Enel Americas Annual Report 2013

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FY2013 Annual Report · Enel Americas

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Annual Report

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Enersis es una empresa del Grupo Enel

www.enersis.cl

Annual Report and Financial
Statements of Enersis

2013

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GA!A

Santiago Stock Exchange
ENERSIS
New York Stock Exchange
ENI
Madrid Stock Exchange
XENI

Enersis S.A. was incorporated, initially, with the name Compañía Metropolitana de Distribución Eléctrica
S.A., and changed its name to Enersis S.A. on August 1, 1988. Its corporate capital is ThCh$5,669,280,725,
divided into 49,092,772,462 shares. Its shares are quoted on the Chilean exchanges, on the New York
Stock Exchange in the form of American Depositary Receipts (ADR) and on the Latin American Securities
Exchange of the Madrid Stock Exchange (Latibex).

Its main 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,
and also businesses in telecommunications and engineering consultancy services, in Chile and abroad, in
addition to investing and managing its investments in subsidiaries and associate companies.

Its total assets amounted to ThCh$15,177,664,307 as of December 31, 2013. Enersis controls and manages
a group of companies that operate in the electricity markets of five countries in Latin America (Argentina,
Brazil, Chile, Colombia and Peru). In 2013, net income attributable to the dominant company amounted to
MCh$658,514 and operating income amounted to MCh$1,741,138. At the end of 2013, it provided direct
jobs to 11,574 people through its subsidiaries in South America.

Directors and Executive Officers

CHAIRMAN
Pablo Yrarrázaval Valdés
PHONE NUMBER (56-2) 2353 4663

VICE CHAIRMAN
Borja Prado Eulate
PHONE NUMBER (56-2) 2353 4631

DIRECTOR
Andrea Brentan
PHONE NUMBER (56-2) 2353 4631

DIRECTOR
Luigi Ferraris
PHONE NUMBER (56-2) 2353 4631

DIRECTOR
Hernán Somerville Senn
PHONE NUMBER (56-2) 2353 4631

DIRECTOR
Leonidas Vial Echeverría
PHONE NUMBER (56-2) 2353 4631

DIRECTOR
Rafael Fernández Morandé
PHONE NUMBER (56-2) 2353 4631

CEO
Ignacio Antoñanzas Alvear
PHONE NUMBER (56-2) 2353 4510

DEPUTY CEO
Massimo Tambosco
PHONE NUMBER (56-2) 2353 4613

COMMUNICATIONS OFFICER
Daniel Martini
PHONE NUMBER (56-2) 2353 4666

INTERNAL AUDIT OFFICER
Alain Rosolino
PHONE NUMBER (56-2) 2353 4647

ADMINISTRATION, FINANCE AND CONTROL OFFICER
Eduardo Escaffi Johnson
PHONE NUMBER (56-2) 2353 4682

PLANNING AND CONTROL OFFICER
Marco Fadda
PHONE NUMBER (56-2) 2353 4684

LEGAL COUNCEL AND SECRETARY OF THE BOARD
Domingo Valdés Prieto
PHONE NUMBER (56-2) 2353 4631

HUMAN RESOURCES OFFICER
Carlos Niño Forero
PHONE NUMBER (56-2) 2675 2780

PROCUREMENT OFFICER
Eduardo López Miller
PHONE NUMBER (56-2) 2353 4635

SHARED SERVICES OFFICER
Jaime Sánchez-Cano
PHONE NUMBER (56-2) 2353 5159

Investor Relations

INVESTOR RELATIONS DIRECTOR
Pedro Cañamero González
PHONE NUMBER (56-2) 2353 4682

CITIBANK NY
Teresa Loureiro-Stein
PHONE NUMBER (1-212) 816 6814

SANTANDER INVESTMENT
Ignacio Algora
PHONE NUMBER (34-91) 289 3951

Design and Production LEADERS

Annual Report 2013

2013 ANNUAL REPORT ENERSISIndex

Chairman´s Letter to Shareholders | 4

Main financial and operating indicators | 14

Company identification and governing documents | 18

Ownership and control | 22

Management | 26

Human resources | 46

Stock exchange transactions | 58

Dividends | 64

Investment policy and financing for the accounting period 2013 | 68

Company business | 72

Investments and financial activities | 84

Risk factors | 96

Regulatory framework for the electric industry | 102

Description of electric business per country | 124

Summary chart of participations | 158

Relevant facts for the entity | 164

Identification of affiliates and related companies | 180

Declaration of responsibility | 200

Consolidated Financial Statements | 202

Reasoned Analysis of Consolidated Financial Statements | 376

Affiliates Summarized Financial Statements | 397

Chairman´s Letter to Shareholders

Dear Shareholders,

Results for 2013

In 2013, Enersis achieved one of the most significant

In short, the company’s net earnings increased by 74.5%,

economic-financial results of its history, comparable to

thus reaching $658.514 billion. This improved performance is

the $660.231 billion of 2009. The foregoing is due to the

mainly due to three factors: the operational improvement of

adequate strategy we have implemented year after year,

the generation business in Chile, Argentina, and Colombia;

the main sustaining factors of which are making each of

the incorporation of the Cono Sur assets; and the positive

the operations we run in the five countries in the region

impact of the accounting acknowledgment of the greater

(Argentina, Brazil, Chile, Colombia, and Peru) profitable;

historical costs in Edesur, Argentina, as of the second quarter

maintaining a solid financial position; adding value to our

of 2013.

shareholders’ investment; and promoting relations based on

trust and cooperation with the communities we operate in.

The EBITDA was $2 billion 251 million 489 thousand, or

US$4.547 billion, an amount which entails an increase of

Also—thanks to the trust placed in us by each of you—

15.6%. Due to an adequate strategy implemented by the

Enersis has consolidated its position as Endesa’s (Spain) sole

company, this indicator exceeded US$4.0 billion for the fifth

investment means in South America, with almost 16,000 MW

year in a row.

of installed capacity and over 14 million clients.

Confirming the region’s dynamic performance and the

The latter is due to a fact that has been vital for the present

promising economic perspectives showed by the five

and future of the company. I’m referring to the successful

countries where we run operations, the sale of energy in the

capital increase concluded on March 28, 2013, whereby

distribution sector grew by 3.8%, to 75,443 GWh, thanks to

100% of the shares available for subscription were acquired.

the increases achieved in Brazil, Colombia, and Chile. In the

generation business line, energy sales reached 69,369 GWh,

In view of the result of the operation, whereby over US$6

which entailed an increase of 5.2%.

billion were obtained between assets in kind and cash, I am

able to proudly and tTax IDhfully assert that in spite of the

fact that it was not an easy task and one which was not short

Regional Scenario

on issues, we achieved an operation that was unprecedented

Our stakes in the countries where we operate are based

for the Chilean capital market, thereby providing the

on the macro-economic perspectives of the region, and

company with the necessary resources to carry out a

namely, on our long-term commitment, which implies

significant growth and expansion plan.

providing solutions to energy needs and being a party to the

development of each of these markets.

Today Enersis is larger, more robust, and has the muscle

to enable it to continue to lead the energy sector in South

In spite of a global scenario that still shows some dark clouds,

America, thereby maximizing the benefit of each of our

the five countries where we operate offer a solid basis and

shareholders.

stable growth signals—though in the last few months of

2013, Chile showed come signs of deceleration, which we will

As an example of the foregoing, in spite of the 50% increase

pay close attention to in order to promptly take any actions

in the number of shares as a result of the capital increase

that may be necessary—thus providing enough energy to re-

operation, the earnings per share reached $13.4, that is,

boost the local economy.

16.1% higher than 2012, while the sole incorporation of the

Cono Sur assets—the company through which Endesa (Spain)

Another issue also worthy of our attention is Standard and

subscribed its proportional part in this operation—accounts

Poor’s recent reduction of Brazil’s rating from “BBB” to

for 19% of the company’s net earnings during 2013.

“BBB-”, wherein the electrical sector’s risks are pointed out

CHAIRMAN´S LETTER TO SHAREHOLDERS

2013 ANNUAL REPORT ENERSISas one of the main problems the country will face in the

The message we conveyed to the market was clear: We will

short and medium-term. This reduction brought an end to a

not go out and purchase and invest the resources provided

decade of rising ratings and surprised a major portion of the

by the capital increase at any price. We will not make

international market.

acquisitions if the conditions are not adequate to increase

the value of the investment of our shareholders. And as

However, we should not lose our perspective, since South

we have done since day one, we will analyze each of the

America continues to compare favorably with regard to the

operations to seek to maximize the value of the company for

OECD countries in terms of growth, due to demographic and

the benefit of each and every one of our shareholders.

macro-economic factors. Because of that, and within this

dynamic context—though it is a little slower in Chile, Brazil,

and Argentina—we are certain and rest in the assurance

that we have the necessary tools and the backing of Endesa

(Spain) and the Enel Group to face the challenges posed us

on a day-to-day basis by the regional electricity sector and

to provide a safe and reliable power supply at competitive

prices.

Voluntary Tender Offer for Coelce

The market is anxious for us to begin investing the funds

obtained through the capital increase operation. We have

been cautious and the waiting period has proved us right.

Refraining from going to market at a time when most of

the target companies’ securities were above their historical

transaction averages has enabled us to increase our

purchasing power by 20%.

However, we have already taken a first step. And a

successful one at that. I’m referring to the Voluntary tender

offer made to the minority shareholders of our Brazilian

electrical distribution business, Companhia Energética do

Ceará (Coelce), notified to the market on January 14, 2014,

and concluded on February 17. Enersis acquired a total of

11,783,080 shares, which account for 15.13% of the equity

of said company, thereby directly and indirectly obtaining

74% of controlling ownership of Coelce. During the bidding,

Enersis did not increase the offered price as it estimated

that the prize offered (with an implicit premium of 20.1%)

was adequate and expedient for the company’s equity

interests. The acquisition of 15.13% of Coelce entailed the

disbursement of about $132.340 billion, or US$242 million.

Pablo Yrarrázaval Valdés

Chairman

A New Way of Operating

However, I wish to be clear about something: As a Group, we

must go beyond the requirements put forth in the law, the

Last year, I commented on these pages on the difficulties

regulations, and sectorial permits. As a leading company in

we were facing in Chile to develop the projects, not only

the electricity sector, we must take the initiative and tune

in the electrical sector, but also in the rest of the country’s

into more stringent requirements.

production sectors. This is a symptom of a substantial change

in the relationships between companies, communities, and

Endesa Chile has developed a new relationship plan with

the authorities, which we are also a part of as a company that

Coronel, which seeks to address the fundamental issues by

acts responsibly in the environments where it operates.

proposing definitive solutions to our main stakeholders.

Endesa Chile is under the obligation to recover the leading

This precaution is necessary in order to understand the full

role in each of the environments where it operates. This

scope of the facts that I am going to describe below.

is a turning point and we cannot go back. Ignoring the

new reality of the country would be a mistake that would

In late October 2012, our affiliate company, Endesa Chile,

ultimately impact on the market. We cannot waste the

commissioned Bocamina II in the district of Coronel, Region

capital of trust and credibility that our companies have

of Biobío, thus providing the country 350 MW of efficient

enjoyed in the past.

capacity at low operational costs, which amount to about 50

US$/MWh (of variable cost) during a third year of drought.

Do we have pending tasks? Certainly. We have only taken

the first steps so that this new way of operating by means

In September 2013, the Superintendence of the Environment

of projects that integrate the communities’ comments right

filed a penalizing procedure against Bocamina II. Said

from the beginning and share the effects and benefits of the

procedure was reformulated in December and included new

initiatives from the out start, can become a part of our DNA

breaches. The same month, after a motion filed against the

and permeate all our activities.

power plant, the Court of Appeals of Concepción issued

an order to refrain from innovation, thus paralyzing the

An example of this new way of operating was the agreement

operation of Bocamina II.

signed by Endesa Chile in February 2014 with the irrigators

of the Region of Maule. After months of negotiations

Dear shareholders, the operation of Bocamina II has abided

and meetings, an agreement was reached to enable the

at all times by the Environmental Qualification Resolution

feasibility of the construction of the 150-MW Los Cóndores

(RCA, by its Spanish acronym) issued in 2007, which is still

hydroelectric power plant, which is to begin this year (2014).

effective. We have not infringed on the permit issued by

the competent authorities in any way, and have fulfilled the

Having clear guidelines for developing long-term

regulations that govern the activity; therefore, there is no

investments is paramount and crucial for a company. But we

pollution or risk, let alone any detriment to the health of the

must take into account that we are undergoing a process of

population or the environment.

profound change.

The power not generated by Bocamina II is being replaced by

Rest assured that we are working and will continue to do

inefficient diesel power plants. This entails operational over-

so as a Group in order to be up to the new challenges,

costs for the entire Central Interconnected System (SIC, by its

maintain our leadership, and respond to society’s and our

Spanish acronym) of about US$100 million (to March 2014).

stakeholders’ new needs.

This brings out the significance that this power plant has for

the system, especially in the light of the four years of drought

incurred by the central area of the country.

CHAIRMAN´S LETTER TO SHAREHOLDERS

2013 ANNUAL REPORT ENERSISCommitment of all Parties

the reconversion of the Salaco chain, which will contribute

close to 145 MW in addition to the 76.2 already operating

However, companies’ intent to develop projects that are

in the area. Both of these projects are located in Colombia.

aligned with effective environmental regulations is not the

In addition to these two initiatives, the construction of

only thing required in order to make progress and provide

Los Cóndores and the reconversion of the Taltal plant to

Chile the power it needs to continue to grow, also necessary

combined cycle will be initiated in Chile, thus adding another

is the communities’ support and commitment by the

120 MW to the 245 MW already generated by this unit. The

authorities. It is urgent to re-activate the projects, otherwise,

latter project is now well into the environmental approval

both our competitive capability and our image as a country

procedure after our affiliated company, Endesa Chile,

that respects its institutions will be in jeopardy.

submitted the Environmental Impact Statement in late 2013,

in order to carry out this enterprise.

To date, the materialization of close to 11,000 MW of new

capacity has faced difficulties. 6,650 MW of that amount

Concerning the third and fourth actions, respectively, we

have been stopped due to issues arisen in the approval

hope to reduce the cash-cost (cost per client) by 15% and we

process, 1,660 MW have been stopped on a permanent basis,

will seek to leverage gas commercialization opportunities,

and 2,400 MW associated with already approved projects

wherein we have taken relevant steps in Colombia and Chile.

have not been able to initiate construction. Initiatives such

as Barrancones and Castilla, owned by new operators which

We will continue to materialize the other initiatives we have

intend to enter the local market failed due to the difficulties

in our generation portfolio or pipeline. I’m referring to Punta

that arose in the processing of their permits or due to court

Alcalde (740 MW) and Neltume (490 MW) in Chile, and

proceedings.

Curibamba (188 MW) in Peru.

Business Plan

Among the projects in our portfolio, special mention should

be made to the HidroAysén project. As is publicly known, it

Dear shareholders, as a Group, our commitment toward Chile

has a favorable RCA since 2011. Additionally, the Supreme

and the countries where we operate remains in place.

Court dismissed all the protection motions filed against the

environmental assessment process of the project.

Thus, the main actions of our business plan for the five

years between 2014-2018 in the power generation and

In June 2011, HidroAysén filed a claim with the Committee of

commercialization sectors are based on the following

Ministers requesting that certain requirements established

strategic guidelines: a demand supported by solid economic

in the RCA be reviewed. Along the same lines, congressmen,

principles, increase of the installed capacity, increase of

NGO’s, and environmentalist groups also filed other motions

efficiency, and launching of new business lines.

for a total of 35 claims.

In the first point we foresee an annual cumulative rate (TACC,

Throughout 2012 and 2013, the Committee of Ministers

by its Spanish acronym) of 4.2%, including our operations in

did not meet to review said claims. Finally, in late January,

Argentina, Brazil, Chile, Colombia, and Peru.

2014, after two and half years of waiting, the Committee of

Ministers decided to request further information and studies.

In order to materialize the second item, we will incorporate

Once they were submitted, the Committee of Ministers

over 800 MW of new capacity during the next five years.

would reevaluate part of the claims and issue its final

This new capacity includes the 400 MW that we will add

decision concerning the project.

with the commissioning of El Quimbo in early 2015, and

However, the new administration of President Michelle

We will also work to increase the contribution margin, reduce

Bachelet brought the decision of the Committee of Ministers

the equivalent downtime of the installed power (TIEPI, by its

back to square one by annulling it and setting a new deadline

Spanish acronym), with a special focus on Brazil regarding

of 60 days for the new Committee of Ministers to analyze the

loss reduction, and a reduction of 6% in cash-cost (cost per

claims.

client) by 2018.

As a Group we are fully committed to carry on with

We will continue to move forward with innovative ideas

HidroAysén, provided there is political, social, and national

in the area of distribution, such as smart cities, electrical

disposition to consider this project in Chile’s best interest.

mobility, and distributed generation.

The time has come to make decisions and refrain from

This year, our affiliated company Chilectra will inaugurate the

further extending the waiting period.

first SmartCity in our country at Ciudad Empresarial. Latest

The companies and various social players—but especially the

Santiago, thus enabling users active participation in energy

Executive and Legislative Branches—must do their part for

administration, integrating renewable energy sources,

the country to be able to strengthen its electric power matrix

and reducing CO2 emissions, with the object of knowing,

and fully tap into the primary energy it has, such as water,

evaluating, and measuring their impact in order to enable

generation technologies will be put to the test at Smartcity

which provides competitive, abundant, clean, and local

their replication on a greater scale.

energy resources. The relevant factor for preventing waste

of time and resources, whether it be by private companies or

Along the same lines, during 2013 we continued to move

public entities in charge of evaluating the projects, is to have

forward with the SmartCity Búzios project in Río de Janeiro,

a clear understanding of what the country needs in terms of

Brazil, by integrating electrical mobility into this initiative. To

energy.

this end, an electric taxi, or “aqua taxi”, was commissioned,

which will be used in research and transportation; electric

The decision is everyone’s, and as Group, we are and will be

bicycles for use by the Municipal Guard and for rental at

part of the solution.

hostels and hotels, in addition to electric cars for use by the

Added Value

project’s researchers.

In order to move ahead with all these initiatives, in the five

Concerning activities in the distribution sector, the actions

years from 2014-2018, we will invest a total of US$9.085

for the 2014-2018 period will focus on new connections,

billion, US$3.98 billion of which will be focused on the

development and growth in the portfolio of added value

generation sector, and the remaining US$5.105 billion

products, improvement of service quality, reduction of losses,

on the distribution sector. In Chile, US$2.483 billion of all

and increase in efficiency.

investments will be made in the next five years, US$1.786

billion in generation and US$697 million in distribution.

In order to meet these goals, we will acquire from 400,000

to 500,000 new clients a year. In other words, by the end of

2018, the Group should have over 2 million new clients, for

Leadership

a total client base of 16 million clients in the six concession

I wish to conclude my words with a brief reflection on what it

areas where we are operating (Buenos Aires, part of the State

has meant to Chile to abandon hydroelectric development, as

of Río de Janeiro, Fortaleza, Santiago, Bogota, and Lima) in

opposed to countries such as Brazil, Colombia, or Peru, which

the region.

have strongly supported this type of development in recent

CHAIRMAN´S LETTER TO SHAREHOLDERS

2013 ANNUAL REPORT ENERSISyears, thus generating the necessary conditions for private

promoting energy efficiency to reduce total costs; recovering

entities to develop this type of initiative.

environmental institutional procedures, and taking into

From 2006 to 2013, in the central area of the country only,

precautions to preserve the environment in each generation

account the needs of the community and the necessary

the installed capacity has increased by over 5,800 MW, 78%

project from its very inception.

of which are based on thermal plants. In view of this, the

contribution of hydroelectric power to the SIC production

Chile used to be at the forefront of power generation in the

mix went from 71% in 2006 to 40% to the end of 2013.

hemisphere. It wasn’t for nothing that it created some the

The consequence has been a notorious increase in fuel

most solid companies in the sector. Things have changed

expenses—from an annual disbursement of US$350 million

and times are not what they used to be. But change must

to US$2.3 billion.

not paralyze us. To the contrary, it should drive us to look at

things anew, as if it were the first time, but from different

The foregoing has not only had an impact in terms of a fuel

angles, and find the solutions to the challenges of the

cost increase that we have had to foot as a country, thus

present and the future.

reducing competitiveness in the industrial sector, but it

has also meant an increase of 40 US$/MWh in power grid

We are not asking for tailor-made playing rules, but rather

operational costs, whereby the average marginal costs of 29

stable rules that are known and accepted by all sectors

US$/ MWh went to 165 US$/ MWh in the same period due to

and players in the business. We need institutions that are

greater fuel consumption, a factor which has further affected

respected by all because of their legal, political, and social

the loss of leadership at the regional level.

legitimacy.

Chile has an untapped potential of over 20,000 MW of new

Our commitment toward Chile and each of the countries we

hydric capacity, which would contribute a low-cost power

operate in is intact.

base which we are not leveraging because we don’t have

clear guidelines for developing it.

Best Regards,

As a Group, we are fully aware of this and want to be part of

the solution to the energy problems and the need for more

energy of each of the countries where we operate.

In the recent call for bids among the distribution companies

for electric power supply that was conducted in our country,

Endesa Chile was one of the two companies that submitted

proposals and was awarded 35 of the 50 energy sub-blocks.

This is what we know how to do—provide a safe and reliable

electricity service at competitive prices.

But as a country and as a region, we need to be capable of

Pablo Yrarrázaval Valdés

unblocking and speeding up the administrative processing

Chairman

of projects, once again undertaking the development of

initiatives with special emphasis on hydroelectric power;

Highlights 2013

JANUARY

FEBRUARY

MARCH

APRIL

Coelce ranked second in
Service Quality
Coelce ranked second in
service quality among
distributors in the country,
according to the ranking
disclosed by the Agencia
Nacional de Energía Eléctrica
(Aneel).

Endesa Chile ranked
second in the Corporate
Sustainability Index
The company ranked second
nationally in the Corporate
Sustainability Index,
according to the digital
magazine The Note, of the
Capital Magazine, where 110
companies in the country
participated

Edelnor and the Peruvian
government electrified Valle
del Río Chillón
Edelnor and the Peruvian
government inaugurated
in the Centro Poblado
Huertos del Río Seco
rural electrification of the
communities of Valle de
Río Chillón in Lima, works
that are co-financed by
the Peruvian State and
Edelnor. Light reached 42
communities with these
works, where 2,500 families
of Valle Chillón were
benefited.

Edelnor inaugurates
Huarangal Substation
Under the framework
of complying with the
company’s Transmission
Plan, the new 220/60 kV
Transmission Substation
(SET, as per its acronym in
Spanish) Huarangal, located
in the emerging Lima district
of Carabayllo and built in a
22 thousand square meter
area, becoming a milestone
works for Edelnor. Its
infrastructure forms part of
a comprehensive installed
power and reliability increase
plan of the electric system in
Lima’s northern zone, with
the objective of servicing
increase of demand in
residential, commercial and
industrial segments.

Endesa (Spain), Pension
Funds and Institutional
Shareholders subscribe
Enersis capital increase.
Endesa (Spain) exercised the
overall total of the preferred
subscription rights that
were assigned by its affiliate
Endesa Latinoamérica,
through entering a stock
subscription contract with
Enersis. Such contract
accounts for the subscription
of 9,967,630,058 ordinary
shares corresponding to
the capital increase at a
value of $173 per share,
which corresponds to a
total subscription value of
$1,724,400,000,034. The
total subscription value
that Endesa (Spain) paid
through the transference
of the overall total of its
company rights in Cono Sur
Participaciones, S.L., which
were approved as non-
monetary goods contribution
by Enersis’ Extraordinary
Shareholders’ Meeting held
on December 20, 2012.

Enersis’ successful capital
increase
Enersis’ shareholders subscribe
an approximate total of
US$6,022 million with a
historical result for this type of
operations in the local market,
placing 100% of available
shares for the capital increase.
The amount collected, in the
largest capital increase carried
out in the country to date is
broken-down in the following
manner: once the preferred
option periods concluded in
Chile, United States of America
and Spain, the company
shareholders subscribed a
total of 16,284,562,981 shares,
corresponding to 99.04% of
the total authorized for its
issue, adding approximately
US$5,961 million (of these
shares, Endesa (Spain),
through the contribution of
its participations grouped in
the Southern Cone, subscribed
9,967,630,058 shares). In turn,
the remnant 157,043,316
shares that were left at the
end of the preferred option
periods, the overall total were
placed in an auction in the
Santiago Stock Exchange
of Santiago, collecting
approximately US$60.6 million,
auctioning the overall total
packages at $182.30 per share.

HIGHLIGHTS 2013

2013 ANNUAL REPORT ENERSISMAY

JUNE

JULY

Positive Effect of Resolution
No. 250/2013 in Edesur
In order to regularize the
status of Edesur’s credits
and liabilities, the Energy
Secretary through its
resolution No. 250/2013
provided compensation
from May 2007 to February
2013 between the MMC
accretions not transferred at
a determined rate by ENRE,
with the PUREE balances
that the company retained.
In a complementary manner
the authority instructed
CAMMESA to issue in favor
of Edesur the so-called Sales
Settlements due a Due
Date Pending Definition
(LVFVD, Liquidaciones
de Ventas con Fecha de
Vencimiento a Definir, as per
its acronym in Spanish), for
the surplus values derived
from the aforementioned
compensation and
authorized CAMMESA to
receive these settlements as
part payment of the Edesur
debts.

Emgesa receives IR (Investor
Relations) seal by the Stock
Exchange
Within the framework of the
Fifth Asobolsa (Asociación
de Comisionistas de Bolsa de
Colombia) annual congress,
Emgesa was recognized with
the IR (Investor Relations)
by the Colombian Stock
Exchange. This recognition
granted for the first time in
Colombia was obtained due
to the company’s actions
to increase its relevant
information standards
towards investors and the
financial community. .

Fitch Ratings increased
Emgesa’s international rating
Fitch Ratings increased
Emgesa’s international
rating from “BBB-” to “BBB”
with a stable perspective
(local and foreign currency).
It also confirmed the AAA
risk rating of Emgesa’s
Long-Term National Rating
and of its local bond issues.
The decision is based in the
company’s solid financial
performance, robust cash
generation and expectation
of low and moderate
leveraging after the complete
start of the commercial
operation of El Quimbo.

Enersis Group kicked-off
innovating Teletrabajo (Tele-
working) Program in Chile
Within the framework of their
concern and commitment
towards the well-being of
its workers and in order to
improve the quality of life
of its collaborators, Enersis
Group started and innovating
project called the Tele-
working Program, in order to
have 38 employees of their
companies in Chile, as a start,
to form part this initiative’s
implementation process.

Eepsa places in commercial
operation new thermal plant
in Piura
A new Eepsa-owned 180
MW effective power unit
of the Malacas Thermal
Power Plant, in Talara was
commercially started-up
being the first unit that enters
into commercial operation
as the system’s cold reserve.
This new plan is dual open
cycle and contributes 180
MW of additional energy to
the Interconnected National
Electric System (SEIN, Sistema
Eléctrico Interconectado
Nacional as per its acronym in
Spanish) in emergency cases.
This works is the first cold
reserve unit that enters the
SEIN and means an extension
of the electric generation
capacity for the company of
its Malacas Thermal Power,
in Piura.

Coelce was chosen as the
third best distributor in Brazil
Coelce was chosen as the
best third energy distributor
in Brazil and for the eighth
consecutive year the best
distributor in the Northeast.
Ampla is among the 4
best Quality Management
companies and went from
being ranked 19th to 15th in
the 2013 national ranking.

Punta Alcalde electric
transmission line project
goes into the environmental
assessment process.
The Atacama Region
Environmental Assessment
Service (SEA, Servicio de
Evaluación Ambiental)
accepted for processing
the Electric Transmission
Project of the Punta Alcalde
Substation-Maitencillo
Substation, initiative that
will allow supplying energy
that the Punta Alcalde Power
Plant generates to the Central
Interconnected System (SIC,
Sistema Interconectado
Central).

SEPTEMBER

OCTOBER

Placement of Emgesa Bonds
Emgesa successfully placed
bonds in the Colombian
capitals market in September
2013 for a total of US$294
million at 6 and 12-year
terms and at CPI +4.25% and
CPI +5% rates, respectively.
It received a total demand of
2.2 times the offered value,
reaching US$459 million.

The National Industry
Association (Sociedad
Nacional de Industrias, SNI,
as per its acronym in Spanish)
Awards Edegel
The SNI granted Edegel the
Recognition to Organizations
with the Certificate
Management System, an
award that seeks to empower
companies like Edegel to
foster other organization in
optimizing their processes,
in order to promote global
competitiveness in Peru.

AUGUST

Enersis Group Companies
Achieve Certification as
Family Responsible Firms
The companies of the Enersis
Group in Chile achieved
certification as Family
Responsible Firms under
the efr I 1000 - 1 Edition 3
Standard, achievement that
ratifies the maturity and
robustness reached in this
matter by the Group in our
country.

Chilectra and Endesa Chile
are awarded in the RSE
Prohumana Ranking
Consolidating a leadership
position, the Enersis Group
companies, Chilectra and
Endesa Chile, ranked second
and tenth, respectively,
in the 9th RSE 2013
ranking organized by the
Prohumana Foundation and
the magazine Qué Pasa, a
distinction that highlights the
best companies in matters
pertaining to Corporate
Social Responsibility.

Enersis, Fundación Integra
and Desafío inaugurated
nursery schools built in the
Biobío Region
The facilities benefited were
the Los Angeles Millantú
Nursery School and the San
Miguel de Pemuco Nursery
School, providing a totally
equipped installation to
64 children. Both nursery
schools suffered severe
damages due to the February
27, 2010 earthquake.

Endesa Chile turned to the
Supreme Court due to the
Court of Appeals’ sentence
on Punta Alcalde
After analyzing Santiago’s
Court of Appeals sentences,
which left without effect
Agreement No. 17/2012
adopted by the Ministers’
Committee, through which
it approved the Punta
Alcalde Project, Endesa Chile
decided to appeal before the
Supreme Court, and thus,
seeks to ratify the decision
taken by the Ministers’
Committee.

Enersis ends simplified
company structure within the
capital increase framework.
Once the simplified company
structure is closed the
capital increase approved
on December 20, 2012 by
the Enersis Extraordinary
Shareholders’ Meeting,
the company acquired the
company participations
of its affiliate Inversiones
Sudamérica Ltda., producing
consequentially the
termination of the last
mentioned company. Thus,
Enersis acquired company
participations that Endesa
Spain contributed as payment
of capital increase shares,
becoming the direct title
holder of the contributed
company shares, a fact that
was legally effective starting
last October 1. Inversiones
Sudamérica Ltda., had
previously absorbed, during
last July, the company Cono
Sur, company that originally
grouped the company
contributions that Endesa
Spain provided within the
framework of the capital
increase operation.

Supérate (Excel Yourself)
Award
Enersis Group and Qué Pasa
magazine distinguished
schools that showed
the best progress in
the Simce Reading and
Mathematics Exams taken
by Eight Graders in 2000
and 2011. The analysis,
given nationally, involved
5,800 school facilities. The
objective of the Supérate
Awards is to underscore the
task of hundreds of teachers
that have worked so that
their students have better
academic performances.
They are schools that might
never be in the best schools
official rankings, but that
have made significant efforts
to improve the quality of
education.

Ampla Launches Electric
Mobility in Buzios
In September Ampla
launched electric mobility
in Búzios, unit that forms
part of the Smart City Búzios
project. At the time an
electric vessel was presented
that will be used in the
research and transportation,
electric bicycles to be used
by the Municipal Guard and
that will be leased in hostels
and hotels, in addition to the
electric cars that the project
researchers will use.

HIGHLIGHTS 2013

2013 ANNUAL REPORT ENERSISEndesa Costanera Capital
Increase
Endesa Costanera’s
Shareholders’ Meeting on
April 5 resolved to increase
its corporate capital for an
amount of up to 555 million
Argentinean Pesos and,
consequently, the issue of
a total of up to 555 million
new registered common
shares at a nominal value of
one Argentinean Peso and
with one right to vote per
share. The capital increase
operation concluded on
November 21.

Ignacio Antoñanzas
is elected as “2013
International CEO of the
Year” by Latin Trade Group
Ignacio Antoñanzas,
Enesis General Manager
received the award as
2013 International CEO of
the Year, for “leading the
noticeable expansion of
one of the largest private
electricity multinationals in
Latin America”, according
to what Latin Trade Group
specified. Starting from
2005 to 2012, the Enersis
Group EBITDA went from
US$2,277 million to US$4,075
million, showing growth
of 79%, almost tripling
electric demand growth.
The award was granted by
the Latin Trade business
publication (distributed in
the United States and Latin
America) jointly with the
Inter-American Development
Bank.

NOVEMBER

DECEMBER

The first Salaco Chain
optimizing unit starts
operating
One of the most relevant
milestones of the Salaco
Project in November was the
formal commercial start-up
of Unit 2 of the Colegio
Power Plant (50 MW) in
the Colombian National
Interconnected System
(Sistema Interconectado
Nacional de Colombia).

Chilectra among the best
companies to work in Chile
Chilecta was ranked 35th
among the best companies
to work in the country in
the Award of the Eighth
Ranking Great Place to Work,
jointly with the El Mercurio
newspaper.

Ventanilla Thermal Power
Plant obtains the AENOR
certification
Ventanilla Thermal Power
Plant has obtained the
certification of reducing
close to 2.5 TCO2e by
the Spanish Association
of Normalization and
Certification (AENOR,
Asociación Española
de Normalización y
Certificación) within the
framework of its project
Clean Development
Mechanism (MDL,
Mecanismo de Desarrollo
Limpio), associated to the
Kyoto Protocol and that is
registered in the TÜV Blue
Registry. On completing this
last step Edegel will formally
enter the Voluntary Carbon
Market.

Enersis, Fundación Integra
and Desafío inaugurate first
Nursery School rebuilt in the
Renca District
In a ceremony with the
presence of authorized
officials, social players,
government authorities
of the District of Renca
and representatives of
the Enersis Group, the
Papelucho nursery school
was inaugurated the first of
three educational facilities
that Fundación Integra will
build in the Metropolitan
Region after the earthquake
that affected the central-
southern zone of the country
in February 2010, thanks to
the contribution made by
Fundación Endesa.

Endesa Chile is awarded the
supply bid for regulated
clients
The company was awarded
3,500 GWh/year in order
to guarantee supply to
regulated clients in the
Central Interconnected
System (SIC, Sistema
Interconectado Central),
for the December 2013 to
December 2024 period.
The price offered was of
US$129,035/MWh.

Emgesa is recognized
in matter relating to
Sustainability
Emgesa received a special
acknowledgment in the
2013 Bibo Awards, due to its
environmental commitment,
preserving and restoring
forests, preserving water
resources and seeking
alternatives to achieve
energy efficiency in the
country.

El Quimbo Project shows
57% progress
During 2013 a significant
effort was made in the
execution of the El Quimbo
Hydroelectric Project in
Colombia, reaching 57%
progress in its execution at
the 2013 closing.

Bocamina Second Unit
Thermal Electric Power
Plant Optimization goes
into environmental EIA
processing
Due to the engineering
studies carried out starting
2008 and from a machine
performance analysis the
design of the Second Unit
was optimized, which allow
improving its functioning
in environmental and
security of supply terms,
without modifying the
approved project’s essential
characteristics allowing, in
turn, to increase power in
20 MW.

Enersis wins award “Deal of the
Year” in the “Equity Follow-
on” category due to capital
increase
Enersis formed part of the
select group of only three
Chilean institutions that were
acknowledged within a total
of 24 categories. The award is
under the framework of the
most important operations
carried out by companies, due
to the issue of sovereign bonds
and government financing of
private financial institutions
in Latin America and in the
Caribbean, between October
1, 2012 and September 30,
2013. The selection process
took into account the offers’
market importance or strategic
relevance, as well as the way
in which each one of the
operations were structured and
executed. The award ceremony
of the “2013 Deals of the Year
Awards” was carried out in a
Gala Dinner at Gotham Hall,
in New York City in January
2014 and was granted by the
prestigious financial magazine
LatinFinance.

Enersis surpassed 14 million
electric energy distribution
clients in South America
This figure meant an increase
of 3.5% in reference to the 13.9
million of December 2012 or
the equivalent of 492 thousand
new clients, confirming the
company as a leader in the
private South American sector.

Main financial
and operating
indicators

MAIN FINANCIAL AND OPERATING INDICATORS

2013 ANNUAL REPORT ENERSISTotal Assets

Total Liabilities

As of December 31 of each year (figure in million nominal Pesos)

2008 (1)
13,781,177

2009 (1)
13,210,140

2010 (1)
13,005,845

2011 (1)
13,733,871

2012
13,317,834

2013
15,177,664

7,752,045

6,833,137

6,491,817

6,837,717

6,354,065

6,670,199

Operating Revenue

6,579,945

6,472,056

6,563,581

6,534,880

6,577,667

6,264,446

EBITDA
Net Income (2)

Liquidity Ratio
Debt coefficient (3)

GENERATION BUSINESS
ARGENTINA
Number of employees
Number of generation units
Installed capacity (MW)
Electricity generated(GWh)
Sales of electricity (GWh)

BRAZIL
Number of employees
Number of generation units
Installed capacity (MW)
Electricity generated(GWh)
Sales of electricity (GWh)

CHILE
Number of employees
Number of generation units
Installed capacity (MW)
Electricity generated(GWh)
Sales of electricity (GWh)

COLOMBIA
Number of employees
Number of generation units
Installed capacity (MW)
Electricity generated(GWh)
Sales of electricity (GWh)

PERU
Number of employees
Number of generation units
Installed capacity (MW)
Electricity generated(GWh)
Sales of electricity (GWh)

TOTAL
Number of employees
Number of generation units
Installed capacity (MW)
Electricity generated (GWh)
Sales of electricity (GWh)

2,301,714
507,590

2,467,101
660,231

2,261,691
486,227

2,127,368
375,471

1,982,924
377,351

2,251,489
658,514

1.09
1.29

1.17
1.07

0.97
1

1.03
0.99

0.99
0.91

1.31
0.78

2008 (1)

2009 (1)

2010 (1)

2011 (1)

2012

2013

As of December 31 of each year

325
20
3,652
10,480
11,098

193
13
987
3,379
7,093

1,123
65
5,283
21,267
21,532

404
29
2,895
12,905
16,368

219
24
1,467
8,102
8,461

2,264
151
14,284
56,133
64,552

332
20
3,652
11,955
12,405

200
13
987
3,319
6,869

1,172
110
5,650
22,239
22,327

415
29
2,895
12,674
16,806

224
25
1,667
8,163
8,321

2,343
197
14,851
58,350
66,728

426
20
3,652
10,940
11,378

193
13
987
5,095
6,790

607
107
5,611
20,914
21,847

444
30
2,914
11,283
14,817

244
25
1,668
8,466
8,598

1,914
195
14,832
56,698
63,430

473
20
3,652
10,801
11,381

202
13
987
4,155
6,828

1,081
107
5,611
20,722
22,070

498
30
2,914
12,090
15,112

247
25
1,668
9,153
9,450

2,501
195
14,832
56,921
64,841

501
20
3,652
11,289
11,852

202
13
987
5,177
7,291

1,141
111
5,961
20,194
21,277

517
30
2,914
13,294
16,304

263
25
1,657
8,740
9,587

2,624
199
15,171
58,694
66,311

628
25
4,522
14,422
16,549

205
13
987
4,992
6,826

1,141
105
5,571
19,432
20,406

563
29
2,925
12,748
16,090

316
27
1,842
8,489
9,497

2,853
199
15,847
60,083
69,368

DISTRIBUTION BUSINESS
ARGENTINA
Sales of electricity (GWh)
Number of Customers
Energy losses
Number of employees
Customers / employees

BRAZIL
Sales of electricity (GWh)
Number of Customers
Energy losses
Number of employees
Customers / employees

CHILE
Sales of electricity (GWh)
Number of Customers
Energy losses
Number of employees
Customers / employees

COLOMBIA
Sales of electricity (GWh)
Number of Customers
Energy losses
Number of employees
Customers / employees

PERU
Sales of electricity (GWh)
Number of Customers
Energy losses
Number of employees
Customers / employees

TOTAL
Sales of electricity (GWh)
Number of Customers
Energy losses
Number of employees
Customers / employees

2008 (2)

2009 (2)

2010 (2)

2011 (2)

2012

2013

As of December 31 of each year

16,160
2,262,231
10.60%
2,590
873

16,689
5,308,306
16.40%
2,576
2,061

12,535
1,533,866
5.90%
717
2,139

11,822
2,284,855
8.10%
932
2,452

5,599
1,027,750
8.20%
571
1,800

16,026
2,305,060
10.50%
2,628
877

17,253
5,487,066
16.80%
2,533
2,166

12,585
1,579,069
6.10%
731
2,160

12,114
2,473,747
8.40%
1,017
2,432

5,716
1,060,508
8.10%
595
1,782

16,759
2,352,720
10.50%
2,627
896

18,777
5,665,195
16.80%
2,484
2,281

13,098
1,609,652
5.80%
719
2,239

12,515
2,546,559
8.50%
1,083
2,351

6,126
1,097,533
8.30%
553
1,985

17,233
2,388,605
10.50%
2,849
838

19,193
5,867,888
16.20%
2,496
2,351

13,697
1,637,977
5.50%
712
2,301

12,857
2,616,909
8.10%
1,101
2,377

6,572
1,144,034
8.20%
550
2,080

17,338
2,388,675
10.6%
2,948
810

20,694
6,050,522
16.30%
2,382
2,540

14,445
1,658,637
5.40%
734
2,260

13,364
2,712,987
7.50%
1,127
2,407

6,863
1,203,061
8.20%
607
1,982

18,137
2,444,013
10.80%
3,320
736

21,767
6,301,582
16.10%
2,370
2,659

15,152
1,693,947
5.30%
745
2,274

13,342
2,686,919
7.00%
1,036
2,594

7,045
1,254,624
7.90%
616
2,037

62,805
12,417,008
9.84%
7,386
1,865

63,694
12,905,450
9.98%
7,504
1,883

67,275
13,271,659
9.98%
7,466
1,950

69,552
13,655,413
9.70%
7,708
1,989

72,704
14,013,882
9.35%
7,798
2,000

75,443
14,381,085
9.42%
8,087
2,060

(1) IFRS accounting figures. Until 2008, the annual financial statements were prepared in accordance with accounting principles generally

accepted in Chile. Since 2009; the financial statements have been prepared in accordance with International Financial Reporting
Standards, also presenting the 2008 financial statements under this new accounting standard. Due to this change, companies of joint
control in which Enersis has participation, are consolidated according to the proportion Enersis represents of its social capital, therefore
the figures in 2008, 2009, 2010, 2011and 2012 include the percentage of power generation, energy sales and employees of these
companies.

(2) For 2008, 2009, 2010, 2011, and 2012 it is net profit attributable to parent company
(3) Total Liabilities/Equity plus Minority Interest.

MAIN FINANCIAL AND OPERATING INDICATORS

2013 ANNUAL REPORT ENERSIS17

Identification
of the
company and
documents of
incorporation

IDENTIFICATION OF THE COMPANY AND DOCUMENTS OF INCORPORATION

2013 ANNUAL REPORT ENERSISIdentification of the Company

Name

Address

Type of Company
Tax ID
Address
Telephone
Fax
P.O. Box
Web site
Email
Securities Registration number
External Auditors
Subscribed and paid-in capital (M$)
Ticker in Chilean stock exchanges
Ticker in New York stock exchange
Ticker in Madrid stock exchange
Custodial Bank ADR’s
Depositary Bank ADR’s
Latibex custodial bank
Latibex link
Domestic Risk Rating Agency
International Risk Rating Agency

Enersis S.A.
Santiago, although able to establish branches or agencies
in other parts of the country or abroad
Publicly traded company
94,271,000 – 3
Santa Rosa Nº 76, Santiago, Chile
(56-2) 2353 4400 - (56-2) 2378 4400
(56-2) 2378 4788
1557, Santiago
www.enersis.cl
informaciones@enersis.cl
Nº175
Ernst & Young
5,669,280,725
ENERSIS
ENI
XENI
Banco Santander Chile
Citibank N.A.
Banco Santander
Santander Central Hispano Investment S.A.
Feller Rate and Fitch Ratings
Fitch Ratings, Moody´s and Standard & Poor´s

Documents of
Incorporation

The company that gave rise to Enersis

S.A. was formed initially with the name

Compañía Chilena Metropolitana de

Distribucion Electrica S.A. by public

deed dated June 19, 1981 granted by

the notary Patricio Zaldívar Mackenna

in Santiago, and was modified by

public deed dated July 13 the same year

before the same notary. The company’s

incorporation was authorized and its

bylaws approved by Resolution 409-S

of July 17, 1981 of the Securities and

Insurance Commission (SVS). The extract

of the incorporation authorization and

approval of the bylaws was registered

in the Santiago Trade Registry on page

13,099 Nº7,269 for year 1981, and

Corporate Purpose

were published in the Official Gazette

The company’s objectives are to explore, develop, operate,

of July 23, 1981. The bylaws of Enersis

generate, distribute, transmit, transform and/or sell energy in

have since undergone a number of

any of its forms or nature, in the country or abroad, directly

modifications.

or through other companies, and also telecommunications

activities and the provision of engineering consultancy within

On August 1, 1988, the company’s

the country and abroad. It may also invest and manage its

name was changed to Enersis S.A. The

subsidiaries and associate companies, whether generators,

latest modification is that set out in

transmitters, distributors or traders of electricity or whose

public deed dated December 28, 2012,

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

certified by the Santiago notary Iván

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

Torrealba Acevedo, whose extract

material is energy, (iii) telecommunications and information

was registered in the Santiago Trade

technology, and (iv) trading over internet.

and published in the Official Gazette on

January 11, 2013.

IDENTIFICATION OF THE COMPANY AND DOCUMENTS OF INCORPORATION

2013 ANNUAL REPORT ENERSISIn complying with its main objects, the

company will carry out the following

functions: a) promote, organize, build,

modify, dissolve or liquidate companies

of any nature which have similar

corporate objects to its own; b) propose

investment, financing and business

policies to subsidiary companies, as

well as accounting criteria and systems

that these should follow; c) supervise

subsidiary management: d) provide

subsidiary or associate companies

In addition to its main objects and always acting within the limits established

with the necessary financing for their

by the Investment and Financing Policy approved by the shareholders meeting,

business development and provide

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

management services; financial,

administration, intermediation, trading and disposal of all kinds of movable and

technical, legal and auditing advice;

immovable assets, either directly or through subsidiaries or associate companies;

and in general any type of service

ii) all kinds of financial assets, including shares, bonds and debentures,

that appears necessary for their best

commercial paper and in general all kinds of titles or securities and company

performance.

contributions, either directly or through subsidiaries or associate companies.

Ownership and
control

OWNERSHIP AND CONTROL

2013 ANNUAL REPORT ENERSISOwnership structure

The company capital is divided into en 49,092,772,762 shares of no par value and of the

same sole series.

As of December 31, 2013, all shares were subscribed and paid, and distributed in the

following manner:

Shareholder
Endesa Latinoamérica S.A.
Endesa (España) S.A.
Pension funds
ADR´S (Citibank N,A, according to circular N°1,375 of the SVS)
Stock brokers, insurance companies, mutual funds
Foreign Investment Funds
Banco de Chile on behalf of third parties
Other shareholders
Total Shares

Number of shares
19,794,583,473
9,967,630,058
6,291,916,133
5,260,330,500
2,829,716,846
2,161,679,190
1,654,861,817
1,132,054,745
49,092,772,762

Participation
40.32%
20.30%
12.82%
10.72%
5.76%
4.40%
3.37%
2.31%
100.00%

Controllers

According to Chapter XV of Law 18,045, the direct controller of the Company is Endesa Latinoamérica S.A., a Spanish

corporation that holds 60.62% of Enersis.

Endesa Latinoamérica S.A., in turn is controlled 100% by ENDESA, S.A., a corporation located in the Kingdom of Spain

and whose main shareholders as of December 31, 2012, and according to the CNMV (Spanish National Securities Market

Commission) are: ENEL ENERGY EUROPE S.L. with a 92.063% shareholding (ENEL ENERGY EUROPE S.L) which in turn is

controlled 100% by ENEL S.p.A. The free float1 of ENDESA S.A. as of December 31, 2012 was 7.937%.

The twelve largest shareholders of the Company

As of December 31, 2013, Enersis had 7,200 shareholders. The twelve largest were:

Name
Endesa Latinoamérica S.A.
Endesa S.A. (Endesa Spain)
Citibank N.A. (according to circular N°1,375 of the SVS)
AFP Provida S.A.
Banco de Chile (on behalf of third parties)
AFP Habitat S.A.
AFP Capital S.A.
AFP Cuprum S.A.
Banco Itaú (on behalf of investorss)
Banco Santander (on behalf of foreign investors)
Bolsa Electrónica de Chile Bolsa de Valores
Banchile Corredores de Bolsa S.A.
Sub total 12 shareholders
Other 7,188 shareholders

TOTAL 7,200 SHAREHOLDERS

59,072,610-9
59,066,580-0
59,135,290-3
98,000,400-7
97,004,000-5
98,000,100-8
98,000,000-1
98,001,000-7
76,645,030-K
97,036,000-K
96,551,730-8
96,571,220-8

Number of shares
19,794,583,473
9,967,630,058
5,260,330,500
1,770,756,659
1,654,861,817
1,645,665,591
1,329,819,976
1,287,690,305
1,241,226,075
840,379,612
317,045,355
297,494,819
45,407,484,240
3,685,288,522

Participation
40.32%
20.30%
10.72%
3.61%
3.37%
3.35%
2.71%
2.62%
2.53%
1.71%
0.65%
0.61%
92.49%
7.51%

49,092,772,762

100%

Most important changes in ownership

The most important changes in the ownership of Enersis during 2013 were:

Name
Endesa S.A. (Endesa España)
Citibank N.A. (according to circular N°1,375 of SVS)
AFP Provida S.A.
Banco de Chile on behalf of non-resident third parties
AFP Habitat S.A.
AFP Capital S.A.
AFP Cuprum S.A.
Banco Itau on behalf of investors
Banco Santander on behalf of foreign investors
Bolsa Electrónica de Chile Bolsa de Valores
Banchile C. de B. S.A.
BTG Pactual Chile S.A. C. de B.
Larrain Vial S.A. Corredora de Bolsa
Bolsa de Comercio de Santiago Bolsa de Valores

ID
59,066,580 0
59,135,290 3
98,000,400 7
97,004,000 5
98,000,100 8
98,000,000 1
98,001,000 7
76,645,030 K
97,036,000 K
96,551,730 8
96,571,220 8
84,177,300 4
80,537,000 9
90,249,000 0

N° of shares as of
31/12/2012
0
3,694,698,650
1,304,042,640
977,171,885
1,122,471,041
911,634,819
930,517,958
642,734,035
482,166,494
153,599,086
288,428,936
123,245,391
155,098,236
157,245,378

N° of shares as of
31/12/2013
9,967,630,058
5,260,330,500
1,770,756,659
1,654,861,817
1,645,665,591
1,329,819,976
1,287,690,305
1,241,226,075
840,379,612
317,045,355
297,494,819
288,008,500
220,774,080
84,130,412

Change in number
of shares
9,967,630,058
1,565,631,850
466,714,019
677,689,932
523,194,550
418,185,157
357,172,347
598,492,040
358,213,118
163,446,269
9,065,883
164,763,109
65,675,844
-73,114,966

OWNERSHIP AND CONTROL

2013 ANNUAL REPORT ENERSIS

Stock Exchange transactions by related parties

Shareholder

TAX ID

Buyer/ Seller

Date of
transaction

Number of
Shares Traded

Unit price of
transaction
(Pesos)

Total transaction
amount (Pesos)

Purpose of the
Transaction

Inversiones Santa Veronica Ltda.

79,880,230-5

Comprador

11-04-2012

1,000,000

197.34

197,340,000 Financial Investment

Relation to the Company

Related to Hernán Somerville Senn Enersis
Director

Jean Paul Zalaquett

8,668,933-2

Vendedor

14-12-2012

Beatriz García Huidobro

6,981,877-3

Vendedor

15-01-2013

1,530

2,425

172.00

176.00

263,160 Financial Investment

Susteinability Director in Chilectra

426,800 Financial Investment

Related to Francisco Silva Bafalluy Enersis
Manager

Endesa, S.A.

Pablo Yrarrázaval Valdés

59,066,580-0

5,710,967-K

SVPE

21-03-2013

9,967,630,058

173.00 1,724,400,000,034 In kind contribution

Controller

25-03-2013

274,075

173.00

47,414,975 Financial Investment

Chairman of the Board of Directors

María Elena Yrarrázaval Valdés

5,710,932-7

SVPE

25-03-2013

274,075

173.00

47,414,975 Financial Investment

Related to Chairman of the Board of
Directors

Santana S.A.

90,856,000-0

Agrícola e Inversiones La Viña S.A. 88,462,100-3

SVPE

26-03-2013

2,407,457

1,249

173.00

416,490,061 Financial Investment

Related to Enersis Director L. Vial

216,077 Financial Investment

Related to Enersis Director L. Vial

Inversiones Marpel Ltda.

78,171,230-2

SVPE

26-03-2013

505,490

173.00

8,744,770 Financial Investment

Related to Chairman of the Board of
Directors

Rentas ST Ltda.

Leonidas Vial Echeverría

Marcos Cruz Sanhueza

76,256,627-3

5,719,922-9

SVPE

26-03-2013

10,000,000

26-03-2013

10,702,983-4

Comprador

30-05-2013

10,702,983-4

Comprador

05-06-2013

10,702,983-4

Comprador

17-06-2013

10,702,983-4

Comprador

24-06-2013

10,702,983-4

Vendedor

08-07-2013

10,702,983-4

Comprador

08-07-2013

10,702,983-4

Vendedor

03-01-2014

10,702,983-4

Comprador

03-01-2014

1,187

480,000

890,000

310,000

27,000

1,312,179

1,371,369

(*) First emission values subscription (SVPE for its spanish acronym)

173.00

167.26

167.91

160.73

148.00

157.00

161.59

158.00

162.08

1,730,000,000 Financial Investment

Related to Enersis Director L. Vial

205,351 Financial Investment

Enersis Director

80,283,200 Financial Investment

Tax Advisor

149,441,400 Financial Investment

Tax Advisor

49,824,900 Financial Investment

Tax Advisor

3,996,000 Financial Investment

Tax Advisor

206,012,103 Financial Investment

Tax Advisor

212,035,005 Financial Investment

Tax Advisor

216,676,302 Financial Investment

Tax Advisor

222,266,002 v

Tax Advisor

Summary of Director´s
Committee and
shareholders comments
and proposals

Enersis did not receive any comments or proposals on the

progress of the business during 2013 from the Directors

Committee or shareholders representing or holding 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 Corporations Law.

Main executives

MAIN EXECUTIVES

2013 ANNUAL REPORT ENERSISBoard of Directors

1. CHAIRMAN
Pablo Yrarrázaval Valdés
Chairman of the Santiago
Stock Exchange
Tax ID: 5,710,967-K
Since 26.07.2002

2. VICE CHAIRMAN
Borja Prado Eulate
Chairman of Endesa (Spain)
Law studies
Universidad Autónoma de Madrid
Passport: AAC809697
Since 16.04.2013

3. DIRECTOR
Andrea Brentan
Civil Mechanic Engineer
Politécnico di Milano
Máster en Ciencias Aplicadas
Universidad de Nueva York
Passport: YA0688158
Since 29.07.2009

4. DIRECTOR
Luigi Ferraris
Licensed in Economics and Commerce
Universidad de Génova
Passport: YA2600789
Since 16.04.13

5. DIRECTOR
Hernán Somerville Senn
Lawyer
Universidad de Chile
Máster of Comparative
Jurisprudence
Universidad de New York
Tax ID: 4,132,185-7
Since 29.07.1999

6. DIRECTOR
Leonidas Vial Echeverría
Vice Chairman of the Santiago
Stock Exchange
Tax ID: 5,719,922-9
Since 22.04.2010

7. DIRECTOR
Rafael Fernández Morandé
Civil Industrial Engineer
Pontificia Universidad Católica
de Chile
Tax ID: 6,429,250-1
Since 22.04.2010

SECRETARY TO BOARD OF
DIRECTORS
Domingo Valdés Prieto
Lawyer
Universidad de Chile and
Máster of Laws University of
Chicago
Tax ID: 6,973,465-0
Since 30.04.1999

Enersis is managed by a Board of Directors

formed by seven members, which remain

in office for a three-year period, who can

be re-elected. The Board of Directors was

elected in a Regular Shareholders’ Meeting

dated April 16, 2013.

Board of Directors’ and Directors’ Committee Fees

As per what is established in Article 33 of Law No. 18,046 on Closely-Held Stock Companies, the Regular Shareholders

Meeting held on April 16, 2013 agreed on the fee to be paid to the Board of Directors and Directors’ Committee for the 2013

accounting period.

The Board of Directors’ fee consists on the payment of an annual variable wage equal to one per thousand of the net profits

obtained in the accounting period. It was determined to pay as an advance one monthly fee, part at all events and a variable

part, attributable to the referred to annual variable wage.

The Directors’ Committee fee consists on an annual variable fee equal to one point eleven thousand seven-hundred and

sixty-five per thousand of the net profits achieved during the accounting period. It was determined to pay as an advance

one monthly fee, part at all events and a variable part, attributable to the referred to annual variable wage.

Total expenses due to fees during 2013 were of $409,854.602 and are detailed in the following table. The Board of Directors

did not incur in expenses for external consulting services.

2013

Amounts in Ch$
Name
Pablo Yrarrázaval
Borja Prado Eulate
Hernán Somerville
Leonidas Vial
Rafael Fernández
Andrea Brentan (2)
Luigi Ferraris (2)
Rafael Miranda(1)
Eugenio Tironi(1)
Total

Position
Chairman
Vice Chairman
Director
Director
Director
Director
Director
Director
Director

Fixed
remuneration
55,759,468
29,700,991
27,879,734
27,879,734
27,879,734
-

8,079,073
8,079,073
185,257,807

Ordinary and
extraordinary
sessions
54,563,615
22,822,191
25,758,205
22,718,701
27,281,808
-
-
10,559,674
12,067,014
175,771,207

Committee fixed
remuneration

10,489,405
10,489,405
10,489,405

31,468,215

Committee
Ordinary and
extraordinary
sessions
-
-
5,786,397
5,369,050
6,201,925
-
-
-
-
17,357,372

Variable
remuneration
-
-
-
-
-
-
-
-
-
-

TOTAL 2013
110,323,083
52,523,182
69,913,741
66,456,890
71,852,871
-

18,638,747
20,146,087
409,854,602

NOTES:
(1) Mr. Rafael Miranda and Mr. Eugenio Tironi, held the position of Directors of the Board until April 16, 2013
(2) Mr. Andrea Brentan and Mr. Luigi Ferraris waived their compensation as members of the Board of Directors of the Company.

2012

Amounts in Ch$
Name
Pablo Yrarrázaval
Andrea Brentan (1)
Hernán Somerville
Eugenio Tironi
Leonidas Vial
Rafael Fernández
Rafael Miranda
Total

Position
Chairman
Vice chairman
Director
Director
Director
Director
Director

Fixed
remuneration
54,838,518
-
27,419,259
27,419,259
27,419,259
27,419,259
27,419,259
191,934,812

Ordinary and
extraordinary
sessions
65,815,603
-
33,721,624
32,907,801
33,314,463
33,721,624
32,907,801
232,388,916

Committee
fixed
remuneration

10,316,157

10,316,157
10,316,157

30,948,470

Committee
Ordinary and
extraordinary
sessions
-
-
8,569,913
-
8,162,621
8,569,913
-
25,302,448

Variable
remuneration
12,323,000

7,607,000
6,161,000
7,607,000
7,607,000
6,161,000
47,466,000

TOTAL 2012
132,977,120
-
87,633,953
66,488,060
86,819,499
87,633,953
66,488,060
528,040,646

NOTE:
(1) Mr. Andrea Brentan waived his compensation as member of the Board of Directors of the Company.

MAIN EXECUTIVES

2013 ANNUAL REPORT ENERSIS

Property over Enersis

As of December 31, 2013, the shareholders’ register reflected that 0.002% of the

total company shares were on behalf of the Director Pablo Yrarrázaval. The rest of

the Directors did not have any ownership in the Company.

Directors’ Committee

In conformance with what is provided for in Article 50 bis of Law No. 18.046 on

Closely-Held Stock Companies, Enersis has a Directors’ Committee formed by

three members, who have the faculties and duties considered in the above Article

and the delegates appointed by the Board of Directors that are evident in the

Regulation on the Directors’ Committee.

In session dated April 16, 2013 the company Board of Directors appointed

as members of the Enersis Directors’ Committee Hernán Somerville Senn

(independent), Rafael Fernández Morandé (independent) and Leonidas Vial

Board of Directors
Consulting
Expenses

During 2013, the Board of Directors did

Echeverría (independent).

not make any expenses in consulting

services.

Similarly, the Directors’ Committee, in session dated April 29, 2013 appointed Mr.

Hernán Somerville Senn President and Domingo Valdés Prieto as its Secretary. In

the aforementioned session, the Board of Directors appointed Hernán Somerville

Senn as Financial Expert.

In reference to the structure of the 2012 Directors’ Committee, in session dated

April 23, 2010 the company Board of Directors appointed as members of the

Enersis Directors’ Committee, Mr. Hernán Somerville Senn (independent), Mr.

Rafael Fernández Morandé (independent) and Mr. Leonidas Vial Echeverría

(independent).

Similarly, the Directors’ Committee, in session dated on the same date appointed

Mr. Hernán Somerville Senn as President and Mr. Domingo Valdés Prieto as its

Secretary. In the aforementioned session, the Board of Directors appointed Mr.

Leonidas Vial Echeverría as Financial Expert. As of January 2012, the Directors’

Committee did not register any variations regarding the above structure.

Annual management report

a visit from the external auditors, Ernst & Young (E&Y), in

which they informed him regarding the review made by the

Public Company Accounting Oversight Board (PCAOB) of the

The Directors’ Committee President, Mr. Hernán Somerville

United States of America regarding the audit that E&Y had

Senn stated that according to what is established in

performed to the 20-F Enersis S.A. 2011 accounting period.

Article 50, bis of Law No. 18.046 on Closely-Held Stock

Regarding the matter, the external auditors informed the

Companies (LSA), it corresponds that the Enersis S.A.‘s

President and the Finance Manager, Mr. Eduardo Escaffi

Directors’ Committee present the Annual Report and gives

Johnson that the PCAOB had made three comments.

account to the company’s Regular Shareholders’ Meeting

Regarding the matter, the Directors’ Committee President

regarding its annual management report, underscoring

underscored that Enersis S.A., in turn, had requested reports

the activities developed by the Committee during the 2013

in law from Chadbourne & Parke y Carey y Cía. in order to

accounting period, as well as expenses that it has incurred

confirm that such objections do not affect the validity of the

upon, including those of its advisors, during such period.

2011 accounting period, 20-F, or would delay or would mean

The approval of the following text was proposed to the

a suspension of the Enersis capital increase operation. After

Committee for its approval:

a series of questions made to the Finances Manager, which

Directors’ Committee Annual
Management Report

were duly answered, on the risks associated to the topics

informed by Ernst & Young in the aforementioned meeting,

the Directors’ Committee requested that in the next session

this issue be treated to determine future actions to be taken.

As of January 1, 2013 the Enersis Directors’ Committee

In the second mission, held on January 30, 2013, the

was formed by Hernán Somerville Senn (independent),

Directors’ Committee analyzed the situation that had arisen

Leonidas Vial Echeverría (independent) and Rafael Fernández

due to the investigation that PCAOB opened against Ernst

Morandé (independent), being Hernán Somerville Senn its

& Young and, particularly, the implications it could have

President and Domingo Valdés Prieto its Secretary.

on the capital increase in process. Regarding the matter,

The Directors’ Committee has held 15 sessions during 2013,

under the US law and another legal opinion under the

including this session. If nothing is expressed in this report, it

Chilean law so that this Committee can form an opinion

is understood that the session is a regular one.

regarding the situation and adopt the courses of action

it was recalled that a legal opinion had been requested

that were deemed convenient. The Legal Counsel and

In its first extraordinary session, dated January 14,

Secretary of the Directors’ Committee, Domingo Valdés

2013, the Directors’ Committee with the favorable vote of

Prieto, gave a brief summary regarding the report in law

all its non-involved members, i.e., with the sole exclusion

issued dated January 20, 2013 by the New York legal offices

of Mr. Leonidas Vial Echeverría, who abstained his opinion

of Chadbourne & Parke and the report issued dated January

and voting, concluded that contracting Larraín Vial, for

17, 2013 by the legal offices of Carey y Cía. Such explanation

the operation between related parties, as a placement

was supplemented by the Finance Manager, Mr. Eduardo

agent, in the context of the capital increase agreed in the

Escaffi Johnson. The Directors’ Committee, unanimously

Extraordinary Shareholders’ Meeting dated December 20,

agreed to: 1. Verify that this situation is adequately revealed

2012 would contribute to the Enersis company interest and

by the Company to Davis Polk & Wardwell, legal advisors of

was according to the terms and conditions that prevailed in

the underwriting banks, and that this legal office should

the market at the time of its approval. Similarly, the Directors’

inform the underwriting banks; 2. Monitor the evolution of

Committee agreed to issue the respective report, to be

this situation in an on-going manner, requesting for such

placed at the Board of Directors’ availability, granting its

purpose that the Finance Manager continue informing this

President Mr. Hernán Somerville Senn faculties to do so.

Committee on the changes and news that are produced

due to the PCAOB investigation and the effects that Ernst &

Afterwards the Directors’ Committee President, Hernán

Young can identify regarding the matter; 3. That the Finance

Somerville Senn, informed the remaining members of such

Management collect from Ernst & Young all legal, financial

company Committee that the prior week he had received

and accounting expenses that turn out or could result from

the aforementioned situation.

MAIN EXECUTIVES

2013 ANNUAL REPORT ENERSISAfterwards, the Directors’ Committee, unanimously, and

not represent any change in the final figures of the previously

according to what is stated in Article 50 bis No. 1 of Law

approved Financial Statements. Such supplementary reports

No. 18.046 on Closely-Held Stock Companies, declared the

and their contents, as well as the rest of the documentation

Company Financial Statements as of December 31, 2012, their

is in conformance with the Enersis United States external

Notes, Income Statements and Relevant Facts, as examined

auditors and external attorneys’ opinions, Chadbourne and

as well as the Internal Auditors’ Reports and those of the

Parke and of the bank attorneys, Davis Polk & Wardwell.

Accounts Inspectors regarding the matter.

Similarly, the Directors’ Committee requested that the

In the same session, this entity unanimously agreed to leave

the referred to supplementary information to the 2011

evidence the Report on Money Brokers and Bank Drafts had

20-F accounting period that could be produced from the

been formally and expressly made known as prepared by the

local accounting point of view and, particularly, without it

Enersis S.A. External Auditors, Ernst & Young, dated January

demanding any type of analogue supplementary data of the

Finance Manager go on to analyze the consequences of

30, 2013.

local financial statements. In this same extraordinary session,

the Finance Manager, explained that, in conformance with

The Directors’ Committee, unanimously agreed to leave

was what requested in the last session by the Directors’

evidence that it had been formally and expressly recognized

Committee President, this situation had been presented to

knowing of the Enersis S.A. Internal Control Letter, dated

Davis Polk & Wardwell, United States legal consulting office

January 24, 2013 as prepared by the company external

of the underwriting banks contracted by Enersis S.A. to carry

auditors, Messrs. Ernst & Young.

out the capital increase in process, who agreed with the

report issued by Chadbourne & Parke.

In its third extraordinary session held on February 15,

2013, the Directors’ Committee, according to what is stated

In its fourth session, held on February 28, 2013, the

in Section 202 of the Sarbanes Oxley Act and in Article 242,

Directors’ Committee unanimously agreed to qualify as

final paragraph of Law No. 18,045 of the Securities Market,

reasonable the work of the company’s external auditors

the Directors’ Committee unanimously agreed to declare

carried out during the 2012 accounting period, with the

that the contracting of the services presented that the

previously explained preclusion relative to PCAOB’s open

external auditor can supply do not commit the technical

investigation against Ernst & Young and to represent such

correctness or the independence of opinion of the external

preclusion to Ernst & Young.

auditing companies and instructed the General Manager so

that part of the additional fees to be paid be negotiated as

The Directors’ Committee, unanimously agreed to propose

an advance on account of the Annual Audit, given that the

to the Board of Directors so that, in turn, it suggests to the

work requested is to accelerate a part of the audit.

Regular Shareholders’ Meeting the companies Feller Rate

In this same session, the Directors’ Committee, unanimously

de Riesgo Limitada as private national risk rating companies

agreed to approve the presentation of a supplement report

and the companies Fitch Ratings, Moody’s Investors Services

to the Enersis 20-F corresponding to the 2011 accounting

and Standard & Poor’s International Ratings Services as

period, which includes the changes described by the

private international risk rating companies of Enersis S.A. for

Clasificadora de Riesgo Limitada and Fitch Chile Clasificadora

Finance Manager, Mr. Eduardo Escaffi Johnson, in order to

the 2013 accounting period.

indispensable to carry out a securities offer in international

The Directors’ Committee, according to what is stated in

markets, consisting in that both the annual Financial

Section 202 of the Sarbanes Oxley Act, in Article 242, final

Statements (included in the 2011 20-F) as well as the 2012

paragraph, of Law 18.045 on the Securities Market and in

third quarter interim financial statements are drafted

the Regulation of the Directors’ Committee, unanimously

on comparable basis. Due to the above, it is necessary to

agreed, to declare that the contracting of services not related

supplement the 2011 20-F accounting period, including

to external audit to be provided by the external auditors,

the Effective Cash Flows Statement drafted with the direct

presented by Mr. Héctor Escobar Vargas, External Auditors’

method. Mr. Escaffi explained that these supplementary

Coordinator, do not commit the technical correctness or the

reports are merely formal and with a scarce relevance and do

external auditing companies’ independence of opinion.

The Directors’ Committee, unanimously, issued its opinion

the Securities and Exchange Commission of the United States

regarding each one of the claims filed through the Ethical

of America (SEC) to be included in such form. The Finance

Channel, delivering guidelines to be followed for each

Manager, Mr. Eduardo Escaffi Johnson stated that, in tune

one of them and confirming what was already resolved

with the alignments derived from the Sarbanes Oxley Act

by this entity, in that it would correspond to the Directors’

and in order to satisfy the IFRS demands, the drafting of such

Committee President to call to meet in an extraordinary

document has complied with the strict controls foreseen in

meeting of this body in case that a claim thus justifies in the

the respective procedure for their preparation, verification

opinion of the President of the Committee.

and backing of the information contained therein. To

that end, different areas of Enersis S.A. and of its affiliates

The Directors’ Committee President, Hernán Somerville Senn,

have participated in such process, all of them under the

expressed that in the last session of such company entity

coordination and supervision of the “Compliance Officer” Mr.

the Finance Manager, Eduardo Escaffi Johnson, has been

Nicolás Billikopf Encina, the Finance Management’s Assistant

requested to analyze jointly with the Accounting Manager,

Manager. Similarly, Eduardo Escaffi Johnson underscored

Ángel Chocarro García, eventual consequences, from the

that Form 20-F had been reviewed by the local and United

local accounting point of view, that could be generated by

States external auditors and by Enersis S.A.’s United States

the supplementary data provided on the 20-F corresponding

legal advisors, the legal offices of Chadbourne & Parke.

to the accounting period 2011 in order to submit the F-3 to

The Finance Manager, similarly explained that, according

the Securities and Exchange Commission of the United States

to Section 404 of the Sarbanes Oxley Act, it is required

of America (SEC) in relation to the current capital increase.

that the annual report of each issuing company include

a report on internal control that states management’s

The Directors’ Committee unanimously agreed that taking

responsibility in the implementation and maintenance of

into consideration the answer that Ernst & Young delivered to

an adequate structure and internal control procedures for

the Finance Manager, Eduardo Escaffi Johnson, it is resolved

the issuer’s financial reporting, as well as the assessment

not to re-forward the financial statements corresponding

on the effectiveness of the structure and internal control

to the 2011 accounting period, consequently resulting in a

procedures for financial reporting. The Ernst & Young, Rubén

unnecessary result to their exam by this Committee and the

associates López y Marek Borowski, gave a presentation

Board of Directors’ approval and the Shareholders’ Meeting.

regarding the effectiveness of the structure and internal

The Directors’ Committee, without detriment to the above

control procedures for the financial reporting of Enersis

also unanimously agreed that the Finance Manager obtain

S.A., as well as regarding Ernst & Young’s independence, in

the formalization of the answer that Ernst & Young already

their capacity as Enersis S.A.’s external auditors during the

provided that has been analyzed by the company entity.

2012 accounting period, stating that there were no material

deficiencies and that the Internal Control Procedures were

In the accounting period’s fifth session, held on March

in order. The director, Mr. Rafael Fernández Morandé asked

20, 2013, the Directors’ Committee unanimously agreed to

if any checking had been done regarding non-performing

approve the proposal of the Directors’ Committee Budget

debt in the distribution scope, to which Mr. Borowski

for the 2013 accounting period, according to which it will

answered affirmatively and that the exams performed

amount to 10,000 Unidades de Fomento for expenses

showed reasonable standards. The Committee members

and functioning of the Directors’ Committee and for its

were made knowledgeable, due to the above presentation,

advisors. Similarly, the members of the Directors’ Committee

that Ernst & Young had committed two violations against

unanimously resolved to submit the above Directors’

the PCAOB standards, different from the investigation

Committee budget proposal for the 2013 accounting period,

procedure informed in the session held on January 14, 2013,

to the Enersis S.A.’s Regular Shareholders’ Meeting, in order

which is why they asked that the Legal Counsel, Domingo

to have it definitely decide regarding the matter.

Valdés Prieto request an opinion from the United States legal

offices, Chadbourne & Parke regarding such violations and

In this session the issue of Form 20-F was analyzed taking

their consequences for the Enersis Group and if it generated

into consideration that Enersis S.A., in its issuing condition

any obligation to disclose or file a claim.

of the ADSs and bonds in the US market had to present such

Form, corresponding to the company’s financial statements

The Directors’ Committee President, Hernán Somerville

in IFRS, as well as the other related information demanded by

Senn, consulted the associates of Ernst & Young regarding

MAIN EXECUTIVES

2013 ANNUAL REPORT ENERSISthe investigation procedure that PCAOB opened against

for appointing the Enersis S.A. external audit company for

Ernst & Young that had been informed in January 2013.

2013: 1. Ernst & Young, 2. KPMG and 3. BDO Auditores &

The Ernst & Young associate, Mr. Rubén López, expressed

Consultores Ltda, taking into consideration that: (i) presented

that they had legal opinions from Chile and the United

the most competitive proposal according to the technical and

States that indicated that the investigation lacked basis. The

economic evaluations verified on the proposals received; (ii)

director Rafael Fernández Morandé, expressed that if Ernst

that it has ample experience in the electric sector; (iii) it is one

& Young received relevant information it had to share it with

of the four most important audit firms internationally and

Enersis S.A. The Directors’ Committee, after some additional

nationally, (iv) changing the company would have a cost of

questions to the Finance Manager, Mr. Eduardo Escaffi

approximately $52 million in reference to the second option

Johnson, and to the external auditor, Mr. Marek Borowski

and (v) it is the auditing company with the greatest synergy

and an exchange of opinions among them regarding the

level for Enersis S.A., since Enersis’ matrix and controlling

matter, unanimously agreed to approve Form 20-F and thus

companies have Ernst & Young as their main External

authorize its being filed before the Securities and Exchange

Auditor. It was informed that Ernst & Young have been

Commission of the United States of America (SEC), in order

Enersis S.A.’s External Auditor since the 2011 accounting

to comply with the standards and requirements derived from

period, i.e., from two years ago. Similarly, the Committee

such public authority related to the issue of securities in such

proposed as second alternative to hold the position as the

country.

company’s external auditor, the audit company KPMG, taking

into consideration that it is one of the four most important

Similarly, the Directors’ Committee unanimously agreed

companies internationally and nationally and because it

to approve the aforementioned payments corresponding

has presented a more attractive economic offer than BDO

to the fees paid by the companies of the Enersis Group

Auditores & Consultores Ltda. Company that is proposed to

during the 2012 accounting period, to the different external

be the third alternative.

audit companies that it uses as well as authorizing the fees

estimate proposed for the 2013 accounting period. However,

In its sixth session of the accounting period, held on

the Directors’ Committee observed that it is indispensable

April 29, 2013, the appointment of the President and the

to recover from the external auditors costs associated to the

Secretary of the Directors’ Committee was carried out. The

errors committed on presenting these services, reiterating

Director Mr. Leonidas Vial Echeverría proposed Hernán

such fact to the Finance Manager, so that he may proceed as

Somerville Senn as President and Domingo Valdés Prieto

instructed.

as Secretary of the Directors’ Committee. The director,

Mr. Rafael Fernández Morandé, abstained regarding such

According to what is established in Article 50 bis of Law

proposals, stating that he did not agree on appointing as

No. 18,046 and the Official Writs No. 718/2012 and No.

President an involved director according to what is provided

764/2012 from the Superintendence of Securities and

by the Closely-Held Stock Companies Law in Article 147 No.

Insurance, the Enersis S.A.’s Directors’ Committee must

2 of Title XVI. The Directors’ Committee, by the majority of

propose the appointment of an external auditors company

its members, with the abstention of the Director Mr. Rafael

to the company Board of Directors so that it may suggest

Fernández Morandé, chose Mr. Hernán Somerville Senn as

a determined company of External Auditors to the Enersis

Directors’ Committee President and Mr. Domingo Valdés

Regular Shareholders’ Meeting for the 2013 accounting

Prieto as Secretary.

period.

On examining the Enersis Consolidated Financial Statements,

The General Manager, Ignacio Antoñanzas Alvear went on

the Directors’ Committee, upon request of the Director Mr.

to inform the members of the aforementioned Committee

Rafael Fernández Morandé asked the Accounting Manager

on the different options of the external audit companies that

regarding if the external auditors have issued a certificate

had been considered, so that the Board of Directors can go

regarding the provisions made regarding the Enersis Group

on to determine their priority that will be proposed to the

litigations, to which he stated that at that time it had not

Regular Shareholders’ Meeting

been issued, but that he expected that for the next financial

statements it could be available and that it would thereafter

The Directors’ Committee unanimously agreed to propose

be done quarterly. The Directors’ Committee, unanimously,

to the Board of Directors the following priority ranking

declared to have examined the Enersis S.A.’s Consolidated

Financial Statements as of March 31, 2013, its Notes, Income

and approved by the company instances of Enersis S.A.,

Statements and Relevant Facts, as well as the special opinion

contract that must be complied with and that is precisely

issued by Ernst & Young regarding the note on balances and

what is being examined in this session. He expressed that

transactions with related parties. Similarly, the Directors’

the determination and payment of the “fee” by Enersis S.A.

Committee unanimously resolved insisting in that Ernst

to Larraín Vial constituted an operation between related

& Young provide now and in every quarter the certificate

parties, since the Director Mr. Leonidas Vial Echeverría is, in

relative to the provisions made due to the Enersis Group

addition to Enersis S.A. director and member of the Directors’

litigations.

Committee of the latter, as well as President and associate

of that financial entity. Consequently, it deals with a matter

The Directors’ Committee, after an exchange of opinion

that must be examined and informed by the Directors’

regarding the matter, unanimously agreed to approve the

Committee. The Finance Manager, Mr. Eduardo Escaffi

new calendar of the Committee’s regular sessions for the

Johnson, regarding the matter presented the payment

2013 accounting period proposed above, without detriment

proposal referred to above, indicating that the discretional

to the fact that such entity can resolve, according to what is

“fee”, in his opinion, it corresponded to pay to each one

deemed relevant, to call on extraordinary sessions.

of the consulting banks in relation to the functions they

performed in the referred to operation.

The Directors’ Committee President, Hernán Somerville Senn,

stated that to the members of the Committee that during

The Directors’ Committee, on analyzing the background

the last session held he had requested that the company

information that the Finance Manager presented, with the

Legal Counsel, Domingo Valdés Prieto, obtain a legal opinion

exclusion of Mr. Leonidas Vial Echeverría, who abstained from

from the United States legal offices of Chadbourne &

intervening in the corresponding exam, concluded that that

Parke regarding the two violations that Ernst & Young had

operation contributed to the Enersis company interest and

committed against the PCAOB norms, their consequences

that it was according to terms and conditions that prevailed

for Enersis and, particularly, if such situation generated any

in the market at the time of its approval. Consequently, the

objection regarding the company disclosure or claim.

Enersis S.A.’s Directors’ Committee, resolved to issue the

corresponding report. The Directors’ Committee, with the

Regarding the matter, the company Legal Counsel,

favorable vote of all its non-involved members, i.e. with the

Domingo Valdés Prieto, informed that it had requested the

sole exclusion of Mr. Leonidas Vial Echeverría, who abstained

legal opinion of Chadbourne & Parke, copy of which was

from intervening in the corresponding exam and in the

distributed to the members of the Directors’ Committee.

issue of the respective report, concluded that the proposed

Such legal opinion concludes that no actions are required

discretional “fee” that the Finance Manager made, to be

by Enersis S.A. regarding the violations committed by Ernst

payable by Enersis S.A. to the investment bank Larraín Vial as

& Young in relation to the PCAOB standards and that,

underwriting agent in the capital increase operation agreed

from the United States legislation point of view, there is

in the Extraordinary Shareholders’ Meeting dated December

no responsibility or of the Directors’ Committee or of the

20, 2012, contributed to the Enersis company interest and

company in relation to this matter.

was according to terms and conditions that prevailed in the

market at the time of its approval.

The Directors’ Committee noted the legal opinion of the

United States legal offices of Chadbourne & Parke regarding

In its last session of the accounting period, held on May

the matter.

29, 2013, the Directors’ Committee, with the favorable vote

of all its members, concluded that the merger by absorption

The Directors’ Committee President, Mr. Hernán Somerville,

by Inversiones Sudamérica from Conosur Ltda. and the later

explained to the members of the Directors’ Committee that,

improper merger of Inversiones Sudamérica, under the terms

they needed to examine a payment proposal of a discretional

described, contributed to the Enersis company interest and

“fee” for the consulting banks in the operation of the capital

was according to the terms and conditions that prevailed in

increase approved by Extraordinary Shareholders’ Meeting

the market at the time of its approval; that, in the terms and

dated December 20, 2012. He observed that the payment of

within the parameters considered in the agreement, issued

this “fee” to the agents is directly related to the contract that

the report prescribed by legislation regarding operations

was signed with each one of them and that was examined

between related companies.

MAIN EXECUTIVES

2013 ANNUAL REPORT ENERSISThe Directors’ Committee, according to what is stated in

September 30, 2013 and thus successively in every quarter

Section 202 of the Sarbanes Oxley Act and in Article 242,

where the Financial Statements are discussed. The Directors’

final paragraph, of Law 18.045 on the Securities Market,

Committee unanimously agreed to approve the external audit

unanimously agreed, to declare that the contracting of

plan presented by Messrs. Rubén López and Marek Borowski,

services not related with external audits to be supplied by

associates of Ernst & Young,

external auditors, did not commit the technical correctness

or the independence of opinion of the external auditing

On Julio 31, 2013 the tenth extraordinary session of

companies.

the accounting period was held, in which the Directors’

Committee unanimously agreed to declare as examined the

The Director, Mr. Rafael Fernández Morandé, reiterated his

self-assessment structures and procedures and internal audit

request that the external auditors present in a quarterly

review regarding Enersis S.A. internal control.

manner their letter of opinion regarding their review of

provisions due to litigation, to which the remaining members

The Directors’ Committee unanimously issued its opinion

of the Committee also agreed to request it.

regarding each one of the claims filed through the Ethics

Channel, providing guidelines to be followed for each one

On June 17, 2013 the eight session of the Directors’

of them and confirming what has already been resolved by

Committee was held, according to what is stated in Section

this entity, in that it would correspond that the Directors’

202 of the Sarbanes Oxley Act, in Article 242, final paragraph,

Committee President to determine the correctness of calling

of Law 18.045 on the Securities Market and the Regulation

an extraordinary session of this entity in case that a claim

of the Directors’ Committee, unanimously agreed, to declare

files thus justifies so, in the opinion of the President of the

that the contracting of services not related to external

Committee. In relation to the claim filed by the Internal

audits to be supplied by external auditors do not commit

Audit Manager, Mr. Alain Rosolino, regarding a constructing

the technical correctness or independence of opinion of the

company, the Directors’ Committee requested that the

external auditing companies.

background information corresponding to an external

attorney be requested, who is a specialist in criminal matters

The Director Rafael Fernández Morandé requested that, in

to the determine the action course to be followed by the

the next session of the Directors’ Committee, a presentation

Enersis S.A.’s Directors’ Committee and, similarly, agreed that

be given detailing the 2013 objectives and the 2012 Bonuses,

the Enersis General Manager address a letter to the Endesa

for each one of the main executives reporting to the General

Chile General Manager representing his concern regarding

Manager, which is part of examining the remunerations

what happened.

system and the compensation plan of the Group’s executives

and workers.

The Directors’ Committee President, Mr. Hernán Somerville

Senn, explained the members of the Directors’ Committee

In its ninth session of the accounting period, held on July 24,

that it corresponded, according to what is prescribed by

2013, the Directors’ Committee, unanimously, and according

Article 50 bis of Law No. 18.046, the exam of wage systems

to what is stated in Article 50 bis No. 1 of Law No. 18.046

and compensation plans for managers, main executives

on Closely-Held Stock Companies, declared the Enersis S.A.

and the company workers. The Human Resources Manager,

Consolidated Financial Statements examined as of June 30, 2013,

Mr. Carlos Niño Forero, gave a presentation regarding

with the provisions that are indicated, their Notes, Reasoned

the topic explaining market references and the existing

Analysis, Income Statements, Relevant Facts and the opinion of

remunerations structure. The Director Rafael Fernández

the External Auditors issued “an unqualified opinion” dated July

Morandé asked different questions regarding the

24, 2013 signed by Mr. Rubén López, associate of Ernst & Young,

bonuses associated to variables wages of executives and

expressing their conformity with the statements. Similarly, the

professionals, specifically regarding the 2013 accounting

Directors’ Committee resolved to remind López y Borowski,

period objectives referred to in the Enersis S.A. capital

Ernst & Young associates, on their prior request consisting on

increase. The Human Resources Manager answered that the

counting with a report from the external auditors in the October

aforementioned capital increase was not reflected in the

session where they review the provisions related with Derivatives

objectives and, therefore, neither was the variable of the

and Litigation in relation with the financial statements as of

executives that participated in such operation. The members

of the Directors’ Committee expressed the need that Enersis

S.A.’s main operation in at least the last ten years and one

company entity, a confirmation of the responsibilities that

of the most relevant performed in the Chilean securities

Enersis takes on regarding Endesa Chile in relation to the

market and, extraordinarily, had to be expressed in the

supply contract for internal audit services between Enersis

variable wages of those who participated in the operation.

and Endesa Chile that had been effectively subscribed, that

The members of the Directors’ Committee observed that

it was duly complied and that the same had been entered

taking into consideration the effort made by the team that

into in market conditions. The remaining members of the

had participated in such successful operation it proceeded

Directors’ Committee agreed with such request.

to award this extraordinary work, for which it corresponded

to make a clear and precise recommendation to the Board

The eleventh session of the accounting period was held

of Directors so that, before the end of the current year, an

on August 30, 2013. The Directors’ Committee, according

extraordinary bonus be established that would constitute

to what is stated in Section 202 of the Sarbanes Oxley Act, in

a compensation according to the effort made starting from

Article 242, final paragraph, of Law 18,045 on the Securities

the Enersis S.A.’s Extraordinary Shareholders’ Meeting

Market and in the Regulation of the Directors’ Committee,

that was held on December 20, 2012 that approved the

unanimously agreed to declare that the contracting of the

aforementioned capital increase.

services not related to the external audit to be supplied by

external auditors do not commit the technical correctness or

Afterwards the Director Rafael Fernández Morandé asked

independence of opinion of the external auditing companies.

the Human Resources regarding if an objective had been

established regarding the use of funds that would be

The General Manager, Ignacio Antoñanzas Alvear, in

developed during the 2013 accounting period, to which he

conformance with what is requested by the Directors’

answered negatively. Rafael Fernández Morandé expressed

Committee in the prior session gave account of the approval

that in his opinion, it was fundamental that the operations

procedure that, in its day, had been followed in the internal

corresponding to the uses of funds be among the objectives

audit services supply contract entered into Enersis S.A. and

of the company executives corresponding to 2013 that would

its affiliate Endesa Chile.

develop the corresponding investments, prior to the Board of

Directors authorization.

Upon request of the Director Mr. Rafael Fernández Morandé,

the Directors’ Committee, unanimously agreed to request

The Directors’ Committee President proposed that this last

confirmation to the affiliate Endesa Chile that the Board of

mentioned topic be analyzed in greater detail during the

Directors of the last mentioned consider, among its corporate

next regular session foreseen for August 30, 2013.

practices, a periodic presentation to the Internal Audit

Management that heads the unit that provides the internal

The Directors’ Committee unanimously declared to have

audit services to such affiliate, thus as the aforementioned

examined the wages systems and compensation plans

manager thus communicates to the Committee and to the

of managers, main executives and company workers.

Enersis S.A.’s Board of Directors in a future session, certifying

Similarly, the Directors’ Committee, unanimously agreed

the periodicity of such meetings.

to recommend to the Enersis S.A.’s Board of Directors

that, before the end of the current year, to establish and

The Directors’ Committee President, Hernán Somerville Senn,

distribute an extraordinary bonus that would be a special

expressed that it would be discussed in the coming Board

compensation for the company members participating in

of Directors to be held after an operation between related

the capital increase that is proportional to the effort made

parties consisting in an intercompany loan to be granted by

starting from the Enersis S.A.’s Extraordinary Shareholders’

Enersis S.A. to its affiliate Endesa Chile and that although

Meeting that was held on December 20, 2012, that approved

the same was comprised in the company effective Regularity

the aforementioned capital increase and that allowed

Policy, proposed to treat it voluntarily and with greater

carrying out in such a successful manner the complex Enersis

transparency in the forum of this Committee, which was

S.A.’s capital increase.

unanimously approved by the members present.

The Directors’ Committee President, Hernán Somerville Senn

The company General Manager, Mr. Ignacio Antoñanzas

expressed to the General Manager, Ignacio Antoñanzas

Alvear, informed that the operation proposed consists on

Alvear that he requested that for the next session of such

structuring an intercompany loan in Chilean Pesos between

MAIN EXECUTIVES

2013 ANNUAL REPORT ENERSISEnersis S.A. and Endesa Chile, so that the first can grant the

that from the point of view of the affiliate Endesa Chile this

second a loan for up to 250 MMUSD, within a 6 month time

is convenient, since such affiliate is taking a “forward” for

period.

covering its flows, which is why he asked that this topic be

treated due to the financial report. The Finance Manager,

Regarding the matter, the General Manager stated that,

Eduardo Escaffi Johnson, adding to the above nodded

taking into consideration to the high cash flow levels that

and expressed that the affiliate Endesa Chile would not be

Enersis S.A. has after the capital increase, it had been

getting a loan that is more expensive or cheaper that the one

commercially estimated as attractive for the company to

it could get in the market and that, therefore, it is in market

formalize a structured loan with its affiliate Endesa Chile,

conditions and that quotes had been asked regarding the

which would allow diversifying in an adequate manner its

matter.

short-term loan portfolio, improving the profitability that it

currently receives, at a six-month rate of around 5.0% to 5.1%

The Director Rafael Fernández Morandé asked if taking

approximately.

into consideration that the loan deals with funds collected

through capital increase if it contravened any standard or

For Endesa Chile in turn, it was convenient to decide for this

commitment related with the use of capital increase funds,

financing alternative since this year its Yankee Bond matures

to which the Finance Manager assured that there was no

for approximately 400 MMUS$ and according to what is

such contravention. He explained that the handling of the

explained it deals with market conditions.

treasury, since it was not an investment, required to be made

on the short and mid-term and that it should not affect the

Mr. Ignacio Antoñanzas Alvear similarly stated that the

net profit of Enersis S.A.’s shareholders, which in the Finance

operations proposed constituted operations between related

Manager’s opinion, the loan absolutely complied.

companies, since Endesa Chile is an affiliate of Enersis S.A.

He also observed that it also corresponds that the company

The General Manager observed that this loan was short-term

Board of Directors give its opinion regarding this matter,

and considered a pre-payment clause without cost.

which is under the framework of the regularity policy that

the Board of Directors approved.

After an exchange of opinions among the directors and

once all the background information on the operation was

The Director Hernán Somerville Senn asked what the

analyzed, the Directors’ Committee, concluded that the

regularity policy stated regarding the matter, to which

operation proposed contributes to Enersis S.A.’s company

the company Legal Counsel and Secretary of the Board

interest and is according to the terms and conditions of those

of Directors, Domingo Valdés Prieto, read the effective

that prevail in the market at the time of approval, going on to

policy approved in April 2010 unanimously by the Board of

issue the corresponding report.

Directors and that it was communicated in a timely manner

to the Superintendence of Securities and Insurance, Stock

The Directors’ Committee unanimously agreed to the

Exchanges and the market in general, through an essential

following:

fact. Similarly, the company Legal Counsel and Secretary

of the Board of Directors informed that granting loans to

a) Declare the operation between related companies

affiliates and related companies was part of Enersis S.A.’s

consisting on structuring an inter-company loan that

company objective. Then, the Director Hernán Somerville

Enersis S.A. will grant in favor of its affiliate Endesa Chile

Senn, asked if this policy had legal grounds, to which the

is examined, under the terms expressed by the General

company Legal Counsel and Secretary of the Board of

Manager.

Directors answered, that it corresponded to the Board of

Directors to determine the general regularity policies in

b) Declare that this operation constitutes an operation

conformance with the Closely-Held Stock Companies Law.

between related companies that is governed by Title

Sixteen of the Closely-Held Companies Law, which

Afterwards, the Director Hernán Somerville Senn asked

contributes to Enersis S.A.’s company interest and that is

the loan was being given in Chilean pesos, at six-months,

according to the price, terms and conditions of those loans

considering that the Peso would continue to deteriorate in

that currently prevail in the market.

reference to the US Dollar. Hernán Somerville Senn observed

c) Declare that this operation is comprised within the

was comprised in the effective company Regularity Policy, he

company’s regularity policy and that, notwithstanding the

proposed to treat it voluntarily and for greater transparency

above, this Committee resolves to voluntarily analyze it in

in the forum of this Committee, which was unanimously

order to have greater transparency.

approved by the members present.

The Directors’ Committee unanimously resolved to

The company General Manager, Mr. Ignacio Antoñanzas

incorporate in 2013, among the personal objectives of the

Alvear, informed that the operation proposed consists on

company’s management team, one that refers to the funds

structuring an intercompany loan in Chilean Pesos between

collected due to the capital increase approved in December

Enersis S.A. and Endesa Chile, so that the first one can grant

2012. The Committee agreed with such purpose that, in the

the second one a loan for up to 400 MMUS$, within a six-

next session of the Committee, the General Manager make

month time period.

a proposal regarding personal objectives under the terms

requested by such company entity.

Regarding the matter, the General Manager stated that,

taking into consideration the financial needs that its affiliate

In the twelfth session of the accounting period held on

Endesa Chile has and the high cash flow levels that Enersis

September 26, 2013, it was unanimously agreed by the

S.A. has after the capital increase, it had been commercially

members of the Committee attending the session, upon the

estimated as attractive for the company to formalize a

absence of the President of such company entity, Mr. Hernán

structured loan with its affiliate Endesa Chile, which would

Somerville Senn to appoint Mr. Leonidas Vial Echeverría as Ad-

allow diversifying in an adequate manner its short-term loan

Hoc President of the session.

portfolio, improving the profitability that it currently receives,

at a six-month rate of around 5.0% to 5.1% approximately.

The Directors’ Committee, according to what is stated in

Section 202 of the Sarbanes Oxley Act, in Article 242, final

Mr. Ignacio Antoñanzas Alvear similarly stated that the

paragraph, of Law 18.045 on the Securities Market and in

operations proposed constitute operations between related

the Regulation of the Directors’ Committee, unanimously

parties, since Endesa Chile is an affiliate of Enersis S.A. He also

agreed to declare that the contracting of services not related

observed that it corresponded that the company Board of

to external audit to be provided by the external auditors, do

Directors give its opinion regarding this matter that is under

not commit the technical correctness or external auditing

the framework of the regularity policy that the Board of

companies’ independence of opinion. In terms of one of

Directors approved.

the services proposed, i.e., the review of the information

regarding legal contingencies in Latin America, the Directors’

The Director Rafael Fernández Morandé asked if taking

Committee resolved not to approve it, since it considers that it

into consideration that the loan deals with funds collected

is excessively expensive and went on to grant faculties to the

through capital increase if it contravened any standard or

Finance Manager, Mr. Eduardo Escaffi Johnson, to negotiate

commitment related with the use of capital increase funds. He

both the price as well as the object of the matter entrusted.

explained that the handling of the treasury, since it was not an

The Director Rafael Fernández Morandé expressed that it

investment, required to be made on the short and mid-term

should be verified that the amounts in the notes adequately

and that it should not affect the net profit of Enersis S.A.’s

reflect associated risks and in such respect he considered that

shareholders, which in the Finance Manager’s opinion, the

the notes and not only the provisions should also be reviewed.

loan absolutely complied.

The Directors’ Committee resolved that in the next session, the

Finance Manager will give an account of the progress status of

The “Ad – Hoc” President, Mr. Leonidas Vial Echeverría,

the negotiations entrusted.

requested that the Finance Manager analyze in detail the

taxing effects of these structured loans and particularly the

The “Ad – Hoc” Directors’ Committee President, Leonidas Vial

applicability of the seals and stamps tax, to which Eduardo

Echeverría, expressed that in the Board of Directors session to

Escaffi Johnson expressed that it would proceed to go in

be held afterwards on that day, an operation between related

depth regarding the analysis already prepared and that he

parties consisting on a structured loan to be granted by Enersis

would inform in the next Committee.

S.A. to its affiliate Endesa Chile and that although the same

MAIN EXECUTIVES

2013 ANNUAL REPORT ENERSISThe General Manager observed that this was a short-term loan

support and extended the congratulations to all company

and considered a prepayment clause without costs and that

managements and their teams, since he only had the honor

the funds were available for Enersis S.A. at any time.

of directing them.

The Directors’ Committee concluded that the operation

According to what is stated in Section 202 of the Sarbanes

proposed contributes to the company interest of Enersis S.A.

Oxley Act, in Article 242, final paragraph, of Law 18.045 on

and that it is according to the terms and conditions of those

the Securities Market and in the Regulation of the Directors’

that prevail in the market at the time of approval, proceeding

Committee, the Directors’ Committee unanimously agreed

to issue the corresponding report.

to declare that the contracting of services not related to

The Directors’ Committee unanimously agreed the following:

not commit the technical correctness or respective external

external audit to be provided by the external auditors, do

auditing companies’ independence of opinion.

a) Declare the operation between related companies

consisting on structuring an inter-company loan that

The Directors’ Committee, unanimously, declared the

Enersis S.A. will grant in favor of its affiliate Endesa Chile

Enersis S.A. Consolidated Financial Statements examined al

is examined, under the terms expressed by the General

September 30, 2013, their Notes, Reasoned Analysis, Income

Manager.

Statements, and Relevant Facts, as well as the special opinion

b) Declare that this operation constitutes an operation

issued by Ernst & Young regarding the note on balances and

between related companies that is governed by Title

transactions with related parties.

Sixteen of the Closely-Held Companies Law, which

contributes to Enersis S.A.’s company interest and that is

The fourteenth session was held on November 26, 2013,

according to the price, terms and conditions of those loans

in which it was agreed to leave evidence that the Internal

that currently prevail in the market.

Control Letter was examined and that formal and express

c) Declare that this operation is comprised within the

knowledge was taken of the Internal Control Letter referred

company’s regularity policy and that, notwithstanding the

to Enersis S.A., dated November 8, 2013, prepared by the

above, this Committee resolves to voluntarily analyze it in

company external auditors, Ernst & Young. The Directors’

order to have greater transparency.

Committee President, Hernán Somerville Senn, and the

The Directors’ Committee unanimously expressed that

clarifications in the drafting of the letter referred to, which

according to what was requested in due time in relation to

were accepted, and the associated of such company Mr.

the internal audit services contract that Enersis provides to

Marek Borowski committed to send a text with the changes

Director Rafael Fernández Morandé requested different

Endesa Chile, a letter issued by the company Legal Counsel

requested as briefly as possible.

and Secretary of the Board of Directors of Endesa Chile, Carlos

Martín Vergara, had been delivered through which he certified

In addition, and according to what the Enersis S.A.’s Board of

the corporate practice of the affiliate Endesa Chile regarding

Directors resolved, in conformance with the General nature

the matter.

Standard No. 341 from the Superintendence of Securities

and Insurance, the External Auditors, represented by the

In the thirteenth session held on October 30, 2003, the

associate of such company, Mr. Marek Borowski presented

Directors’ Committee President, Mr. Hernán Somerville Senn,

regarding the following matters, the Directors’ Committee

went on to congratulate Mr. Ignacio Antoñanzas Alvear,

becoming familiar with the same:

company General Manager, for having received the award

as International CEO of the Year that is awarded by the

i. Eventual differences detected in the audit regarding

Latin Trade Group of the United States of America. The rest

accounting practices, administrative systems and internal

of the members of the Directors’ Committee took on the

audit.

words from the President and expressed their satisfaction

on the deserved distinction. The General Manager, Ignacio

Antoñanzas Alvear, thanked the Directors’ Committee on its

ii. Eventual serious differences that were detected and

Lastly, the regular sessions’ calendar was approved for 2014.

those irregular situations that due to their nature must be

communicated to competent supervising organizations.

In conclusion, during the 2013 accounting period, the Enersis

iii. Results from the annual external audit program.

the matters that are specified in Article 50 bis of Law 18,046

iv. Possible conflicts of interest that there could be regarding

contributed to the best development of the operations

the relation with an external company or its personnel,

previously analyzed.

on Closely-Held Stock Companies and has analyzed and

S.A.’s Directors’ Committee has fully been concerned with

both due to the supply of other services to the company or

companies from their entrepreneurial group, as well as de to

other situations.

The Committee President, Mr. Hernán Somerville Senn,

and the Director Rafael Fernández Morandé asked

several questions to Mr. Borowski and requested certain

clarifications on the presentation made, which were

accepted.

The Directors’ Committee during the
2013 accounting period, examined the
following Operations Between Related
Parties (OPR, Operaciones Entre Partes
Relacionadas)

1.- In its first extraordinary session dated January 14,

2013, the Directors’ Committee with the favorable vote of

The Director Rafael Fernández Morandé asked if the

all its non-involved members, i.e., with the sole exclusion

presentation of January that accounts for the closing of the

of Mr. Leonidas Vial Echeverría, who abstained from giving

2013 accounting period by the external auditors considered

his opinion and voting concluded that the contracting

the note on litigations and derivatives that had been

of Larraín Vial, operation between related companies, as

requested several times, to which Mr. Borowski responded

an underwriting agent, within the context of the capital

affirmatively.

increase agreed in the Extraordinary Shareholders’ Meeting

dated December 20, 2012, contributed to the Enersis

Lastly, it was unanimously agreed to examine the

company interest and was according to the terms and

Committee’s regular sessions’ calendar proposed and provide

conditions to those that prevail in the market at the time of

their observations before the next regular session.

its approval. Similarly, the Directors’ Committee issued the

respective report, to be placed at the Board of Directors’

In the fifteenth session of the accounting period held

availability.

on December 17, 2013 the Annual Management Report,

Activities and Expenses of the Directors’ Committee were

2.- In its sixteenth session of the accounting period,

approved.

held on April 29, 2013, the Directors’ Committee, with the

favorable vote of all its non-involved members, i.e., with the

The Directors’ Committee, according to what is stated in

sole exclusion of Mr. Leonidas Vial Echeverría, who abstained

Section 202 of the Sarbanes Oxley Act, in Article 242, final

from intervening in the corresponding exam and from

paragraph of Law 18.045 on the Securities Market and in the

voting, concluded that the proposed discretional “fee” to be

Regulation of the Directors’ Committee, unanimously agreed

paid by Enersis S.A. to the investment bank Larraín Vial as the

to declare that the contracting of services not related to

underwriting agent in the capital increase operation agreed

external audit to be provided by the external auditors, do not

in the Extraordinary Shareholders’ Meeting dated December

commit the technical correctness or the respective external

20, 2012, contributed to the Enersis company interest and

auditing companies’ independence of opinion.

was according to the terms and conditions as those that

MAIN EXECUTIVES

2013 ANNUAL REPORT ENERSISprevail in the market at the time of its approval. Similarly,

Chilean Pesos between Enersis S.A. and Endesa Chile, so that

the Directors’ Committee issued the respective report, to be

the first can grant the second a loan for up to 400 MMUSD,

placed at the Board of Directors’ availability.

within a 6 month time period. The Directors’ Committee

concluded that the operation proposed contributes to Enersis

3.- In its seventh session of the accounting period held on

S.A.’s company interest and is according to the terms and

May 29, 2013, the Directors’ Committee, with the favorable

conditions of those that prevail in the market at the time of

vote of all its members concluded that the merger through

approval, going on to issue the corresponding report.

absorption by Inversiones Sudamérica to Conosur Ltda. and

the later improper merger of Inversiones Sudamérica, under

the terms described contributed to the Enersis company

interest and was according to the terms and conditions of

those that prevail in the at the time of its approval; the above,

under the terms and within the parameters considered in the

Directors’ Committee
Consulting Expensess

agreement, issuing the respective report to be placed at the

The budget for functioning expenses approved by the

Board of Directors’ availability.

company’s Regular Shareholders’ Meeting held on April

16, 2013 was not used. The Directors’ Committee has not

4.- On August 30, 2013 the eleventh session of the

required contracting professional consulting services for the

accounting period was held, the Directors’ Committee

development of its functions.

examined an operation between related parties consisting

on an intercompany loan to be granted by Enersis S.A. to

its affiliate Endesa Chile, which although it was comprised

in the effective company Regularity Policy was treated

voluntarily and for greater transparency in the forum of this

Committee. The operation proposed consists on structuring

an intercompany loan in Chilean Pesos between Enersis S.A.

and Endesa Chile, so that the first can grant the second a loan

for up to 250 MMUSD, within a 6 month time period. The

Board of Directors Committee concluded that the operation

proposed contributes to Enersis S.A.’s company interest and

is according to the terms and conditions of those that prevail

in the market at the time of approval, going on to issue the

corresponding report.

5.- In the twelfth session of the accounting period held on

September 26, 2013, the Directors’ Committee examined an

operation among related parties consisting on a structured

loan to be granted by Enersis S.A. to its affiliate Endesa Chile

and which although it was comprised in the effective company

Regularity Policy was treated voluntarily and for greater

transparency in the forum of this Committee. The operation

proposed consists on structuring an intercompany loan in

Organization structure

Board of Directors

Chief Executive Officer
Ignacio Antoñanzas Alvear

Deputy Chief
Executive Officer
Massimo Tambosco

Communications Officer
Daniel Martini Morales

Internal Audit Officer
Alain Rosolino

Shared Services
Officer
Jaime Sanchez-Cano

Human Resources Officer
Carlos Alberto Niño Forero

Administration,
Finances and
Control Officer
Eduardo Escaffi Johnson

Legal Councel
Domingo Valdés Prieto

Procurement Officer
Eduardo López Miller

Planning and
Control Officer
Marco Fadda

MAIN EXECUTIVES

2013 ANNUAL REPORT ENERSISMain Executives

1 CHIEF EXECUTIVE OFFICER
Ignacio Antoñanzas Alvear
Mining Engineer
Universidad Politécnica de Madrid
Tax ID: 22.298.662-1
Since 26.10.06

2 DEPUTY CHIEF EXECUTIVE OFFICER
Massimo Tambosco
Bachelor in Business Administration
Universidad Comercial Luigi Bocconi
Tax ID: 23.535.550-7
Since 01.10.10

3 INTERNAL AUDIT OFFICER
Alain Rosolino
Bachelor in Business Administration
L.U.I.S.S University of Rome
Tax ID: 24.166.243-8
Since 12.12.12

4 ADMINISTRATION, FINANCE AND CONTROL
OFFICER
Eduardo Escaffi Johnson
Civil Engineer
Universidad de Chile
Tax ID: 7.984.912-K
Since 31.08.12

5 PLANNING AND CONTROL OFFICER
Marco Fadda
Bachelor in Economics and Business
Universidad de Génova
Tax ID: 24.271.056-8
Since 01.04.13

6 LEGAL COUNCEL AND SECRETARY OF THE
BOARD
Domingo Valdés Prieto
Lawyer
Universidad de Chile
Master of Laws
Universidad de Chicago
Tax ID: 6.973.465-0
Since 30.04.99

7 HUMAN RESOURCES OFFICER
Carlos Niño Forero
Lawyer
Universidad Externado de Colombia
Tax ID: 23.014.537-7
Since 17.12.10

8 PROCUREMENT OFFICER
Eduardo López Miller
Commercial Engineer
Pontificia Universidad Católica
de Valparaíso
Tax ID: 7.706.387-0
Since 01.11.10

9 SHARED SERVICES OFFICER
Jaime Sánchez-Cano Torres
Bachelor in Economics and Business
Universidad Complutense de Madrid
Tax ID: 24.191.937-4
Since 30.08.13

10 COMMUNICATIONS OFFICER
Daniel Horacio Martini Morales (*)
Licenciado en Periodismo de la Universidad
Nacional de Lomas de Zamora
Tax ID: 24.499.646-9
Since 28.01.2014

(*) Designated by the Board of Director son session held on

January 28, 2014

Compensation of managers
and main executives

During 2013, the remunerations and benefits received by the

General Manager and main company executives amounted

to $2,522 million in fixed wages and $834 million in variable

wages.

During 2012, the remunerations and benefits received by

the General Manager, other managers and main company

executives amounted to $2.616 million in fixed wages and

$1,499 million in variable wages.

This amount included both managers and main executives

present as of December 31, each year, as well as those that

left the company all along the respective accounting period.

Benefits for managers and
main executives

Incentive plans for managers
and main executives

Enersis has an annual bonus plan for complying with

As benefit, the company has a supplementary health

objectives and the level of individual contribution to the

insurance and a catastrophic insurance for its main executives

company results for its executives. This plan includes

and their family group that is credited as a dependent charge.

a definition of the ranges of bonus according to the

In addition, the company has life insurance for each main

hierarchical level of the executives.

executive. These benefits will be granted in conformance

to the management level that corresponds to the worker at

Bonuses are given to the executives consisting in a

each time.

determined number of gross monthly wages.

In 2013, the amount was of $16.5 million, value that is

included in the wages received by the main executives.

Compensations paid to
managers and main executives

In reference to compensation for years of service (severance)

received by managers and main executives that left

the company, $194 million were paid during the 2013

enforcement period.

MAIN EXECUTIVES

2013 ANNUAL REPORT ENERSISProperty over Enersis

As of December 31, 2013, the shareholders’ register reflected that no main

executive had company ownership.

Administration of main subsidiaries

BRAZIL
Endesa Cachoeira
Guilherme Gomes Lencastre
Civil Engineer
Pontifícia Universidad Católica Río de Janeiro

Endesa Fortaleza
Manuel Rigoberto Herrera Vargas
Industrial Electric Engineer
Pontifícia Universidad Católica de Santiago

Endesa CIEN
Guilherme Gomes Lencastre
Civil Engineer
Pontifícia Universidad Católica Río de Janeiro

Ampla
Marcelo Llévenes Rebolledo
Commercial Engineer
Universidad de Chile

Coelce
Abel Alves Rochinha
Mecanic Engineer
Pontifícia Universidad Católica Río de Janeiro

CHILE
Endesa Chile
Joaquín Galindo Vélez
Superior Industrial Engineer
Universidad de Sevilla

Chilectra
Cristián Fierro Montes
Electric Civil Engineer
Universidad de Chile

COLOMBIA
Emgesa
Lucio Rubio Díaz
Bachelor in Business and Economics
Universidad Santiago de Compostela

Codensa
David Felipe Acosta Correa
Electric Engineer
Universidad Pontificia Bolivariana

PERU
Edegel
Francisco Javier Perez Thoden
Industrial Engineer
Universidad de la Escuela Técnica Superior del ICAI
Universidad Pontificia Comillas en España

Edelnor
Ignacio Blanco Fernández
Industrial Engineer
Bachelor in Business and Economics
Universidad de Zaragoza

(1) insertar notas

Human resources

HUMAN RESOURCES

2013 ANNUAL REPORT ENERSISDistribution of human resources

The personnel distribution of the Company, including information relating to

subsidiaries in the five countries where the Enersis Group operates in South

America, to December 31, 2012, was as follows:

Company

Enersis (1)
Endesa Brasil (2)
Endesa Chile (3)
Chilectra (4)
Edesur (5)
Edelnor (6)
Codensa
Manso de Velasco (7)
Total general

Managers
and main
executives
9
20
34
12
13
9
11
1
109

Professionals
and
technicians
378
2,399
2,340
605
2,374
535
1,008
32
9,671

Workers and
others

81
258
135
128
1,032
134
17
9
1,794

Total

468
2,677
2,509
745
3,419
678
1,036
42
11,574

Notes:
(1) Includes ICT.
(2) Includes Ampla, Coelce, CIEN, CTM, TESA, Cachoeira Dourada, Fortaleza, and En-Brasil Comercio y

Servicios.

(3) Includes Costanera, El Chocón, Pehuenche, Celta, Túnel el Melón, Emgesa and Edegel.
(4) Includes Empresa Eléctrica de Colina and Luz Andes.
(5) Includes: Cemsa and Dock Sud.
(6) Includes: Piura and Generalima.
(7) Includes: Aguas Santiago Poniente y Const. and Proyecto Los Maitenes.

Human resources activities

Employee Relations

During 2013 the periodic meeting

program with Trade Union

Organizations has continued, which has

allowed consolidating in time an open,

frank dialogue without restrictions with

the workers’ representatives, in benefit

of improving labor conditions and the

work climate of our employees.

Safety and Health
at Work

At Enersis safety and health at work

are objectives closely linked to the

clothing, face protection masks against electric arc and works

business, which by nature is subject

in heights systems, all of these elements with high safety

to the presence of critical risks. In the

standards that guarantee the maximum workers protection. It

continuous improvement process, with

is also worth noting that in order to reach the zero accidents

everyone’s contribution, a value that

goal, at Enersis the implementation of the One Safety Project

is specially underscored is leadership

has continued, both in our own workers as well as those of

regarding the actual integration of

contractors, in order to improve the behavior of those who

safety and health at work at all levels

work on-site and thus eliminate risky behaviors at the works.

and in all the activities the company

develops, reinforcing its priority in

In matters pertaining to Labor Health the following programs

entrepreneurial management due

are highlighted:

to its strategic importance. In the

leadership scope active participation

of the different company areas in

controlling the workers risks in their

different activities, through reviewing

preventive management in the Safety

2013 Health Disclosure and
Promotion

Committees, revising safety conditions

This program’s objective is to provide, educate and form the

on-site through the Safety Walks and

company workers through activities pertaining to fostering

Ipal Programs, risk prevention formation

quality of life and bio-psychosocial well-being.

plans and safety campaigns. On the

other hand, innovations have also

The mass disclosure actions that are considered within the

been implemented that have allowed

activities are first posters, graphic materials and talks given by

equipping the workers exposed to

specialists regarding thematic cycles with topics of interest,

risk with equipment such as: fire-safe

such as:

HUMAN RESOURCES

2013 ANNUAL REPORT ENERSISHuman resources activities

2013 Psychosocial Risk Assessment
Program

This program’s objective is to identify psychosocial risk factors present in work

conditions and work organization and their occurrence in the workers’ health. In

order to do so, the program has been extended to all the Enersis Managements,

through the following sequence:

Quantitative and qualitative identification of the psychosocial factors with

greater presence, divided in stages:

- Breast Cancer Prevention:

Train women regarding the

1.- Coordinate meetings with Managers and Assistant Managers.

importance of performing breast

self-examinations and in a specific

2.- Present Psychosocial Risk Assessment Program.

case an ultrasound scan or

mammography.

3.- Program and coordinate dates and places where the assessment will be

- Prostrate Cancer Prevention:

applied with appointed personnel.

Carry out promotion and prevention

4.- Apply assessment instrument to the universe of workers considered.

activities for men in early detection

and treatment.

5.- Analyze and manage quantitative and qualitative data on the assessment.

- Colorectal Cancer Prevention:

6.- Draft a report per company, management and area/unit.

Carry out promotion and prevention

activities in the personnel to

7.- Present results to direct lines and collect proposals.

detect and treat in an early manner

pathologies associated to Colorectal

8.- Present and deliver results to middle management and collect proposals.

Cancer.

9.- Present results to evaluated personnel and collect proposals.

- Skin Cancer Prevention:

Inform and sensitize the population

10.- Draft a final written report.

on the prevention, early detection

and treatment of the illness.

11.- Process closing meeting with technical counterpart.

- Prevention of Sexually Transmitted

Diseases and HIV.

- Mental Health and Quality of Life.

- “Heart Month” Cardiovascular Risk

Prevention

2013 Immunization
Program

The Enersis’ workers immunization

program is a preventive measure

that seeks through a medical process

generating in people an immune

memory base that allows forming

protecting antibodies against the

antigen to which the person can be

exposed to.

In order to do so, the objective

of implementing the program in

Enersis’ workers, calls on preventing

the appearance of illnesses that are

recurrently massively spread and

through dissemination, education and periodic controls.

that on affecting people cause high

Periods of exams, controls and medical follow-ups were

absenteeism and detriment to people’s

carried out in order to detect in a premature manner this

quality of life.

possible pathology in women. This program is directed to all

the Enersis workers.

This program is addressed to all Enersis’

workers, implementing the following

vaccines:

- Seasonal Trivalent Influenza Vaccine:

it is implemented during the

2013 Periodic Preventive
Exams Program

first quarter of the year annually,

The objective of this program s to carry out medical and

preventing the outbreak that starts

periodic evaluations, according to the job risks to which the

at the beginning of June.

workers are exposed to, in order to decrease the probability

of having events occur due to alternations or severe

- Hepatitis A and B Vaccine: it is

pathologies without control or treatments with potential

implemented in two dosages per

damage to people’s health. This program is directed to

person every 5 years and is addressed

all company workers and is carried out through a defined

to employees working in confined

protocol according to gender, age and job.

spaces with sewage water vaults.

2013 Healthy
Woman Program

The following programs can be underscored in matters

pertaining to Labor Safety:

Safety campaigns

The objective of this program is

Development of activities under the framework of safety

decreasing the occurrence of death due

week held in April and November 2013, in order to become

to breast and cervical-uterine cancer in

familiar and reinforce preventive actions tending towards

women, acting in a preventive manner

avoiding the occurrence of labor accidents.

HUMAN RESOURCES

2013 ANNUAL REPORT ENERSISSafety walks

Activity developed by executives in

18 work centers, consisting in on-site

inspections in order to corroborate

compliance of procedures and use

of equipment, tools and adequate

machineries.

Security campaigns

Development of activities under the

framework of security week held in April

and November 2013, in order to become

familiar and reinforce preventive

actions tending towards avoiding the

occurrence of labor accidents.

Implementation of
work standards in
heights

Defining and implementing equipment

Dissemination of lessons learned

for work in heights, delivering new

Project that considers delivering a folder with inquiry and formation documents

security harnesses and other accessories

containing the analysis of each one of the serious and mortal accidents that have

and equipment in order to decrease

happened. In this document causes of unfortunate events at work are analyzed

the risk of falls and thus allow rescuing

and their preventive measures are discussed in order to review lessons learned and

workers in emergency situations.

therefore contributes towards eliminating conditions and substandard acts seen

daily when executing activities that have the risk of accidents.

Formation in security

Within the framework of training associated to Labor Health, Safety and Security

of people at work, and seeking to reinforce our competencies in this matter, the

course “Safety Goal Training” is given to 69 persons, an initiative launched in all

countries where the Enersis Group is present. Among the course’s objectives to

be underscored are those that internalize that the responsibility in terms of Labor

Health, Safety and Security is of each one of us and not only the people directly

responsible for operational activities, becoming worldwide references in terms of

Labor Health, Safety and Security.

Implementation of
work standards in
activities associated
to the electric area

Definition and implementation of

equipment for works in electric

installations, delivering fire-safe

clothing and a protection face mask

Leadership Course
in SSL for Directors
and Managers

Study development to identify

leadership characteristics in risk

prevention for 26 persons in order to

develop an intervention program to

establish improvements in preventive

People management

Work climate management

actions.

Starting from the results of the labor climate and the 2012

Development of
training programs

Great Place to Work study, which have been disclosed to the

workers, human resources jointly with each one of the areas

has prepared a Climate Plan.

This plan considered specific work lines, such as Leadership,

and Meritocracy and Development that are translated in

Execution of rescue training programs

concrete actions.

for workers in emergency situations.

In relation to Leadership, the initiative Manager and Close Boss

(Gerente y Jefe Cercano) that focuses on developing closer

contact of management levels with the workers implemented

the practice “Coffee with Ignacio” in order to generate

instances of closeness and conversation between the General

Manager and workers.

Another 2013 action line has been Meritocracy and

Development. Through fostering different activities towards

the workers, during 2013 recognition of the workers continued

to be promoted. One of these initiatives was the ceremony

Let´s Acknowledge Each Other (Reconocernos) acknowledged

workers who represented certain Enersis categories and

values. Those acknowledged were chosen through popular

votes among work mates and area heads.

HUMAN RESOURCES

2013 ANNUAL REPORT ENERSISAt the same time, Enersis has available for all workers and their families a broad

extension program, including sports, culture and special activities; just to mention

some: Knowing my parents’ work “Conociendo el trabajo de mis padres”, Come

to my birthday “Ven a mi cumpleaños”, summer and winter camps for children,

family trips, training courses for the family and others that seek balancing Enersis’

employees work and personal life.

Enersis has addressed servicing specific benefits to different workers’ groups,

such as the program Mothers who work “Madres que trabajan”; additionally, with

financial support for parents with student children, through soft loans to finance

their higher education. Added to these benefits are the end-of-the year, national

holiday celebrations and the good company practices, such as a free afternoon

The priority that the Company grants

on the worker’s birthday, leaving work early on special dates prior to holidays, all

on conducting internal application

towards granting better quality of life to our workers.

processes to cover job vacancies can also

be highlighted, such as implementing

a feedback workflow in the process

allowing to keep candidates informed in

each stage of the job filling process.

It is important to state that the above

actions have been carried out with

Recruitment and Selection

Coverage of Vacancies

the participation of Top Management,

Enersis’ main objective is incorporating the best people in vacant jobs, being our

Managers, Human Resources and all

guiding principle first privileging internal candidates.

workers, who have committed through

their participation implementing the

During 2013 a total of 62 vacancies were generated in generation, 37%

different initiatives considered in the

corresponding to vacancies that were covered internally, performing close to 9

plan.

lateral movements and promotions and close to 17 internal application processes,

whether nationally or incorporating internal applicants within Latin America.

Enersis has an ample array of benefits

for its workers and their families,

Similarly, in this context, from the external labor force that become part of the

among them, health benefits with a

Group, 11% corresponds to students in practice, who were considered candidates

group Isapre plan and supplementary

and were finally contracted on concluding their internship period.

insurance including outpatient and

dental medical services, medications

and inpatient hospital services with

catastrophic coverage on a per expense

basis. Educational benefits can also be

highlighted with aid in money to cover

children’s study expenses, plus incentives

for all high performance students,

reimbursements for pre-college

specialized institutes and summer

schools.

Practices Program

The practices program is an outstanding

project in terms of generating new

sources of recruitment incorporating

future young professionals belonging

to the best universities in the country as

students in practice and thesis students,

to whom the opportunity is provided

to consolidate gradual learning on

Enersis complexity and style, thus

achieving, two objectives the availability

of close sources of recruitment and of

relative rapid access, both due to the

possibility of having references and

direct assessment of students who

are outstanding and can reach not

only technical competencies but also

the values associated to our company

and additionally, mark our ongoing

Diversity and Inclusion

presence in our country’s main higher

Having different work teams and cultivating an inclusive

education facilities. This Practices

labor environment is essential for Enersis, reflected on the

Program is carried out throughout the

on-going search for new forms allowing awareness and

year, being the peak of participants

facilitating building a diverse labor force and a working

during the summer, where a total of 53

environment where individualized differences are respected

students participated in 2013.

and valued. Thus, a pilot action taken is managing the

Company Entry Program, where we seek incorporating

practice students from technical and professional careers

who are physically challenged, forming work alliances with

different foundations to make this program concrete.

Similarly, along the lines of fostering diversity in all scopes

and contributing to the generation of development

alternatives, we can highlight the growing participation

of women in internal job application processes, reaching

45% of total job awards, thus fostering in a gradual manner

feminine empowerment and leadership.

HUMAN RESOURCES

2013 ANNUAL REPORT ENERSISEducational action

Enersis training

Quality, Efficiency
and Customer Focus

Finally and within the perspective

of continuous improvement, Enersis

seeks the on-going assessment of

the quality and efficiency of selection

processes, through generating

instances and mechanisms that allow

getting feedback both from each

area’s managers as well as from the

job occupants, achieving a level of

satisfaction of 89% in terms of quality

of internal customer service in the

total coverage process to fill a vacancy,

and 98% satisfaction in reference to

complying with the heads’ expectations

in terms of new incorporations, as

well as those of the job occupants

themselves regarding their perception

and adaptation to the position and

company. The objective of having

this data is to assure the processes’

stabilization and the possibility of

continuous improvement.

Starting from the 2013 formation program, Enersis established a training

schedule focused on the trade’s needs, structured by different sources of

detecting training needs, aligned with the business strategic plan, made concrete

through an articulated training offer in two main action lines: A Transversal Plan

with topics relating to development and a Functional Technical Formation.

Professionals of the Enersis Group for the fourth consecutive year attended the

“Category Management” course. The Category Management Purchases Model

is a systematic focus used by world-class organizations to maximize contributing

Business Supplies. The objectives are to convey to tools buyers methodologies

necessary to: segment total expenses in categories according to their impact

criteria in the business and market where they buy, understand (Market

Intelligence) the suppliers markets, design a strategy for each category, analyze

strategies, situations and perspectives of the materials, investment and services

markets and, assess risk situations, establishing mitigation and/or contingency

plans.

The third version of “Electric Markets

Diploma” was started in the facilities of

the Universidad del Desarrollo within

the context of closed Graduate studies,

specially designed for the company

with the attendance of 34 workers

from the Enersis Group, which has the

general objective of deepening and

strengthening the characteristics and

challenges of the electric business and

contribute in the negotiation processes,

in electric supply contracting aspects,

supplementary services offers and

distribution tolls, empowering their

performance and positioning within the

company.

Thus the first version of “Diploma

in Control and Management” was

stated in the Universidad de Chile,

Two other programs were given for the Enersis Group

which has the objective of providing to

workers, i.e. Training for Young Professionals, whose

participates basic business management

purpose was to extend this group’s vision so that they can

tools under a management control

contribute to the business with ventures, preparing their

perspective, allowing students to

career development within the organization, which was held

develop necessary competencies

in the Executive Education Center of the Universidad Adolfo

to understand the entrepreneurial

Ibáñez, with the attendance of 39 professionals and Skills

resources management, designing and

Training for Managers, held in the ESE Business School of

maintaining control on the different

the Universidad de Los Andes, with the participation of 38

processes that define the organization’s

workers, which in eight sessions strengthened the leadership,

performance with the attendance of

strategic thinking, decision making, innovation and coaching

30 workers from the Enersis Group

competencies. A workshop on Change Management was

attended.

held as a final activity for both training programs with the

objective of understanding change from the personal and

Post Performance Review (PPR)

organizational point of view, as an on-going element; foster

implementation was started, which is

better understanding of the dynamics that facilitate change

focused on developing the behaviors

processes and understand the concepts and methods for

defined by the Company Leadership

change management.

Program, where 29 courses were given

with the participation of 630 company

employees.

HUMAN RESOURCES

2013 ANNUAL REPORT ENERSISAnother relevant formation activity was the course on

Derivative Assets as support to Corporate Management,

given by Universidad Adolfo Ibáñez, for 15 company workers

in order to acquire the skills and competencies that allow

using the derivatives instruments as tools destined towards

protecting; rate of exchange risks, volatilities in product

prices and factors or strong changes in interest rates.

Training in Savings Keys (Claves de Ahorro) was also given,

through award and APPIA, in order to train buyers in the

use of the system to reflect savings correctly and associate

purchase planning correctly. Thirty (30) company workers

participated in the activity.

Just as in prior years, in order to deliver development

opportunities within the company, “study scholarships” were

granted to workers, totaling 12 persons in 2013, accessing

this benefit. This program has the objective of supporting

workers in carrying out perfecting studies or continuing with

pre and post graduate studies.

Similarly, through the Latam Campus, virtual space,

formation with e-learning courses continues to allow

reaching employees in a massive and simultaneous manner

with topics such as: Business Knowledge, Reinduction in

S&SL, Senda Plan, Information Security and Criminal Risk

Prevention Model.

There was a special concern for topics pertaining o

safety, security and labor health where among others the

following courses were given: Leadership Program in Safety,

Security and Labor Health; Prevention of Accidents on the

Way to Work and Public Roads; Handling and Use of Fire

Extinguishers; Cardiopulmonary Resuscitation; First Aid;

Safety Training Goal and, One Safety Navigators.

Stock exchange
transactions

STOCK EXCHANGE TRANSACTIONS

2013 ANNUAL REPORT ENERSISStock trading in the stock markets

Quarterly transactions of the last three years made in the stock exchanges where the Enersis shares are

traded both in Chile, through the Santiago Stock Exchange, the Electronic Stock Exchange of Chile and

the Valparaíso Stock Exchange, as well as in the United States of America and Spain, through the New

York Stock Exchange (NYSE) and the Latin American Stock Exchange of the Madrid Stock Exchange

(LATIBEX), respectively, are detailed below.

Santiago Stock Exchange

During 2013, in the Santiago Stock Exchange, 8,074 million shares were traded, which is equal to

$1,367,562 million. The closing price per share as of December was of $157.6.

Periods
1st quarter 2011
2nd quarter 2011
3rd quarter 2011
4th quarter 2011
Total 2011
1st quarter 2012
2nd quarter 2012
3rd quarter 2012
4th quarter 2012
Total 2012
1st quarter 2013
2nd quarter 2013
3rd quarter 2013
4th quarter 2013
Total 2013

Shares
1,596,636,759
958,803,877
886,100,149
900,057,047
4,341,597,832
1,288,014,289
1,139,562,913
1,744,269,270
1,392,408,280
5,564,254,752
2,438,386,788
2,192,921,524
1,972,388,086
1,470,668,035
8,074,364,433

Amounts (Pesos)
322,199,069,612
195,120,504,650
168,023,460,684
165,182,488,252
850,525,523,198
240,222,466,312
212,301,014,944
285,537,513,398
231,119,124,139
969,180,118,793
438,757,705,262
374,486,929,466
314,491,374,642
239,826,138,771
1,367,562,148,141

Average Price
201.80
203.50
189.62
183.52

186.51
186.30
163.70
165.99

179.94
170.77
159.45
163.07

Chile Electronic Exchange

In the Chile Electronic Stock Exchange during the year the amount of 1,142 million shares were traded,

which is equal to $196,606 million. The closing price of the share as of December was of $155.5.

Shares
199,064,082
181,558,922
182,448,505
144,335,958
707,407,467
142,929,291
141,381,535
166,172,134
155,911,737
606,394,697
457,040,369
307,352,957
187,542,120
190,280,215
1,142,215,661

Amount (Pesos)
39,760,396,718
37,031,576,257
34,606,048,013
26,534,354,814
137,932,375,802
26,878,396,526
26,913,331,231
26,990,815,636
25,901,302,515
106,683,845,908
82,674,197,920
52,399,743,916
30,138,018,160
31,394,375,774
196,606,3335,770

Average Price
199.74
203.96
189.68
183.84

188.05
190.36
162.43
166.13

180.89
170.49
160.70
164.99

Valparaíso Stock Exchange

In the Valparaíso Stock Exchange a total of 46 million shares were traded, which is equal to $7,548 million.

The closing price of the share as of December was of $155.44

Shares
5,692,610
1,248,485
9,623,945
5,790,809
22,355,849
15,555,048
7,532,539
19,911,829
29,102,662
72,102,078
7,662,176
5,159,336
33,748,331
0
46,569,843

Amount (Pesos)
1,218,753,280
248,888,295
1,753,711,300
1,059,644,493
4,056,997,368
2,852,153,260
1,446,019,519
3,293,321,040
4,910,148,630
12,501,642,449
1,409,775,514
834,654,380
5,304,258,272
0
7,548,688,166

Average Price
214.09
199.35
182.22
182.99

183.36
191.97
165.40
168.72

183.99
161.78
157.17

STOCK EXCHANGE TRANSACTIONS

2013 ANNUAL REPORT ENERSIS
New York Stock Exchange (NYSE)

The Enersis shares began to be traded in the New York Stock Exchange (NYSE) on October 20, 1993. An

Enersis ADS (American Depositary Share) represented 50 shares and its account code is ENI. Citibank

N.A. acts as a depositary bank and Banco Santander Chile as custody in our country. During 2013, in the

United States of America 167 million ADS were traded that is equal to US$2,895 million. The ADS price

closed as of December in US$15.85.

Shares
45,063,352
28,212,252
38,872,327
32,721,937
144,869,868
38,448,445
31,111,964
34,003,544
32,168,392
135,732,345
45,963,195
50,929,574
36,942,777
33,394,036
167,229,582

Amount (Pesos)
924,262,083
610,562,978
769,407,917
593,068,611
2,897,301,588
732,794,989
587,263,102
582,431,845
554,979,796
2,457,469,732
874,885,600
907,083,863
583,580,477
529,200,532
2,894,750,472

Average Price
20.51
21.64
19.79
18.12

19.06
18.88
17.13
17.25

19.03
17.81
15.80
15.85

Latin American Securities Stock Exchange of the
Madrid Stock Exchange (Latibex, Bolsa de Valores
Latinoamericanos de la Bolsa de Madrid)

The Enersis shares started to be traded in the Latin American Securities Stock Exchange of the Madrid

Stock Exchange (Latibex) on December 17, 2001. Until April 2011, the contracting unit for the company

was of 50 shares and its account code is XENI. Starting from May 2, 2011 the contracting unit is unitary.

Santander Central Hispano Investment S.A. acts as the liaison entity and Banco Santander is the

custody in Chile. During 2013, 6.9 million shares were traded, which is equal to 1.7 million Euros. The

contracting unit price in December closed at 0.23 Euros.

Periods
1st quarter 2011
2nd quarter 2011
3rd quarter 2011
4th quarter 2011
Total 2011 (*)
1st quarter 2012
2nd quarter 2012
3rd quarter 2012
4th quarter 2012
Total 2012
1st quarter 2013
2nd quarter 2013
3rd quarter 2013
4th quarter 2013
Total 2013

Shares
3,824,700
3,395,992
5,259,100
3,293,219
15,773,011
1,652,978
1,867,239
1,656,889
1,225,821
6,402,927
1,329,415
1,396,386
2,376,982
1,819,724
6,922,507

Amount (Pesos)
1,155,781
1,024,002
1,414,624
893,885
4,488,292
476,501
561,570
459,797
327,777
1,825,645
383,687
364,307
554,612
418,887
1,721,493

Average Price
0.30
0.30
0.27
0.27

0.29
0.30
0.28
0.27

0.29
0.26
0.23
0.23

(*) Contracting unit was expressed in the prior years in 50 units per share.

Market information

During 2013, the Chilean shareholding market continued the low trend, with an accrued decrease

during the period of 14% in comparison to 2012. This is partially explained by the increase in the

region’s uncertainty, mainly related with the exposure of these markets to the time lapse withdrawal

effect of fiscal stimulus in the United States, decrease in the price of commodities, such as copper and

the slowdown of the economic activity in China.

On the other hand, the generalized recovery of the operational and financial results in North America,

linked to the improvement in the uncertainty situation related to the debt crisis of some of the member

countries in the Euro zone have caused an exit of capitals in South America in reference to these

markets.

Santiago Stock Exchange

Enersis’ performance during the last two years in comparison to the Shares Selective Price Index (Índice

Selectivo de Precios de Acciones, IPSA) in the local market.

Variation
Enersis
IPSA

2012
-3.7%
3.0%

2013 Cumulative 2012-2013
-11.3%
-7.9%
-11.5%
-14.0%

New York Stock Exchange (NYSE)

Behavior of Enersis’ ADR’s listed in the NYSE (ENI) in comparison to the Dow Jones Industrial and Dow

Jones Utilities Indexes during the last two years:

Variation
ENI
Dow Jones Industrial
Dow Jones Utilities

2012
3.3%
7.3%
-2.5%

2013 Cumulative 2012-2013
-14.7%
35.7%
5.6%

-17.5%
26.5%
8.3%

Latin American Securities Exchange of the Madrid
Stock Exchange (Latibex in its Spanish acronym)

Enersis’ (XENI) performance per share listed in the Madrid Stock Exchange (Latibex) all along the last

two years in comparison to the LATIBEX Index.

Variation
XENI
LATIBEX

2012
4.1%
-10.7%

2013 Cumulative 2012-2013
-13.8%
-28.5%

-17.2%
-20.0%

STOCK EXCHANGE TRANSACTIONS

2013 ANNUAL REPORT ENERSIS63

Dividends

DIVIDENDS

2013 ANNUAL REPORT ENERSISIn accordance with the General Rule No. 283, Number 5), the dividends policies of the company

corresponding to the 2014 and 2013 accounting periods are described below.

Dividends Policy 2014

General Aspects

The Company Board of Directors, in session dated February 28, 2014 approved the following

Dividends Policy and the corresponding procedure on the dividends payment of Enersis S.A.,

for the 2014 accounting period.

Dividends Policy

The Board of Directors has the intention of distributing a provisory dividend, charged on

the 2014 accounting period profits, of up to 15% of the profits as of September 30, 2014,

according to what is shown in the Enersis S.A.A’s financial statements up to such date, to be

paid in January 2015.

The Board of Directors has the intention of proposing to the Regular Shareholders’ Meeting,

to be held on the first quarter 2015, to distribute as a definite dividend, an amount equal to

50% of the profits for the 2014 accounting period. The definite dividend will correspond to be

defined by the Regular Shareholders’ Meeting, to be held on the first 2015 quarter.

Compliance of the aforementioned program will be conditioned, in matter pertaining to

dividends, to the profits effectively obtained, as well as on the results that forecasts that

periodically made by the Company or the existence of determined conditions, according to

what corresponds.

For these purposes, checking or savings banking accounts

can be in any area of the country.

It is necessary to underscore that the payment modality

chosen by each shareholder will be used by DCV Registros

S.A. for all dividends payment, while the shareholder does

not express in writing his intention of modifying it and

registers a new option.

The shareholders that do not have a payment modality

registered, they will be paid according to modality No. 4

stated herein above.

In cases where the checks or on-site drafts are returned

by mail to DCV Registros S.A., they will remain under their

custody until the shareholders withdraw or request them.

Procedure to pay
dividends

For the payment of dividends, whether

provisory or definite, and in order to

In case of deposits in banking checking accounts, Enersis S.A.

avoid their undue collection, Enersis

and/or DCV Registros S.A. can request, for security reasons,

S.A. considers the modalities that are

their verification by the corresponding banks. If the accounts

indicated as follows

indicated by the shareholders are objected, whether in a

prior verification process or for any other cause, the dividend

1. Deposit in banking checking account,

will be paid according to the modality indicated in Point No.

whose title holder is the shareholder.

4 herein above.

2. Deposit in banking savings account,

On the other hand, the Company has adopted and will

whose title holder is the shareholder.

continue to adopt in the future all necessary security

3. Forwarding a nominative check or

process, in order to safeguard both the shareholders as well

measures required that is required by the dividends payment

on-sight draft by registered mail to

as Enersis S.A.

the residence of the shareholder

that is listed in the Enersis S.A.’s

shareholders’ register

4. Withdrawal of the check or on-site

draft at the offices of DCV Registros

S.A., in its capacity as the Enersis S.A’s

administrator of the shareholders’

offices that are determined for such

purpose and that will be informed in

the notice that is published regarding

the payment of dividends.

DIVIDENDS

2013 ANNUAL REPORT ENERSISDividend policy
2013

Compliance with the above program will be subject, in terms of dividends, to

the actual net income booked and also the results of the projections made

periodically by the company or the existence of certain conditions, as the case may

be.

General Aspects

(1) Through Significant Event published on SVS on November 26, 2013, Enersis S.A.

informed the following

The Board of Directors of the Company,

In accordance with articles 9 and 10 of the Securities Market Law 18,045, the

in its session taken place February 28,

provisions of General Rule No. 30 of the Superintendence, duly authorized and on

2013, approved the following dividend

behalf of Enersis S.A. (the “Company”), I hereby inform you as a Significant Event,

policy and the procedures for payment

that the Board of Directors of Enersis S.A., at its meeting held today, agreed by

of Enersis S.A. dividends.

unanimously vote to distribute on January 31,2014, an interim dividend of Ch$

Dividend policy(1)

The Board of directors has the intention

to propose to the General shareholders

meeting, to be held during the first

four month of 2014, to distribute a final

1.42964 per share, attributable to 2013 fiscal period, corresponding to 15% of liquid

net income as of September 30, 2013, in accordance with the Company’s dividend

policy.

Distributable net income year 2013

dividend equivalent to 50% of profits of

The distributable net income for year 2013 is indicated below:

year 2013.

The board also has the intention to

Net Income *
Distribuible Net Income

distribute an interim dividend against

* Attributable to the parent company

the net income for 2013 of up to 15% of

the net income to September 30, 2013,

as shown in the financial statements at

that date, payable in January 2014.

Distributed dividends

Million $
658,514
658,514

The following chart shows the dividends per share paid during the last few years:

Dividend
No.
77
78
79
80
81
82
83
84
85
86
87
88

Dividend
Type
Final
Interim
Final
Interim
Final
Interim
Final
Interim
Final
Interim
Final
Interim

Closing Date
24-04-2008
13-12-2008
07-05-2009
11-12-2009
29-04-2010
21-01-2011
06-05-2011
21-01-2012
17-05-2012
19-01-2013
04-05-2013
25-01-2014

Payment date
30-04-2008
19-12-2008
13-05-2009
17-12-2009
06-05-2010
27-01-2011
12-05-2011
27-01-2012
24-05-2012
25-01-2013
10-05-2013
31-01-2014

Pesos
per share
3.41256
1.53931
4.56069
2.45677
4.64323
1.57180
5.87398
1.46560
4.28410
1.21538
3.03489
1.42964

Charged to
accounting
period
2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013

Investment and
financing policy
2014

INVESTMENT AND FINANCING POLICY 2014

2013 ANNUAL REPORT ENERSISInvestment and financing policy 2014

Investments

Areas of investment

Enersis S.A. will invest, as authorized by its bylaws, in the following areas:

• Contributions for investment in or for the incorporation of subsidiaries and related companies

whose activity is aligned, related or linked to any forms or types of energy or the supply of public

utilities or whose main raw material is energy.

• Investments consistent in the acquisition, exploitation, construction, rental, administration, trading

and disposal of any class of fixed assets, whether directly or through subsidiaries.

• Other investments in all kinds of financial assets, titles or securities.

Maximum investment limits

The maximum investment limits for each investment area shall be the following:

Investments in its subsidiaries in the electricity sector: amounts needed by the subsidiaries to meet

their respective corporate purposes.

ii) Investments in other subsidiaries: given amount such that the addition of the proportional fixed assets

corresponding to Enersis S.A.’s stake on these other subsidiaries does not exceed the proportional fixed

assets corresponding to the Enersis S.A.’s stake in the electricity sector subsidiaries and Enersis S.A.

Monitoring of the areas
of investment

Financing

In order to monitor the investment

(a) Maximum debt level

areas and in accordance with Enersis

The maximum leverage of Enersis S.A. is a debt to

S.A. corporate purpose, the following

shareholders’ equity ratio of 2.20 times, based on the

procedure will be pursued whenever

consolidated statements of financial position.

possible:

• At the Ordinary Shareholders’

Meetings of our subsidiaries or

related companies it will be proposed

(b) Management powers for agreeing
dividend restrictions with lenders

the appointment of directors

Dividend restrictions may only be agreed with creditors if

corresponding to the Enersis S.A.’s

previously approved by a shareholders’ meeting (ordinary or

stake in that company, who must

extraordinary).

be preferably chosen from among

directors or executives of the

Company or its subsidiaries.

• Investment, financial and commercial

policies will be proposed to the

The Company’s management may agree with creditors the

subsidiaries and related companies,

granting of tangible security or guarantees in accordance

as well as the accounting criteria and

with the law and the corporate bylaws.

(d) Essential assets for the normal
operations of the company

The shares representing Enersis S.A.’s stake in its subsidiary

Chilectra S.A. are considered essential assets for the normal

operations of Enersis S.A.

systems they should follow.

• The management of the subsidiaries

and related companies will be

supervised.

• Permanent control of debt limits will

be maintained, to the extent that

the investments or contributions

implemented or that are planned

to be carried out do not represent

an unusual variation from the

parameters defined by the maximum

investment limits.

INVESTMENT AND FINANCING POLICY 2014

2013 ANNUAL REPORT ENERSIS71

The Company’s
businesses

THE COMPANY’S BUSINESSES

2013 ANNUAL REPORT ENERSISBusiness structure

GENERATION

Endesa Chile

Endesa Costanera

Hidroeléctrica El Chocón

Central Dock Sud

Endesa Fortaleza

Endesa Cachoeira

Endesa CIEN*

Emgesa

Edegel

EEPSA

(*) Transmission

DISTRIBUTION

Chilectra

Edesur

Ampla

Coelce

Codensa

Edelnor

OTHER BUSINESS

ICT

Inmobiliaria Manso de Velasco

Historical
background

On August 1, 1988, as resolved at the extraordinary

shareholders meeting of April 12, 1988, one of the companies

born from the division changed its name to Enersis S.A.

At the extraordinary shareholders meeting of April 11,

2002, the company’s objects were modified, introducing

On June 19, 1981, Compañía Chilena

telecommunications activities and the investment and

de Electricidad S.A. formed a new

management of companies whose businesses are in

corporate structure which gave

telecommunications and information technology, and

birth to a parent company and

internet trading businesses.

three subsidiaries. One of these was

Compañía Chilena Metropolitana de

In 1988, and in order to successfully meet its development

Distribucion Electrica S.A. In 1985, under

and growth, the company was split into 5 business units

the Chilean government’s privatization

which in turn gave birth to five subsidiaries. Of these,

policy, the process of transferring the

Chilectra and Río Maipo were responsible for electricity;

share capital of Compañía Chilena

Manso de Velasco concentrated on electrical engineering

Metropolitana de Distribucion Electrica

and construction services, plus real-estate management,

S.A. to the private sector was begun,

Synapsis in the area of information technology and data

ending finally on August 10, 1987. In this

processing, while Diprel focused on providing procurement

process, the pension fund management

and commercialization of electrical product.

companies (AFPs), company employees,

institutional investors and thousands

Today, Enersis is one of the largest private electricity

of small shareholders joined the

groups in Latin America in terms of consolidated assets and

Company. Its organizational structure

operating revenue, achieved through steady and balanced

was based on activities or operative

growth in its electricity businesses: generation, transmission

functions whose results were evaluated

and distribution. The development of the electricity

functionally and its profitability was

distribution business abroad has been implemented jointly

limited by a tariff structure as a result of

with its subsidiary Chilectra, a company that distributes

the Company’s exclusive dedication to

electricity in the Metropolitan Region, Chile. Its investments

the electricity distribution business.

in electricity generation in Chile and abroad have been

developed mainly through its subsidiary Empresa Nacional de

In 1987, the company’s board proposed

Electricidad S.A. (Endesa Chile).

forming a division for each of the

parent company’s activities. Four

In addition, it is involved in businesses that complement its

subsidiaries were therefore created

principal ones through majority holdings in the following

to be managed as business units each

companies: Real estate Manso de Velasco Ltda. committed to

with its own objectives, thus expanding

the real-estate business through the integral development of

the company’s activities toward other

real-estate projects and the administration, rental, purchase

non-regulated activities but linked

and sale of the property assets of Enersis and its subsidiaries

to the main business. This division

in Chile; ICT Servicios Informáticos Limitada is a consulting

was approved by the extraordinary

services company in technology, information and computing,

shareholders meeting of November

and telecommunications

25, 1987 which defined its new

corporate objects. Compañía Chilena

Metropolitana de Distribucion Electrica

S.A. thus became an investment holding

company.

THE COMPANY’S BUSINESSES

2013 ANNUAL REPORT ENERSIS1993

• In July, it bought the generator Hidroeléctrica El Chocón, located in the

province of Neuquén and Río Negro, Argentina.

1994

• In July, Enersis acquired for US$176 million 60% of the share capital of

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

acquired Edechancay, another electricity distributor in that country, which

was later absorbed by the former.

• At the end of the year, Enersis acquired an additional 1.9% of the share

capital of Endesa Chile, increasing its shareholding to 17.2%.

Expansion and
development

Enersis began its international

expansion in 1992 through participating

1995

in different privatization processes

• On December 12, Enersis acquired an additional 39% in Edesur gaining

in Latin America, thus developing a

control of the company.

significant presence in the electricity

sectors of Argentina, Brazil, Colombia

• It also acquired the generator Edegel in Peru.

and Peru.

1992

1996

• On May 15, it acquired a 60%

on April 15, Endesa Chile became a subsidiary of Enersis.

shareholding and control of the

generator Central Costanera,

• It invests in the sanitation market with the acquisition of Agua Potable Lo

• On February 15, Enersis reached a 25.28% shareholding in Endesa Chile and,

currently Endesa Costanera, in

Castillo S.A.

Buenos Aires, Argentina.

• On July 30, it was awarded 51%

of a large block of shares in the previously-called Companhia de Eletricidade

of Empresa Distribuidora Sur S.A.,

do Río de Janeiro S.A., Cerj, a company that distributes electricity in the city

Edesur, a company that distributes

of Río de Janeiro and Niteroi, Brazil. Its present name is Ampla Energía e

• On December 20, Enersis entered the Brazilian market with the acquisition

electricity in the city of Buenos Aires,

Serviços S.A.

Argentina.

• On December 20, it acquired a 99.9% shareholding in Central Hidroeléctrica

de Betania S.A. E.S.P, in Colombia.

1997

• On September 5, it acquired for US$715 million a 78.9%

shareholding in Centrais Elétricas Cachoeira Dourada,

Brazil.

• On September 15, Enersis successfully took part in

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

shareholding of 48.5% for US$1.226 million, company

that distributes electricity in the city of Bogotá and the

department of Cundinamarca, Colombia. It was also

awarded 5.5% of Empresa Eléctrica de Bogotá.

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

an amount of US$951 million, in Emgesa, a Colombian

generator, and an additional 5.5% of Empresa Eléctrica de

Bogotá S.A.

• ENDESA S.A., (Spain), acquired 32% of Enersis.

1998

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

added to the 25%already held, enabled it to obtain a 60%

shareholding in the generator. It therefore consolidated

its position as one of the principal private sector electricity

• On April 3, Enersis again entered the Brazilian market,

companies in Latin America.

this time being awarded 89% and control of Companhia

Energética de Ceará S.A., Coelce, company distributes

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

2000

Ceará for US$868 million.

• On April 22, Enersis reached 100% shareholding in Aguas

Transelec, Esval, Aguas Cordillera and real-estate assets

Cordillera, Santiago, Chile.

were sold for US$1,400 million.

• As part of its Genesis Plan strategy, the subsidiaries

• On December 28, Enersis gained control of Esval, located

in the Valparaiso region, through being awarded 40% of

2001

the share capital of the company.

1999

• Large investments were made: US$364 million for

increasing its shareholding in Chilectra, in Chile; US$150

million in the acquisition of 10% of the share capital of

Edesur, in Argentina, a percentage that was held by the

• ENDESA S.A., (Spain), took control of Enersis. Through a

company’s employees; US$132 million to increase its

public share offering (OPA), the multinational company

shareholding in Ampla, in Brazil; US$23 million to increase

ENDESA S.A., acquired an additional holding of 32% in

its shareholding by 15% in Río Maipo, in Chile, and US$1.6

Enersis which, together with the 32% already acquired

million to increase its shareholding by 1.7% in Distrilima, in

in August 1997, gave it a total holding of 64%. This

Peru.

transaction, completed on April 7, 1999, involved an

investment of US$1,450 million. As a result of the capital

increase made by Enersis in 2003, this shareholding

reduced to the present 60.62%.

THE COMPANY’S BUSINESSES

2013 ANNUAL REPORT ENERSIS2002

2006

•

In Brazil, Central Termoeléctrica Fortaleza in the state

of Ceará was awarded to the Company. The commercial

operation of the second phase of the electricity

interconnection between Argentina and Brazil, CIEN,

completing a transmission capacity of 2,100 MW

between both countries, also began.

2003

• Assets amounting to US$757 million were sold, including

the Canutillar generating plant and the distributor Río

Maipo, both in Chile.

2004

• The Central Hidroelectrica Ralco hydroelectric plant

• During February, the Termocartagena (142 MW) plant in

located in the Bio Region and contributes 690 MW of

Colombia, which operates with fuel oil or gas, was bought

capacity, began operations.

for approximately US$17 million.

2005

• In March, Enersis informed the SVS about the merger of

Elesur and Chilectra by the absorption of the latter by the

former. The legal effects of this merger were effective

• On April 18, the subsidiary Endesa Eco was formed to

from April 1, 2006.

promote and develop renewable energy projects like

mini-hydro plants, wind farms, geothermal, solar and

• In June, Edegel and Etevensa were merged, the latter

biomass plants, and to act as the depositary and trader

a subsidiary of Endesa Internacional (now Endesa

of the emission reduction certificates produced by these

Latinoamérica S.A.) in Peru.

projects.

• The subsidiary Endesa Brasil S.A. was formed with

Chile signed an agreement defining the structure of the

all the assets held in Brazil by the Enersis Group and

liquefied natural gas (LNG) project in which Endesa Chile

Endesa Internacional (now Endesa Latinoamérica): CIEN,

participates with a 20% holding.

• On September 29, Endesa Chile, ENAP, Metrogas and GNL

Fortaleza, Cachoeira Dourada, Ampla, Investluz and

Coelce.

2007

• In March, the company Centrales Hidroeléctricas de Aysén

S.A. (HidroAysén) was formed, to develop and exploit the

hydroelectric project in the region of Aysén, called the

“Aysén Project”, which will imply 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 of 248 MW,

was made available to Economic Load Dispatch Center

(CDEC-SIC).

• In September, the merger of the Colombian generating

companies, Emgesa and Betania was completed.

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

control of Enersis through ENDESA S.A. and Endesa

Internacional, S.A. (now Endesa Latinoamérica S.A.).

• During November, the Palmucho hydroelectric plant

started up its commercial operations, located below the

Ralco plant dam in the Upper Biobío area, supplying 32

MW of capacity to the Central Interconnected system SIC).

• Canela was inaugurated on December 6, the first wind

farm on the SIC. Canela is located in the village of that

name in the Region of Coquimbo and contributes 18

2009

MW to the SIC.

2008

• The companies ACCIONA, S.A. and ENEL S.p.A. announced

an agreement whereby ACCIONA, S.A. will directly and

indirectly transfer to ENEL ENERGY EUROPE S.L. a 25.01%

shareholding in ENDESA, S.A. ENEL ENERGY EUROPE S.L.,

• In January, the second phase of the San Isidro II

controlled 100% by ENEL S.p.A., will thus hold 92.06% of

combined-cycle thermal plant began its commercial

the share capital of ENDESA, S.A.

operations, with an installed capacity of 353 MW.

• On March 24, the dual operation of Unit Nº1 of the Tal-

ACCIONA, S.A. came into effect whereby the ENEL Group

Tal thermal plant began operations, with an installed

became the controller of 92.06% of the share capital of

capacity of 245 MW.

ENDESA, S.A.

• On June 25, the agreement between ENEL S.p.A. and

• In June 27, the Ojos de Agua mini-hydro plant began

• On October 9, Endesa Chile acquired 29.3974% of its

operations, contributing 9 MW of installed capacity to

Peruvian generation subsidiary Edegel. The shares

the SIC.

were acquired at market price from Generalima S.A.C.,

a company which in turn is a subsidiary of Endesa

Latinoamérica S.A. Endesa Chile thus now holds directly

and indirectly 62.46% of the shares of Edegel.

• On October 15, Enersis S.A. acquired 153,255,366 shares,

representing 24% of the share capital, of its Peruvian

subsidiary, Edelnor, at a price of 2.72 soles per share.

This was purchased from Generalima S.A.C., a Peruvian

subsidiary of Endesa Latinoamérica S.A., the parent

company of Enersis. With this transaction, the direct and

indirect shareholding of Enersis S.A. in Edelnor rose from

33.53% to 57.53%.

THE COMPANY’S BUSINESSES

2013 ANNUAL REPORT ENERSIS2010

• In October, 2010, the company submitted the

Environmental Impact Study (EIA In its Spanish acronym)

of the Project LTE Central Hidroeléctrica Los Cóndores

to the Environmental Assessment Service (SEA In its

Spanish acronym), initiative that will allow connecting the

future power plant Central Hidroeléctrica Los Cóndores

to the Sistema Interconectado Central (SIC In its Spanish

acronym), main electricity grid in the country, and that

services more than 90% of the population.

• In December 2010, Endesa Chile submitted the

environmental impact assessment (EIA) of Central

Hidroeléctrica Neltume again. The company submitted

the environmental impact study to the Environmental

Assessment Service (SEA), incorporating the additional

information requested by the different organisms that

participated in the evaluation process of the initiative.

The 490 MW installed capacity intends to make use of the

existing hydroelectric potential in the area, specifically in

the River Fuy, natural drainage of the lake Pirehueico.

• In February, the San Isidro plant increased its capacity to

399 MW; the combined cycle unit increased 22 MW of

• In December Endesa Chile submitted the EIA of the

capacity after implementing technological changes that

Project named High Voltage S/E Neltume-Pullinque to the

allowed him to operate in a dual manner (LNG and oil).

SEA of the Lake Region. The initiative’s purpose is to build

and operate the necessary infrastructure to transport

• On May 31 in the context of the ongoing effort to provide

and inject the energy to come from the future Central

its customers with excellent service, Chilectra began

Hidroeléctrica Neltume, into the Central Interconnected

the project distribution network remote management

System (SIC).

(DT) implemented by CAM, a technological change that

will allow a qualitative leap in the registration of power

• Enersis accepted the offer presented by the company

consumption and reducing energy losses.

Grana y Montero S.A.A., to acquire the entire stake it

holds, directly and indirectly, in its subsidiary Compañía

• In early June Chilectra and Clínica Dávila opened the

Americana de Multiservicios Limitada, CAM; and likewise,

largest solar Project in Chile. With a total of 264 solar

accepted the offer by Riverwood Capital L.P to acquire

thermal collectors, installed in 740 square meters, the

the entire shareholding, both directly and indirectly, in

solar electric technology will allow heating more than

its subsidiary Synapsis Soluciones y Servicios IT Ltda. The

70,000 liters of sanitary water a day, using two types of

price offered for CAM and its subsidiaries in Argentina,

totally clean energy, uncontaminated and with savings of

Brazil, Colombia and Peru amounted to US$20 million. In

up to 85%.

the case of Synapsis, the price offered for the company

and its subsidiaries in Argentina, Brazil, Colombia and Peru

•

In July Endesa Chile and Minera Lumina Copper Chile S.A.

amounted to US$52 million.

formalized a supply contract to satisfy electricity needs

of Caserones Project, located 162 kilometers southeast of

Copiapo. The agreement considers supplying energy and

capacity from September 1, 2012 until December 31, 2022.

2011

• Four projects were submitted for environmental approval:

“Optimization of Los Cóndores Hydroelectric Power

Plant”, “Renaico Wind Farm”, “LAT S/E PE Renaico - S/E

Bureo” and “Optimization Second Unit of Thermal

Power Plant Bocamina”. The project “Optimization of Los

Cóndores Hydroelectric Power Plant” has been qualified

as environmentally favorable. The projects: “LTE CH

Los Cóndores - S/E Ancoa”, “Hydroelectric Power Plant

Neltume”, “High Tension line S/E Neltume - Pullinque”,

“Renaico Wind Farm”, “LAT S/E PE Renaico - S/E Bureo”

and “Optimization Second Unit of Thermal Power Plant

Bocamina” are in the process of environmental approval.

• In May, the Environmental Assessment Commission of

the Aysen region approved the Environmental Impact

Study of the HydroAysen project power plants presented

on August 14, 2008, which constitutes an important

• In September, the Enersis Group measured the Carbon

milestone in the process of obtaining the necessary

Footprint of its generation power plants in Latin America.

authorizations to develop this project, in which Endesa

Through its subsidiary Endesa Chile, the company

Chile has a 51% share, and the Chilean electricity company

carried out the calculation of the carbon footprint

Colbun has the remaining 49%. If the project is carried

for 13 generation plants located in Argentina, Chile

out, it would imply adding 2,750 MW of hydroelectric

and Colombia, and also for the corporate building in

capacity to the Chilean electricity system, from five power

Santiago, Chile. Simultaneously, in Peru, a methodology

plants, making an important contribution to reliability

of calculation was developed in house and applied to

of the electricity supply of the country. The project also

calculate the Carbon Footprint of hydroelectric and

considers building a high tension transmission line,

thermal power plants and also corporate headquarters

developed by third parties, approximately 1,912 Km long,

in Lima. Chilectra on the other hand, has measured

that will begin its approval process shortly.

carbon footprint and has disclosed results publicly in

its Sustainability Report since 2007. The distributor

• In August, Endesa Latinoamérica, S.A. (wholly owned

brought up this subject with the objective of offering its

subsidiary of Endesa, S.A.) informed, as a significant event,

customers various actions to reduce emissions of CO2,

entering into an agreement for Endesa Latinoamérica

through Energy Efficiency (EE) or the implementation of

to acquire EDP’s 7.70% stakes in Endesa’s Brazilian

Non-Conventional Renewable Energy. In order to do so,

subsidiaries Ampla Energia e Serviços S.A. and Ampla

Chilectra has a strategic alliance with the environmental

Investimentos e Serviços S.A. for Euro 76 million and

company POCH Ambiental, a firm with extensive

Euro 9 million, respectively. After these acquisitions, the

experience in Climate Change and Carbon Footprint

Endesa Group will control 99.64% of the share capital of

consulting, which offers calculation and certification

both companies, whose shares trade on the Sao Paulo

services, and also reduction of emission by EE or ERNC.

stock exchange. In compliance with securities market

regulations in Brazil, once the acquisition is complete

Endesa will launch a tender offer for the remaining 0.36%

stakes held by the minorities shareholders of Ampla

Energia and Ampla Investimentos under the terms set out

in these regulations.

THE COMPANY’S BUSINESSES

2013 ANNUAL REPORT ENERSIS2012

• On February 29, 2012, the power plant Bocamina II

began commercial operations. This allows compensating

the hydroelectricity generation deficit present for the

last 3 years and contributes with an important increase in

efficient low cost thermal electricity as back up capacity

of the Central Interconnected.

• The power plant project Punta Alcalde, to have 740 MW

of installed capacity and that will be locate 13 kilometers

from the city Huasco, received environmental approval

from the Ministers Committee In early December,

after being rejected by the Environmental Assessment

Commission of the Atacama Region In June 2012. The

project will have the highest standards of technology,

efficiency and environmental commitment, considering

world class parameters in terms of emissions and

operations.

established by Articles 15, 67 and Title XVI of Law 18,046

(the Board of Directors requested the independent

• In July, through a Significant Fact submitted to the

valuation of IM Trust and the Directors Committee

Superintendence of Securities and Insurance (SVS),the

requested the independent valuation of Claro y Asociados

Board of Directors of Enersis informed its decision to call

Ltda., the Directors Committee issued its report and each

an Extraordinary Shareholders Meeting to take place

Director gave his opinion with respect to the proposed

September 13, with the purpose of resolving, among

operation), the Extraordinary Shareholders Meeting held

other matters, the capital increase of the Company

on December 20 ruled on the capital increase. A very

according to Endesa’s (Spain) proposal, amounting to up

large majority, almost 86% of all shareholders present

to the equivalent of US$8,020 million in Chilean pesos,

with voting rights, equivalent to 81.94% of the total shares

or the amount that the Extraordinary Shareholders

with voting rights of the Company, approved the capital

Meeting determines. In early August, the SVS stated that

increase of the following characteristics: 1) Maximum

the Board of Enersis must adopt the actions necessary

amount of the capital increase: Ch$ 2,844,397,889,381,

to strictly comply with the conditions established by

divided into 16,441,606,297 ordinary nominative payment

Articles 15, 67 and Title XVI of Law 18,046 (Corporations

shares of the same series, with no preferences and no

Law),considering that they are complementary and when

par value, 2) Value of non-in-kind contributions to be

applicable should be considered simultaneously. These

capitalized: The total issued capital of Cono Sur, Company

conditions are related to capital increase transactions

that will concentrate the activities that are identified

and related party transactions respectively. Once the

in the reports that have been made available to the

indications of the SVS were acknowledged, Enersis

shareholders and that would be contributed by Endesa

adopted them and continued with the capital increase

to Enersis S.A., will amount to Ch$ 1,724,400,000,034

operation. The Board of Directors resolve postponing

corresponding to 9,967,630,058 shares of Enersis S.A. at

the Extraordinary Shareholders Meeting to take

a price of Ch$ 173 per share, 3) Placement share price: A

place September 13 to a later date to be determined

fixed price of Ch$173 for every payment share to be issued

opportunely. After strictly complying with the conditions

as a result of the capital increase.

2013

• Capital Increase. With a historic result for this type of

operation in the local market, Enersis shareholders

subscribed a total of approximately $ 6,022,000, a

placement of 100% of the shares available for Capital

Increase.

• During the year, progress continued in the construction of

the El Quimbo project in Colombia, which is located south

of the department of Huila, southeast of Bogotá and

feeds from the flow of the Magdalena River. It includes

the construction of a 400 MW hydroelectric dam and

with an average annual generation of about 2,216 GWh.

During the year and according to the commitments of the

Environmental License of El Quimbo, the projects related

with the resettlement nuclei and their respective irrigation

and urbanization districts were executed, these were

directly linked to the conditions accepted by the people

On December 3, 2012, by unanimous vote, the Committee

affected by the project and the needs expressed by the

of Ministers decided to reverse the decision of the EAC

local authorities.

in the Region of Atacama, granting an environmental

approval to the project. In early 2013, four court

• Punta Alcalde Thermal Power Plant Project. In July 2013,

proceedings (stay for protection) against the decision of

the transmission project that would connect the power

the Committee of Ministers, which were received by the

plant to the Maitencillo substation of the SIC underwent

Court of Appeals in August 2013. In December 2013, the

environmental assessment. The Punta Alcalde Thermal

case was in the Supreme court pending ruling, which was

Power Plant will be located in the Atacama Region,

finally ruled in favor of the project on January 17, 2014.

Province and Municipality of Huasco, 13 kilometers south

of Huasco. The initiative provides for the construction

• In July 2013, the new Malacas power plant was

of a power plant which uses bituminous coal as its main

commissioned in Peru. With a power output of 185 MW,

fuel. It will have two power blocks, each having an

the new unit of the Malacas thermal power plant began

installed capacity of 370 MW. The plant will be connected

operations in Piura, this pant is owned by the Piura Electricity

to the trunk Maitencillo substation by a 220 kV and

Company (EEPSA) part of the Enersis Group. This new plant

approximately 40 km in length, double circuit transmission

required an investment of US$ 105 million, and supplies

system.

additional energy to the System.

In 2009, Endesa Chile submitted the project to the

• During the year, the progress in optimizing the Salaco

Environmental Impact Assessment Bureau. A regulatory

Chain continued, which will represent a growth in

change occurred in June 2011 regarding emissions

installed capacity of 144.8 MW and an additional

requirements, which led to major changes in the project.

average increase on expected energy generation of 482

On June 25, 2012, the EAC (Environmental Assessment

GWh for Emegesa. The plants will begin operating with

Commission) of the Atacama Region rejected the project,

their original names Salto II (from 19.4 MW to 35 MW);

after which Endesa Chile submitted a Claim to the

Laguneta (from 18 MW to 36 MW) and Dario Valencia

Committee of Ministers.

(from 38.8 MW to 150 MW). The project has duration of

THE COMPANY’S BUSINESSES

2013 ANNUAL REPORT ENERSIS
24 months. On November 6, 2013, the first modernized

• Closure of Taltal Project Combined Cycle. In December

unit of the Salaco project began operating; this was unit

2013, an Environmental Impact Statement (EIS) was

2 of the filo de agua Darío Valencia Samper power plant,

entered to process. which environmentally optimizes

with an installed capacity of 50 MW. This unit generated

the project, replacing the originally considered seawater

46.3 GWh from the moment of its commissioning to

cooling system with a dry cooling system with air coolers.

midnight of December 31st.

The proposed closure of the combined cycle will use the

two existing gas turbines of 123 MW each, and add a

• In November 2013, the Water Works Permit authorizing

steam turbine of about 130 MW. Thereby, the Taltal plant

the intervention of water courses for the construction

will be able to generate a net power of around 370 MW

of the Los Cóndores plant was obtained. The generation

and display an efficiency gain from the current 35% to

project has had an environmental approval since

about 50%. The injection of energy of the combined cycle

November 2011. Regarding transmission, in May 2013, a

plant is through the existing double circuit 220 kV-Diego

modification of the environmental approval for the line

de Almagro-Paposo transmission line.

connecting the power plant to the SIC was obtained.

The Los Cóndores Hydroelectric Project will be located in

• Renaico Wind Farm. During the 2013, tenders for civil

the Maule Region, Province of Talca, Municipality of San

works contracts, internal connections of the park,

Clemente. It includes the construction of a run-of-the-

transmission line, transformer substations and equipment

river hydroelectric plant of about 150 MW of installed

were constructed. The project is located in Region IX,

capacity, with an average annual generation of 560 GWh,

in the Renaico commune. It consists of 44 2 MW wind

which would use the waters of the Laguna del Maule

turbines, with a hub height of 95 meters, reaching a

reservoir by means of a 12km long adduction. The plant

total capacity of 88 MW to generate 255 GWh / year.

will be connected to the SIC by a 220 kV double circuit

The connection of power to the SIC will be conducted by

line between Los Cóndores power plant and the Ancoa

means of a single circuit, 27 km transmission line 220 kV,

substation, with a length of approximately 90 km.

to the future Bureo substation, in Region VIII.

• In November and December 2013, respectively,

• Piruquina Mini-Hydro Project. During 2013, the basic

Addendum No. 4 to the EIS of the generation project and

engineering was completed and the processing of the

Addendum No. 4 to the EIS for the transmission project for

application for the Water Works Permit was continued.

the Neltume Hydroelectric Project were submitted. This

It is expected that all the necessary permits for the

project will be located in the Los Ríos Region, Province of

construction of the project will be granted during the first

Valdivia, Municipality of Panguipulli. The initiative includes

half of 2014. The Piruquina Mini-Hydro Project is located

the construction of a run-of-the-river hydroelectric power

in Region X, Chiloe Island, in the Dalcahue commune and

plant with an installed capacity of 490 MW, with an

seeks to harness the Carihueico river water. The plant

average annual generation of 1,885 GWh, which would

includes the installation of two Kaplan and one Francis

build the existing energy potential between Neltume and

turbines, and has an installed capacity of 7.9 MW and an

Pirehueico lakes. The plant will be connected to the SIC in

estimated average generation of 33.7 GWh / year.

the Pullinque area by a 220 kV double circuit transmission

line. Also, during the second half of 2013, the SEA began

the process of consultation with indigenous communities

which are territorially present in the area, both for the

plant and the transmission line, in order to comply with

ILO Convention c N° 169.

The project is currently completed with basic engineering

finalized and under environmental assessment process

by the Environmental Assessment Agency (SEA) of the

region.

Investments and
financial activities

INVESTMENTS AND FINANCIAL ACTIVITIES

2013 ANNUAL REPORT ENERSISCapital Increase

In July 2012 Endesa SA proposed the Enersis Board of Directors to conduct a Capital Increase

consisting of a real non-cash contribution by the controller and a cash contribution by

minority shareholders. The aim of this operation was to leave Enersis as the only investment

vehicle of Endesa in Latin America and also provide it with resources to enable it to carry out

a major expansion plan, consisting of purchases of minority interests in companies already

consolidated and execute M & A operations.

The March 28, 2013, after the purchase of 100 % of the shares offered, the Capital Increase

operation was totally and successfully completed. The amount collected in the operation,

which became the more substantial Capital Increase to date in the country, breaks down

as follows: Completed the periods of first preferred options in Chile, USA and Spain, the

shareholders of the company purchased a total of 16,284,562,981 shares, representing

99.04 % of the total authorized for issuance, totaling U.S. $ 5,961 million (of these shares,

Endesa Spain, by contributing with its holdings grouped in the Southern Cone, purchased

9,967.630.058 shares). Meanwhile, the remaining 157,043,316 shares left at the end of the

periods of first preferred option, was placed entirely in an auction held on March 28 in the

Santiago Stock Exchange, raising $ 60.6 million, auctioning off all the packages at $ 182.30

per share.

As a result of the Capital Increase, all shares of Endesa Spain in South America were unified

in Enersis, and gave the company the resources to carry out a meaningful plan for growth

and expansion in the region via purchase of minority and M & A. Enersis incorporated

shares in operating power generation, transmission and distribution companies in South

America, representing during 2013 a net income an increase of approximately $ 255 million

considering only three quarters, equivalent to an annualized amount of $ 340 million,

increase which was achieved without incurring in further incremental transaction costs and

risks, since these are companies, which almost entirely, were managed by Enersis.

The contribution of shares in Emgesa

and Codensa, both in the Colombian

market, allow Enersis to consolidate

these investments in their own right.

The addition of Piura (Eepsa) implies

increased presence in the power

generation sector in Peru, through an

asset that presents attractive growth

opportunities. Thus, the incorporation

of Cono Sur will rebalance Enersis

net income, reinforcing the weight of

Colombia and Brazil, which are growing

at very significant rates, while in terms

of market, the company established

itself as the main power generator

listed in South America also increasing

its weight in the IPSA, climbing from an

eighth to a third place in terms of stock

market capitalization.

20, 2012 by the Enersis Extraordinary Shareholders’ Meeting,

From the second quarter of 2013, the

the company acquired the shares in its Inversiones South

companies: SAC Generalima, Cabo

America Ltda. subsidiary, producing consequentially the

Blanco Electric SAC, Empresa Electrica

termination of the company. Thus, Enersis acquired the

de Piura SA, Endesa Cemsa SA, Dock

shares that had been provided by Endesa Spain as payment

Sud SA Investments, and Central Dock

for shares of Capital Increase, becoming the direct owner

Sud SA entered the Enersis Group

of the contributed shares, a fact that has produced legal

scope of consolidation, All of them

effects since October 1, 2013. Investments South America

contributed by Endesa Spain, grouped

Ltda. had previously absorbed, during last July, Southern

in Southern Cone Holdings SLU, as

Cone Society, a company that originally grouped the social

part of the Capital Increase process

contributions that Endesa Spain brought under the Capital

conducted by the company. The income

Increase operation.

of these companies consolidated in the

Enersis Group was an increase in the

Thanks to the new shares received in this transaction, the

consolidated statement of financial

company’s net profit attributable to Enersis shareholders

position of M $ 110,222,618 in current

grew from 42% in 2012 to 60% in 2013.

assets, M $ 163,196,934, in non-current

assets, M $ 180,637,895 in current

All records mentioned in this chapter are available to the

liabilities and M $ 54,241,781 in non-

shareholders at the Enersis website (www.enersis.cl) as

current liabilities.

well as at its head office located in Avda. Santa Rosa N°76,

Santiago.

In October 2013, and having closed the

corporate simplification process of the

Capital Increase approved in December

INVESTMENTS AND FINANCIAL ACTIVITIES

2013 ANNUAL REPORT ENERSISInvestment Plan

We Coordinate the overall financing

strategy of our subsidiaries and

intercompany loans in order to

optimize the management of debt in

addition to the terms and conditions

of our funding. Our subsidiaries

develop separate capital investment

plans which are financed on the basis

of internally generated funds or direct

funding. One of our goals is to focus

on investments that will yield long-

term profit, such as projects to reduce

energy losses.

Our investment plan is flexible enough

to adapt to changing circumstances

by assigning different priorities to

each project according to profitability

and strategic opportunity. Investment

priorities are currently focused on

developing the works plan in Chile,

Peru and Colombia.

During 2013, by means of the Capital Increase, some companies that brought their

respective projects (e.g. Reserva Fría in Peru) joined the Enersis perimeter.

Moreover, the change in the Consolidation Standard implied the deconsolidation

of some companies for comparative purposes, in 2012 Endesa was certified to this

standard.

Generation

Distribution

Our capital expenditures in generation

During 2013 investments were made for a total of $ 455

totaled $ 368 billion in 2013, of which

billion, mainly to meet the needs of consumption, due to

$ 135 billion were in Chile and $ 233

population growth and new customers, via investment

billion out of the country, while in 2012,

not only in connection, but also in increases in capacity

these expenses totaled $ 311 billion, of

and strengthening the facilities in AT, MT and BT of the

which $ 68 billion were in Chile and the

companies. Of this total, $ 55 billion were invested in Chile

rest abroad.

and $ 400 billion abroad. Moreover, in 2012, investments of $

395 billion (homogenization by changes to the Consolidation

In Chile our main investments during

Standard) were made to serve the consumption needs,

2013 were concentrated on completion

due to population growth and new customers, as well as

of the outstanding works of Bocamina

to improve quality of service. Of this total, $ 52 billion were

II, 350 MW. In Colombia, our investment

invested in Chile.

expansion was concentrated in

the construction of the El Quimbo

In Chile during 2013, Chilectra made investments totaling $

Hydroelectric Project, 400 MW and

55 billion, related primarily to meet growing energy demand,

the commissioning of the first unit of

quality of service, safety, information and remote control

the Cadena Salaco Project which will

systems, and losses.

expand the power of the complex by

145 MW. In Peru, investments were

In the 2013 results, the expansion in 150 MVA transformation

concentrated mainly in commissioning

capacity, particularly in the Chacabuco (110/23 kV), San

Reserva Fría Project with 183 MW.

Cristobal (110/12 kV) and Recoleta (110/12 kV) substations,

Additionally, the investment and

each with an expansion of 50 MVA are worth mentioning.

development studies of pipeline

projects, both hydraulic as well as

AT networks were repowered with high capacity investments

thermoelectric in Chile and in the region

in reinforcing the 110 kV Chena - Cerro Navia lines in the Tap

continue.

San Jose - Pudahuel section, and in two 110 kV branchings

(taps) at the Lo Boza and San Jose Substations.

In Argentina, during 2013 Central

Costanera had contributions from

In MT networks, 3 new feeders were built: Magdalena (12

the Government by the Encos Plan

kV) in the Alonso de Cordova substation; Chiloé (12 kV)

project for $ 36 billion. However, these

in the Club Hípico substation; and Huelén (12 kV) in the

contributions are not considered in the

San Cristobal substation. And to supply large customers,

total capital expenditures reported

Santa Clara (12 kV) in the Recoleta substation. Also, the

here.

construction of 2 additional supply lines to be commissioned

during 2014 was advanced.

INVESTMENTS AND FINANCIAL ACTIVITIES

2013 ANNUAL REPORT ENERSISFinally the investment to increase

automation of the MT Network in

Chilectra SA continued, where 91 new

remotely controlled equipment were

added to the system, and a special plan

on 127 existing pieces of equipment in

the network with capacity of remote

command was implemented, allowing

to add 100 of these to the SCADA

system during 2013 by completing

191 new units in exploitation; also, a

second project of self-reconfiguration

of the MT network was implemented

in the Portezuelo and Aguas Claras

power supply lines to improve the

quality of service of the Lampa sector,

which adds to the one implemented in

Colina in 2012; and physical works on

the MT network and the installation of

equipment at the Smart City project was

completed in the Ciudad Empresarial in

Santiago which will be commissioned in

2014 with the implementation of a STM

centralized control platform, scheduled

for the first four months.

In Argentina, our subsidiary Edesur

made investments totaling $ 106 billion, mainly concentrated in loss reduction

made investments of about $ 96 billion

projects, quality of distribution networks and connecting new customers.

In the case of Brazil, the total investment reached $ 173 billion. Specifically, Ampla

primarily related to the investment

plan submitted to the Argentinean

In the case of Coelce, investment totaled $ 67 billion, mainly for networks and

government according to the

connection projects intended to bring in new customers. Necessary investments

obligations in ruling 347/2013. This plan

were also made to support the sustained growth in demand in the state of Ceará

involved major electrical infrastructure

in recent years.

works allowing network expansion

and renovation of low and medium

In Colombia, the investments totaled $ 72 billion in projects aimed at expanding

voltage networks. Finally, the medium

to serve new customers and meet the growing demand in an integrated manner

voltage network telecontrol project

in the different voltages of the distribution network.

which began in 2011 continued, and

the technical quality of the service was

Investments by Codensa focused primarily on connections to new customers and

improved.

networks to improve service quality.

In Peru, Edelnor invested a total of $ 58 billion focused primarily in meeting the

growth in demand, always seeking to strengthen safety in the Medium and Low

Voltage feeder lines.

Financial
activities

The financial activities of the Enersis

group have always been an important

and a priority issue. Work has been

conducted to improve the financial

profile of both Enersis and its

subsidiaries, issuing equity and debt

with the best market conditions.

The most significant financial events in

the history of Enersis include, among

others, the following events:

Between 1988 and 1992 Enersis

shares began trading on the local stock

exchanges and on October 20, 1993, in

In 2000, Enersis conducted a new Capital Increase by

the New York Stock Exchange (NYSE),

approximately $ 525 million.

by means of the ADSs, under the NEMO

ENI.

On December 17, 2001 it began trading in the Latin American

Stock Exchange in the Madrid Stock Exchange (LATIBEX)

In February 1996, Enersis made a second

Enersis shares traded under the NEMO XENI.

issue of shares in both the local and

international markets. In addition, it

Between June and December 2003, Enersis conducted

issued bonds in the United States for a

another Capital Increase, which allowed increasing the equity

total of U.S. $ 800 million, due in 2006,

base of the company to more than US$ 2 billion.

2016 and 2026.

In 2012 financial transactions, both refinancing and new

In February 1998, Enersis again

financing and hedging in the foreign subsidiaries for a total

increased its capital and issued bonds in

amount equivalent to U.S. $ 1,376 million, of which $ 117

the amount of $ 200 million.

million came from Argentina, U.S. $ 533 million from Brazil,

U.S. $ 623 million from Colombia and U.S. $ 104 million from

Peru .

In March 2013 The Capital Increase by over U.S. $ 6 billion

was successfully completed, the largest by a Chilean

company.

Due to amendments made between 2006 and 2010 to local

bonds contracts, Yankee bonds, and credit lines under the

New York Law of Enersis and Endesa Chile to date, default

events of any foreign subsidiary have no effect on the

Chilean debt matrix.

INVESTMENTS AND FINANCIAL ACTIVITIES

2013 ANNUAL REPORT ENERSISNational Finance

Enersis consolidated accounts at the

end of 2013 with committed credit lines

available for the equivalent of U.S. $ 757

million.

Enersis and Endesa Chile and its

respective subsidiaries in Chile and

abroad, also feature at the end of 2013

with uncommitted credit lines available

for the equivalent of U.S. $ 925 million.

During 2013, Enersis maintained

available for withdrawal the entire

Additional to the already mentioned credit contracts and bonds programs, Enersis

program of local bonds for UF

and Endesa Chile with its Chilean subsidiaries ended with available cash of US$

12.5 million, program registered

1,728 million, corresponding to Enersis the sum of U.S. US$ 1,620 million and to

in the Securities Register of the

Endesa Chile US$ 108 million.

Superintendence of Securities and

Insurances in February 2008.

Regarding the consolidated financial debt of Enersis until December 2013, it

At the end of 2013 Commerce Effect

Chile consolidated debt. This debt is primarily composed of international bonds,

reached U.S. $ 6,921 million. Of this amount, U.S. $ 3,836 million related to Endesa

Lines for a total amount of up to U.S.

local bonds and bank debt.

$ 200 million for both Enersis and

Endesa Chile remained unused. These

It should be noted that the consolidated cash of Enersis ended at U.S. $ 3,065

Commerce effect lines were registered

million, therefore, the consolidated net debt amounts to U.S. $ 3,855 million.

in January 2009 in the Securities

However U.S. $ 1,422 million in instruments placed over 90 days remain.

Securities and Insurance.

As for bank financing, Endesa Chile has an existing debt of U.S. $ 200 million for

the syndicated loan in June 2008 and it has its final due date in June 2014, in

which BBVA Bancomer is the Agent of the transaction.

International
Finance

2013 was marked by the poor

performance of world powers such as

the U.S. and China which did not meet

their growth expectations, however,

about the end of the year, some signs of

recovery were observed.

With the announcement of the FED on

the withdrawal of monetary stimulus,

that would imply a gradual increase

in interest rates in dollars. This started

a trend of depreciation of emerging

currencies.

Debt markets in most countries where

the assets Enersis are located, remained

Main completed financial operations

open and allowed Enersis foreign

subsidiaries to continue refinancing

Argentina

its debt to longer terms, including

Endesa Costanera conducted a Capital Increase for $ 85

improving the levels of interest rates

million and refinanced bank due dates for $ 34 million.

and complying with a policy that

allows controlled financial risk. In

El Chocón entered into a new syndicated loan for an amount

Argentina the complex operational

of $ 23 million and refinanced bank due dates for $ 20

situation has created instability in the

million.

cash flows of the companies, however,

through various operating and financial

Edesur achievement the repay all of its loans secured by US$

activities; the balance has been

15.5 million and refinance US$ 33 million with local banks.

achieved at the end of 2013.

In 2013 financial transactions were

conducted for both refinancing as well

as new financing and hedging in the

foreign subsidiaries for a total amount

of U.S. $ 1,473 million, of which $ 208

million came from Argentina, U.S. $ 410

million from Brazil, U.S. $ 686 million

from Colombia and U.S. $ 169 million

from Perú.2.3.

INVESTMENTS AND FINANCIAL ACTIVITIES

2013 ANNUAL REPORT ENERSISBrazil

Exchange rate hedging Policy

Endesa Brazil, by means of a corporate

simplification operation, absorbed

Ampla, Investimentos and Investluz

Exchange rates

investment vehicles.

The exchange rate hedging policy of the Group is based on cash

flows and aims to maintain a balance between the indexing

Ampla obtained the release of $ 152

of flows indexed to foreign currency (dollar), and the levels of

million under the program of CAPEX

indexation of assets and liabilities in that currency. During 2013,

financing with BNDES. Coelce in turn,

the financial transactions conducted by Enersis allowed it to

obtained the release of $ 79 million,

maintain a level of dollar liabilities adjusted to the expected cash

under the same program with BNDES.

flows in such currency, with the exception of Argentina.

Cachoeira undertook a capital reduction

As part of this policy, in Chile, forwards were hired for U.S. $

of $ 96 million, of which Endesa Brazil

900 million to cover dividends from subsidiaries in different

received 99.6%.

currencies. The rest of the group companies in the region

Colombia

Emgesa issued local bonds amounting

to U.S. $ 293 million with a term of 6 to

12 years, and formalized the refinancing

contracted exchange rate forwards for U.S. $ 40 million to

exchange future disbursements in accordance to the indexing

of their flows.

Interest rates

of a syndicated loan for U.S. $ 158

The policy of the Group is to maintain fixed and protected

million. Codensa meanwhile, issued

the debt levels over the total net debt, within a band of plus

local bonds for US$ 195 million with a

or minus 10% with respect to the ratio established in the

term of 5 to 12 years.

annual budget debt levels. In case of any deviation from the

Peru

submitted budget, hedging transactions are made based on

market conditions.

Edelnor performed local bond

As of December, the most protected consolidated fixed debt

issues totaling $ 88 million and has

level on net debt was of 72%.

formalized bank loans for U.S. $ 39

million. Furthermore, it is the first

Peruvian corporation to contract hiring

committed bank credit lines with a term

of 2 years for an amount of U.S. $ 39

million. Edegel structured a program of

corporate bonds for an amount of U.S. $

350 million.

Risk Classification

The ratings are supported by the diversified asset portfolio

held by the company, strong credit parameters, suitable

composition of debt and ample liquidity. The geographical

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

diversification of Enersis in Latin America provides a

& Phelps ranked Enersis for the first time at BBB +, i.e.

natural hedge against the various regulations and weather

investment Grade Company. Later, in 1996, Moody’s rated

conditions.

long-term debt in foreign currency of the company at Baa1.

Over time, most of the risk ratings have varied. Currently, all

are in the “investment grade” with stable outlook, which

are based on the diversified asset portfolio, liquidity and

appropriate debt service hedging policies.

International Rating

Enersis
Corporate

S&P
BBB+ / Stable

Moody’s
Baa2 / Stable

Fitch
BBB+ / Stable

Enersis subsidiaries are financially strong and hold a leading

position in the markets where they operate.

Local Rating

Summarizing the major events that have taken place over the

last few months, we can highlight the following:

Enersis
Stocks
Bonds

Fitch

Feller Rate
1st class, Level 1 1st class, Level 1 1st class, Level 1
AA / Stable

Humphreys

AA / Stable

• On February 28, 2012, Humphreys ratified the “AA”

rating for Enersis local bonds, “AA / level 1” commercial

paper program and “1st class level 1” to the shares of the

company.

Properties and Insurance

The company owns some equipment and substations

located in the Metropolitan Region. At the same time, holds

• On July 1, 2013, Feller Rate confirmed “AA” rating for

insurance against risks such as fire, lightning, explosion,

existing bond, shares and commercial paper local

malicious acts, earthquakes, floods, mud avalanches,

programs, as well as confirming the stable outlook.

terrorism, liability and others.

• On August 2, 2013, Standard & Poor’s Also confirmed the

International Classification for Eneris as “BBB +” with a

Brands

stable outlook.

• On August 9, 2013, Fitch Ratings ratified the Eneris rating

the speed of light Enersis PLC.

The company has registered the brand Enersis and Internet at

on local and foreign currency as “BBB +”, as well as its

classification of long-term national scale rating at ‘AA (cl)’.

The outlook is “stable”.

• Finally, Moody’s ratified the corporate classification of

Enersis as Baa2 with stable outlook on September 30,

2013.

INVESTMENTS AND FINANCIAL ACTIVITIES

2013 ANNUAL REPORT ENERSISS.A. Automacao E Controle, Integratech S.A., Ims Srl –Mei Srl

– Ute, Turismo Patagonia S.A., Zeppilli Enrique Félix, Central

Puerto -SADESA, Termoandes – AES, Central Térmica Güemes

/HINISA/HIDISA – Pampa Energía, CT Alto Valle – DUKE

Energy.

Brazil: Energisa, Petrobrás, Rio Polímero (Braskem),

Votorantim, Cedae, Vicunha Ind De Implemen Rodoviarios

Ltda., Grendene S A, Cagece Cia Agua Esgoto Do Ceara,

Votorantim Cimentos N/Ne S.A., Gerdau Comercial De

Acos S/A, MPX, BTG Pactual, Rhodia, Enertrade, CPFL Brazil,

Coelce, Compel-Const.Mon.Proj.Elet.Ltda., Personal Service

Rec Hum Asses Emp, Landis+Gyr Equip. Medicao Ltda.,

Provider Solucoes Tecnol. Ltda., Unimed Sao Goncalo-

Niteroi Med Hosp, Porto Do Pecem Geracao De Energia S,

Cosampa Projetos E Construcoes Ltda., Eficaz Engenharia E

Servicios Ltd, B&Q Energia Ltda., Endicon Eng. Instalacoes

E Const. Ltd., Andritz Hydro Inepar Do Brazil S/A, Safira

Admin Comercializadora, Edp – Comercializ E Servs. De Ener,

Quatira Energia Sa – Pch Pari, Energisa Solucoes S/A, Alstom

Suppliers, customers and
relevant competitors

Being Enersis a company that operates mainly in the field of

Power O&M ltd, Cogerh-Cia Gestao De Rec.Hidricos, Cagece,

generation and distribution of electricity has been taken to

Alstom Brazil Ltda., Jgp Consultoria E Particip. Ltda., AES SUL,

consider, besides its own appropriate suppliers, customers

CPFL Piratininga. EDP Bandeirante, Celpe, Elektro, Ceming

and most relevant competitors of its main subsidiaries in

GX, Duke Brazil Gx, CPFL Gx, AES Tiete, Copel Gx, Termope

Chile and other countries in Latin America where it operates:

(Neoenergia) y Eneva (MPX).

Consistent with the aforementioned, it was established that

Colombia: Alumbrado Público Bogotá, Opain S.A., AJE

suppliers, customers and most relevant competitors to the

Colombia S.A., Ministerio De Hacienda, Telefónica Móvil de

company are:

Colombia, CODENSA, CARIBE, TOLIMA, EBSA, EPM, Deltec

S.A, Cam Colombia Multisevicios S.A.S., Consorcio Energía

Chile: Metro S.A., Gerdau Aza S.A., Mall Plaza S.A., CGE,

Colombia S A. Cene, Consorcio Mecam, Villa Hernández y

Saesa, Chilquinta S.A., Emel, Mitsubischi Corporation, Salfa

Compañía Sas, Transportes C&C, Transportes Especializados

S.A., Securitas S.A., Crompton Greaves Limited, Shaffner

Jr Sas, Corporación De Taxis De Colombia, Vatia, Enertotal,

S.A., Cobre Cerrillos S.A., Colbún S.A., AES Gener, Tinguiririca

Enermont, Dicel, Ruitoque, EPM, ISAGEN, GELCELCA, CHIVOR,

Energía, Pacific Hydro, Guacolda, E-Cl (Suez).

EPSA.

Argentina: Aysa S.A., Coto C.I.C.S.A., Telefónica Argentina

Peru: Corporacion Celima, Filamentos Industriales S.A.,

S.A., Metrovías S.A., Gobierno de La Ciudad de Buenos

Corporación Lindley S.A., Peruana de Moldeados S.A.,

Aires,Cerámica Cerro Negro, Molinos Cabodi Hnos. S.A.,

Lima Airport Partners S.R.L., Edelnor, Votorantin Matais

Industrias Termoplásticas Argentinas, Telecón Argentina,

Cajamarquilla, Cruz del Sur, Compañía Minera Antamina,

Yesos Knauf (Plana Mendoza), Minera Lumbrera, Air Liquide

Electrosur, CobraPerú S.A., Calatel Infraestructuras y Servicio,

Argentina S.A., Chevrón Argentina S.R.L, Petroquímica

Montajes e Ingeniería Arce, S.L., Compañía Americana de

C. Rivadavia S.A. Papelera Samseng S.A., Soc.Integrada

Multiservicio, Juan Galindo Slu Sucursal del Perú, Skanska del

de Buenos Aires Ute, Contrucsur S.R.L, Leccentro S.A.,

Perú S.A., Siemens S.A.C, Siemens Ag, Yikanomi Contratistas

Tecnodock S.R.L, Mor S.A., Masa Argentina S.A., Sarandi

Generales Sac, Enersur S.A., Enersur, Kallpa Generación,

Construcciones I. y C.S.R.L, Mitsubishi Corporation, Ingser

ElectroPerú, Coelvisac, Termoselva S.R.L., Compañía Eléctrica

Ingeniería y Servicios Srl, Grúas Móviles Mix S.A.C.I.F, Reivax

El Platanal

Risk factors

RISK FACTORS

2013 ANNUAL REPORT ENERSISThe Group’s companies are exposed to certain risks that are managed by systems

that identify measure, limit concentration of, and monitor these risks.

The main principles in the Group’s risk management policy include the following:

- Compliance with corporate governance standards.

- Strict compliance with all the Group’s internal policies.

- Each business and corporate area determines:

I. The markets and product areas in which it will operate based on its

knowledge and ability to ensure effective risk management.

II. Criteria regarding counterparts.

III. Authorized operators.

- Business and corporate areas establish their risk tolerance in a manner

consistent with the defined strategy for each market in which they operate.

- All of the operations of the businesses and corporate areas are conducted

within the limits approved for each case.

- Businesses, corporate areas, lines of business and companies design the risk

management controls necessary to ensure that transactions in the markets are

conducted in accordance with Enersis’ policies, standards, and procedures.

Interest Rate Risk

Interest rate variations modify the fair value of those assets

and liabilities that accrue a fixed interest rate, as well as

the future flows of assets and liabilities based on a variable

interest rate.

The objective of the management of interest rate risk is

to obtain a balance in the debt structure that permits

minimizing the debt cost with reduced volatility in the

income statements.

In compliance with the current interest rate hedging policy,

the portion of fixed and/or hedged debt to total net debt

was 72% as of December 31, 2013.

Depending on the Group’s estimates and debt structure

objectives, hedge transactions are carried out by contracting

derivatives that mitigate these risks. The instruments

currently used in compliance with the policy are interest-rate

swaps that convert variable to fixed rates.

The structure of Enersis Group’s financial debt by fixed

and/or hedged and variable interest rates, and after the

derivatives contracted, is as follows:

Net Position:

Fixed Interest Rate
Variable Interest Rate
Total

31-12-2013
%
72%
28%
100%

31-12-2012
%
60%
40%
100%

01-01-2012
%
61%
39%
100%

RISK FACTORS

2013 ANNUAL REPORT ENERSISExchange rate risk

Commodities Risk

Exchange risks are mainly related to the

The Enersis Group is exposed to the price fluctuation risk of some commodities,

following transactions:

basically through:

- Debt contracted by Group companies

- Fuel purchases for electricity generation.

in currencies other than those to

which their cash flows are indexed.

- Energy trading on the local markets.

- Payments for the acquisition of

In order to reduce risks in extreme drought conditions, the Company has designed

project-related materials and

a commercial policy that defines sales commitment levels that are consistent with

payments of insurance premiums in

the capacity of its generating plants in a dry year, and includes risk-mitigation

currencies other than those to which

clauses in some non-regulated customers’ contracts. In the case of regulated

their cash flows are indexed.

customers subject to long-term tender processes, certain indexation clauses are

- Revenues of Group companies

included to reduce exposure to commodities.

that are directly linked to dollar

In view of the operative conditions faced by the electricity generation market in

fluctuations.

Chile, like drought and volatile commodity prices on the international market, the

Company is constantly reviewing the benefits of contracting hedges to mitigate

- Cash flows from foreign subsidiaries

the effects of these price variations on its results. As of December 31, 2013, there

to their parents exposed to exchange

are no commodity hedges outstanding. As of December 31, 2012, there were

rate fluctuations.

swap transactions for 462 barrels of Brent oil for January 2013 and 365 thousand

tons of coal for the period January-June 2013. (There were no hedges outstanding

In order to mitigate exchange risk,

as of January 1, 2012).

the exchange rate hedging policy of

the Enersis Group is based on cash

These hedges may be modified, or include other commodities, depending on the

flows and seeks to maintain a balance

operative conditions which are constantly being reviewed.

between dollar-indexed flows and the

levels of assets and liabilities in that

currency. The objective is to minimize

exposure of cash flows to variations in

Liquidity Risk

the exchange rate.

The Group maintains liquidity policy that consists on contracting committed

Cross-currency swaps and forward

necessary to support projected needs for a period, according to the situation and

long-term credit facilities and short-term financial investments, for the amounts

exchange contracts are the instruments

expectations in the debt and capital markets.

currently used to comply with this

policy. The policy also seeks to refinance

These projected needs include the maturities of net financial debt, i.e. after

debt in each company’s functional

financial derivatives. For further details about the characteristics and conditions of

currency.

the financial debt and financial derivatives, see Notes 19 and 21 and Appendix 4.

As of December 31, 2013, the Enersis

In the electricity generation business, in some countries, it is

Group shows a liquidity of ThCh$

possible to cut off supplies in the event of non-payment, and

1,606,387,569 in cash and cash

in almost all the contracts, there is a contract termination

equivalents and ThCh$ 208,900,680 in

clause for events of non-payment. Credit risk is therefore

available committed long-term credit

monitored constantly and the maximum amounts exposed

lines. As of December 31, 2012, the

to non-payment are measured, although these are limited, as

Enersis Group had a liquidity position

already explained.

of ThCh$ 815,832,061 in cash and cash

equivalents and ThCh$ 240,683,000

In the case of the electricity distribution companies, supplies

in committed long-term credit lines

may be cut off by our companies in the event of non-

(ThCh$ 1,187,684,209 and ThCh$

payment by customers. This is applied in accordance with

238,832,000 respectively as of January

the current regulations in each country, which facilitates the

1, 2012).

evaluation and control of credit risk, which is also limited.

Credit Risk.

Assets of a financial nature:

The Enersis Group thoroughly follows

national and international financial entities (with a credit

up the credit risk

rating equivalent to investment grade) within limits

Investments of cash surpluses are made with first-class

established for each entity.

Trade accounts
receivable:

The credit risk corresponding to

In selecting banks for investments, only those of investment

grade are considered, according to the three principal credit-

rating agencies (Moody’s, S&P and Fitch).

accounts receivable derived from

Placements may be supported by treasury bonds of the

business activities has historically been

countries where we operate and/or paper issued by first-

very limited as the short-term nature

class banks, preferring the latter in offering the best returns

of the receivables does not allow

(always in accordance with current investment policies).

the accumulation of very significant

individual amounts. This applies to

The contracting of derivatives is carried out with highly-

both our electricity generation and

solvent entities so that all transactions are contracted with

distribution businesses.

entities of investment grade.

100

RISK FACTORS

2013 ANNUAL REPORT ENERSISRisk Measurement

Financial debt.

Derivatives for hedging debt, dividends and projects.

The calculated Value at Risk represents the possible loss of value of the above-

mentioned positions portfolio over a one-day time horizon with 95% of

confidence. The volatility of the risk variables that affect the value of the positions

portfolio has therefore been studied, including:

The US dollar Libor interest rate.

The usual local banking-practice indices for the different currencies in which our

The Enersis Group measures the Value

companies operate.

at Risk (VaR) of its debt and financial-

derivatives positions in order to monitor

The exchange rates of the different currencies involved in the calculation.

the risk assumed by the Company, thus

restricting volatility in its statement of

The calculation of Value at Risk (VaR) is based on generating possible future

income.

scenarios (at one day) of market values (both spot and term) for the risk variables,

using Bootstrapping methodology. The number of scenarios generated ensures

The positions portfolio used in the

compliance with the simulation convergence criteria. A matrix of volatilities and

calculations of the current Value at Risk

correlations between the various risk variables calculated from historical price-

is comprised of:

return values, has been applied to simulate the future price scenario.

Once the price scenarios are obtained, the fair value of the portfolio is calculated

using each of the scenarios, obtaining a distribution of possible values at one day.

The one-day 95% confidence VaR number is calculated as the 5% percentile of the

potential increases in the fair value of the portfolio in one day.

The valuation of the various debt and financial-derivatives positions included in

the calculation has been made consistently using the financial capital calculation

methodology reported to management.

Taking into consideration the above-mentioned hypotheses, the breakdown for

VaR in every mentioned type of position is the following:

Financial Positions

Interest Rate
Exchange Rate
Correlation
Total

31-12-2013
M$
17,236,855
3,074,168
(390,965)
19,920,058

31-12-2012
M$
15,933,808
2,346,380
(468,249)
17,811,939

The Value at Risk positions have evolved during the 2013 period and year 2012 as a

function of the start/maturity of the transactions.

101

Regulatory
framework of
the electricity
industry

102

REGULATORY FRAMEWORK OF THE ELECTRICITY INDUSTRY

2013 ANNUAL REPORT ENERSISDescription of the industrial sector

Enersis, its subsidiaries and jointly controlled companies as well as being engaged in the

generation, transmission, distribution and trading of power in five countries, each of which

has a regulatory, framework, energy matrices participating companies, and different

patterns of growth and consumption. Here is a brief summary of the main laws that

regulate the activity, the market structure and the most relevant aspects of the agents of

each of the countries in which the company operates.

Argentina

Structure of the industry

The Argentinean electricity sector is governed, among others, by Law No. 15,336 of 1960

and Law No. 24,065 of 1992. In the Bulk Electricity Market (MEM) there are four categories of

local agents (generators, transmitters, distributors and large customers) and foreign agents

(distributors in generation and distributors in demand) that are authorized to buy and sell

electricity as well as related products.

Originally, the generation sector was organized on a competitive basis (marginalism), with

independent generators selling energy on the spot market or MEM, or through private

contracts to customers in the MEM contract market or “Wholesale Electricity Market

Administrator company” (CAMMESA), through special transactions as contracts under Ruling

SE No. 220/2007 and Ruling S. E. N 724/2008. However, this regime changed substantially in

March 2013, when the Energy Department approved Ruling No. 95/2013, which establishes a

payment scheme for generation based on average costs, forcing to deliver all energy produced

to Cammesa. This new payment scheme came into force during February 2013.

103

Transmission operates under

monopolistic conditions and is

composed by several companies to

which the Federal Government grants

concessions.

The distribution, in turn, operates

under monopolistic conditions and

is serviced by companies that have

also been granted concessions.

Distribution companies are the sole

responsibility that electricity is available

to end customers within their specific

concession area, regardless if the

customer has a contract with the

distributor or with a generator.

In 2002, due to the economic downturn

that hit the country, Emergency Law No.

“Empresa Distribuidora de Energía del Sur S.A.” (Edesur) a

25,561 was passed. The Law broke the

Memorandum of Contract Renegotiation was signed with

parity with the U.S. dollar and imposed

the Government in 2006, which was subsequently ratified

the conversion into Argentine pesos of

by Decree N°1959/2006, which would gradually adapt its

obligations and rights assumed before

tariff revenues in order to ensure business sustainability. The

in U.S. currency. This forced nominal

implementation of this agreement was paralyzed since 2008

conversion from dollars to pesos had a

and until 2013, as we will later detail.

strong impact on the entire Argentinean

electrical industry. Additionally,

No generator, distributor, large user, nor any company

the Government approved several

controlled by any of these or under its control, may be the

regulatory measures that gradually

owner or a majority shareholder of a transmission company

intervened in the development of the

or its controlling companies. At the same time, transmission

industry. The Emergency Law has been

companies are forbidden to generate, distribute, buy and/

subject to successive extensions and

or sell electricity. Distribution companies cannot own

depending on the last one, approved

generation units.

by Law 26,896, will be valid until

December 31, 2015. The conversion

Regulated customers are supplied by distributors at

of the economy to pesos and the

regulated tariffs, unless they have a minimum capacity

devaluation of the economy forced

demand of 30 kW. In this case, they are considered as “large

the renegotiation of all concession

customers” and are free to negotiate their prices with the

contracts. Specifically, in the distribution

generation companies.

sector and within the company we own

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REGULATORY FRAMEWORK OF THE ELECTRICITY INDUSTRY

2013 ANNUAL REPORT ENERSISRegulation of generation companies

The regulation of the generation companies has changed significantly since

it began by means of Law 24,065 until Ruling No. 95/2013. According to the

Law, all generator agents of the MEM must be connected to the SIN (National

Interconnected System) and are required to comply with the order of dispatch

to generate and deliver power in order to be sold in the spot market and the

forward market (MAT). Distribution companies, marketers, and large customers

that have signed supply contracts with private generating companies, pay the

contract price, directly to the generator and also pay a toll to the transmission and

distribution company for the use of its.

In order to stabilize generation prices regarding the rate paid by the customers,

the market defined a seasonal price which is the price of energy paid by dealers

for their purchases of electricity traded in the spot market. This price is determined

every six months by the Secretary of Energy after Cammesa has made their spot

price projections for the period considered. To adjust for differences between

this price and the actual cost of the generation a stabilization fund was originally

created. If the seasonal price was lower than the cost of generation, money

is withdrawn from the fund to compensate generation, if the situation is the

105

opposite, money is contributed to the fund. Since 2002 the

2010 the generating companies, in which Enersis participates

Ministry of Energy in practice has kept the average seasonal

along with other companies, took part in the creation of

price unchanged. This has created a significant shortfall

another trust fund for the construction of another combined

in the stabilization fund, which has been covered by the

cycle plant which is currently under construction. Part of their

Argentinean government, by means of increasing larger

credits for the energy they sold during the years 2008-2011

subsidies.

was also destined to this new work.

Rulings passed due to the Emergency Law, had a significant

In 2012, as part of the agreements reached with the

impact on energy prices. Among the measures implemented,

government to allow the development of operations of our

Ruling SE 240/2003, which amended the way in which the

subsidiary signed an agreement for the implementation of

spot price is established by decoupling the calculation of

an investment plan in units of Central Costanera in order to

marginal operating costs, is worth noting. Ruling SE No.

optimize the reliability and availability of such equipment, for

240/2003 has the purpose of preventing price indexation

a total of U.S. $ 304 million, within a period of 7 years. The

linked to the dollar, despite the fact that the dispatch

agreement also provides for the payment of obligations of

of generation is still based on the actual fuel used, the

the maintenance contract (Long-Term Service Agreement-

calculation of the spot price is based on the absolute

LTSA) of the combined cycles of the plant.

availability of gas to meet the demand, even in circumstances

where many generators did use alternative fuels, such as

Finally, Ruling S. E. No. 95/2013 leaves the marginality price

diesel, due to the difficulties in the supply of natural gas.

system, ushering in a mechanism for the recognition of

The value of water is not considered if its opportunity cost

average costs. The ruling recognizes the compensation of

is higher than the cost of natural gas generation. The ruling

fixed, variable costs and an additional remuneration. Fixed

also sets a limit to the spot price of 120 Ar$/MWh, which is

costs are paid (in $ / MW- hrp) in terms of technology, scale

still valid. Actual variable costs of thermal units that burn

and Available Power. It is also subject to the achievement

liquid fuels are paid by CAMMESA through a mechanism

of set availability goal. As for the variable, operating and

called Transient overruns Dispatch (STD).

maintenance costs based on the energy generated (in $ /

MWh) are remunerated depending on the fuel used and the

Moreover, based on the provisions of the Emergency Law,

technology itself (the generators do not have fuel cost as it is

the per capacity payment was reduced from 10 USD to 10

provided CAMMESA). Finally, the additional compensation is

pesos per MW-hrp (hrp: Remuneration hours of power).

calculated based on the total power generated (in $ / MWh),

Subsequently, the power guarantee was slightly increased

considering the technology and scale of the generator. Part

to 12 pesos, about 1/3 of the amount paid before the 2002

of that income is accumulated in a fund to be used to finance

crisis.

investments in new infrastructure in the electricity sector.

In December 2004, the Secretary of Energy approved the

The ruling impacts generators, co-generators and self-

Act of Accession for the Rehabilitation of the bulk electricity

generators, except plants which became operational since

market by Ruling 1427/2004. The Act was signed by most of

2005, nuclear power plants and Binational hydroelectric

the generating units, including generating companies owned

generation; Centralized and reserves the business

by Enersis. Under this ruling, the Secretariat established a

management and delivery of fuels in Cammesa and

trust fund called FONINVEMEM, where private generators

suspended bilateral energy contract signing between

contributed part of their credits for energy sold during

generators and MEM agents, the latter shall acquire their

the years 2004 to 2007 for the construction of two new

power demands from CAMMESA.

combined cycle plants. In addition to this new capability, in

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REGULATORY FRAMEWORK OF THE ELECTRICITY INDUSTRY

2013 ANNUAL REPORT ENERSISRegulation in distribution companies

savings based on a reference consumption. The net difference

between bonds and penalties were originally deposited in the

The distribution activity is carried out by companies which

Stabilization Fund of the MEM, but this was later amended

obtain concessions. Distribution companies must supply all the

by request from Edesur and Edenor, so that distribution

demand for electricity in their area exclusive at prices (rates)

companies could use these resources to compensate for cost

and conditions established in the regulation. Concession

variations in not recognized costs increases (MMC). Thus, on

agreements include penalties for non delivery. The concessions

May 7, 2013, the Energy Secretariat passed ruling 250/2013,

were granted for distribution sales, and retail distribution. The

which determines the MMC amounts receivable until February

concession periods are divided into “management periods”

2013 to compensate with the debts corresponding to the

that allow the dealership to, from time to time abandon the

PUREE program and other debts that Edesur accumulates in

concession.

the system. In the development of this important ruling on

November 6, the Ministry of Energy published Note 6852

Since 2011, there are two electricity distribution areas subject

authorizing Edesur and Edenor to conduct the compensation

to federal concessions. The concessionaires are Edesur and

of the MMC with debts arising from the PUREE program for the

Edenor, located in the city of Buenos Aires and Greater Buenos

March- September 2013 period.

Aires. Until 2011 Edelap was also under federal jurisdiction.

The majority of the distribution companies renegotiated their

also been approved to finance new expansion and quality

contracts in 2005 and 2006, although the rates were increased

investments of the distributors. So in November 2012, ENRE

partially and temporarily, the Full Tariff Review (RTI) of the

Ruling 347 was approved, authorizing the application of this

distribution companies with national jurisdiction has yet to be

differential charge per customer account as pre payment of

At the same time, additional charges to customers’ fees have

made.

the RTI. The application of the fee meant additional revenue

for Edesur for a total of 437 million of Argentinean pesos,

Thus, regarding Edesur, in 2006, the distribution company

representing an increase of 40% of the VAD and 20% of the

signed a “Memorandum of Agreement for the renegotiation

fees.

of the Concession Agreement.” This agreement established,

among several other conditions, a transitional rate system

which included an increase of 28 percent of VAD, with monthly

Regulation of transmission

updates; a system of quality of service and Tariff Review

The transmission was designed based on the general concept

Process (RTI) to be implemented by the ENRE. On a semi-

and principles established in Law 24,065, adapting the

annual adjustment mechanism based on rates of evolution

activity to the general criteria contained in the concession

of an ad-hoc inflation index called the Cost Monitoring

granted to Transener S.A., by Decree 2.473/92. For

Mechanism (MMC). The first update due to inflation

technological reasons, the transmission business is related

occurred in 2008, but from that year is no longer officially

to economies of scale that do not allow competition; it

recognized. But the Argentinean Government has created

is therefore a monopoly and is subject to considerable

various regulatory alternatives that have allowed distribution

regulation.

companies to continue providing electrical service.

One such alternative has been called the Program for the

Rational Use of Electric Energy or PUREE. This program was

created in 2004 by the Secretary of Energy, establishing bonds

and penalties to customers depending on the level of energy

107

Environmental regulation

Electrical installations are subject to

environmental laws and federal and

local regulations, including Law No.

24,051, or Hazardous Waste Act and its

related regulations.

Certain obligations to report and

monitor certain emissions standards

are imposed on the electricity sector

and, Failure to comply with these

requirements entitles the government

to impose penalties, such as suspension

of operations that in the case of public

services may result in the cancellation of

concessions.

Law No. 26,190, enacted in 2007,

describes the use of renewable sources

for electricity production as a national

interest and sets a goal of an 8% market

share for renewable energy within a

Brazil

Structure of the industry

period of 10 years.

The Brazilian electricity industry is organized on a large

interconnected power system, the (National Interconnected

System), comprising most of the regions of Brazil, and several

other smaller isolated systems. The generation, transmission,

distribution and trading activities are legally separated in

Brazil.

The industry is regulated by the Federal Government,

through the Ministry of Mines and Energy (MME) and the

National Electric Energy Agency (ANEEL).

According to Law No. 10,848 of 2004, bulk electricity market

as a tool for spot price definition is residual. Instead, the

bulk price is based on average prices of bids, independent

bidding processes exist for existing energy and new energy.

The latter provides for long term contracts in the new

generation projects which should cover anticipated increases

in demand by distributors. Tenders of old energy considered

shorter term contracts and seek to cover the needs of the

distribution arising from the expiration of previous contracts.

Each bidding process is coordinated centrally, the authority

defines maximum prices and as a result, distributors’

contracts are signed where all participants in the process

purchase pro rata from each one of the offering generators.

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REGULATORY FRAMEWORK OF THE ELECTRICITY INDUSTRY

2013 ANNUAL REPORT ENERSIS
The price at which the transactions are

settled on the spot market is called the

Dispute Settlement price - PLD - which

takes into account the curve of risk

aversion of the agents.

The transmission works under

monopoly conditions. Rates for

transmission companies are set by the

Brazilian government. The transmission

charge is fixed and transmission

revenues do not depend on the amount

of electricity transmitted.

corporation or partnership; or (iv) develop activities that are unrelated to

Distribution is a utility that also works

concession agreement. Generators are not allowed to have equity interest in

under conditions of monopoly and is

excess of 10 percent in distribution companies.

their respective concessions, except those permitted by law or in the relevant

provided by companies that in turn

have been awarded concessions.

The regulated market does not include the sale of electricity between generation

The distributors in the Brazilian

concessionaires, independent producers, self-producers, marketers of electricity,

system are not entitled to: (i) develop

electricity importers, consumers and unregulated special customers. It also

activities related to the generation

includes existing contracts under the old regulatory framework between

or transmission of electricity; (ii) sell

generators and distributors, until they expire, at which time the new contracts

electricity to unregulated customers,

must comply with the new regulatory framework. According to the specifications

except those within its concession

laid down in Law 9.427/96, unregulated consumers in Brazil are those that:

area and under the same conditions

(i) demand a capacity of at least 3,000 kW and choose to contract the power

and rates applicable to their captive

supply directly with generators or distributors; or (ii) require a capacity in the

customers of the Regulated Market;

range of 500 to 3,000 kW and choose to contract the power supply directly with

(iii) maintain direct or indirect equity

generators or distributors.

interest in any other company,

109

The Brazilian system is coordinated by the Brazilian Electric

contracts, so that energy can be sold at lower prices. Each

System Operator (ONS) and is divided into four sub-systems:

bidding process is coordinated centrally, the authority

Southeast, Central-West, South, North and Northeast. In

defines maximum prices and as a result, distribution,

addition to the Brazilian system there are also some isolated

contracts are signed, where all distributors taking part in

systems, i.e., systems that are not part of the Brazilian system

the process purchase pro rata from each of the offering

and are usually located in the northern and northeastern

generators.

regions of Brazil, and whose only source of electricity are coal

or oil thermal power plants.

Decree 5.163/2004 established that the selling agents should

Regulation in generation companies

ensure 100% physical coverage for their energy and power

contracts. This coverage may be constituted by a physical

collateral of their own generation plants or any other

Generator Agents are public generation concessionaires,

plant, in this case, through an electricity or power purchase

IPP or self-producers, as well as the trading Agents can

agreement. Among other things, Regulation ruling 109/2004

sell electricity within two contracting environments. One

ANEEL specifies that when these limits are not met, agents

is the Regulated Contracting Environment (ACR), where

are subject to financial penalties.

those distribution companies operate, in which the

purchase of energy should be conducted under a bidding

Finally, regarding generation activity, on September 11, 2012,

process coordinated by ANEEL; and the other, called Free

the Government approved the Provisional Measure 579

Contracting Environment (ACL), in which the conditions for

(subsequently converted into Law No. 12,783, of January 11,

the purchase of energy are traded directly between suppliers

2013), which sets the conditions for the renewal of the power

and their customers. Regardless of ACR or ACL, generator

sector concessions which will expire between 2015 and 2017

sales contracts are registered in the Chamber of Electric

and the reduction of taxes on electricity rates. Provisional

Energy Commercialization (CCEE) and are part of the basis

Measure was adopted to reduce the final price of the average

for the recognition and determination of adjustments for

electric rate by 20% and boost economic activity in Brazil.

differences in the short-term market.

The measure does not directly affect any of the concessions

of Enersis subsidiaries in Brazil.

According to market regulation, 100% of the energy demand

from distributors must be met by means of long-term

Since some generators did not renew their concessions

contracts in the current regulated environment. Thus, the

and other factors (such as delays in construction of power

regulated price purchase rates for the definition of rates to

plants, low rainfall, etc.) During the first months of 2013 the

end users is based on an average bid prices, independent

distribution companies have suffered an imbalance between

bidding processes exist for “new energy” and “existing

demand and the regulated energy supply, thus being

energy”.

involuntarily exposed to spot market prices to meet their

energy needs. In this context, Presidential Decree 7.945/2013

The new energy tenders contemplate long-term contracts

that authorized funding based on federal resources for

(15 years for thermal plants and 30 for hydro) in which

distributors may pay part of the extra cost of energy was

new generation projects should cover increases in demand

issued on March 8, 2013. The unpaid portion of overhead

anticipated by the distributors. Tenders of old energy

by means of government resources will be covered by the

considered shorter contracts and seek to cover the needs

regulated rates in 2014 and 2015, duly adjusted by the SELIC

of the distributors arising from the expiration of previous

index of the Central Bank of Brazil.

110

REGULATORY FRAMEWORK OF THE ELECTRICITY INDUSTRY

2013 ANNUAL REPORT ENERSISRegulation in distribution
companies

The regular rate revision takes into consideration the whole

rate setting structure of the company, including the costs of

providing services, the costs of purchasing power and the

return for the investor. Under their concession contracts,

In the regulated market, distribution companies purchase

Coelce and Ampla are subject to rate reviews every four to

electricity through tenders that are regulated by ANEEL and

five years respectively. The basis of the assets to calculate the

organized by the CCEE. Distributors must purchase electricity

return allowed for the investor is the market replacement

in public tenders. The government also has the right to call

value, depreciated over its useful life from an accounting

for special tenders for renewable electricity (biomass, small

point of view, and the rate of return on asset allocation is

hydro, solar and wind farms). ANEEL and CCEE conduct

based on the Average Cost of weighted Capital, or WACC

annual tenders. The contracting system is multilateral, with

(its acronym in English) of a model company. The WACC

generating companies that sign contracts with all distributors

is reviewed at each rate cycle. The value of the WACC for

who call for the tenders.

distribution currently in force is 11.4% real before taxes.

The Concessions Law establishes three types or adjustment

of final consumer rates: the Rate Repositioning Index

Regulation in transmission

(IRT), representing an annual adjustment for inflation; the

Any agent in the power market that produces or consumes

Annual rate Review (RTO) to be conducted every four or

energy is authorized to use the Basic Network. The free

five years depending on each concession contract and the

market consumers also have this right, provided that they

Extraordinary rate Review (RTE), which are carried out when

meet certain technical and legal requirements. Free access is

a relevant event that significantly affects the rate value

guaranteed by law and supervised by ANEEL.

occurs. Thus, the Law guarantees an economic and financial

balance for a company in the event that a material change

The operation and management of the basic network is the

in their operating costs occurs. In the event the components

responsibility of the ONS, which also has the responsibility

of the cost of Parcel A, such as energy purchases or taxes

of managing the dispatch of energy from plants under

increase significantly in the period between two annual rate

optimized conditions, involving the use of the interconnected

adjustments, the concessionaire may file a formal request to

system, hydroelectric and thermal power plants.

ANEEL to have those costs passed on to end customers.

All reviews and tariff repositioning are approved by ANEEL

/2011 were published in the Official Journal, which equates

On April 5, 2011 the Ministerial “portarias” 210/2011 and 211

both interconnection lines of the Energy Interconnection

In the rate revisions (RTO and RTE), ANEEL revises the rates

Company S.A. to public service concessions, with payment

in response to changes in the costs of buying power and

of a regulated toll. The allowed Annual Revenue (hereinafter

the market conditions. By adjusting distribution rates

“ RAP “) is adjusted annually, during the month of June by

ANEEL divides the Annual Reference Value, i.e. the costs

the National Consumer Price Index (hereinafter “IPCA “) with

of distribution companies in: (i) costs not manageable by

rate reviews every four years. a Gross Income Base of 1.760

distributors, also called “Parcel A”, and (ii) costs manageable

million reais ($ 885 million) and a Net Base 1,160 million

by distributors or “Parcel B”, the latter corresponding to what

reais ($ 585 million) were defined. In 2012, ANEEL approved

is known as Distribution Added Value (VAD).

111

the deployment of reinforcements in

transmission facilities, recognizing an

additional investment of 47 million reais

($ 23 million) in the revenue Base. The

applicable rate of remuneration was

defined according to current regulations

as 7.24% (real after taxes). The period of

authorization is until June 2020 for Line

1, and until July 2022 for Line 2, with

estimated damages compensations for

unrecovered investments.

Environmental
regulation

Although the Brazilian Constitution

gives both the Federal, state, and local

governments the right to enact laws

to protect the environment. Most

environmental regulations in Brazil are

at the State and local government level.

Chile

Structure of the industry

Hydroelectric power plants must

The electricity industry in Chile is divided into three segments

obtain concessions for water rights

or businesses: generation, transmission and distribution. The

and environmental approvals.

generation sector is composed of electricity generators. They

Thermal generation, transmission and

sell their production to distribution companies, clients and

distribution companies must obtain

other non-regulated generators through the spot market.

environmental approval from the

The transmission sector includes companies that transmit

environmental regulatory authorities.

high voltage electricity from generating companies. Finally,

the distribution sector is defined as comprising any supply to

end customers at a voltage not exceeding 23 kV. These three

major segments or businesses operate in an interconnected

and coordinated manner, and its main objective is to provide

electrical energy to the market at minimal cost and preserving

the quality and safety standards of service required by the

electrical codes. Because of its essential characteristics,

Transmission and Distribution activities are natural monopolies,

this is why these segments are regulated as such by the

electrical codes, requiring open access to networks and the

definition of regulated rates.

The electricity sector in Chile is regulated by the General Law

of Electric Services, contained in Legislative Decree No. 1 of

1982 of the Ministry of Mining, the revised and coordinated

text was established by the DFL No. 4 of 2006 of the Ministry of

Economy (“ Electricity Act “) and its Regulations, contained in DS

. No. 327 of 1998. Three government agencies are responsible

for the implementation and enforcement of the Electricity Act:

112

REGULATORY FRAMEWORK OF THE ELECTRICITY INDUSTRY

2013 ANNUAL REPORT ENERSISthe National Energy Commission (CNE),

which has the authority to propose

the regulated rates, and to develop

indicative plans for the construction

of new generating units; the

Superintendence of Electricity and Fuels

( SEC) , which regulates and monitors

compliance with laws, regulations and

technical standards for the generation,

transmission and distribution of

electricity, liquid and gaseous fuels;

and finally , the Ministry of Energy,

which is responsible for proposing and

conducting public policy on energy

and has under its control the SEC, the

CNE and the Chilean Nuclear Energy

Commission ( CChEN ) , strengthening

coordination and providing a

comprehensive view of the sector. It

also has an Agency for Energy Efficiency

and a Renewable Energy Center. The

joining TalTal in the North, with Quellon, in the island of Chiloe on the South. The SING

law also establishes a Panel of Experts

covers the northern area of the country, from Arica to Coloso, covering a length of

whose primary function is to resolve

about 700 kilometers, where a large part of the mining industry is located.

discrepancies that occur between the

various players in the electricity market:

According to the electricity Law, the companies involved in the generation and

utilities, system operators, regulator, etc.

transmission in an interconnected system must coordinate their operations in an

efficient and centralized manner by means of a, operator entity, the Center for

From a physical standpoint, the

Economic Load Dispatch (CDEC), with the purpose of operating the system at a

Chilean electrical sector is divided into

minimum cost, preserving the security of the system. For this, the CDEC plans and

four electrical systems: The central

operates the system, including the per hour marginal cost calculation, Price at which

interconnected system (SIC), the great

the energy transfers between generators are conducted in the CDEC. The CEDECs

north interconnected system (SING), and

(CDEC-SIC and DCEC-SING), are two autonomous agencies integrated by generation,

two isolated mid size systems: Aysén and

transmission sub transmission companies, and important customers.

Magallanes. The SIC, which is the main

electrical system, where about 93% of

the Chilean population lives, extends

longitudinally for 2.400 kilometers,

113

Regulation of generation
companies

Regulation in Distribution
Companies

The generation sector encompasses the companies which

The distribution segment is defined, for regulatory purposes,

have plants to produce electricity, which is transmitted

as all electricity supplies to end customers at a voltage not

and distributed, to the final consumer. This segment

exceeding 23 kV. Distribution companies operate under a

is characterized by being a competitive market where

concession of public service regime, with a service obligation

electricity is sold to: i) distribution companies to supply

to supply regulated customers at regulated rates.

their regulated customers within their concession areas.

ii) to free or unregulated customers, mainly industries and

Distribution companies supply both regulated customers,

mining companies, and iii) other generation companies,

whose demand is less than 500 kW, a segment for which

through the spot market, by energy and power transactions

the price and supply conditions is the result of bidding

conducted in the CDECs.

processes regulated by the National Energy Commission, as

well as unregulated customers with bilateral contracts with

As already mentioned, the operation of the generation

generators with conditions are freely negotiated and agreed

companies in each electrical system is coordinated by its

upon.

respective CDEC. As a consequence of this efficient and

coordinated operation of the electrical systems, at any

Consumers are classified according to the size of their

level of demand, the proper supply is delivered, at the

demand in regulated customers whose connected capacity

lowest possible production cost alternative available in

is less than 500 KW; and free or unregulated customers,

the market. The marginal cost is used as the Price that the

those with connected capacities greater than 2,000 KW.

other generators are selling at, at an hourly rate, including

Customers whose connected capacity is in the range of 500

the injections to the system, as well as the withdrawal or

to 2,000 KW capacity may choose to have regulated rates or

purchases to provide the service to its clients.

an unregulated scheme, for a minimum of four years in each

The generators take part in energy tenders of up to 15

regime.

years. The tenders are conducted in accordance with the

Since 2010, with the enactment of Law 20,018, the

requirements of the demands of the distribution and are

distributors must have a permanently supply for the total

supervised by the National Energy Commission This allows

of a three year demand forecast, for which long term public

the generators to have stable and predictable incomes,

tenders of up to 15 years should be conducted.

preventing variability of the marginal const, therefore

driving investment in the area.

The process to establish distribution rates is held every four

years. Both the CNE as well as the representative firm in its

In Chile, there is payment by capacity, which depends of

usual area commission studies by independent consultants to

an annual centralized calculation currently conducted

set the Distribution Value Added for their typical area. Basic

centrally by each CDEC, beginning from an amount which

rates are obtained by weighting the preliminary results of the

remunerates the development of a gas turbine. As a

study commissioned by the CNE and the company in a 2/3 -

marginal unit to supply the demands of the system. The

1/3 ratios respectively. With these basic rates it is verified that

capacity charge of each plant is independent of its dispatch

the aggregate profitability of the industry was established

and prizes the availability and contribution to the reserve

within a range of 10 percent with a margin of ± 4 percent.

margin of the country.

114

REGULATORY FRAMEWORK OF THE ELECTRICITY INDUSTRY

2013 ANNUAL REPORT ENERSISAlso, rates are reviewed every four years in the sub

more precisely, modifies the notification process, provides

transmission sector (which correspond to high voltage

summary judicial proceedings, introduces the possibility

installations that connect distribution networks with

of dividing the application for a concession, modifies the

transmission). This process is performed in an alternate

appraisal procedure for properties and solves conflicts

manner to the rate revision process in distribution, so that

between different types of concessions.

both are distanced by two years.

Additionally quadrennial review of the associated services is

a SIC-SING interconnection law it is in an advanced stage of

conducted, which corresponds to all services not included in

approval, the two largest electrical systems in the country,

the distribution reviews.

which will allow a coordinated operation of the system with

In the field of transmission it is also necessary to mention that

The Chilean model is an established distribution model, with

eight tariff fixings conducted since the privatization of the

sector.

Regulation in Transmission

greater efficiency.

Environmental Regulation

Chile has numerous laws, regulations, decrees and

ordinances that may pose environmental considerations.

Including regulations relating to waste disposal, the

The segment comprises a combination of transmission

establishment of industries in areas that could affect public

lines, substations and equipment for the transmission of

health and the protection of drinking water.

electricity from the production centers (generators) to

the centers of consumption or distribution. Transmission

In renewable energy, in April 2008, Law 20.257 was passed,

in Chile is defined as lines or substations with a voltage or

which encourages the use of Non-Conventional Renewable

voltage greater than 23 KV. The transmission system is of

Energy (NCRE). The main aspect of this rule is that it originally

open access and transmission companies establish rights

forced the generators to - at least - 5 percent of the energy

of way on the available transmission capacity through toll

sold to customers came from these renewable sources

payments.

between 2010 and 2014, gradually increasing by 0.5 percent

from 2015 to 2024, where they reach 10 percent. This Law

Since the transmission assets are constructed according

has recently been amended by another passed on October

to the concessions granted by the Government, the Law

14, 2013, called Law 20/25. The new regulations passed set

requires a company to operate in an “open access” mode, in

for 2015 a mandatory percentage of NCRE of 20 percent of

which users can access the system, contributing to the costs

the energy matrix, respecting the withdrawals referred to in

of operating, maintaining and if necessary, to expand the

the previous Law on existing contracts until July 2013, i.e. for

system.

contracts signed between 2007 and July 2013, the target is

10% in 2024, while for those signed after that date it shall be

On October 14, 2013 Law 20,701, called Procedure for

20% in 2025.

granting electrical concessions was published in the

Official Journal, which aims to streamline the processing of

electrical concessions. The new law simplifies the process of

granting provisional concessions, shortens processing times,

any comments and objections to the projects are issued

115

Colombia

Structure of the Industry

The Colombian electricity sector was

structurally amended by Law 142, of

Home Public Utilities, and Electricity Law

143, both of 1994. According to Law 143

of 1994, the various economic, public,

private or mixed agents can participate

in activities in the sector and are free

to perform their functions in a context

of free market competition. To operate

or initiate projects, permits must be

obtained from the competent authorities

regarding the environmental, health

and water rights issues, and those of a

municipal nature that might be required.

methodology for calculating and establishing maximum rates

The Ministry of Mines and Energy (MME)

for the supply of the regulated market, establishing standards

defines the government policy for

for the planning and coordination of the operations of the

the energy sector. Other government

system, establishing the technical requirements for quality,

entities that play an important role

reliability and security of supply and protect the rights of

in the electricity industry are: The

clients.

Superintendence of Public Services

(SSPD), which oversees and audits all

The Bulk Electricity Market in Colombia (MEM) is based on a

utilities companies; the Committee on

competitive market model and operates under the principles

Energy and Gas Regulation (CREG), which

of open access. The operation and administration of the MEM

is the regulatory body regarding energy;

is a centralized market operator, consisting of a Commercial

and the Mining and Energy Planning

Exchange Manager of the System (ASIC) and the National

Unit (UPME), which is responsible for

Dispatch Center (CND).

the planning and expansion of the

distribution network.

The generation sector is organized on a competitive basis.

Electricity transactions in the MEM are carried out under

The CREG is empowered to make

the arrangements of spot energy market (short term or

regulations governing the technical and

daily market); Bilateral Contract Market (long term) and the

commercial operations as well as rates for

Reliability Charge. Generation companies must mandatorily

regulated activities. The main functions

participate in the MEM, with all its generation plants or

of the CREG are setting the conditions

units whose capabilities are equal to or greater than 20

for the progressive liberalization of

MW connected to the Colombian system. (Plants with

the electricity sector towards an open

capacities between 10 and 20 MW can participate optionally).

and competitive market, approve

Generation companies declare the energy available and

charges for networks and the costs of

the price at they wish to sell it. This electricity is dispatched

transmission and distribution to supply

centrally by the National Dispatch Center (CND).

regulated customers, establishing the

116

REGULATORY FRAMEWORK OF THE ELECTRICITY INDUSTRY

2013 ANNUAL REPORT ENERSISMarketing is the intermediation

between the players providing

Regulation in Generation Companies

electricity generation, transmission and

The Colombian government can participate in the implementation and operation

distribution as well as the users of the

of generation projects like the private sector. The Government is only authorized

service. Marketing can be carried out or

to enter into concession agreements related to the generation when there is no

not, in conjunction with other activities

other entity prepared to conduct these activities under comparable conditions.

of the electricity sector.

Transmission operates under conditions

of monopoly and a guaranteed fixed

annual income, which is determined by

the new replacement value of networks

and equipment and the value resulting

from the bidding process that awarded

new projects for the expansion of the

National Transmission System (STN).

This value is shared by all traders in the

market in proportion to their energy

demands. The national interconnected

system (SIN) serves 98% of the country’s

The CND receives price bids every day and the available capacity for each hour

demand. Non-interconnected systems

in the following day from all generators taking part in the bulk market. Based on

serve remote areas of the country.

this information, the NDA takes economic dispatch using an optimized process for

the following 24 hour period, taking into account network limitations and other

Distribution is defined as the operation

conditions needed to meet expected energy demand for the next day in a safe,

of networks of Local and Regional

reliable and efficient manner, from the point of view of cost. Unlike other countries

Transmission Distribution. Any customer

where the central office is based on variable costs of production in Colombia

can have access to a distribution

dispatch is based on prices quoted by the agents.

network for which they pay a connection

fee. Distributors or network operators

The energy exchange is a balancing market where you sell or buy the excess or

are responsible for the planning,

deficit of energy resulting from the enforcement of contracts against the actual

investment, operation and maintenance

demand for power generators and marketers. The energy market determines

of electrical networks with voltages

the spot price by the ASIC after the day of operations by means of an optimized

below 220 KV.

procedure for a period of 24 hours referred to as ideal dispatch, with an infinite

capacity for network transmission and considers initial operating conditions, thus

establishing what generators should be dispatched to meet the actual demand.

The price paid to all generators that are dispatched by merit of price is the price of

the most expensive generator dispatched in each hour under ideal dispatch.

117

The cost differences between the ‘economic dispatch’ and

commercial conditions, where the demand to contract would

‘perfect dispatch’ are called “restriction costs.” The cost of

be treated as a single aggregate demand.

each constraint is assigned initially to the agent responsible

of the restriction, and when it is not possible to identify an

The distribution charges are set by the CREG based on the

agent it is distributed proportionally between all marketers

new replacement value of the existing distribution assets, the

in the Colombian system, according to their energy demand,

capital cost as well as operational and maintenance cost for

and these costs are passed on to end customers.

each company in four different voltage levels, is as follows:

Generators connected to the Colombian system can also

level IV up to 115 kV. Voltage levels 1, 2 and 3 are called Local

participate in the “Reliability charge” which is a mechanism

Distribution Systems (SDL) and Level 4 is called Regional

Level 1 to 1 kV, Level 2, up to 30kV, Level 3 up to 57.5 kV and

that aims to encourage investment in generating capacity

Transmission System (STR).

to secure the service of the long term country’s energy

demands. The fee consists of assigning Firm Energy

In 2009, after auditing information reported by the

Obligations (OEF) by a descending auction to existing or new

companies, the CREG determined distribution charges

generators, who must ensure that the amount of energy

applicable until 2013. Charges are fixed for a period of five

available in the system for a given period. The allocation for

years and are updated monthly according to the producer

existing generators is made annually and for new projects for

price index. Currently immersed in the process of reviewing

up to 20 years. The OEF is a commitment by the generating

the distribution charges for the five year period from 2014 to

company, backed by its physical resources that enable them

2018. One aspect under discussion it the recognized profit

to produce firm energy. The generator that acquires an OEF

rate, which is currently set by the CREG in 13.9% before taxes

receives a fixed compensation for the commitment period,

for local distribution assets and 13% for regional transmission

regardless that compliance with its obligation is required or

assets based on the WACC / CAPM methodology. The

not.

methodology for calculating the distribution charges

includes an incentive scheme for management, operation

The price per KW/h from an OEF is the value of the auction

and maintenance costs from service quality and energy

closing or firm energy or the reliability charge. When this firm

losses.

energy is required, which occurs when the spot price exceeds

the scarcity price, the generator receives the Reliability

Charge and also receives the scarcity price for every kW/h

Regulation in Transmission

generated with the OEF. If the power generated is greater

Transmission networks operating at 220 kV or higher form

than the obligation specified in the OEF, this additional

the National Transmission System (STN). The transmission rate

energy is paid at Spot Price.

includes a charge to cover the operating costs of the facilities,

and a charge for use that applies only to marketers who

Regulation in Distribution Companies

transfer it directly to the end users.

In Colombia, the distributors are free to purchase their

The CREG guarantees transmission companies a fixed annual

supply, and can define the conditions of the bidding process

income. This income is determined by the replacement value

to acquire the energy required for the regulated market and

of a new network and equipment, and the resulting value

can also go and buy energy in the spot market. The price paid

of the bidding process that have awarded new projects for

by the end user reflects an average of the purchase price.

expansion of the STN. This value is allocated to the traders of

Since 2004, the CREG is working on a proposal to amend

the STN in proportion with their energy demand.

the contracting procedures in the Colombian market, called

Organized Regulated Market -MOR-, which would be an

The construction, operation and maintenance of the new

electronic contract system. This mechanism would replace

projects is awarded to the company that offers the lowest

the current bids for energy auctions under standardized

present value of cash flows required to perform it.

118

REGULATORY FRAMEWORK OF THE ELECTRICITY INDUSTRY

2013 ANNUAL REPORT ENERSISRegulation in Commercialization

Any entity planning to develop projects or activities

relating to the generation, interconnection, transmission or

The trading market is divided into regulated and unregulated

distribution of electricity, which may result in environmental

customers. Customers in the free or unregulated market

degradation, must first obtain an environmental license.

may freely contract their power directly from a generator

or a distributor, acting as traders, or as pure marketers. The

According to law No. 99 power generation plants having

market for unregulated customers, consists of customers

a total installed capacity greater than 10 MW, should

with more than 0.1 MW peak demand or a minimum monthly

contribute to environmental conservation through

consumption of 55 MWh.

a payment for their activities at a regulated rate to

Marketing can be conducted by generators, distributors and

where the plants are located. Hydroelectric plants must

independent agents, who meet certain requirements. The

pay 6% of their generation and thermo electrical power

parties freely agree to the transaction prices for unregulated

plants must pay 4% of their generation, with rates that are

customers.

determined annually.

municipalities and environmental corporations in localities

The energy trader is responsible for billing the costs of

Act 1450, 2011, issued the 2010-2014 National Development

electricity to final consumers and transfer payments to the

Plan. The plan stated that between 2010 and 2014, the

various players in the industry. Marketing for regulated

Government should develop environmental sustainability

customers is subject to the “regulated freedom regime” in

issues and risk management.

which the rates are set by each trader using a combination

of general cost formulas determined by the CREG, and

In 2011, Decree 3570 established the new structure of

individual trading costs approved by the CREG for each

the environmental sector, creating the Ministry of the

marketer. Rates include, among others, costs of energy

Environment and Sustainable Development (previously,

supply, transmission charges, distribution charges and a

the functions of the Ministry of the Environment were

trading profit margin. Additionally, the final costs of the

established with the functions of the Ministry of Housing).

service are affected by subsidies or contributions that are

applied according to the socioeconomic status of each user.

In recent years, the Environmental Regulation for the power

sector has been focused on issues related to regulating

The rates or marketing charge for regulated customers must

emissions from plants, hydro policies (including water

be reviewed every five years and must be updated monthly

discharges and watershed organization) and environmental

based on the Consumer Price Index. These fees have not

licenses and penalties.

been revised since 1998 and are expected to be reviewed

during 2014.

Environmental Regulation

In Colombia, there is currently a path indicative of

participation of the NCREs in the National Energy System

3.5% in 2015 and 6.5% in 2020. Nevertheless, these forecasts

are under review, as is a bill before Parliament that regulates

The legal framework for environmental regulation in

the integration of the NCRE to the National energy System to

Colombia was established in Law 99/1993, which also

encourage savings and energy efficiency.

created the Ministry of the Environment as the authority for

defining environmental policies. The Ministry defines issues

and executes policies and regulations aimed at the recovery,

conservation, protection, organization, management and use

of renewable resources.

119

Peru

Structure of the
Industry

The general legal framework applicable

to the Peruvian electricity industry is

mainly constituted by the Electricity

Concessions Law (Law Decree No.

25,844 of 1992) and its accompanying

regulations.

The Ministry of Energy and Mines

(MINEM) defines energy policies

applicable at a national level, regulates

environmental matters applicable to

the energy sector and oversees the

allocation, monitoring, termination

The Committee on Economic Operation of the System (COES)

and revoking of licenses, authorizations

is the body that coordinates the operation and dispatch of

and concessions for the generation,

electricity in the national interconnected Electrical System

transmission and distribution activities.

(SEIN) and prepares the technical and financial study that

forms the basis for annual estimates of bar prices. In the

The Supervisory Agency for Investment

COES, generation, transmission and distribution companies,

in Energy and Mining (Osinergmin) is

are represented as well as unregulated customers: consumers

the regulatory body that oversees and

with demands exceeding 200 KW power.

monitors compliance with legal and

technical regulations related to the

In addition to the SEIN, several regional smaller isolated

electricity and hydrocarbons activities,

systems that provide electricity in specific areas exist.

enforces the obligations under the

concession contracts and is responsible

The main characteristics of the electricity industry in Peru

for the preservation of the environment

are: (i) separation of the three main activities: generation,

in relation to the development of these

transmission and distribution; (ii) free market for energy

activities. The Deputy Management

supply in competitive market conditions; (iii) a system of

of Rate Regulation of Osinergmin

regulated prices based on the principle of efficiency and a

(GART) has the authority to publish

bidding regime; and (iv) privatization of the operation of the

the regulated rates. Osinergmin also

interconnected power systems subject to the principles of

controls and oversees the bidding

efficiency and quality of service.

process required by the distribution

companies to buy power from the

generators.

120

REGULATORY FRAMEWORK OF THE ELECTRICITY INDUSTRY

2013 ANNUAL REPORT ENERSISRegulation in Generation
Companies

Generation companies that own or

operate a power plant with an installed

capacity greater than 500 kW require

an indefinite concession granted by the

MINEM.

Coordination of power dispatching

operations, determination of spot prices

and the control and management of

economic transactions that occur in the

SEIN, are controlled by the COES.

The generators can sell their power

customers, or at an agreed price in the case of unregulated customers. In addition

directly to large consumers and buy

to this bilateral approach, Law 28,832 of 2006, named Law to Ensure the Efficient

the deficit or transfer surplus energy

Development of Electricity Generation also established the possibility for dealers

between the contracted and actual

to meet the demand of its regulated and unregulated customers under contracts

production, in the pool, at the spot

entered after a power and energy bidding process. The approval of this mechanism

price. Sales to unregulated customers

is important for generators because it allows them to have a stable price over the

are conducted at mutually agreed prices

life of the contract, which is not set by the regulator and can last up to 20 years.

and terms, which include tolls and

compensation for the use of transmission

Following the introduction of competitive bidding, the new contracts to sell power

systems and, where necessary, to the

to distribution companies for resale to regulated customers must be at fixed

distribution companies for use of their

prices determined by these tenders. Only a small part of the power purchased by

networks.

distribution companies, including in the old contracts is still maintained at bar prices

(price equivalent to knot price in Chile), which are established by the Osinergmin.

Originally the Electricity Concessions Law

allowed that the sales to distributors

In Peru there is payment per capacity, given by the amount that pays for developing

may be conducted under bilateral

a gas turbine, as the marginal unit to supply the system demand. As in Chile,

contracts at a price not greater than the

the load capacity of each plant is independent of its dispatch and remunerates

regulated price, in the case of regulated

availability and margin contribution to the reserve of the country.

121

Regulation in Distribution Companies

Regulation in Transmission

The electricity rate for regulated customers include energy

Transmission activities are divided into two categories:

and capacity charges for generation and transmission, and

primary, which is for common use and allows the flow

the Added Value for Distribution (VAD) which considers a

of energy through the national network; and secondary,

regulated return on investments, fixed charges for operation

which is of those lines that connect to a power plant with

and maintenance, and a standard percentage for energy

the system or a substation with a distribution company or

losses in distribution.

consumer. The main lines and secured system are available

for all generators and allow electricity to be supplied to all

The VAD is established every four years. Osinergmin classifies

customers. The transmission concessionaire receives a fixed

companies in groups according to the “typical distribution

annual income as well as income from variable fees and

areas” based on economic factors that bring together

connection fees per KW. The lines of the secondary and

companies with similar distribution costs by population

complementary system are available for all generators, but

density, which determines the amount of equipment on the

are used only for certain customers who are responsible for

network.

making payments in connection with the use of the system;

these are remunerated at a fixed rate for 20 years, reviewing

The actual return on investment of a distribution company

only additional investments.

depends on its performance against the standards set by

Osinergmin for a theoretical model company. The rate system

allows for a greater return to the distribution companies that

Environmental regulations

are more efficient than the model company. Preliminary rates

The environmental legal framework applied to energy

are calculated as a midpoint (50-50) between the results of

related activities in Peru is stipulated in the Environmental

the study contracted by Osinergmin and the study by the

Law (Law No. 28,611) and the Environmental Protection

companies. Preliminary rates are checked to ensure that the

Regulations for Electrical Activities (Supreme Decree 029-94-

average annual internal return rate of all industry is 12% with

EM).

a variation of ± 4%.

During the last rate-setting process concluded on October

incentivize the generation of electricity by means of NCRE.

16, 2013, OSINERGMIN defined Edelnor rates for the

The decree stipulates that 5% of demand of the SEIN must

November 2013 to October 2017 period. The new rate was

be provided with the use of NCRE. This goal could increase

1.2% higher than that in October 2013.

5% every 5 years. The technologies considered renewable

In 2008, the MINEM enacted Supreme Decree 050-2008 to

resources include: biomass, wind, tidal, geothermal, solar and

mini-hydro (less than 20 MW hydroelectric power plants).

122

REGULATORY FRAMEWORK OF THE ELECTRICITY INDUSTRY

2013 ANNUAL REPORT ENERSIS123

Description of the
electrical business
by country

124

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISGeneration of electricity

The generation businesses are mainly conducted through our subsidiary Endesa Chile. In this segment,

the Enersis Group has operating subsidiaries in Argentina, Brazil, Chile, Colombia and Peru.

In its entirety, the installed capacity of the Enersis Group amounted to 15,847 MW in December 2013

and the consolidated electricity production reached 60,089 GWh, while sales totaled 69,369 GWh of

energy.

In the electrical industry, business segmentation between hydro and thermal generation is natural,

since the variable costs of generation are different for each type of production. Thermal generation

requires the purchase of fossil fuels and hydroelectric power requires building water reservoirs and

water from rivers.

55% of our consolidated generating capacity comes from hydro, 44% from thermal sources and 1%

from wind.

Therefore, the established commercial policy is relevant for the proper management of the business.

Transmission of electricity

For the Enersis Group, the business of power transmission is carried out mainly through the

interconnection line between Argentina and Brazil, CIEN, a subsidiary of Endesa Brazil, with a transport

capacity of 2,100 MW.

Distribution of electricity

Our distribution business is conducted through Edesur in Argentina, Ampla and Coelce (owned by

Endesa Brazil) in Brazil, Chilectra in Chile, Codensa in Colombia and in Edelnor in Peru. During 2013, our

main subsidiaries and related distribution companies sold 75,859 GWh.

Currently, Edesur, Ampla, Coelce Chilectra Codensa and Edelnor serve major cities in Latin America,

providing electric service to more than 14.5 million customers.

These companies faced increasing electricity demand, which forced them to constantly invest, both due

to natural growth as well as for the maintenance of their facilities.

125

Generation

Transmission

Distribution

Córdoba

Costanera Power Plant

Buenos Aires

Dock Sud Power Plant

Mendoza

Arroyito Power Plant

Edesur

El Chocón Power Plant

Neuquén

126

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISTypeHydroelectricInstalled Capacity128 MWTypeHydroelectricInstalled Capacity1,200 MWTypeThermoelectricInstalled Capacity2,324 MWEnergy sales18,137 GWhClients10.8%Clients2.4 millonesTypeThermoelectricInstalled Capacity870 MWArgentina

Electrical generation

In July 2012 by means of Ruling No. 1261/12, the Department

of Energy authorized the increase of power in the José de San

Martín thermoelectric (19.01 MW would be added) and Manuel

Belgrano (25 MW would be added) power plants, being the

amount of the works of approximately $ 10.1 million and $ 11.9

million respectively. In the preamble to this ruling, the bases for

We take part in the generation of electricity in Argentina

the financing of the work were advanced.

through subsidiaries of Endesa Chile, Endesa Costanera and

Hydropower El Chocón, and from March 2013, through our

On October 4, 2013, Endesa Costanera adhered to the

subsidiary Dock Sud.

commitments defined in Ruling SE No. 1261-12. On December

12, 2013 the Department of Energy issued Note No. 8180/13

El Chocón owns nine hydroelectric hydropower units with a

which authorizes Endesa Costanera to dispose Overstock

total installed capacity of 1,328 MW, while Endesa Costanera

Sales with an Expiration Date to be defined (LVFVD) of

has eleven thermal units with a total installed capacity of 2,324

2008-2011 from the VOSA Project (Vuelta de Obligado S.A.

MW and Dock Sud has five thermal units with a total installed

Plant) to destine the expansion of power of the units of the

capacity of 870 MW. These companies have a combined

FONINVEMEM, being in analysis on the use of the LVFVD issued

installed capacity of 4,522 MW. This power represented

under Ruling SE No.95/13.

14.4% of the installed capacity of the Argentine National

Interconnected System (SIN) at the end of 2013.

Regarding the VOSA project, which includes the installation of

a combined cycle of around 800 MW by adding to what was

Electrical generation by these companies amounted to 14,422

reported in the previous year, in 2013 additional contracts such

GWh, 11.1% of the total generation in the country, and the

as an addendum to the supply and construction contract to

physical energy sales totaled 16,549 GWh, 13.2% of the total

advance in the implementation of the simple cycle gas turbines,

sales.

and the dedicated gas pipeline contract.

Endesa Costanera and El Chocón take part in partnerships

Regarding equipment involved in the project, on October 15,

engaged in the operation of two combined cycles, initiatives

the gas turbines arrived at the port of Zarate. On November 19,

coordinated by the Fund for Investments Required to Increase

the TG1 was installed on its pedestal, while TG2 was installed on

the Supply of Electric Power in the bulk Electricity Market

December 2.

(FONINVEMEN), with 5,326% and 18.85 % of ownership of the

initiatives, respectively.

Once the combined cycle is commissioned (in 2015) the

During 2010, commercial operation under the combined cycle

companies who contributed to the project, including El Chocón

thermoelectric plants Manuel Belgrano and José de San Martín

Hydroelectric and Costanera, through a supply contract for 10

was enabled.

years and a libor rate of 30 days plus 5%, according to the 2008-

repayment of the debt owed by CAMMESA to the generating

2011 Generators Agreement.

The combined cycle operation determined the effective date

of entering the contract for the operation and management

Other generators connected to Argentine SIN are: AES Alicura,

of the plant maintenance and supply contract, therefore, the

Sadesa, Capex, Petrobras, Pampa Generation and Pluspetrol.

companies involved in the FONINVEMEM, including Endesa

Costanera and El Chocón began to recover their credits from

the cash flows generated by the project for a 10 year contract to

sell its production to the MEM administered by CAMMESA, on

December 31, 2013, the installments been in accordance with

the forecast.

127

Endesa Costanera

It is located in the city of Buenos Aires

and has six steam turbine units totaling

1,138 MW, which can generate with

natural gas or fuel oil. It also operates

two 859 MW and 327 MW combined

cycles, respectively, totaling an

installed capacity of 2,324 MW.

In 2013, the net generation was 8,523

GWh and total sales reached 8,962

GWh. During 2013, the Argentinean

electricity system demand recorded a

3.2% increase when compared to 2012.

In terms of electricity production, the

gross maximum power in the national

grid (SIN) reached a new historical

During January we proceeded to sign the contract called

record of 23,794 MW, the same day

Commitment for steam turbine equipment availability,

that the record energy occurred

including the Administrator of the bulk Electricity Market

(December 23), exceeding by 8.4 %

Company SA (CAMMESA) and Endesa Costanera ensuring

the record of 21,949 MW established

rehabilitation works for the Conventional Units.

in 2012.

In the area of finance, it is worth noting the continuing of

Regarding the operational aspects,

the financial strategy adopted in earlier years, prioritizing

during 2013, the thermal dispatch with

conservative management thereof so as to ensure the

liquid fuel use was critical to supplying

necessary financial resources for the proper operation of the

the demand.

plant.

As in previous years a maintenance

Under the accumulated losses to December 31, 2012, and

program was carried out, in this case

in order to restore the financial position of the company,

called Short Term Plan, to ensure the

at the board meeting of April 5, 2013, it was resolved to

functioning of Conventional Units of

increase the capital of the company for an amount of up to

the plant during the winter months.

$ 555,000.000 and the issuance of new shares. In October,

The plan included the inspection of the

by Ruling No. 17,201, the authorization for public offering

Conventional Units and all common

of new shares was obtained from the CNV. Meanwhile, the

and ancillary services.

Stock Exchange of Buenos Aires authorized the listing of the

new shares on October 28, 2013; the Capital Increase was

The predicted maintenance was

performed in November 2013.

performed earlier this year under

the long-term maintenance (LTSA)

Regarding the agreement signed in October 2012 between

contracts current for combined cycle

Endesa Costanera and the Secretariate of Energy, to

II and combined cycle I (CBA) after a

implement an investment plan in the generating units of the

period of operation 12,000 equivalent

plant in order to optimize the reliability and availability of

hours (EOH).

such equipment for an amount of by $ 304 million, within

128

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSIS7 years this will result in an increase

in the generation and significant cost

savings for the system. On March 14,

the company signed the contract for

the rehabilitation of its steam turbine

technology units with DF Operations

and Assembly S.A. - MASA International

Operations S.L. Temporary Joint

El Chocón Hydro

Venture and Duro Felguera Argentina

S.A. - MASA Argentina S.A. temporary

joint venture.

As established in clauses 7.2 of the

availability of steam turbine and

combined cycle Contracts, regarding

the treatment of the remuneration

thereof and the regulatory changes

that occur to supplement or replace

the remunerative concepts established

by the Secretariate of Energy for the

Spot Market of the MEM for energy and

El Chocón Hydropower SA is a hydropower generation company, which operates

power, the Secretariate of energy issued

the exploitations of El Chocón and Arroyito, located on the Limay River. It is

the following notes SE No.7594/13 and

located in the provinces of Neuquén and Rio Negro. The hydroelectric plant has

No. 8376/13 which instructs CAMMESA

a total installed capacity of 1,328 MW, and includes The El Chocón plants with an

to apply the methodology to reconcile

installed capacity of 1,200 MW (hydro power artificial reservoir) and Arroyito, with

earnings of Ruling No. 95/13 and the

an installed capacity of 128 MW, using both water from the Collon Cura and Limay

contracts beginning on January 2014.

rivers for generation.

On regulatory matters, in March 2013

The hydroelectric development of El Chocón is located in the region known as

the government formalized by means

Comahue, formed by the Argentinean provinces of Rio Negro, Neuquén and the

of the publication of the ruling of the

southern part of the province of Buenos Aires. El Chocón is on the Limay River,

Secretariate of Energy No. 95 of 2013, a

about 80 km upstream of its confluence with the Neuquén river. Arroyito is the

number of changes to the payment of

compensator dam of El Chocón and is located on the same river, 25 kilometers

Generators, Co generators and Self-

downstream.

Generator agents of the MEM with the

exceptions provided for in Article 1 of

The hydrological year starting April 1, 2013 was characterized as dry (fourth

the Ruling (“Committed Generators”).

consecutive dry year) therefore hydrological contributions of the basins of the

rivers Limay and Collon Cura were scarce, which is why the operational approach

129

of the agency in charge of dispatch,

In the development of the activities of our own staff and

was to restrict the use of accumulated

the contractors there have been no accidents. Indicators

strategic reserves. This approach

of IFG and IGG = 0 confirm a very good year regarding the

resulted in the recovery of energy

safety of our staff and contractors. It should be noted that

reserves of the Comahue in respect to

in the second half of the year contractor personnel greatly

2012.

increased over normal staffing for the execution of the

As a result of the dispatch of The El

refurbishing work at El Chocón.

Chocón reservoir at the closure of the

In the area of finance, the company paid part of its debt for

year 2013, net generation of the El

an amount of $ 21 million.

Chocón / Arroyito complex was 2,317

GWh, the level of the reservoir reaching

Additionally, the securing of a new syndicated loan for

379,63 masl (meters above sea level).

an amount of $ 149.39 million in June 2013 is worthwhile

The stored energy in the Comahue

mentioning, at a corrected private Badlar +6%, payable in

reservoirs was 5,994 GWh, of which

quarterly installments, growing and consecutive, the first

2,409 GWh reserves of El Chocón, both

being due on December 2013. The funds received were used

were measured values regarding the

to repay in full the short-term loans in local currency and for

condition of minimum altitude of the

the prepayment of existing syndicated loans II and III.

minimum extraordinary operation band

(FOE).

Regarding the loan for $ 6.8 million obtained under the

framework of Ruling 146/02 of the Ministry of Energy for the

Regarding the operational side, the

execution of works on the 6 units of the El Chocón power

accumulated availability of The Chocón-

plant (Refurbishing, Automation & Retrofitting works) -

Arroyito complex in 2013 was 92.14%,

awarded by Cammesa, on favorable terms for the Company,

having fulfilled satisfactorily Scheduled

it is to be mentioned that on December 31, 2013, the amount

major Maintenance of Turbo group

received for this concept was around $ 12.1 million.

No.3 of the Arroyito power plant.

This major maintenance involved a

The main investment projects to be undertaken in 2014 are: i)

check and general maintenance of the

To Complete the Protection System, Excitation and Sequence

turbine, generator, excitation systems,

Start / Stop of Units 3 and 4 and the T3CH main transformer

protections, electrical and mechanical

refurbishing of the El Chocón power plant, ii) complete

auxiliaries and main transformer. Also,

further improvements of hydrocarbons separators in cooling

a vibration monitoring system was

water system of the 3 units of the Arroyito power plant and

installed in units No. 1 and 6 of the El

replacement of mineral oil with biodegradable oil in the

Chocón plant, the Protection, Excitation

Arroyito dam gates as part of the Technological Upgrade

and Sequence Start / Stop Systems of

Project of the telecommand system of the Arroyito Dam,

units No.1, 2, 5 and 6 and the t1ch and

stage 3, which was approved by the Secretary of Energy.

t5ch main transformers of El Chocón

were updated.

130

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISNew Scheme of Generation Cost Remuneration -
Ruling S.E. N°95/13

In March 2013, the government established by ruling of the Ministry of Energy

No. 95 of 2013, a number of changes to the payment of Generators, Co generator

and Self-Generators agents of the MEM, with the exceptions provided for in

the 1st Article of the ruling (“Committed Generators”). This ruling states that

the new conditions have retroactive effect as to the economic transactions of

February 2013, after a prior commitment of each generator to withdraw all

claims submitted against the Federal Government, The Ministry of Energy and/

or Cammesa regarding the Generation agreement 2008-2011 and ruling SE N

º 406/2003, and to resign to submitting administrative claims and/or lawsuits

against the Federal Government, The Ministry of Energy and/or Cammesa

regarding the aforementioned Agreement and Ruling.

Dock Sud Power Plant

Located in the district of Avellaneda

The scheme provides remuneration for a number of concepts from which

in Buenos Aires, Dock Sud owns and

electricity and/or the energy committed to the forward market or other

operates a power plant with two

arrangements for the same concepts must be discounted.

generators with a total capacity of 870

MW. The Dock Sud power plant has four

I. Remuneration of Overhead: by means of pricing for the available power (PPAD)

gas turbines and one steam turbine.

by technology and based on compliance with availability goals.

Two of the gas turbines and the steam

turbine compose a combined cycle.

II. Non Fuel Variable Costs Compensation: fixed in terms of the energy generated

The energy generated by Dock Sud

by fuel type.

between April and December 2013 was

III. Additional Compensation: a portion is paid directly and the other portion is

3,582 GWh, while energy sales totaled

destined to a trust to be reinvested in financing new infrastructure projects in the

4,195 GWh, accounting for 3.4% of the

electricity sector. The Ruling provides that the Secretary of Energy timely specifies

total sales in the country.

the destination of the raised funds.

Up to December 31, 2013, the installed

The ruling also sets a new priority order for payments (eliminates the application

capacity of Dock Sud accounted for

of Ruling SE No. 406/03 for that purpose), with the following order of priority: (i)

02.8% of the total installed capacity in

first order, overhead generation costs are paid, own fuel costs, along with non-

the SIN.

fuel variable costs, and (ii) in second order additional compensation will be paid.

The ruling also provides that the supply of fuels to the power plants of the MEM,

the commercial management and shipping of fuel, be centralized in the Agency in

charge of shipping (OED).

Land Reserved for
Future Projects

Currently, there is no reserved land for

future projects in Argentina.

131

Also, this Ruling temporarily suspends

the addition of new contracts in the

term market and states that after

completion of the pre-existing contracts

before the issuance of the Ruling, It

will be mandatory for the MEM Large

Users to purchase their energy demand

from the OED, under the conditions

established for this purpose by the

Department of Energy.

Between May 30 and 31 the Group

companies submitted the requested

withdrawal. In the specific case of

Endesa Costanera the ministry of

energy should have defined certain

remunerative aspects because of

the coexistence of the new regime

established by the Ruling and the

Contracts regarding steam turbine and

combined cycle Equipment Availability

in the MEM. At the closing of the Annual

Report, the company was awaiting a

Power Distribution in
Argentina

response from the Secretary of Energy

Enersis takes part in the power distribution through its

regarding applications submitted under

subsidiary Edesur, which directly or indirectly owns, 71.6% of

Ruling.

the property.

The market share of our subsidiary in Argentina in terms of

physical sales, was approximately 20%.

Other power distributors in the Argentinean system are:

Empresa Jujeña de Energía (EJESA) Empresa de Distribución

de Energía de Tucumán (EDET), Empresa de Distribución

de Energía de Santiago del Estero (EDESE), Empresa

Distribuidora y Comercializadora Norte (EDENOR) and

Empresa de Distribución de la Plata (EDELAP).

132

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISEdesur

The main purpose of Edesur is the distribution and sale of

electricity in the south of the Greater Buenos Aires area,

servicing two-thirds of the city of Buenos Aires and twelve

districts of the province of Buenos Aires, covering 3,309 km2,

for a period of 95 years beginning August 31, 1992.

This term includes an initial one of 15 years and eight

additional 10 years terms. On February 5, 2007, the National

Electricity Regulatory Entity (ENRE) decided to extend the

initial term for an additional five years from the completion

of the Company rate Renegotiation (RTI).

The concession contract establishes the obligation to supply

electricity to Edesur on request of the owners or residents

of property within its concession area, meet certain quality

standards for the electricity supplied, meet operational

requirements with respect to maintaining distribution assets

and bill customers based on actual metering.

In 2013, Edesur provided electric service to 2,444,013

customers, a figure that remained virtually unchanged from

the previous year. Of the total, 87.6% were residential, 11.1%

commercial, 1.0% industrial and 0.3% other users.

Energy sales amounted to 18,137 GWh, an increase of

2.2% over the previous year. This was distributed 43.3% to

residential, 24.4% commercial, 7.8% industrial and 24.5% to

other customers.

The energy loss rate reached 10.8% in 2013.

133

Generation

Transmission

Distribution

Coelce

Fortaleza Power plant

Cachoeira Dourada

CIEN

Ampla

134

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISRío de JaneiroBelénManausSao PauloGoianaBrasiliaTypeHydroelectricInstalled Capacity665 MWInstalled Capacity2,100 MWEnergy sales10,718 GWhClientsEnergy losses3.5 millones12.5%TypeHydroelectricInstalled Capacity322 MWEnergy sales11,049 GWh ClientsEnergy losses2.8 millones19.8%Brazil

Endesa Fortaleza

Power generation

It is located in the municipality of Caucaia, 50 km from the

state capital of Ceará. It is a combined cycle power plant

of 322 MW using natural gas, and it has the capacity to

generate a third of the electricity needs of Ceará, which has a

Enersis takes part in power generation through Endesa Brazil

population of about 8.2 million people.

and its subsidiaries Endesa Fortaleza and Endesa Cachoeira.

These two plants, one hydroelectric and the other a thermal

the infrastructure of the Pecém Port and Industrial Complex,

power plant have a total capacity of 987 MW, amounting to

in the municipality of Caucaia, and integrates the Programa

about 1% of the capacity of the Brazilian SIN.

Prioritario de Termoeletricidade (PPT) of the federal

Built on an area of 70 thousand square meters, it is part of

The power generation of the Group in Brazil reached 4,992

growth and facilitate the establishment of other industries.

GWh, amounting to about 1% of the total generated in the

Its main customers are Coelce and Petrobras.

country, with a hydroelectric production of 48% of the total

generated by the Enersis Group in Brazil.

Power generation in 2013 was 2,588 GWh, while sales

government. The location is strategic to boost regional

In turn, the physical sales reached 6,827 GWh, about 1.5% of

total sales in the Brazilian system.

Land reserved for future projects

totaled 3,262 GWh.

Other generators connected to the Brazilian SIN are: CHESF,

In the city of Caucaia, state of Ceará, a plot of land of

Furnas, Cemig, Electronorte, Cesp, Copel, Eletrobras and

34 hectares is reserved for the development of the UTE

Eletropaulo.

Endesa Cachoeira

Carnaúba. The land is owned by Endesa Fortaleza, which

assigned use rights to Endesa Brazil under a loan, with a term

of 30 years beginning in 2013.

It is located in the State of Goias, 240 km south of Goiania. It

Furthermore, in the city of Macaé, state of Rio de Janeiro,

has ten units with a total installed capacity of 665 MW. It is

there is a 75 hectare plot of land, owned by Endesa Brazil, for

a run-of-the-river hydroelectric plant and uses the waters of

a new thermoelectric project.

the river Paranaiba.

Net generation in 2013 was 2,404 GWh, while sales totaled

Electrical Transmission

3,564 GWh.

The Enersis Group is also involved in the transmission and

sale of electricity in Brazil through the interconnection

line between Argentina and Brazil, by means of the CIEN

company, which has a 54.30% ownership.

135

Electrical Distribution in Brazil

Enersis takes part in the distribution through Endesa Brazil

and its subsidiaries Ampla and Coelce.

Enersis directly and indirectly owns 91.6% and 49.2% of the

property of these companies, respectively.

The market share of our subsidiaries in Brazil, in terms of

physical sales, was approximately 6%.

In Brazil, the distributors that make up the electrical system

total 64 companies, including: CPFL, Brasiliana de Energía,

AES Elpa, Cemig, Light, Coelba y Copel.

Endesa CIEN

La Compañía de Interconexión Energética

S.A. (CIEN) is a power transmission company

Ampla

in Brazil. Its complex consists of two

Ampla is a power distribution company with operations in

frequency conversion stations, Garabi I and

73.3% of the territory of the State of Rio de Janeiro, which

Garabi II, which convert both directions

corresponds to an area of 32,613 km2. The population is

Brazil frequencies (60 Hertz) and Argentina

about 8 million people, divided into 66 municipalities, which

(50 Hertz), and the transmission lines. On

include: Niteroi, São Gonçalo, Petrópolis, Campos and Cabo

the Argentinean side, these are managed

Frío.

by two subsidiaries: the Compañía de

Transmisión del Mercosur SA (CTM) and

During 2013, Ampla provided electric service to 2,801,427

Transportadora de Energía S.A (TESA) in

customers, 3.3% more than in 2012. Total, 90.5% are

both, Endesa maintains control of 100.0% of

residential, 6.1% commercial, and 3.4% other users.

the capital.

The company distributed 11,049 GWh to its end customers,

The interconnection system consists of two

representing an increase of approximately 2.2% over

transmission lines with a total length of

2012. Of the total distributed energy, 40.8% corresponded

1,000 kilometers, and the Garabi Conversion

to residential customers, 19.3% to commercial, 8, 3% to

plant.

industrial customers and 31.6% to other users (including toll

On April 5, 2011 the official gazette

customers 14.4%).

published the power transports which

Since 2003, Ampla acts with great emphasis on fighting the

define the annual value of the Annual

theft of energy, reducing this indicator by 4.01 percentage

Allowable Remuneration (RAP) for CIEN.

points (from 23.64% to 19.8%). Sustainable reduction is

Thus, the regulator equates CIEN (whose

only possible due to the set of positive results of the projects

assets consist of Garabi lines 1 and 2) to the

developed by Ampla (use of technology and social action).

public service transmission concessionaire.

For several years, the company has won a number of awards

The total annual RAP is adjusted annually

that indicate the excellence of its projects.

and processes rate revisions to be

conducted every 4 years. Since April 2011

However, energy losses remain one of the major challenges

therefore, CIEN was officially authorized to

of Ampla. In 2013 it ended with a slight increase of 0.02

receive payments under this new business

percentage points, from 19.6% to 19.8%.

approach.

136

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISDuring the Abradee awards of 2013 Coelce was chosen for the 8th consecutive

year Best Power Distribution Company of the Northeast. In addition, the

company was the 3rd Best of Brazil and is among the top 5 in the country in Social

Responsibility, and Operational, Financial and Economic Management.

Coelce

Is the electric distribution company

of the State of Ceará, in northeastern

Brazil, and covers a concession area of

149 000 km2 .

The company provides services to a

population of more than 8 million.

Remarkably, Coelce was awarded the

Social Energy Project Award (COGE)

in 2013 in the Social Responsibility

At the end of 2013, customers reached 3,500,155, representing a 4.9% increase in

category. In its 13th edition, there were

the number of existing customers when compared with same time the previous

66 projects involving 32 companies in

year. Classification by type of customers indicates that 77.7% are residential, 6.4%

the Brazilian electricity sector. The aim

are commercial customers, and the remaining 15.9% consist of other customers

of the event is to disseminate projects

which include rural. The energy sold in 2013 was 10,718 GWh, representing

and best practices of the sector. Created

a growth of 8.5% when compared with 2012 sales. The consumer classes

in 2006, the Coelce Social Energy Project

influencing this growth were: residential customers with a growth of 34.6%, due

conveys to the communities of the State

to shortage of rain during that year that caused the use of electric pumps for

of Ceará, the valuing of local culture and

irrigation. Then customers Tolls with a 12.5% growth, being 18.2% commercial,

art. The objective is income generation

10.9% industrial and other customers with a 23.8%

and improvement of life conditions in

communities by means of training and

professionalization of the work of our

artisans.

137

Tarapacá Power Plant

Taltal Power Plant

Huasco Power Plant

Generation

Transmission

Distribution

Diego de Almagro

San Isidro Power Plant

Los Molles Power Plant

Chilectra

Parque Canela I y II

Quintero Power Plant

Rapel Power Plant

Sauzalito Power Plant

Sauzal Power Plant

Maule Power Plant

Curillinque Power Plant

Loma Alta Power Plant

Pehuenche Power Plant

Ojos de Agua Power Plant

Cipreses Power Plant

Bocamina I y II

Isla Power Plant

Biobío Power Plant

Ralco Power Plant

Palmucho Power Plant

Laja Power Plant

Antuco Power Plant

Abanico Power Plant

El Toro Power Plant

138

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISAntofagastaTypeThermoelectricInstalled Capacity182 MWTypeThermoelectricInstalled Capacity64 MWTypeHydroelectricInstalled Capacity18 MWTypeEolicInstalled Capacity78 MWTypeThermoelectricInstalled Capacity257 MWTypeHydroelectricInstalled Capacity377 MWTypeHydroelectricInstalled Capacity12 MWTypeHydroelectricInstalled Capacity77 MWTypeHydroelectricInstalled Capacity690 MWTypeHydroelectricInstalled Capacity34 MWTypeThermoelectricInstalled Capacity245 MWTypeThermoelectricInstalled Capacity24 MWTypeThermoelectricInstalled Capacity1,245 MWTypeHydroelectricInstalled Capacity89 MWTypeHydroelectricInstalled Capacity40 MWTypeHydroelectricInstalled Capacity570 MWTypeMini hydroInstalled Capacity9 MWTypeHydroelectricInstalled Capacity106 MWTypeHydroelectricInstalled Capacity70 MWTypeHydroelectricInstalled Capacity320 MWTypeHydroelectricInstalled Capacity136 MWTypeHydroelectricInstalled Capacity450 MWEnergy sales15,152 GWhClientsEnergy losses1.7 millones5.3%478 MWTypeThermoelectricInstalled Capacity478 MWChile

Operational and Commercial Scenario

Power generation

Events influencing the operational and

commercial performance.

Enersis takes part in the electricity generation sector

During 2013, the Central Interconnected System (SIC) adds

through Endesa Chile and its subsidiaries, becoming the

its fourth consecutive year of drought, with a persistence,

company’s most important country in terms of installed

as in previous years, of high prices of the fuels used for

power generation capacity, in which Enersis directly holds

electricity generation, which meant that high costs electricity

60% ownership.

generation continue to be recorded, although the income

of 969 MW from coal plants in the second half of 2012 and

Endesa Chile, its subsidiaries and jointly-controlled

2013 (Santa Maria, Campiche, and Bocamina II) allowed to

companies in Chile have a generating capacity which

partially alleviate the supply situation of the system, because

comprises 103 units distributed along the Central

these are units of low production costs and high capacity

Interconnected System (SIC), and 2 units in the Norte

factor (constant output, in the case of the Bocamina II which

Grande Interconnected System (SING).

involves injecting 8,400 MWh / day to the system). Also

Electricity generation in Chile by the Enersis Group reached

growth in consumption, which was found to be 3.5% when

19,675 GWh in 2013, with 51% of it being hydroelectric.

compared with 2012 consumption, the growth rate was

The physical energy sales totaled 20,406 GWh in Chile,

lower than in 2013, which was around 5.6%.

contributed to not pushing upwards the cost of a moderate

an equivalent to 29% of total sales of the Group in Latin

America.

Undoubtedly, this sequence of dry years has had an

impact on the profits of the company during 2013, but it is

In Chile, other generators are: AES Gener, Colbún, EC-L y

important to point out the operational strengths Endesa

Norgener.

Endesa Chile

Chile has to face this adverse situation, namely: i) It has a

large size generating capacity,, varied and competitive,

composed mainly of hydropower and efficient thermal

plants, allowing to keep a low average operating costs

Endesa Chile, its subsidiaries and jointly-controlled

profile; ii) the commercial policy of the company, which

companies in Chile have a generating capacity which

has always been designed and implemented according

comprises 103 units distributed along the Central

to its generating facilities and the current and forecasted

Interconnected System (SIC), and 2 units in the Norte

reality for the national electricity market. This has meant a

Grande Interconnected System (SING).

constant concern for Endesa Chile to establish a balanced

type commercial policy, which aims to combine a condition

Power sales by Endesa Chile and its subsidiaries in the SIC

of low hydrological risk exposure with an adequate return;

Reached 19,387 GWh in 2013. This volume represents a

for which this policy contemplates to commit contracts with

41% share of the total sales of the SIC, including customer

an energy level according to the size and composition of the

sales and net sales in the spot market. Sales to regulated

generating capacity, maintaining a diversified portfolio of

customers Represent 76%, sales to deregulated customers

clients and implementing a pricing policy which allowed it

amount to 17%, and 7% Were net transactions in the

to sustain profitability even in situations of dry hydrology

spot market. In Addition, sales of electric energy of the

and high marginal costs in the spot market, as have been

Celta subsidiary in the SING, totaled, 1,019 GWh in 2013,

observed during 2013; and iii) a policy of exploitation

representing a 7% increase in the overall sales of the

whose aim has been to permanently maintain high quality

electrical system.

standards and operational readiness of the facilities of the

company, along with designing and implementing those

modernization plans necessary to maintain the operating

conditions of the equipment at optimum levels and up to

date.

139

Hydrological Condition in the

Generation and supply costs in the SIC

SIC

The dry condition was repeated in 2013, again involved

2013 began with a thaw without

a system of supply with a high proportion of thermal

precipitation, of dry characteristics

generation which corresponded to 59.6% of the total supply

until early May, when a very brief

of the SIC, a percentage which was higher than the 57.4%

period of high intensity began, which

of 2012. In this thermal generation, the predominant fuel

lasted until early June. Later, occasional

was coal, which represented 37.3% of the SIC total, well

low intensity rainfall was recorded,

above the 29.1% of the previous year, due to the entry of the

all of which configured a year of dry

new coal power plants mentioned above. LNG production

characteristics. The first two quarters of

followed, with 19.5% and finally, with a smaller share, oil

2013 were the driest, with probabilities

with 2.8% of the total.

of accumulated excess from tributaries

of 93% and 82%, an improvement

Meanwhile, hydroelectric generation continued to decline

in the third quarter due to rainfall in

its participation in the production of the SIC, representing

September, warm characteristics and

only 39.4% of its total generation, compared to the 41.9%

high zero isothermal, which produced

in 2012 and the 44.7% in 2011. This because the reservoirs

an unusual thawing of the snow, which

were kept operating with low elevation, with slight recovery

caused a significant increase in the

in the months when rainfall occurred. Particularly, annual

inflow in that period, and as a result

regulation reservoirs such as Lake Laja and Laguna del Maule,

of this, leaving very little for the next

continued to operate much of the year in the zone of highest

thaw. Consequently, as a result of the

extraction restriction.

hydrological conditions it should be

noted that 2013 was configured as a dry

Wind generation represented a percentage of 1.1%, slightly

year, with a cumulative probability of

higher than the 0,8% of 2012.

excess in tributaries of close to 84%.

Regarding the energy production of the SIC, Endesa

Chile had a participation of 39% of the total, with a 52%

contribution of hydroelectric and a thermal generation

contribution of 30%. In the thermal production, the company

had a major participation of LNG, which accounted for 60%

of the total, its contribution being less than coal generation

(16%) and oil (9%). In wind power, the contribution of Endesa

Chile was 29% relative to the total wind system.

The High levels of the generation costs in 2013 due to

the increased participation of thermal generation in the

production matrix, resulted in turn in higher energy prices

in the spot market, although lower, on average, than those

observed in 2012. It is noteworthy that although the annual

average hourly marginal cost at the Alto Jahuel - 220 kV node

recorded a decrease of 21% (from an average of 195 U.S. $/

MWh in 2012 to a value of 154 U.S. $/MWh in 2013), the

140

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISdecline is largely explained by increased

be achieved gradually by 2024, a new set value of 20 % to be attained gradually

hydroelectric generation occurred

by 2025. Moreover a mechanism of annual and exclusive public tenders for NCRE

during the last four months of the

in order to comply with the annual obligation to supply NCRE is established. The

year, due to the higher flow available

Ministry of Energy will be in charge of Such tenders and NCRE participants will

following the warm thaws that occurred

compete with price (energy) for blocks that are tendered, allowing them to sell

in that period. Indeed, until the month

at a stabilized price, with a maximum defined in the law itself. This new standard

of August, the cumulative average value

allows encouraging the incorporation of these generation technologies and to do

of the marginal cost of 2013 displayed

it more competitively.

a rather minor decrease (6%) than the

average value during the same period

The legislative debate on the power Highway Project continues, which provides

in 2012.

measures for facilitating development in the trunk transmission systems and

additional branchings, which include design with higher output gaps and which

Regulatory issues associated

with the power sector: bills

costs will be paid on shared among different users who benefit from it. The

main purpose of this project is to encourage the future development of poles

of generation or demand in different parts of the country, mainly of renewable

and regulations

energy, including hydropower.

Two laws of significance for the power

During 2013, the bill for power interconnection also passed, which allows

sector were enacted in 2013:

to include in the planning of the trunk transmission system, the power

The power Concessions Law (Law No.

regulation, which required an agreement between stakeholders in a process of

20,701) which was enacted on October

open negotiation of private agents to do so. In late 2013, the project was in an

interconnection between two systems such as the SIC and SING, unlike the current

14, its application aims to expedite the

advanced stage of approval in Congress.

processing and deadlines associated

with power concessions in the different

Moreover, within the rules of the regulatory range during 2013, the following

stages covered in the process of

regulations were approved: i) On April 24, the regulations of node prices, which

processing the power generation

are explicit and detailed on the calculation and provision procedures of the

projects. This law provides measures

information required for determining the selling prices for regulated customers

that make procedures for granting

and ii ) on August 5, a modification to the rules of the Center for Economic

concessions more expedite, thereby

Load Dispatch ( CDEC ) was issued, which aims to strengthen the autonomy and

a reduction of construction time of

operational areas of this entity to exercise its functions, for which changes have

transmission projects was expected,

been made mainly on the composition of the board of this organization (10 to 5

and delays would hamper the economic

members) and the manner of choosing its members (independent of participating

operation and the flow of power supply

companies); a redefinition of the segments of generation and the creation of a

between the different parts of the

new operating unit (Planning and Development) in order to support the analysis

country.

and coordination of power projects being developed in the system.

On October 22, Law No. 20,698 which

amends Law No. 20,257 on the NCRE

was published. In its core, it defines a

new supply obligation with the NCRE

involving a 10% increase of required

NCRE supply of marketed energy, to

141

Actions of Endesa Chile during

• Under the Reservoirs Law, which declared the Ralco dam

2013

In the operation of the facilities

as flood control, a flood simulation was conducted (August

23 to 30), this requirement is present in the communication

protocol between Endesa Chile and ONEMI. In the

simulation, which involved ONEMI, DGA and Endesa Chile,

• Indices associated with risk management

the communication systems, information transfer and

continue to improve. Regarding 2012,

decision making process were tested.

the frequency rate decreased by 0.56%,

the frequency and severity decreased by

• The generation of the two combined cycles together of

1.15%, displaying a 50% decrease in the

the San Isidro power plant was the highest in its history,

number of accidents with lost days.

reaching a production of 5,607 GWh. This thanks to the

record generation achieved by cycle No. 1, with 2,591

• On December 22, the bag house of the

GWh, and a high generation of cycle No.2 of 3,016 GWh.

Tarapacá power plant entered service.

This allowed meeting the new emissions

In the commercial area

standard regarding particulate matter,

which came into force on December 23.

Commercial operations by Endesa Chile during 2013 were

The emission level reached a third of the

in line with its commercial policy, whose purpose was to

regulation limit.

reconcile the achievement of all of the following objectives,

maintain industry leadership, adequately manage risk and

• In the month of July, a 100% compliance

profitability of the company in the worst condition of 2013

with the committed actions involved in

for the SIC, comply with the actions of its permanent client

the Clean Production Agreement, (APL)

fidelization policy and achieve greater efficiency in the

of the Puchuncaví-Quintero industrial

internal commercial management.

area was verified by the third of four

external audits.

Regarding customer contract management:

• In December, the construction of

• Under the framework of the tender Process for the

the 5000 m2 pilot cooling pond was

Supply of the SIC 2013/01 conducted in November 2013,

finalized in San Isidro, built by Crystal

Endesa Chile was awarded 3,500 GWh/year, which aim

Lagoons. This pond is intended to

to ensure the supply of energy to regulated customers of

verify the feasibility of applying this

the distribution companies of the SIC for the period from

technology to improve the efficiency of

December 2013 to December 2024 The awarding referred

the thermal power plant cooling.

to will result in a series of supply contracts with bidders (in

preparation) for a period of 11 years at an indexed price of

• During the year, continuous emissions

U.S. $ 129/MWh.

monitoring was put into service in all

thermal power plants of the system

• According to what was contractually agreed, during 2013

(CEMS) required by the new emissions

the following supplies were completed: i) March 31, the

standard for thermoelectric plants. The

contract with Codelco, Salvador Division and with EMELAT

systems are being validated for further

to supply their customer Kozan; ii) December 31, contracts

certification by the Environmental

with customers Mantoverde (a subsidiary of Anglo-

Service.

American) , CMPC (for its plants: Laja, Santa Fe, Pacific and

Inforsa) CMPC Cartulinas (Valdivia), and with Río Maipo

(for the variable block) and iii) with CGE to supply its

customer EFE.

142

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISRegarding the 2013 milestones of the

Customer area:

•

In November the “IX Seminar with

Endesa Clients and Subsidiaries” was

held, which had a high participation

of different clients of the group

companies. Talks Related to the

following issues were conducted:

i ) supply situation; ii ) Punta Alcalde

Project and iii ) Energy Matrix and

Shale Gas.

• During August and September,

• During the month of November, the customer satisfaction survey 2013 was

Customer Seminars were conducted

conducted. The end result of the ISC was 16.8, indicating a favorable perception

in La Serena, Concepción and

of our customers when compared to the result of the previous year (ISC 16,6) .

Valdivia, which were well received by

The best evaluated aspects, as in previous years, were the commercial staff and

the customers.

the billing process. Good customer feedback regarding the client executives and

the overall commercial. The Same for the operations team for the billing process

• In October, a visit to the Canela wind

is becoming ever more complex and cumbersome, and despite the change of

farm was conducted with customers.

professionals it has maintained a very good level of efficiency.

• Progress was made in the

development of the implementation

of the new billing system to SAP-ISU

customers.

143

Projects under study by Endesa Chile

Los Condores Hydroelectric

Plant

The Los Condores Hydroelectric plant

Project will be located in the Maule

Region, Province of Talca, Municipality

of San Clemente. It includes the

construction of a run-of-the-river

hydroelectric plant of about 150 MW

of installed capacity, with an average

annual generation of 560 GWh, which

will use the water of the Laguna del

Maule reservoir by a 12 kilometer

uptake. The plant will connect to the

SIC by a 220 kV double circuit link

between Los Condores power plant

and the Ancoa S / E, with a length of

approximately 90 kilometers.

The project has the basic engineering and environmental

assessment process by the Environmental Evaluation Service

The generation project has had an

(SEA) of the Region de los Rios completed. In November and

environmental approval since November

December 2013, respectively, the Addendum No. 4 to the draft

2011. Regarding the transmission line,

of the EIA of the generation project and Addendum No. 4 to the

a modification of the environmental

draft of the EIA of the transmission lines were submitted.

approval for the line connecting the

power plant to the SIC was obtained

Also, during the second semester of 2013, the SEA began the

in May 2013. In November 2013, the

process of consultation with the indigenous communities

Water Works Permit authorizing

territorially present in the area, both for the plant as well as for

the intervention of basins for the

the transmission line, in order to know their position regarding

construction of the plant was obtained.

both projects and comply with ILO Convention 169.

Neltume Hydroelectric power

Punta Alcalde Thermal Power Plant

plant

The Punta Alcalde thermoelectric plant project will be

located in the Atacama Region, Province and Municipality

The Neltume Hydroelectric power

of Guasco, 13 kilometers south of the city. The initiative

plant project will be located in the

provides for the construction of a power plant that will use

Los Ríos Region, in the Province of

bituminous coal as its main fuel. It will have two blocks,

Valdivia, Municipality of Panguipulli. The

with an installed capacity of 370 MW each. The plant will be

initiative includes the construction of a

connected to the trunk Maitencillo substation by means of a

hydroelectric power plant of 490 MW of

double circuit 220 kV transmission system of 40 km in length.

installed capacity, with an average annual

generation of 1,885 GWh, which would

In 2009, Endesa Chile submitted the project to the

use the energy potential existing between

Environmental Impact Assessment Service. A regulatory

the Neltume and Pirehueico lakes. The

change occurred in June 2011 in the emissions requirements,

plant will be connected to the SIC in the

which led to incorporate changes in the project. On June 25,

Pullinque area, by a 220 kV double circuit

2012, the EAC (Environmental Assessment Committee) of

transmission line.

the Atacama Region rejected the project, after which Endesa

Chile submitted an Appeal to the Committee of Ministers.

144

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISOn December 3, 2012, by unanimous

Taltal, Closure of Combined Cycle

vote, the Committee of Ministers

decided to reverse the decision of

This project is located in the town of Paposo, Taltal in the 2nd Region. It consists

the EAC of the Region of Atacama,

of the installation of a steam turbine to complete the Taltal power plant combined

environmentally approving the project.

cycle, which is currently operating. The operation of the combined cycle of this

In early 2013, four court claims were

power plant has a favorable RCA.

filed (protection resource) against the

ruling of the Committee of Ministers,

which were received by the Court

of Appeals in August 2013. Up to

December 2013, the case was in the

Supreme Court, awaiting a ruling.

Moreover, in early July 2013, the

transmission project that will connect

the power plant to the Maitencillo

substation of the SIC underwent

environmental assessment.

The project for the closure of the combined cycle will use the two existing gas

turbines of 123 MW each, and add a steam turbine of about 120 MW. Thereby, the

Taltal power plant will have a net power of the order of 370 MW and an efficiency

increase from the current 35% to approximately 50%.

In December 2013, an Environmental Impact Statement (EIS) that environmentally

optimizes the project was submitted, replacing the seawater cooling system that

was originally considered with a dry air cooled system.

The injection of power of the plant to the combined cycle will be through the

existing 220 kV Paposo-Diego de Almagro double-circuit line.

Land reserved for future projects

In December 2013, Endesa Chile holds real estate property (land) for a total area

of approximately 250 hectares, to be used in thermoelectric and hydroelectric

projects. These assets are located in the Atacama Region (208.9 hectares) and in

the region of Los Lagos (42 hectares).

145

Projects of associated companies

HidroAysén

the Supreme Court, with only that the Committee of Ministers

meets and rule on the claims by the company and opponents.

In this context, the company also announced a restructuring of

the organization to adjust to the challenges of the new stage

of development. By the end of 2013, and having far exceeded

HidroAysén, partnership in which Endesa Chile owns 51%

legal the limits for this, the Committee of Ministers had not yet

equity and the remaining 49% is owned by Colbún, is

been called to rule on the complaint resources submitted.

developing a project for the construction and operation of

five hydroelectric dams on the Baker and Pascua rivers in the

The successful experience of “House to House” dialogue of

Aysen Region.

2012 led to deepening the process during 2013. And in July,

the project visited 60% of all households in Cochrane, Tortel

The plants will have a total installed capacity of 2,750 MW

and Villa O’Higgins in the Capitán Prat Province; during August,

and an annual average generation capacity of 18,430 GWh,

70% of the households in Puerto Río Tranquilo, Puerto Guadal,

equivalent to 36% of the consumption in the central grid

Bahia Murta, Puerto Bertrand and Cerro Castillo, in the General

during 2013, thereby transforming the HidroAysén project

Carrera Lake; and by the end of 2013, households in Puerto

in the most important hydroelectric initiative that has

Ibáñez were visited, plus a deepening in the city of Coyhaique,

been developed in Chile. The total area of the reservoir,

allowing to cover 91% of households to date.

considering the five power plants will be of 5,910 hectares,

bringing the hydroelectric complex to qualify as one of the

Continuing with its policy of community relations during 2013,

most efficient in the world in terms of energy produced per

HidroAysén maintained its commitment with education in the

unit of surface flooded.

region, delivering more than 100 annual technical education

scholarships to young people in the region of Aysen and the

As provided by Law No. 19,300, the HidroAysén project

Capitán Prat Province, achieving to benefit about 227 students

submitted its Environmental Impact Assessment (EIA)

during the last five years.

for approval in August 2008 and after three years of

a comprehensive assessment, obtained a favorable

In August 2008, HidroAysén submitted an Environmental

Environmental Qualification Ruling in May 2011. during 2012,

Impact Study to the appropriate authority to begin processing

the company completed a long court proceeding initiated

of the project. On May 9, 2011, HidroAysén received a favorable

by opponents to the project, which tried in this way to stop

environmental qualification Ruling, with certain conditions. In

the initiative. In April 2012 the Supreme Court ruled in favor

June 2011, HidroAysén appealed to the Committee of Ministers,

of HidroAysén, rejecting appeals by environmental groups,

which consists of six members of the Cabinet and is chaired by

which had previously been received and ruled upon by

the Minister of Environment for the review of certain conditions

the Court of Appeals of Coyhaique and then its similar at

set forth in the ruling. In parallel, the project opponents filed 34

Puerto Montt, ruling in favor of the company. With this, the

complaints, adding to the request to the Committee a total of

country’s highest court validated the environmental approval

35 complaints.

of HidroAysén.

On January 30, 2014, the Committee of Ministers met to review

During 2012, HidroAysén restructured its executive staff and

the claims. The Committee requested additional information

created the Community and Communications Management,

and studies on certain item, ruling on only part of the claims. In

based in the Aysen region, in order to strengthen the

March of 2014, and now under the administration of President

company’s ties with the community and promote a policy of

Michelle Bachelet a new Committee of Ministers, which ordered

transparency, dialogue and direct communication with the

the institution of proceedings for invalidation concerning what

neighbors.

was agreed by the Committee of Ministers at its meeting of

January 30, 2014 under the administration of former President

In April 2013, HidroAysén informed the public that it

Sebastián Piñera. The new Committee stated that it would

had successfully completed the first stage of the project

review and rule on complaints within the 60 working days

development, obtaining the environmental approval of

provided by law. Currently, HidroAysén is awaiting the Ruling of

the five stations, the technical and engineering studies

the Committee.

necessary for this phase, and positive and definitive ruling of

146

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISChilectra

Chilectra is the largest distribution company in Chile in terms of sales of electrical

power. It operates in 33 communes of the Metropolitan Region and its concession

area covers over 2,118 km2, including the areas covered by its subsidiaries,

Empresa Eléctrica de Colina Ltda. and Luz Andes Ltda.

The company provided electric service to 1,693,948 customers, 2.1% more than in

2012. Of this total, 89.5% are residential, 7.8% commercial, 0.7% industrial and 2.0

% others. Also, in 2013, Chilectra sold 15,152 GWh to end customers, representing

an increase of 4.9% over 2012. During the exercise, Chilectra satisfactorily fulfilled

the Loss Plan developed and implemented for this purpose, achieving the best

result in the last 9 years, reducing losses by 0.05 percentage points compared to

2012, recording up to December 1st a TAM indicator of 5.31%. Due to the above,

Chilectra is positioned as the company with the lower level of losses within the

Group in South America.

Power Distribution
in Chile

Enersis takes part in the distribution

The distribution rates are established every four years, on the basis of cost studies

of power through its subsidiary

by specialized consulting firms. The National Energy Commission (CNE) established

Chilectra, of which directly holds 99.1%

typical distribution areas, and of each typical area of each company, it selects a

ownership. The market consolidated

reference from which the consultants must design an efficient business model.

participation of our distribution

subsidiaries in Chile, Chilectra, Luz

The last distribution rate established is in force since November 2012 for the 2012-

Andes and Colina, was of approximately

2016 period.

40%.

According to the rate regulations

governing the activities of power

distribution, the Chilectra service area

is defined as a high density area and

includes all residential, commercial,

industrial, government, and those

who pay tolls, among other clients.

The metropolitan area is the most

densely populated area of Chile and

has the highest concentration of

business activities, industrial parks and

commercial facilities in the country.

Another group of power distributors

involved in the electrical system are:

Chilquinta Energía, CGE Distribución,

Sociedad Austral de Electricidad,

Empresa Eléctrica de la Frontera and

minor distributors and / or electric

cooperatives.

147

Generation

Transmission

Distribution

Codensa (Consolidada)

Termozipa Power Plant

Cartagena Power Plant

Paraíso Power Plant

Limonar Power Plant

Barranquilla

Medellín

Bogotá

Tequendama Power Plant

Cali

San Antonio Power Plant

Neiva

Darío Valencia

Charquito Power Plant

La Guaca Power Plant

Betania Power Plant

El Guavio Power Plant

148

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISTypeThermoelectricInstalled Capacity236 MWTypeThermoelectricInstalled Capacity208 MWTypeHydroelectricInstalled Capacity277 MWTypeHydroelectricInstalled Capacity50 MWTypeHydroelectricInstalled Capacity15 MWTypeHydroelectricInstalled Capacity20 MWTypeHydroelectricInstalled Capacity20 MWTypeHydroelectricInstalled Capacity20 MWTypeHydroelectricInstalled Capacity325 MWTypeHydroelectricInstalled Capacity541 MWTypeHydroelectricInstalled Capacity1,213 MWEnergy sales13,342 GWhClientsEnergy losses2.7 millones7.0%Colombia

Projects under construction

Power Generation

El Quimbo Project

Enersis takes part in power generation through its subsidiary

of Huila, to the southeast of Bogota, Colombia and feeds

Endesa Chile and Emgesa, of which it controls, directly and

of the flow of the Magdalena River. It contemplates the

indirectly, 37.7% of the property.

construction of a 400 MW installed capacity hydroelectric

The El Quimbo project is located south of the department

This company has an installed capacity which in 2013

represented 20% of the power generation capacity of the

On February 25, 2013, the Administration Board approved

dam and an average annual generation of about 2,216 GWh.

country.

the awarding of the contract “Alternate routes and Bridges

construction” to the Consortium Quimbo Works, formed

The power generation of the Enersis group in Colombia

by the PCM, CSS, Sonacol and CASS companies, which was

reached 22% of the total generated in that market. For its

subsequently approved by the Board of Emgesa. Moreover,

part, the physical power sales represented 18% of the total

on May 7 2013, the National Environmental Licenses

sales.

Authority (ANLA) reported the approval of the amendment

to the Environmental License for the “Construction of

Other generators connected to the Colombian power system

alternate Roads and Bridges” allowing Emgesa to grant

are: Empresa Pública de Medellín, Isagen, Corelca, EPSA and

the Notice to proceed to the Quimbo works Consortium to

Chivor.

Emgesa

initiate activities. In early June 2013, the land required to

begin work was delivered to the contractor.

Between August 16 and September 9, 2013, there was a

On September 1, 2007 Colombian companies Emgesa

national agricultural strike, where neighboring communities

SA E.S.P. and Central Hidroeléctrica de Betania S.A. E.S.P

were mobilized to the project causing roadblocks and land

merged, the latter remained as absorbing company, which

seizures, which forced the company to prepare a contingency

changed its name to Emgesa SA E.S.P.

plan aimed at not stopping the critical works of the project

(fillings for the dam, assembly of the bridge crane assembly

It is the largest electricity generation company in Colombia,

of the Powerhouse) and prevent supplies shortages to the

located in the vicinity of the city of Bogotá. It is composed

project. Moreover, negotiations were maintained with the

by eleven plants with a total capacity of 2,925 MW, among

main contractors to achieve a program that unifies the

which is The Guavio of 1,213 MW, the largest hydroelectric

programs corresponding to the Main Civil Works and the

facility in the country. Of the eleven plants, nine are

Supply and Installation of Electromechanical Equipment

hydroelectric and two thermal.

Contracts.

Net generation was 12,811 GWh, while total sales reached

During the year and according to the commitments of

16,090 GWh.

the Environmental License of El Quimbo, there have been

projects associated with the resettlement nuclei and their

respective irrigation and urbanization districts, directly linked

to the conditions accepted by the people affected by the

project and the needs expressed by the local authorities.

149

Salaco Project

During this project, the San Antonio,

Limonar and La tinta-La junca plants

will undergo major maintenance

and upgrading, to operate as a

plant dispatch center at the edge of

water, like Salto II, Dario Laguneta

and Valencia, respectively. This will

represent a growth in installed capacity

of 144.8 MW for Emgesa and an

additional average increase in expected

generation of 482 GWh. The plants will

be operating with their original name,

Salto II (from 19.4 MW to 35 MW);

Laguneta (from 18 MW to 36 MW) and

Dario Valencia (from 38.8 MW to 150

MW). The project has duration of 24

months.

On November 6, 2013, the first

upgraded unit of the Salaco project,

Land reserved for future
projects

corresponding to unit 2 of the edge

In Colombia, currently there is no land reserved for future

of water plant Darío Valencia Samper

projects.

entered into service, with an installed

capacity of 50 MW. This unit generated

46.3 GWh from the date of its

commissioning to December 31.

150

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISPower Distribution
in Colombia

Codensa

Distributes and sells electricity in Bogota and 103 municipalities in the

departments of Cundinamarca, Boyacá and Tolima, in an area of 14.087 km2.

Since 2001, Codensa focuses primarily on providing services to regulated

customers but also serves some industrial, commercial and municipal public

lighting customers. Provided electrical service to 2,616,909 customers, 2.7% more

than last year. Of the total, 88.6% are residential, 9.6% commercial, 1.6% industrial

and 0.2% others.

Enersis takes part in the distribution of

This was distributed as follows: 33.7% to residential, 16.1% commercial, 6.5%

Power sales reached 13,342 GWh, representing an increase of 2.9% over 2012.

power through its subsidiary Codensa,

industrial and 43.7% others.

of which it holds, directly or indirectly,

48.4% of the property.

As for the power losses, this indicator recorded, again in 2013, a decrease from

7.3% to 7.0%. Management to control losses has focused on the incorporation

The market share of our subsidiary in

of new technologies and techniques for identifying losses as well as in the

Colombia in terms of physical sales,

strengthening of a customer / business relationship based on technical

was approximately 16%. In Colombia,

knowledge and the transparency of our actions.

there are 31 other distributors involved

in the power system, among which are:

As part of the rate review process, which is conducted every five years, during

EEPP Medellín, Empresa Distribuidora

August 2008 by ruling 093, the CREG published the rate of return applied to the

del Pacífico y Electrificadora del Caribe.

remuneration of the activity of power distribution, which was set at 13% for sub

transmission assets and 13.9% for medium and low voltage assets. In October

2009, the CREG issued ruling No.100 establishing the Codensa distribution

charges for the period 2009-2013. This ruling led to a decrease of 4.2%. in the

Distribution Added Value (VAD).

151

Generation

Transmission

Distribution

Moyopampa Power Plant

Callahuanca Power Plant

Huinco Power Plant

Matucana Power Plant

Eepsa Power Plant

Huampani Power Plant

Santa Rosa Power Plant

Ventanilla Power Plant

Yanango Power Plant

Chimay Power Plant

Chiclayo

Trujillo

Lima

Edelnor

Cuzco

Arequipa

152

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISEnergy sales7,045 GWhClients Energy losses1.3 millones7.9%TypeHydroelectricInstalled Capacity66 MWTypeHydroelectricInstalled Capacity80 MWTypeHydroelectricInstalled Capacity247 MWTypeHydroelectricInstalled Capacity133 MWTypeThermoelectricInstalled Capacity302 MWTypeHydroelectricInstalled Capacity30 MWTypeThermoelectricInstalled Capacity304 MWTypeThermoelectricInstalled Capacity485 MWTypeHydroelectricInstalled Capacity43 MWTypeHydroelectricInstalled Capacity151 MWPeru

Power Generation

Empresa Eléctrica de Piura

Eepsa has three power plants, located in the province of

Talara, Piura, in northern Peru. these are:

• Malacas power plant, with an open cycle Mitsubishi unit

Enersis takes part in the power generation through Endesa

operating on natural gas.

Chile and its subsidiary Edegel, of which it controls directly

and indirectly, 37.5% of the property. Additionally, Enersis

• Malacas 2 power plant, with an ABB open cycle unit which

directly controls 96.5% of the Empresa Eléctrica de Piura

can operate with or without water injection, with natural

(EEPSA).

gas.

Through its two subsidiaries, Enersis has an installed capacity

• Malacas 3, power plant, with a SIEMENS open cycle unit in

of 1,842 MW in Peru, which represented 24% of the installed

cold reserve condition, with B5 Diesel fuel.

capacity of Peru, which totals 7,814 MW. In terms of power

generation, the Enersis Group reached 21.4% of the total

generated in the country.

PRODUCTION CENTERS

In Peru, other generators connected to the power grid are:

Power plant Unit

Manufacturer

Electroperú, Enersur y Kallpa Generación.

Edegel

Malacas
Malacas 2
Malacas 3
Total

TG1
TGN4
TG-5 RF

MHI
ABB
SIEMENS

Declared
fuel

Natural Gas
Natural Gas
B5 Diesel

Effective
power
(MW)
11.698*
103.39 **
186.6 ***
301.688

It is located in the vicinity of the city of Lima. It is composed

of seven hydroelectric plants and two thermal plants with a

total capacity of 1,540 MW. The thermal plants use natural

Valid since August 09, 2013.
*
** Valid since August 09, 2013.
*** Valid since August 12, 2013. Still not approved by the COES.

gas as the main fuel and diesel as an alternative fuel.

With Eepsa-GC-113-2013 letter dated on July 11, 2013, Eepsa

requests certification of Commercial Operation of unit TG-5

The net generation of Edegel totaled 8,605 GWh, a decrease

RF which was accepted by the COES with COES/D/DP-723-

of 1.5% when compared to 2012 and physical sales totaled

2013 letter with an effective date of July 13, 2013.

8,904 GWh, a decrease of 7.1% from the previous year.

During 2013, the production of electricity of Eepsa was

137.78 GWh (of which 24.09 GWh were generated by the

Malacas power plant, 108.32 GWh by Malacas 2 power plant

and 5.37 GWh by Malacas 3 power plant lower by 72.8%

than the production of the previous year.

153

Projects under study

Curibamba Hydroelectric
power plant

This power plant will be located upstream of

the uptake of the Chimay power plant, in the

department of Junín and will use the flow of

the Uchubamba and Comas rivers.

The project includes the construction of

a run-of-the-river power plant with 192

MW capacity, a design flow of 86 m3/s, a

production of 1,013 GWh/year, and a single

triplet 220 kV 135 miles long transmission line

to the Pachachaca substation,

During 2013 the tender process for the Project

main contracts for Civil, Equipment, Electrical

Transmission Line and Interconnection System

Works began the necessary studies for the

Land reserved for future
projects

preparation of pre-construction permits

10 hectares of land belonging to the company Siderperu was

for the project. The approval of the Pre-

purchased, located in the province of Santa, department of

Operability Study by the system operator

Ancash with the aim of analyzing a proposed thermal power

(COES) was obtained. The basic designs of the

plant.

transmission line are completed for 100% of

the layout.

Moreover, in April 2013, the approval of the

Environmental Impact Assessment (EIA) of the

first section of the transmission line and the

second stretch was received to undergo the

evaluation process, the project has Certificates

of Absence of Archaeological Remains (CIRA)

and approved generation and transmission.

Finally in December 2013 began the process to

obtain the final Generation concession.

154

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISPower Distribution
in Peru

Edelnor

The concession area granted to Edelnor covers a total of 1,517 km2 which correspond

mostly to the north of Lima and Callao. Edelnor is the concessionaire of the public

electricity service for the north of Lima and Callao, and the provinces of Huaura, Huaral,

Barranca and Oyon. It serves 52 districts exclusively and shares an additional 5 districts

with the distributor of the south. In the metropolitan area, the Edelnor concession

comprises mainly the industrial area of Lima and some highly populated districts of the

city.

Edelnor delivered electric service to 1,254,624 customers, an increase of 4.3% over

2012. Of these, 94.5% are residential, 3.3% commercial, 0.1% industrial and 2.1% other

customers.

Enersis takes part in the power

The growth in sales is explained by an increased consumption in the residential and

Physical energy sales totaled 7,045 GWh, representing an increase of 2.7% over 2012.

distribution through its subsidiary

commercial sectors.

Edelnor, in which it controls, directly and

indirectly, 75.5% of the property.

In the case of the power loss indicator, it was significantly lower when compared to

The market share of our subsidiary

2013, decreasing from 8.2% to 7.9%.

in Peru in terms of physical sales was

Regarding the establishing of distribution rates, through Ruling No. 137-2011-OS/CD

around 18%.

(27-7 - 2011) the Osinergmin conducted some price fixing at the generation level, and

In Peru, other distributors involved

to the unitary charges by rate, additional generation and unitary toll for compensation

in the power distribution system are:

that is added to the corresponding secondary Transmission Systems Tolls.

Ruling No. 138-2011-OS/CD (27-7-2011) which made an adjustment of the update factor

Luz del Sur, Electro Sur, Electrocentro,

ENOSA, Hidrandina and ENSA.

Also, Osinergmin by means of ruling Nº140-2011-OS/CD (27-07-2011) made an

adjustment to the surcharge factor is performed in the social power compensation fund

(FOSE).

During 2013, Edelnor had its rate review by Ruling No. 203-2013-OS/CD the

OSINERGMIN fixed the added Distribution values, fixed charges and rate calculation

parameters for the period from November 2013 to October 2017. Results show an

increase of 1.2% of Distribution Added Value (VAD) in the range of Edelnor, when

compared to the rate previously in force, so that the negative effect of the pre-

publication of OSINERGMIN which calculated a -4.9% with respect to the base of Dec-

12. This was confirmed by Rulings No. 255 and No. 256-2013-OS/CD of December 20,

giving answer to the Resources for Reconsideration filed by the distribution companies

of Lima.

155

Other businesses

Manso de Velasco

Inserted into the ENEA project is the Aguas Santiago

Poniente SA Company, which provides sanitary services

related to real estate development. Product of major new

housing and industrial buildings in ENEA, the company had

to expand its sanitary infrastructure which serves to date

Manso de Velasco focuses on the development of major

to more than 3,489 residential and industrial customers

real estate projects primarily in the management of the real

and treats 100% of the effluents of the project. In this

estate assets of the group in South America, in all matters

perspective, Aguas Santiago Poniente is in a phase of

relating to the purchase, sale and development of assets.

increasing its economic value, being certain of the existence

of clients requiring the services offered by the company

Its main project, named ENEA, corresponds to the real estate

associated with the development of ENEA.

development of a property, originally of 1,041 hectares,

strategically located in the west of Santiago, commune

Within its real estate business, Manso de Velasco also

of Pudahuel. Adjacent to the Arturo Merino Benitez

manages a total of 13,009 m2 of construction corresponding

International Airport, the project is being developed and

to office buildings, which are mostly rented to related

urbanized to sell lots to business, industrial, commercial,

companies and third parties.

residential, services, educational and other requirements.

Revenues of Real estate Manso de Velasco, consolidated for

The road connectivity of the project, each year is

2013 were $ 15,442 million

complemented by the construction of new linking roads,

streets, side roads and new accesses to highways. These

works allow ENEA to improve its already excellent connection

to the centers of the city, resulting in a significant value

ICT

increase for this Business Park.

ICT Computer Services Limited is a consulting, management,

contract administration and operation company in matters

Currently phases II and III and west are under development

related to the field of information systems, information

and marketing, which respond to the concept of Industrial

technology, telecommunications and control systems for

and Business Park. The project has a complete infrastructure,

Chile and South America, of which Enersis directly and

which has increased this past year, with new equipment

indirectly owns 100%.

and landscaping works, providing better service to the

subdivision and its users.

At a strategic level, the function of ICT aims to constantly

push, to provide better services in line with the new

During fiscal year 2013, ENEA advanced on the commercial

technological trends, managing the successful integration of

level. Major companies were integrated to the Business Park,

technological solutions in order to drive strategic initiatives

the sale made to the HJ ltda. Import and Export company of

of the Enersis group. ICT consistently makes contributions

4 hectares and Profit Summit for 1 hectare stand out, as do

to improved operational efficiency, helping boost the

the sales in Phase II to the following customers: Distribuidora

competitive advantage of the Group companies in the

Santa Barbara, Quinta S.A. and Empresas JR S.A. among

region, based on global best practices and standards in

others. The total sales during the year were $ 12,489,000,000.

technology matters.

156

DESCRIPTION OF THE ELECTRICAL BUSINESS BY COUNTRY

2013 ANNUAL REPORT ENERSISDuring 2013 ICT focused its efforts on improving the

customers new communication media. Additionally, the

continuous operation of information systems, at the same

implementation of projects which allow Chilectra to reduce

time it worked on the development and implementation of

operational costs in the billing and collection processes was

new projects in South America that will allow the Enersis

conducted.

Group to have cutting edge technology to meet new

strategic challenges.

Additionally, initiatives such as Web Pay and Pay

buttons were implemented; both initiatives incorporate

Regarding Generation Systems, this year we have worked

improvements in collection channels, enabling greater

in terms of the implementation of Phase I of the SCADA

functionality according to the trends, which aim to provide

systems of generators of Chile and Colombia. The region has

the best contact channels for Chilectra customers also

continued with the roll out of the SIVY system project which

allowing web payments.

will allow generators to integrate measurements from the

generation plants in each country. Additionally, there have

Regarding the Holding Systems, the update of web

been advances in SIGO and PGIS systems where a number of

systems and institutional platforms has been promoted,

improvements were implemented, limiting security risks and

implementing solutions that provide greater robustness and

limiting undue access to the data network and systems.

flexibility, allowing the incorporation of new technologies.

On matters of Telecommunications of Endesa Chile, intense

In generation systems in Chile, there have been technological

work has been conducted to ensure operational continuity

upgrading activities of the Meridian and GEMA platforms.

of services in generation plants in Chile, with the goal of

Particularly in Chile all the necessary technological

providing improved communications and the availability and

infrastructure for the beginning of the last phase of the

performance of the systems.

SCADA Generation project have been incorporated.

In terms of distribution systems at the regional level

advances have been made in the implementation of

strategic projects like GCORE which is successfully being

implemented in Colombia and Brazil, it is estimated that this

initiative will be launched during 2014 in Chile. In a similar

scenario, the regional SCADA distribution project, this has

been implemented successfully in countries such as Chile,

Colombia and Brazil.

In Chile, during the current year, improvement projects were

implemented in substation maintenance systems along

with improvements in the SIGMA platform related to the

management of public lighting. innovative projects like the

new MOBILE APP platform for smart phones have been

implemented, aimed at improving communication channels

with our customers according to global trends by providing

157

Ownership
structure

158

OWNERSHIP STRUCTURE

2013 ANNUAL REPORT ENERSISDirect and Indirect economic shareholdings

ARGENTINA
Costanera
El Chocón
Docksud
Edesur
CTM
TESA
CEMSA
Gasoducto Atacama Argentina

CHILE
Endesa Chile
Celta
Pehuenche
Canela
HidroAysén
GasAtacama
Chilectra
Transquillota
Túnel el Melón
GasAtacama Chile
Gasoducto Tal Tal
Electrogas
GNL Chile
GNL Quintero

BRAZIL
Endesa Brasil
Fortaleza
Cachoeira Dourada
Ampla
Coelce
CIEN

COLOMBIA
Emgesa
Codensa

PERU
Edegel
Edelnor
EEPSA

Notes
Gx: Generation
Dx: Distribution
Tx: Transmission / Commercialization
Ox: Gas pipelines, others
(*) Considers Enersis Group operational companies.

Business
Gx
Gx
Gx
Dx
Tx
Tx
Tx
Ox

Business
Gx
Gx
Gx
Gx
Gx
Gx
Dx
Tx
Ox
Ox
Ox
Ox
Ox
Ox

Business
Gx, Dx, Tx
Gx
Gx
Dx
Dx
Tx

Business
Gx
Dx

Business
Gx
Dx
Gx

Ownership
45.40%
39.21%
39.99%
71.61%
83.54%
83.53%
81.99%
30.75%

Ownership
59.98%
61.49%
55.57%
46.12%
30.59%
30.75%
99.09%
30.75%
59.98%
30.75%
30.75%
25.49%
19.99%
12.00%

Ownership
83.54%
83.54%
83.33%
91.63%
49.18%
83.54%

Ownership
37.72%
48.39%

Ownership
37.46%
75.54%
96.50%

159

Perimeter of Enersis’ Shareholding

99.99997%

99%

Inmobiliaria
Manso de Velasco Ltda.

ICT Servicios
Informaticos Ltda.

0.00003%

57.50%

Soc. Agrícola
de Cameros Ltda.

25.82%

Aguas Santiago
Poniente S.A.

53.06%

99.998243%

55.00%

Const. y Proyectos
Los Maitenes S.A.

Chilectra
Inversud S.A.

0.001757%

Deca S.A.

82.34%

(*) 94.95 % Emgesa

48.997%

Sociedad Portuaria
Central Cartagena S.A.

4.90%

Inversora
Codensa S.A.S.

100%

99.90%

Luz Andes S.A.

0.10%

Central
Dock Sud S.A.

69.992 %

0.0002%

99.9998%

Empresa Eléctrica
de Colina S.A.

Generalima S.A.

100 %

20 %

Empresa Electrica
Caboblanco S.A.

80 %

60%

36.50 %

Empresa Electrica
De Piura S.A.

Termoeléctrica Manuel
Belgrano S.A.

1.42%

Termoeléctrica José
de San Martín S.A.

1.42%

Central Vuelta
de Obligado S.A.

6.40%

Argentina

Brazil

Chile

Colombia

Peru

160

OWNERSHIP STRUCTURE

3.781705%

Compañía Eléctrica

Tarapaca S.A.

96.214172%

21.60%

Emgesa S.A.

26.873987 %

(*) 94.95 % sobre Sociedad

Portuaria Central Cartagena S.A.

0.0127644%

99.0778566%

59.98%

EEC S.A.

Codensa S.A.

Yacilec S.A.

9.35%

39.13%

22.22%

Inversora

Dock Sud S.A.

57.1417 %

55 %

Endesa Cemsa S.A.

45%

EASA

100%

27.1941%

23.4184%

22.2548 %

20.8477%

Distrilec

Inversora S.A.

0.8875 %

56.3577%

Edesur S.A.

Generandes

Perú S.A.

60.99845%

50.00%

54.19961%

Sacme S.A.

Edegel S.A.

29.3974%

Edelnor S.A.

24.00%

51.684%

Inversiones

Distrilima S.A.

69.846%

30.154%

50.093666 %

5.328342 %

Endesa Brasil S.A.

(Holdco)

3.996592%

34.640090%

5.941306%

0.0001%

Comercio e Serviços S.A.

Endesa Brasil

99.9999%

99.95%

Eólica Fazenda Nova

Geraçao e Comercializaçao

de Energia S.A.

10.344606%

21.383694%

21.022414%

46.886283%

Ampla

Energia S.A.

0.975 %

EGP

Modelo I Eólica

0.975 %

EGP

Modelo II Eólica

58.867455 %

100%

99.754055 %

Coelce S.A.

CIEN S.A.

C.G.T

Fortaleza S.A.

Cachoeira

Dourada S.A.

2013 ANNUAL REPORT ENERSIS99.99997%

99%

Inmobiliaria

Manso de Velasco Ltda.

ICT Servicios

Informaticos Ltda.

0.00003%

57.50%

Soc. Agrícola

de Cameros Ltda.

25.82%

Aguas Santiago

Poniente S.A.

55.00%

Const. y Proyectos

Los Maitenes S.A.

53.06%

99.998243%

3.781705%

Compañía Eléctrica
Tarapaca S.A.

96.214172%

21.60%

Emgesa S.A.

26.873987 %

(*) 94.95 % sobre Sociedad
Portuaria Central Cartagena S.A.

0.0127644%

99.0778566%

59.98%

Deca S.A.

82.34%

(*) 94.95 % Emgesa

48.997%

Sociedad Portuaria

Central Cartagena S.A.

4.90%

Inversora

Codensa S.A.S.

100%

99.90%

Luz Andes S.A.

0.10%

Central

Dock Sud S.A.

69.992 %

Chilectra

Inversud S.A.

0.001757%

0.0002%

99.9998%

Empresa Eléctrica

de Colina S.A.

Generalima S.A.

100 %

20 %

Empresa Electrica

Caboblanco S.A.

80 %

60%

36.50 %

Empresa Electrica

De Piura S.A.

Termoeléctrica Manuel

1.42%

Belgrano S.A.

Termoeléctrica José

de San Martín S.A.

1.42%

Central Vuelta

de Obligado S.A.

6.40%

EEC S.A.

Codensa S.A.

Yacilec S.A.

9.35%

39.13%

22.22%

Inversora
Dock Sud S.A.

57.1417 %

55 %

Endesa Cemsa S.A.

45%

EASA

100%

27.1941%

23.4184%

22.2548 %

20.8477%

Distrilec
Inversora S.A.

0.8875 %

56.3577%

Edesur S.A.

Generandes
Perú S.A.

60.99845%

50.00%

54.19961%

Sacme S.A.

Edegel S.A.

29.3974%

Edelnor S.A.

24.00%

51.684%

Inversiones
Distrilima S.A.

69.846%

30.154%

50.093666 %

5.328342 %

Endesa Brasil S.A.
(Holdco)

3.996592%

34.640090%

5.941306%

0.0001%

Endesa Brasil
Comercio e Serviços S.A.

99.9999%

99.95%

Eólica Fazenda Nova
Geraçao e Comercializaçao
de Energia S.A.

10.344606%

21.383694%

21.022414%

Ampla
Energia S.A.

46.886283%

0.975 %

EGP
Modelo I Eólica

0.975 %

EGP
Modelo II Eólica

58.867455 %

100%

99.754055 %

Coelce S.A.

CIEN S.A.

C.G.T
Fortaleza S.A.

Cachoeira
Dourada S.A.

Argentina

Brazil

Chile

Colombia

Peru

161

Perimeter of Endesa Chile Shareholding

2.4803%

18.85%

1.42%

18.85%

1.42%

33.2%

6.40%

41.9411%

Hidroinvest S.A.

54.1535%

59.00%

Hidroeléctrica
El Chocón S.A.

6.1938%

Endesa
Argentina S.A.

99.657366%

0.342634%

Southern Cone Power
Argentina S.A.

98%

2.0%

5.5%

Termoeléctrica
Manuel Belgrano S.A.

5.326%

49.6843%

Endesa
Costanera S.A.

24.8458%

Termoeléctrica
José de San Martín S.A.

5.326%

Distrilec S.A.

0.887466%

Central Vuelta de
Obligado S.A.

1.3%

Central Dock Sud S.A.

Chinango S.A.C.

1.00%

Ingendesa do
Brasil Ltda.

99.00%

Endesa Cemsa S.A.

55.00%

60.99845%

80.00%

34.640090%

26.873987%

Generandes
Perú S.A.

3.996592%

Endesa Brasil S.A.
(Holdco)

29.3974%

54.19961%

Edegel S.A.

Emgesa S.A.

26.873987%

21.60%

100%

Emgesa Panamá S.A.

Ampla S.A.

46.886283%

2.273448%

Coelce S.A.

CIEN S.A.

100%

99.95%

Eólica Fazenda Nova
Geraçao e Comercializaçao
de Energia S.A.

94.95%

Sociedad Portuaria
Central Cartagena S.A.

4.90%

Inversora
Codensa S.A.S.

0.001%

99.999%

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

99.999993%

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

100%

C.G.T
Fortaleza S.A.

0.01%

99.99%

EN - Brasil Comercio
e Servicios S.A.

99.754055%

Cachoeira
Dourada S.A.

0.975610%

EGP Modelo I Eólica

0.975610%

EGP Modelo II Eólica

162

OWNERSHIP STRUCTURE

99.9911%

Túnel el Melón S.A.

96.214172%

0.00886%

Compañía Eléctrica

3.781705%

Tarapaca S.A.

50.00%

Inversiones

Gas Atacama

Holding Ltda.

Atacama Finance Co.

99.90%

0.1%

Progas S.A.

0.05%

0.03%

Gas Atacama

Chile S.A.

99.90%

42.71%

0.1226%

Gasoducto Atacama

Argentina S.A.

57.23%

99.9%

99.877%

Gasoducto

Taltal S.A.

100%

Energex Co.

100%

Gasoducto Atacama

Argentina S.A.

Sucursal Argentina

Consorcio

Ara-Ingendesa Ltda.

50.00%

Central Eólica

Canela S.A.

75%

Transquillota Ltda.

0.057198%

50.99995%

Centrales

Hidroeléctricas

de Aysén S.A.

0.00005%

0.51%

99%

Aysén

Transmisión S.A.

99%

Aysén

Energia S.A.

0.51%

99.997706%

0.001147%

Gas Atacama S.A.

92.65%

Pehuenche S.A.

33.33%

GNL Chile S.A.

20%

GNL Quintero S.A.

42.50%

Electrogas S.A.

Argentina

Brazil

Chile

Colombia

Peru

Islas Caymán

2013 ANNUAL REPORT ENERSIS41.9411%

54.1535%

Hidroinvest S.A.

59.00%

Hidroeléctrica

El Chocón S.A.

6.1938%

2.4803%

18.85%

1.42%

18.85%

1.42%

33.2%

6.40%

Central Vuelta de

Obligado S.A.

1.3%

Central Dock Sud S.A.

Termoeléctrica

Manuel Belgrano S.A.

5.326%

49.6843%

Endesa

Costanera S.A.

24.8458%

Termoeléctrica

José de San Martín S.A.

5.326%

Distrilec S.A.

0.887466%

Endesa

Argentina S.A.

99.657366%

0.342634%

Southern Cone Power

Argentina S.A.

98%

2.0%

5.5%

1.00%

Ingendesa do

Brasil Ltda.

99.00%

Endesa Cemsa S.A.

55.00%

60.99845%

80.00%

34.640090%

26.873987%

Chinango S.A.C.

3.996592%

Endesa Brasil S.A.

(Holdco)

Emgesa S.A.

26.873987%

21.60%

100%

Emgesa Panamá S.A.

29.3974%

54.19961%

Generandes

Perú S.A.

Edegel S.A.

Ampla S.A.

46.886283%

2.273448%

Coelce S.A.

CIEN S.A.

100%

99.95%

Eólica Fazenda Nova

Geraçao e Comercializaçao

de Energia S.A.

94.95%

Sociedad Portuaria

Central Cartagena S.A.

4.90%

Inversora

Codensa S.A.S.

100%

C.G.T

Fortaleza S.A.

0.01%

99.99%

EN - Brasil Comercio

e Servicios S.A.

0.001%

99.999%

Transportadora

de Energía

del Mercosur S.A.

(Tesa)

99.999993%

Cía. de Transmisión

del Mercosur S.A.

(CTM)

99.754055%

Cachoeira

Dourada S.A.

0.975610%

EGP Modelo I Eólica

0.975610%

EGP Modelo II Eólica

99.9911%

Túnel el Melón S.A.

96.214172%

0.00886%

Compañía Eléctrica
Tarapaca S.A.

3.781705%

50.00%

Inversiones
Gas Atacama
Holding Ltda.

99.90%

Atacama Finance Co.

0.1%

Progas S.A.

0.05%

0.03%

Gas Atacama
Chile S.A.

99.90%

42.71%

0.1226%

Gasoducto Atacama
Argentina S.A.

57.23%

99.9%

99.877%

Gasoducto
Taltal S.A.

100%

Energex Co.

100%

Gasoducto Atacama
Argentina S.A.
Sucursal Argentina

Consorcio
Ara-Ingendesa Ltda.

50.00%

Central Eólica
Canela S.A.

75%

Transquillota Ltda.

0.057198%

99.997706%

0.001147%

Gas Atacama S.A.

50.99995%

Centrales
Hidroeléctricas
de Aysén S.A.

0.00005%

0.51%

Aysén
Transmisión S.A.

99%

Aysén
Energia S.A.

0.51%

92.65%

Pehuenche S.A.

33.33%

GNL Chile S.A.

20%

GNL Quintero S.A.

42.50%

Electrogas S.A.

Argentina

Brazil

Chile

Colombia

Peru

Islas Caymán

163

Significant events
of the entity

164

SIGNIFICANT EVENTS OF THE ENTITY

2013 ANNUAL REPORT ENERSISEnersis

2013

In accordance with Articles 9 and 10°, second paragraph, of Law No. 18,045 on the Securities Market,

and the provisions of General Rule No. 30 of the Superintendence, the following essential facts are

reported:

• On January 8, 2013, it was reported that Empresa Nacional de Electricidad SA (Endesa Chile), has

accepted the terms of the final and definitive amount to compensate for the losses related to the

effects of the earthquake on February 27, 2010 reported by the liquidator Becket SA Insurance

Adjusters in a letter dated on January 7, 2013. Such terms have also been accepted by all the

insurance companies.

Regarding the facilities of the Bocamina 1 power plant owned by Endesa Chile, a compensation

agreement has been reached for U.S. $ 85,665,673 for loss of profits and damages (U.S. $ 66,165,673

and U.S. $ 19,500,000 respectively) following the aforementioned earthquake. Our subsidiary has

received cash advances due to the event in the amount of U.S. $ 42,665,673.

Regarding Bocamina 2, also owned by Endesa Chile, the agreement involves compensations in the

amount of U.S. $ 112,999,528, of which U.S. $ 2,953,306 correspond to property damage and U.S. $

110,046,222 correspond to lost profits as a result of the incident (ALOP).

As of December 31, 2012, our subsidiary Endesa Chile registered an amount of U.S. $ 114,711,895 in

operating income as compensation for lost profits. This represents a profit for Enersis in the amount

of U.S. $ 55,043,356 after taxes and minorities.

• On January 22, 2013, it was reported that in connection with the communication of material fact

dated December 21, 2012, which accounts for the Capital Increase approved at the Extraordinary

Shareholder Meeting held on December 20, 2012, Enersis SA (“Enersis”) has taken steps in order

to study the placement of shares in Chile and in foreign markets through an ADR program (as such

term is defined in the communication), with the following investment banks / underwriters: J.P.

Morgan, BTG Pactual / Celfin, Bank of America Merril Lynch, Banchile, BBVA, Crédit Suisse, Deutsche

Bank, Goldman Sachs, HSBC, Larraín Vial, Morgan Stanley, Santander, Bank of Tokyo, Mitsubishi UFJ

Securities, BNP Paribas y Crédit Agricole.

165

It is stated that Enersis SA will provide the information

• On February 15, 2013, it is reported that in the Special

required under section II. 1b) of the communication, as

Board Meeting of Enersis held on this date, the following

soon as it becomes aware of it.

agreements were reached:

Nothing of what was informed by means of this essential

1) To report the registration of shares for payment in

fact constitutes an offer to sell securities in the United

the register of securities of the superintendence of

States of America. The securities may not be offered

securities and insurance under No. 971 dated February

or sold in the United States without registration or

13, 2013.

exemption from registration. Enersis intends to register

2) Initiate the preferential subscription period for

securities for public sale in the United States of America in

16.441.606.297 new payment shares issued by the

connection with its announced Capital Increase.

Company due to the Capital Increase approved at the

Extraordinary Shareholder Meeting of the Company

Any public offering of securities to be made in the United

held on December 20, 2012 (the “Meeting”) beginning

States will be made by means of a prospectus that may be

on February 25, 2013 and ending on March 26, 2013.

obtained from the issuer or the depositary of securities for

the Board agreed to approve in due course how the

sale and will contain detailed information about Enersis

shares which are not subscribed during the period

and its administration, as well as its financial statements.

of preferent option will be offered, as well as those

corresponding to fractioning of shares resulting from

•

On January 29, 2013, our subsidiary Endesa Chile reported

the apportionment among shareholders in a bid period

that under the international arbitration proceedings related

remaining under the terms and conditions set forth by

to the differences between the parties of the turnkey

the Board. Relevant publications were made in the El

construction contract of the Bocamina II Thermal Power

Mercurio newspaper.

Plant owned by Endesa Chile and was initiated by a request

3) The placement price at which such shares will be

for arbitration filed by our Company in October 2012 at

preferentially offered to shareholders of the Company

the International Chamber of Commerce in Paris (CII),

during the preferent option period is the sum of $ 173

Endesa Chile has been notified by the Technical Secretariat

per share, which corresponds to the price set by the

of the International Chamber of Commerce in Paris that

Board.

the Consortium SES-TECNIMONT separately proceeded

4) Approval of documents called Form F-3, Prospectus

to respond to the request for arbitration of Endesa Chile

Supplement, F-6 and 8-A and its entry into the

containing their claims and along with that, have sued

Securities and Exchange Commission (SEC) in the United

Endesa Chile reconvenctionally in the amount of U.S. $

States of America for the preferred offering on the New

MM1.294, in the case of Tecnimont and U.S. $ MM15, in the

York Stock Exchange. The Board has delegated to the

case of SES.

General Manager of the Company to determine the

onset of the preferential offering period in the United

Our subsidiary, Endesa Chile believes that the

States once all the necessary arrangements for this have

counterclaims are unsubstantiated, therefore our

been perfected.

Company will defend its position in this arbitration

proceeding, believing that it has the law and the facts in

•

On February 25, 2013, the following is reported as an

this dispute and that this has justified the collection of

essential matter of fact:

bank guarantee bonds due to serious breaches by the

Consortium.

That the necessary documentation has been registered

before the Securities and Exchange Commission (SEC)

In consideration of the foregoing, and bearing in mind

of the United States to begin the subscription period

the lack of grounds for the claims of the plaintiffs

of the Capital Increase approved by the Extraordinary

counterclaims, to date there is no recorded financial

Shareholder Meeting of the Company on 20 December

impact on the assets, liabilities or results of Enersis SA or

2012 in the market

its subsidiary Endesa Chile.

166

SIGNIFICANT EVENTS OF THE ENTITY

2013 ANNUAL REPORT ENERSIS

The documents entered before the SEC include Form F-3,

SA, equivalent to 9,967,630,058 options for a total

by which the issuance of these securities is recorded, and

acquisition value of $ 32,783,535,261 has been registered.

the prospectus supplement to the register as well as other

The value paid by Endesa SA to Endesa Latinoamérica SA

related documents. Copies of these documents were

is equivalent to $ 3.289 per option, value at which the

admitted today to the Superintendence of Securities and

options were trading at the closing on March 12, 2013.

Insurance pursuant to the provisions of Circular No. 1375

of February 12, 1998.

This has no financial effect on the assets, liabilities or

results of Enersis SA.

Citibank, NA, as Depositary Bank for the American

Depositary Shares (ADSs) of Enersis. Distributed to holders

• On March 21, 2013, the following is reported as an

of ADSs (each such ADSs representing 50 ordinary shares)

essential matter of fact:

rights to subscribe ADSs at a rate of 0.504 per ADS owned

by such holders at 17:00 hrs. New York City Time on

On today, Endesa, SA (Endesa Spain), comptroller of

February 25, 2013. The options about fractions of ADSs

Enersis SA, exercised all of the preferential subscription

will not be distributed, and any option on fractions will

rights that were granted by its subsidiary Endesa

be assembled and sold by Citibank, NA and the amount

Latinoamérica, SA, through the holding of a share

raised will be distributed to holders of ADSs which would

subscription agreement with Enersis SA. The contract

have been entitled to such fractions.

accounts for the subscription of 9,967,630,058 ordinary

shares for the ongoing Capital Increase of Enersis SA at

The subscription price for each ADS will be U.S. $ 19.19

a value of 173 pesos per share, corresponding to a total

per ADS, which equals $ 8,650 Chilean pesos plus an

subscription value of 1,724,400,000,034 Chilean pesos, in

additional 5% of that amount in order to cover potential

legal tender.

exchange rate fluctuations, the fee of the Trustee bank,

expenses and certain taxes. The subscription period

The total subscription value will be paid by Endesa Spain

for shares in the United States of America will begin on

by transferring all of its social rights in the Southern

February 26, 2013 and will end on March 21, 2013 at 14:15

Cone Holdings Ltd. partnership, which were approved

hrs. New York City time.

as a contribution of noncash property by the Enersis

Extraordinary Shareholder Meeting on December 20,

Preferred ADS options will trade on the New York Stock

2012. That contribution was valued by that corporate

Exchange under the symbol “ENI RT”. The beginning of

body in the sum of $ 1.724.400.000.034 indicated above.

the transaction is expected on February 26, 2013 and will

continue until March 15, 2013.

Until the suspension condition which is affecting the said

Capital Increase is not verified, the conclusion of that

J. P. Morgan, BTG Pactual and BofA Merrill Lynch have

contract to subscribe for shares has no financial impact on

been hired as Global Coordinators and Joint Bookrunners

the assets, liabilities or results of Enersis SA.

for the offering. Banchile, BBVA, Credit Suisse, Deutsche

Bank Securities, Goldman, Sachs & Co., HSBC, Larrain Vial,

•

On March 22, 2013, the following is reported as an

Morgan Stanley and Santander have been contracted as

essential matter of fact:

underwriters (“Bookrunners”) and BNP Paribas, Credit

Agricole CIB and Mitsubishi UFJ Securities have been

On today, Citibank NA, in its capacity as Depositary Bank

contracted as Co-Managers.

for ADR holders of Enersis SA, has communicated that

at the end of the preferred offering in the market of

• On March 14, 2013, the following is reported as an

the United States of America, which ended on Thursday

essential matter of fact:

March 21 2013 at 12:15 (Time of the City of New York)

preemptive rights for a total of 33,508,834 American

On today, the transfer to Endesa Latinoamérica SA,

Depositary Shares have been exercised, equal to

the controlling shareholder of Enersis SA and holder of

1.675.441.700 ordinary shares for the ongoing Capital

60.62% of the share capital of the Company made to

Increase of Enersis SA, with a total subscription value of $

Endesa, SA (Endesa Spain) of all of its options of preferent

624,939,754.10 of the United States of America Dollars.

subscription in the ongoing Capital Increase of Enersis

167

Until the suspension condition which is affecting the said

3. Authorize the General Manager, Don Ignacio

Capital Increase is not verified, the above subscriptions

Antoñanzas Alvear, to report compliance with the

ADR lack financial impact on the assets, liabilities or results

Condition and to publish the notice of the result to the

of Enersis SA.

Central Securities Depository and to the Santander

Also note that Enersis SA and its subsidiary Empresa

Given that the aforementioned Capital Increase

Eléctrica de Colina Limitada, dated yesterday formed a

operation is ongoing, the financial impact on the

company called “INVERSIONES SUDAMÉRICA LIMITADA”,

assets, liabilities or results of Enersis SA will be timely

based in Santiago de Chile, which will aim to develop and

communicated on completion of the said Capital

Bank.

carry out, at home or abroad, all the investments and / or

Increase.

businesses, especially investment in the power sector and

related industries, for itself or their parties, either directly

• On March 27, 2013, it is reported that in the Special Board

or through subsidiaries or affiliated companies. The

Meeting of the Company held on this date, the following

capital of this new subsidiary is the amount of 10,000,000

agreements were adopted:

Chilean pesos, which will be contributed and paid in cash

by the partners as follows: Enersis SA, 99.99999%, i.e.

1. Make known the result of the placement of the shares

9,999,999 Chilean pesos; and Empresa Eléctrica de Colina

of the ongoing Capital Increase during the preferential

Limitada, 0.00001%, this is 1 Chilean peso.

offer ended on March 26, 2013 at midnight, in which a

total of 16.284.562.981 shares were subscribed, a total

• On March 25, 2013, it is reported that on the Special Board

of 16.441.606.297 shares, which represents a placement

Meeting of the Company held on this date, the following

of 99.04% of the shares authorized for issuance.

agreements were adopted:

Consequently, there is a balance of 157.043.316 shares

yet to be placed. The amounts shown above include the

1. Declare fulfilled the condition precedent to which is the

shares subscribed in the local market and abroad.

Capital Increase of the company is subject to, agreed by

2. Making the offer of the remnant 157,043,316 shares,

Extraordinary Shareholder Meeting held on December

this will be conducted by an auction in the Santiago

20, 2012, in connection with the public offering of

Stock Exchange, to be held on Thursday, March 28, 2013

16.441.606.297 payment shares. The fulfillment of the

Given the aforementioned Capital Increase operation

precedent condition is in line with the terms approved

is ongoing, the financial impact on the assets, liabilities

by the aforementioned Shareholders.

or results of Enersis SA will be timely communicated on

Under this condition, all contracts for shares that were

completion of the above mentioned Capital Increase

subject to subscription and payment by shareholders

and / or third parties either in the preferent

• On March 27, 2013, the following is reported as an

subscription period or the remnant subscription

essential matter of fact:

period, at least 3,169,224,294 shares so as to allow the

Company controller to subscribe and pay 9,967,630,058

That on Thursday March 28, 2013 at 12:30 pm, the auction

shares, not exceeding the legal and statutory maximum

of 157,043,316 shares of Enersis SA will be held on the

concentration limit of 65% of the voting capital of the

Santiago Stock Exchange. Those shares were not those

Company.

which were placed in the preferent subscription period of

2. Approve the text of the notice to be published in the

the ongoing Enersis Capital Increase

El Mercurio newspaper on April 26, 2013, which will

inform the public on the compliance with this precedent

The auction will be divided into 15 lots of 10,000,000

condition, as a result of which all share subscription

shares each and a lot of 7,043,316 shares. Only ordinary

contracts will produce the integrity of its legal effects

shares will be offered. No ADRs will be auctioned.

and, therefore proceed to the registration of the shares

on behalf of the respective holder in the register of

The minimum price of the auction will be 178 Chilean

shareholders of Enersis and will be regarded as the date

pesos per share.

of subscription of the shares, the date on which the

shareholder or third party has subscribed the contract to

subscribe the shares.

168

SIGNIFICANT EVENTS OF THE ENTITY

2013 ANNUAL REPORT ENERSIS

• On March 28, 2013, the following is reported as an

•

On April 16, 2013, Enersis SA reported that at the Ordinary

essential matter of fact:

Shareholders Meeting held today, a new Board of Directors

was appointed for the company for a period of three years,

On today, Thursday March 28, 2013 at 12:30 pm via Celfin

made up of the following persons:

Capital SA Brokers and Merrill Lynch SpA Stock Brokers

we proceeded to sell at auction in the Santiago Stock

Sr. Pablo Yrarrázaval Valdés

Exchange a total of 157,043,316 shares of first issuance of

Sr. Borja Prado Eulate

Enersis SA at a price of 182.3 Chilean pesos per share. The

Sr. Andrea Brentan

total amount raised by the auction amounted to a total of

Sr. Luigi Ferraris

28,628,996,507 Chilean pesos.

Sr. Hernán Somerville Senn

Sr. Leonidas Vial Echeverría

The above mentioned auction ends the offer of the

Sr. Rafael Fernández Morandé

remnant of the Enersis Capital Increase which was

approved by the extraordinary shareholder meeting on

In a board meeting held following the above ordinary

December 20, 2012, with a subscription of 100% of the

shareholder meeting, Mr. Pablo Yrarrázaval Valdés was

total shares placing.

elected as Chairman of the board and, Mr. Borja Prado

Eulate as Vice Chairman, and as secretary of the Board, Mr.

This is the largest Capital Increase conducted in Chile and

Domingo Valdés Prieto.

positions Enersis SA as the only vehicle for expansion in

South America for the Enel-Endesa Group in the field of

Also at the aforementioned board meeting the board

conventional energy, being given the necessary resources

proceeded to the appointment of the Directors Committee

to undertake its growth in the region.

governed by Law 18,046 of stock trading corporations

and the Sarbanes Oxley Act, which was composed of the

The Capital Increase has allowed the incorporation of all the

Directors: Hernán Somerville Senn, Leonidas Vial Echeverria

assets that make up the equity of Cono Sur Participaciones

and Rafael Fernández Morandé. In accordance with the

S.L, provided by Endesa Spain and brings equity interests

provisions of Bulletin No. 1,956 of the Superintendence

of the generation, transmission and distribution sectors

of Securities and Insurance, reported that the three

of Chile, Peru, Colombia, Brazil and Argentina and in turn,

aforementioned directors are independent directors.

allow to raise the sum of 1,121,458,392,186 Chilean pesos,

which includes a premium of placement of shares of

Finally, it is communicated that the Board of Enersis has

1,460,502,839 Chilean pesos.

appointed director Hernán Somerville Senn as Financial

Expert of the Directors Committee.

Finally, note that once the periods of Preferential

Offer and the Capital Increase Remnant ended, a

• On May 16, 2013 and in accordance with the provisions of

total of 16,441,606,297 shares, corresponding to

Articles 9 and 10 °, second paragraph, of Law 18,045, on the

2,845,858,392,220 Chilean pesos, so which the total capital

Securities Market and the provisions of General Rule No. 30

Enersis will amount to 5,669,280,724,381 Chilean pesos has

of the Superintendence it is reported as an essential matter

been fully subscribed and is in the process of being fully

of fact that, on May 15, 2013 in the Republica Argentina

paid.

Ruling SE No. 250/13 of the Ministry of Energy, Ministry

of Federal Planning, Public Investment and Services (the

• On April 16, 2013, Enersis SA reported that in the Ordinary

“Ruling” ) was published, which authorizes compensation

Shareholder Meeting held today, it has been agreed

for the debt that our subsidiary Empresa Distribuidora Sur

to distribute a minimum mandatory dividend (partly

SA (“EDESUR”) recorded regarding income derived from

composed of Interim Dividend No. 86), and an additional

the implementation of the Program for the Rational Use

dividend, amounting to a total of $ 188,675,260,500.

of Electric Energy until February 2013, with the credit for it

Given that the said Interim Dividend No. 86 has already

arising from the recognition that the same Ruling makes of

been paid, it shall distribute and pay the remainder of the

the Cost Monitoring Mechanism for the six-month periods

Final Dividend No. 87, amounting to $ 148,991,647,050,

included between May 2007 and February 2013.

equivalent to $ 3,03489 per share.

169

Additionally, the aforementioned Ruling instructed the

• On July 4, 2013 the merger by absorption has been perfected

Compañía Administradora de Mercado Mayorista Eléctrico

between Inversiones Sudamérica Limitada (subsidiary at

Sociedad Anónima (“CAMMESA”) to issue Liquidations of

99,99999% of Enersis) and Cono Sur Participaciones, S.L.U.

Sales with a due date to be defined (the “liquidations”)

(100% subsidiary of Enersis), the latter becoming extinct. This

for the excess compensation values mentioned and

merger has produced all its effects retroactively as of July 1,

authorized Cammesa to receive such Liquidations as

2013.

part-payment of debts by economic transactions in the

Wholesale Electricity Market (“MEM”) and other debts

Cono Sur Participaciones, S.L.U. was the corporation by

EDESUR maintains with it. Finally, it instructs EDESUR to

which Endesa Spain, controller of Enersis, made the payment

give the surplus to the Trust consisting of ENRE Ruling

corresponding to its shareholding proportion in the Capital

No. 347 of November 23, 2012 and its withdrawal of

Increase approved by the Enersis Extraordinary Shareholder

administrative claims filed by requesting recognition of

Meeting dated in December 2012.

higher costs in excess of the Cost Monitoring Mechanism

stated in the Ruling and the comprehensive rate review.

• On November 26, 2013, Enersis SA reported that at its

board meeting today, the Board of Enersis SA, agreed by

Flat rate, the financial effects of the Ruling on the

unanimous vote, to pay on January 31, 2014, an interim

consolidated results of Enersis SA are estimated at the

dividend of $ 1.42964 per share, charged to the income

equivalent of about USD $ 398 million in EBITDA and in

statement of 2013, corresponding to 15% of the net

approximately the equivalent of $ 327 million in the result

profits calculated as of September 30, 2013, in accordance

line, Net of Minorities.

• On May 29, 2013 and in accordance with the provisions

of Articles 9 and 10 °, second paragraph, of Law 18,045,

on the Securities Market and the provisions of General

with the

2012

Rule No. 30 of the Superintendence it is reported as an

By means of Essential Fact submitted on January 31, 2012,

essential matter of fact in regular Session of the board

Enersis S.A. informs that Enersis S.A. has recorded a provision

of directors of Enersis SA held as of May 29, 2013, has

to assets of its subsidiaries Empresa Distribuidora Sur S.A.,

agreed to propose the relevant corporate bodies to their

and Central Costanera S.A., whose impact on the results of

subsidiaries Inversiones Sudamérica Limitada (99.99999%

Enersis S.A. amounted to MM$106,750.

Officer) and Cono Sur Participaciones, S.L.U. extinguishing

the latter. Cono Sur Participaciones, S.L.U. is the company

The above has been included in the Consolidated Financial

through which Endesa Spain, controller of Enersis SA, paid

Statements as of December 31, 2011, approved by the Board

in kind corresponding to its shareholding proportion in

of Directors in the meeting held today. If such adjustments

the Capital Increase approved by the Extraordinary Enersis

has not been recorded, the results of Enersis S.A. would have

SA Shareholder meeting on December 20, 2012.

been similar to those for year 2010.

Also it was authorized, that once the aforementioned

On February 2, 2012, the Company informs that the

merger by absorption, Enersis SA advanced with the

information contained in Essential Fact sent on January

acquisition of the minority shareholding of 0.00001% its

31, 2012, disclosing the provisions to assets of subsidiaries

subsidiary Empresa Eléctrica de Colina limitada owns in

Empresa Distribuidora Sur S.A. (Edesur) and Endesa

Inversiones Sudamérica Limitada. Due to this acquisition

Costanera S.A. (Central Costanera), recorded and that

all Property of Inversiones Sudamérica in Enersis SA, will

impacted the results of Enersis S.A. in MM$106,750, is being

be gathered at that time, as the direct owner of all the

complemented.

shares in South America that were contributed by Endesa

Spain during the Capital Increase.

170

SIGNIFICANT EVENTS OF THE ENTITY

2013 ANNUAL REPORT ENERSIS
With this respect, it is worth mentioning that such amount

This will represent a distribution of $ 139,880,862 thousand

responds to the effect on Enersis of the following:

of the results at December 31, 2011.

• A provision for losses recorded as an impairment

This modifies the current dividend policy which determined

account related to Property, Plant and Equipment of

the distribution of a 55% dividend payout of the

Edesur totaling $ 69,607 million, net of non-controlling

distributable net income of the Company.

shareholdings (see note 15 d) vii) of the Consolidated

Financial Statements as of December 31, 2011).

In the Ordinary Shareholders’ Meeting of Enersis S.A. held

on April 26, 2012, the shareholders agreed to distribute a

• The reversal of tax credits on taxes paid out by Edesur and

minimum mandatory dividend (partially paid by Provisional

Endesa Costanera for $ 17,220 million and $ 7,723 million,

Dividend No. 84) and an additional dividend, for a total of

respectively, net of non-controlling shareholdings.

$ 5.74970. Given that the above mentioned Provisional

• Finally, a provision for losses recorded as an impairment

the remaining amount of the Definitive Dividend No. 85, for $

Dividend No. 84 was already paid, we will distribute and pay

account was made on existing goodwill balances in Edesur

4.28410 per share.

and Endesa Costanera, amounting to $ 8,931 million

and $ 3,269 million, respectively, net of non-controlling

On July 13, 2012, Enersis informs that through ENRE

shareholdings (see note 14 of the Consolidated Financial

Resolution N° 183/2012, dated July 12th 2012, from the

Statements as of December 31, 2011).

Argentine electric regulatory entity, Mr. Luis Miguel Barletta

was designated as supervisor of our Argentine subsidiary,

In the case of Edesur, the measures above are attributable

Empresa Distribuidora Sur S.A. (Edesur). This designation

to the uncertainties generated by the delays in the

does not replace the company’s current management, nor

recognition of tariff adjustments via the semi-annual Cost

does it represent a type of joint management.

Monitoring System (MMC, in its Spanish acronym) and

the implementation of an Integral Tariff Review (RTI, in its

In its meeting held today, July 25, 2012, Enersis S.A.’s

Spanish acronym).

Board of Directors agreed to summon an Extraordinary

Shareholders Meeting to be held on September 13, 2012

With respect to Endesa Costanera, the situation is

at 10:30 a.m., at The Marriott Hotel, Av. Kennedy N° 5741,

attributable to the difficulties in obtaining adjustments to

Las Condes, Santiago, Chile with the purpose to address the

revenue sufficient to cover real generation costs, working

following issues:

capital deficits, due to difficulties in the collection of the

system operator’s sales, all of which factors have an impact

1. Increase capital for the amount, equivalent in Chilean

on the company’s short-term financial stability.

pesos, of US$ 8,020 million or In the amount determined

by the Extraordinary Shareholders Meeting, through the

On February 29, 2012, the Board of Directors of Enersis S.A.,

issuance of a certain number of common shares to be

unanimously agreed to propose to the Enersis Ordinary

determined by the Meeting, to be paid in cash and/or in

Shareholders Meeting, to maintain the same dividend

kind. The shares to be issued will be nominative, all of

payout ratio paid for the previous period; namely, 50% of

the same special issuance, without any preference, and

the Company’s distributable net income. For this period,

without a nominal value.

such percentage is equivalent to $ 5.7497 per share, from

which the interim dividend of Ch$ 1.46560 per share paid in

2. Approve each and every contribution in kind subject to

January 2012 must be deducted. Therefore, the amount to be

being capitalized, as well as their respective estimated

distributed as a final dividend to shareholders would be Ch$

appraisals carried out by the independent expert

4.2841 per share.

appraiser, Mr. Eduardo Walker Hitschfeld, whose report

171

will be made available today to the shareholders on

resolution of the ESM at the company’s headquarters,

the company’s web site at www.enersis.cl. The report

located in Santa Rosa 76, 15 th Floor, Santiago, Chile, fifteen

estimates the total value of the contribution in kind in US$

days prior to the Meeting. The complete information will

4,862 million.

also be made available on the Company’s web site.

3. Agree on a value or price of issuance for the shares which

On August 3, 2012, Enersis S.A. informs that it was notified

will correspond to the capital increase that is agreed upon

by the Ordinary Official Letter 18,684 issued by the

or delegate the determination of such value upon the

Superintendence of Securities and Insurance that it must

Board of Directors.

submit the capital increase operation proposed by the

4. Modify the company’s bylaws in accordance to the

to operations among related parties.

agreements adopted in connection with the capital

increase and authorize the Company’s Management to

The company takes note of the administrative interpretation

submit a consolidated and updated version of the bylaws.

and will evaluate, within the Board of Directors, what should

controlling shareholder to Title XVI of Law N°18,046, related

be done, as a result of this new situation.

5. Adopt all necessary agreements that may be needed

and convenient for the full execution of the respective

Notwithstanding the above, it is important to reaffirm

decisions adopted at the Meeting including, but not

Enersis S. A and its Board of Directors have the conviction

limited to, the determination, timing, and procedure

that they have acted in good faith, strictly according to

for the issuance of shares corresponding to the capital

the applicable legislation, highlighting that they had

increase, the registration of such shares in the Registry

been particularly careful to search for the advice with due

of Securities, the period for issuance, subscription

anticipation, consulting with, and obtaining from, prestigious

and payment of the shares; the establishment of the

local legal firms legal reports that, categorically confirmed

procedure for the issuance of any follow on shares left

that they were proceeding correctly.

over after a preemptive rights’ issuance; or the full

empowerment of the Board of Directors for each of these

The Board of Directors of Enersis S.A., in its Extraordinary

items, or for the adoption of any other agreement that

Session held on August 9, 2012, has decided the following:

may be needed to supplement or grant compliance to

whatever may be resolved at the Meeting, or to satisfy

1. Notwithstanding its opposition with the legal arguments

any legal, regulatory, or administrative requirement of the

contained in Ordinary Official Letter 18,684 issued by the

Superintendence of Securities and Insurance, the Chilean

Superintendence of Securities and Insurance on August

Tax Authority or, in general, any other publicly competent

3, 2012, the Board declared its intention to continue with

entity, and delegating powers for such purposes on the

the capital increase process which had been proposed by

Chief Executive Officer, the Deputy Chief Executive Officer

the controlling shareholder, supplementing such process

and the Company’s Counsel so that any of them, acting

with procedures that may be deemed appropriate for the

on an individual manner, may carry out all the actions and

purpose of compliance with the dispositions contained in

legal steps that may be required or convenient to fully

Title XVI of the Corporations’ Act.

bring about what has been hereby described.

6. Information on all agreements relating to related party

summons to an Extraordinary Shareholders’ Meeting

operations referred to in Title XII of Law 18,046 and any

which had been planned for September 13, 2012, until

others that may have been subsequent to those informed

such date as may be determined opportunely.

2. As a consequence, the Board decided to postpone the

in the last Extraordinary Shareholders Meeting, if any.

Shareholders may obtain a copy of all the documentation

22, 2012, with the purpose of adopting the decisions that

that explains and backs the items submitted for the

may be deemed appropriate in compliance with these

3. Finally, the Board decided to summon a session for August

referenced procedures.

172

SIGNIFICANT EVENTS OF THE ENTITY

2013 ANNUAL REPORT ENERSISThe Board of Directors of Enersis S.A. (the “Company”) in

We also inform that the Directors Committee is searching for

its Ordinary Meeting held August 31, 2012, has decided

an independent appraiser in compliance with article 147 of

the following regarding the capital increase in place (the

the LSA.

operation):

The Directors Committee of Enersis S.A. in its extraordinary

1. Inform that the since Directors Pablo Yrarrázaval Valdés

meeting held September 7, 2012, decided to engage Claro

(Chairman), Andrea Brentan (Vice chairman), Rafael

y Asociados Ltda. as independent appraiser in connection

Miranda Robredo, Hernán Somerville Senn, Leónidas Vial

with the capital increase, based on the firm’s independence,

Echeverría and Eugenio Tironi Barrios, had been elected

absence of conflicts of interest, and technical and

with the votes of the controlling shareholder of the

professional competence. The above in compliance with the

Company had declared having interests in the operation in

formalities established by Title XVI of the Corporations Law

terms of Article 147 of the Corporations Law, considering

(LSA)

the dispositions of the Memorandum N° 21,001, issued

August 29m 2012 by the SVS.

On September 20, 2012, the controlling shareholder, Endesa

S.A. (Spain) has disclosed, as a Significant Event the attached

2. Inform that the Chief Executive Officer, Mr. Ignacio

presentation, in Spanish and in English. A copy of such

Antoñanzas Alvear, for having a position in Endesa

presentations are also available on the Endesa, S.A. website

Latinoamérica, S.A., controlling shareholder of the

(www.endesa.es) and will soon be available on Enersis S.A.

Company, has declared that he also has interests in the

website (www.enersis.cl).

operation in terms of Article 147 of the Corporations Law.

Therefore, the Board defined the parameters required for

On October 24, 2012 the Company informed that the Enersis

the Chief Executive Officer to be able to act with respect

Directors’ Committee officially received in its extraordinary

to the operation.

session officially received the report from Claro y Asociados,

independent appraisers designated by the aforementioned

3. Inform that the Board has agreed to continue with the

committee on September 7 th in relation to the Enersis’

referred operation and that in order to do so has begun

proposed capital increase operation.

the process of seeking an independent consultant

for purposes of the provisions in article 147 of the

The Company also informs that Enersis’ Board of Directors, at

Corporations Law, regardless of what is to be resolved by

its extraordinary meeting formally received the report from

the Directors Committee.

IM Trust, independent appraisers designated by the Board on

September 5 th in relation to the capital increase operation

4. Inform that the Board is aware of the letter received

in progress.

by the controlling shareholder of the Company by

means of which it confirms its interest In continuing

In accordance with legal requirements, these reports

the capital increase process proposed and requests

refer to the conditions of the in progress capital increase

calling, when appropriate, a shareholder meeting,

operation, to its effects and potential impact on Enersis, and

taking into consideration the dispositions of Title XVI of

to additional issues subject to evaluation which have been

the Corporations Law and in such terms and with the

expressly raised by the Board of Directors, the Directors’

anticipation necessary for all Enersis S.A. shareholders,

Committee, and by its members.

including ADR holders, to participate in such Meeting.

As of this date, copies of these reports will be at the

The Board of Directors of Enersis S.A., in its extraordinary

shareholders’ disposal at Enersis’ headquarters, and on the

meeting held September 5, 2012, has decided to contract

company’s website at www.enersis.cl.

IM Trust, as independent appraiser of the capital increase,

due to its high technical and professional competence

These reports are added to the report of Mr. Eduardo Walker

and its renowned prestige on these matters as well as

H., which is already in the above-mentioned website.

its independence, in compliance with Title XVI of the

Corporations Law (LSA).

173

On October 30, 2012, the Company informs that at its

The Board of Directors of Enersis stated during its session

extraordinary meeting which began yesterday, and ended

held October 31, 2012, that Endesa’s proposal contributes to

early this morning, the Enersis Directors’ Committee officially

the best interest of Enersis and that a future board meeting,

issued its report in connection with the capital increase

will adopt the measures deemed appropriate to protect such

operation of Enersis S.A. in progress, and in compliance with

best interests of Enersis and of those who would participate

the norms set forth in article 50 bis of the Corporations Law.

in the aforementioned capital increase.

As of this date, copies of this report is at the shareholders’

On November 6, 2012, the company informs that at its

disposal at Enersis’ headquarters, located in Santa Rosa

meeting held today, the Enersis Board of Directors agreed

76, 15 th Floor, Santiago, Chile (Investor Relations and Risk

to summon an Extraordinary Shareholders Meeting in

Department), and on the company’s website at www.enersis.

order to give an announcement about the capital increase

cl.

in progress, in the same terms that was proposed by our

parent company Endesa, S.A. (“Endesa España”) as a single

On October 31, 2012 the company informs that Enersis’

operation. In such meeting, shareholders would be informed

Directors have officially delivered, within the deadline

about other subjects not related to the capital increase.

prescribed by the Corporations Law, their individual opinions

Such Extraordinary Shareholders Meeting will be held on

for the purposes of provisions in numbers 5 and 6 of article

December 20, 2012, at 12:30 p.m. (Santiago time), in the “Las

147 of the Corporations Law, in connection with the capital

Américas” room of the Intercontinental Hotel, located in

increase operation in progress.

Vitacura Avenue 2885, Las Condes, Santiago.

As of this date, a copy of the above mentioned opinions

The issues that will be submitted to the knowledge and

will be at the shareholders’ disposal at the company’s

decision of the ESM are the following, which may be

headquarters, located in Santa Rosa 76, 15 th Floor,

discussed in the order determined by the Extraordinary

Santiago, (Investor Relations and Risk Department), and on

Shareholders Meeting, therefore the agreements to be

the company’s website at www.enersis.cl.

adopted will be duly consistent:

On October 31, 2012 the company informs that Enersis S.A

1. Approve, in accordance with the terms of Title XVI of Law

has received a letter from Endesa S.A. (Endesa Spain or

18,046 of the Chilean Companies Act (“LSA”, in its Spanish

Endesa) dated October 30, 2012, presenting a conditionality

acronym), the related parties transaction, which consists

proposal regarding the Enersis’ capital increase ongoing

of the capital increase described in the following points of

process. The letter is attached to this form.

this notification, taking into consideration the information

Through this letter, Endesa formally requests to Enersis’

Company’s headquarters and on the Company’s website:

that for this effect is available to shareholders at the

Extraordinary Shareholder Meeting, which will address to

www.enersis.cl.

the capital increase, that the subscription and payment of

the issued shares as a result of the operation be subject

2. Increase the issued capital by an amount in Chilean Pesos,

to a conditional clause consisting in that those minority

the legal currency of Chile, which will not be lower than

shareholders subscribe and pay, either in one or more

US$ 5,915 million nor higher than US$ 6,555 million at

preemptive rights’ subscription periods a minimum number

an exchange rate of Ch$ 482.29 per US Dollar, or by the

of shares that would allow Endesa to subscribe at least its

amount that the Extraordinary Shareholder Meeting

right to shares without exceeding the aforementioned legal

determines. This capital increase will be accomplished

and by-law 65% threshold of shares issued with voting rights.

via the issuance of the number of shares that will be

If the total number of shares subscribed and paid implies that

determined for this effect. All the shares that will be

Endesa exceeds such limit, the condition shall automatically

issued will be nominative and ordinary from a single

be deemed not satisfied and the subscription contracts of

special series without preference and without nominal

shares would have no legal effect, returning the amounts

value, to be called Series B. This Series B will have exactly

delivered for the shares to the subscribers.

the same rights as the shares already issued, with the only

174

SIGNIFICANT EVENTS OF THE ENTITY

2013 ANNUAL REPORT ENERSISone exception of their exchange rights. Series B will be

6. Approve that all the share subscription contracts are

created with the single purpose of differentiating these

subject to the fulfillment of a conditional clause whereby

new shares from those already issued, since all of the

the interested parties should subscribe and pay, whether

latter are governed by the Exchange Convention agreed

during the preemptive subscription period or during

to on September 24, 2008 between Enersis S.A. (the

the remaining subscription period, at least a quantity

“Company”), Citibank N.A. and the Chilean Central Bank.

of shares that makes it possible for the parent company

Endesa España to subscribe and pay for the total amount

3. Approve those non-monetary contributions that may

of shares that corresponds to it in accordance with

be capitalized and their respective contribution values,

the pro-rata, without exceeding the legal and by-laws

submitting to discussion for the effects of articles 15

threshold of 65% of the outstanding issued shares with

and 67 No. 6 of the LSA the estimations included in the

voting rights. In the event that the total amount of

independent appraisal reports issued by Mr. Eduardo

shares subscribed and paid implied that Endesa España

Walker Hitschfeld,, by IM Trust and by Claro y Asociados.

exceeded this threshold, the clause would be understood

These reports are available to shareholders on the

automatically failed and all the share subscription

Company’s website: www.enersis.cl and at the Company’s

contracts would not produce any legal effect and would

headquarters. Therefore, the shares that are issued as

be returned to the subscribers their amounts.

part of the capital increase will be paid in cash and with

the contribution of ownership of all the equity interests

7. Approve the use of proceeds arising from the capital

of Cono Sur Participaciones S.L., a company that will

increase.

group together the shares detailed in the aforementioned

reports.

8. Amend articles fifth permanent and second transitional

of the Company’s by-laws according to the agreements

4. Agree on a subscription’s price of the shares that are

adopted in the present Shareholders Meeting on

issued or establish a formula and, in the latter case,

the capital increase and to authorize the Company’s

delegate the final decision about such price, to the Board

management to provide a consolidated and updated text

of Directors, as long as the subscription starts within the

of by-laws.

180 days following the date of the Meeting, in accordance

with article 23 of the Corporations Rule. Bearing in mind

9. Agree on those other aspects of the described capital

the resulting subscription’s price, the Board of Directors

increase operation that the Shareholders Meeting deem

must offer the quantity of shares corresponding to the

the case to approve, being accessories or functional to

number of shares that is strictly necessary so that, in

the aforementioned operation.

relation to such price, the amount of the capital increase

is obtained. Information will be made available about

10. Adopt all necessary agreements conducive and

the treatment that will be given to the issuing and

convenient for the development and implementation

subscription cost of the shares issued, as well as the

of the respective decisions adopted by the Meeting,

amount of the shares issued.

including, but not limited to determine the form, time

and method of subscription of shares for the capital

5. Establish that the first Instance of the share subscription

increase; registration of the issue of shares in the

offer must be made within the preemptive subscription

Securities Registry; term issue, subscription and payment

period established in article 25 of the LSA, and the

of shares; establish the procedure for the subscription of

remaining shares not subscribed within that period must

the remaining shares that are not subscribed within the

be offered in a remaining subscription period, at values

preemptive subscription period; or broadly empower

not lower, nor in more advantageous conditions, than

the Board of Directors to all these effects, as well as to

those offered in the preemptive subscription period.

enable it to take any agreements required to complete

Additionally, agree on the deadlines within which the

or comply with decisions reached by the Meeting, or to

shares must be issued, subscribed and paid.

meet any legal, regulatory or administrative provision

175

or requirement of the Superintendence of Securities and

On November 6, 2012, the Company informs that the Board of

Insurance, the Securities and Exchange Commission of

Directors of Enersis S.A. agreed on several matters of interest

the United States of America, Internal Revenue Service,

to shareholders with respect to the capital increase operation

or in general, any other public authority, authorizing to

proposed by the controlling shareholder Endesa, S.A. (“Endesa

the CEO, the Deputy CEO and Attorney of the Company

España”).

to any one individual acting they make all the measures,

proceedings and legal acts which are necessary or

First of all, the Board gave Its opinion in terms of the use of

convenient to carry out the aforementioned.

proceeds, indicating that funds obtained by the Company, If

the capital increase operation in progress was consummated,

11. Ratify the Third Private Rating Agency Designated by the

would be mainly used for the following: purchase shareholdings

Board of Directors of the Company.

in companies that Enersis S.A. already consolidates, and

12. The following information not related to the capital

S.A. currently operates, that contribute to the best interest

acquisitions in the region and in activities in which Enersis

increase:

of the Company because they add value and allow taking

advantage of market opportunities. The above mentioned,

12.1. Request from Public Company Accounting Oversight

notwithstanding that the Board must approve each and every

Board (PCAOB) Of the United States of America to the

one of the analyzed operations, which must be evaluated

external auditors of the Company Ernst & Young.

individually, specifically and with detail according to the

administration powers assigned to the Board.

12.2. Agreements on operations with related parties

governed by Title XVI of the LSA, adopted after the

Also, the Company’s Board of Directors approved Endesa Spain’

last Ordinary Shareholders’ Meeting and other Board’s

s contribution in kind of its shareholdings described by the

agreements that must be reported.

independent reports issued by the experts Eduardo Walker

Hitschfeld and the evaluators IM Trust and Claro y Asociados

None of the aforementioned propositions prevent the ESM,

and stated that the value of such contribution in kind should

in its full powers, from accepting, rejecting, modifying them

fall within a range not lower than US$ 3,586 million and not

or from agreeing to something different, as the case may be.

higher than US$ 3,974 million or in the amount equivalent

in pesos, legal currency, that finally is determined by the

The shareholders are informed that the Board of Directors

Extraordinary Shareholders Meeting. The Board of Directors

has agreed that the qualification of Powers of Attorney will

officially noted that with this approval, the dispositions of

take place on December 17, 18 and 19, 2012 at the Company’s

article 14 Bis of the by-laws were being fulfilled, and that, by

headquarters, located at Santa Rosa 76, Downtown Santiago,

no means, could this be considered an opinion within the terms

from 9:30 to 12:30 and from 15:30 to 18:00 (Santiago time),

of Title XVI of the Corporations Law 18,046, and therefore has

and on the same day as the ESM, between 11:30 and 12:30,

no relation with what finally will be resolved by Extraordinary

at the same place as the meeting will be held. The day of the

Shareholders Meeting that will express its opinion with respect

ESM, the Powers of Attorney will only be received until 12:30

to the capital increase in compliance with the dispositions of

p.m., when the reception of these will be closed; therefore,

such Title and articles 15 and 67 of the Corporations Law. The

only Powers of Attorney received before that time will

Board noted that such value range was approved by six of the

qualify.

seven members of such corporate body, complying with the

special quorum established by article 14 Bis, which requires the

The shareholders may obtain a complete copy of the

approval of at least two thirds of the Board of Directors, and,

documents that explain and detail the matters that are

considering that the arguments to support such decision were

submitted for the information and decisions of the ESM at

contained in the respective individual opinions that each of the

the Company’s headquarters, located at Santa Rosa 76, 15

concurring Directors issues with respect to this operation and

th Floor (Investments and Risk Department), Santiago, Chile,

that are available to the Company shareholders in the respective

fifteen days before the meeting is held, as well as at the

Website and at the main office.

Company’s website.

176

SIGNIFICANT EVENTS OF THE ENTITY

2013 ANNUAL REPORT ENERSISAdditionally, with respect to the Significant Event dated

On November 12, 2012 the Company informs that on

October 31, 2012, regarding the capital increase in progress,

November 21, 2012 the Company received a communication

the Board of Enersis S.A. has proceeded to analyze the

from pension fund administration companies AFP Habitat

different measures to safeguard the Company’s equity, and

S.A., AFP Planvital S.A., AFP Provida S.A., AFP Capital

of those that subscribe the capital increase, which will be duly

S.A., AFP Cuprum S.A. and AFP Modelo S.A., all of them

published and brought to the knowledge of the market and

shareholders of Enersis S.A. altogether representing

the shareholders.

13.63% of the Company’s voting shares. Through this

communication, (which is enclosed to this letter), the above-

Finally, the Board agreed to request that Endesa España

mentioned shareholders request the summoning of an

give its opinion with respect to the following matters,

additional Extraordinary Shareholders’ Meeting of Enersis

regarding the capital Increase in progress: (i) offer certain

S.A. to be held before the Extraordinary Shareholders’

representations warranties with respect to Piura, Yacylec and

Meeting already summoned by the Board of Directors for

Central Dock-Sud; (ii) Commitment In terms of Enersis S.A.

December 20, 2012 at 12: 30 hours.

being the only investment vehicle of the Enel Group in South

America, with the exception of the activities currently being

Likewise, the Company informed that given the request

developed through Enel Green Power and those that may

submitted by the above-indicated shareholders, and

developed in the future by the latter In the renewable energy

in accordance with the provisions of article 58 N°3 of

field; and (iii) the commitment to protect Enersis, regarding

Corporations Law 18,046, the Enersis Board of Directors in

tax contingencies derived from the structure of the and (iv)

an extraordinary meeting held this afternoon, agreed to

maintain the commitment to not promote an extraordinary

summon to an Extraordinary Shareholders’ Meeting “to be

distribution of dividends as a consequence of the capital

duly apprised about the reasons of the Board of Directors

increase in progress.

and of each one of its members, with regard to the decision

of summoning to an Extraordinary Shareholders’ Meeting

On November 8, the Company informs that it has received

to approve a capital increase payable in kind and in cash, as

additional information from the controlling Shareholder,

proposed by the controlling shareholder Endesa S.A. (Spain)

Endesa S.A. regarding its position with respect to certain

and, in particular, to inform the following:

specific aspects of the referred Capital Increase proposed.

a) which will be the proposal of the Board of Directors or of

On November 9, the Company informs that the controlling

each of its members with respect to the exchange ratio

Shareholder, Endesa S.A. has begun an investor road show in

between the Enersis’ new shares representing the capital

connection with the proposed Enersis S.A. capital increase.

increase and the package of assets to be contributed by

Attached you will find a copy of the presentation, in English

the controlling shareholder, as well as the reasons that

and Spanish, disclosed as part of such road show. Copies of

would justify the convenience of such proposals, both for

these presentations are also available on Endesa, S.A.’s web

the Company and for all its shareholders, as well as the

page (www.endesa.es) and will be soon available on Enersis

manner in which such proposals would allow compliance

S.A.’s web page (www.enersis.cl)

with the provisions of article 30 of Law No 18,046;

On November 12, the Company informs that the controlling

b) the reasons for which Board Members have had to

Shareholder, Endesa S.A. has submitted a Significant Event

propose a floor or minimum value of the assets with which

to the National Securities Market Commission of Spain,

the controlling shareholder intends to contribute to the

attaching an enlarged presentation for its investor road show

capital increase;

in connection with the proposed capital increase in Enersis.

Attached to this letter is a copy of this presentation in English

c) the reasons of the Board of Directors and its members that

and Spanish. Copies of these presentations are also available

would justify the convenience of materializing a capital

on Endesa, S.A.’s web page (www.endesa.es) and will be

increase that would exceed the amount of assets that

soon available on Enersis S.A.’s web page (www.enersis.cl)

the controlling shareholder intends to contribute to the

Company; and,

177

d) to inform and explain the provisions of the ADR Deposit

Finally, attached herewith is a copy of Enersis S.A.’s Board

Agreement on the use of non-voting ADRs and the

of Directors response to Official Letter No. 28,292 dated

manner in which to exercise the votes of the referred ADR

December 3, 2012, issued by the Superintendence of

holders.

Securities and Insurance, regarding the enquiries made by

the AFPs and the SVS itself.

Such Extraordinary Shareholders’ Meeting will be held

on December 14, 2012 at 12:30 p.m. at the Enersis

On December 18, 2012, the Company informs that the

Group’ Stadium located in Carlos Medina Street No 858,

Directors’ Committee has reviewed and by unanimity of its

Independencia, Santiago.

members, has referred to the Board of Directors without

observations the subscription contract of shares to be held

On November 29, 2012 the Company informs that the Board

between Enersis S.A. and its controller, Endesa, S.A., for

of Directors of Enersis S.A., in a meeting held yesterday, has

its distribution to the shareholders. The contract will be

unanimously agreed to distribute on January 25, 2013, an

submitted for approval at the Extraordinary Shareholders’

interim dividend of Ch$1.21538 per share attributable to

Meeting which shall decide upon the capital increase of

the fiscal period of 2012, corresponding to 15% of liquid net

Enersis S.A., to be held on December 20 this year. The draft

income as of September 30, 2012, in accordance with the

of such contract, without its descriptive exhibits, will be

Company’s dividend policy.

available for shareholders consideration in the Investments

and Risks Department of Enersis S.A., located at Santa Rosa

On December 7, 2012 the Company informs that it has

76, floor 15, Santiago, and in the company’s website: www.

received a copy of the press release issued by Endesa, S.A.,

enersis.cl.

relating to the capital increase of Enersis S.A.

On December 13, 2012 the Company informs that the Board

the Citibank Depositary has notified that it will not grant the

of Directors of the Company has decided to propose to the

Chairman of the Board the discretionary vote of those ADR

Extraordinary Shareholders’ Meeting summoned to make

holders that have not expressed their intention to voted.

In addition, the Company informs as a significant event that

a decision on the ongoing capital increase of Enersis S.A, to

be held on December 20, of the present year, a range for the

On December 18, 2012, the Company informs that on

subscription price of new shares from Ch$ 160 to Ch$ 187 per

December 20, 2012 the Extraordinary Shareholders´ Meeting

share.

was held which decided upon the capital increase of Enersis

S.A. In such Meeting, a very large majority, almost 86%

In addition, the Board, by the unanimity of its members,

of all shareholders present with voting rights, equivalent

agreed to declare that the capital increase amount, the

to 81.94% of the total shares with voting rights of the

value of the assets and the maximum number of shares

Company, approved the capital increase with the following

to be issued contained in the press releases published

characteristics:

on December 7 by Endesa, S.A. and five Pension Fund

Administration companies: AFP Capital S.A., AFP Cuprum

1) Maximum amount of the capital increase: Ch$

S.A., AFP Habitat S.A., AFP Plan Vital S.A. and AFP Provida

2,844,397,889,381, divided into 16,441,606,297 ordinary

S.A., are within the parameters referred to in the reports

nominative payment shares of the same series, with no

issued by the independent evaluators and by the Company’s

preemptive rights and no par value.

Directors’ Committee. The Board of Directors considers that

the terms contained in the above mentioned press releases

2) Value of non-cash contributions to be capitalized: The

are consistent with the approaches made to date by the

total equity of Cono Sur, Company that will concentrate

Board and the Directors’ Committee.

the shares that are identified in the reports that have

178

SIGNIFICANT EVENTS OF THE ENTITY

2013 ANNUAL REPORT ENERSISbeen made available to the shareholders and that would

be contributed by Endesa to Enersis S.A., will amount to

Ch$ 1,724,400,000,034 corresponding to 9,967,630,058

shares of Enersis S.A. at a price of Ch$ 173 per share. This

represents a reference value of US$ 3,634,754,015.5 at an

observed exchange rate of Ch$ 474.42 per dollar of the

United States of America as of December 20, 2012.

3) Placement share price: A fixed price of Ch$173 for every

payment share to be issued as a result of the capital

increase.

Shareholders approved the terms of the capital increase

described above, as a related party transaction within

market conditions and in the best interest of the Company,

thus complying with the requirements of Article 147 of Law

18,046.

Additionally, the commitments of the controlling

shareholder, which had been previously reported through

significant event dated November 8, were voted, ratified and

approved.

179

Identification
of subsidiaries
and associate
companies

180

IDENTIFICATION OF SUBSIDIARIES AND ASSOCIATE COMPANIES

2013 ANNUAL REPORT ENERSISAGRÍCOLA DE CAMEROS

Name
Sociedad Agrícola de Cameros Limitada

Type of entity
Limited partnership

TAX ID
77,047,280-6

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

Phone number
(56 2) 2378 4700

Subscribed and paid capital (Th$)
5,738,046

Corporate purpose
The exploitation of agricultural land

Core business
Real estate and agriculture

Main executives
Hugo Ayala Espinoza
CEO

Enersis stake
(direct and indirect)
57.50% - No variation.

AGUAS SANTIAGO PONIENTE

Name
Aguas Santiago Poniente S.A.

Type of entity
Private company, subject to the regulations for
publicly-held companies

TAX ID
96,773,290-7

Address
Boulevard Aeropuerto Norte 9623, local 4, Parque
Industrial Enea, Pudahuel

Phone number
(56 2) 2601 0601

Subscribed and paid capital (Th$)
6,601,121

Corporate purpose
Exclusively to establish, construct and exploit
public utilities for water production and
distribution; sewage collection, treatment and
disposal, and other functions expressly authorized
by Law 382 of 1988 and its amendments.

Core business
Water and related services.

Board of Directors
Víctor M. Jarpa Riveros
Andrés Salas Estrades

Luis F. Edwards Mery
José M. Guzmán Nieto
Fernando Gardeweg Ried

Main executives
Roberto Alcalde Eyzaguirre
CEO

Enersis stake
(direct and indirect)
55.00% - No variation.

AMPLA ENERGÍA

Name
Ampla Energia e Serviços S.A.

Type of entity
Publicly held Limited Liability Company

Address
Praça Leoni Ramos, N° 01, São Domingos, Niteroi,
Río de Janeiro, Brasil

Phone number
(55 21) 2613 7000

Subscribed and paid capital (Th$)
288.837.437

Corporate purpose
Study, plan, project, build and explore electricity
production, transmission, transformation,
distribution and sale systems, and provide related
services that have been or may be conceded; carry
out research in the energy sector, participate in
regional , national or international organizations
dedicated to the planning, operation, technical
Exchange and business development related
to the electricity industry and participate as a
shareholder in other companies in the energy
sector, even within the framework of Brazil´s
privatization program.

Core business
Distribution of electricity.

Board of Directors
Mario Fernando de Melo Santos (Chairman)
Antonio Basilio Pires e Albuquerque
(ViceChairman)
Nelson Ribas Visconti
Luciano Galasso Samaria
Ramón Francisco Castañeda Ponce
José Távora Batista
José Alves de Mello Franco
Cristián Fierro Montes
Otacilo de Souza Junior

Main executives
Marcelo Llévenes Rebolledo
Director Presidente
José Alves de Mello Franco
Bruno Golebiovsky
Carlos Ewandro Naegele Moreira
Claudio Rivera Moya
Déborah Meirelles Rosa Brasil
Teobaldo Jose Cavalcante Leal
Janaina Savino Vilella Carr

Enersis stake
(direct and indirect)
91.63 %

Proportion of Enersis assets
de Enersis
1.92%

ARA – INGENDESA

Name
Consorcio Ara – Ingendesa Limitada

Type of entity
Limited partnership

Tax ID
77,625,850-4

Address
Santa Rosa 76, Santiago, Chile.

Phone number
(562) 2630 9000

Corporate purpose
Engineering services supply, including the
projection, planning and implementation of
engineering studies and projects, advice and
consultancy, assistance and technical supply
and management information, inspection and
development of projects and works. Also, for
itself or others, all types of projects, set up the
site, start up, all establishments, industrial or not,
commercializing for it or others, the goods and
services produced.

Core business
Engineering services.

Subscribed and paid capital
M$500

Attorneys-in-fact
Alejandro Santolaya de Pablo
Juan Benabarre Benaiges

Attorneys-in-fact Alternate
Daniel Barría
Cristián Araneda Valdivieso
Fernando Armijo Scotti
Nelson Hernández Pérez

Enersis stake
(direct and indirect)
29.99%- No variation.

ATACAMA FINANCE

Name
Atacama Finance Co.

Type of entity
Exempt company

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

181

Phone number
(562) 2630 9000

Subscribed and paid capital (Th$)
3,305,043

Corporate purpose
Money borrowing in the financial market through
loans or bonds or other instruments issuance, and
cash loans to other companies, particularly those
related to the Atacama project.

Core business
Investments.

Board of Directors
Horacio Reyser
Ingrid Morales Ávila (International Finance,
Enersis S.A.)
Gonzalo Alende Serra
Eduardo Escaffi Johnson (CFO Enersis S.A.)

Ramiro Alfonsín Balza
Carlos Martín Vergara
Claudio Iglesis Guillard
Juan Eduardo Vásquez

Alternate Directors
Sebastián Fernández Cox
Eduardo Lauer Rodríguez
Cristián Morales Jaureguiberry
Enrique Donoso Moscoso

Main executives
Jorge Andrés Taboada Rodriguez
CEO

Enersis stake
(direct and indirect)
30.59% - No variation.

AYSÉN ENERGÍA

Enersis stake
(direct and indirect)
30.75%

AYSÉN TRANSMISIÓN

Name
Aysén Transmisión S.A.

Type of entity
Private company recorded at the Securities
Registry of the SVS

TAX ID
76,041,891-9

Address
Miraflores 383, Of. 1302, Santiago, Chile

Phone number
(562) 2713 5000

Subscribed and paid capital (Th$)
22,368

Corporate purpose
Develop, and alternatively or additionally manage,
the electricity transmission systems required by the
hydroelectric generation project that Hidroaysén
is planning to build in the 11th Region of Aysén,
del general Carlos Ibáñez del Campo. In order to
do so, the following activities are Included in its
corporate purpose: a) the design, development,
construction, operation, ownership, maintenance
and exploitation of electricity transmission
systems, b) electricity transportation, and c)
procurement of services related to Its corporate
purpose

Core business
Electricity transmission

Board of Directors
Joaquín Galindo Vélez (Chairman)
Juan Benabarre Benaiges
Bernardo Larraín Matte
Luis Felipe Gazitúa Achondo

Name
Aysén Energía S.A.

Type of entity
Private company.

TAX ID
76,091,595-5

Address
Miraflores 383, Of. 1302, Santiago, Chile

Phone number
(562) 2713 5000

Subscribed and paid capital (Th$)
4,900

The purposes of this company are the following:
I.-Comply with obligations derived from the Free-
Market Competition Tribunal (TDLC in its Spanish
acronym). II.-Fulfill Centrales Hidroeléctricas de
Aysén S.A. commitments with the community
of the XI Region, Aysén, del General Carlos
Ibáñez del Campo, within the framework of the
development of the Aysen Hydroelectric Project,
to provide such region with a supply of electricity
at a cost below the current one, by developing,
financing, ownership and exploitation of electricity
generation and transmission projects in the region.
In order to do so, the company may develop,
among others, the following activities: a) the
generation of electricity by using any generation
means, its procurement and commercialization,
b) electricity transportation, and c) procurement
of services related to its corporate purpose, d)
request, obtain or acquire and use the concessions,
rights and permits that may be required.

Core business
Electricity generation (project)

Board of Directors
Joaquín Galindo Vélez (Chairman)
Juan Benabarre Benaiges
Ramiro Alfonsín Balza
Bernardo Larraín Matte
Luis Felipe Gazitúa Achondo
Juan Eduardo Vásquez

Alternate Directors
Carlos Martín Vergara
Sebastián Fernández Cox
Claudio Iglesis Guillard
Eduardo Lauer Rodríguez
Cristián Morales Jaureguiberry
Enrique Donoso Moscoso
Main executives
Daniel Fernández Koprich
CEO

Enersis stake
(direct and indirect)
30.59%

CELTA

Name
Compañía Eléctrica Tarapacá S.A.

Type of entity
Private company

TAX ID
96,770,940-9

Address
Santa Rosa 76, Santiago, Chile

Phone number
(562) 2630 9000

Subscribed and paid capital (Th$)
331,770,543

Corporate purpose
The company´s main purpose is 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.

Core business
Electricity Generation.

Board of Directors
Alejandro García Chacón (Chairman)
Alan Fischer Hill
Humberto Espejo Paluz

Main executives
Eduardo Soto Trincado
CEO

Enersis stake
(direct and indirect)
61.49%

Proportion of Enersis assets de Enersis
0.17%

182

IDENTIFICATION OF SUBSIDIARIES AND ASSOCIATE COMPANIES

2013 ANNUAL REPORT ENERSISCore business
Electricity generation (proyect).

Board of Directors
Joaquín Galindo Vélez
Juan Benabarre Benaiges
Ramiro Alfonsín Balza
Bernardo Larraín Matte
Luis Felipe Gazitúa Achondo
Juan Eduardo Vásquez

Alternate Directors
Carlos Martín Vergara
Sebastián Fernández Cox
Claudio Iglesis Guillard
Eduardo Lauer Rodríguez
Cristián Morales Jaureguiberry
Enrique Donoso Moscoso

Main executives
Daniel Fernández Koprich
Vicepresidente Ejecutivo

Enersis stake
(direct and indirect)
30.59% - No variation.

CHILECTRA

Name
Chilectra S.A.

Type of entity
Publicly held Limited Liability Company

CENTRAL DOCK SUD S.A.

Name
Central Dock Sud S.A.

Type of entity
Private company

maintenance of a thermal power plant named
Vuelta Obligado complying with “ Management
and Operation of Projects, Increase of Thermal
Generation Availability and Generation
Compensation Adaptation 2008-2011 Agreement”
agreed upon November 25, 2010 by the National
State and the signing Generation companies.

Address
Pasaje Engineer Butty 220 Piso 16 Ciudad
Autónoma de Buenos Aires

Core business
Construction of a thermoelectric power plant
named Vuelta Obligado.

Board of Directors
José Miguel Granged Bruñen
Fernando Claudio Antognazza
José María Vázquez
Eduardo Nitardi

Alternate Directors
Leonardo Marinaro
Juan Carlos Blanco
Roberto José Fagan
Adrian Salvatore

Main executives
Eduardo Nitardi
CEO

Enersis stake
(direct and indirect)
16.17%

CENTRALES

Phone number
4229-1000

Subscribed and paid capital (Th$)
M$ 12,272,405

Corporate purpose
Electricity Generation.

Core business
Electricity Generation

Board of Directors
Martin Mandarano
Alejandro Héctor Fernández
Rodolfo Berisso
José Miguel Granged Bruñen
Joaquín Galindo Vélez
José María Hidalgo Martín-Mateos
Paula María García Kedinger
María Inés Justo Borga
Pablo Vera Pinto

Alternate Directors
Juan Carlos Blanco
Julián Matías Ferreiro
Daniel Gustavo Ciaffone
Gerardo Zmijak
Sebastián Ortiz
Jorge Norberto Peña
Fernando Claudio Antognazza
Fernando Boggini
Rodrigo Quesada

Enersis stake
(direct and indirect)
39.99%

CENTRAL VUELTA OBLIGADO

Name
Central Vuelta Obligado S.A.

Type of entity
Private company

HIDROELÉCTRICAS DE AYSÉN

Name
Centrales Hidroeléctricas de Aysén S.A.

Type of entity
Private company incorporated in Santiago, Chile,
recorded in the Securities Registry of the SVS

TAX ID
96,800,570-7

Address
Santa Rosa 76, piso 8,
Santiago, Chile

Phone number
(56 2) 2675 2000

TAX ID
76,652,400-1

Address
In Santiago, Chile, calle Miraflores 383, oficina
1302.
In Coyhaique, Chile, calle Baquedano 260.
In Cochrane, Chile, calle Teniente Merino 324.

Phone number
(562) 2713 5000

Subscribed and paid capital (Th$)
168,945,662

Address
Av. Thomas Edison 2701, Ciudad Autónoma de
Buenos Aires, Argentina

Phone number
(5411) 4117 1077

Subscribed and paid capital (M$arg)
500

Corporate purpose
Generation of electricity and its commercialization
by blocks and particularly, equipment purchasing
management, construction, operation and

Corporate purpose
The development, financing, ownership and
exploitation of a hydroelectric project, the
“Aysén Project”, in the 11th Region of Aysén,
which contemplates an estimated capacity of
2,750 MW distributed between five hydroelectric
plants. In order to comply with its purpose, the
following activities form part of its purposes: 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 works, electrical systems and
hydroelectric generating plants.

Subscribed and paid capital (Th$)
367,928,682

Corporate purpose
Exploit in Chile or abroad the distribution and sale
of hydraulic, thermal, heat or any kind of electricity,
as well as the distribution, transport and sale of
fuels of any kind, supplying this energy or fuel
directly or through other companies to as many
customers possible.

Core business
Distribution of electricity.

Board of Directors
Juan María Moreno Mellado
Marcelo Llévenes Rebolledo
Livio Gallo
Hernán Felipe Errázuriz Correa
José Luis Marín López-Otero
Elena Salgado Méndez

Main executives
Cristián Fierro Montes
CEO
Gianluca Caccialupi
Deputy CEO
Gonzalo Vial Vial
Andreas Gebhardt Strobel
Daniel Gómez Sagner

183

Enrique Fernández Pérez
Ramón Castañeda Ponce
Jaime Muñoz Vargas
Gloria Salgado Rubilar
Héctor Villouta Sanhueza
Luciano Galasso Samaria
Jean Paul Zalaquett Falaha

Enersis stake
(direct and indirect)
99.09% - No variation.

CHINANGO

Name
Chinango S.A.C.

Type of entity
Private company

Address
Avda. Víctor Andrés Belaúnde 147, Edificio Real 4,
piso 7, San Isidro, Lima, Perú

Proportion of Enersis assets de Enersis
6.75%

Subscribed and paid capital (Th$)
50,042,423

CHILECTRA INVERSUD

Name
Chilectra Inversud S.A.

TAX ID
99,573,910-0

Type of entity
Private company

Address
Santa Rosa 76, piso 8, Santiago, Chile

Phone number
(56 2) 2675 2000

Corporate purpose
The main purpose of the company is electricity
generation, trading and transmission, being able
to perform all acts and hold all contracts that the
Peruvian law allows for such purposes.

Core business
Electricity Generation.

CEO
Edegel S.A.A. represented by Julián
Cabello Yong

Enersis stake
(direct and indirect)
29.97% (No variation)

Roberto José Fagan
Fernando Carlos Boggini
Orlando Adalberto Díaz
Alejandro Nagel

Main executives
Fernando Claudio Antognazza
CEO
Fernando Carlos Luis Boggini
CFO
Néstor Srebernic
Gerente de Producción
Cristian Vargas
Gerente Comercial
Rodolfo Silvio Bettinsoli
Gerente de Recursos Humanos

Enersis stake
(direct and indirect)
39.21% - No variation.

CODENSA

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

Type of entity
Private company

Address
Carrera 13 A #93-66, Bogotá, Colombia

Subscribed and paid capital (Th$)
265,306,226

CHOCÓN

Phone number
(57 1) 601 6060

Corporate purpose
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 kind
of investments in all kind of financial instruments,
such as; bonds, debentures, debt titles, credits,
negotiable securities or other financial or commercial
documents, all with to the objective of obtaining
their natural and civil returns. In order to do so, it may
constitute, amend, dissolve and liquidate companies
in foreign countries and develop all other activities
that are complementary and/or related to the above
mentioned businesses.

Core business
Investments.

Board of Directors
Ramón Castañeda Ponce
Francisco Miqueles Ruz
Gonzalo Vial Vial

Main executives
Francisco Miqueles Ruz
CEO

Enersis stake
(direct and indirect)
99.09% - No variation.

Name
Hidroeléctrica El Chocón S.A.

Type of entity
Corporation

Address
Avda. España 3301,
Buenos Aires, Argentina

Subscribed and paid capital (Th$)
24,073,993

Corporate purpose
Electricity Generation and its block
comercialization .

Core business
Electricity Generation.

Board of Directors
Joaquín Galindo Vélez
José Miguel Granged Bruñen
José María Hidalgo Martín Mateos
Eduardo Escaffi Johnson (CFOEnersis S.A.)
Vacant
Alex Daniel Horacio Valdez
Juan Carlos Nayar
Sergio Maschio

Alternate Directors
Jorge Raúl Burlando Bonino
Francisco Domingo Monteleone
Juan Carlos Blanco

Subscribed and paid capital (Th$)
3,593,166

Corporate purpose
The company´s main purpose is the distribution
and sale of electricity and all related activities,
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. The company shall be also entitled
to execute other activities related to providing
public utility services, in general, manage and
operate other public utility companies, sign and
execute special management contracts with other
public utility companies and sell or lend assets or
services to other economic agents in and out of
the country in relation to public utility services. The
Company shall be also entitled to become a partner
or shareholder of another public utility company,
directly or in partnership with other persons, or
setting up a consortium with them. While pursuing
the above-indicated main business purpose, the
Company shall be entitled to promote and establish
entities or agencies in Colombia or abroad; acquire
under any concept whatsoever any kind of personal
or real estate properties, lease them, sell them,
encumber and pledge them as guarantee; assume
any form of associative or collaborative enterprise
with natural or juridical third parties to advance
activities related, connected and complementary
to its main business purpose; develop brand names,
commercial names, patents, inventions or any other

184

IDENTIFICATION OF SUBSIDIARIES AND ASSOCIATE COMPANIES

2013 ANNUAL REPORT ENERSISintangible good, provided that they are consistent
with its main business purpose; draw, accept,
endorse, collect and pay all kind of value certificates,
negotiable instruments, shares, executive titles and
others; participate in public and private bidding
contests; give to, or receive money on loan from its
shareholders, parent/matrix companies, subsidiaries,
and third parties; execute insurance policy contracts,
transportation, participation accounts, and contracts
with banks and/or financial institutions.

Core business
Distribution of electricity.

Board of Directors
Cristian Fierro Montes
José Antonio Vargas Lleras
Lucio Rubio Díaz
Sandra Stella Fonseca Arenas
Ricardo Roa Barragán
Ricardo Bonilla González
Orlando José Cabrales Martínez

Alternate Directors
Gustavo Gómez Cerón
Leonardo López Vergara
David Felipe Acosta Correa
Ernesto Moreno Restrepo
Álvaro Torres Macías
José Alejandro Herrera Lozano
Antonio Sedán Murra

Main executives
David Felipe Acosta Correa
CEO
Andrés Caldas Rico
Jaime A. Vargas Barrera
Juan Manuel Pardo Gómez
María Celina Restrepo
Leonardo López Vergara
Rafael Carbonell Blanco
Omar Serrano Rueda
Mauricio Carvajal
Raúl Puentes Barrera

Enersis stake
(direct and indirect)
48.39%

Proportion of Enersis assets de Enersis
11.02%

COELCE

Name
Companhia Energética do Ceará

Type of entity
Publicly held Limited Liability Company

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

Phone number
(55 85) 3453-4082

Subscribed and paid capital (Th$)
98,549,260

Corporate purpose
a) Generation, transmission, distribution and
commercialization of electricity, and related
services; b) Performing studies, planning, projects,
construction and operating production systems,
transformation, transportation and storage,
distribution and sale of any type of energy, as a
concession, authorization or permit that may be
granted in the State of Ceará, and other areas
defined by the granting authority. c) The study,
project and implementation of plans and programs
of research and development of new sources of
energy, particularly renewable ones, developed
directly or in cooperation with other institutions;
d) The study, preparation and implementation,
in the energy sector, of economic and social
development plans and programs in regions of
interest to the community, and the company,
either directly or collaborating with state or private
bodies, being able to also supply information
and technical assistance to public or private
initiatives that intend to implement economic
and social activities necessary for development;
e) Perform other activities that could become
necessary from a corporate purpose perspective,
such as participating In the ownership of other
companies in Brazil or in other countries, whose
purpose is the development of public electricity
services, including generation, transmission and
distribution.

Core Business
Electricity distribution

Board of Directors
Mario Fernando de Melo Santos (Chairman)
Marcelo Llévenes Rebolledo (ViceChairman)
Gonzalo Vial Vial
José Alves de Mello Franco
Jorge Parente Frota Júnior
Cristián Eduardo Fierro Montes
Francisco Honório Pinheiro Alves
Renato Soares Sacramento
Nelson Ribas Visconti
Joao Francisco Landim Tavares
Claudio Manuel Rivera Moya

Alternate Directors
Antonio Basilio Pires de Carvalho e Albuquerque
Luciano Alberto Galasso Samaria
Teobaldo José Cavalcante Leal
José Caminha Alencar Aripe Júnior
José Távora Batista
Carlos Ewandro Naegele MoreiraVládia Viana Regis
José Nunes de Almeida Neto
Bruno Golebiovsky
Robson Figueiredo de Oliveira

Main executives
Abel Alves Rochinha
Chairman

David Augusto de Abreu
Teobaldo José Cavalcante Leal
José Nunes de Almeida Neto
Carlos Ewandro Naegele Moreira
José Távora Batista
Olga Jovanna Carranza Salazar
José Alves de Mello Franco
Cristine de Magalhães Marcondes
Nelson Ribas Visconti

Enersis stake
(direct and indirect)
49.18%

CONSTRUCCIONES Y

PROYECTOS LOS MAITENES

Name
Construcciones y Proyectos Los Maitenes S.A.

Type of entity
Private company

TAX ID
96,764,840-K

Address
Américo Vespucio 100, Pudahuel, Santiago, Chile

Phone number
(56 2) 2601 0601

Subscribed and paid capital (Th$)
41,742,265

Corporate purpose
a) The construction for its own or for third parties’,
on its own land or other land, urbanized or not,
of all kind of civil works, facilities, 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, and others. In order to do so, it
may act for its own or third parties, either directly
or forming part of associations, communities,
companies and legal entities of any kind, in which
it may also assume the management.

Core business
Real Estate.

Board of Directors
Fernando Gardeweg Ried
Andrés Salas Estrades
Luis Felipe Edwards Mery
José Manuel Guzmán Nieto
Victor Jarpa Riveros

Main executives
Roberto Alcalde Eyzaguirre
CEO
Rodrigo Sánchez Cubric
Fernando Krebs Labarca

Enersis stake
(direct and indirect)
55.00% - No variation.

CTM

Name
Compañía de Transmisión del Mercosur S.A.

Type of entity
Corporation

Address
Bartolomé Mitre 797, piso 11, Ciudad Autónoma de
Buenos Aires, Argentina

Subscribed and paid capital (Th$)
1,142,971

185

Corporate purpose
Provide high-voltage electricity 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 an electric-utility concession holder in
local or international high voltage transmission
systems and carry out all activities necessary to
meet its purposes, included but not limited to, be
a part in construction contracts, operating and
maintenance, both when beginning or expanding
electricity transmission lines, participating in
financing projects directly or indirectly related to
such initiatives as a creditor and /or borrower and/
or guarantee, allowing to offer guarantees third
parties. All activities expressly identified as being
rules by the Financial Institutions Law are excluded
and any other that requires applying government
financing.

Core business
International electricity transmission

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

Alternate Directors
José Venegas Maluenda
Juan Carlos Blanco
Roberto José Fagan

Main executives
Arturo Miguel Pappalardo
CEO

Enersis stake
(direct and indirect)
83.54%

DISTRIBUIDORA ELÉCTRICA

DE CUNDINAMARCA

Name
Distribuidora Eléctrica de Cundinamarca S.A. E.S.P.

Type of entity
Private company

Tax ID
900,265,917-0

Address
Carrera 9 N° 73-44 Piso 5

Subscribed and paid capital (Th$)
57,871,689

Corporate purpose
The company’s main purpose is the distribution
and commercialization of electricity, and the
execution of all associates, complementary
and related activities to distribution and
commercialization of electricity, public works,
designs and electrical engineering consulting, and
the commercialization of products for the benefit
of its customers.

Core business
Distribution and commercialization of electricity

Board of Directors
Catalina Velasco Campusano
David Felipe Acosta
María Cristina Toro Restrepo

Alternate Directors
Iván Pinzón Amaya
Leonardo López Vergara
Fabiola Leal Castro

Main executives
Álvaro Torres Macías
CEO

Enersis stake
(direct and indirect)
23.71%

Héctor Sergio Falzone
José María Saldungaray
Osvaldo Alejandro Pollice
Leonardo Marinaro
Justo Pedro Saenz

Main executives
Antonio Jerez
CEO

Enersis stake
(direct and indirect)
50.93% - No variation.

Proportion of Enersis assets de Enersis
0.01%

EDEGEL

Name
Edegel S.A.A.

DISTRILEC INVERSORA

Name
Distrilec Inversora S.A.

Type of entity
Private company

Type of entity
Publicly held Limited Liability Company

Address
Avda. Víctor Andrés Belaúnde 147, Edificio Real 4,
piso 7, San Isidro, Lima, Perú

Address
San José 140, Buenos Aires, Argentina

Subscribed and paid capital (Th$)
423,750,467

Phone number
(54 11) 4370 3700

Subscribed and paid capital (Th$)
40,756,974

Corporate purpose
Mainly, and in general, electricity generation
activities, also the civil, industrial, commercial and
any other act or operation relating or leading to
the principal purposes.

Corporate purpose
Exclusively to invest in companies constituted
or to be constituted whose main activity is the
distribution of electricity or that directly or
indirectly participate in companies with that
principal business through all kind 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.

Core business
Electricity Generation.

Board of Directors
Ignacio Blanco Fernández (Chairman)
Alberto Briand Rebaza Torres (ViceChairman)
Joaquín Galindo Vélez
Rafael Fauquié Bernal
Reynaldo Llosa Barber
Claudio Herzka Buchdahl
Gerardo Rafael Sepúlveda Quezada

Core business
Investments.

Board of Directors
José María Hidalgo Martín Mateos (Chairman)
Cristián Fierro Montes
María Inés Justo
Juan Carlos Blanco
Rafael Fauquié Bernal
Gonzalo Alejandro Pérez Moore
Juan Carlos Bledel
José María Vásquez
Fernando Bonnet
Edgardo Licen

Alternate Directors
Fernando Antognazza
Rodrigo Quesada
Roberto Fagan
Mariana Marine
Gonzalo Vial Vial

Alternate Directors
Julián Cabello Yong
Raffaele Enrico Grandi
Arrate Gorostidi Aguirresarobe
Mariano Paz Soldán Franco
Alberto Triulzi Mora
Sebastián Fernández Cox
Eric Andrés Añorga Müller

Main executives
Francisco Pérez Thoden Van Velzen (CEO)
Julián Cabello Yong (Gerente de Explotación)
Carlos Rosas Cedillo (Gerente de Gestión de
Energía y Comercialización)
Eric Añorga Müller (CFO)
Daniel Abramovich Ackerman (Gerente de Asesoría
Legal)

Enersis stake
(direct and indirect)
37.46% (No variation)

186

IDENTIFICATION OF SUBSIDIARIES AND ASSOCIATE COMPANIES

2013 ANNUAL REPORT ENERSISEDELNOR

Phone number
(54 11) 4370 3700

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

Subscribed and paid capital (Th$)
69,224,794

and, especially, in the related to the generation,
production, and marketing of electric power;
as well as activities of generation, transmission,
Distribution and commercialization of electricity in
a direct way.

Type of entity
Publicly held Limited Liability Company

Corporate purpose
Distribution and commercialization of electricity
and related activities

Core business
Investments.

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

Core business
Distribution of electricity.

Phone number
(51 1) 561 2001

Subscribed and paid capital (Th$)
99,904,810

Corporate purpose
Engage in the activities of distribution,
transmission and generation of electricity
in accordance with the provisions of current
legislation. Additionally, the company may
engage in the sale of goods in any form, as well as
providing consulting and financial services, among
others, except those services which require specific
authorization in accordance with current law.

Core business
Distribution of electricity

Board of Directors
Reynaldo Llosa Barber (Chairman)
Ignacio Blanco Fernández
Paolo Giovanni Pescarmona
María Cecilia Blume Cilloniz
Cristian Eduardo Fierro Montes
Fernando Fort Marie
Claudio Eduardo Helfmann Soto
José María Hidalgo Martín Mateos

Main executives
Ignacio Blanco Fernández
CEO
Carlos Solís Pino
Walter Sciutto Brattoli
Rocío Pachas Soto
Raffaele Enrico Grandi
Luis Salem Hone
Pamela Gutiérrez Damiani
Alfonso Valle Cisneros

Enersis stake
(direct and indirect)
75.54%

Proportion of Enersis assets
1.52%

EDESUR

Name
Empresa Distribuidora Sur S.A.

Type of entity
Corporation

Board of Directors
José María Hidalgo Martin Mateos (Chairman)
Juan Carlos Blanco
Cristian Fierro Montes
Marcelo Silva Iribarne
Gonzalo Vial Vial
Marco Fadda (Gerente Regional Planificación y
Control Enersis S.A.)
Ernesto Pablo Badaraco
José María Vásquez

Alternate Directors
Roberto Fagan
José Miguel Granged
Fernando Antognazza
María Inés Justo
Rodrigo Quesada
Mariana Marine
Fernando Bonnet
José María Saldungaray

Main executives
Antonio Jerez Agudo
CEO
Silvia Migone Díaz
Legal Affairs Director

Enersis stake
(direct and indirect)
71.61%

Proportion of Enersis assets de Enersis
0.05%

ELÉCTRICA CABO

BLANCO S.A.C.

Name
Cabo Blanco S.A.C.

Type of entity
Private company

Address
Calle César López Rojas N° 201, Urbanización
Maranga, Distrito de San Miguel, Provincia y
Departamento de Lima

Phone number
(051) 517-2993

Subscribed and paid capital (Th$)
8,723,363

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

Corporate purpose
Investments in other companies, mainly those
engaged in the exploitation of natural resources

Main Executives
Manuel Cieza Paredes (CEO)

Enersis stake
(direct and indirect)
100%

Proportion of Enersis assets de Enersis
0.40%

ELECTROGAS

Name
Electrogas S.A.

Type of entity
Private company

TAX ID
96,806,130-5

Address
Alonso de Córdova 5900, Oficina 401, Comuna de
Las Condes
Santiago, Chile

Phone number
(562) 2299 3400

Corporate purpose
The purpose of the company is the transportation
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 facilities.

Core business
Gas transportation.

Subscribed and paid capital (Th$)
11,176,162

Board of Directors
Juan Eduardo Vásquez Moya (Chairman)
Alan Fischer Hill (ViceChairman)
Pedro Gatica Kerr
Eduardo Lauer Rodríguez
Fernando Promis Baeza

Alternate Directors
Andrés Opazo Irarrázaval
Gastón Schofield Lara
Cristian Morales Jaureguiberry
Juan Oliva Vásquez
Ricardo Santibáñez Zamorano

Main executives
Carlos Andreani Luco
CEO

Enersis stake
(direct and indirect)
25.49% - No variation.

187

EMGESA

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

Type of entity
Public utility Corporation

EMGESA PANAMÁ, S.A.

Name
Emgesa Panamá, S.A.

Type of entity
Private company.

Board of Directors
Manuel Guillermo Camargo
David Alfredo Riaño
María Cristina Toro
Alvaro Cruz Vargas
Paulo Jairo Orozco Díaz
Omar Serrano Rueda
Martha Catalina Velasco Campuzano

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

Address
Ciudad de Panamá, Panamá

Subscribed and paid capital (Th$)
165,215,801

Corporate purpose
The main purpose of the company is generation
and commercialization of electricity and
associated, connected, complementary and
related activities.

Core business
Electricity generation and commercialization.

Board of Directors
Joaquín Galindo Vélez
Lucio Rubio Díaz
José A. Vargas Lleras
Sandra Stella Fonseca Arenas
Ricardo Roa Barragán
Ricardo Bonilla González
Luisa Fernanda Lafaurie Rivera

Alternate Directors
Omar Serrano Rueda
Carlos Luna Cabrera
Juan Manuel Pardo
Ernesto Moreno Sánchez
Álvaro Torres Macías
Jose Alejandro Herrera Lozano
Andrés López Valderrama

Main executives
Lucio Rubio Díaz
CEO
Carlos Luna Cabrera
Andrés Caldas Rico
Juan Manuel Pardo Gómez
Fernando Gutiérrez Medina
Gustavo Gómez Cerón
María Celina Restrepo
Leonardo López Vergara
Rafael Carbonell Blanco
Omar Serrano Rueda
Mauricio Carvajal García
Raúl Puentes Barrera
Ana Patricia Delgado Meza
Javier Blanco Fernández

Enersis stake
(direct and indirect)
37.72%

Proportion of Enersis assets de Enersis
2.90%

Corporate purpose
Purchase, sale, import, export of electricity. Also,
the company may perform other industrial and
commercial activities in general, it is able to
celebrate all transactions, operations, business,
events and activities that are permitted by the
Panamanian law to corporations even if they are
not expressly mentioned in this corporate purpose.

Core business
Purchase, sale, import, export of electricity.

Subscribed and paid capital (Th$)
5,255

Directors
Lucio Rubio Díaz
Andrés Caldas Rico
Omar Serrano Rueda

Main executives
Fernando Gutiérrez Medina
Andrés Caldas Rico
Elizabeth Laverde Enciso

Enersis stake
(direct and indirect)
37.72%

Alternate Directors
Javier Botero Álvarez
Claudia Niño Cubides
Fabiola Leal Castro
Luis Fernando Ayala
David Feferbaum Gutfraind
Aurelio Bustilho de Oliveira
Javier Ortíz Muñoz

Main executives
Carlos Mario Restrepo Molina
Alberto Duque Ramírez
Olga Pérez R.
Alba Marina Urrea Gómez
Diego Mauricio Muñoz Hoyos
Nidia Ximena León Corredor

Enersis stake
(direct and indirect)
19.52%

EMPRESA ELÉCTRICA DE

COLINA

Name
Empresa Eléctrica de Colina Ltda.

Type of entity
Sociedad de Responsabilidad Limitada

EMPRESA DE ENERGÍA DE

CUNDINAMARCA

TAX ID
96,783,910-8

Name
Empresa de Energía de Cundinamarca S.A.

Address
Chacabuco 31, Colina, Santiago, Chile

Type of entity
Private company

Tax ID
860,007,638-0

Address
Carrera 11 N° 93-52 Bogotá D.C.

Phone number
(571) 7051800

Subscribed and paid capital (Th$)
10,798,989

Corporate purpose
Electricity generation, commercialization and
distribution utility in the Cundinamarca district and
its surroundings. It owns an electricity generation
power plant in Río Negro.

Core business
Electricity generation, commercialization and
distribution.

Phone number
(56 2) 2844 4280

Subscribed and paid capital (Th$)
82,222

Corporate purpose
Distribution and sale of electricity and home,
sports, entertainment and computer electrical
appliances.

Core business
Distribution of electricity.

Main executives
Leonel Martínez Garrido
CEO

Enersis stake
(direct and indirect)
99.09% - No variation.

188

IDENTIFICATION OF SUBSIDIARIES AND ASSOCIATE COMPANIES

2013 ANNUAL REPORT ENERSISEMPRESA ELECTRICA DE

PIURA S.A.

Name
Empresa Eléctrica de Piura S.A

Type of entity
Corporation

Address
Calle César López Rojas N° 201, Urbanización
Maranga, Distrito de San Miguel, Provincia y
Departamento de Lima

Phone number
(051) 517-2993

Subscribed and paid capital (Th$)
M$ 15,318,148

Corporate purpose
Electricity generation and commercialization.

Core business
Electricity generation and commercialization

Directors
Manuel Muñoz Laguna
Fernando Prieto Plaza (Chairman)
Claudio Helfmann Soto (ViceChairman)

Main Executives
CEO: Manuel Vicente Cieza Paredes
Gerente de Planificación y Control: Juan Martín
Sabogal Carrillo

Enersis stake
(direct and indirect)
96.50%

ENDESA ARGENTINA

Name
Endesa Argentina S.A.

Type of entity
Sociedad Anónima

Address
Suipacha 268, piso 12, Buenos Aires, Argentina

Phone number
(5411) 4307 3040

Corporate purpose
Invest in companies dedicated to the production,
transmission and distribution of electricity and its
commercialization, as well as financial activities
except those limited by the law to banks.

Core business
Investments.

Subscribed and paid capital (Th$)
56,314,705

Board of Directors
José María Hidalgo Martín Mateos
José Miguel Granged Bruñen
Maria Inés Justo

Phone number
(5521) 3607 9500

Subscribed and paid capital (Th$)
210,254,158

Alternate Directors
Rodrigo Quesada
Mariana Cecilia Mariné
María Julia Nosetti

Enersis stake
(direct and indirect)
59.98% - No variation.

EN - BRASIL COMÉRCIO E

SERVIÇOS S.A.

Name
En- Brasil Comércio e Serviços S.A.

Type of entity
Private company incorporated according to
Brazilian Federal Law.

Address
Praça Leoni Ramos nº 01 – parte, São Domingos,
Niterói, Rio de Janeiro, Brasil.

Phone number
(55 21) 2613 7000

Subscribed and paid capital (Th$)
222,486

Corporate purpose
The company aims to participate in the capital
of other companies in Brazil or abroad, trade in
general, even imports and exports, through retail
or wholesale transactions of various products, and
to provide general services for the electric sector
and others.

Core business
Services in general to the electricity industry and
others

Main executives
Albino Motta da Cruz
CEO
Rafael de Bessa Sales

Enersis stake
(direct and indirect)
83.54%

ENDESA BRASIL

Name
Endesa Brasil S.A.

Type of entity
Private Company

Address
Praça Leoni Ramos, N°1, 7° andar, bloco 2 - Parte,
Niterói, Río de Janeiro, Brasil

Corporate purpose
Participate in the capital of other companies in
any segment of the electricity sector, including
companies that provide services to companies
in that sector, in Brazil or abroad;; transmission,
distribution, generation or commercialization of
electricity and related activities and participation,
individually or through joint ventures, consortia
or other similar forms of association, in tenders,
projects and enterprises for the supply of services
and activities previously mentioned.

Core business
Investments.

Board of Directors
Mario Fernando de Melo Santos (Chairman)
Ignacio Antoñanzas Alvear (ViceChairman) (CEO de
Enersis S.A.)
Massimo Tambosco (SubCEO de Enersis S.A.)
Antonio Basilio Pires de Carvalho e Albuquerque
Ramiro Diego Alfonsín Balza
Cristián Eduardo Fierro Montes
Joaquín Galindo Velez

Main executives
Marcelo Llévenes Rebolledo
CEO
Nelson Ribas Visconti (Vice CEO)
Luis Larumbe Aragón
Antonio Basilio Pires de Carvalho e Albuquerque
José Alves de Mello Franco
Carlos Ewandro Naegele Moreira
Teobaldo José Cavalcante Leal
Janaina Savino Vilella Carro

Enersis stake
(direct and indirect)
83.54%

Proportion of Enersis’ assets
8.15%

ENDESA CACHOEIRA

Name
Centrais Elétricas Cachoeira Dourada S.A.

Type of entity
Private Company

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

Phone number
(55 62) 3434 9000

Subscribed and paid capital (Th$)
14,314,684

189

sell crude petroleum, and/or lubricants and/or to
transport such elements, including the importation
and/or exportation of liquid fuels and the marketing
of regalia/privileges, as well as to provide and/or
execute services related to the abovementioned
activity.

Core business
Trading of electricity and gas

Board of Directors
José María Hidalgo Martín-Mateos
José Venegas Maluenda
Fernando Claudio Antognazza

Main executives
Joaquín Galindo Vélez
CEO
Ramiro Alfonsín Balza
Deputy CEO
Carlos Fernando Gardeweg Ried
Federico Poleman
Francisca Moya Moreno
Fernando Prieto Plaza
Paulo Domingues
Fernando Lafuente
Sebastian Fernandez Cox
José Venegas Maluenda
Ignacio Quiñones Sotomayor

Corporate purpose
The company´s corporate purpose is to perform
the studies, planning, construction, installation,
operation and exploitation of electricity
generation power plants and the businesses
related to these activities. Also, the company
may promote and participate in other companies
created to generate electricity within or outside
the State of Goiás.

Core business
Electricity Generation.

Board of Directors
Marcelo Llévenes Rebolledo
Ana Cláudia Goncalves Rebello
Luis Larumbe Aragón

Main executives
Guilherme Gomes Lencastre
CEO
Manuel Herrera Vargas
José Ignácio Pires Medeiros
Carlos Ewandro Naegele Moreira
José Alves de Mello Franco
Ana Cláudia Goncalves Rebello
Teobaldo José Cavalcante Leal
Janaina Savino Vilella Carro

Enersis stake
(direct and indirect)
83.33%

ENDESA CEMSA

Name
Endesa Cemsa S.A.

Type of entity
Corporation

Address
Pasaje Ing. E. Butty 220, piso 16,
Buenos Aires, Argentina

Alternate Directors
Arturo Pappalardo
Roberto José Fagan
Pedro Cruz Viné

Main executives
Juan Carlos Blanco
CEO

Enersis stake
(direct and indirect)
81.99%

Proportion of Enersis assets
0.05%

ENDESA CHILE

Name
Empresa Nacional de Electricidad S.A.

Type of entity
Publicly held Limited Liability Company

TAX ID
91,081,000-6

Address
Santa Rosa 76, Santiago, Chile

Phone number
(5411) 4875 0600

Phone number
(56 2) 2630 9000

Subscribed and paid capital (Th$)
1,129,748

Subscribed and paid capital (Th$)
1,331,714.085

Corporate purpose
The purpose of the company is the wholesale
purchase and sale of electricity capacity and energy
produced and/or consumed by third parties,
including the import and export of electricity
power and energy and the marketing of royalties,
and the supply and/or performing of services
related to the above activity, both in the country
as well as abroad of information technology
services and/or of control of the operation and/
or of telecommunications. Likewise, the Company
shall be entitled to execute buy/sell operations
or to purchase and sell natural gas, and/or its
transportation, including the importation and/or
exportation of natural gas and/or the marketing
of regalia/privileges, as well as to provide and/or
execute services related to the abovementioned
activity. Also, the Company shall be entitled to
execute buy/sell operations or to purchase and

Corporate purpose
Generation and supply of electricity, engineering
and consulting services in Chile and abroad and
the construction and exploitation of infrastructure
works.

Core business
Electricity Generation

Board of Directors
Jorge Rosenblut (Chairman)
Paolo Bondi (ViceChairman)
Francesco Buresti
Vittorio Corbo Loi
Felipe Lamarca Claro
Jaime Bauzá Bauzá
Enrique Andrés Cibié Bluth
Manuel Moran Casero
Alfredo Arahuetes García

Commercial relations
Trading current accounts, accounting, trading desk
and treasury services.

Enersis stake
(direct and indirect)
59.98% - No variation.

Proportion of Enersis assets
30.43%

ENDESA CIEN

Name
CIEN - Compañía de Interconexión Energética S.A.

Type of entity
Private Company

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

Phone number
(55 21) 3607 9500

Subscribed and paid capital (Th$)
63,418,309

Corporate purpose
The purpose of the company is the
production, industrialization, distribution and
commercialization of electricity, including the
import and export activities. In view of achieving
the purposes mentioned above, the company will
promote the study, planning and construction
of facilities for production systems, transmission,
conversion and distribution of electricity by
capturing the necessary investment to develop the
activities and by providing services. Beyond the
purposes referred to, the company may promote
the implementation of associated products, as well
as inherent, ancillary or complementary activities
to services and jobs that cometh to provide. To
carry out the activities necessary to achieve its
goals, the company may participate in other
societies.

Core business
Electricity transmission.

Board of Directors
Marcelo Andrés Llévenes Rebolledo
Ana Claudia Gonçalves Rebello
José Augustín Venegas Maluenda

190

IDENTIFICATION OF SUBSIDIARIES AND ASSOCIATE COMPANIES

2013 ANNUAL REPORT ENERSISMain executives
Guilherme Gomes Lencastre
CEO
Manuel Herrera Vargas
José Ignácio Pires Medeiros
Carlos Ewandro Naegele Moreira
Teobaldo José Cavalcante Leal
José Alves de Mello Franco
Ana Cláudia Goncalves Rebello
Janaina Sabino Vilella Carro

Enersis stake
(direct and indirect)
83.54%

ENDESA COSTANERA

Name
Endesa Costanera S.A.

Type of entity
Corporation

Address
Avda. España 3301, Buenos Aires, Argentina

Phone number
(5411) 4307 3040

Subscribed and paid capital (Th$)
58,560,092

Corporate purpose
The production of electricity and its block
commercialization.

Enersis stake
(direct and indirect)
45.40%

ENDESA FORTALEZA

Name
Central Geradora Termeléctrica Fortaleza S.A.

Type of entity
Private Company

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

Phone number
(55 85) 3464-4100

Subscribed and paid capital (Th$)
33,803,508

Corporate purpose
Study, project, build and explore production,
transmission, distribution and commercialization
systems of electricity under concessions, permits or
authorizations under any title, and other activities
related to services supply of any kind related to
the above activities; 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 necessary
for achieving its purposes; and participation in
the capital of other companies as shareholder or
partner, whatever their purposes.

Core business
Electricity Generation.

Board of Directors
Joaquín Galindo Vélez (Chairman)
Máximo Luis Bomchil
José María Hidalgo Martín Mateos
Eduardo Escaffi Johnson (CFO of Enersis)
María Inés Justo
César Fernando Amuchástegui
Matías Maria Brea
Damián Camacho

Alternate Directors
Roberto José Fagan
Francisco Domingo Monteleone
Fernando Carlos Boggini
Claudio Iglesis Guillard
Jorge Raúl Burlando Bonino
Rodrigo Quesada
Fernando Claudio Antognazza

Main executives
Jose Miguel Granged Bruñen
CEO
Roberto José Fagan
Director de Explotación
Fernando Carlos Luis Boggini
Gerente Financiero
Rodolfo Silvio Bettinsoli
Gerente de Recursos Humanos
Francisco Domingo Monteleone
Gerente de Producción
Rodrigo Quesada
Legal Affairs Director

Board of Directors
Marcelo Andrés Llévenes Rebolledo
Ana Claudia Gonçalves Rebello
Luis Larumbe Aragón

Main executives
Manuel Herrera Vargas
CEO

Raimundo Câmara Filho
Teobaldo José Cavalcante Leal
José Ignácio Pires Medeiros
José Alves de Mello Franco
Ana Cláudia Goncalves Rebello
Janaina Savino Vilella Carro

Enersis stake
(Direct and indirect)
83.54%

ENERGEX

Name
Energex Co.

Type of entity
Exempt company, incorporated in Cayman Islands,
BWI

Address
Walker House, 87 Mary Street, George Town,
Grand Cayman, Cayman Islands

Subscribed and paid capital (Th$)
5,246

Corporate purpose
The purpose of the Company is to participate in
any business or activity according to the laws of the
Cayman Islands. In terms of businesses or activities
in the financial area, those reserved for banks are
not permitted. It is also forbidden to do business
with firms or persons that are Cayman Islands
residents.

Core business
Investments.

Board of Directors
Horacio Reyser
Gonzalo Alende Serra
Ingrid Morales Ávila (International Finance, Enersis
S.A.)
Eduardo Escaffi Johnson (CFO Enersis S.A.)

Enersis stake
(direct and indirect)
30.75%

ENEL GREEN POWER MODELO

I EÓLICA S.A.

Name
Enel Green Power Modelo I Eólica S.A.

Type of entity
Private company.

Address
Praça Leoni Ramos, Nº 1, 5º andar, bloco 2, Niterói,
RJ, Brasil.

Subscribed and paid capital
R$ 66,125,000

Corporate purpose
Wind Electricity generation

Core business
Electricity Generation.

Main Executives
Newton Souza de Moraes
Enrique de las Morenas Moneo
CEO

Enersis stake
(direct and indirect)
0.81%

191

ENEL GREEN POWER

MODELO II EÓLICA S.A.

Name
Enel Green Power Modelo II Eólica S.A.

Type of entity
Private company.

Alternate Directors
Claudio Betti Pruzzo
Juan Cristóbal Pavéz Recart
Marcelo Álvarez Ríos
Alejandro García Chacón

Main executives
Wilfredo Jara Tirapegui
CEO

Address
Praça Leoni Ramos, Nº 1, 5º andar, bloco 2, Niterói,
RJ, Brasil.

Enersis stake
(direct and indirect)
46.12%

Corporate purpose
Wind Electricity generation

Core business
Electricity Generation.

Subscribed and paid capital
R$ 75,295,000

Main Executives
Newton Souza de Moraes
Enrique de las Morenas Moneo
CEO

Enersis stake
(direct and indirect)
0.81%

EÓLICA CANELA

Name
Central Eólica Canela S.A.

Type of entity
Private company

TAX ID
76,003,204-2

Address
Santa Rosa 76, Santiago, Chile

Phone number
(562) 2630 9000

Subscribed and paid capital (Th$)
12,284,743

Corporate purpose
Promote and develop renewable energy projects,
mainly wind energy, identify and develop clean
development mechanism (MDL in its Spanish
acronym) projects and act as depository and
trader in emission reduction certificates originated
from these projects. The generation, transport,
distribution, supply and sale of electricity, for
which it may acquire and exploit the respective
concessions and grants.

Core business
Wind farm electricity generation.

Board of Directors
Juan Benabarre Benaiges
Jesús Espadas Misioné
Sebastián Fernández Cox
Cristóbal García-Huidobro Ramírez
Bernardo Canales Fuenzalida

192

EÓLICA FAZENDA NOVA

Name
Eólica Fazenda Nova o Geraçãoa e Comercialização
de Energia S.A.

Type of entity
Private company

Address
Rua Felipe Camarão, nº 507, sala 104, Ciudad de
Natal, Rio Grande do Norte, Brasil

Phone number
(5521) 3607 9500

Subscribed and paid capital M$ 409,151

Corporate purpose
Generation, transmission, distribution and
commercialization of energy, participation in
other companies as a partner, shareholder,
or quota holders and import machinery and
equipment related to the generation, transmission,
distribution and commercialization of wind energy.

Core business
Electricity Generation.

Main Executives
Marcelo Llévenes Rebolledo
Chairman
Guilherme Gomes Lencastre
Vacant

Enersis stake
(direct and indirect)
83.49%

GASATACAMA

Name
GasAtacama S.A.

Type of entity
Private company

TAX ID
96,830,980-3

Address
Avenida Isidora Goyenechea 3365, piso 8,
Santiago, Chile

Phone number
(562) 2366 3800

Subscribed and paid capital (Th$)
152,915,467

Corporate purpose
The purpose of the company is: a) the
administration and management of the companies
Gasoducto Atacama Chile Limitada, Gasoducto
Atacama Argentina Limitada, GasAtacama
Generación Limitada and other companies agreed
to by the partners; b) investment of its own or third
party’s resources, in all kinds of assets, corporeal
or incorporeal, securities, shares and commercial
paper.

Core business
Investments.

Board of Directors
Raúl Sotomayor Valenzuela (Chairman)
Joaquín Galindo Vélez
Gonzalo Dulanto Letelier
Ramiro Alfonsín Balza

Alternate Directors
Juan Benabarre Benaiges
Eduardo Ojea Quintana
Fernando Gardeweg Ried
Gonzalo Alende Serra

Main executives
Rudolf Araneda Kauert
CEO

Enersis stake
(direct and indirect)
30.75%

GASATACAMA CHILE

Name
GasAtacama Chile S.A.

Type of entity
Private company

TAX ID
78,932,860-9

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

Phone number
(562) 2366 3800

Subscribed and paid capital (Th$)
97,066,063

Corporate purpose
The company purpose includes a) exploit the
generation, transmission, purchase, distribution
and sale of electric or any other energy; b) the
purchase, extraction, exploitation, processing,
distribution, commercialization and sale of solids,
liquids and gas fuels; c) the sale and engineering
services supply; d) obtain, purchase, transfer,
rental, charging and exploitation in any way of the

IDENTIFICATION OF SUBSIDIARIES AND ASSOCIATE COMPANIES

2013 ANNUAL REPORT ENERSISconcessions referred to in the General Electrical
Services Law, 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, location and exploitation of
gas pipelines and other activities related directly
or indirectly to it; f) invest in all kinds of assets,
corporeal or incorporeal, movable or fixed; g)
the organization and constitution of all kind of
companies whose purposes 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.

Core business
Electricity generation and gas transportation.

Board of Directors
Raúl Sotomayor Valenzuela
Joaquín Galindo Vélez
Gonzalo Dulanto Letelier
Vacant

Alternate Directors
Juan Benabarre Benaiges
Eduardo Ojea Quintana
Fernando Gardeweg Ried
Gonzalo Alende Serra

Main executives
Rudolf Araneda Kauert
CEO

Enersis stake
(direct and indirect)
30.75%

GASODUCTO ATACAMA

ARGENTINA

Name
Gasoducto Atacama Argentina S.A.

Type of entity
Private company

TAX ID
78,952,420-3

town of Cornejo, Salta province and the Argentine-
Chilean border in the vicinity of the Jama border
crossing located in the second region of Chile.

Enersis stake
(direct and indirect)
30.75%

Core business
Gas transportation.

Board of Directors
Rafael Zamorano Chaparro
Gustavo Venegas Castro
Pedro de la Sotta Sánchez

Alternate Directors
Luis Cerda Ahumada
Mario Guevara Esturillo
Alejandro Sáez Carreño

Main executives
Rudolf Araneda Kauert
CEO

Enersis stake
(direct and indirect)
30.75%

GASODUCTO TALTAL

Name
Gasoducto Taltal S.A.

Type of entity
Private company

TAX ID
77,032,280-4

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

Phone number
(562) 2366 3800

GENERALIMA S.A.C.

Name
Generalima S.A.C.

Type of entity
Private company

Address
Calle César López Rojas N° 201, Urbanización
Maranga, Distrito de San Miguel, Provincia y
Departamento de Lima

Phone number
(051) 561-0466

Subscribed and paid capital (Th$)
27,523,467

Corporate purpose
Investments in other companies, mainly those
engaged in the exploitation of natural resources
and, especially, in the related to the generation,
production, and marketing of electric power.

Core business
Investments.

Main Executives
Claudio Helfmann Soto (CEO)

Enersis stake
(direct and indirect)
100%

Proportion of Enersis assets de Enersis
0.30%

Corporate purpose
Transportation, 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, location and
exploitation of gas pipelines and other activities
related directly or indirectly to it.

GENERANDES PERÚ

Name
Generandes Perú S.A.

Type of entity
Sociedad Anónima

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

Core business
Gas transportation.

Address
Avda. Víctor Andrés Belaúnde 147, Edificio Real 4,
piso 7, San Isidro, Lima, Perú

Phone number
(562) 2366 3800

Subscribed and paid capital (Th$)
109,209,703

Corporate purpose
The company´s purpose is the transportation 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. The company has
an Agency based in Argentina, “Gasoducto Cuenca
Noroeste Limitada Sucursal Argentina”, and its
purpose is the execution of a pipeline between the

Subscribed and paid capital (Th$)
19,085,847

Phone number
(511) 215 6300

Board of Directors
Rafael Zamorano Chaparro
Gustavo Venegas Castro
Pedro de la Sotta Sánchez

Alternate Directors
Luis Cerda Ahumada
Mario Guevara Esturillo
Alejandro Sáez Carreño

Main executives
Rudolf Araneda Kauert
CEO

Subscribed and paid capital (Th$)
186,325,266

Corporate purpose
The company has the purpose to develop activities
related to electricity generation, directly, or
through companies created for that purpose.

Core business
Investments.

193

of act or contract that may be necessary, useful or
convenient for meeting its purposes.

Core business
Import and commercialization of natural gas

and that Is currently known as GNL Chile S.A.
The company may carry out all kinds of acts or
contracts that are necessary, useful or convenient
for meeting this purpose.

Board of Directors
Ignacio Blanco Fernández (Chairman)
Alberto Briand Rebaza Torres (ViceChairman)
Joaquín Galindo Vélez
Raffaele Enrico Grandi
José Agustín Venegas Maluenda
Rafael Fauquie Bernal
Gerardo Rafael Sepúlveda Quezada
Alberto Triulzi Mora

Alternate Directors
Guillermo Lozada Pozo
Rafael Alcázar Uzátegui
Julían Cabello Yong
Carlos Rosas Cedillo
José María Hidalgo Martín-Mateos
Gonzalo Adolfo De las Casas Salinas
Sebastián Fernández Cox
Eric Andrés Añorga Müller

Enersis stake
(direct and indirect)
36.59% - No variation.

GNL CHILE

Name
GNL Chile S.A.

Type of entity
Private company

TAX ID
76,418,940-K

Board of Directors
José Agustín Venegas Maluenda
Marc Llambias Bernaus
Klaus Lührmann Poblete

Alternate Directors
Víctor Turpaud Fernández
Juan Oliva Vásquez
Mario Basualto Vergara

Main executives
Alejandro Palma Rioseco
CEO

GNL QUINTERO

Name
GNL Quintero S.A.

Type of entity
Private company

TAX ID
76,788,080-4

Main executives
Francisco Pérez Thoden Van Velzen (CEO)
Eric Andrés Añorga Müller (CFO)

Enersis stake
(direct and indirect)
19.99% - No variation.

Core business
Unloading, storing and re-gasifying liquefied
natural gas and natural gas.

Board of Directors
José Agustín Venegas Maluenda
Julio Bertrand Planella
Francesco Gazmuri Schleyer
Jesús Saldaña
Sultán Al Bartamani

Main executives
Juan Oliva Vásquez
Fernando Promis Baeza
Victor Turpaud Fernández
Rafael González
Hilal Al Kharusi
Principales ejecutivos
Antonio Bacigalupo Gittins
CEO

Enersis stake
(direct and indirect)
12% - No variation.

HIDROINVEST

Name
Hidroinvest S.A.

Dirección
Rosario Norte 532, oficina 1604, Las Condes,
Santiago, Chile

Type of entity
Corporation incorporated in Buenos Aires,
Argentina

Address
Rosario Norte 530, oficina 1303, Las Condes,
Santiago, Chile

Phone number
(562) 2499 0900

Address
Avda. España 3301, Buenos Aires, Argentina

Phone number
(562) 2892 8000

Subscribed and paid capital (Th$)
1,590,361

Corporate purpose
The company purpose is to a) contract the services
of the liquefied natural gas (LNG) regasification
company GNL Quintero S.A. and use all the natural
gas and LNG storage, processing, re-gasification
and delivery capacity of its re-gasification
terminal, including its expansions if any and
any other matter stated in the contract that
the Company signs to use of the re-gasification
terminal; b) import LNG under the delivered on
ship (DES) mode from LNG suppliers according to
LNG purchase agreements; c) the sale and delivery
of natural gas according to contracts signed by
the company with its customers; d) manage and
coordinate the programming and nominations of
LNG loads, as well as the delivery of natural gas
among the different customers; e) comply with
all its obligations and demand compliance with
all its rights according to the contracts mentioned
above and coordinate all activities included in
such contracts, and in general carry out any type

Subscribed and paid capital (Th$)
59.941.639

Phone number
(5411) 4307 3040

Corporate purpose
a) the development, financing, design,
engineering, supply, construction, start up,
operation and maintenance of an liquefied natural
gas (“LNG”) storage and re-gasification plant and
its corresponding sea terminal for loading and
unloading LNG and its expansions, if any, including
the installations and connections necessary to
deliver the LNG through a truck-loading yard and/
or one or more LNG pipeline delivery points (the
“Re-gasification Terminal”); and any other activity
leading or related to such purpose, including,
but not limited to, the provision of management
and administrative services of all commercial
agreements needed to receive LNG or to deliver
it to customers, re-gasification of LNG, delivery
of natural gas and sale of services and storage,
processing, re-gasification-loading and unloading
at the LNG Regasification and delivery Terminal
(the “Project”) and its expansions, if any, and b)
offer general management and administrative
consulting in general necessary for the correct
operation of the company, the Trading Company
according to how it is defined in numeral thirteen
four of article thirteen of the social agreement

Subscribed and paid capital (Th$)
4,459,651

Corporate purpose
Acquire and maintain a majority shareholding in
Hidroeléctrica Alicura S.A. and/or Hidroeléctrica El
Chocón S.A. and/or Hidroeléctrica Cerro Colorado
S.A. (“the concessionaire companies”) created
by National Executive Power decree 287/93 and
manages such investments.

Core business
Investments.

Board of Directors
Joaquín Galindo Vélez (Chairman)
José Miguel Granged Bruñen
José María Hidalgo Martín Mateos
Fernando Claudio Antognazza
Eduardo Escaffi Johnson (CFOEnersis S.A.)
Juan Carlos Blanco
Roberto José Fagan
Carlos Martín Vergara

194

IDENTIFICATION OF SUBSIDIARIES AND ASSOCIATE COMPANIES

2013 ANNUAL REPORT ENERSIS
Alternate Directors
Francisco Monteleone
Jorge Raúl Burlando Bonino
Daniel Garrido
Rodolfo Bettinsoli
Fernando Boggini
Rodrigo Quesada
Sergio Camps
Oscar Rigueiro

Enersis stake
(direct and indirect)
57.64% - No variation.

ICT

Name
ICT Servicios Informáticos Limitada

Type of entity
Limited partnership

TAX ID
76,107,186-6

Address
Santa Rosa 76, piso 9

Phone number
(562) 2353 4606

Subscribed and paid capital (Th$)
500,000

Corporate purpose
The provision of consulting services in matters
related to information technology and computing,
telecommunications and data transmission.

Core business
Consulting services in information and computing
technology, telecommunications, and data
transmission; acquire and dispose of all assets
related to the company´s business.

Main Executives
Pedro Carrizo Polanco
CEO

Enersis stake
(direct and indirect)
99.99%

Proportion of Enersis assets
0.01%

INGENDESA DO BRASIL

(en liquidación)

Name
Ingendesa do Brasil Ltda.

Type of entity
Sociedad de responsabilidad limitada.

Address
Praça Leoni Ramos, Nº 1, parte, São Domingos,
Niterói - RJ, Brasil.

Corporate purpose
The corporate purpose includes offering services in
engineering, studies, projects, technical consulting,
management, inspection and supervision of works
supply, inspection and reception of materials and
equipment for laboratories, appraisals, commercial
representation of local and foreign engineering
companies, as well as other services that the legal
powers permit in the practice of the professions of
engineering, architecture, agronomy, geology and
meteorology in all their specialties.

INVERSIONES DISTRILIMA

Name
Inversiones Distrilima S.A.C.

Type of entity
Private company

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

Core business
Engineering services.

Subscribed and paid capital
M$48,203

Representative
Bruno César Vasconcelos

INMOBILIARIA MANSO DE

VELASCO

Name
Inmobiliaria Manso de Velasco Ltda.

Type of entity
Sociedad de Responsabilidad Limitada

TAX ID
79,913,810-7

Address
Miraflores 383, piso 29, Santiago, Chile

Phone number
(562) 2378 4700

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

Core business
Real estate.

Subscribed and paid capital (Th$)
25,916,800

Attorneys-in-fact
Andrés Salas Estrades
Fernando Gardeweg Ried

Main executives
Andrés Salas Estrades
CEO

Hugo Ayala Espinoza
Jorge Carnevali Flores

Commercial relations
Property rentals, trading desk services, accounting,
tax and other services supply. Commercial accounts
trading.

Phone number
(511) 561 1604

Subscribed and paid capital (Th$)
37,694,885

Corporate purpose
Make investments in other companies, most
preferably in those Involved in the exploitation
of natural resources, and especially those related
to the distribution, transmission and generation
of electricity. In order to perform according to its
purpose and practice the activities related to it,
the company may perform all actions and enter
into all contracts that the Peruvian laws allow to
corporations. The company may also make equity
investments in any kind of property including
stocks, bonds and any other class of transferable
securities, as well as the administration of such
investments within the limits set by the board and
ordinary shareholders meeting. The activities that
are considered within the purpose of the company
may be carried out in Peru and abroad.

Core business
Investments.

Board of Directors
The Ordinary shareholders meeting that met
03/29/2011 agreed to change the entity Into a
Private Company without Board of Directors.

Main executives
Ignacio Blanco Fernández
CEO

Enersis stake
(direct and indirect)
99.73%

Proportion of Enersis assets
2.01%

INVERSIONES GASATACAMA

HOLDING

Name
Inversiones Gasatacama Holding Limitada

Type of entity
Sociedad de Responsabilidad Ltda.

Enersis stake
100% - No variation.

TAX ID
76,014,570-K

Proportion of Enersis assets de Enersis
0.12%

Address
Avenida Isidora Goyenechea 3365, piso 8,
Santiago, Chile

195

Phone number
(562) 2366 3800

Core business
Investments.

Phone number
(56 2) 2634 6310

Corporate purpose
The company purpose is a) the direct or indirect
participation through any kind of association in
companies whose purpose include one or more of
the following: i) the transportation of natural gas
in any of its forms; ii) the generation, transmission,
purchase, distribution and sale of electricity, and
iii) financing the activities stated in i) and ii) above
that are carried out by related third parties, and
b) the perception and investment of the assets
invested, including lucrative activities related to
the ones mentioned.

Core business
Investments.

Subscribed and paid capital (Th$)
174,967,716

Board of Directors
Raúl Sotomayor Valenzuela
Joaquín Galindo Vélez
Eduardo Escaffi Johnson (CFO Enersis S.A.)
Gonzalo Dulanto Letelier

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

Main executives
Rudolf Araneda Kauert
CEO

Enersis stake
(direct and indirect)
30.75%

INVERSORA CODENSA S.A.S.

Name
Inversora Codensa S.A.S.

Type of entity
Sociedad por acciones simplificada

Address
Carrera 11 N°82-76, Piso 4, Bogotá, Colombia

Phone number
(571) 601 6060

Subscribed and paid capital (Th$)
M$ 1,360

Corporate purpose
Investment in residential public electric utility
services, especially the acquisition of shares in
any public electric utility or in any other company
that also invests in utilities whose main purpose
is residential electricity service according to the
definition in Law 142 of 1994, or in any other
company that also invests in utilities whose main
purpose is residential public electric utility services.

Legal Representative
David Felipe Acosta Correa

Subscribed and paid capital (Th$)
1,224

Enersis stake
(direct and indirect)
48.39%

Corporate purpose
Distribution and commercialization of electricity
and the sale of home, sports, entertainment and
computers electrical appliances.

INVERSORA DOCK SUD S.A.

Core business
Distribution of electricity.

Name
Inversora Dock Sud S.A.

Type of entity
Private company

Address
Pasaje Engineer Butty 220 Piso 16 Ciudad
Autónoma de Buenos Aires

Phone number
4229-1000

Subscribed and paid capital (Th$)
20,613,502

Corporate purpose
Sole object of capital investment in companies.

Core business
Investments

Board of Directors
José M. Hidalgo Martín-Mateos
Joaquín Galindo Velez
Maria Inés Justo
Jorge Norberto Peña
Martin Mandarano
José Miguel Granged Bruñen
Pablo Vera Pinto

Alternate Directors
Sebastián Ortiz
Gerardo Zmijak
Juan Carlos Blanco
Alejandro Fernández
Fernando Claudio Antognazza

Enersis stake
(direct and indirect)
57.14%

LUZ ANDES

Name
Luz Andes Limitada

Type of entity
Limited liability company

TAX ID
96,800,460-3

Address
Santa Rosa 76, Santiago, Chile

Main executives
Claudio Inzunza Díaz
CEO

Enersis stake
(direct and indirect)
99.09% - No variation.

PEHUENCHE

Name
Empresa Eléctrica Pehuenche S.A.

Type of entity
Publicly held Limited Liability Company

TAX ID
96,504,980-0

Address
Santa Rosa 76, Santiago, Chile

Phone number
(562) 2630 9000

Corporate purpose
The company purpose is the generation,
transmission, distribution and supply of electricity,
for which it may acquire and use the respective
concessions, permits and rights.

Core business
Electricity Generation.

Subscribed and paid capital (Th$)
200,319,020

Board of Directors
Alan Fischer Hill
Alejandro García Chacón
Humberto Espejo Paluz
Fernando Gardeweg Ried
Fernando Prieto Plaza

Main executives
Lucio Castro Márquez
CEO

Enersis stake
(direct and indirect)
55.57% - No variation.

196

IDENTIFICATION OF SUBSIDIARIES AND ASSOCIATE COMPANIES

2013 ANNUAL REPORT ENERSISPROGAS

Name
Progas S.A.

Type of entity
Private company

TAX ID
77,625,850-4

Address
Avenida Isidora Goyenechea 3365, piso 8,
Santiago, Chile

Phone number
(562) 2366 3800

Corporate purpose
Develop the following businesses in the 1st, 2nd
and 3rd regions of the country, the acquisition,
production, storage, transportation, distribution,
transformation and commercialization of
natural gas and other oil derivatives and fuels
in general, the supply of services, manufacture,
commercialization of equipment and materials,
and carrying out works related to the above
purposes or those necessary for their execution
and development, any other activity necessary
or leading to comply with the above mentioned
purposes.

Core business
Gas supply.

Subscribed and paid capital (Th$)
1,563

Board of Directors
Rudolf Araneda Kauert
Luis Cerda Ahumada
Pedro De La Sotta Sánchez

Main executives
Alejandro Sáez Carreño
CEO

Enersis stake
(direct and indirect)
30.75%

SACME

Name
Sacme S.A.

Type of entity
Private company

Corporate purpose
Conduct, supervise and control the operation of
the electricity generation, transmission and sub
transmission system of Capital Federal and Gran
Buenos Aires, and the interconnections with
the Argentine Interconnection System (SADI in
its Spanish acronym). Represent the companies
Distribuidora Edenor S.A. and Edesur S.A. in
terms of operations, before the wholesale market
administrator, Compañía Administradora del
Mercado Mayorista Eléctrico (CAMMESA in its
Spanish acronym. In general, adopt all actions
necessary to allow it to carry out the administration
of the business correctly, as being constituted for
this purpose by the concessionaire companies of
the electricity distribution and commercialization
in Capital Federal and Gran 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.

Core business
Conduction, supervision and control of operations
of part of the Argentine electricity system.

Board of Directors
Osvaldo Ernesto Rolando
Leandro Ostuni
Daniel Flaks
Eduardo Maggi

Alternate Directors
Abel Cresta
Leonardo Félix Druker
Alberto Rica
José Luis Marinelli

Main executives
Francisco Cerar
CEO

Enersis stake
(direct and indirect)
35.80%

Board of Directors
Carlos Alberto Luna Cabrera
Juan Manuel Pardo
Leonardo López Vergara

Alternate Directors
Fernando Gutiérrez Medina
Alba Lucía Salcedo
Luís Fernando Salamanca

Main executives
Fernando Gutiérrez Medina
CEO

Enersis stake
(direct and indirect)
38.19%

SOUTHERN CONE POWER

ARGENTINA

Name
Southern Cone Power Argentina S.A.

Type of entity
Sociedad Anónima

Address
Avda. España 3301, Buenos Aires, Argentina

Phone number
(54 11) 4307 3040

Subscribed and paid capital (Th$)
34,670

Corporate purpose
Wholesale electricity buying and produced by third
parties and to be consumed by third parties. It may
also hold participations in companies dedicated to
electricity generation.

SOCIEDAD PORTUARIA

CENTRAL CARTAGENA

Name
Sociedad Portuaria Central Cartagena S.A.

Type of entity
Corporation

Address
Carrera 13 A Nº 93-.66, piso 2 Bogotá, D.C.
Colombia.

Core business
Investments

Board of Directors
José María Hidalgo Martín Mateos
José Miguel Granged Bruñen
Roberto José Fagan

Alternate Directors
Fernando Claudio Antognazza

Enersis stake
(direct and indirect)
60.01%

Address
Avda. España 3251, Ciudad Autónoma de Buenos
Aires, Argentina

Phone number
(5411) 4361 5107

Subscribed and paid capital
($Argentinos)
12,000

Subscribed and paid capital (Th$)
1,578

TERMOELÉCTRICA JOSÉ DE

Corporate purpose
The company’s main purpose is the following:
1. Investment, construction and maintenance
of docks and private and public ports, their
management and operations and the development
and operation of a multipurpose port, according to
the law, among others.

SAN MARTÍN

Name
Termoeléctrica José de San Martín S.A.

Type of entity
Sociedad Anónima

Address
Elvia Rawson de Dellepiane 150, piso 9, Buenos
Aires, República de Argentina

197

Phone number
(511) 561 0386

Subscribed and paid capital (Th$)
40,314

Corporate purpose
The generation of electricity and its block
commercialization, and 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 N° 1427/2004”, approved by
Resolution SE N° 1193/2005.

Core business
Electricity Generation.

Board of Directors
José María Vázquez
Claudio O. Majul
José Miguel Granged Bruñen
Fernando Claudio Antognazza
Patricio Testorelli
Martín Genesio
Gerardo Carlos Paz
José Manuel Tierno
Jorge Ravlich

Alternate Directors
Juan Carlos Blanco
Roberto José Fagan
Adrián Gustavo Salvatore
Leonardo Pablo Katz
Iván Durontó
Emiliano Chaparro
Luís Agustín León Longobardo
Sergio Raúl Sánchez
Rigoberto Orlando Mejía Aravena

Main executives
Claudio Omar Majul
CEO - Gerente de Main Executives y Finanzas
Fernando Rabita - Gerente Operativo de Planta
Guillermo Paillet - Gerente Comercial

Enersis stake
(direct and indirect)
10.38%

TERMOELÉCTRICA MANUEL

BELGRANO

Name
Termoeléctrica Manuel Belgrano S.A.

Corporate purpose
The purpose of the company is the generation of
electricity and its block commercialization, and
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 N° 1427/2004”,
approved by Resolution SE N° 1193/2005.

Core business
Electricity Generation.

Board of Directors
Patricio Testorelli
Martín Genesio
Adrián Gustavo Salvatore
José María Vásquez
Fernando Claudio Antognazza
José Miguel Granged Bruñen
Gerardo Carlos Paz
José Manuel Tierno
Jorge Ravlich

Alternate Directors
Rigoberto Orlando Mejía Aravena
Juan Carlos Blanco
Roberto José Fagan
Leonardo Marinaro
Leonardo Pablo Katz
Emiliano Chaparro
Luis Agustín León Longobardo
Sergio Raúl Sánchez
Iván Diego Durontó

Main executives
Gabriel Omar Ures
CEO
Gustavo Manifesto
Gerente Técnico
Óscar Zapiola
Gerente de Main Executives y Finanzas
Sergio Schmois
Gerente Comercial

Enersis stake
(direct and indirect)
10.38%

TESA

Name
Transportadora de Energía S.A.

Type of entity
Sociedad Anónima

Type of entity
Corporation

Address
Bartolomé Mitre 797, piso 11, Buenos Aires,
República de Argentina

Address
Suipacha 268, piso 12, Buenos Aires, Argentina

Phone number
(5411) 4394 1161

Phone number
(511) 561 0386

Subscribed and paid capital (Th$)
40,314

Subscribed and paid capital (Th$)
8,063

Corporate purpose
Supply high voltage electricity transmission services
in relation to national and international electricity

systems, according to current legislation, for which
it may take part in national or international tenders,
become a public utility concessionaire in local or
international high-voltage electricity transmission,
and perform all activities necessary for these purposes,
including but not limited to, becoming a part of
construction, operation and maintenance for the
start up or expansion of electricity transmission lines,
participate in financing of projects directly or indirectly
related to such endeavors as borrower and/or lender
and/or guarantor, and allowed to give guarantees in
favor of third parties. All activities considered in the
Financial Institutions Act and any other that requires
the assistance of government funds are excluded.

Core business
Electricity transmission.

Directores
José María Hidalgo Martín-Mateos
Guilherme Gomes Lencastre
Arturo Miguel Pappalardo

Alternate Directors
José Venegas Maluenda
Juan Carlos Blanco
Roberto José Fagan

Main executives
Arturo Pappalardo
CEO

Enersis stake
(direct and indirect)
83.53%

TRANSQUILLOTA

Name
Transmisora Eléctrica de Quillota Ltda.

Type of entity
Sociedad de Responsabilidad Limitada

TAX ID
77,017,930-0

Address
Tax IDa 60, km 25, Lo Venecia, Comuna de Quillota,
V Región de Valparaíso

Phone number
(562) 2630 9000

Subscribed and paid capital (Th$)
4,404,446

Corporate purpose
Transmission, distribution and supply of electricity,
by itself or through third parties.

Core business
Electricity transmission.

Attorneys-in-fact
Juan Eduardo Vásquez Moya
Gabriel Carvajal Menególlez
Ricardo Santibáñez Zamorano

198

IDENTIFICATION OF SUBSIDIARIES AND ASSOCIATE COMPANIES

2013 ANNUAL REPORT ENERSISAttorneys-in-fact Alternate
Eduardo Calderón Avilés
Carlos Ferruz Bunster
Ricardo Sáez Sánchez

Enersis stake
(direct and indirect)
30.75%

TÚNEL EL MELÓN

Name
Sociedad Concesionaria Túnel El Melón S.A.

Type of entity
Private company

TAX ID
96,671,360-7

Address
Santa Rosa 76, Santiago, Chile

Phone number
(562) 2690 5081

Subscribed and paid capital (Th$)
19,028,480

Corporate purpose
Execution, construction and exploitation of the
public highway tunnel called Tunnel El Melón and
the supply of complementary services, authorized
by the Ministry of Public Works.

Core business
Infrastructure concessionaire

Board of Directors
Eduardo Escaffi Johnson (CFO of Enersis S.A.)
Sebastián Fernández Cox
Vacant

Main executives
Maximiliano Ruiz Ortíz
CEO

Enersis stake
(direct and indirect)
59.98% - No variation.

YACYLEC S.A.

Name
Yacylec S.A.

Type of entity
Private company

Subscribed and paid capital (Th$)
1,612,544

Corporate purpose
Construction, operation and maintenance of the
electrical link between the hydroelectric Yacyreta
(Corrientes Province), and the transformer station
resistance (Chaco province), and the provision of
services of transport of electricity.
Core business
Electricity transmission.

Board of Directors
Jorge Neira (Chairman)
Juan Manuel Pereyra (ViceChairman)
José María Hidalgo Martín-Mateos
Juan Carlos Blanco
Gerardo Luis Ferreyra
Osvaldo Acosta
Guillermo Díaz
Eduardo Martín Albarracin
Miguel Angel Sosa
Luis Juan Bautista Piatti
Arturo Pappalardo
Patricia Liliana Díaz

Alternate Directors
Ricardo Repetti
Javier Elgueta
María Inés Justo
Roberto José Fagan Pecollo
Gianfranco Catrini
Massimo Villa
Roberto Leonardo Maffiolli
Darío Ballaré
Sergio Vestfrid
Daniel Garrido
Robert Ortega
Alberto Verra

Main executives
Arturo Pappalardo (CEO)
Alberto Funes
Alberto Ledesma
Jessica Chelén

Enersis stake
(direct and indirect)
22.22%

Proportion of Enersis assets de Enersis
0.02%

Notes:
1. There are no acts or contracts subscribed by
Enersis S.A. with its subsidiaries or associates
that significantly influence Enersis S.A.
operations.

2. In subsidiaries and associates that do not include

the item Proportion of Enersis assets, Enersis
does not hold a direct Investment.

Address
Bartolomé Mitre 797, piso 11º; Ciudad Autónoma
de Buenos Aires.

3. In subsidiaries and associates that do not include
the item commercial relations, Enersis does not
have a commercial relations.

Phone number
(5411) 4587 4322

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Declaration of
responsibility

200

DECLARATION OF RESPONSIBILITY

2013 ANNUAL REPORT ENERSISDeclaration of responsibility

The members of the board of directors and chief executive officer of Enersis, the signatories to this

declaration, swear to accept responsibility for the accuracy of all the information contained in this

document, in compliance with general rule N°30 of the Superintendence of Securities and Insurance.

CHAIRMAN
Pablo Yrarrázaval Valdés
Tax ID: 5,710,967-K

VICECHAIRMAN
Borja Prado Eulate
Passport: AAC809697

DIRECTOR
Andrea Brentan
Passport: YA0688158

DIRECTOR
Luigi Ferraris
Passport: YA2600789

DIRECTOR
Hernán Somerville Senn
Tax ID: 4,132,185-7

DIRECTOR
Leonidas Vial Echeverría
Tax ID: 5,719,922-9

DIRECTOR
Rafael Fernández Morandé
Tax ID: 6,429,250-1

CEO
Ignacio Antoñanzas Alvear
Tax ID: 22,298,662-1

201