnersisPLC e Internet

its different players.

growing number of companies with financial problems,

a la velocidad de la luz Enersis PLC.

In practice, we have reduced the number of power

the rating agencies were focused on liquidity, maturities,

cuts per year, their duration and the reliability of the

renewal or refining strategy and availability of lines of

04. LINES OF ACTION

networks.

credit.

At the same time, one of our main challenges has been

The principal objective of Enersis is to maximize the

to contribute to the security of electricity supplies in

International Credit Ratings

economic value of its equity through stable growth,

the five countries where we operate, accompanying the

S&P

Moody’s

Fitch

based on rigorously evaluated and managed electricity

growth in demand with a mix of generation compatible

BBB, Stable

Baa3, Stable

BBB, Stable

businesses. Compliance with this objective is based on an

with care for the environment.

investment strategy focused on increasing the economic

Domestic Credit Ratings

value of the subsidiary and associate companies, and

MAKING EACH OF OUR OPERATIONS

Feller Rate

Fitch

the acquisition of new companies.

PROFITABLE

Bonds

1st Class level 1

AA-, Stable

Enersis has based its strategy on offering the best

electricity service in Latin America, making each of

During 2008, our company continued to improve the

our operations profitable, maintaining a solid financial

returns of the principal subsidiaries in both the electricity

position, increasing the value for our shareholders and

Generation and Distribution businesses. For example, the

evaluating the best growth options.

returns on operating revenues in both lines of business

ANNUAL REPORT
THE COMPANIES BUSINESSES

showed important improvements, the result of the

complex scenario the market faced, both in Chile and

constant application of improvements to production

internationally. In addition, the value of the company

processes, as a result of the constant investigations

over the last five years has grown at a weighted 14%.

carried out.

This is the result of the better market perception of the

diversification of the businesses managed by Enersis. In

MAINTAIN A SOLID FINANCIAL POSITION

fact, our Group successfully capitalized on the growth

shown by the economies of the five countries where

Maintaining healthy ratios and the natural match

we operate.

of currencies between cash flows and third-party

obligations, plus hedging against fluctuations in interest

INVESTMENT OPPORTUNITIES

and exchange rates, together with strong liquidity and

access to local and international markets, has been

Enersis is constantly evaluating the best growth options

indispensable for having a better and healthier financial

in both lines of business and the countries where it is

structure.

currently operating. The company analyzes rigorously

Despite the difficult context of the markets, the

the different alternatives, taking into account the

international credit rating of Enersis was held at BBB

contribution that these could make to the points

(stable), the rating remaining at investment grade

commented on above.

by all the rating agencies. Similarly, the domestic

A key factor in this matter is to make investments that

rating agencies also maintained their local rating of

require significantly the experience, management skills

AA- (stable).

and operating capacities of Enersis and its subsidiaries.

This requirement demands making investments in

INCREASE VALUE FOR OUR SHAREHOLDERS

companies in which a clear influence can be made in

their management and operation, and also the power

During 2008, our share price on the local market

to approve or reject their investment projects.

showed a rise of 3% over December 2007, despite the

enersis08
ANNUAL REPORT

RISK FACTORS

ANNUAL REPORT
RISK FACTORS

Enersis is a corporation whose assets correspond mostly

Almost 62% of our consolidated generating capacity

to investments made in its subsidiaries. In order to meet

in Latin America is hydroelectric so adverse hydrological

our financial obligations, we rely on the dividends,

conditions can have a negative impact on the business

loans, interest payments, capital reductions and other

and its operating results.

payments that we receive from our subsidiaries, plus the

During drought periods, the electricity supplied by

issuance of our own shares and our debt capacity.

thermal plants is dispatched with greater frequency;

Given the nature of the business, as well as to the

this includes the electricity supplied by those generators

geographical diversification of our investments, there

that use natural gas, fuel oil or coal as fuel. Operating

are a number of risk factors that could threaten the

expenses increase during these periods and, depending

stability of our businesses in any of the countries where

on the scope of the contracted commitments and with

we operate.

a view to complying with these contracts the need may

However, our long experience in the electricity

arise to buy electricity from third parties. The cost of

business in the region has taught us to look for and

these electricity purchases on the spot market may

apply all possible preventive measures aimed at avoiding

exceed the agreed price, causing losses. Our generating

or moderating unforeseen events or the damage that

companies have therefore developed a prudent

outside issues could cause to our business.

commercial policy that consists basically of contracting

Even though risk factors often appear in a combined

approximately 70% of the capacity, thereby reducing

form or have correlated effects, for purposes of this

exposure to abrupt variations in the spot market during

Annual Report only, we present the following main

periods of water scarcity.

structure:

Should any of the regulator y bodies impose a

rationing policy resulting from extremely adverse

OPERATIONAL / COMMERCIAL RISKS

hydrological conditions in the countries where we

operate, the commercial and financial conditions as

An important part of the business of some of our

well as the operating results could be affected. The

subsidiary companies relies on the hydraulic conditions

above, however, is monitored by the commercial area

of the areas in which they operate so eventual droughts

of each company in order to avoid the negative effects

can have a negative impact on Enersis’s earnings.

brought on by these circumstances.

enersis08
ANNUAL REPORT

In Argentina, the low price that the regulatory bodies

The results of the Enersis subsidiary and associate

monetary assets in the country where our subsidiaries

imposed on natural gas has directly affected production

companies rely in turn on the macroeconomic

and investments operate are not included in the

and investments in the deposits of this hydrocarbon,

conditions of the country in which they operate. The

reported balance sheet, since devaluations of local

which at the same time has an impact on the availability

product growth rate and variations in aggregate

currency against the dollar or the Chilean peso are not

of this fuel in Chile. The shortage of natural gas can

economic activity intensive in electricity consumption

reflected. Precisely in order to moderate the impact of

oblige the generators of electricity to resort to the use

impact on energy demand and therefore the level of

local currency appreciations or devaluations against the

of fuel oil, which substantially increases the cost of

sales. Inflation, exchange rates and the evolution of

U.S. dollar, the debt of the subsidiaries is denominated

production.

interest rates are all important elements in determining

in their respective local currency.

Strong electricity demand in the central region of

the financial results of the companies. In this sense,

Finally, Enersis has debt subjec t to financial

Chile, together with the low level of investment in the

even though the diversification of the flows in five

covenants and other standard contractual restrictions

electricity sector, exposes this sector to the adverse

countries, in two lines of business, constitutes a natural

related to debt-EBITDA and debt-equity ratios. A

effects of the Argentine natural gas crisis.

hedge, the Enersis Group uses financial products for

significant part of Enersis’s debt has cross-default

moderating the eventual impact of dramatic changes

clauses that in general could lead to a debt acceleration

ECONOMIC / FINANCIAL RISKS

in exchange and interest rates.

when other debts exceeding 30 million dollars are

The way in which we value the company’s foreign

in default, on an unconsolidated basis. Should the

The ability of the subsidiaries to pay dividends, interest

investments, in accordance with Chilean accounting

creditors demand immediate acceleration of the

and loans or make other distributions to the parent

principles, forces the conversion of the non-monetary

commitments, a significant part of our debt would

company is subject to certain legal limits, contractual

assets and liabilities of our non-Chilean subsidiaries

be payable.

restrictions and exchange controls that can be enforced

and associate companies to the dollar at historical

This however has been compensated by Enersis’s

in any of the five countries where the companies operate,

exchange rates. Due to this accounting treatment, it

current financial strength, which has enabled it to

and depends also on the final results.

is possible that the effect of a devaluation on non-

contract unrestricted lines of credit for its business.

ANNUAL REPORT
RISK FACTORS

Lastly, the management’s constant concern, in terms

to offer due satisfaction of the institutional and legal

of having a strong balance sheet and a solid financial

requirements that each country insists on.

situation, has been clearly ratified by the credit-rating

Given the mandatory supply required in the concession

agencies who, unanimously, raised the rating or rating

areas, and as electricity is considered a basic utility, our

outlook of Enersis.

activities can be subject to regulatory fines resulting

from any violation of current regulations, including

POLITICAL / REGULATORY RISKS

energy faults or problems of quality.

Some of the Latin American economies where Enersis

Considering that a large part of the Generation and

has investments have been characterized by occasional

Distribution businesses consists of regulated activities,

and drastic interventions by government authorities. For

these are exposed to regulatory and tariff changes by

example, the Argentine authorities have implemented

the authorities in the different countries in which our

a series of monetary control and exchange measures

subsidiary and associate companies operate. These

that have negatively affected the operating results of

actions could, in fact, impact the company’s earnings.

our subsidiaries in that country and could continue to

The operating subsidiaries are also subjec t to

impact them negatively.

regulations of an environmental nature. However, the

Even though the above-mentioned risks are difficult

constant concern and commitment of the Enersis Group

to anticipate, Enersis permanently monitors the judicial,

on this issue should be pointed out. In fact, each project

legal and sector regulations in order to evaluate

must present an environmental impact assessment as

tendencies that could be unfavorable in these areas to

essential information in its overall evaluation. This

the Group’s businesses in the region.

assessment is then submitted to the authorities in order

enersis08
ANNUAL REPORT

DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

BRAzIL

ARGENTINA

CHILE

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

01. ELECTRICITY GENERATION

02. ELECTRICITY TRANSMISSION

Electricity generation is mainly carried out through our

For the Enersis Group, the electricity Transmission

subsidiary Endesa Chile. In this business, the Group

business is concentrated on the 2,100 MW interconnection

has subsidiaries operating in Chile, Argentina, Brazil,

line between Argentina and Brazil, through CIEN, a

Colombia and Peru.

subsidiary of Endesa Brasil.

In all, the installed capacity amounted to 13,893 MW

as of December 2008 and the consolidated electricity

03. ELECTICITY DISTRIBUTION

production was 54,672 GWh. Energy sales totaled

62,828 GWh.

Our electricity distribution business is carried on through

In the electricity industry, the segmentation of the

Edesur in Argentina, Ampla and Coelce (owned by Endesa

business between hydroelectric and thermal generation

Brasil) in Brazil, Chilectra in Chile, Codensa in Colombia

is natural as the variable costs of generation are different

and Edelnor in Peru. Our principal subsidiaries and related

for each form of production. Thermal generation requires

distribution companies sold 62,806 GWh during 2008.

the purchase of fossil fuels and hydroelectric generation

Edesur, Ampla, Coelce, Chilectra, Codensa and Edelnor

needs water from reservoirs and rivers.

serve the principal cities of Latin America and provide an

62% of our consolidated generating capacity comes

electricity service to over 12 million customers.

from hydroelectric sources while the remaining 38%

These companies face an increasing demand for

is thermal.

energy, obliging them to invest constantly both because

The commercial policy that the generator defines is

of natural growth and for the maintenance of their

therefore important for the business.

facilities.

PERU

COLOMBIA

enersis08
ANNUAL REPORT

Argentina

The transmission sector comprises companies that

freely negotiated contracts or at the spot market price set

carry electricity from the generation points to the

by the Compañía Administradora del Mercado Mayorista

consumption points, on the basis of a free-access

Eléctrico S.A. (CAMMESA) which is responsible for the

system. This segment is organized on a regulated basis

operation of the MEM.

which requires it to operate, maintain and provide to

There are three kinds of prices for valuing energy

third parties access to their transmission systems and

transactions: contractual, seasonal and spot. The price

are authorized to charge a toll for this. However, these

paid by the distributors for the electricity obtained on

companies are forbidden from generating or distributing

the SIN (national grid) is an average spot or seasonal

electricity.

price that CAMMESA sets every six months and adjusts

01. INDUSTRY STRUCTURE

Distribution covers the transfer of electricity from the

every three months according to the prices sanction

transmitters’ supply points to the users. Distribution

mechanism established by Resolution S.E. Nº 240 if 2003

Law 24,065 of January 1992, the Argentine Electricity

companies operate as geographic monopolies, providing

and that the Secretary for Energy approves according

Law, divides the electricity industry into three sectors:

the service to users within a specific region. Distributors’

to supply, demand, available capacity and other

generation, transmission and distribution.

tariffs therefore are regulated and the companies are

factors. Contracted prices are agreed freely between

The generation sector is organized on a competitive

subject to service specifications. While distribution

the parties.

basis with independent producers that sell their

companies can acquire electricity that they need to meet

Finally, the spot price is used in transactions between

produc tion on the Wholesale Elec tricit y Market

demand from the MEM, at seasonal prices or under

generators to cover their generating deficits or surpluses

(MEM) or under private contracts with other parties

contracts with generating companies, they all prefer

with respect to the contractual commitments. The final

in the MEM.

to buy electricity on the MEM as they are only allowed

price paid for these transactions includes the spot price

The energy price is a value called Marginal Price of

to pass on the seasonal prices that reflect the average

and a charge for power.

the System or Market Price, and represents the economic

energy spot price.

The Argentine National Grid (SIN) had a mainly-

cost of generating the next kWh. All the system’s

The Argentine electricity dispatch system, like that

thermal installed capacity of 26,226 MW in 2008, 7.5%

generators charge for their energy at the marginal price

in Chile, is designed to ensure that the least expensive

more than the year before. The grid’s annual generation

affected by a factor that considers the payment of the

electricity reaches the consumer. Generating companies

was 112,313 GWh and sales 105,938 GWh, representing

losses and transport service. They also receive a payment

sell their electricity to distribution companies, energy

increases of 3.5% and 2.9% respectively.

for power made available to it.

traders and large users on the competitive MEM under

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

CÓRDOBA

BUENOS AIRES

MENDOzA

NEUQUÉN

Generation

Central Costanera
Type
Installed Capacity

Thermal
2,324 MW

Central Arroyito
Type
Installed Capacity

Hydro
128 MW

Central El Chocón
Type
Installed Capacity

Hydro
1,200 MW

Distribution

Edesur
Energy Sales
Customers
Energy Losses

16,160 GWh
2.3 million
10.6%

enersis08
ANNUAL REPORT

02. ELECTRICITY GENERATION

ENDESA COSTANERA

EL CHOCÓN

Enersis participates in electricity generation in Argentina

Located in the city of Buenos Aires, its installed capacity

Located in the provinces of Neuquén and Río Negro, it

through Endesa Costanera and El Chocón in which it has

of 1,138 MW is steam-gas thermal and uses natural

operates one artificial reservoir hydroelectric plant of

direct and indirect shareholdings of 41.8% and 39.2%

gas or fuel oil.

1,200 MW and another of 128 MW that use the waters

respectively

It also operates two combined-cycle plants of 859 MW

of the Limay and Collón Curá rivers, and having a total

These companies have a combined total of five plants,

and 327 MW each, with a total installed capacity of

installed capacity of 1,328 MW.

totalling 3,652 MW. This capacity in 2008 represented

2,324 MW.

The hydrology year that started on April 1, 2008

14% of the installed capacity on the SIN.

Net generation in 2008 was 8,540 GWh and total

was classified as a “medium year”. From the second

The electricity generation of the Enersis Group

sales 8,543 GWh.

half of May, as a result of the high dispatch assigned

reached 10,480 GWh, 9% of the total generated in

The year was characterized by important natural-gas

to plants located upstream of El Chocón and the

that country, with hydroelectric generation accounting

restrictions from May to September, which meant a high

restricted dispatch applied to this plant, and due to

for 19%. Physical energy sales were 11,098 GWh, 10%

consumption of liquid fuels. On the other hand, the

the hydrological conditions, the company reduced its

of the total sold.

high energy prices in the first four months of the year

net generation and sales, reaching 1,940 GWh and

Endesa Costanera and El Chocón have holdings of

permitted margins to be higher than in 2007.

2,554 GWh respectively.

5.51% and 15.35% respectively in companies that are

The continuous functioning of both combined-cycle

During 2008, the company focused on diversifying

building two new combined-cycle plants, initiatives

plants with gas oil during the winter helped the grid

its customer portfolio through trading on other markets

coordinated by the Fund for Necessary Investments that

at its most critical point, above all taking into account

than the spot, giving priority to profitable long.-

Permit Increasing Electricity Supplies on the Wholesale

that the liquid fuel was foreseen only for exceptional

term relations with customers of proven commercial

Electricity Market (FONINVEMEN).

situations.

strength.

During 2008, the operation began in open cycle

The company’s top priority in 2008 was to cover its

With respect to investment projects, it is important

of the gas turbines of the Manuel Belgrano and José

cash needs, managing to reschedule the maturities of

to mention the completion of the raising of the water

de San Martín thermal plants, with the closing of the

its short-term debt.

level at the Arroyito plant reservoir, which will increase

cycles expected for the second half of 2009 when the

In the regulatory area, the MEM continued to be

its generation to around 69 GWh per annum. This new

companies start to recover their credits from the cash

intervened by the authority in the setting of the sale

capacity was classified as New Energy authorized to

flows generated.

price of hourly energy and the payment for that produced

enter the Energy Plus plan conceived by the Argentine

Other generators connected to the SIN are AES

by generators. Through these measures, the company

government, Arroyito being the first hydroelectric plant

Alicura, Capex, Petrobras and Pluspetrol.

received a partial payment of its monthly credits.

in this plan.

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

03. ELECTICITY DISTRIBUTION

The concession establishes the obligation of Edesur

2007, of 7.8% for May-October 2007 and 6.4% for

to supply electricity at the request of the owners or

November 2007-April 2008. The adjustment was

Enersis participates in electricity distribution in Argentina

inhabitants of properties within its concession area,

applied from July 1, 2008 and affected the segments

through its subsidiary Edesur in which it has a 65.4%

meet certain quality standards referring the electricity

of residential users with consumption of over 650 kW

direct and indirect shareholding.

supplied, comply with operational requirements with

and users in the general category T2 and T3.

The market share of our Argentine subsidiary, in terms

respect to the maintenance of the distribution assets and

A s a c o m p l e m e n t , b y N o t e 1, 3 8 6 o f t h e

of physical sales, is approximately 20%.

bill customers on the basis of effective metering.

Under-Secretary for Energy, ENRE in November 2008

Other distributors in the Argentine electricity system

In 2008, Edesur provided an electricity service

provided the surpluses of the Program for the Rational

are Empresa Jujeña de Energía (EJESA), Empresa de

to 2,262,231 customers, 1.5% more than the year

Use of Electricity (PUREE) for costing retroactively the

Distribución de Energía de Tucumán (EDET), Empresa

before. Of the total, 87% are residential customers,

7.8% adjustment identified by application of the MMC

Distribuidora de Energía de Santiago del Estero (EDESE),

11.6% commercial, 1.1% industrial and 0.3% other

between November 2007 and June 2008, for the second

Empresa Distribuidora y Comercializadora Norte

customers.

period mentioned above.

(EDENOR) and Empresa de Distribución de la Plata

Energy sales amounted to 16,160 GWh, representing a

Lastly, in November 2008 and by Resolution S.E.

(EDELAP).

EDESUR

2.1% increase over 2007. This was distributed 40.8% to

1.169/2008, a new adjustment was approved to the

the residential sector, 26.1% to the commercial sector,

seasonal price of energy fixed by CAMMESA through

9.1% to industry and 24% to others.

the spot prices sanction mechanism established in

Energy losses were 10.6% in 2008.

Resolution 240/2003. The adjustment meant an increase

The principal objective of Edesur is to distribute and

With respect to the tariff situation, and with the

in the seasonal price of energy, from approximately 49

commercialize electricity in the southern part of the city

publication in the Of ficial Bulletin of Resolution

to 58 Argentine pesos and applied to the tariff for high-

of Buenos Aires, comprising two-thirds of the Federal

324/2008 of ENRE, the first tariff adjustment was

consumption residential, commercial and industrial

Capital region and twelve districts of the province of

applied impacting residential customers since the

users.

Buenos Aires. Its concession area covers 3,309 km2 and

devaluation and “pesification” of January 2002, after

While the adjustments of 2008 have represented

lasts for 95 years from August 31, 1992.

which electricity charges were frozen. The adjustment

important progress, Edesur has still not been able to

This period includes an initial one of 15 years and

recognized compensations for the concept of the Costs

rebuild its economic-financial ratios this year, affected

eight additional ones of 10 years each. On February

Monitoring Mechanism (MMC) which activates every six

by the devaluation. Its management therefore is directed

5, 2007, the electricity regulatory authority (ENRE)

months the process of re-determining the tariff due to

to trying to minimize the effects of this situation.

resolved to extend the initial period by a further five

the distributor’s cost variations. By this resolution, the

years as from the completion of the Integral Tariff

ENRE authorized an adjustment of 9.7% in recognition

Negotiations (RTI).

of the increase in costs for the period May 2006-April

enersis08
ANNUAL REPORT

Brazil

to offer reduced tariffs to the customer and ensure the

determined through a financial/economic balance. These

expansion of the system through EPE (Energy Research

are revised and corrected on an annual basis.

Company), a state entity responsible for the planning

In the free-contracting environment, the conditions for

of generation and transmission activities and which

buying energy are renegotiable between suppliers and

defines two spheres of contracting: free and regulated

customers while, in the regulated environment, where

environments.

the distribution companies operate, energy purchases

The contracting of energy by distributors for supplying

should be made in a bidding process coordinated by

01. INDUSTRY STRUCTURE

their regulated customers is made through a centralized

ANEEL.

bidding process.

The Brazilian SIN has an installed capacity, largely

The Brazilian electricity industry is organized in one large

Another important change was the separation of

hydroelectric, of 102,625 MW in 2008, 2.3% greater

interconnected electricity system called the National

the bidding process for “existing energy” and “energy

than the year before. The annual generation of the

Interconnected System (SIN) that covers most of the

from new projects”. Plants operating prior to 2000

system was 448,748 GWh with sales of 376,948 GWh,

country.

are considered as “existing energy” plants and those

figures that showed an increase of 2.6% in each case.

Generation, transmission and distribution businesses

completed after 2000 are “energy from new projects”

are separated by law, a situation that prevents

plants.

ENDESA BRASIL

distributors from par ticipating in generation or

The first auction for existing generators took place

transmission activities and in other companies.

in December 2004 in which the distributors contracted

Enersis participates in Brazil through Endesa Brasil.

The principal regulatory entity is União, acting

energy for periods of five to eight years, while the first

Enersis began to consolidate Endesa Brasil in October

through the Ministry of Mining and Energy which has

tender for energy produced by future plants was held in

2005, with a direct and indirect shareholding of

exclusive authority over the electricity sector through

December 2005. Various tenders have since taken place

53.6%.

its concessionary and regulatory powers. The sector’s

for both existing and future energy.

The objective of the reorganization of all the assets

policies are implemented by the National Electric Energy

Co nc e s sio ns law e s t ab lish e d t hre e t y p e s of

in Brazil was to simplify the organizational structure,

Agency (ANEEL), established in accordance with Law

modifications regarding energy supply for final

thus permitting greater efficiency, transparency in the

9.427/96.

customers, which are the following: programmed tariff

flows and stability of local cash flows, and thus reduce

During recent years, the electricity industry has

settings, ordinary correction and extraordinary tariff

financing costs; in addition, to improve financing by third

suf fered many changes and transformations. In

correction.

parties and lastly to strengthen the Group’s positioning

March 2004, federal laws N° 10,847 and N° 10,848

Regarding tariffs, these should reflect the operating

in considering new investment opportunities.

established a new model for the sector. This is intended

costs of each company plus a certain return on capital

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

Generation

Central Cachoeira Dourada
Hydro
Type
665 MW
Installed Capacity

Central Fortaleza
Type
Installed Capacity

Thermal
322 MW

MANAUS

BELÉN

Distribution

Coelce
Energy Sales
Customers
Energy Losses

Ampla
Energy Sales
Customers
Energy Losses

7,571 GWh
2.8 million
11.7%

9,119 GWh
2.5 million
20.2%

Transmission

CIEN
Installed Capacity
Energy Sales

2,100 MW
2,063 GWh

BRASILIA

GOIANIA

RÍO DE JANEIRO

SAO PAULO

enersis08
ANNUAL REPORT

02. ELECTRICITY GENERATION

Net generation of Cachoeira in 2008 was 3,308 GWh,

03. ELECTRICITY TRANSMISSION

while sales were 4,403 GWh, both below the level of

Enersis participates in electricity generation in Brazil

the previous year.

The Enersis Group also participates in the transmission

through Endesa Brasil and its subsidiaries Cachoeira

Despite this, the better results for 2008 were the

and trading of elec tricit y in Brazil through the

Dourada and Endesa Fortaleza, in which it has direct

consequence of a prudent commercial policy consisting

interconnection line between Argentina and Brazil,

and indirect shareholdings of 53.4% and 53.6%

of adapting energy sales contracts, plus the high price

CIEN, in which it has a 53.6% holding.

respectively.

in the energy market during the first months.

Compañía de Transmisión del Mercosur S.A. (CTM)

These two plants, one hydroelectric and the other

Investments are planned for 2009 in maintenance of

is the owner of the Argentine side of the transmission

thermal, have a total capacity of 987 MW, representing

the plant and four environmental projects.

line and CEMSA is the trading company that has signed

around 1% of capacity on the SIN.

contracts with generators in Argentina for the export of

Enersis Group’s electricity generation in Brazil was

FORTALEzA PLANT

electricity to Brazil and Uruguay.

3,378 GWh, 1% of the country’s total generation, with

hydroelectric production representing 98%. Physical

Located in the district of Caucaia, 50 km. from the

CIEN

energy sales amounted to 7,093 GWh, 2% of the total

capital of the state of Ceará, it is a combined-cycle

energy sold on the system.

thermal plant of 322 MW that uses natural gas.

Permits the export and import of electricity between

Other generators connected to the SIN are CHESF,

Generation was 71 GWh and its sales totaled 2,690

Argentina and Brazil, in either direction. It has two

Furnas, Cemig, Electronorte, Cesp, Copel, Eletrobras

GWh, 8% higher and 1% lower respectively, compared

transmission lines with a total installed capacity of

and Eletropaulo.

to the previous year.

2,100 MW which cover a distance of approximately 500

The reduced results of this plant were due to the

km., from Rincón Santa María in Argentina to Itá in the

CACHOEIRA DOURADA

reduced energy trading margin, reflecting the high spot

state of Santa Catarina in Brazil.

prices at which it had to buy.

Last year, it redesigned its business to produce

Located in the state of Goias, 240 km. south of

The company’s plans for 2009 are to maintain

revenues from tolls.

Goiania, its installed capacity of 665 MW is pass-

its contractual sales with Coelce and to invest in

In 2008, CIEN’s energy sales were 2,063 GWh, 66%

through hydroelectric and uses the waters of the

maintenance and environmental works.

down on the previous year, resulting from the change

Paranaiba river.

in its business structure. As in 2007, CIEN acted as an

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

exporter and importer of energy from Brazil to Argentina.

being Niteroi, São Gonçalo, Petrópolis, Campos and the

COELCE

With this operation, it only obtained revenues from

coastal area of Los Lagos.

making its networks available.

It provides an electricity ser vice to 2,466,468

This is the electricity distribution company of the state

Regarding the company’s prospects for 2009, the

customers, 3.7% more than the previous year. Of these,

of Ceará, in north-east Brazil, and covers a concession

company will continue to seek permanent remuneration

89.7% are residential, 6.8% commercial, 0.2% industrial

zone of 148,825 km2. The company serves a population

from the Brazilian government. It will also invest in the

and 3.3% other customers.

of more than seven million people.

environment and in maintenance.

During 2008, the company sold 9,119 GWh to its end

The customers of Coelce number 2,841,838, of which

04. ELECTICITY DISTRIBUTION

this, 39% was sold to residential customers, 12.6% to

and 19.5% other sectors.The number of customers rose

customers, representing a 1.5% increase over 2007. Of

75% are residential, 5.3% commercial, 0.2% industrial

industrial, 18.9% to commercial and 29.5% to other

by 5.7%.

Enersis participates in distribution through Endesa Brasil

customers.

Energy sales in 2008 were 7,571 GWh, 4.8% higher

and its subsidiaries Ampla and Coelce. Enersis directly

In terms of energy losses, these declined by 1.2

than in 2007. Of this total, 33.2% was to residential

and indirectly holds 69.9% of the share capital of Ampla

percentage points. The rate was 20.2% in December

customers, 18.8% to commercial, 16.8% to industrial

and 34.9% of Coelce.

2008, which compares positively with 21.4% in

and 31.2% to other customers.

The market share of our subsidiaries in Brazil, in terms

December 2007.

Total energy losses showed a significant improvement,

of physical sales, was approximately 5%.

The company is continuing to implement better

reducing from 12.5% in 2007 to 11.7%.

Other distributors in the Brazilian electricity system

technologies and remote solutions to combat the theft

Regarding tariffs, the annual tariff adjustment was

are CPFL, Brasiliana de Energía, AES Elpa, Cemig, Light,

of energy. In 2008, 53,896 customers were connected

made in 2008 with an increase for Coelce of 6.7%,

Coelba and Copel.

to the so-called Ampla Network, totaling 501,047

effective April 2008.

AMPLA

strategy to reduce energy losses year by year.

Everyone Program between the federal government,

customers to date. This is in line with the company’s

For 2009, it is planned to continue with the Light for

This is an electricity distribution company that covers

tariffs on March 14, 2008, whose average impact on

with the Ecoelce project, an initiative that offers to

73% of the area of 32,054 km2 of the state of Rio de

consumers meant increases of approximately 11%.

exchange waste (which is then recycled) for discounts

Janeiro. The population of the area is around eight

There will also be a new tariff revision process, to be

on electricity charges.

Regarding tariffs, an adjustment was made to Ampla’s

Coelce and the state government, and also continue

million people living in 66 districts, the principal ones

completed in March 2009.

enersis08
ANNUAL REPORT

Chile

According to the Chilean electricity law, generating

transmission and distribution of electricity associated

companies have to coordinate their operations through

with an efficient operation in order to provide suitable

the Economic Load Dispatch Center (CDEC) in order

signals both to the companies and to consumers, in

to operate the electricity grid at minimum cost while

order to optimize the electricity systems.

preserving service security. The CDEC therefore plans

One of the general criteria is freedom of prices for

and carries out the grid’s operation, including the

those segments where competitive conditions are

calculation of the marginal cost, the price of energy

seen to exist. End users whose connected capacity is

transfers between generators.

2,000 kW or less are therefore considered as regulated

From a physical point of view, the Chilean electricity

customers while those with a connected capacity of over

01. INDUSTRY STRUCTURE

sector is divided into four electrical systems: SIC (the

2.000 kW are called free customers. However, users who

Central Electricity Grid), SING (the Northern Electricity

are between 500 kW and 2,000 kW have the possibility

The Chilean electricity sector is regulated by three

Grid), and two minor isolated systems in Aysén and

of choosing the segment to which they belong.

government entities that are responsible for the

Magallanes.

Prices at the generation-transportation level are called

application of and compliance with the law: the National

The SIC, the principal electricity grid, is 2,400 km

“Node Prices” and are defined for all the generation-

Energy Commission (CNE), which has the authority

long, from Taltal in the north to Quellón, on the island

transportation substations from which supplies are

to propose the regulated tariffs (node prices) and to

of Chiloé, in the south. With an installed capacity of

made and comprise the price of the peak energy and

prepare indicative plans for the construction of new

9,824 MW as of December 2008, the system is mainly

capacity, and the transmission charge. Prices at the level

generating units; the Superintendency of Electricity and

hydroelectric. Net generation was 41,869 GWh and sales

of distribution, as those of sub-transmission, are set

Fuels (SEC), which regulates and checks compliance

were 39,594 GWh, representing an increase of 7%.

every four years, in alternating even years, the next

with the laws, regulations and technical standards for

The SING covers some 700 km. in the north of the

sub-transmission setting being programmed for the

electricity generation, transmission and distribution,

country, from Arica to Coloso. This system, with an

year 2010.

liquid fuels and gas; and the Ministry of the Economy

installed capacity of 3,610 MW as of December 2008,

As part of the new electricit y regulations, the

which revises and approves the tariffs proposed by

is predominantly thermal. Net generation was 14,502

contracting of energy by distributors for supply to their

the CNE and regulates the granting of concessions to

GWh and energy sales were 13,219 GWh.

regulated customers should be made through open

electricity generating, transmission and distribution

Current legislation established as a basic premise that

bidding, three tender processes having taken place

companies, following a report from the SEC.

tariffs should represent the real costs of generation,

to date.

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

Distribution

Chilectra
Energy Sales
Customers
Energy Losses

12,535 GWh
1.5 million
5.9%

ANTOFAGASTA

SANTIAGO

TALCA

LINARES

CONCEPCIÓN

Generation

Central Tarapacá
Type
Installed Capacity

Thermal
182 MW

Central Atacama
Type
Installed Capacity

Thermal
781 MW

Central Tal - Tal
Type
Installed Capacity

Thermal
245 MW

Central Diego de Almagro
Type
Installed Capacity

Thermal
47 MW

Central Huasco
Type
Installed Capacity

Thermal
80 MW

Central Los Molles
Type
Installed Capacity

Hydro
18 MW

Central San Isidro
Type
Installed Capacity

Thermal
732 MW

Central Rapel
Type
Installed Capacity

Hydro
377 MW

Central Sauzal
Type
Installed Capacity

Hydro
77 MW

Central Sauzalito
Type
Installed Capacity

Hydro
12 MW

Central Cipreses
Type
Installed Capacity

Hydro
106 MW

Central Isla
Type
Installed Capacity

Hydro
68 MW

Generation

Central Canela
Type
Installed Capacity

Wind Farm
18 MW

Central Curillinque
Type
Installed Capacity

Hydro
89 MW

Central Loma Alta
Type
Installed Capacity

Hydro
40 MW

Central Pehuenche
Type
Installed Capacity

Hydro
570 MW

Central Ojos de Agua
Type
Installed Capacity

Mini Hydro
9 MW

Central Bocamina
Type
Installed Capacity

Thermal
128 MW

Central Antuco
Type
Installed Capacity

Hydro
320 MW

Central Abanico
Type
Installed Capacity

Hydro
136 MW

Central El Toro
Type
Installed Capacity

Hydro
450 MW

Central Ralco
Type
Installed Capacity

Hydro
690 MW

Central Palmucho
Type
Installed Capacity

Hydro
32 MW

Central Pangue
Type
Installed Capacity

Hydro
467 MW

enersis08
ANNUAL REPORT

02. ELECTRICITY GENERATION

with Chilectra and CGE, the two largest distributors

the CDEC-SIC determines a deficit risk condition for

in Chile.

the grid.

Enersis participates in electricity generation through

The tightness of supplies, the contraction in demand

The company also collaborated with the security plan,

Endesa Chile and its subsidiaries, the largest electricity

growth, the high cost of fuels and a drought that

participating in the accumulation of water resources

company in the country in terms of installed capacity,

affected the first months of 2008 (a situation that

through thermal generation produced without any

in which it has a direct 60% shareholding.

reversed toward the end of the year) were variables

economic logic.

Endesa Chile and its subsidiaries possess and operate

that largely determined the year’s operating income.

With all these measures, the demand for electricity

a total of 26 generating plants, 16 of them hydroelectric

The tight supply early in the year was due to a

declined by 1% during 2008.

and 9 thermal plants using coal, oil or natural gas,

reduced thaw as a result of the small accumulation of

Finally, both the rains that began at the end of May,

and a wind farm, with a total installed capacity of

snow in the winter of 2007 and the delay in rainfalls

which normalized the hydrological situation of 2008,

approximately 4,893 MW, representing 36% of Chile’s

which did not occur until May. In addition, there was a

and the effect of a fall in the rate of electricity demand

total installed capacity.

prolonged fault at an important thermal plant on the

growth, enabled the delicate supply situation to be

Electricity generation by the Enersis Group was 19,807

SIC. These two events led to the publication in late

overcome.

GWh in 2008, 70% being hydroelectric. This represented

February of a rationing decree effective until August

At the same time and in order to provide security of

35% of the total produced. Physical energy sales

2008, which was extended to the end of October. This

supply, Endesa Chile brought forward by two months the

amounted to 19,808 GWh, 38% of the total sold.

decree included operational measures for improving

start-up of the combined cycle of San Isidro II and began

Other generators connec ted to the elec tricit y

security and the availability of water resources, and

the operation of the ...Ojos de Agua mini-hydroelectric

grid are AES Gener, Colbún, Electroandina, Edelnor

others directed to managing and reducing electricity

plant. These projects together added capacity of 114 MW

and Norgener.

ENDESA CHILE

demand, like consumer savings campaigns and voltage

during 2008.

reductions.

Added to this delicate supply situation in the first

PEHUENCHE

four months, was the insufficient availability of natural

Endesa Chile supplies electricity to the principal

gas from Argentina and the high fuel prices, which

Located in Chile’s 7th Region, it has 3 reser voir

regulated distributors, large unregulated industrial

raised generation costs and electricity prices on the

hydroelectric plants with a total installed capacity of

companies (mainly in the mining, woodpulp and steel-

spot market.

699 MW. Curillinque is fed indirectly from the Maule

making sectors) and on the spot market.

Endesa Chile, in addition to the measures included

and La Invernada lakes; Loma Alta also uses the waters

The most important supply contracts of Endesa

in the rationing decree, managed to bring forward the

of the Colorado river, and Pehuenche is fed by the

Chile with regulated customers refer to its contracts

use of the water resources to which it has rights in the

abovementioned sources plus the Melado reservoir and

Maule and Laja reservoirs, in order to generate when

some minor tributories.

Enersis holds, directly and indirectly, 55.6% of the

share capital of the company.

Net generation was 3,589 GWh, while sales were

3,614 GWh.

PANGUE

Loc ated in Chile’s 8 th Region, 10 0 km east of

Los Angeles, its installed capacity of 467 MW is

hydroelectric, with reservoir that is fed by the waters

of the Bío-Bío river.

Enersis has a 60% shareholding.

The net generation of Pangue was 1,763 GWh and

sales were 1,961 GWh.

SAN ISIDRO

Located in Chile’s 5th Region, 8 km from Quillota. It

is a combined-cycle plant with dual technology which

enables it to use natural gas and fuel oil for generation.

Its installed capacity is 732 MW (San Isidro I of 379 MW

and San Isidro II of 353 MW).

Enersis has a 60% shareholding.

Both the net generation and sales of San Isidro were

1,289 GWh during 2008.

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

CELTA

Its two plants are located in Chile’s 1st Region, 65 km

from Iquique. Its installed capacity of 182 MW is steam-

gas thermal, using coal and oil for generation.

Enersis has a 60% shareholding.

The net generation of Celta was 912 GWh and sales

were 1,062 GWh.

CANELA

It is located in the 4th Region, 80 km north of the Los

Vilos town. It has an installed capacity of 18 MW and

is the first wind farm on the SIC, in which Enersis has

a 45% shareholding.

It is estimated that the operation of the Canela wind

farm substitutes annually the emission of up to 23,400
tons of CO2.

OJOS DE AGUA

Mini-hydroelectric plant located in Chile’s 7th Region,

fed mainly by filtrations from the La Invernada lake. Its

installed capacity is 9 MW.

Enersis has a 60% shareholding.

enersis08
ANNUAL REPORT

Conscious of the responsibility that our energy

GNL QUINTERO

LOS CÓNDORES

leadership implies, we are developing and analyzing

different projects such as:

As part of our strategy for ensuring reliable and varied

T his proje c t under s tud y w ill make us e of the

sources of energy, the company is actively participating

800-meter drop in altitude between Maule Lake and

TG QUINTERO

in the initiative promoted by the government to diversify

the confluence of the Maule River and Las Luces ravine.

the energy matrix; this is through the liquefied natural

The hydroelectric plant, once operative, will have an

This initiative contemplates a thermal plant in Quintero,

gas (LNG) project in Quintero.

installed capacity of 150 MW.

5th Region, with an installed capacity of 250 MW. It will

Endesa Chile has a 20% shareholding in the re-

work in open cycle with diesel oil until liquefied natural

gasification terminal, along with Enap and Metrogas,

NELTUME

gas becomes available. Start-up is foreseen for the first

while British Gas Group holds the remaining 40%, the

half of 2009.

CANELA II

last-named being the provider of the fuel.

The projec t, located in the Region of Los Ríos,

It is estimated that the project will start fast-track

contemplates the construction of a pass-through

operations in the first half of 2009, and on a final step

hydroelectric plant of 473 MW, to take advantage of

during 2010.

the 400-meter altitude difference between the lakes

The wind farm, located on the south coast of Canela, will

have 40 wind generators with an installed capacity of 60

HIDROAYSÉN

MW. It will start operating in the second half of 2009.

Pirehueico and Neltume.

CHOSHUENCO

Company in which Endesa Chile has a 51% shareholding

BOCAMINA II

and Colbún the other 49%.

The hydroelectric plant under study will have an

The company is in charge of the project for the

installed capacity of 128 MW and with use the waters

This project consists of the construction of a coal-

construction and operation of five hydroelectric plants

of the Llanquihue river between the lakes Neltume

fired thermal plant of 370 MW alongside the existing

on the Baker and Pascua rivers in the Region of Aysén,

and Panguipulli, in hydraulic series with the Neltume

Bocamina plant in Coronel, Biobío Region. The unit will

in the extreme south of Chile, with a total 2,750 MW.

hydroelectric plant.

consume pulverized bituminous coal. Start-up is foreseen

During 2008, management was focused on the

for the second half of 2010.

technical area of engineering and environmental studies,

PIRUQUINA

and communications with its publics of interest.

The project consists of the construction of a mini pass-

through hydroelectric plant of 7.6 MW to be located in

Chiloé and using the waters of the Carihueico river.

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

03. ELECTICITY DISTRIBUTION

It provides electricity service to 1,533,866 customers,

Chilectra recorded energy losses of 5.9%, one of the

3.4% more than the year before. Of the total, 89.9%

lowest in Latin America.

Enersis participates in electricity distribution in Chile

corresponds to residential customers, 7.8 % to

In November 2008, the results were published of the

through its subsidiary Chilectra in which it directly holds

commercial, 0.7% to industrial and 1.6% to other

tariff revision corresponding to Distribution Value Added

99.1% of the share capital.

customers.

(VAD) were published.

According to Chile’s tariff regulations covering the

During 2008, the company sold 12,535 GWh to its

On January 9, 2009, Decree 320 of the Ministry of

activities of electricity distributors, the service area

end customers, representing a 3% decrease from 2007,

the Economy was published in the Official Gazette,

of Chilectra is mainly defined as one of high density

mainly due to the energy rationing decree issued by the

setting the sub-transmission tariffs which came into

and includes all the residential, commercial, industrial,

government.

effect on January 14, 2009 and will remain in force until

state customers and those that pay tolls. The Santiago

Chilectra bought 11,797 GWh of energy during 2008

2010. The effects for Chilectra are estimated to be a

Metropolitan Region is a densely-populated area and

from various generators which included Endesa Chile,

fall in pre-tax revenues of 52,000 million Chilean pesos

has the largest concentration of industries, industrial

AES Gener, Colbún and others.

annually if the present market conditions and criteria

parks and commercial installations in Chile.

Oher distributors in the Chilean electricity system

are Empresa Eléctrica de Arica, Chilquinta Energía,

CGE Distribución, Sociedad Austral de Electricidad,

Empresa Eléctrica de la Frontera and Luz Andes Limitada

subsidiary.

CHILECTRA

Chilectra is the largest electricity distribution company

in Chile in terms of energy sales. It covers 33 districts of

the Metropolitan Region and its concession zone covers

an area of 2,037 km2, including those of its subsidiaries

Empresa Eléctrica Colina Ltda. and Luz Andes Ltda.

for setting the remuneration for this corporate activity

are maintained.

On January 15, 2008, Decree 207/2007 was published

in the Official Gazette setting the installations of the

trunk-line system, the area of common influence,

the annual cost of transmission by section and its

components, with their indexation formulas for the

period 2007-2010.

In order to ensure its supplies and the corresponding

cost, the company has long-term energy purchase

contracts with Endesa Chile, AES Gener, Colbún,

Carbomet Energía, Sociedad de Canalistas del Maipo,

Iberoamérica de Energía IBENER, Hidroeléctrica La

Higuera, Hidroeléctrica La Confluencia, Pacific Hydro

Chile, Guacolda and HydroChile.

enersis08
ANNUAL REPORT

Colombia

the participation of new ones to just one of them,

The distribution sector covers the system of networks

establishing limits by market shares.

by which electricity is transferred from the connection

The Ministry of Mining and Energy defines the policies

points of the National Transmission System (STN) to

for the energy sector and plans the development and

the end consumer or user. These networks comprise

expansion of the industry through the Mining and Energy

the Regional Transmission Systems (STR) and the Local

Planning Unit.

Transmission System (SDL), which are distinguished

The only interconnected electricity system in Colombia

through their different tension levels.

is the National Electricity Grid (SIN), comprising the

The Colombian electricity market is less regulated than

generating plants, grid network, regional and inter-

the other countries where the Enersis Group operates.

01. INDUSTRY STRUCTURE

regional transmission lines, distribution lines and the

The companies are free to offer their electricity at the

users.

price determined by the market, instead of being obliged

The legal principles governing the electricity sector are

The Colombian SIN has a capacity of 13,505 MW as of

by a centralized operative entity to generate electricity

set out in Laws 142 and 143 of 1994, the Colombian

December 2008, mainly hydroelectric. Annual generation

according to the system’s minimum marginal costs. The

Electricity Law.

was 54,395 GWh and sales 74,629 GWh, increases of

heavy hydroelectric reliance of the Colombian SIN led

Law 142 sets certain general principles for the

1.4% and 2.7% respectively.

the CREG to design a remuneration scheme to make

provision of the public utilities, defining as basic

The generating sector is organized on a competitive

investment in generation viable. By this mechanism,

functions of the state their regulation, vigilance and

basis in which generating companies sell their production

Firm Energy Obligations (OEF) are assigned which

control. The Electricity and Gas Regulation Commission

on the energy exchange at spot prices or through freely-

relate to generators’ commitments through generation

(CREG) was therefore formed to regulate the electricity

negotiated contracts with other exchange participants

assets capable of producing firm energy during critical

sec tor, and the Superintendenc y of Residencial

and with unregulated customers. Purchases and sales of

supply conditions, which are remunerated with fixed

Public Utlities (SSPD) to control compliance with the

electricity are carried out through bilateral transactions

revenues called charges for reliability. These charges

regulations.

which can be made between generators, distributors,

have been in effect since December 2006 at prices

The Colombian Elec tricit y L aw regulates the

traders and unregulated customers. However, the CREG

defined by the authority (US$13,045/MWh), with annual

generation, transmission, commercialization and

has been working since 2004 on a proposal to modify

indexation until November 2012. As from December that

distribution on the basis of ensuring competition. It

contracting procedures, to becoming an electronic

year, assignments of energy and price will be defined

therefore allows any national or international company

contracting system called Organized and Regulated

through tenders.

to par ticipate in any of the ac tivities and limits

Market (MOR) to be operative in 2009.

Generation

Central La Tinta
Type
Installed Capacity

Hydro
20 MW

Central Paraíso
Type
Installed Capacity

Hydro
277 MW

Central Limonar
Type
Installed Capacity

Hydro
18 MW

Central Tequendama
Type
Installed Capacity

Hydro
20 MW

Central La Junca
Type
Installed Capacity

Hydro
20 MW

Central Charquito
Type
Installed Capacity

Hydro
20 MW

Central La Guaca
Type
Installed Capacity

Hydro
325 MW

BARRANQUILLA

MEDELLÍN

BOGOTÁ

CALI

NEIVA

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

Distribution

Codensa
Energy Sales
Customers
Energy Losses

11,822 GWh
2.3 million
8.1%

Generation

Central Cartagena
Type
Installed Capacity

Thermal
208 MW

Central El Guavio
Type
Installed Capacity

Hydro
1,213 MW

Central Termozipa
Type
Installed Capacity

Thermal
236 MW

Central Betania
Type
Installed Capacity

Hydro
541 MW

enersis08
ANNUAL REPORT

02. ELECTRICITY GENERATION

It is the largest electricity generating company in

granting the same rating for the program of issue and

Colombia, located close to the city of Bogotá. It has

placement of bonds.

Enersis participates in electricity generation in Colombia

eleven plants with a total installed capacity of 2,895

Its investment projec ts include the El Quimbo

through Endesa Chile and its subsidiary Emgesa, in

MW, among which is the El Guavio 1,213 MW plant, the

hydroelectric plant, to be located in the department

which it has an indirect shareholding of 16.1%.

largest hydroelectric plant in Colombia. Of the eleven

of Huila, on the Magdalena river, upstream from the

T his company has an installed c apacit y that

plants, nine are hydroelectric and two thermal.

Betania plant. Its installed capacity will be 400 MW

represented in 2008 21% of the countr y’s total

During 2008, Emgesa declared as operational a new

and will operate two generating units.

generating capacity.

unit at the Cartagena plant, expanding the plant’s

Emgesa submitted this initiative to the tender for

The electricity generation of the Enersis Group

installed capacity from 142 MW to 208 MW.

reliability charge, as a result of which it is obliged to

in Colombia was 24% of the total generated in that

Net generation was 12,905 GWh and total sales

provide firm energy as from December 2014.

market. Its physical energy sales represented 22% of

16,36 8 GW h, both showing increases over the

During 2008, progress was made in the identification

the total sold.

year before.

of development opportunities in non-conventional

Other generators connected to the Colombian

The year 2008 was characterized by strong revenues

renewable energies. Negotiations were held for the

electricity system are Empresa Pública de Medellín,

as a result of larger sales contracts and a reduced cost

installation of wind-measurement towers. A s of

Isagen, Corelca, EPSA and Chivor.

of fuel due to reduced thermal generation. The Cadena

December 31, three towers had been erected with

EMGESA

record level of water was recorded in the El Guavio plant

agreements had been reached for the installation of

Pagua continued with a record generation. In August, a

a development potential of around 150 MW and

reservoir, which meant having 36 GWh of additional

another two towers. At the same time, negotiations

In September 1, 2007 the Colombian companies

energy stored.

are taking place with the promoter of a 20 MW mini-

Emgesa S.A. E.S.P. and Central Hidroeléctrica de

In financial terms, Duff and Phelps de Colombia made

hydroelectric plant project.

Betania S. A . E.S.P. were merged by the lat ter’s

its periodic review of the first and third bond issues of

absorption by the former, which then changed its name

Emgesa, ratifying its AAA rating for the company and

to Emgesa S.A. E.S.P.

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

During 2008, energy sales were 11,822 GWh to its

end customers, representing an increase of 3.3% over

2007. These were distributed 35.7% to residential,

15.7% commercial, 6.3% industrial and 42.3% to other

sectors.

Energy losses were reduced from 8.7% in 2007 to

8.1% in 2008. Loss management is focused on the

incorporation of new technologies and techniques for

identifying losses and also on the strengthening of a

customer/company relationship based on technical

knowledge and the transparency of our actions.

As part of the tariff revision process, which is made

every five years, Resolution 097 was published in

2008 by which CREG approved the methodology for

the remuneration of the distribution business during

this period. Also, by Resolution 093, the commission

published the rate of return that will be applied to the

03. ELECTRICITY DISTRIBUTION

CODENSA

Enersis participates in electricity distribution in Colombia

Distributes and sells electricity in Bogotá and in 96

distribution business remuneration, defined as 13% for

through its subsidiary Codensa, in which it directly and

districts of the departments of Cundinamarca, Boyacá

the maximum income methodology and 13.9% for the

indirectly holds 21.7% of the share capital.

and Tolima, comprising an area of 14,087 km2.

maximum price methodology.

Codensa’s market share, in terms of physical sales,

Since 2001, Codensa has only provided services to

was approximately 15%.

regulated customers. It provides electricity services to

Other distributors participating inte Colombian

2,284,855 customers, 3.5% more than in 2007. Of the

electricity system are Empresa de Energía Cundinamarca,

total, 88.3% are residential, 9.9% commercial, 1.7%

EEPP Medellín, Electrificadora de la Costa Atlántica and

industrial and 0.1% other customers.

Electrificadora del Caribe.

enersis08
ANNUAL REPORT

Peru

Customers with a capacity requirement of less than

remuneration in addition to the revenue from the tariffs

1 MW are considered as regulated customers and

and connection tolls that reflect a charge per kW. All

energy supplies are defined as a public utility. However,

the generating companies have access to the lines of

according to the First Complementary Provision of Law

the secondary system but these are used only to serve

28,832, regulated customers whose annual demand

certain customers which have to make payments in

is within the demand limits to be established in the

relation to the use they make of the system.

Complementary Provision may opt to be free users

Sales of capacit y or energy by generators to

(customers whose capacity requirement is 1 MW

distributors for then reselling to their regulated

or more).

customers should be made at the bar prices set by

Electricity tariffs for regulated customers include the

OSINERG or at fixed rates as defined by public tenders.

bar prices for the energy (analogous with node prices in

Since 2005, the bar prices for capacity and energy are

01. INDUSTRY STRUCTURE

Chile) and generating capacity, charges for transmission

set annually. These are the maximum prices for the

services and the VAD (Distribution Value Added), which

electricity paid by distributors for transferring it to

In Peru, the Ministry of Energy and Mines (MINEM)

considers a regulated return on the capital invested, the

regulated customers, except in the case of contracts

defines the policies for the energy sector and regulates

fixed costs of operation and maintenance, and a rule for

signed as a result of a public tender, in which case the

matters related to the environment. It is also responsible

energy distribution losses.

prices to be passed on to regulated customers will be

for the granting, supervision, expiration and termination

Since 1999, the payment for capacity has been

the prices defined in the tender.

of licenses, permits and concessions for generation,

determined in relation to a fixed guaranteed component

There is just one main grid system, the National

transmission and distribution activities. The Energy

based on the efficiency of each plant and a variable

Electricity Grid (SEIN), plus many isolated and small

Investment Supervisory Organism (OSINERG) is a public

component that depends on the level of dispatch of

regional systems that provide electricity to rural

and autonomous regulatory body established in 1996

each unit.

areas.

to control compliance with the legal and technical

The transmission lines are divided into two systems,

Peru has an installed capacity of 5,147 MW in 2008.

regulations related to electricity and hydrocarbon

the principal and the secondary. All the generators

The annual generation of the system was 29,559 GWh

businesses, and compliance with the obligations

have access to the lines of the principal system, which

and sales were 26,771 GWh, which represented a 8.8%

container in concession contracts, plus the conservation

enables them to carry electricity to all users. The

increase over the previous year.

of the environment in relation to these activities.

transmission concession-holder receives a fixed annual

Generation

Central Moyopampa
Type
Installed Capacity

Hydro
65 MW

Central Callahuanca
Type
Installed Capacity

Hydro
80 MW

Central Huinco
Type
Installed Capacity

Hydro
247 MW

Central Matucana
Type
Installed Capacity

Hydro
129 MW

Central Huampani
Type
Installed Capacity

Hydro
30 MW

Central Santa Rosa
Type
Installed Capacity

Thermal
229 MW

Central Ventanilla
Type
Installed Capacity

Thermal
493 MW

Central Yanango
Type
Installed Capacity

Hydro
43 MW

Central Chimay
Type
Installed Capacity

Hydro
151 MW

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

Distribution

Edelnor
Energy Sales
Customers
Energy Losses

5,599 GWh
1.03 million
8.2%

CHICLAYO

TRUJILLO

LIMA

CUzCO

AREQUIPA

enersis08
ANNUAL REPORT

02. ELECTRICITY GENERATION

Demand for natural gas from Camisea has increased

reflected on the spot market, where the marginal costs

significantly due to the sharp rise in the demand for

“of gas” were expected to be around US$30/MWh

Enersis participates in electricity generation in Peru

electricity, of around 9%, and, to a lesser extent, the

when in fact units were seen to operate with residual

through Endesa Chile and its subsidiary Edegel, in which

migration of industrial users to natural gas in view of

diesel or diesel 2 at costs of over US$150-200/MWh.

it indirectly holds 19.8% of the share capital.

the high international oil prices. This led to congestion

This congestion is expected to last throughout 2009

The company had a capacity in 2008 that represented

in the natural gas transportation as from May due to

but the government has designed several measures for

28% of the country’s total installed capacity.

the insufficient capacity of the pipeline.

mitigating the situation.

The electricity generation of the Enersis Group was

The impact on the electricit y system has been

At present, Edegel has firm contracts for the full

27% of the total generated in Peru, while its physical

important as only 70% of the natural gas volume

capacity of its Ventanilla combined-cycle plant, and for

sales were 32% of the total sold.

requested by generators and the needs of the COES

50% of the TG8 unit of the Santa Rosa thermal plant,

Other generators connected to Peruvian electricity

was authorized, i.e. during low water periods, some

projected to start up in September 2009. The rest of

system are Electroperú and Egenor.

200 MW in gas turbines have not operated due to the

its contracts are interruptible, as the operation of its

lack of transportation capacity. This in turn has been

units is not in base.

EDEGEL

This company is located close to the city of Lima. It has

nine plants with a total installed capacity of 1,467 MW.

Only two units are thermal plants that use natural gas

as their generating fuel.

The generation of Edegel was 8,102 GWh and its

physical sales were 8,461 GWh, both being 5.8% higher

than the year before; this partly explained the good

results for the year.

Progress was made in 2008 in the identification

of development opportunities in non-conventional

renewable energies. Temporary concessions have been

requested and obtained for wind generation for a total

of 1,200 MW. In addition, studies were advanced

for identifying the locations of future thermal and

hydroelectric units.

At the same time, the works for the preparation of the

site were successfully completed and civil works began

in the Santa Rosa plant extension project.

ANNUAL REPORT
DESCRIPTION OF THE ELECTRICITY BUSINESS BY COUNTRY

03. ELECTICITY DISTRIBUTION

Enersis participates in electricity distribution in Peru

through its subsidiary Edelnor in which it directly and

indirectly holds 33.5% of the share capital.

The market share of our subsidiary, in terms of

physical sales, was approximately 19%.

Other distributors that participate in the Peruvian

elec tricit y s ystem are Luz del Sur, Elec tro Sur,

Electrocentro, ENOSA, Hidrandina and ENSA.

EDELNOR

The concession zone granted to Edelnor covers a total

area of 2,440 km2, of which 1,838 km2 relate to northern

Lima and Callao.

are residential, 4% commercial, 0.1% industrial and

Energy losses as of December 2008 were 8.2%,

Edelnor is the concession-holding company of

1.8% other customers.

a slight increase over the rate of 8.1% obtained

public-utility service for the northern part of the Lima

Physical energy sales in 2008 were 5,599 GWh,

in 2007.

metropolitan area and the province of Callao, plus

representing a 7.7% increase over 2007. The sales

Regarding tariffs, these are set every four years, the

the provinces of Huaura, Huaral, Barranca and Oyón.

grow th is explained by the higher consumption

last being in 2005, so the next revision is programmed

It serves 52 districts exclusively and shares with the

by regulated customers, mainly in the residential,

for November 2009.

southern zone distribution company in another 5

commercial, transport, storage and communication

With respect to transmission, the process of the

districts. In the metropolitan area, Edelnor’s concession

sectors, and in the manufacture of rubber products.

Regulation of Complementary Transmission Systems

consists mainly of the industrial zone of Lima and some

Edelnor’s energy purchases amounted to 5,648 GWh,

for the period July 2006-April 2013 began in June, in

populous districts of the city.

an increase of 7.4% over 2007. The principal suppliers

accordance with OSINERG Resolution 198-2008-OS/CD.

Edelnor provides electricity services to 1,027,750

were Electroperú (40.2%), Edegel (30%), Egenor

This process will end in April 2009.

customers, a 4.2% increase over 2007. Of these, 94.1%

(5.9%), Pesa (5.1%) and Cahua (3.1%).

enersis08
ANNUAL REPORT

OTHER BUSINESSES

ANNUAL REPORT
OTHER BUSINESSES

CAM

In terms of innovation, more than 30 new high-

technology products were created for the management

Enersis, directly and indirectly, holds 100% of Compañía

and commercialization of electricity.

Americana de Multiservicios Ltda. (CAM). Its business

Strategic alliances and commercial agreements were

is to provide electrical and related business solutions

also strengthened with several companies like Phillips,

in three lines of action: metering and certification,

Schneider, EMH and Complant.

commercialization and logistics, and electrical works.

The parent company in Chile and its subsidiaries in

MANSO DE VELASCO

Argentina, Brazil, Colombia and Peru, have consolidated

a regional presence, expanding its customer portfolio

Inmobiliaria Manso de Velasco Ltda., a company in which

in the electrical, sanitation, gas, industrial, mining and

Enersis directly and indirectly has a 100% shareholding,

telecommunications sectors.

focuses its business on real-estate development projects

CAM obtained its ISO 9001:2000 certification for

and on advising Group companies in Latin America in

all its subsidiaries, thus complying with the corporate

everything related the purchase, sale and development

objective of cultivating a culture oriented to quality,

of real-estate.

based on the commitment to achieve organizational

During 2008, progress was made on the urbanization

efficiency and continuous improvement.

and commercialization of the ENEA project for the

During 2008, CAM continued its regional integration

industrial sector, and the selling of properties in the

and consolidation process, with emphasis on seeking

municipality of Santiago. In the first case, works

new markets and businesses and on the development

continued on extending the urbanization of phases I and

of innovative products.

III in order to permit the sale of these plots located on

In this context, notable was the implementation of

the east and west sides of Avda. Américo Vespucio.

architectural and ornamental lighting projects, services

ENEA also continued to progress its commercial plan,

and audits for the mining industry, and implementation

integrating new companies in the business park. Aguas

of energy-efficient solutions. Sale contracts were also

Santiago Poniente S.A. is included in this project, a

entered into for the supply of electrical equipment to

company that provides sanitation services related to

Ecuador, of services in Colombia and of tele-metering

this real-estate project.

for the distributor Light in Brazil.

enersis08
ANNUAL REPORT

In addition, there is the Tapihue Project which

plus a commercial office in Panama City, thus providing

In order to position itself as an implementer and

contemplates plots corresponding to land associated

coverage of a large part of the Latin America.

integrator of ERP for ISU SAP utilities, it signed two

with the Tapihue, Amancay (Plot B) and La Petaca

The most important areas of Synapsis’s business

important contracts for introducing this solution in

farms.

relate to outsourcing and infrastructure services, data

Lipigas (Chile) and the Corrientes Provincial Energy

The business of Manso de Velasco also includes

centers, contact centers, mass printing, remote services

Authority (DPEC) (Argentina).

managing a total of 23,972 m2 of construc tion

applications (ASP), and advice and implementation of

Also notable were the start-up of the project for

corresponding to office buildings and commercial offices

solutions in tele-metering, remote control, security and

New EPS in Colombia, the start of outsourcing of

which are mainly rented to related companies and other

location of vehicles; consultancy in the search for and

the technological platform and associated services

parties.

SYNAPSIS

implementation of technological solutions for supporting

to ChileCompra, now Mercado Público, and the

business processes; the integration of products, services

development of three important projects for the Instituto

and technologies, implementation and maintenance of

de Normalización Previsional (INP) (the Chilean national

information systems; construction and development of

social security entity).

Synapsis Soluciones y Servicios IT Ltda. is an information

IT solutions for highly-available and complex business

In Chile, it achieved the SAP Hosting Par tner

technology (IT) professional services company in which

processes.

certification which guarantees the high standards of

Enersis directly and indirectly has a 100% holding.

The company has increased its presence in the IT

the services provided by the company according to

With more than 20 years’ experience in the market,

market in recent years. It manages six integrated and

the world-wide demands of SAP, thus improving the

it has positioned itself as a Latin American leader

strategically positioned data centers, with a highly-

company’s position with respect to the local and regional

in the field of IT solutions, mainly in the services,

qualified professional team and providing guaranteed

markets. It again renewed its Microsoft Gold Partner

energy, telecommunications and public administration

high-availability services.

certification, and also signed alliances with Verifone,

markets.

Synapsis is oriented to the optimization of business

Enterprise DB, Corinex and Matchmind.

Located in Santiago, Chile, it has offices in the

management and process efficiency through the ISO

Lastly, the company launched “Synapsis Green”, a

principal cities in the region: Buenos Aires, Argentina;

9001-2000, ITIL, PMP and CMMI 3 certifications,

new concept that incorporates into the management of

Rio de Janeiro, Fortaleza and a commercial office in

focusing on IT, telecommunications and control

the business the implementation of responsible practices

Sao Paulo, Brazil; Bogotá, Colombia, and Lima in Peru,

systems.

from an environmental point of view.

ANNUAL REPORT
OTHER BUSINESSES

DIRECT AND INDIRECT ECONOMIC PARTICIPATION (*)

ARGENTINA

Costanera

El Chocón

Edesur

CTM

TESA

CEMSA

CAM Argentina

Synapsis Argentina

Gasoducto Atacama Argentina

CHILE

Endesa Chile

Celta

Endesa Eco

Ojos de Agua

Palmucho

San Isidro

Pangue

Pehuenche

Canela

HidroAysén

GasAtacama

Chilectra

Transquillota

CAM

Inmobiliaria Manso de Velasco

Synapsis

Ingendesa

Túnel El Melón

Gas Atacama Chile

Gasoducto Tal Tal

Electrogas

GNL Chile

GNL Quintero

Business

Participation

41.8%

39.2%

65.4%

53.6%

27.0%

100.0%

30.0%

Business

Participation

60.0%

57.0%

55.6%

45.0%

30.6%

30.0%

99.1%

30.0%

100.0%

60.0%

30.0%

25.5%

20.0%

12.0%

BRAZIL

Endesa Brasil

Fortaleza

Cachoeira Dourada

Ampla

Coelce

CIEN

CAM Brasil

Synapsis Brasil

Ingendesa Brasil

COLOMBIA

Emgesa

Codensa

CAM Colombia

Synapsis Colombia

PERU

Edegel

Edelnor

CAM Perú

Synapsis Perú

Business

Gx, Dx, Tx

Participation

53.6%

53.4%

69.9%

34.9%

53.6%

100.0%

60.0%

Business

Participation

16.1%

21.7%

100.0%

Business

Participation

19.8%

33.5%

100.0%

Notas:
Gx: Generation.
Tx: Transmission/Commercialization.

Dx: Distribution.
Ox: Others.

(*) Operative companies of the Enersis Group considered.

enersis08
ANNUAL REPORT

PERIMETER OF CORPORATE PARTICIPATIONS

OF ENERSIS

Endesa
Market Place S.A.

15.00%

99.991%

99.99997%

99.99%

Compañía Americana
de Multiservicios Ltda.
CAM

Inmobiliaria
Manso de Velasco Ltda.

Synapsis Soluciones
y Servicios IT Ltda.

0.01 %

0.009%

0.00003 %

26.2%

99.9998%

0.0002%

94.90%

2.4%

94.9999 %

99.99993%

0.00007%

CAM
Perú Ltda.

0.000062%

57.50%

Soc. Agrícola
de Cameros Ltda.

99.999938%

CAM
Colombia Ltda.

25.82%

Aguas Santiago
Poniente S.A.

4.9988 %

55.00%

0.0012%

55.00%

53.06%

Agrícola e
Inmobiliaria Pastos
Verdes Ltda.

Const. y Proyectos
Los Maitenes S.A.

95.00%

CAM
Argentina Ltda.

49.00%

Sistemas
SEC S.A.

Konecta
Chile S.A.

Synapsis
Perú Ltda.

99.998243 %

Synapsis
Colombia Ltda.

0.2%

Chilectra
Inversud S.A.

2.5%

0.001757 %

Synapsis
Argentina Ltda.

5.0001 %

99.90%

Luz Andes S.A.

0.10%

0.0002%

Empresa Eléctrica
de Colina S.A.

99.9998%

99.99985 %

CAM Brasil
Multiservicios Ltda.

0.00017%

0.05 %

99.95 %

Synapsis
Brasil Ltda.

Chile

Argentina

Brazil

Peru

Colombia

España

0.012666 %

59.98%

99.0778566%

Inversiones

Codensa S.A.

94.50 %

5.20 %

Inversora

Codensa Ltda. U

100 %

Edelnor S.A.

60.00%

Inversiones

Distrilima S.A.

30.14%

25.00%

13.25%

Compañía Peruana

de Electricidad S.A.

0.10%

50.90%

Empresa de Energía

de Bogotá S.A.

51.51%

Codensa S.A.

1.06%

1.41%

9.35%

12.47 %

27.1945%

Distrilec

Inversora S.A.

0.89%

23.41%

16.02%

Edesur S.A.

20.84%

56.36%

50%

Sacme S.A.

22.060295%

Endesa Brasil S.A.

(Holdco)

4.657017%

4.347304%

10.344606%

13.679789%

10.344606%

21.022414%

Ampla

Investimentos S.A.

46.886283%

46.886%

Ampla Energia

e Serviços S.A.

21.022%

36.430633%

63.569367%

2.273448%

100%

Investluz S.A.

Coelce S.A.

CIEN S.A.

100%

C.G.T.

Fortaleza S.A.

99.605880%

Cachoeira

Dourada S.A.

56.594007%

Endesa

Market Place S.A.

15.00%

99.991%

99.99997%

99.99%

Compañía Americana

de Multiservicios Ltda.

CAM

0.009%

0.00003 %

Inmobiliaria

Manso de Velasco Ltda.

Synapsis Soluciones

y Servicios IT Ltda.

0.01 %

Konecta

Chile S.A.

Synapsis

Perú Ltda.

26.2%

99.9998%

0.0002%

94.90%

2.4%

94.9999 %

99.99993%

57.50%

Soc. Agrícola

de Cameros Ltda.

0.00007%

CAM

Perú Ltda.

0.000062%

95.00%

CAM

Argentina Ltda.

49.00%

Sistemas

SEC S.A.

4.9988 %

55.00%

0.0012%

55.00%

Agrícola e

Inmobiliaria Pastos

Verdes Ltda.

Const. y Proyectos

Los Maitenes S.A.

99.999938%

CAM

Colombia Ltda.

25.82%

Aguas Santiago

Poniente S.A.

Synapsis

Colombia Ltda.

0.2%

Chilectra

Inversud S.A.

53.06%

2.5%

Synapsis

Argentina Ltda.

5.0001 %

99.90%

Luz Andes S.A.

0.10%

99.998243 %

0.001757 %

0.0002%

Empresa Eléctrica

de Colina S.A.

99.9998%

99.99985 %

CAM Brasil

Multiservicios Ltda.

0.00017%

0.05 %

99.95 %

Synapsis

Brasil Ltda.

Chile

Argentina

Brazil

Peru

Colombia

España

ANNUAL REPORT
OTHER BUSINESSES

0.012666 %

59.98%

99.0778566%

Inversiones
Codensa S.A.

94.50 %

5.20 %

Inversora
Codensa Ltda. U

100 %

Edelnor S.A.

60.00%

Inversiones
Distrilima S.A.

30.14%

25.00%

13.25%

Compañía Peruana
de Electricidad S.A.

0.10%

50.90%

Empresa de Energía
de Bogotá S.A.

51.51%

Codensa S.A.

1.06%

1.41%

9.35%

12.47 %

27.1945%

Distrilec
Inversora S.A.

0.89%

23.41%

56.36%

16.02%

Edesur S.A.

20.84%

50%

Sacme S.A.

22.060295%

Endesa Brasil S.A.
(Holdco)

4.657017%

4.347304%

10.344606%

13.679789%

10.344606%

21.022414%

Ampla
Investimentos S.A.

46.886283%

46.886%

Ampla Energia
e Serviços S.A.

21.022%

36.430633%

63.569367%

2.273448%

100%

Investluz S.A.

Coelce S.A.

CIEN S.A.

100%

C.G.T.
Fortaleza S.A.

99.605880%

Cachoeira
Dourada S.A.

56.594007%

enersis08
ANNUAL REPORT

PERIMETER OF CORPORATE PARTICIPATIONS

OF ENDESA CHILE

41.9411%

Hidroinvest S.A.

54.1535%

59.00%

2.4803%

Hidroeléctrica
El Chocón S.A.

6.1938%

15.35%

Termoeléctrica
Manuel
Belgrano S.A.

5.5055%

Termoeléctrica
José de
San Martín S.A.

5.5055%

Com. de Energía
del Mercosur S.A.
(CEMSA)

45.00%

59.98%

Endesa
Argentina S.A.

99.657366%

0.342634%

Southern Cone Power
Argentina S.A.

2.0%

98%

51.932539%

5.5%

Endesa
Costanera S.A.

12.3325533%

Distrilec S.A.

0.887466%

Ingendesa
Do Brasil Ltda.

1.00%

99.00%

60.99845%

36.268461%

Generandes
Perú S.A.

54.19961%

Edegel S.A.

4.184465%

Endesa Brasil S.A.
(Holdco.)

46.886283%

Ampla
Investimentos S.A.

36.430633%

Ampla Energia
e Serviços S.A.

63.569367%

Investluz S.A.

46.886283%

56.594007%

CIEN S.A.

2.273448%

Coelce S.A.

100%

26.873987%

Emgesa S.A.

51.51%

Empresa de Energía
de Bogotá S.A.

51.51%

Codensa

100%

0.0000018%

Transportadora
de Energía del
Mercosur S.A.(TESA)

99.999982%

Cía. de Transmisión
del Mercosur S.A.
(CTM)

99.99%

100%

C.G.T.
Fortaleza S.A.

Inversora Codensa
Ltda. U

99.605880%

Cachoeira
Dourada S.A.

5.20%

Inversiones
Codensa S.A.

94.50%

99.51%

Enigesa S.A.

0.49%

92.65%

Pehuenche S.A.

94.97519%

Pangue S.A.

0.01382%

99.9911%

Túnel

El Melón S.A.

0.00886%

98.75%

Ingendesa S.A.

1.25%

33.33%

GNL Chile S.A.

20%

GNL Quintero S.A.

100%

Cía. Eléctrica

San Isidro S.A.

99.942802%

Cía. Eléctrica

Tarapacá S.A.

0.057198%

Central Eólica

Canela S.A.

75%

99.99%

Endesa Eco S.A.

0.01%

50.99995%

Centrales

Hidroeléctricas

de Aysén S.A.

0.00005%

99.00%

0.51%

HidroAysén

Transmisión S.A.

50.00%

Consorcio Ingendesa

Minmetal Ltda.

50.00%

Consorcio

Ingendesa-Ara Ltda.

50.00%

Consorcio

Ara-Ingendesa Ltda.

33.33%

Consorcio

Ara-Ingendesa

Sener Ltda.

50.00%

0.02125%

99.95%

Transquillota

Ltda.

Electrogas S.A.

99.877%

0.1226%

100%

Gasoducto

Taltal S.A.

Gasoducto Atacama

Argentina S.A.

Sucursal Argentina

Chile

Argentina

Peru

Brazil

Colombia

Islas Caymán

100%

Energex Co.

42.50%

Inversiones

Electrogas S.A.

99.9%

Progas S.A.

0.1%

Inversiones

GasAtacama

Holding Ltda.

50.00%

99.99%

0.01%

Inversiones

Endesa Norte S.A.

0.05%

99.90%

Gas Atacama

Chile S.A.

99.997706%

0.001147%

GasAtacama S.A.

Atacama Finance Co.

99.90%

0.1%

0.03%

Gasoducto Atacama

Argentina S.A.

57.23%

42.71%

41.9411%

Hidroinvest S.A.

54.1535%

59.00%

2.4803%

Hidroeléctrica

El Chocón S.A.

6.1938%

15.35%

Termoeléctrica

Manuel

Belgrano S.A.

5.5055%

Termoeléctrica

José de

San Martín S.A.

5.5055%

Com. de Energía

del Mercosur S.A.

(CEMSA)

45.00%

59.98%

Endesa

Argentina S.A.

99.657366%

0.342634%

Southern Cone Power

Argentina S.A.

2.0%

98%

51.932539%

12.3325533%

5.5%

Endesa

Costanera S.A.

Distrilec S.A.

0.887466%

Ingendesa

Do Brasil Ltda.

1.00%

99.00%

60.99845%

36.268461%

4.184465%

Endesa Brasil S.A.

(Holdco.)

46.886283%

Ampla

Investimentos S.A.

36.430633%

Generandes

Perú S.A.

54.19961%

Edegel S.A.

Ampla Energia

e Serviços S.A.

63.569367%

Investluz S.A.

Empresa de Energía

de Bogotá S.A.

46.886283%

56.594007%

CIEN S.A.

2.273448%

Coelce S.A.

100%

26.873987%

Emgesa S.A.

51.51%

Codensa

100%

Transportadora

de Energía del

99.999982%

0.0000018%

Mercosur S.A.(TESA)

Cía. de Transmisión

del Mercosur S.A.

(CTM)

99.99%

100%

C.G.T.

Fortaleza S.A.

Inversora Codensa

Ltda. U

99.605880%

Cachoeira

Dourada S.A.

5.20%

94.50%

Inversiones

Codensa S.A.

99.51%

Enigesa S.A.

0.49%

92.65%

Pehuenche S.A.

94.97519%

Pangue S.A.

0.01382%

99.9911%

Túnel
El Melón S.A.

0.00886%

98.75%

Ingendesa S.A.

1.25%

33.33%

GNL Chile S.A.

20%

GNL Quintero S.A.

100%

Cía. Eléctrica
San Isidro S.A.

99.942802%

Cía. Eléctrica
Tarapacá S.A.

0.057198%

Central Eólica
Canela S.A.

75%

99.99%

Endesa Eco S.A.

0.01%

50.99995%

Centrales
Hidroeléctricas
de Aysén S.A.

0.00005%

99.00%

0.51%

HidroAysén
Transmisión S.A.

50.00%

Consorcio Ingendesa
Minmetal Ltda.

50.00%

Consorcio
Ingendesa-Ara Ltda.

50.00%

Consorcio
Ara-Ingendesa Ltda.

33.33%

Consorcio
Ara-Ingendesa
Sener Ltda.

50.00%

0.02125%

99.95%

Transquillota
Ltda.

Electrogas S.A.

42.50%

Inversiones
Electrogas S.A.

99.9%

Progas S.A.

0.1%

Inversiones
GasAtacama
Holding Ltda.

50.00%

99.99%

0.01%

Inversiones
Endesa Norte S.A.

0.05%

99.90%

Gas Atacama
Chile S.A.

99.997706%

0.001147%

GasAtacama S.A.

99.90%

0.1%

Atacama Finance Co.

0.03%

Gasoducto Atacama
Argentina S.A.

57.23%

42.71%

99.877%

0.1226%

100%

Gasoducto
Taltal S.A.

Gasoducto Atacama
Argentina S.A.
Sucursal Argentina

ANNUAL REPORT
OTHER BUSINESSES

Chile

Argentina

Peru

Brazil

Colombia

Islas Caymán

100%

Energex Co.

enersis08
ANNUAL REPORT

SUSTAINABILITY

ANNUAL REPORT
SUSTAINABILITY

01. SUSTAINABILITY POLICY

Basically, our actions as a company are sustained

by three basic pillars for Sustainable Development:

In Enersis, we assume our role as a corporate citizen from

contribute to economic development, contribute to social

the perspective that our actions affect and are affected

progress and contribute to the ecological balance of

by a series of socio-economic and cultural relations in

our surroundings.

the surroundings in which we operate. We therefore

These criteria form part of the central actions for

promote a balanced development of our businesses,

ensuring the profitability and leadership of our company

stimulating economic growth and promoting the social

in the long term and are firmly entrenched in our

development of the communities, while contributing to

corporate values.

the preservation of the environment.

PRINCIPLES FOR SUSTAINABLE DEVELOPMENT

The Sustainability policy of Enersis is enshrined in the

Seven Commitments for Sustainable Development,

guidelines made public by our parent, ENDESA S.A., in

2003. These principles are aligned with the company’s

corporate vision, mission and values and are the criteria

that guide the balanced compliance of our responsibilities

in the economic, social and environmental spheres.

FOCUS ON EDUCATION

Good Governance
Commitment with good
governance and ethical behavior

Innovation
Commitment with efficiency

Results Orientation
Commitment with the creation
of value and profitability

Community
and the Environment
Commitment with protection
of the surroundings

Environmental
Dimension

Economic
Dimension

Our People
Commitment with
the health, safety and
personal and professional
development of our personnel

Social
Dimension

Our Environment
Commitment with
the development of the
societies in which we operate

As a business group, we believe that Latin America

should venture strongly and decidedly, and with a long-

term view, in the education of our children and young

people, the pillars of the region’s future growth.

Customer Orientation
Commitment with quality
of service

enersis08
ANNUAL REPORT

We have therefore adopted as an action focus of

For these reasons, we have assumed the challenge of

In these eight years, 49 religious and civil monuments

our Sustainability policy, the support, promotion and

contributing to the development of education through

in Chile have been illuminated within this program.

development of activities in the area of education.

concrete actions that impact and contribute to some

During 2008, the lighting was inaugurated of San

We are firmly convinced that to take the large leap

degree to improving the quality of life.

Pablo de Carahue Church and Sagrado Corazón de Jesús

that Chile and Latin American countries need, both the

public administration and private-sector companies

02. ACTIONS 2008

should concentrate a large part of their efforts on

Cathedral in Villarrica, both in the Región of Araucanía,

and Nuestra Señora del Tránsito Church in Molina,

located in the town of Molina in the 7th Region.

improving the quality of education, a fundamental tool

The following describes some of the activities carried out

for facing the challenges that society imposes on us

by our company, with a clear focus on actions related

CHILE IN FOUR MOMENTS

every day.

to education, all in order to contribute to economic

The Enersis Group, El Mercurio and Universidad de Los

Everyone is aware of the various strengths we have

growth, social progress and the ecological balance of

Andes launched the Chile Bicentenary in Four Moments

as a nation, like having a healthy macro-economy, a

our surroundings.

recognized institutional structure and a consolidated

project in September 2008. Our company thus performed

a clear action for improving the education of thousands

capitals market. However, we must move forward and

EDUCATION AND CULTURE

of Chilean children who will be able to see this collection

improve the areas where there are weaknesses, like

free of charge.

education, a factor that certainly has undermined faster

ILLUMINATING MONUMENTS IN THE SOUTH OF

With the collaboration of specialists of different areas

growth and a greater social equality, and made them

THE WORLD

and with the use of new technology and a novel and

difficult.

Enersis and its subsidiaries Endesa Chile and Chilectra,

often unique iconography, a document is presented to

In order to reinforce economic growth, with the

and Fundación Endesa, have been carrying out the

the public to make known aspects of daily life in our

consequent care and respect for the environment, and

Illuminating Monuments in the South of the World

country in the 18th, 19th and 20th Centuries.

social progress, it is necessary for better-prepared people

program since 2000.

Chile in Four Moments will become the principal work

to enter the labor market, who can then generate even

This projec t originated with the signing of an

of the celebration of the bicentenary and be published

more wealth for Chile.

agreement with the Episcopal Conference of Chile in

successively between the years 2008 and 2010.

We therefore believe that a deficient education is

October 2000, and renewed on two occasions, in 2004

In all, there will be 16 collectable fascicles of 72 pages

a synonym for ill-prepared professionals and workers,

and early 2007. On the last occasion, the commitment

each which will make up by the end of the work, in June

a situation that impac t s direc tly on the lack of

of the Enersis Group was extended to 2011.

2010, a total of four volumes: 1710, 1810, 1910 and

opportunities.

Historical Iconography of Chile.

ANNUAL REPORT
SUSTAINABILITY

DONATION OF L IBRARIES

MARINE BENTHONIC FAUNA OF THE CHILEAN

Following studies carried out in 2007 for the strategic

In collaboration with El Mercurio, Enersis has supported

PATAGONIA

definition, we proceeded to introduce the program in

this campaign for promoting reading in remote

With the publishing of the book “Marine Benthonic

2008, developed in two phases: Pilot Test (experimental

communities far from urban centers since 2001,

Fauna of the Chilean Patagonia”, Enersis and Fundación

phase) and Mass Launch.

contributing complete collections of books to more than

San Ignacio del Huinay will offer to the local and global

A reduced number of volunteers took part in the first

10 libraries in isolated areas.

scientific community the first guide for the multi-taxa

phase, selected at random from among the company’s

During 2008, notable were the donations to the

identification of Chile’s fjords region.

various management areas. Later, in the Mass Launch

Municipal Library of Pedro Mariño de Lobera, Coronel,

The document included material collected over

phase, 15% of the personnel registered who, with their

in the Region of Biobío, and the Municipal Library of

10 years and a total of 9 expeditions, with close to

collaboration and efforts, directly benefited a total of

Paredones, in the 6th Region.

450 species. Of these organisms, close to 49 are new

180 children, from kindergarten to 8th grade, from

The program has also benefited the villages of Cunco,

specimens, particularly: Halopteris enersis, Tethocyathus

the Miravalle school in the district of Peñalolén, and

Cochamó, Puerto Natales, Santa Bárbara, Cochrane,

endesa and Caryophyllia huinayensis.

indirectly the whole student community and residents

Easter Island, Taltal, Putre, Zúñiga, Hornopirén, Los

Molles and Mincha.

CORPORATE VOLUNTEERS

of the area near the school.

The Corporate Volunteers combine ac tions of

community help with a program of complementary

NATIVE TREES OF C HILE

This program is oriented to cover the specific needs of

infants teaching, through two projects (Raise Your Ideas

This document, prepared by Enersis and Fundación

the community in the area of education, offering at the

and Development Activities) which have been specially

San Ignacio del Huinay, describes in more than 190

same time a response to the curiosity of the company’s

designed to meet the different needs and interests of the

pages a total of 75 Chilean tree species.

personnel: the possibility of combining their professional

personnel. Both initiatives were implemented in 2008

Each has a brief description and detailed pictures (the

and private lives through participating in a solidarity-

through an alliance between Enersis and Corporación

tree, bark, leaves, flowers and fruit), plus a map showing

type project.

Crearte, a charitable social organization specialized in

their location by province. This book is undoubtedly

The initiative was designed based on a model

developing the human capital of boys and girls, helping

becoming a unique object at the local level, considering

of continuous improvement involving 3 stages:

them become the protagonists of their development.

the quality of the images, the description of each one

strategic definition, implementation, and control

and its format.

and evaluation.

enersis08
ANNUAL REPORT

INNOVATION

NOVARE

CLIMATE CHANGE IN LATIN AMERICA: IMPACT,

SOCIETY

MITIGATION AND F INANCING

Enersis, in its constant concern for the effects of global

CONTRIBUTIONS TO FOUNDATIONS AND WEL-

In order to channel intellectual capital and creative

warming, supported Endesa Latin America and CEPAL

FARE INSTITUTIONS

potential and generate a climate in which to encourage

in the organization of the seminar “Climate Change in

As an important member of society, Enersis supports

innovation, Enersis consolidated Novare in 2008, a tool

Latin America: Impact, Mitigation and Financing” whose

various institutions and foundations carrying out local

for managing the internal flow of ideas, offering Enersis

purpose was the presentation of studies with respect

welfare work, through sponsorships and donations.

Group employees the opportunity to submit their ideas

to the future evolution of emissions of greenhouse-

During 2008, support was provided to Fundación

that are susceptible to becoming innovation projects.

effect gases and the opportunities for mitigation of

Kast, Fundación Paz Ciudadana, Hogar de Cristo and

In addition, Enersis, CAM, Synapsis and the Group’s

climate change in Argentina, Brazil, Chile, Colombia

Fundación Eduardo Frei, among others.

distributors in Latin America can share knowledge and

and Peru. These studies were sponsored by Endesa S.A.

exchange experiences to reinforce the development of

and carried out by distinguished academic and research

SPONSORSHIPS

R&D through Novare.

entities including Universidad de Chile, Universidad de

SEMINARS

CHILE DAY

Los Andes, Colombia, Universidad Católica del Perú and

VELÁzQUEz IN THE WORKS OF BRU AND CIEN-

Fundación Bariloche.

FUEGOS

4TH INTERNATIONAL CONFERENCE FOR CHI-

the exhibition “Velázquez in the works of Bru and

The Enersis Groujp formed part of the sponsors for

Enersis, as a member of AmCham Chile and its

LEAN ISSUERS

Cienfuegos”, which displayed a selection of 26 works

Chilean Issuers Committee, organized and carried out

For the fourth consecutive year, Enersis organized, as

demonstrating the pictorial work of the outstanding local

the celebration of Chile Day on the New York Stock

a member of AmCham Chile and its Chilean Issuers

artists, Roser Bru (born 1923) and Gonzalo Cienfuegos

Exchange, NYSE.

Committee, the 4th International Conference for Chilean

(born 1949), all inspired by paintings of Diego Velázquez

The purpose of the meeting was to discuss investment

Issuers.

(1599-1660), especially “Las Meninas”.

alternatives in Chile and the strength of Chilean

The meeting, which is one of the most technical

companies that trade their shares on the American

meetings on the subject of capital markets and debt

2ND CHRISTMAS CONCERT AT THE MILITARY

market.

issues in Chile, was attended by well-known economists,

COLLEGE

portfolio managers and executives of banks and

The company was one of the sponsors of the ‘2nd

investment funds, both local and international.

Christmas Concert’, an event organized by the Military

ANNUAL REPORT
SUSTAINABILITY

Collage and took place in December in the institute’s

SEMINARS AND R OUND TABLE

PRIzES

Court of Honor; this was attended by over 3,000

The company sponsored conferences organized by

people.

Estrategia newspaper in conjunction with the Central

During 2008, the Enersis Group was recognized for

Bank, in order to know the bank’s monetary policy

its actions in various areas, in particular the following

3RD INTERNATIONAL EDUCATION CONGRESS

reports.

prizes:

“READING-WRITING, STRATEGIES THAT W ORK”

It also sponsored congresses of coaching, executives

Enersis was one of the sponsors of the 3rd International

of excellence and customer loyalty, and the Santiago

TEN BEST COMPANIES FOR WORKING MOTHERS

Education Congress “Reading-Writing, Strategies

Anniversary Round Table.

AND FATHERS

that Work”, an event that brought together 1,000

The Enersis Group achieved an outstanding position

teachers from the cities of Concepción, Santiago and

MUNICIPALITY OF V ITACURA

in the sixth edition of the ranking of the Ten Best

Viña del Mar.

Cultural activities organized by the municipality of

Companies for Working Mothers and Fathers. The study,

9TH CYCLE OF R EGIONAL DEVELOPMENT

For the fifth consecutive year, Enersis sponsored the

RADIO BEETHOVEN

Vitacura were sponsored.

made by Fundación Chile Unido and Ya magazine of

El Mercurio, distinguishes the companies that have

policies that facilitate the conciliation of working life

Cycle of Regional Development of the Diario Financiero,

The company sponsors Radio Beethoven’s “Cultural

with family life and in turn promote the adoption of

whose object is to take to the regions the most notable

Panorama”, program transmitted Monday to Saturday

these practices.

political, economic and financial representatives of Chile

in a format of four daily micro-programs.

and generate a debate with respect to national and

ENDESA SPAIN’S CONTRIBUTION TO THE COM-

zonal matters of interest that in turn improve the quality

RADIO AGRICULTURA

MUNITY

of information for taking business decisions.

The company sponsors the program ‘The Minute of

During the 30-year anniversary celebrations of Estrategia

11 events were organized during 2008 with an

Good Language’, a space conducted by Professor

newspaper, Endesa S.A. received the distinction of

average attendance of 130 people including opinion

Mario Banderas, transmitted Monday to Friday with a

Contribution to the Community due to the series of

leaders, businessmen, politicians and academics.

frequency of four daily spots.

activities and programs the company organizes through

its subsidiaries in Latin America.

enersis08
ANNUAL REPORT

BEST INVESTOR RELATIONS TEAM IN C HILE

of the ranking that covers a total de 50 non-financial

initiative covering more than 150 facilities in 33 districts

Enersis was praised as the Best Investor Relations

companies in Argentina, Brazil, Chile, Colombia and

of the company’s concession area. Around 80 thousand

Team in Chile, after heading the Top 100 ranking in

Mexico. The survey was prepared by the consultancy

people use these facilities monthly to play sports and

that category, as measured by Capital magazine and

Management & Excellence and the business magazine

carry out recreational and cultural activities.

Santander Global Banking & Markets.

LatinFinance.

CIGRÉ PRIzE FOR I NNOVATION

FIRST PLACE IN THE CATEGORY UTILITIES SEC-

12TH ANNUAL REPORTS COMPETITION

At the 3rd Cigré Prize-Giving Dinner, Chilectra received

TOR CORPORATE GOVERNANCE PRACTICES

Enersis, Endesa Chile and Chilectra were recognized in

a distinction in the Innovation category for its constant

In the tenth edition of Investor Relations Global Rankings

the category of Best Group Annual Report, according

commitment with the development of a culture of

(IRGR 2008), Enersis was placed first in the category

to a study carried out by Gestión magazine and

innovation, providing solutions that contribute to the

Utilities Sector Corporate Governance Practices, and

PricewaterhouseCoopers.

benefit of its customers.

also among the Top 5 in Latin America. The survey

was carried out by MZ Consult in association with the

TOP 10 IN 4 TH CSR R ANKING 2008

ACHS PRIzE FOR EFFECTIVE ACTION IN SAFETY

companies sponsoring IRGR.

Endesa Chile was placed in the Top Ten of the Corporate

MATTERS

BEST MANAGED COMPANY IN LATIN AMERICA IN

annually by Fundación PROhumana, CPC and Capital

Safety Association (ACHS) recognized Chilectra for its

THE UTILITIES SECTOR

magazine.

constant and effective work in this area.

Social Responsibility (CSR) ranking 2008, prepared

At the annual Safety Prize Awards 2008, the Chilean

Enersis was distinguished as the Best Managed Company

in Latin America in the Utilities Sector, according to the

LABOR SAFETY PRIzE

BEST SOCIAL MANAGEMENT REPORT

magazine Euromoney. The company obtained the highest

A distinction for efforts in occupational safety and risk

Chilectra’s Sustainability Report 2007 won the distinction

score (11.86%) in the utilities segment.

prevention was awarded by the National Safety Council

of the Best Social Management Report according to a

THE BEST GOVERNED MAJOR L ATIN CORPORA-

version of the Annual National Safety Competition.

RSE, within the framework of prizes for the best

TIONS 2008

sustainability reports.

(CNS) to Endesa Chile, within the framework of the 46th

study made for the second consecutive year by Acción

Enersis and its subsidiary Endesa Chile obtained an

AMCHAM PRIzE FOR G OOD CORPORATE CITIzEN

outstanding position in The Best Governed Major

Chilectra received this recognition from AmCham Chile

Latin Corporations 2008, being among the Top 10

for its Multi-Use Playing Fields Lighting program, an

ANNUAL REPORT
SUSTAINABILITY

03. HUMAN RESOURCES

LABOR CLIMATE

The training programs totaled 15,450 hours of

training, an average of 74 hours per employee and

distributed as follows: 11% training for management,

52% for professionals and 37% for staff.

Towards the end of 2007, a working environment survey

was carried out in all the Enersis Group companies, the

OTHER ACTIVITIES

results of which were announced in the first quarter of

2008. This survey enabled to measure the perception of

During the year Enersis carried out several activities

each employee in terms of Environment, Commitment

focused on the wellbeing and satisfaction of its

and Corporate Culture and establish action lines in

personnel and their families. Some of the main activities

those areas requiring improvement. 98% of workers

were:

at Enersis took part voluntarily in the survey and the

• Dance workshops, sports schools, physical training

level of satisfaction obtained, measures through Work

programs and painting workshops.

Satisfaction and Motivation, was 81%.

Recreational programs and summer camps for

employees’ children held during summer and winter

TRAINING

vacations.

• Prizes awarded for academic excellence to employees’

Training activities were oriented to the development

children at tending junior, middle and senior

of the necessary professional and technical skills for

schools.

reaching and maintaining the efficiency levels. In

• Training activities for spouses and children of

addition to training programs in subjects like computer

personnel, focused on information technology and

use, languages, human resources and management

computer skills.

formation, training was also given this year in economic

• Organization of the Olympics, a bi-annual event in

and financial subjects, especially in training programs in

which all employees of the Enersis Group in Chile

International Financial Reporting Standards specifically

take part.

for the company. These programs took up 32% of the

• Corporate Volunteers Program for employees.

year’s training time.

• Second internal photographic competition.

A Leadership Development Program was also designed

for all company heads.

enersis08
ANNUAL REPORT

IDENTIFICATION OF THE SUBSIDIARY AND ASSOCIATE COMPANIES

ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARY AND ASSOCIATE COMPANIES

AGRÍCOLA DE CAMEROS

Subscribed & paid capital (ThCh$)
37,029,390

Name
Sociedad Agrícola
de Cameros Limitada

Kind of company
Limited partnership.

Tax No.
77,047,280-6

Address
Camino Polpaico a Til-Til,
S/N Til-Til

Telephone
(56 2) 378 4700

Subscribed & paid capital (ThCh$)
5,738,046

Objects
The exploitation of agricultural land.

Business
Real estate.

Principal executive
Hugo Ayala Espinoza

Holding of Enersis
(direct & indirect)
57.50% - Unchanged.

AGRÍCOLA E INMOBILIARIA
PASTOS VERDES

Name
Agrícola e Inmobiliaria
Pastos Verdes Limitada

Kind of company
Limited partnership.

Tax No.
78,970,360-4

Address
Américo Vespucio 100,
Pudahuel, Santiago, Chile

Telephone
(56 2) 601 0601

Objects
T h e e x p l o i t a t i o n o f a g r i c u l t u r a l
land and all k inds of real - es t ate
activities, including the urbanization,
commercialization and disposal of land
in any legal form.

Business
Real estate.

Principal executive
Bernardo Küpfer Matte

Holding of Enersis
(direct & indirect)
55.00% - Unchanged.

AGUAS SANTIAGO
PONIENTE

Name
Aguas Santiago Poniente S.A.

Kind of company
Closely-held corporation, subject to the
regulations for open corporations

Tax No.
96,773,290-7

Address
Américo Vespucio 100,
Pudahuel, Santiago, Chile

Telephone
(56 2) 601 0601

Subscribed & paid capital (ThCh$)
6,601,121

Objects
Exclusively to establish, construct and
exploit public utilities for producing
and distributing water; collect, treat
and dispose of sewage, and carr y
out the other func tions expressly
authorized by Law 382 of 1988 and
its amendments.

Business
Water and related services.

Board of directors
Víctor M. Jarpa Riveros
Cristóbal Sánchez Romero
Andrés Salas Estrades
Luis F. Edwards Mery
José M. Guzmán Nieto
Principales ejecutivos
Jorge Alé Yarad

Shareholding of Enersis
(direct & indirect)
55.00% - Unchanged.

AMPLA ENERGÍA

Name
Ampla Energia e Serviços S.A.

Kind of company
Open corporation

Address
Praç a Le oni Ramos, N° 01 – S ão
Domingos, Niteroi, Río de Janeiro,
Brazil

Ramiro Alfonsín Balza
(Chief Regional Planning & Control Officer, Enersis)
Ramón Castañeda Ponce
Luiz Felipe Lampreia
Alternate director
Marcos da Silva Crespo

of any kind to holders of concessions,
permits or authorizations of electricity
ser vices and their customers and
participate as shareholder in other
energy sector companies.

Principal executives
Cristián E. Fierro Montes
José Alves de Mello Franco
Luciano A. Galasso Samaria
Carlos E. Naegele Moreira
Claudio Rivera Moya
Luiz Carlos Bettencout
Déborah M. Rosa Brasil
Albino Motta da Cruz
André Moragas da Costa
Aurelio R. Bustilho de Oliveira

Commercial relations
Structured loans

Shareholding of Enersis
(direct & indirect)
69.88% - Unchanged

Business
Investments.

Board of directors
Mário F. de Melo Santos
Antonio B. Pires e Abuquerque
Ramiro Alfonsín Balza
(Chief Regional Planning & Control Officer, Enersis)
Cristóbal Sánchez Romero
Marcelo Llévenes Rebolledo
Rafael López Rueda
Nelson Ribas Visconti
Luiz Felipe Lampreia
José Alves de Mello Franco

Principal executives
Cristián E. Fierro Montes
Luiz Carlos Bettencourt
José Alves de Mello Franco

Telephone
(55 21) 2613 7000

Proportion of Enersis’s assets
2.26%

Subscribed & paid capital (ThCh$)
34,368,644

Subscribed & paid capital (ThCh$)
252,235,588

Objects
S t u d y, p l a n , p r o j e c t , c o n s t r u c t
and explore electricity production,
t r a n s m i s s i o n , t r a n s f o r m a t i o n ,
distribution and sale systems, and
provide related services that have been
or may be conceded; carry out research
in the energy sector and participate as
a shareholder in other companies in the
energy sector.

AMPLA INVESTIMENTOS

Name
Ampla Investimentos e
Serviços S.A.

Type of company
Open corporation

Address
Praça Leoni Ramos, N° 01 – parte São
Domingos, Niterói, Río de Janeiro,
Brazil

Business
Distribution of electricity.

Telephone
(55 21) 2613 7071

Board of directors
Mario F. de Melo Santos
Antonio B. Pires e Abuquerque
Nelson Ribas Visconti
Eduardo dos Santos Machado
Cristóbal Sánchez Romero
José Alves de Mello Franco

Shareholding of Enersis
(direct & indirect)
69.88% - Unchanged.

Proportion of Enersis’s assets
0.22%

ARA - INGENDESA

Name
Consorcio Ara - Ingendesa Ltda.

Type of company
Limited partnership

Tax No.
77,625,850-4

Address
Santa Rosa 76, piso 10,
Santiago, Chile

Telephone
(562) 630 9000

enersis08
ANNUAL REPORT

Subscribe & paid capital (ThCh$)
1,000

Objects
Provision of engineering ser vices,
including the projection, planning and
per forming of engineering studies
and projects, advice and consultancy,
provision of assistance and technical
a n d m a n a g e m e n t i n f o r m a t i o n ,
inspection and development of projects
and works.

Business
Engineering services.

Representatives
Rodrigo Alcaíno Mardones
Alejandro Santolaya de Pablo
Alternate representatives
Fernando Orellana Welch
Julio Montero Montegú
Elías Arce Cyr
Cristián Araneda Valdivieso

Holding of Enersis
(direct & indirect)
29.99%- Unchanged.

per forming of engineering studies
and projects, advice and consultancy,
provision of assistance and technical
a n d m a n a g e m e n t i n f o r m a t i o n ,
inspection and development of projects
and works.

Business
Engineering services.

Representatives
Rodrigo Alcaíno Mardones
Alejandro Santolaya de Pablo
Ernesto Ferrandiz Doménech

Alternate representatives
Cristián Araneda Valdivieso
Elías Arce Cyr
Julio Montero Montegú
Fernando Orellana Welch
Joaquín Botella Malagón
Angel Ares Montes

Holding of Enersis
(direct & indirect)
19.99% - Unchanged.

Business
Financial services.

Board of directors
Manuel Irarrázaval Aldunate
Daniel Bortnik
Ricardo Rodríguez
Horacio Reyser

Shareholding of Enersis
(direct & indirect)
29.99% - unchanged

José Ignacio Pires Medeiros
Carlos Ewandro Moreira
Eugenio Cabanes Durán
Luiz Carlos Bettencourt
José Alves de Mello Franco
Ana Claudia Gonçalves Rebello
Aurélio Ricardo de Oliveira
Nelson Ribas Visconti

Shareholding of Enersis
(direct & indirect)
53.36% - Unchanged.

CACHOEIRA DOURADA

CAM

Name
Centrais Elétricas Cachoeira
Dourada S.A.- CDSA

Name
Compañía Americana de
Multiservicios Ltda.

Type of company
Closely-held corporation

Type of company
Limited partnership

Address
Rodovia GO 206, Km 0, Cachoeira
Dourada Goiania, Goiás, Brazil

Tax No.
96,543,670-7

ATACAMA FINANCE

Telephone
(55 62) 3434 9000

ARA INGENDESA SENER

Name
Consorcio Ara - Ingendesa -
Sener Ltda.

Name
Atacama Finance Co.

Type of company
Exempt company

Subscribed & paid capital (ThCh$)
164,950,142

Objects
Studies, projections, construction,
installation, operation and exploration
of electricity generating plants, plus the
related commercial activity. Promote
or par ticipate in other companies
constituted to produce electricity, in
or outside the state of Goiás, by the
subscription for any number of shares
or quotas.

Address
Caledonian House P.O. Box 265 G,
George Town, Grand Cayman, Cayman
Islands

Telephone
(562) 630 9000

Subscribed & paid capital (ThCh$)
4,009,635

Business
Electricity generation.

Objects
Borrowing of money in the financial
market through loans of the issue
of bonds or other instruments, and
loans of money to other companies,
p ar tic ular l y t ho s e relate d to t he
Atacama project.

Board of directors
Guilherme Gomes Lencastre
Manuel Herrera Vargas
Marcelo Llévenes Rebolledo

Principal executives
Guilherme Gomes Lencastre
Manuel Herrera Vargas

Type of company
Limited partnership

Tax No.
76,738,990-6

Address
Santa Rosa 76, piso 10,
Santiago, Chile

Telephone
(562) 630 9000

Subscribed & paid capital (ThCh$)
1,000

Objects
Provision of engineering ser vices,
including the projection, planning and

Address
Tarapacá 934, Santiago, Chile

Telephone
(56 2) 389 7300

Subscribed & paid capital (ThCh$)
2,572,038

Objects
Provide for its own or third party’s
account &/or associated with other
parties, in Chile or abroad, services in
general, real estate and construction
of real estate, impor t, expor t and
distribute products of any kind.

Business
General services.

Representatives
Cristóbal Sánchez Romero
Klaus Winkler Speringer
Alternate representatives
Gonzalo Mardones Pantoja
Eduardo López Miller

Principal executives
Klaus Winkler Speringer

Gonzalo Mardones Pantoja
Omar Aramayo James
Pedro Carrizo Polanco
Alfredo Herrera Carrasco
Tomás Casanegra Rivera
Ricardo Camezzana Leo
Carlos A. Zarruk Gómez
Pablo Calderón Pacheco
Alejandro Cabrera Croqueville

Commercial relations
Civil works management services and
supply of financial administration,
management, corporate and general
services. Trading current account.

Holding of Enersis
(direct & indirect)
100% - Unchanged.

Proportion of Enersis’s assets
1.02%

CAM ARGENTINA

Name
Compañía Americana de
Multiservicios (CAM) S.R.L.

Type of company
Limited partnership
Address
Avda. Vélez Sarsfield 1160,
Capital Federal, Argentina

Telephone
(54 11) 4302 2951/58

Subscribed & paid capital (ThCh$)
636,450

Objects
The provision of professional and
technical ser vices to national and
international companies and organisms,
public and private, advice, technical
assistance, assembly, process control,
start-up and maintenance of systems,
machinery and apparatus, maintenance
of transport and distribution net works,
all related to the production, transport
and distribution of electricity.

ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARY AND ASSOCIATE COMPANIES

Business
General services.

Principal executive
Pablo Calderón Pacheco

Holding of Enersis
(direct & indirect)
100% - Unchanged.

CAM BRASIL

Name
Cam Brasil Multiserviços Ltda.

Type of company
Limited partnership

Address
Avda. José Mendonça de Campos, 680
São Gonçalo – RJ, Brazil

Telephone
(55 21) 2702 8000

Subscribed & paid capital (ThCh$)
4,049,388

Objects
Provision of electricity engineering
services, construction of networks and
large works, mass commercial activities
in utilities.

Business
General services.

Principal executive
Tomás Casanegra Rivera

Holding of Enersis
(direct & indirect)
100% - Unchanged.

CAM COLOMBIA

Name
Compañía Americana de
Multiservicios Ltda. Colombia

Type of company
Limited partnership

Address
Avda. Carrera 68 N° 5-21,
Bogotá, Colombia

Address
Jr. Teniente César López Rojas 201, piso
3, Maranga, San Miguel, Lima, Peru

Tax No.
76,003,204-3

Telephone
(57 1) 417 3000

Telephone
(51 1) 561 1604

Address
Santa Rosa 76, piso 12,
Santiago, Chile

Subscribed & paid capital (ThCh$)
494,522

Subscribed & paid capital (ThCh$)
995,250

Telephone
(562) 630 9000

Objects
Provide for its own or third party’s
account &/or associated with other
parties, in Colombia or abroad, the
following activities: a) services: the
provision of professional and technical
services to national and international
companies and organisms, public
and private; b) construction and real
estate, through the construction and
renovation of all kinds of properties
and carrying out projects; c) import
and export of all kinds of materials;
d) trading, through the purchase, sale,
barter, fractioning, consignment and
distribution of all kinds of materials;
e) industrial, through the production,
assembly or manufacture in any of
their stages of all kinds of materials
or machiner y ; f ) design, creation,
ex ploitation and s ale of ser vices
and information and communication
technology (hardware &/or software);
g) investments through participation
in other companies.

Objects
Carry out for its own or third party’s
account professional and technical
s er v ices in the management and
purchase of materials or equipment
for services including those related
t o e l e c t r i c i t y , w a t e r , g a s a n d
communications; the administration
of warehouses and materials, control
and performing of works, metering
and calibration, advice, technical
assistance, assembly, process control,
start up and maintenance of systems,
machinery and apparatus, maintenance
of transport and distribution networks;
all related to the production, transport
a n d d i s t r i b u t i o n o f w a t e r, g a s ,
telecommunications and energy in
any of its forms. Construction and real
estate: construction and renovation of
all kinds of properties and the carrying
out of all kinds of property management
and project execution, direction and
carrying out of engineering and /or
architectural works in general.

Subscribed & paid capital (ThCh$)
12,284,743

Objects
Promote and develop renewable energy
projec ts, principally wind energy,
identify and develop clean development
mechanism (CDM) projects and act
as depository and trader in emission
reduc tion cer tif icates originating
from these projects. The generation,
transport, distribution, supply and sale
of electricity, for which it may acquire
and exploit the respective concessions
and grants.

Business
Wind energy generation.

Board of directors
Juan Benabarre Benaiges
Claudio Iglesis Guillard
Rodrigo Alcaíno Mardones
Sebastián Fernández Cox
Cristóbal García-Huidobro Ramírez

Business
General services.

Principal executives
Carlos Alberto Zarruk Gómez

Principal executive
Ricardo Camezzana Leo

Holding of Enersis
(direct & indirect)
100% - Unchanged.

CAM PERÚ

Name
Compañía Americana de
Multiservicios del Perú S.R.L.

Type of company
Limited partnership

Holding of Enersis
(direct & indirect)
100% - Unchanged.

CANELA

Name
Central Eólica Canela S.A.

Type of company
Closely-held corporation

Alternate directors
Aníbal Bascuñan Bascuñan
Alan Fisher Hill
Julio Montero Montegú
Claudio Betti Pruzo
Juan Cristóbal Pavéz Recart

Principal executive
Wilfredo Jara Tirapegui

Shareholding of Enersis
(direct & indirect)
44.98% - Unchanged.

CELTA

Name
Compañía Eléctrica Tarapacá S.A.

Type of company
Closely-held corporation

Tax No.
96,770,940-9

Address
Santa Rosa 76, Santiago, Chile

Telephone
(562) 630 9000

Subscribed & paid capital (ThCh$)
103,099,643

Objects
Principally the production, transport,
distribution and supply of electricity,
in Chile and internationally, for which
it may obtain, acquire and exploit the
respective concessions and grants. Its
priority object until its conclusion is to
construct a thermal generating plant
and moorings or port facilities for the
loading and unloading of inputs and
other products in the sector called
Punta de Patache, to the south of
Iquique in Chile’s 1st Region. It also
inc lu d e s t h e c o ns t r uc t io n o f t h e
transmission line with its substations
b et we en the plant and the D oña
I n é s d e Co l l a h u a s i c o p p e r m i n e
and reinforcement of the Northern
Electricity Grid.

Business
Energy generation.

Board of directors
Chairman
Alejandro García Chacón
Directors
Alan Fischer Hill
Liones Roa Burgos

Principal executive
Eduardo Soto Trincado

Shareholding of Enersis
(direct & indirect)
59.98%- Unchanged.

enersis08
ANNUAL REPORT

CEMSA

Name
Endesa Cemsa S.A.

Type of company
Corporation

Address
Pasaje Ing. E. But t y 220, piso 16,
Buenos Aires, Argentina.

Telephone
(5411) 4875 0600

Subscribed & paid capital (ThCh$)
7,020,284

Objects
For its own and /or for the account
and on behalf of third parties and /
or associated with other par ties,
the wholesale purchase and sale or
electricity power and energy produced
and /or consumed by third parties,
including but not limited to the import
and export of electricity power and
energy and the commercialization of
royalties, and the provision and /or
performing of services related to the
above activity, all in accordance with
prevailing regulations.

Business
Energy trading.

Board of directors
José María Hidalgo Martín-Mateos
José Venegas Maluenda
Fernando Antognazza
Alternate directors
Roberto José Fagan
Arturo Plácido Miguel
Pappalardo
Pedro Cruz Viné

Principal executive
Juan Carlos Blanco

Shareholding of Enersis
(direct & indirect)
26.99% - Unchanged.

CENTRALES
HIDROELÉCTRICAS
DE AYSÉN S.A.

Name
Centrales Hidroeléctricas
de Aysén S.A.

Type of company
Closely-held corporation

Tax No.
76,652,400-1

Address
Miraflores 383, Of. 1302,
Santiago, Chile

Telephone
(562) 713 5000

Subscribed & paid capital (ThCh$)
72,916,665

Objects
The development, financing, ownership
and exploitation of a hydroelectric
project in the 11th Region of Aysén,
which contemplates an estimated
capacit y of 2,355 MW distributed
between five hydroelectric plants,
which is called the “Aysén Project”.
The following activities form part of its
objects: a) the production and transport
of electricity; b) the supply and sale
of electricity to its shareholders; c)
the administration, operation and
maintenance of hydraulic work s,
electrical systems and hydroelectric
generating plants; d) the provision
of services related to its objects. The
above activities may be carried out
for its own or third party’s account.
The company may obtain, acquire and
exploit the required concessions and
permits for this purpose.

Business
Energy generation (project).

Board of directors
Antonio Albarrán Ruiz-Clavijo
Rafael Mateo Alcalá

Juan Benabarre Benaiges
Rodrigo Alcaíno Mardones
Bernardo Larraín Matte
Luis Felipe Gazitúa Achondo

Alternate directors
Carlos Martín Vergara
Claudio Iglesis Guillard
Eduardo Morel Montes
Carlos Urenda Aldunate
Sebastián Fernández Cox
Cristián Morales Jaureguiberry

Principal executive
Hernán Salazar Zencovich

Shareholding of Enersis
(direct & indirect)
30.59% - Unchanged.

CHILECTRA

Name
Chilectra S.A.

Type of company
Open corporation

Tax No.
96,800,570-7

Address
Santa Rosa 76, piso 8,
Santiago, Chile

Telephone
(56 2) 675 2000

Subscribed & paid capital (ThCh$)
367,928,682

Objects
E x p l o i t i n C h i l e o r a b r o a d t h e
distribution and sale of hydraulic,
thermal, heat or any kind of electricity,
and the distribution, transport and
sale of fuels of any kind, supplying
this energy or fuel to most consumers
directly or through other companies.

Board of directors
Jorge Rosenblut Ratinoff
José María Calvo-Sotelo
Pedro Buttazzoni Álvarez
Hernán F. Errázuriz Correa
Marcelo Llévenes Rebolledo
Paolo Bondi
Macarena Carrión López

Principal ejecutives
Rafael López Rueda
Juan Pablo Larraín Medina
Gonzalo Vial Vial
Cristóbal Sánchez Romero
Guillermo Pérez del Río
Andreas Gebhardt Strobel
Enrique Fernández Pérez
Ramón Castañeda Ponce

Subscribed & paid capital (ThCh$)
390,008,060

Objects
Exploit abroad for its own or through
third parties the distribution and sale
of electricity. It may make investments
in foreign companies and make all
kinds of investments in all kinds of
mercantile instruments like bonds,
d e b e n t u re s , d e b t t i t l e s , c re d i t s ,
negotiable securities or other financial
or commercial documents, all with a
view to their natural and civil returns.
It may constitute, amend, dissolve
and liquidate foreign companies and
develop all other activities that are
complementary and/or related to the
above business.

Commercial relations
Structured loans; rentals of transmission
and substation lines; provision of
risk-prevention services; legal and
p r o f e s s i o n a l a d v i c e i n b u s i n e s s
a d minis t ratio n an d en gine er in g ,
financial management in general,
corporate and others.

Shareholding of Enersis
(direct & indirect)
99.09% - Unchanged.

Proportion Enersis’s assets
25.98%

Business
Investments.

Board of directors
Cristóbal Sánchez Romero
Ramón Castañeda Ponce
Ricardo Mebus Pumpin

Principal executives
Ricardo Mebus Pumpin

Shareholding of Enersis
(direct & indirect)
99.09% - Unchanged.

CHILECTRA INVERSUD

CHOCÓN

Name
Chilectra Inversud S.A.

Name
Hidroeléctrica El Chocón S.A.

Tax No.
99.573.910-0

Type of company
Closely-held corporation

Type of company
Corporation

Address
Avda. España 3301,
Buenos Aires, Argentina

Address
Santa Rosa 76, piso 8, Santiago,
Chile

Paid capital (ThCh$)
216,258,846

Business
Energy distribution.

Telephone
(56 2) 675 2000

Objects
Production of electricity and its block
commercialization.

ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARY AND ASSOCIATE COMPANIES

Business
Energy generation.

electricity, including import and export
activities.

Business
Energy distribution.

Telephone
(55 85) 3453-4082

COMPAÑÍA PERUANA
DE ELECTRICIDAD

Board of directors
Rafael Mateo Alcalá
José Miguel Granged Bruñen
Carlos Martín Vergara
Miguel Ortiz Fuentes
Julio Valbuena Sánchez
Alex Valdez
Julio Anguita
Orlando Díaz

Alternate directors
Fernando Antognazza
Francisco Domingo Monteleone
José María Hidalgo Martín-Mateos
Manuel Irarrázaval Aldunate
Juan Carlos Blanco
Héctor Osvaldo Mendiberri
Juan Carlos Nayar
Enrique Díaz

Principal executive
Fernando Claudio Antognazza

Shareholding of Enersis
(direct & indirect)
39.21% - Unchanged.

CIEN

Name
Compañía de Interconexión
Energética S.A.

Type of company
Corporation

Address
Praça Leoni Ramos, N° 1, piso 6,
Bloco 2, São Domingos, Niterói, Río
de Janeiro, Brazil

Business
Energy transmission.

Board of directors
Marcelo Andrés Llévenes Rebolledo
José Augustín Venegas Maluenda

Principal executives
Guilherme Gomes Lencastre
Aurelio Ricardo Bustillo de Oliveira
Luiz Carlos Ortins de Bettencourt
José Ignácio Pires Medeiros
Manuel Rigoberto Herrera Vargas
Carlos Ewandro Naegale Moreira
Ana Claudia Gonçalves Rebello
José Alves de Mello Franco
Eugenio Cabanes Durán
Nelson Ribas Visconti

Shareholding of Enersis
(direct & indirect)
53.57% - Unchanged.

CODENSA

Name
Codensa S.A. E.S.P.

Type of company
Corporation

Address
Carrera 13 A 93-66, Bogotá,
Colombia

Telephone
(57 1) 601 6060

Board of directors
José Antonio Vargas Lleras
Andrés Regué Godall
Orlando Cabrales Martínez
Lucio Rubio Díaz
Astrid Martínez Ortiz
Juan Carlos Ortega Lopez
Carlos Bello Vargas

Alternate directors
David Felipe Acosta
Roberto Ospina Pulido
Antonio Sedán Murra
Cristián Herrera Fernández
Henry Navarro Sánchez
Héctor Zambrano Rodríguez
Consuelo Beltrán Yazmit
Secretario del Directorio
Andrés Caldas Rico

Principal executives
Cristián Herrera Fernández
David Acosta Correa
Cristal Otárola Restrepo
Alba Urrea Gómez
Margarita Olano Olano
Luis Larumbe Aragón
Álvaro Camacho Borrero
Roberto Ospina Pulido
Carlos De La Espriella
Omar Serrano Rueda

Shareholding of Enersis
(direct & indirect)
21.81% (+0.8% change).

Proportion of Enersis’s assets
1.84%

Subscribed and paid capital (ThCh$)
495,005,355

COELCE

Telephone
(55 21) 3607 9500

Paid capital (ThCh$)
123,874,173

Objects
The produc tion, industrialization,
distribution and commercialization of

Objects
Distribution and sale of electricity
and the performing of all connected,
complementary and related activities to
the distribution and sale of electricity,
carrying out of works, designs and
consultancy in electrical engineering
and the sale of products to the benefit
of its customers.

Name
Companhia Energética do Ceará

Type of company
Foreign open corporation

Address
Rua Padre Valdevino, 150 - Centro,
Fortaleza, Ceará, Brazil

Subscribed & paid capital (ThCh$)
238,219,177

Objects
The distribution of elec tricit y and
related services in the state of Ceará.

Name
Compañía Peruana de
Electricidad S.A.C.

Type of company
Closely-held corporation

Business
Energy distribution.

Board of directors
Mario Fdo. de Melo Santos
Marcelo Llévenes Rebolledo
Cristóbal Sánchez Romero
Gonzalo Vial Vial
José Alves de Mello Franco
Aurélio Bustilho de Oliveira
Jorge Parente Frota Júnior
Fernando de Moura Avelino
Cristián Fierro Montes
Roberto de Paula Macieira
Antônio Pires e Albuquerque
Luciano A. Galasso Samaria
Nelson Ribas Visconti
Teobaldo José Cavalcanti Leal
José Alencar Araripe Júnior
Vladia Viana Regis
José Renato Ferreira Barreto
José Nunes de Almeida Neto
Juarez Ferreira de Paula
José Távora Batista
Luiz Carlos Bettencourt

Principal executives
Abel Alves Rochinha
José Nunes de Almeida Neto
Olga Jovanna Carranza Salazar
José Távora Batista
Aurélio Bustilho de Oliveira
José Renato Ferreira Barreto
Luiz Carlos Bettencourt
José Alves de Mello Franco
Silvia Cunha Saraiva Pereira

Shareholding of Enersis
(direct & indirect)
34.90% - Unchanged.

Address
Jr. Teniente César López Rojas 201,
Maranga, San Miguel, Lima, Peru

Telephone
(511) 561 1604

Subscribed & paid capital (ThCh$)
15,081,231

Objects
Make investments in general, especially
those related to the distribution and
generation of electricity.

Business
Energy distribution.

Principal executive
Ignacio Blanco Fernández

Shareholding of Enersis
(direct & indirect)
50.54% - Unchanged.

Proportion of Enersis’s assets
0.00%

CONSTRUCCIONES
Y PROYECTOS LOS
MAITENES

Name
Construcciones y Proyectos
Los Maitenes S.A.

Type of company
Closely-held corporation

Tax No.
96,764,840-K

100

enersis08
ANNUAL REPORT

Address
Américo Vespucio 100,
Pudahuel, Santiago, Chile

Telephone
(56 2) 601 0601

Address
Avda. España 3301,
Buenos Aires, Argentina

Telephone
(5411) 4307 3040

Type of company
Corporation

Address
Bartolomé Mitre 797, piso 13, Buenos
Aires, Argentina

Subscribed & paid capital (ThCh$)
4,712,875

Paid capital (ThCh$)
103,105,536

Subscribed & paid capital (ThCh$)
10,059,230

Objects
a) The construction for own or third
par ties’ account, on own or other
land, urbanized or not, of all kinds of
civil works, installations, buildings,
housing, offices and others; b) the sale
or disposal in any form of such building
works; c) the study and development
of projects for such buildings, including
engineering, architecture, financing,
commercialization, etc. For this, it
may act for its own or third party’s
account, either directly or forming
part of associations, communities,
companies and legal entities of any
kind, in which it may also assume the
management.

Business
Real estate.

Board of directors
Cristóbal Sánchez Romero
Victor Jarpa Riveros
Andrés Salas Estrades
Luis Felipe Edwards Mery
José Manuel Guzmán Nieto

Principal executive
Bernardo Küpfer Matte

Shareholding of Enersis
(direct & indirect)
55.00% - Unchanged.

COSTANERA

Name
Endesa Costanera S.A.

Type of company
Corporation

Objects
The production of electricity and its
block sale.

Business
Energy generation.

Board of directors
Rafael Mateo Alcalá
Máximo Bomchil
Julio Valbuena Sánchez
César F. Amuchástegui
José María Hidalgo Martín-Mateos
Miguel Ortiz Fuentes
Manuel Irarrázaval Aldunate
Eduardo J. Romero
Directores suplentes
Carlos Martín Vergara
Francisco Monteleone
Fernando C. Antognazza
Jorge Burlando Bonino
Roberto Fagan
Sergio Schmois
Bernardo Iriberri
Alfredo Mauricio Vítolo

Principal executives
José Miguel Granged Bruñen
Fernando Carlos Luis Boggini
Rodolfo Silvio Bettinsoli
Jorge Burlando
Sergio Schmois
Francisco Monteleone

Shareholding of Enersis
(direct & indirect)
41.85% - Unchanged.

CTM

Name
C o m p a ñ í a d e T r a n s m i s i ó n d e l
Mercosur S.A.

Objects
P r o v i d e h i g h - t e n s i o n e l e c t r i c i t y
transmission services both in relation
to national and international electricity
systems, in accordance with current
legislation, for which it may participate
in national or international tenders,
become a public-utilit y elec tricit y
concession-holder in high tension
nationally or internationally and carry
out all activities necessary for meeting
its objects, including expressly but not
limited to becoming party to contracts
for the construction, operation and
maintenance for the star t and / or
expansion of electricity transmission
lines, participate in the financing of
projects related directly or indirectly
with those enterprises as lender and/
or borrower and/or guarantor in favor
of third parties.

Business
Energy transmission.

Board of directors
José María Hidalgo Martín-Mateos
Guilherme Lencastre
Arturo Miguel Pappalardo

Alternate directors
Juan Carlos Blanco
Roberto José Fagan
José Venegas Maluenda

Principal executive
Francisco J. Bugallo Sánchez

Shareholding of Enersis
(direct & indirect)
53.56% - Unchanged.

DISTRILEC INVERSORA

Name
Distrilec Inversora S.A.

Type of company
Foreign closely-held corporation

Address
San José 140 (C1076AAD)
Buenos Aires, Argentina

Telephone
(54 11) 4370 3700

Subscribed & paid capital (ThCh$)
323,001,957

Objects
Exclusively to invest in companies
constituted or to be constituted whose
principal activity is the distribution of
electricity or that directly or indirectly
participate in companies with that
principal business through all kinds
of financial and investment activities,
except those in the laws of financial
entities, the purchase and sale of
public and private debt paper, bonds,
shares, negotiable instruments and the
granting of loans, and the placement
of its funds in bank deposits of any
kind.

Business
Investments.

Board of directors
Claudio Fontes Nunes
Rafael López Rueda
Ramiro Alfonsín Balza
(Chief Regional Planning & Control Officer, Enersis)
Daniel Casal
Santiago Daireaux
Fermín Demonte
María Inés Justo
Gabriel Marchione
Rigoberto Mejía Aravena
Gonzalo Vial Vial
Directores suplentes
Pedro Eugenio Aramburu
Manuel María Benites
Esteban Diez Peña

Mónica Diskin
Roberto José Fagan
Martín Mandarano
Jean Yatim Morillas
Enrique Rosello
Jorge Vugdelija

Principal executive
José María Hidalgo Martín-Mateos

Shareholding of Enersis
(direct & indirect)
50.93% - Unchanged.

Proportion of Enersis’s assets
2.04%

EDEGEL

Name
Edegel S.A.A.

Type of company
Open corporation

Address
A v d a . V í c t o r A n d r é s B e l a ú n d e
147, edificio real 4, piso 7, Centro
Empresarial Camino Real, San Isidro,
Lima, Peru

Paid capital (ThCh$)
540,044,533

Objects
Principally, and in general, electricity
generation activities, also the acts
and civil, industrial, commercial and
any operations relating or leading to
the principal objects.

Business
Energy generation.

Board of directors
Rafael Mateo Alcalá
Juan Benabarre Benaiges
Giora Almogy
Reynaldo Llosa Barber
Ricardo Harten Costa
Alfonso Bustamante Canny
Alberto Triulzi Mora
Directores suplentes

ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARY AND ASSOCIATE COMPANIES

101

Julián Cabello Yong
Arrate Gorostidi Aguirresarobe
Francisco García Calderón
Roberto Cornejo Spickernagel
Jaime Zavala Costa
Milagros Noriega Cerna
Rosa M. Flores-Aráoz Cedrón

Principal executives
Carlos Luna Cabrera
Christian Schroder Romero
Milagros Noriega Cerna
Julián Cabello Yong
Rosa M. Flores-Aráoz Cedrón

Shareholding of Enersis
(direct & indirect)
19.83% - Unchanged

EDELNOR

Name
Empresa de Distribución
Eléctrica de Lima Norte S.A.A.

Type of company
Foreign open corporation

Gonzalo Carbó De Haya

Principal executives
Ignacio Blanco Fernández
Carlos Solís Pino
Walter Sciutto Brattoli
Rocío Pachas Soto
Teobaldo Leal Cavalcante
Luis Salem Hone
Pamela Gutiérrez Damiani
Alfonso Valle Cisneros

Shareholding of Enersis
(direct & indirect)
33.54% - Unchanged

EDESUR

Name
Empresa Distribuidora Sur S.A.

Type of company
Foreign corporation

Address
San José 140 (1076),
Capital Federal, Argentina

Address
Jr. Teniente Cesar López Rojas 201 Urb.
Maranga, San Miguel, Lima, Peru

Telephone
(54 11) 4370 3700

Telephone
(51 1) 561 2001

Subscribed & paid capital (ThCh$)
60,324,359

Subscribed & paid capital (ThCh$)
588,278,979

Objects
Distribution and commercialization of
electricity and related operations.

Objects
The provision of electricity distribution,
transmission and generation services.

Business
Energy distribution.

Business
Energy distribution

Board of directors
Reynaldo Llosa Baber
Ignacio Blanco Fernández
Ramiro Alfonsín Balza
(Chief Regional Planning & Control Officer, Enersis)
Ricardo Vega Llona
Rafael López Rueda
Alfredo Ferrero Diez Canseco
Róger Espinosa Reyes

Board of directors
Rafael López Rueda
Claudio Fontes Nunes
Ramiro Alfonsín Balza
(Chief Regional Planning & Control Officer, Enersis)
Rafael Arias Salgado
Miguel Beruto
Juan Pablo Larraín Medina
Rigoberto Mejía Aravena
Marcelo Silva Iribarne
Gonzalo Vial Vial
Directores suplentes
Santiago Daireaux

Manuel Benites
Roberto Fagan
Daniel Casal
Pablo Martín Lepiane
Alan Arntsen
Pedro Eugenio Aramburu
María Inés Justo

Principal executives
José María Hidalgo Martín-Mateos
Álvaro Estivariz
Héctor Ruiz Moreno
Sandro Rollan
Daniel Colombo
Daniel Alasia
Juan Garade
Juan Verbitsky
José María Gottig
Daniel Martini
Jorge Lukaszczuk

Shareholding of Enersis
(direct & indirect)
65.39% - Unchanged

Proportion of Enersis’s assets
2.13%

ELECTROGAS

Name
Electrogas S.A.

Type of company
Closely-held corporation

Tax No.
96,806,130-5

Address
Evar is to L illo 78 , pis o 4, O f. 41,
Santiago, Chile

Telephone
(562) 321 7737

Business
Transport of gas.

Subscribed & paid capital (ThCh$)
13,534,844

Board of directors
Felipe Aldunate Hederra
Claudio Iglesis Guillard
Pedro Gatica Kerr
Enrique Donoso Moscoso
Rosa Herrera Martínez

Alternate directors
Sergio Arévalo Espinoza
Jorge Bernardo Larraín Matte
Ricardo Santibáñez Zamora
Gastón Cáceres Videla

Principal executive
Carlos Andreani Luco

Shareholding of Enersis
(direct & indirect)
25.49% - Unchanged.

EMGESA

Name
Emgesa S.A. E.S.P.

Type of company
Public utility corporation

Address
Carrera 11 82-76, piso 4, Santa
Fe de Bogotá, D.C. Colombia

Paid capital (ThCh$)
926,926,416

Objects
The generation and sale of electricity
and the per forming of all similar,
connected, complementary and related
activities.

Objects
The provision of transport services for
natural gas and other fuels, for its own
or third party’s account, for which it
may construct, operate and maintain
gas, oil and multi-use pipelines and
complementary installations.

Business
Energy generation.

Board of directors
José A. Vargas LLeras
Astrid Martínez Ortiz

Lucio Rubio Díaz
Luisa Fernanda Lafourie
Sebastián Fernández Cox
Juan Ricardo Ortega
José Iván Velásquez

Alternate directors
Fernando Gutiérrez Medina
Gustavo Gómez Cerón
Henry Navarro Sánchez
Manuel Jiménez Castillo
José Venegas Maluenda
Oscar Alberto Molina García

Principal executives
Lucio Rubio Díaz
Andrés Caldas Rico
Juan Manuel Pardo
Javier Blanco Fernández
Gustavo Gómez Cerón
Fernando Gutiérrez Medina
María Celina Restrepo

Shareholding of Enersis
(direct & indirect)
16.12%- Unchanged

EMPRESA ELÉCTRICA
DE COLINA

Name
Empresa Eléctrica de Colina Ltda.

Type of company
Limited partnership

Tax No.
96,783,910-8

Address
Chacabuco 31, Colina,
Santiago, Chile

Telephone
(56 2) 844 4280

Subscribed & paid capital (ThCh$)
82,222

Objects
Distribution and sale of electricity and
home, sports, relaxation and computer
electrical appliances.

102

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ANNUAL REPORT

Business
Energy distribution.

Principal executive
Leonel Martínez Garrido

Holding of Enersis
(direct & indirect)
99.09% - Unchanged

ENDESA ARGENTINA

Name
Endesa Argentina S.A.

Type of company
Corporation

Address
Suipacha 268, piso 12,
Buenos Aires, Argentina

Telephone
(5411) 4307 3040

Objects
Investmentrs in companies for the
production, transport and distribution
of electricity and its sale, and financial
activities except for those reserved by
law for banks.

Business
Investments.

Subscribed & paid capital (ThCh$)
113,993,484

Board of directors
José Miguel Granged Bruñen
Néstor José Belgrano
Francisco Martín Gutiérrez

Alternate directors
María Inés Corrá
Marcelo A. Den Toom
Hugo Pedro Lafalce

Shareholding of Enersis
(direct & indirect)
59.98% - Unchanged.

ENDESA BRASIL

Name
Endesa Brasil S.A.

Type of company
Corporation

Adddress
Praça Leoni Ramos, 1 – 7
andar – bl. 02 - Parte, Niterói,
Río de Janeiro, Brazil

Telephone
(5521) 3607 9500

Subscribed & paid capital (ThCh$)
225,542,537

Objects
a ) Par ticipation in the c apit al of
other companies that act or become
constituted to act directly or indirectly
in any segment of the elec tricit y
sec tor, including companies that
provide ser vices to companies in
that sector, in Brazil or elsewhere,
as partner or shareholder, within the
legally permitted limits and, where
necessary, subject to obtaining the
necessary government approvals; b) the
provision of transmission, distribution,
generation or selling of electricity and
related activities; and c) participation,
individually or through joint ventures,
consortia or other similar forms of
association, in tenders, projects and
enterprises for the provision of the
ser vices and ac tivities mentioned
above.

Business
Investments.

Board of directors
Mario Fernando de Melo Santos
José María Calvo-Sotelo Martín
Ignacio Antoñanzas Alvear
(Chief Executive Officer of Enersis)
Antonio B. Carvalho e Albuquerque
Rafael Mateo Alcalá
Rafael López Rueda

Principal executives
Marcelo Llévenes Rebolledo
Luiz Carlos Bettencourt
Aurelio De Oliveira
Eugenio Cabanes
Antonio Pires e Albuquerque
Carlos Ewandro Naegele Moreira
José Alves de Mello Franco
Enrique de las Morenas

Shareholding of Enersis
(direct & indirect)
53.57% - Unchanged.

Proportion of Enersis’s assets
7.03%

ENDESA CHILE

Name
Empresa Nacional de
Electricidad S.A.

Type of company
Open corporation

Tax No.
91,081,000-6

Address
Santa Rosa 76, Santiago, Chile

Telephone
(56 2) 630 9000

Subscribed & paid capital (ThCh$)
1,331,714,085

Objects
Generation and supply of electricity,
sale of consultancy and engineering
services in Chile and elsewhere and
the construction and exploitation of
infrastructure works.

Business
Energy generation

Board of directors
Mario Valcarce Durán
Juan Gallardo Cruces
Francesco Buresti
Pío Cabanillas Alonso
Fernando D’Ornellas Silva

Borja Prado Eulate
Jaime Estévez Valencia
Leonidas Vial Echeverría
Raimundo Valenzuela Lang

Principal executives
Rafael Mateo Alcalá
Renato Fernández Baeza
Carlos Martín Vergara
Manuel Irarrázaval Aldunate
Juan Carlos Mundaca Álvarez
Julio Valbuena Sánchez
José Venegas Maluenda
Sebastián Fernández Cox
Juan Benabarre Benaiges
Claudio Iglesis Guillard

Commercial relations
Trading current accounts, provision of
accounting, money desk and treasury
services.

Shareholding of Enersis
(direct & indirect)
59.98% - Unchanged.

Proportion of Enersis’s assets
44.05%

ENDESA ECO

Name
Endesa Eco S.A.

Type of company
Closely-held corporation

Tax No.
76,313,310-9

Address
Santa Rosa 76, piso 12,
Santiago, Chile

Telephone
(56 2) 630 9000

Subscribed & paid capital (ThCh$)
681,845

Objects
Promote and develop renewable energy
projects like mini hydroelectric, wind,
geothermal, solar, biomass and others;

identify and develop clean development
mechanism (CDM) projects and act
as depositary and trader of emission
reduction certificates generated by
these projects.

Business
Energy generation.

Board of directors
Juan Benabarre Benaiges
Manuel Irarrázaval Aldunate
Renato Fernández Baeza

Principal executive
Wilfredo Jara Tirapegui

Shareholding of Enersis
(direct & indirect)
59.98% - Unchanged.

ENDESA FORTALEzA

Name
CGTF - Central Geradora
Termeléctrica Fortaleza S.A.

Type of company
Closely-held corporation

Address
Rodovia 422, Km 1 s /n, Complexo
Industrial e Portuário de Pecém Caucaia
– Ceará, Brazil

Telephone
(55 85) 3464-4100

Subscribed & paid capital (ThCh$)
41,132,630

Objects
a) Study, project, construct and explore
systems of production, transmission,
distribution and commercialization of
electricity under concessions, permits
or authorizations under any title, and
other activities related to the provision
of services of any kind related to the
above activities; b) the acquisition,
obtaining and exploration of any
right, concession or privilege related
to the above activities and the carrying
out of all the other acts and business

ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARY AND ASSOCIATE COMPANIES

103

necessary for achieving its objects; and
c) participation in the capital of other
companies as shareholder or partner,
whatever their objects.

ENERGEX

Name
Energex Co.

Business
Energy generation.

Type of company
Exempt company

Address
Marcelo Andrés Llévenes Rebolledo
Guilherme Gomes Lencastre

Principal executives
Manuel Herrera Vargas
Raimundo Câmara Filho
Luiz Carlos Bettencourt
José Ignácio Pires Medeiros
Aurélio Bustilho de Oliveira
José Alves de Mello Franco
Eugenio Cabanes
Ana Claudia Gonçalves Rebello

Shareholding of Enersis
(direct & indirect)
53.57% - Unchanged.

Address
Caledonian House P.O. Box 265 G,
George Town, Grand Cayman, Cayman
Islands

Subscribed & paid capital (ThCh$)
6,365

Objects
Any business or activity according to
the laws of the Cayman Islands. In
the case of businesses or activities in
the financial area, excepted are those
reserved for banks. It is also forbidden
to do business with firms or persons
domiciled in the Cayman Islands.

ENDESA MARKET PLACE

Business
Investments.

Name
Endesa Market Place
(in liquidation)

Type of company
Foreign corporation

Address
Ribera de Loira, 60 CP 28042, Madrid,
Spain

Telephone
(3491) 213 1000

Subscribed & paid capital (euros)
6,743,800

Objects
B2B and new technologies.

Liquidator
Ramón Cabezas Navas

Shareholding of Enersis
(direct & indirect)
15% - Unchanged.

Board of directors
Manuel Irarrázaval Aldunate
Daniel Bortnik Ventura
Ricardo Rodríguez
Horacio Reyser

Shareholding of Enersis
(direct & indirect)
29.99% - Unchanged.

ENIGESA

Name
Endesa Inversiones Generales S.A.

Type of company
Closely-held corporation

Tax No.
96,526,450-7

Address
Santa Rosa 76, Santiago, Chile

Telephone
(56 2) 630 9000

Paid capital (ThCh$)
3,055,838

Paid capital (ThCh$)
185,515,048

Objects
The acquisition, sale, administration
and exploitation, for its own or third
party’s account, of all kinds of real
estate, movable assets, securities and
other commercial paper; carr y out
studies and consultancies; provide all
kinds of services; participate on all
kinas of investments and especially
those related to the electricity business;
participate in all kinds of company
and carr y out all operations, ac ts
and contracts related to the above
objects.

Business
Real estate.

Board of directors
Manuel Irarrázaval Aldunate
Juan Carlos Mundaca Álvarez
Jaime Montero Valenzuela

Principal executive
Juan Carlos Mundaca Álvarez

Commercial relations
Rental of properties.

Shareholding of Enersis
(direct & indirect)
59.96% - Unchanged.

GASATACAMA

Name
GasAtacama S.A.

Type of company
Closely-held corporation

Tax No.
96,830,980-3

Objects
a) The administration and management
o f t h e c o m p a n i e s G a s o d u c t o
Atacama Chile Limitada, Gasoducto
A t a c a m a A r g e n t i n a L i m i t a d a ,
GasAtacama Generación Limitada
and other companies agreed to by
t h e sha re h o l d e r s ; b ) inv e s t m e n t
of resources, own or third party’s,
in all kinds of assets, corporeal or
incorporeal, securities, shares and
commercial paper.

Business
Investments.

Board of directors
Rafael Mateo Alcalá
Manuel Irarrázaval Aldunate
Raúl Sotomayor Valenzuela
Gonzalo Dulanto Letelier

Alternate directors
Juan Benabarre Benaiges
Claudio Iglesis Guillard
Pedro Pablo Errázuriz
Domínguez
Eduardo Ojea Quintana

Principal executive
Rudolf Araneda Kauert

Shareholding of Enersis
(direct & indirect)
29.99% - Unchange.

GASATACAMA CHILE

Name
GasAtacama Chile S.A.

Type of company
Closely-held corporation

Address
Isidora Goyenechea 3365, piso 8,
Santiago, Chile

Tax No.
78,932,860-9

Telephone
(562) 366 3800

Address
Isidora Goyenechea 3365, piso 8, Las
Condes, Santiago, Chile

Telephone
(562) 366 3800

Paid capital (ThCh$)
117,759,280

Objects
a ) E x p l o i t t h e g e n e r a t i o n ,
transmission, purchase, distribution
and sale or electricity or any other
nature; b) the purchase, extraction,
exploitation, processing, distribution,
c o m m e r c i a l i z a t i o n a n d s a l e o f
c o m b u s t i b l e s o l i d s , l i q u i d s a n d
gases; c) the sale and provision of
engineering services; d) the obtaining,
purchase, transfer, rental, charging
and exploitation in any way of the
concessions referred to in the General
Elec trical Ser vices L aw, maritime
concessions and water-usage rights of
any kind; e) the transport of natural
gas, through its own means or together
with other parties within Chile or other
countries, including the construction,
lo c atio n an d e x ploi t atio n of gas
pipelines and other activities related
directly or indirectly to it; f ) invest
in all kinds of assets, corporeal or
incorporeal, movable or immovable;
g) the organization and constitution
of all kinds of company whose objects
are related or linked to energy in any of
its forms or that have electricity as their
principal input, or correspond to any of
the activities mentioned above.

Business
Electricity generation & transportation
of gas.

Board of directors
Rafael Mateo Alcalá
Manuel Irarrázaval Aldunate
Raúl Sotomayor Valenzuela
Gonzalo Dulanto Letelier
Alternate directors
Juan Benabarre Benaiges
Claudio Iglesis Guillard
Pedro Pablo Errázuriz Domínguez
Eduardo Ojea Quintana

Principal executive
Rudolf Araneda Kauert

104

enersis08
ANNUAL REPORT

Shareholding of Enersis
(direct & indirect)
29.99% - Unchanged.

GASODUCTO ATACAMA
ARGENTINA

Name
Gasoducto Atacama Argentina S.A.

Type of company
Closely-held corporation

Tax No.
78,952,429-3

Address
Isidora Goyenechea 3365, piso 8, Las
Condes, Santiago, Chile

Telephone
(562) 366 3800

Paid capital (ThCh$)
132,491,785

Objects
The transport of natural gas, through
its own means or together with other
parties within Chile or other countries,
including the construction, location and
exploitation of gas pipelines and other
activities related directly or indirectly
to it

Business
Gas transportation.

Board of directors
Pedro De la Sotta Sánchez
Luis Vergara Aguilar
Rafael Zamorano Chaparro

Principal executives
Rudolf Araneda Kauert

Shareholding of Enersis
(direct & indirect)
29.99% - Unchanged.

GASODUCTO TALTAL

GENERANDES PERÚ

GNL CHILE

Name
Gasoducto Taltal S.A.

Type of company
Closely-held corporation

Tax No.
77,032,280-4

Address
Santa Rosa 76, Santiago, Chile

Telephone
(562) 630 9000

Objects
The transport, commercialization and
distribution of natural gas, through
its own means or together with other
parties within Chile, especially in the
towns of Mejillones and Paposo in the
2nd Region, including the construction,
lo c atio n an d e x ploi t atio n of gas
pipelines and other activities related
directly or indirectly to it

Business
Gas transportation.

Paid capital (ThCh$)
14,953,214

Board of directors
Rudolf Araneda Kauert
Pedro De la Sotta Sánchez
Rafael Zamorano Chaparro
Luis Vergara Aguilar

Alternate directors
Luis Cerda Ahumada
Alejandro Sáez Carreño
Gustavo Venegas Castro
Verónica Cortez Silva

Principal executive
Rudolf Araneda

Shareholding of Enersis
(direct & indirect)
29.99% - Unchanged.

Name
Generandes Perú S.A.

Type of company
Corporation

Address
Avda. Víctor Andrés Belaúnde 147,
Torre Real, piso 7, San Isidro, Lima,
Peru

Telephone
(511) 215 6300

Paid capital (ThCh$)
226,548,198

Objects
A c t i v i t i e s r e l a t e d t o e l e c t r i c i t y
generation, directly and /or through
c o m p a n i e s c o n s t i t u t e d f o r t h i s
purpose.

Business
Investments.

Board of directors
Rafael Mateo Alcalá
Javier García Burgos Benfield
Mario Valcarce Durán
Juan Benabarre Benaiges
José Chueca Romero
Ignacio Blanco Fernández
Giora Almogy
Alberto Triulzi Mora
Directores suplentes
Julián Cabello Yong
José María Hidalgo Martín-Mateos
Milagros Noriega Cerna
Roberto Cornejo Spickernagel
Guillermo Lozada Pozo
Rosa María Flores-Aráoz Cedrón
Carlos Rosas Cedillo
Juan Carlos Camogliano Pazos

Principal executives
Carlos Luna Cabrera
Milagros Noriega Cerna

Shareholding of Enersis
(direct & indirect)
36.59% (+ 0.82% change).

Name
GNL Chile S.A.

Type of company
Closely-held corporation

Tax No.
76,418,940-K

Address
Avda. Apoquindo 3.500, piso 6, Las
Condes, Santiago, Chile

Telephone
(562) 499 0920

Paid capital (ThCh$)
1,926,000

Objects
a) Contract the services of the liquefied
natural gas ( LNG ) re- gasification
company GNL Quintero S.A. and use
all the LNG storage, processing and
re- gasification capacit y of it s re-
gasification terminal, including its
expansions if any and any other matter
stated in the contract that the Company
signs for the use of the re-gasification
terminal; b) import LNG under the
d e l i v e r e d o n s h i p ( D E S ) m e t h o d
from LNG suppliers under purchase
agreements; c) the sale and delivery
of natural gas under contracts signed
by the company with its customers;
d ) administer and coordinate the
programming and nominations of LNG
cargoes, and the delivery of natural
gas among the different customers;
e) comply with all its obligations and
demand compliance with all its rights
under the contracts mentioned and
coordinate all the activities covered
by them, and in general carry out any
type of act or contract that may be
necessary, useful or convenient for
meeting its objects.

Business
Sale of LNG.

Board of drectors
Rafael Mateo Alcalá
Eduardo Morandé Montt

Alternate directors
Gonzalo Palacios Vásquez
Rosa Herrera Martinez
José Venegas Maluenda

Principal executive
Antonio Bacigalupo Gittins

Shareholding of Enersis
(direct & indirect)
19.99% - Unchanged.

GNL QUINTERO

Name
GNL Quintero S.A.

Type of company
Closely-held corporation

Tax No.
76,788,080-4

Address
Avda. Apoquindo 3.500, piso 6, Las
Condes, Santiago, Chile

Telephone
(562) 499 0900

Paid capital (ThChM$)
124,669,324

Objects
D e v e l o p , f i n a n c e , d e s i g n a n d
engineering, supply, construct, start-
up, test, conclude, acquire, operate
and maintain the liquefied natural gas
(LNG) re-gasification terminal and any
other activity leading or related to this
object, including but not limited to the
direction and management of all the
commercial agreements necessar y
for the reception of LNG (or deliver
to customers), LNG re-gasification,
distribution of LNG re-gasified to the
respective distribution point and the
sale of storage services and capacity,
processing and re - gasif ication of
the re-gasification terminal and its

ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARY AND ASSOCIATE COMPANIES

105

hydroelectric generation project that
Hidroaysén is planning to build in the
11th Region of Aysén, Chile.

Business
Investments.

expansions, if any. Perform any type of
act or contract that may be necessary,
useful or convenient for meeting the
object.

Business
LNG re-gasification.

Board of directors
Rafael Mateo Alcalá
Eduardo Morandé Montt
William Jude Way
Elizabeth Grace Spomer
Alternate directors
Graham Cockroft
Sergio Arévalo Espinoza
Claudio Iglesis Guillard
Francisco Gazmuri Schleyer
Diego Hollweck

Principal executive
Antonio Bacigalupo Gittins

Shareholding of Enersis
(direct & indirect)
12% - Unchanged.

HIDROAYSÉN
TRANSMISIÓN

Name
HidroAysén Transmisión S.A.

Type of company
Closely-held corporation

Tax No.
76,041,891-9

Address
Miraflores 383, Of. 1302,
Santiago, Chile

Telephone
(562) 713 5000

Paid capital (ThCh$)
31,823

Business
Electricity transmission
(project).

Board of directors
Antonio Albarrán Ruiz-Clavijo
Rafael Mateo Alcalá
Juan Benabarre Benaiges
Bernardo Larraín Matte
Luis Felipe Gazitúa Achondo
Rodrigo Alcaíno Mardones

Alternate directors
Carlos Martín Vergara
Sebastián Fernández Cox
Claudio Iglesis Guillard
Eduardo Morel Montes
Carlos Urenda Aldunate
Cristián Morales Jaureguiberry

Principal executives
Hernán Salazar Zencovich

Shareholding of Enersis
(direct & indirect)
30.59% (new company).

HIDROINVEST

Name
Hidroinvest S.A.

Type of company
Corporation

Address
Avda. España 3301,
Buenos Aires, Argentina

Telephone
(5411) 4307 3040

Paid capital (ThCh$)
28,655,139

Board of directors
Rafael Mateo Alcalá
José Miguel Granged Bruñen
Miguel Ortiz Fuentes
Fernando Claudio Antognazza
Julio Valbuena Sánchez
Carlos Martín Vergara
Francisco Domingo Monteleone
Roberto José Fagan

Alternate directors
Daniel Garrido
José María Hidalgo Martín-Mateos
Juan Carlos Blanco
Manuel Irarrázaval Aldunate
Jorge Burlando Bonino
Rodrigo Quesada
Rodolfo Bettinsoli
Fernando Boggini

Shareholding of Enersis
(direct & indirect)
57.64% - Unchanged.

INGENDESA

Name
Empresa de Ingeniería Ingendesa S.A.

Type of company
Closely-held corporation

Tax No.
96,588,800-4

Address
Santa Rosa 76, Santiago, Chile

Telephone
(562) 630 9000

Paid capital (ThCh$)
2,383,485

dif ferent fields, of environmental
a d v i c e, i n c l u d i n g t h e m a k i n g o f
environmental impac t studies and
in general consultanc y ser vices in
every specialty, in Chile and abroad,
whether directly, associated with or
through third parties, for which it may
form or join companies, corporations,
foundations or consortia of any kind.

Business
Engineering services.

Board of directors
Juan Benabarre Benaiges
Rafael de Cea Chicano
Aníbal Bascuñán Bascuñán

Principal executive
Rodrigo Alcaíno Mardones

Shareholding of Enersis
(direct & indirect)
59.98% - Unchanged.

INGENDESA - ARA

Name
Sociedad Consorcio
Ingendesa - Ara Ltda.

Type of company
Limited partnership

Tax No.
76,197,570-6

Address
Santa Rosa 76, piso 10,
Santiago, Chile

Telephone
(562) 630 9000

Paid capital (ThCh$)
1,000

Objects
D e v e l o p , a n d a l t e r n a t i v e l y o r
additionally manage, the electricity
transmission systems required by the

Objects
Acquire and maint ain a majorit y
shareholding in Hidroeléc tric a El
Chocón S.A.

Objects
The provision of engineering services,
inspection of works, inspection and
reception of materials and equipment,
o f l a b o r a t o r y, o f a p p r a i s a l s , o f
m a n a g e m e n t o f c o m p a n i e s i n

Objects
Provision of engineering ser vices,
including the projection, planning and
carrying out of engineering studies
and projects, providing advice and
consultancies, granting of assistance

and technical information and the
a d m i n i s t r a t i o n , i n s p e c t i o n a n d
development of projects and works.

Business
Engineering services.

Representatives
Rodrigo Alcaíno Mardones
Alejandro Santolaya de Pablo
Alternative representatives
Cristian Araneda Valdivieso
Elías Arce Cyr
Julio Montero Montegú
Fernando Orellana Welch

Shareholding of Enersis
(direct & indirect)
29.99% - Unchanged.

INGENDESA BRASIL

Name
Ingendesa do Brasil Ltda.

Type of company
Limited partnership

Address
Avda. Rio Branco 115, pavimento 10,
sala 1005, Centro, Río de Janeiro,
Brazil

Telephone
(5521) 2232 9039

Paid capital (ThCh$)
126,015

Objects
The provision of services of engineering,
studies, projects, technical consultancy,
a d m i n i s t r a t i o n , i n s p e c t i o n a n d
supervision of works, inspection and
reception of materials and equipment,
laboratory, appraisals, commercial
representation of Chilean and foreign
engineering companies, and other
services that the legal powers permit
in the practice of the professions or
engineering, architecture, agronomy,
geology and meteorology in all their
specialties in Chile and abroad, whether

106

enersis08
ANNUAL REPORT

directly or indirectly, for which it may
participate in companies or consortia
of any kind.

Holding of Enersis
(direct & indirect)
29.99% - Unchanged.

Proportion of Enersis’s assets
0.78%

Type of company
Foreign corporation

Type of company
Closely-held corporation

Business
Engineering services.

Representative
Sergio Campos Ribeiro

Holding of Enersis
(direct & indirect)
59.98% - Unchanged.

INGENDESA MINMETAL

Name
Consorcio Ingendesa–Minmetal Ltda.

Type of company
Limited partnership

Tax No.
77,573,910-k

Address
Santa Rosa 76, Santiago, Chile

Telephone
(562) 630 9000

Objects
The provision of engineering services,
including the projection, planning and
making of engineering studies and
projects, advice and consultancy, the
granting of technical assistance and
information and the administration,
inspection and development of projects
and works.

Business
Engineering services.

Paid capital (ThCh$)
2,000

Representatives
Rodrigo Muñoz Pereira
Rodrigo Alcaíno Mardones
Alternate representatives
Fernando Orellana Welch
Osvaldo Dinner Reich
Carlos Freire Canto

INMOBILIARIA
MANSO DE VELASCO

Name
Inmobiliaria Manso de
Velasco Ltda.

Type of company
Limited partnership

Tax No.
79,913,810-7

Address
Miraflores 383, piso 29,
Santiago, Chile

Telephone
(562) 378 4700

Objects
Acquisition, disposal, commercialization
and exploitation of real estate and
investment companies.

Business
Real estate.

Subscribed & paid capital (ThCh$)
25,916,800

Representatives
Cristóbal Sanchez Romero
Andrés Salas Estrades

Principal executives
Andrés Salas Estrades
Alfonso Salgado Menchaca
Bernardo Küpfer Matte
Hugo Ayala Espinoza

Commercial relations
Rental of proper ties, provision of
money desk, accounting, tax and other
services. Trading current account.

Holding of Enersis
100% - Unchanged.

INVERSIONES
CODENSA S.A.

Name
Inversiones Codensa S.A.

Type of company
Coporation

Address
C a r r e r a 13 A N 93 - 6 6 , B o g o t á ,
Colombia

Telephone
(571) 601 6060

Address
Jr. Teniente César López Rojas 201,
Maranga, San Miguel, Lima, Peru.

Tax No.
96,889,570-2

Telephone
(511) 561 1604

Address
Evaristo Lillo 78, piso 4, Of. 41,
Santiago, Chile

Subscribed & paid capital (ThCh$)
60,324,359

Telephone
(562) 321 7737

Objects
Make investments in general, especially
those related to the distribution and
generation and other operations of
electricity.

Objects
To buy, sell, invest and hold shares in
the closely-held company Electrogas
S.A.

Subscribed &paid capital (ThCh$)
3,141

Business
Investments.

Objects
Investment in residential energy public-
utility service activities, especially the
acquisition of shares in any company
dedicated to that business.

Business
Investments.

Board of directors
Lucio Rubio Díaz
Andrés Caldas Rico
Mario Trujillo Hernández
Directores suplentes
Margarita Olano Olano
Álvaro Francisco Camacho Borrero
Fabiola Leal Castro

Legal representative
Cristián Herrera Fernández

Shareholding of Enersis
(direct & indirect)
21.67% - Unchanged.

INVERSIONES
DISTRILIMA

Name
Inversiones Distrilima S.A.

Board of directors
Ignacio Blanco Fernández
Reynaldo Llosa Barber
Rafael López Rueda
Ramiro Alfonsín Balza
(Chief Regional Planning & Control
Officer of Enersis)

Alternate directors
Manuel Muñoz Laguna
Ricardo Camezzana Leo
Fernando Fort Marie
Walter Néstor Sciutto Brattoli
Zoila Patricia Mascaró Díaz

Principal executive
Ignacio Blanco Fernández

Shareholding of Enersis
(direct & indirect)
55.90% - Unchanged.

Proportion of Enersis’s assets
0.65%

INVERSIONES
ELECTROGAS

Business
Investments.

Paid capital (ThCh$)
12,117,936

Board of directors
Felipe Aldunate Hederra
Claudio Iglesis Guillard
Pedro Gatica Kerr
Enrique Donoso Moscoso
Rosa Herrera Martínez

Alternate directors
Sergio Arévalo Espinoza
Jorge B. Larraín Matte
Ricardo Santibáñez Zamora
Gastón Cáceres Videla

Principal executives
Carlos Andreani Luco

Shareholding of Enersis
(direct & indirect)
25.49% - Unchanged.

INVERSIONES
ENDESA NORTE

Name
Inversiones Endesa Norte S.A.

Name
Inversiones Electrogas S.A.

Type of company
Closely-held corporation

ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARY AND ASSOCIATE COMPANIES

107

Tax No.
96,887,060-2

Telephone
(562) 366 3800

Address
Carrera 13 A 93-66, Bogotá,
Colombia

Board of directors
None

Address
Santa Rosa 76, Santiago, Chile

Telephone
(562) 630 9000

Objects
Make investments in energy projects
i n t h e n o r t h o f C h i l e r e l a t e d t o
the companies of the GasAtacama
project.

Business
Investments.

Paid capital (ThCh$)
92,571,642

Board of directors
Rafael Mateo Alcalá
Manuel Irarrázaval Aldunate
Daniel Bortnik Ventura

Alternate directors
Claudio Iglesis Guillard
Juan Benabarre Benaiges
Raúl Arteaga Errázuriz

Principal executives
Juan Benabarre Benaiges

Shareholding of Enersis
(direct & indirect)
59.98% - Unchanged

INVERSIONES
GASATACAMA HOLDING

Name
Inversiones Gasatacama
Holding Limitada

Type of company
Limited partnership

Tax No.
76,014,570-K

Address
Isidora Goyenechea 3365, piso 8,
Santiago, Chile

Objects
a) The direct or indirect participation
through any kind of association in
companies whose objects are one or
more of the following: i) the transport
of natural gas in any of its forms; ii)
the generation, transmission, purchase,
distribution and sale of energy, and iii)
financing of the activities stated in i)
and ii) above managed by third parties.
b) the perception and investment of the
assets invested in. The objects include
all lucrative activities related to the
above and other businesses that the
partners agree.

Business
Investments.

Paid capital (ThCh$)
212,268,290

Board of directors
Rafael Mateo Alcalá
Manuel Irarrázaval Aldunate
Raúl Sotomayor Valenzuela
Gonzalo Dulanto Letelier

Alternate directors
Juan Benabarre Benaiges
Claudio Iglesis Guillard
Pedro Pablo Errázuriz Domínguez
Eduardo Ojea Quintana

Principal executive
Rudolf Araneda Kauert

Holding of Enersis
(direct & indirect)
29.99% - Unchanged.

INVERSORA
CODENSA LTDA. U

Name
Inversora Codensa Ltda. U

Type of company
Limited unipersonal entity

Telephone
(571) 601 6060

Capital (Colombian $)
5,000,000

Objects
Inve s t ment in re sid ential energ y
public utility services, especially the
acquisition of shares in any company
in that business or that in turn invests
in that business.

Business
Investments.

Legal representative
Cristian Herrera Fernández

Holding of Enersis
(direct & indirect)
21.73% - Unchanged

INVESTLUz

Name
Investluz S.A.

Type of company
Foreign corporation

Management committee
Abel Alves Rochinha
Luiz Carlos Bettencourt
Silvia Cunha Saraiva Pereira
José Renato Ferreira Barreto
Olga Jovanna Carranza Salazar

Shareholding of Enersis
(direct & indirect)
59.51% - Unchanged.

KONECTA CHILE

Name
Konecta Chile S.A.

Type of company
Closely-held corporation

Tax No.
76,583,350-7

Address
Miraflores 383, piso 26,
Santiago, Chile

Telephone
(56 2) 447 8687

Paid capital (ThCh$)
300

Address
Avda. Barão de Studart 2917, Bairro
Dionísio Torres For taleza, Ceará,
Brazil

Objects
C o n t a c t c e n t e r , o u t s o u r c i n g ,
organization of events, IT services,
collections, commercialization movable
assets, investments.

Telephone
(5585) 3216 1350

Subscribed & paid capital (ThCh$)
543,062,718

Objects
Par ticipate in the share capital of
Co m p a n hia En e r g e t ic a d o Ce a r á
and other companies in Brazil and
elsewhere, as partner or shareholder.

Business
Investments.

Business
Call center.

Board of directors
José Ignacio González Alemán
Miguel Fernández Robledo
Rafael Miguel Barroso Aceña
Leonardo Covalschi Buono
Juan Seco Sousa

Principal executive
Patricio Martínez Sola

Shareholding of Enersis
(direct & indirect)
26.20%

LUz ANDES

Name
Luz Andes Limitada

Type of company
Limited partnership

Tax No.
96,800,460-3

Address
Santa Rosa 76, piso 5,
Santiago, Chile

Telephone
(56 2) 634 6310

Paid capital (Ch$)
1,224,348

Objects
Distribution and sale of electricity
and sale of electrical appliances for
the home, spor t s, rela xation and
computers.

Business
Distribution of electricity.

Principal executive
Claudio Inzunza Díaz

Holding of Enersis
(direct & indirect)
99.09% - Unchanged.

PANGUE

Name
Empresa Eléctrica Pangue S.A.

Type of company
Closely-held corporation

Tax No.
96,589,170-6

Address
Santa Rosa 76, Santiago, Chile

108

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ANNUAL REPORT

Telephone
(562) 630 9000

Objects
The production, transport, distribution
and supply of elec tricit y from the
Pangue plant in the valley of the Biobío
river.

Business
Electricity generation.

Paid capital (ThCh$)
91,041,497

Board of directors
Claudio Iglesis Guillard
Alan Fischer Hill
Alejandro García Chacón

Principal executive
Lionel Roa Burgos

Shareholding of Enersis
(direct & indirect)
56.97% - Unchanged.

PEHUENCHE

Paid capital (ThCh$)
200,319,020

Board of directors
Claudio Iglesis Guillard
Alan Fischer Hill
Pedro Gatica Kerr
Enrique Lozán Jiménez
Osvaldo Muñoz Díaz
Alejandro García Chacón
Daniel Bortnik Ventura

Principal executive
Lucio Castro Márquez

Shareholding of Enersis
(direct & indirect)
55.57% - Unchanged.

PROGAS

Name
Progas S.A.

Type of company
Closely-held corporation

Tax No.
77,625,850-4

Paid capital (ThCh$)
1,211

Board of directors
Rudolf Araneda Kauert
Luis Cerda Ahumada
Pedro De La Sotta Sánchez

Principal executive
Alejandro Sáez Carreño

Shareholding of Enersis
(direct & indirect)
29.99% - Unchanged.

SACME

Name
Sacme S.A.

Type of company
Closely-held corporation

Address
Avda. España 3251, Ciudad Autónoma
de Buenos Aires, Argentina

Telephone
(5411) 4361 5107

Name
Empresa Eléctrica Pehuenche S.A.

Type of company
Closely-held corporation

Tax No.
96,504,980-0

Address
Santa Rosa 76, Santiago, Chile

Telephone
(562) 630 9000

Objects
The generation, transport, distribution
and supply of electricity for which it
may acquire and use the respective
concessions and grants.

Business
Electricity generation.

Address
Isidora Goyenechea 3356, 8 piso,
Santiago, Chile

Subscribed & paid capital
(Argentine $)
12,000

Objects
Develop the following businesses in the
1st, 2nd and 3rd Regions of Chile: a)
the acquisition, production, storage,
transport, distribution, transformation
and commercialization of natural gas;
b) the acquisition, production, storage,
transport, distribution, transformation
and commercialization of other oil
derivatives and fuels in general; c) the
provision of services, manufacture,
commercialization of equipment and
materials, and carr ying out works
related to the above objects or those
necessar y for their execution and
development; and d) any other activity
necessary or conducing to compliance
with the above objects.

Objects
Co n d u c t , s u p e r v i s e a n d c o n t r o l
t h e o p e r a t i o n o f t h e e l e c t r i c i t y
generation, transmission and sub-
transmission system of the Federal
Capital and Greater Buenos Aires,
and the interconnections with the
Argentine Interconnec tion System
( SADI ) . Represent the companies
Distribuidora Edenor S.A. and Edesur
S.A. in the operative management
before the Compañía Administradora
d el M erc ad o Mayoris t a Elé c t rico
(CAMMESA) (the wholesale market
administrator). In general, take all kinds
of action for satisfactorily carrying out
its management, as being constituted
for this purpose by the concession-
holding companies of the electricity

distribution and commercialization
services in the Federal Capital and
Greater Buenos Aires, all in accordance
with the international public tender for
the sale of Class A shares in Edenor
S.A. and Edesur S.A. and applicable
regulations.

Business
Conduction, supervision and control of
the operation of part of the Argentine
electricity system.

Board of directors
Ricardo Héctor Sericano
Daniel Héctor Colombo
Leandro Ostuni
Eduardo Maggi

Alternate directors
Abel Cresta
Leonardo Félix Druker
Pedro Rosenfeld
Rubén Besada

Representatives
Héctor Ruiz Moreno
Clemente Alonso Hidalgo
Jaime Javier Barba

Alternate representatives
Juan Antonio Garade
Darío Aníbal Ricciardi
Daniel Peraudo

Principal executive
Osvaldo Rolando

Shareholding of Enersis
(direct & indirect)
32.69% - Unchanged.

SAN ISIDRO

Name
Compañía Eléctrica San Isidro S.A.

Type of company
Closely-held corporation

Tax No.
96,783,220-0

Address
Santa Rosa 76, Santiago, Chile

Telephone
(56 2) 630 9000

Objects
The generation, transport, distribution
and supply of electricity.

Business
Electricity generation

Paid capital (ThCh$)
39,005,904

Board of directors
Alejandro García Chacón
Alan Fischer Hill
Claudio Iglesis Guillard
Pedro Gatica Kerr
Ricardo Santibáñez Zamorano

Alternate directors
Rodrigo Naranjo Martorell
Carlo Carvallo Artiga
Osvaldo Muñoz Díaz
Claudio Betti Pruzo
Enrique Lozán Jiménez

Principal executive
Claudio Iglesis Guillard

Shareholding of Enersis
(direct & indirect)
59.98% - Unchanged.

SISTEMAS SEC

Name
Sistema SEC S.A.

Type of company
Closely-held corporation

Tax No.
99,584,600-4

Address
Miraflores 383, piso 10, Of. 1004,
Santiago, Chile

ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARY AND ASSOCIATE COMPANIES

109

Objects
Develop the engineering, supply,
a s s e m b l y, t e s t i n g , s t a r t- u p a n d
m a i n t e n a n c e o f t h e s i g n a l i n g ,
electrification and communications
systems for the sec tors Alameda-
Chillán, Hualqui-Talc ahuano and
Concepción-Lomas Coloradas, which
implies the development of all the
ac tivities and provision of all the
ser vices subjec t to the signaling,
electrification and communications
contract in the public tender that was
adjudicated by Empresa de Ferrocarriles
del Estado, plus the activities and
services permitted by that contract.

Business
D evelo p and maint ain signaling,
electrification and communications
systems.

Paid capital (ThCh$)
2,266,603

Board of directors
Cristóbal Sanchez Romero
Ángel Aguilar Bueno
Klaus Winkler Speringer
Jaime Godoy Cifuentes
Francisco Fernández Ávila de Inza

Principal executives
Jaime Pino Cox
Sergio Zúñiga Rojo

Shareholding of Enersis
(direct & indirect)
49% - Unchanged.

SOUTHERM CONE
POWER ARGENTINA

Telephone
(54 11) 4307 3040

Subscribed & paid capital (ThCh$)
4,076,896

Objects
For its own or third party’s account,
habitually purchase and sell electricity
in the wholesale market produced by
other parties and to be consumed by
others. It may also hold participations
in companies dedicated to electricity
generation. For its objects, it is legally
fully able to acquire rights, contract
o bligatio ns and p er fo r m all ac t s
that are not prohibited by law of its
bylaws.

Board of directors
José Miguel Granged Bruñen
Roberto José Fagan
Fernando Claudio Antognazza

Alternate director
Juan Carlos Blanco

Shareholding of Enersis
(direct & indirect)
59.98%

SYNAPSIS

Name
Synapsis Soluciones y Ser vicios IT
Limitada

Type of company
Limited partnership

Tax No.
96,529,420-1

Name
Southern Cone Power Argentina S.A.

Address
Miraflores 383, piso 27, Santiago

Type of company
Corporation

Telephone
(562) 397 6600

Address
Avda. España 3301, Buenos Aires,
Argentina

Subscribed & paid capital (ThCh$)
3,943,580

Objects
Supply and sell services and equipment
related to computation and data
processing for public utility and other
Chilean and foreign companies. Sell and
supply in Chile and abroad services,
equipment and training related to
computation and data processing.
Invest in companies whose objects
are similar, related or linked to energy
or computers in all their forms or the
supply of public utilities or whose
principal input is electricity.

Business
IT services.

Representatives
Cristóbal Sánchez Romero
Leonardo Covalschi Buono

Alternate representatives
Eduardo López Miller
Raúl Mella Varas

Principal executives
Leonardo Covalschi Buono
Raúl Mella Varas
Jorge Orozco Ospina
Antonio Bravo Narváez
Fernando Mayorano
Leonardo Covalschi Buono
Aldo Monje Roma
Raúl Mella Varas
Rocio Niño Guerra
Aldo Cortes Díaz
Juan Miguel

Comercial relations
Trading current account, provision
of financial management ser vices,
data center and suppor t ser vices.
Maintenance of systems, micro IT and
electronic mail. Telecommunications
and tax consultanc y. Provision of
services.

Holding of Enersis
(direct & indirect)
100% - Unchanged

Proportion of Enersis’s assets
0.46%

SYNAPSIS ARGENTINA

Name
Synapsis Argentina S.R.L.

Type of company
Limited partnership

Address
Azopardo 1335, e / Juan de Garay y
Cochabamba, Cod. Postal 1064, Capital
Federal, Buenos Aires, Argentina

Telephone
(5411) 4021 8300

Subscribed & paid capital (ThCh$)
279,662

Objects
Principally the provision of services
related to computerization, dat a
processing and other IT services in
telecommunications and control, plus
training in the activities related to the
services provided.

Business
IT services.

Principal executives
Cristóbal Sanchez Romero
Leonardo Covalschi Buono
Fernando Mayorano
Mariano F. Grondona

Holding of Enersis
(direct & indirect)
100% - Unchanged

Proportion of Enersis’s assets
0.01%

SYNAPSIS BRASIL

Name
Synapsis Brasil Limitada

Type of company
Limited partnership

Address
Avda. das Américas 3434, Bloco 2, Sala
403, Barra da Tijuca, Río Janeiro, Brazil
- Cep: 22640-102

Telephone
(5521) 3431 3850

Subscribed & paid capital (ThCh$)
716

Objects
Provision of consultanc y ser vices
and technical assistance related to
the IT sector and data processing for
Brazilian and foreign companies; the
development of computer programs
and systems; the sale of computer
an d dat a p ro ce s sin g e quip m ent ;
the manufac ture, purchase, sale,
i m p o r t , e x p o r t , r e p r e s e n t a t i o n ,
consignment and distribution of all
types of assets, mobile and immobile,
connected to objects stated above
and participations in other civil or
commercial, national or foreign,
companies that operate in the sectors
of IT, electricity or the management
and/or operation of public utilities in
electricity, telecommunications, water
for domestic or industrial use and
sewage, as shareholder or partner;
and participations in joint ventures,
consortia and partnerships.

Business
IT services.

Board of directors
Chairman
Carlos Alberto Acero

Principal executives
Carlos Alberto Acero
Jacqueline Gómez Da Silva
Marcia Caporazzo Almeida
José Roberto Galdino
Alexandre Maiotto
Marcelo Picchi

Holding of Enersis
(direct & indirect)
100% - Unchanged

110

enersis08
ANNUAL REPORT

SYNAPSIS COLOMBIA

Name
Synapsis Colombia Limitada

Type of company
Limited partnership

Address
Carrera 14 85- 68, piso 5, Edificio
Torres Bogotá, D.C.

Telephone
(571) 607 6000

Subscribed & paid capital (ThCh$)
82,065

Objects
Supply and sell services and equipment
related to computerization and data
processing for public utility and other
national and foreign companies.

Business
IT services.

Representatives
Leonardo Covalschi Buono
Edgar Enrique Martínez Niño
Robin Barquin Pardo
Ana Patricia Delgado Meza

Principal executives
Robin Barquín Pardo
Edgar Martínez Niño
Sonia Rodríguez García
Eduardo Ruiz Alonso
Patricia Delgado Meza
Norberto Duarte

Holding of Enersis
(direct & indirect)
100% - Unchanged.

Proportion of Enersis’s assets
0.00%

SYNAPSIS PERÚ

Name
Synapsis del Perú S.R.L.

Type of company
Limited partnership

Subscribed & paid capital (ThCh$)
92,160

Address
Jr. Teniente César López Rojas 201, piso
10, Maranga, San Miguel, Lima, Peru

Telephone
(511) 561 0386

Subscribed & paid capital (ThCh$)
111,379

Objects
P r o v i d e s e r v i c e s r e l a t e d t o
computerization, data processing
and other IT services and control, and
training in the activities related to the
services provided.

Business
IT services.

Principal executives
Claudio Escudero Alzamora
Jessenia Quevedo Fudino
Eduardo Bedoya Arromatari
Mario Nieto Béjar
Pedro Luna Delgado
Carlos Castillo Prada
José Carlos Silva Torres

Holding of Enersis
(direct & indirect)
100% - Unchanged.

TERMOELÉCTRICA JOSÉ
DE SAN MARTÍN

Name
Termoeléctrica José de San
Martín S.A.

Type of company
Corporation

Address
Hipólito Bouchard 547, piso 27, Buenos
Aires, Argentina

Telephone
(511) 561 0386

Objects
T h e p r o d u c t i o n o f e l e c t r i c i t y
and it s blo ck commercialization,
particularly the management of the
equipment, construction, operation
and maintenance of a thermal plant
in accordance with the “Definitive
agreement for the management and
operation of the projects for the re-
adaptation of the MEM in the terms of
Resolution SE 1427/2004”, approved
by Resolution SE 1193/2005. For this,
it may carry out those complementary
and subsidiary activities linked to the
objects, having full legal powers to
acquired rights and contract obligations
and perform all acts not prohibited by
law or its bylaws.

Business
Electricity generation.

Board of directors
Bernardo Velar de Irigoyen
Adrián Salvatore
José Miguel Granged Bruñen
Fernando Claudio Antognazza
Milton Gustavo Tomás Pérez
Jorge Aníbal Rauber
Fermín Oscar Demonte
Horacio Jorge Turri
Guillermo Luis Fiad

Alternate directors
José María Vásquez
Roberto José Fagan
Omar Ramiro Algacibiur
Sergio Raúl Sánchez
Benjamín Roberto Guzmán
Juan Carlos Blanco
Carlos Principi
Patricio Testotelli
Brian Henderson

Principal executives
Jose María Vázquez
Alberto Garmendia Rodriguez
Armando Federico Duvo
Claudio Majul
Marcelo Walter Holmgren

Shareholding of Enersis
(direct & indirect)
8.32%- Unchanged.

TERMOELÉCTRICA
MANUEL BELGRANO

Name
Termoeléctrica Manuel
Belgrano S.A.

Type of company
Corporation

Address
Suipacha 268, piso 12, Buenos Aires,
Argentina

Telephone
(511) 561 0386

Subscribed & paid capital (ThCh$)
92,160

Business
Electricity generation.

Board of directors
José Miguel Granged Bruñen
Fernando Claudio Antognazza
Horacio Jorge Turri
Milton Gustavo Tomás Pérez
Jorge Aníbal Rauber

Guillermo Luis Fiad
Fermín Demonte
Bernardo Velar de Irigoyen
José María Vásquez

Alternate directors
Roberto José Fagan
Sergio Raúl Sánchez
Benjamín Roberto Guzmán
Juan Carlos Blanco
Carlos Principi
Patricio Testorelli
Omar Ramiro Algacibiur
Brian Henderson

Principal executives
Miguel Ortiz Fuentes
Gustavo Manifesto
Óscar Zapiola
Daniel Garrido

Shareholding of Enersis
(direct & indirect)
8.32% - Unchanged.

TESA

Name
Transportadora de Energía S.A.

Type of company
Corporation

Address
Bartolomé Mitre 797, piso 13, Of. 79,
Buenos Aires, Argentina

Telephone
(5411) 4394 1161

Paid capital (ThCh$)
7,589,289

Objects
The provision of electricity transport
services in high tension in relation
t o n a t i o n a l a n d i n t e r n a t i o n a l
ele c tricit y s y s tems, according to
current legislation, for which it may
take part in national or international
te n d e r s , b e c o m e a p u b lic- u t ili t y
concession-holder in high-tension
elec tricit y transmission nationally
o r i n t e r n a t i o n a l l y, a n d p e r f o r m

ANNUAL REPORT
IDENTIFICATION OF THE SUBSIDIARY AND ASSOCIATE COMPANIES

111

Notes:
1. There are no acts or contracts entered
into by Enersis S.A. with subsidiaries or
affiliates that significantly influence the
operations of Enersis S.A.

2. Enersis has no investment in the
subsidiaries and affiliates which do
not include the heading Proportion of
Enersis’s assets.

3. Enersis has no commercial relations
with the subsidiaries and affiliates
which do not include the heading
Commercial relations.

all ac tivities ne cess ar y for thes e
purposes.

Business
Energy transmission.

Board of directors
José María Hidalgo Martín-Mateos
Guilherme Lencastre
Arturo Miguel Pappalardo

Alternate directors
Juan Carlos Blanco
Roberto José Fagan
José Venegas Maluenda

Shareholding of Enersis
(direct & indirect)
53.57% - Unchanged.

TRANSQUILLOTA

Name
Transmisora Eléctrica de
Quillota Ltda.

Type of company
Limited partnership

Tax No.
77,017,930-0

Alternate representatives
Alfonso Bahamondes Morales
Enrique Sánchez Novoa
Ricardo Sáez Sánchez
Carlos Ferruz Bunster

Holding of Enersis
(direct & indirect)
29.99% - Unchanged.

TÚNEL EL MELÓN

Name
Sociedad Concesionaria
Túnel El Melón S.A.

Type of company
Closely-held corporation

Tax No.
96,671,360-7

Address
Santa Rosa 76, Santiago, Chile

Telephone
(562) 630 9000

Paid capital (ThCh$)
46,709,460

Address
Santa Rosa 76, Santiago, Chile

Telephone
(562) 630 9000

Paid capital (ThCh$)
4,404,446

Objects
E x e c u t i o n , c o n s t r u c t i o n a n d
exploitation of the public works called
El Melón tunnel and the provision of
the complementary services authorized
by the Ministry of Public Works.

Business
Infrastructure.

Objects
The transport, distribution and supply
of electricity for its own or third party’s
account.

Board of directors
Manuel Irarrázaval Aldunate
Jorge Alé Yarad
Renato Fernández Baeza

Business
Electricity transmission.

Representatives
Gabriel Carvajal Menególlez
Ricardo Santibáñez Zamorano
Juan Eduardo Vásquez Moya
Enrique Donoso Moscoso

Principal executive
Maximiliano Ruiz Ortiz

Shareholding of Enersis
(direct & indirect)
59.98% - Unchanged.

112

enersis08
ANNUAL REPORT

DECLARATION OF RESPONSIBILITY

ANNUAL REPORT
DECLARATION OF RESPONSIBILITY

113

The directors of Enersis and the chief Executive Officern signatories to this declaration swear to be responsible for the truth of all information

contained in this annual report, in compliance with general rule N°30 of the Superintendency of Securities and Insurances.

CHAIRMAN

VICE-CHAIRMAN

DIRECTOR

Pablo Yrarrázaval Valdés
Tax N°: 5.710.967-K

Rafael Miranda Robredo
Tax N°: 48.070.966-7

Pedro Larrea Paguaga
Tax N°: 48.077.257-K

Hernán Somerville Senn
Tax N°: 4.132.185-7

DIRECTOR

GERENTE GENERAL

Eugenio Tironi Barrios
Tax N°: 5.715.860-3

Patricio Claro Grez
Tax N°: 5.206.994-7

Juan Eduardo Errázuriz Ossa
Tax N°: 4.108.103-1

Ignacio Antoñanzas Alvear
Tax N°: 22.298.662-1