INTEGRATED ANNUAL REPORT
ENEL CHILE 2023
Every action can produce a big change. Every choice made
by companies, communities or individuals inevitably affects
the balance between them. Growing sustainably means being
aware of the effects of each action: from the generation to the
distribution of value. This is what the graphic design of the Enel
Chile Group's Integrated Annual Report expresses. The Company
is symbolically represented by circular geometric shapes that
integrate with each other to generate a balanced system and
highlight the drive towards growth: from energy production to
its distribution and use.
INTEGRATED ANNUAL REPORT
ENEL CHILE 2023
3
ENEL IS OPEN POWER
OPEN POWER
POSITIONING
VISION
Open Power to tackle some of the
world’s biggest challenges.
MISSION
• Open access to electricity for more people.
• Open the world of energy to new technology.
• Open up to new uses of energy.
• Open up to new ways of managing energy for people.
• Open up to new partnerships.
PURPOSE
OPEN
POWER
FOR A
BRIGHTER
FUTURE.
VALUES
• Trust
• Proactivity
• Responsibility
• Innovation
4
Integrated Annual Report Enel Chile 2023
PRINCIPLES OF CONDUCT
WE
EMPOWER
SUSTAINABLE
PROGRESS.
• Make decisions in daily activities
and take responsibility for them.
• Share information, being willing
to collaborate and open to the
contribution of others.
• Follow through with commitments,
pursuing activities with
determination and passion.
• Change priorities rapidly if the
situation evolves.
• Get results by aiming for excellence.
• Adopt and promote safe behavior
and move proactively to improve
conditions for health, safety
and well-being.
• Work for the integration of all,
recognizing and leveraging
individual diversity (culture, gender,
age, disabilities, personality, etc.).
• Work focusing on satisfying
customers and/or coworkers,
acting effectively and rapidly.
• Propose new solution and d
o not give up when faced with
obstacles or failure.
• Recognize merit in co-workers and
give feedback that can improve
their contribution.
5
Herman Chadwick Piñera
Chairman
LETTER TO
SHAREHOLDERS
AND STAKEHOLDERS
Giuseppe Turchiarelli
CEO (a.i.)
Ladies and Gentlemen
We are hereby presenting the 2023 Integrated Report and
Financial Statements, which reflect a successful year for
the Company as well as our continued leadership in the
local electricity market.
We are pleased to acknowledge this accomplishment,
considering the many global and local challenges we
faced over the past year. Our effective management has
been evident throughout.
The international scenario in 2023 was marked by a series
of unfortunate events, including two wars, armed conflicts,
and humanitarian crises. These events had a significant
impact on the global economies, leading to rising prices of
raw materials and high inflation. However, towards the end
of the year, there were signs of recovery as inflation started
to decline. This undoubtedly affected our industry and the
financial well-being of households and businesses across
the country. Many of them are our valued customers.
Apart from external factors, there were local issues that
further exacerbated imbalances. The year was dominated
by a fresh attempt to amend the Constitution, leaving the
business community eagerly anticipating a resolution. In
December, the proposal faced another rejection, leading
to the ratification of the current Charter for the second
time. As this process unfolded, there was a noticeable
rise in crime and insecurity on the streets, accompanied
by an unfortunate increase in poverty and the number of
campsites. We hope that the focus will now shift to urgent
reforms required in healthcare, pensions, security, and
economic growth.
Notwithstanding these ups and downs, Enel Chile
successfully overcame the difficulties the business faced
while consistently providing reliable, clean, and sustainable
service. However we still carefully managed our portfolio to
prioritize the most profitable and sustainable projects and
ventures. As a result, we successfully lowered our debt and
6
Integrated Annual Report Enel Chile 2023
EBITDA
Ch$1.04
trillion
Net installed capacity
8.5
GW
achieved positive results.
In 2023, the company achieved a net profit of CH$
633,456 million, which was 49.4% lower than the previous
year. This profit is attributable to Enel Chile's shareholders
as of December. In that particular year, we experienced an
increase in our income due to a payment of US$ 520 million
made by Shell to Enel Generación Chile for a contract
modification. In addition, there was a decrease in petrol
trading in 2023 and the sale of Transmission at the end
of 2022, partially offset by the sale of Arcadia Generación
Solar in October 2023.
As a company, we actively continue to pursue a shift
towards a more sustainable energy matrix. In 2023, we
received authorization from the National Electricity
Coordinator for Enel Green Power Chile to commence
commercial operations of Guanchoi, Enel's third-largest
solar plant worldwide. With an annual production of over
1,100 GWh, this power source can provide electricity
to over 1 million homes in Chile. We were also given the
green light to begin operating Campos del Sol, located
in the Atacama Region. This remarkable plant has a net
capacity of 375 MW, making it one of the largest in the
country. Additionally, we are proud to announce the
successful launch of Valle del Sol, a photovoltaic plant with
a capacity of 162.8 MW. Furthermore, we have completed
the Finis Terrae Extension and Finis Terrae III projects,
which are photovoltaic generation ventures with net
installed capacities of 126 MW and 18 MW, respectively.
Furthermore, we are pleased to announce the initiation of
Renaico II, situated in La Araucanía. This project comprises
thirty-two wind turbines 4.5 MW in total, representing a
noteworthy accomplishment in wind energy.
Additionally, the company initiated construction on the
El Manzano solar park, which marks our first venture into
large-scale photovoltaic plants in the Metropolitan Region.
Simultaneously, we also commenced construction on Don
Humberto, our second hybrid generation park, to integrate
solar panels with a cutting-edge BESS (Battery Energy
Storage System) energy storage system. Furthermore, we
completed the sale of our subsidiary Arcadia Generación
Solar to Sonnedix, an international renewable energy
company. This transaction includes the Diego de Almagro,
Carrera Pinto, Pampa Solar Norte, and Domeyko plants,
which collectively generate an impressive 1 TWh/year of
net production.
Thanks to effective management strategies, our subsidiary,
Enel Generación, successfully assured a consistent supply
of natural gas for its combined cycle thermal power plants.
In addition to using global market prospects to monetize
this asset, we are able to assist Chile in its ongoing efforts
to reduce its reliance on coal-fired thermal generating.
This guaranteed higher profit margins for our company in
2023.
Simultaneously, we persist in our efforts to collaborate
with communities. In Quillota, we completed the planting
of our 100,000th tree as part of the "Quillota Breathes
Against Climate Change" project in 2023. This remarkable
achievement solidified our position as the largest tree-
planting initiative in Latin America. We also successfully
funded 31 projects in Quintero through a collaborative
effort with GNL Quintero.
In order to further enhance the distribution of electricity
and establish a more robust framework for the expansion
of power consumption, we are pleased to announce the
opening of the Centre of Operational Excellence in the
Metropolitan Region. This center is dedicated to providing
comprehensive training to students and professionals,
equipping them with the necessary technical skills to
enhance the quality of service they provide. Over the past
year, we have made significant strides toward improving
our systems. We conducted thorough inspections on
over 1,900 kilometers of medium voltage grids, increased
their digitalization, added new stations, and leveraged
technology to improve our customer service and
7
guarantee a swift response to their needs.
We will do our best to ensure that our more than 2 million
customers are always satisfied with the service we provide.
Focusing on sustainability as our core value, we firmly
believe that transitioning to electric consumption is
essential for improving people's quality of life. We are
actively working on projects that support the growth of
electromobility. Thanks to a collaborative effort between
the public and private sectors, the Electro Terminal La
Pintana began operations in January 2023. It now serves as
a supply hub for 107 new electric buses integrated into the
public transport system of the Metropolitan Region. These
vehicles are benefiting over 55 thousand individuals living
in nine districts of Greater Santiago.
To promote electromobility, new charging points were
installed to cater to the needs of individuals traveling
around Chile in electric vehicles. One of our notable
accomplishments is the installation of 17 charging stations
along the remote Carretera Austral. This development
enables electric vehicle owners to travel over 1,200
kilometers without any concerns about recharging.
During a year that brought the nation together through
the power of sports, Enel X and Signify successfully
installed a top-notch sports lighting system at the National
Stadium for the Pan American and Parapan American
Games. By incorporating 224 LED projectors in the four
towers of the venue, along with 12 projectors positioned
under the canopy, we improve the overall experience for
both attendees and athletes. This not only creates a more
captivating show but also promotes sustainability and
efficiency. In addition to our collaboration with Cruzados
S.A., Enel Generacion, and Enel X, we successfully
transformed
stadium
of
the
Universidad
Catolica
football club into a fully sustainable sports venue in
Chile. This achievement was made possible through the
implementation of a cutting-edge photovoltaic system for
solar self-generation.
We also move forward with energy. That is why, in
November, we ratified a US$2,300 million investment plan
for the 2024-2026 period, which means a 30% increase
compared to the previous period. The Company will
allocate about 44% to the development of renewable
projects and 25% to BESS battery systems for storage.
We have full confidence that our current approach
will lead to success. We are proud to have received
recognition from various third parties, including the Dow
Jones Sustainability Emerging Markets Index, the Dow
Jones Sustainability MILA Pacific Alliance Index, the Dow
Jones Sustainability Chile Index, and the FTSE4Good Index.
These accolades serve as a testament to our commitment
to sustainability and our strong environmental, social, and
governance practices. In addition, we are proud to have
received the prestigious "Grand Prix 2023" of ALAS 20,
which acknowledges our strong leadership, unwavering
commitment, and outstanding performance in providing
transparent information to investors and promoting
sustainable development. Furthermore, we are honored
to be recognized as the top-rated electricity company
in the Merco Empresas Chile ranking for our exceptional
corporate reputation.
We are closely monitoring the upcoming changes in
the current electricity legislation, which are intended to
promote its liberalization. This market has reached a stage
of stability, having operated under the same regulations for
an extended period. As we previously highlighted, certain
modifications to its regulatory framework are necessary to
foster more openness and flexibility. We acknowledge that
progress is being made on this matter.
We are committed to making ongoing contributions to
our company, thanks to the unwavering dedication and
commitment of our valued collaborators. We want to
express our gratitude for the valuable contributions made
by Fabrizio Barderi, the former CEO, during his two years
of service. We wish him all the best as he embarks on new
responsibilities within the Enel Group. We greatly value
the trust of our shareholders and sincerely appreciate the
dedication of our directors, who are consistently ready to
collaborate with the company.
Together with all of them, and with the support of the
Enel Group, we will keep moving forward in 2024, focusing
on sustainability and the customers to strengthen our
business further and maintain our position as one of the
most relevant players in Chile's energy transition.
8
Integrated Annual Report Enel Chile 2023
9
Board of Directors
CHAIRMAN OF THE BOARD
Herman Chadwick Piñera
Board Members
Isabella Alessio
Monica Girardi
Salvatore Bernabei
Pablo Cabrera Gaete
Fernán Gazmuri Plaza
Gonzalo Palacios Vásquez
BOARD OF
DIRECTORS
Structure and experience of
the Board of Directors
Herman Chadwick Piñera
Chairman of the Board of Directors
Profession
Degree in Legal and Social Sciences from the Pontificia
Universidad Católica de Chile
Date of Appointment to the Board of Directors
April 28, 2016
Professional Career
Mr. Chadwick is a partner of the Chilean law firm, Chadwick
& Cía. He holds the position of director in several companies
not related to the Enel Group, such as Inversiones Aguas
Metropolitanas and Viña Santa Carolina, Chilean wine
company.
Additionally, he is President of the San Ignacio del Huinay
Foundation, President of Club 50, Past President of the
Arbitration and Mediation Center of the Santiago Chamber
of Commerce, an association that provides arbitration
services to resolve disputes. He is also a Member of the
Council of the Center for Public Studies. Former Director
of the Manufacturing Development Society and former
President of the Business Committee Chile Spain. He was
decorated with the order “Cavaliere della Stella of Italy”
from the Italian Government and decorated by the King
of Spain with the “Royal Order of Isabella the Catholic”.
In addition, Mr. Chadwick received the “Julio Chaná
Cariola” award for his outstanding work as President
of the CAM (Chamber of Santiago Trade). He has also
served as President of the Association of Public Works
Concessionaires and President of the Board of Directors
of CINTRA (Ferrovial) and Director of Intervial Chile and its
subsidiaries. Mr. Chadwick has a degree in Law from the
Pontificia Universidad Católica de Chile.
Participation in other organizations
President of Huinay Foundation
President of Club 50
Past President of the Arbitration and Mediation Center of
the Santiago Chamber of Commerce
Member of the CPI Council (Infrastructure Policy Center)
Director of the Artequin Museum.
10
Integrated Annual Report Enel Chile 2023
Fernán Gazmuri Plaza
Director
Profession
Business Manager, Universidad Católica de Chile.
Date of Appointment to the Board of Directors
April 28, 2016
Professional Career
Due to his outstanding professional and commercial career,
in 2004 the Republic of France awarded Mr. Gazmuri the
Ordre National du Mérite and in 2016 he received the Jorge
Alessandri Rodríguez distinction from the Association of
Metallurgical and Metalworking Industrialists.
He was president of Citroen Chile SpA, between 1983 and
2023, director of the National Automotive Association S.A.
(ANAC), between 2004 and 2023, vice president of the
International Chamber of Commerce of Chile, between
2005 and 2009, director of the Sociedad de Fomento
Fabril between 2005 and 2019, president of the Chilean
Safety Association between 2011 and 2017 and director
of the National Company of Petroleum between 2013
and 2016 and vice president of Invexans S.A. (Chilean
instrumental company of the French cable production
company Nexans) between 2014 and January 2022.
In his professional career he has more than 38 years of
experience in corporate governance and more than six
years in the energy, risk and people management sector.
In addition, he has experience in finance, innovation,
marketing, environmental issues, information security and
auditing.
Other Boards of Directors
He is currently deputy director of Inversiones y Comercio
Eurofrance S.A. and president of Fincar SpA.
Isabella Alessio
Director
Profession
Law Degree from Universidad La Sapienza, Rome, Italy
Other studies
Master's Degree in European Legislation
Date of Appointment to the Board of Directors
April 28, 2021
Professional Career
Ms. Alessio began her professional career in 2000 at the
Clifford Chance law firm, in Barcelona, Spain; In 2002
she moved to Rome to the law firm Grimaldi e Associati.
She joined the Enel Group in 2011 as head of corporate
affairs for Iberia and Latin America at Enel Green Power. In
2014 she began serving as Head of Legal Affairs for North,
Central and South America for the global Infrastructure
and Networks line of Enel SpA, being appointed in 2017
as Manager of Legal and Corporate Affairs for the Thermal
Generation business line. Currently, Isabella is the Legal
and Corporate Affairs Manager of Global Procurement, ICT
and Global Customer Care of the Enel Group.
11
Pablo Cabrera Gaete
Director
Profession
Lawyer, Graduate of Legal and Social Studies of Pontificia
Universidad Católica de Chile.
Other studies
Diplomat, Diplomatic Academy of Chile "Andrés Bello"
(ACADE).
Date of Appointment to the Board of Directors
April 28, 2016
Professional Career
Mr. Cabrera is a counselor at the Center for International
Studies of the Catholic University (CEIUC) and director of
the Diplomatic Academy of Chile “Andrés Bello” (2010-
2014). In addition, he is a councilor of the Chamber Asia
Pacific Commerce (APCC) and the Hong Kong Latin
American Business Association (HKLABA) and member of
the Chilean Society of International Law.
In his professional career, he has been a professor at
the National Academy of Political and Strategic Studies
(Anepe); Undersecretary of the Navy at the Ministry of
National Defense (1995-1999); ambassador of Chile to
the People's Republic of China (2004-2006), the Holy See
(2006-2010); the Sovereign Order of Malta (2007-2010);
the Russian Federation (2000-2004); the United Kingdom
(1999-2000) and concurrent ambassador to Albania,
Ireland,Ukraine.
Monica Girardi
Director
Profession
Bachelor of Business Administration from Luigi Bocconi
University of Milan, Italy
Date of Appointment to the Board of Directors
April 28, 2021
Professional Career
Ms. Girardi began her career in 2003 as a consultant and
associate at Ambrosetti Stern Stewart. In 2005 she joined
Lehman Brothers' equity research team as an analyst
covering European infrastructure and utilities and moved
in 2009 to Barclays as a senior research analyst responsible
for Italian and Iberian utilities. In 2018 she joined Enel as
Group Investor Relations Manager.
Additionally, she currently works as a collaborating
professor at “SDA Bocconi – School of Management” at
the Luigi Bocconi University of Milan, Italy.
Other Boards of Directors
Ms. Girardi is a member of the Board of Directors of Enel
Italia.
12
Integrated Annual Report Enel Chile 2023
Salvatore Bernabei
Director
Profession
Management Engineer from the Università degli Studi di
Roma Tor Vergata, Italia.
Other studies
Master's Degree in Net Business Administration from
the Polytechnic University of Milan. He participated
in the INSEAD International Executive Programme in
Singapore and Paris, as well as in the Leadership for
Energy Management Program of the SDA Bocconi School
of Management (Milan) and the IESE Business School in
Barcelona.
Date of Appointment to the Board of Directors
April 28, 2016
Professional Career
Mr. Bernabei joined the Enel Group in 1999 as Logistics
Manager for Enel Distribuzione and, later, as Supply Chain
Manager for geothermal and wind energy projects in Italy.
He led several positions in the Management departments
at Enel Green Power in Engineering and Construction,
as well as in Safety and Environment in Iberia for Latin
America and Europe. In the years that he was at Iberia
he was head of Renewable Operations and Maintenance;
Upon his return to Enel he took over as Country Manager
of Chile and Andean Countries of Enel Green Power
and, successively, Head of Renewable Energies Latin
America. Between 2017 and 2020 he was head of Global
Procurement of the Enel Group. He is currently CEO of
Enel Green Power, Head of Global Power Generation and
member of the Enel Foundation Board of Directors.
Gonzalo Palacios Vásquez
Director
Profession
Civil Industrial Engineer of Pontificia Universidad Católica
de Chile
Date of Appointment to the Board of Directors
April 28, 2021
Professional Career
Mr. Palacios has an outstanding career of more than
45 years in the energy sector. He was a member of the
National Energy Commission (CNE) since its creation in
1978 and until the end of 1989. He actively participated
in the design and implementation of Chile's energy policy,
especially in the electricity law enacted in 1982, as well
as in the legal modifications introduced to the gas law
in the late 1980s. Between 1989 and 1997, he prepared
studies for the World Bank and various governments in the
energy sector on deregulation, liberalization, privatization
and regulatory frameworks in El Salvador, Peru, Ecuador,
Honduras, Uruguay and Bolivia. Between 1997 and 2011, he
was Planning and Development Manager of Metrogas and
from 2012, Corporate Manager of Subsidiaries, Studies
and Regulation of CGE S.A. Between 2012 and 2015 he
was director of the companies CGED, Conafe, Edelmag,
Edet (Argentina), Ejesa (Argentina) Binaria, Novanet, CLG
and Igsa. Tusan, Hornor, Energy Sur, Tecnet and president
director of Energía San Juan (Argentina). From 2015 to
2018 he was an advisor to CGE S.A., being director of the
group's Chilean distributors until the date they merged
with CGE's parent company (2017 and 2018). Until October
2018 he was director of Edelmag in Chile and Ejesa,
Ejsedsa, Edet and Gasnor in Argentina. Until April 2023, he
was an independent director of the company Naturgy Ban
S.A., one of the largest gas distributors in Argentina.
At the end of the 2023 period, he works as a consultant,
mainly in the energy sector. Mr. Gonzalo Palacios has more
than 45 years of experience in regulation of the energy,
risk and finance sector, in corporate governance, auditing
(compliance) and marketing. He has also worked in
information security, innovation and people management.
In addition, he has more than 40 years of experience in
managing large investment projects.
13
INDEX
1.
2.
3.
4.
Letter to shareholders and stakeholders
6
Board of Directors
10
ENEL
CHILE GROUP
21
Highlights
22
Value Creation Model
25
About Enel Chile
28
GOVERNANCE
33
Shareholders
34
Enel Chile's Corporate Governance
System
38
Board of Directors
42
Executive Team
59
Relationship between the Company,
shareholders, and the general public
64
Values and Ethical Pillars
70
Tax Transparency
81
STRATEGY
AND RISK
MANAGEMENT
85
Macroeconomic and Market Context
86
Enel Chile's strategy
88
Risk Management
118
Zero Emissions Ambition
138
ENEL CHILE'S
BUSINESS
AND MANAGEMENT
2023
183
Enel Chile's business model
184
Description of Enel Chile's business
186
Performance of the Enel Chile Group
218
Electricity Industry Structure and
Regulatory Framework
222
Investments and financial situation
229
Protection and development
of natural capital
242
Innovation
253
Focus on People
270
Connectivity Matrix
18
Basis of Presentation
16
14
Integrated Annual Report Enel Chile 2023
Document Navigation Guide
To facilitate consultation, the document and hyperlinks
are provided with interactions that allow navigation.
5.
7.
6.
OTHER
CORPORATE
INFORMATION
297
Articles of Incorporation
of the Company
298
Historical information
300
Summary of Significant Events
302
Information on shares and
other securities
304
Dividends
309
Annual management
report of the Directors’ Committee
312
Risk Factors
316
Properties and Facilities
329
Trademarks, patents and concessions 333
Subsidiaries, associates and
joint ventures
334
MAIN
INDICATORS
345
Legal and Regulatory Compliance
346
Personnel Data
348
Board of Directors Structure
354
Sustainability Indicators
355
Other information
361
ANNEXES
363
364
366
367
368
369
376
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15
Governance
This section communicates
the Group's governing
bodies, its organizational
model and its involvement in
sustainability and climate
change policies.
Strategy and risk
management
Based on the
macroeconomic and
electricity industry context,
this chapter provides a
vision of the main strategic
objectives and the risks to
which the Company is
exposed, including the risks
associated with climate
change.
Business and
management 2023
This section focuses on the
description of the
Company's businesses and
its financial and
non-financial perormance
during the year, including
the details of financial and
sustainability management,
offering a holistic vision
consistent with the Group's
integrated and sustainable
business model.
Other corporate
information and Main
indicators
These sections present the
main sustainability indicators
(SASB) and personnel, as well
as other corporate
information of the Company,
required by the NCG
standard N°461 of the CMF.
BASIS OF
PRESENTATION
Reportability Overview
Enel Chile has been motivated to adopt the Core and More
reporting methodology, which aligns with the standards
upheld by Enel SpA, its parent company. Enel SpA has
applied the Integrated Annual Report as its principal
reporting instrument following the Chilean Financial
Market Commission's (CMF) General Standard No. 461.
This
document
outlines
how
the
organization
incorporates sustainability principles into its operational
management strategies, ultimately producing benefits
for its shareholders and stakeholders. Furthermore,
this reportability covers the Consolidated Financial
Statements, which have been prepared in adherence to
the International Financial Reporting Standards IFRS/IAS.
The Integrated Annual Report is built upon information
integrity and accountability principles. This statement
describes how the organization accomplishes this objective
by creating value for all stakeholders by integrating
operations, risk management, strategy, and governance.
The purpose of this document is to present information
sustainably and strategically while also highlighting the
outcomes of the sustainable and integrated business
model that has facilitated value generation in recent years
within the framework of the energy transition process.
The 2023 Integrated Annual Report of Enel Chile details the
outcomes of its sustainable business model. It contains
the most pertinent financial, sustainability, and qualitative
and quantitative data determined by a materiality
assessment, also considering all stakeholders' information
requirements and expectations.
It is important to highlight that the Company employs
the parameters of the SASB Sustainability Accounting
Standards Board's Sustainable Industry Classification
System® (SICS), ® IF-EU Electric Utilities and Power
Generators, version 2023, in compliance with NCG 461
of the CMF, when producing quantitative sustainability
information.
The 2023 Integrated Annual Report is divided into the
following main sections:
16
Integrated Annual Report Enel Chile 2023
17
CONNECTIVITY
MATRIX
Enel Chile's
Value Creation
and Business
Model
Governance
Strategic Actions
SDG
Generation
- Enel Chile’s Shareholders
- Corporate Governance System
- Management & Executive Team
- Remuneration of the Board of Directors
- Values and Ethical Pillars
1 Resilience, flexibility and
value creation
-Optimize the selective
allocation of capital,
strengthening resilience and
flexibility.
-Continue to develop
renewable capacity through
selective allocation of capital
and according to new
market conditions.
2 Efficiency and
Effectiveness
- Drive excellence, efficiency
and effective response of
the Company's assets.
3 Financial and
environmental sustainability
-Pursue value creation and
financial strength while
addressing climate
challenges.
-Strengthen the financial
position through sustainable
growth.
Distribution and
networks
Enel X
18
Integrated Annual Report Enel Chile 2023
The Enel Chile Group has devised a matrix illustrating information connectivity by displaying the relationships among strategic
objectives. These objectives also serve as a clear indication of the Company's contribution to reaching the United Nations
Sustainable Development Goals (SDGs), specifically the four fundamental objectives outlined in the Strategic Plan (SDG 7,
SDG 9, SDG 11, and SDG 13): governance, risks and opportunities, performance, and prospects for each line of business.
Risk Management
Performance
Future Prospects
Strategic Risks
- Legislative and
regulatory
development
- Macroeconomic and
geopolitical trends
- Strategic risks and
opportunities related
to climate change
Governance and culture
Financial
- Interest rate
- Exchange rate
- Commodities
- Credit & Counterparts
- Liquidity
Digital and Technology
- Cybersecurity
- Digitalization, IT
efficiencies, and service
continuity
Operational
- Health & Safety
- Environment
- Procurement, Logistics
& Supply Chain
- People & Organization
Compliance
- Protection of personal
data
- Antitrust regulation
Value Generated and Distributed
to Stakeholders
Generation Business
Operations:
> Net installed capacity
> Generated Energy
> Renewable installed capacity
> Energy sold
Performance
Innovation
Focus on People
The 2024-2026 Plan envisages an investment of US$ 2.3 billion over
the period in question. The Company's goal is to maintain its position
as a national leader in the electricity sector, with a particular emphasis
on increased renewable capacity, digitalization, and continued
promotion of new clean energy solutions. With this, it is expected to
increase the installed renewable capacity by approximately 1.5 GW by
2026 compared to 2022.
For the 2024-2026 triennium, the following are planned:
- Cumulative EBITDA of approximately US$4.2 billion to US$4.4 billion.
- Cumulative Capex of approximately US$ 2.3 billion.
- An approximate increase of 79% in total generation capacity.
- Potentially reaching 82% of emission-free production.
- Increase in electrification KPIs by more than 3.3 GWh compared to
2019.
Value Generated and Distributed
to Stakeholders
Distribution & Networks Business
Operations:
> End Users
> Distributed energy
> Energy losses
> SAIDI
> SAIFI
Performance
Innovation
Focus on People
Value Generated and Distributed
to Stakeholders
Enel X Business
Operations:
- Electric buses
- Charging points
- Heating replacement
- Electrification
- Demand Response
Innovation
Focus on People
19
20
Integrated Annual Report Enel Chile 2023
1.
ENEL CHILE GROUP
●Highlights
Main operational and financial indicators of the Company.
●Value creation model
Integrated presentation of how the Group converts available
resources into results and value for stakeholders, prioritizing
the achievement of Sustainable Development Goals (SDGs) 7,
9, 11 and 13.
●About Enel Chile
The Enel Chile Group is the most important electricity holding
company in the country, with operations in the generation,
distribution and networks segments and other businesses
related to the transformation and extension of the electricity
market.
21
Enel Chile Group
2 Governance
1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
HIGHLIGHTS
GENERATION BUSINESS
Net Installed
Capacity
+0.8%
8.5 GW
8.4 GW in 2022
Installed Capacity
of Renewable Sources(1)
+0.8%
77 %
76% in 2022
Hydroelectric
-0.8%
CCGT – Oil & Gas
-4.4%
Wind, solar and geothermal
+2.8%
-
41.4%
41.7% in 2022
Bateries (BESS)
0.4%
23.3 %
24.4% in 2022
Total energy
generated from
renewable sources
+28.0%
17.9 TWh
14.0 TWh in 2022
34.9%
33.9% in 2022
Total energy sold (2)
+0.5%
30.9 TWh
30.7 TWh in 2022
(1) Corresponds to Renewables + BESS (Batery Energy Storage System)
(2) Sales to free and regulated customers, do not include spot sales.
SCOPE 1
emissions
-34.9%
3.13 millions tCO2eq
4.81 millions tCO2eq in 2022
22
Integrated Annual Report Enel Chile 2023
DISTRIBUTION AND NETWORKS BUSINESS
Total energy
distributed (3)
+1.0%
14.4 TWh
14.2 TWh in 2022
Energy losses
+3.6%
Clients on the network
2.4%
SAIFI(7)
-1.6%
+11.9%
5.3 %
5.1% in 2022
Electric
Buses(4,5)
2,195 units
1,962 units in 2022
2.1 millions
2.1 millions in 2022
Charging
points(4,6)
+25.7%
2,139 units
1,701 units in 2022
1.25 #
1.27# in 2022
Demand
response(4)
+8.9%
10 MW
9 MW in 2022
-5.7%
E-Home
Services(4)
82 thousand
87 thousand in 2022
ENEL X
(3)
Energy distributed inside and outside the concession area.
(4)
Accumulated figures.
(5)
Considers electric buses supplied, managed and served by Enel X Chile.
(6)
Public and private charging points. Does not include charging points belonging to the related company Enel X Way Chile.
(7)
Values are subject to changes as a result of the approval process from the corresponding regulatory authority.
23
Enel Chile Group
2 Governance
1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
ASSETS LIABILITIES
Total
Assets
-0.3%
Ch$11,833,721
millions
Ch$7,072,835
millions
Ch$3.3
trillions
Ch$ 11,865,580 millions
in 2022
Total Liability
-5.4%
Ch$7,476,640 millions
in 2022
Net Financial Debt
6.5%
Ch$3.1 trillions
in 2022
RESULT
EBITDA
+124.9%
Ch$1,038,958
millions
Ch$ 1,174,203 millions
in 2022
Net result(1)
-26.4%
Ch$479,588
millions
Ch$ 651,374 millions
in 2022
INDICATORS
Liquidity
ratio
-10.6%
0.86 times
1.49 times
0.97 times in 2022
PEOPLE
Debt ratio
-12.8%
1.70 times in 2022
2,077 workers
24.8 %
Total
endowment
-3.8%
2,158 in 2022
Percentage
of women
+1.0%
24.6% in 2022
(1) Profits attributable to the parent company's owners. For comparison, the results for 2022 and 2023 have been adjusted to reflect extraordinary
operations that took place during those years. These operations involved the disposal of Enel Transmisión Chile S.A. in 2022 and Arcadia
Generación Solar S.A. in 2023.
24
Integrated Annual Report Enel Chile 2023
VALUE CREATION
MODEL
Value Creation Process
The integrated presentation of financial and sustainability
information makes it possible to effectively communicate
the business model and the value creation process, both
in terms of results and short, medium and long term
prospects. Managing environmental, social, and economic
aspects is becoming increasingly important in terms of
assessing the ability to create value for all stakeholders.
The following graphic summarizes Enel Chile Group's value
chain: the main inputs used and how they are transformed
into results and value created, thanks to the Company’s
work and its business model.
25
Enel Chile Group
2 Governance
1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
Value creation and business model
RESOURCES
Planet
3.04 million m3
Water consumed (80% Water extraction
in water stress areas)
People
People Enel Chile
2,077 Workers
25% Women in proportion to total workers
26% Women in management positions
Prosperity
Financial Community
3.3 trillion Net financial debt
23% Sustainable financing
Ch$4.8 trillion Total equity
Ch$6.9 trillion Property, plant and
equipment
Ch$195 billion Intangible Assets
Ch$637 billion Capital Expenditure (Capex) (*)
94% Capex of low carbon products and
services
Customers
2.1 million Distribution customers
353 thousand Smart meters
Suppliers
1,037 Suppliers with active contracts
46% Contracts awarded to SMEs
Communities
Creation of long-term shared value, with full
respect for human rights.
Partners
1 Innovation Hub Chile
Governance
PURPOSE
OPEN
POWER
FOR A
BRIGHTER
FUTURE.
WE EMPOWER
SUSTAINABLE
PROGRESS.
VALUES
Trust Proactivity
Strategic pillars
Value chain
(*) The Capex figure represents the effective payments made in 2023.
RI
SK
S A
ND
OP
PO
RT
UNI
TIE
S
principles
29% Of women on the Board of Directors
36 Complaints for alleged violations of the Code of Ethics
GENERATION
NET
INSTALLED
CAPACITY OF
RENEWABLE
ENERGY
77 %
INSTALLED
CAPACITY
8.5 GW
END USERS
2.1
million
DISTRIBUTION
NETWORK
17,883
km (MT/MT
Lines)
AM
BIE
NTE
EX
TER
NO
GR
OU
P P
ER
FO
RM
AN
CE
EXT
ER
NA
L E
NVI
RO
NM
EN
T
BUSINESS MODEL
26
Integrated Annual Report Enel Chile 2023
IS OPEN POWER
VISION
Open Power to
address some of
the world's greatest
challenges, through
an approach
that associates
sustainability with
maximum innovation.
MISSION
• Open access to electricity to
more people.
• Open the world of energy to
new technologies.
• Open to new uses of energy.
• Open to new ways of
managing energy for people.
• Open to new associations.
Planet
3.13 millon tCO2eq
Direct greenhouse gas emissions – Scope 1
Zero emissions commitment to 2040
People
45 Average training hours per worker
0.05 Accident rate
Prosperity
Financial Community
Ch$4.46 trillion Economic Value Distributed
by Enel Chile
Ch$227 billion Total taxes for the year
Ch$ 402 billion Dividends paid
Ch$4.38 trillion Total revenue
Ch$1.04 trillion EBITDA
Ch$633 billion Profit attributable to the
owners of the controlling company
Customers
14.3 TWh Distributed energy (**)
122 SAIDI minutes
2,195 Electric Bus Units
Suppliers
100% Qualified suppliers evaluated under
sustainability criteria
Communities
Collaboration with more than 250
communities and social organizations in
more than 60 municipalities
Partners
+100 Startups evaluated from all over Latin
America
Responsibility Innovation
RESULTS
1.
Optimize the selective
allocation of capital,
strengthening its
resilience and flexibility.
3.
Pursue value creation
and financial strength
while addressing climate
challenges.
2.
Drive excellence,
efficiency and effective
asset response.
VALUE CREATED FOR ENEL CHILE AND ITS
STAKEHOLDERS
(**) Energy distributed within the concession area.
PRODUCTS AND SERVICES
DISTRIBUTION
CHARGING POINTS
2.1 thousand
STR
ATE
GY
AN
D RI
SK
MA
NAG
EM
EN
T
GO
VER
NA
NC
E
27
Enel Chile Group
2 Governance
1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
Generación
Distribución
Customers on the
network
2.1 millions
Net installed capacity
throughout the country
8.5 GW
Subsidiaries
9
Workers
2,077
A unique and
integrated
company driven by
value generation,
leader in energy
electrification and
decarbonization in
Chile
PRESENCE
ABOUT
ENEL CHILE
The Enel Chile Group is the leading electricity conglomerate
in the country, involved in several aspects of the energy
industry, such as power generation, distribution, grids,
and other associated sectors that contribute to the
development and expansion of the electricity market.
The Company is a subsidiary of Enel SpA, a multinational
electricity company and a key participant in the global
energy, gas, and renewable energy sectors. Enel SpA
operates in over 30 countries.
28
Integrated Annual Report Enel Chile 2023
Scale from 0 to 100
2019 2020
2021
2022
2023
2019 2020
2021
2022
2023
2019 2020
2021
2022
2023
84
88
88
88
86
2021 2022 2023
Scale from D- to A
Scale from C- to A+
A-
B
A-
AA
AA
AA
AA
Scale from CCC to AAA
Scale from 0 to 5
4.6
4.4
4.5
Scale from 0 to 100
Scale from 0 to 100
A
3.4
3.2
68
68
57
54
49
B-
B-
B-
C
B
88
89
83
77
72
1. As of February 13, 2024
2019 2020
2021
2022
2023
2019 2020
2021
2022
2023
2019 2020
2021
2022
2023
Top Sustainability Ratings
Analysts
and
rating
agencies
employ
various
methodologies to evaluate Enel Chile's environmental,
social, and governance performance. The assessments,
carried out by independent third parties, are a strategic
instrument
for
investors
to
identify
opportunities
and threats associated with sustainability. They assist
stakeholders in formulating both active and passive
investment strategies that promote sustainability. The
Company consolidated its leadership position in 2023.
• Dow Jones Sustainability Index (DJSI): Since 2020,
Enel Chile has been a leader in the Chilean electricity
sector industry in three Dow Jones Sustainability Index
categories: Emerging Market, Pacific Alliance Integrated
Market (MILA), and Chile. The Company, with a total of 86
points, ranks fifth in the electrical industry among more
than 250 companies evaluated worldwide.
• SUSTAINABILITY YEARBOOK 2024: Enel Chile was
affirmed in the S&P Global Sustainability Yearbook 2024
and distinguished in the top 5% category of the best
score, ranking among the most sustainable companies
in its industry globally.
• FTSE4
GOOD:
The
London
Stock
Exchange's
Sustainability
Index
ranks
the
best-performing
companies based on their accomplishments in areas
such as climate change, governance, respect for human
rights, and anti-corruption measures. Enel Chile has
been included in this ranking since 2018 in the Emerging
Markets and Latin America categories, scoring 4.5 out
of 5.
• MSCI Sustainability Indexes: These indexes seek
to generate common perspectives in relation to
investments in companies with responsible business
practices and serve as a benchmark for investors
regarding the performance of the companies. Enel Chile
29
Enel Chile Group
2 Governance
1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
has been categorized as an AA (out of a maximum AAA)
contributor to the sustainability stock market indices
provided by this organization since 2020. The Company
has maintained this ranking through 2023.
• ISS ESG: Enel Chile has been highlighted among the
best-performing companies among the 130 companies
in the electricity sector worldwide by ISS ESG Corporate
Rating, receiving the PRIME company rating for its
sustainability performance. This recognition is the
result of the good results obtained in a very demanding
evaluation carried out by ISS through more than 100
questions based on public information. It reflects that
Enel Chile's integrated business model meets the
requirements demanded in terms of sustainability
performance.
• Refinitiv: The Refinitiv score assesses the Company's
sustainability efforts using verifiable data from the public
domain. It gathers and calculates over 630 measures,
with a subset of 186 of the most comparable and
relevant to the business, driving the overall evaluation
and scoring process. Enel Chile received an 88-point
rating in the 2023 subset metric evaluation.
• Refinitiv D&I: Enel Chile was included for the first time
in the Refinitiv Diversity and Inclusion Index, which
examines over 15,000 listed businesses worldwide and
recognizes the TOP 100 through 24 measures in four
pillars: diversity, inclusion, employee development, and
corporate news.
• Moody’s ESG Solutions: This year, the Company
increased 11 points to 68 points in this assessment with
a "best in class" approach.
• Bloomberg Gender Equality: Enel Chile was confirmed
for the second consecutive year in the Bloomberg
Gender-Equality Index (GEI) 2023, created to evaluate
the diversity and inclusion performance of publicly
traded companies worldwide, with a score 7% higher
than the average of the companies that comprise it.
• Carbon Disclosure Project (CDP): Enel Chile was
awarded an A-level recognition by CDP in recognition of
its third year of voluntary reporting on the impacts of
climate change. CDP, an internationally renowned non-
profit organization, employs its disclosure framework
to assess climate change mitigation endeavors and
designate scores ranging from A to D.
• Grand Prix Alas20: Enel Chile was again honored with
Alas20's highest distinction, the Alas20 Company Grand
Prix. This is the most important category to which a
company can aspire in Alas20, as it is only awarded to a
Latin American company that demonstrates leadership,
consistency, and excellence in publicly disclosing
information about its Investor Relations and Sustainable
Development practices.
• Second Diagnosis on Business and Human Rights in
Chile: The Corporate Sustainability Program of the Law
Faculty of Universidad Catolica collaborated with the
World Benchmarking Alliance (WBA) on this project.
The study includes all 29 companies listed on the IPSA.
The maximum score that companies could receive was
24 points. Enel Chile scored 19 points for identifying,
monitoring, and mitigating social impacts.
30
Integrated Annual Report Enel Chile 2023
31
Enel Chile Group
2 Governance
1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
32
Integrated Annual Report Enel Chile 2023
2.
GOVERNANCE
●Corporate governance
The Corporate Governance structure of Enel Chile is a
fundamental element to ensure efficient and successful
management. In addition, it is a mechanism for supervising
the operations carried out by the Company, with the objective
of generating value for both its shareholders and interested
parties.
●Values and ethical pillars
Enel Chile, as a leader in the energy sector, establishes
standards and codes of conduct that govern the behavior
of all its members in their relationships with shareholders,
employees, suppliers, clients, creditors and authorities.
●Human rights
Respect for human rights is part of the very foundation of
sustainable progress.
33
Governance
2 Governance
1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
SHAREHOLDERS
Shareholder Name or Company Name
Number of shares
% Participation
Enel SpA (1)
44,907,055,101
64.93%
Pension Fund Managers (AFPs)
4,225,260,951
6.11%
Foreign Investment Funds
12,157,966,748
17.58%
Stockbrokers, Insurance Companies and Mutual Funds
4,032,441,145
5.83%
Citibank N.A., according to Circular No. 1.375 of the S.V.S. (ADS)(2)
2,945,093,323
4.26%
Other 5,898 shareholders
898,739,951
1.30%
Total shares outstanding
69,166,557,219
100%
Remaining Exchange Shares
1
Total shares
69,166,557,220
100%
(1) Enel SpA's stake in Enel Chile includes 11,457,799 ADSs or the equivalent of 572,889,950 shares.
(2) S.V.S., now the Financial Market Commission, CMF (Comisión para el Mercado Financiero).
Shareholders
5,959
Ownership and Control Structure
As of December 31, 2023, the
Company's
total
capital
was
3,882,103,470,184.
This
capital
comprises 69,166,557,220 ordinary
shares, all nominal, of the same
series and without par value. Each
share represents a voting right. The
State has no priority shares.
Article Five Bis of the Bylaws
stipulates that an individual may
not hold more than 65% of the
Company’s voting capital directly or
through other related persons. Any
ownership exceeding this threshold
would lead to a concentration factor
of 0.6%, as permitted by law.
Minority shareholders must own a
minimum of 10% of the voting stock.
At least 15% of the voting capital
must be subscribed to by over
100 unrelated shareholders, each
owning a minimum equivalent of
100 Unidades de Fomento (Chilean
financial units) in shares based on
the most recent balance sheet
valuation. Minority shareholders and
related individuals will be identified
following the current legislation.
At the end of the 2023 financial
year, the Company had 5,959
shareholders
who
had
fully
subscribed
and
paid
for
the
complete number of shares, with
ownership distributed accordingly:
34
Integrated Annual Report Enel Chile 2023
SHAREHOLDERS OF ENEL CHILE
Enel SpA
Institutional Investors
ADR´s
Pensión Funds
Others shareholders
64.9%
23.4%
1.3%
6.1%
4.3%
Market capitalization as of
December 31, 2023 amounted to
US$ 4.5 bn
Twelve largest shareholders
Name or Company Name
Tax ID number
Number of Shares
Participation
Enel SpA (1)
59.243.980-8
44,907,055,101
64.93%
Citibank N.A. according to circular 1375 S.V.S.
59.135.290-3
3,032,504,673
4.38%
Banco de Chile, on behalf of State Street
97.004.000-5
3,056,652,111
4.42%
Banco de Chile on behalf of Non-Resident Third Parties
97.004.000-5
2,436,419,336
3.52%
Banco Santander, on behalf of Foreign Investors Extranjeros
97.036.000-K
2,354,146,084
3.40%
Banco de Chile, on behalf of Citi NA New York clients
97.004.000-5
1,227,222,074
1.77%
Banco de Chile, on behalf of Citi NA London clients
97.004.000-5
1,092,949,102
1.58%
Banco Santander Chile
97.036.000-K
837,933,165
1.21%
AFP Habitat S.A. Pension Fund C
98.000.100-8
748,089,984
1.08%
Banchile Corredores de Bolsa S.A.
96.571.220-8
636,148,826
0.92%
AFP Capital S.A. Pension Fund C
98.000.000-1
582,561,754
0.84%
AFP Provida S.A. Pension Fund C
76.265.736-8
487,202,899
0.70%
Subtotal 12 largest shareholders
61,398,885,109
88.77%
Other 5,947 shareholders (2)
7,767,672,110
11.23%
Total 5.959 shareholders
69,166,557,219
100%
(1) The participation of Enel SpA in Enel Chile S.A. considers 11,457,799 ADS or the equivalent of 572,889,950 shares.
(2) There are no shareholders who belong to founding families of the Company, nor are the Government or state entities that hold shares of the
Company that exceed 5% of their ownership.
Majority Shareholders
As of December 31, 2023, there were no shareholders
other than the controlling shareholder individually holding
10% or more of the stock Company’s stock or voting
capital, nor who on their own, or in a joint action covenant
with other shareholders, may appoint at least one member
of the Company's Board of Directors or management.
35
Governance
2 Governance
1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
INVESTORS
Institutional Investors
Retail Investors
Ministero dell’Economía e delle Finanze
58.6%
17.8%
23.6%
Controller Identification
Enel Chile is a public limited company directly controlled by Enel S.p.A., an Italian joint-stock company, which, as of December
31, 2023, held 64.93% of the shares issued by the Company.
Enel SpA Shareholders Structure
36
Integrated Annual Report Enel Chile 2023
Name of Company name
Tax ID
No. shares on
31-12-2023
No. shares on
31-12-2022
Variation in
percentage points
Banco de Chile on behalf of Non-Resident Third Parties
97.004.000-5
3,490,443,501
2,436,419,336
(0.01524)
Citibank n.a. according to circular 1375 S.V.S.
59.135.290-3
3,405,723,123
3,605,394,623
0.00289
Banco de Chile, on behalf of State Street
97.004.000-5
3,270,880,832
3,056,652,111
(0.00310)
Banco Santander, on behalf of foreign investors
97.036.000-K
1,951,285,275
2,354,146,084
0.00582
AFP Habitat S.A.
98.000.100-8
1,302,882,606
1,141,378,143
(0.00234)
AFP Capital S.A.
98.000.000-1
1,236,968,071
1,105,129,214
(0.00191)
AFP Provida S.A.
76.265.736-8
1,207,122,258
753,480,437
(0.00656)
Banco de Chile, on behalf of Citi NA New York Clients
97.004.000-5
703,433,621
1,227,222,074
0.00757
Banchile Corredora de Bolsa S.A.
96.571.220-8
692,756,849
636,148,826
(0.00082)
BNP Paribas Securities Services Sociedad Fiduciari
59.239.230-5
537,345,108
86,775,575
(0.00651)
Banco Santander Chile
97.036.000-K
525,105,105
837,933,165
0.00452
Larrain Vial S.A. Corredora de Bolsa
80.537.000-9
490,061,048
340,617,122
(0.00216)
1 The Articles of Association do not require the CEO or the principal executives to hold securities issued by Enel Chile S.A.
Joint Action Covenants
At the end of the financial year, the controller members did not have an agreement to act jointly.
Major changes to ownership
The most significant changes that occurred in the 2023 financial year are as follows:
Ownership in the Company of Directors and Chief Executive Officers
According to the shareholder register as of December
31, 2023, none of the current directors or principal
executives had any ownership of the Company, either
directly or indirectly1. Furthermore, from January 1, 2023,
to December 31, 2023, none of the current directors and
senior executives traded Enel Chile S.A. shares.
Related Persons’ Stock Market Transactions
In 2023, there were no stock market transactions of related persons.
37
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3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
Enel S.p.A's Corporate Governance system
complies with the principles set out in the
Corporate Governance Code of the Milan
Stock Exchange, reflected in the Enel
Group's Corporate Governance Guidelines
and the Recommendations on Corporate
Governance of the Enel Group's Listed
Companies.
2 Consider the indications of sustainability analysts and evaluators, such as S&P Global, MSCI, among others.
ENEL CHILE'S
CORPORATE
GOVERNANCE
SYSTEM
Governance Framework
Enel Chile's corporate governance system is primarily
focused on the long-term goal of creating value for
shareholders, being aware of the social relevance of the
activities to which the Enel Chile Group is committed,
and the need to adequately consider all of the interests
involved in their development, as well as the Company's
financial sustainability.
Enel Chile does not directly adhere to a National or
International Code of Corporate Governance. However,
in line with its parent company, it has implemented
Corporate Governance Guidelines, which, among other
aspects, establish the general governance principles.
This document specifies the guidelines for implementing
it uniformly in all its subsidiary companies. The
recommendations contained therein follow international2
best practices and are inspired by the principles of
transparency and fairness.
The Corporate Governance Guidelines recognize the
benefits of the Company's coordination and ensure
due respect for the legal independence of subsidiary
companies within a framework designed to adequately
protect each of its corporate interests and the rights of
its stakeholders. All of this considers transactions with
related parties and any conflicts of interest. Furthermore,
procedures and rules of conduct are designed to
guarantee strict compliance with the directors' duty of
loyalty to Enel Chile's enterprises and to avoid any situation
that could jeopardize such compliance.
38
Integrated Annual Report Enel Chile 2023
Ethics and integrity are
Enel Chile’s core values.
• Enel Chile has a Code of Ethics made up of the general principles on relations with
stakeholders, which abstractly define the reference values in the Company's activities by
the criteria of conduct towards each class of stakeholders, which specifically provide the
guidelines and standards that the Company's people must respect to prevent the risk of
unethical behavior; and by the mechanisms of These are the tools used to describe the
Control System for compliance with the Code of Ethics and its continuous improvement.
• The Company and its Code of Ethics have implemented a Human Rights Policy. The Code
of Ethics and the Human Rights Policy establish, among other things, principles3 aimed
at creating an atmosphere free of barriers that might hinder the diversity of capabilities,
visions, characteristics, and conditions within the Company. To achieve this, training and
internal communication efforts are carried out regularly. A legal firm was commissioned
in 2023 to provide an evaluation report on the detection and implementation of potential
modifications or areas for improving the Board of Directors' performance, including
identifying organizational, social, and cultural barriers.
• The Board of Directors has established a Permanent Training Procedure to discover and
minimize impediments to the plurality of visions within the organization and the option to
hire consultants. Furthermore, the Board of Directors combines different visions through its
frequent meetings with the Company's many entities, which cover a wide range of subjects.
On the other hand, the Board of Directors investigates complaints received through the
Ethics Channel semi-annually, including those alleging violations of the principle of non-
discrimination.
Evaluation and
integration of
sustainability issue
management
Enel Chile pursues sustainable success by focusing its strategy on the values of the corporate
purpose, "Open Power for a brighter future." Aware of the urgency of the climate crisis,
the Enel Chile Group has adopted a Corporate Governance System that is functional to the
development of its business model and a strategy based on sharing value creation with its
shareholders and all relevant stakeholders, placing sustainability at the heart of its corporate
culture. This system monitors explicitly the integration of sustainability into corporate strategies
in relation to the different phases: (i) analysis of the sustainability context, (ii) materiality analysis,
(iii) sustainability planning, (iv) implementation of specific actions to support the sustainable
business model; (v) sustainability disclosure and related performance management; and (vi)
review of sustainability ratings and indices. All phases of this process are based on respect for
human rights as a fundamental element in the search for sustainable success.
3 The general principles of the Code of Ethics and Human Rights Policy are inspired by the 1948 United Nations Universal Declaration of Human Rights, the 1950
European Convention on Human Rights, and the fundamental conventions of the International Labour Organization (ILO), among others.
39
Governance
2 Governance
1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
4 Article 31 of Law No. 18046 deals with the administration of public limited companies.
Shareholders’ Meeting
Board of Directors
Audit
Sustainability
Transactions with related
paries
Director´s Commite
External Audit Firm
KPMG Ltda
7 members
3 members
Governance Structure
As established by the Articles of Association the Company
is managed by a Board of Directors4 composed of seven
members –who may or may not be shareholders– all
nominated by the Ordinary Shareholders' Meeting and
who may be re-elected. No provision regarding the
appointment of alternate directors is provided. Similarly,
it is stipulated that the organization shall employ a CEO,
designated by the Board of Directors, equipped with all the
powers vested in commercial aspects and any authority
explicitly delegated by the Board of Directors. This role is
incompatible with the responsibilities of the Company's
Chairman, Director, Auditor, or Accountant.
40
Integrated Annual Report Enel Chile 2023
Shareholders’ Meeting
The corporation is entrusted with various responsibilities,
including but not limited to determining the compensation
of directors, electing the risk rating agencies of external
audit firms, authorizing financial statements and benefit
distributions, facilitating the purchase and sale of shares,
amending the articles of association, approving mergers
and spin-offs, and producing shares.
Shareholders meet in ordinary and extraordinary meetings.
The first ones are conducted annually, within a four-month
period subsequent to the months in which the balance
sheet is published. The latter may be conducted whenever
the Company to make decisions on matters prescribed by
law or the Articles of Association.
2023 Annual Ordinary Shareholders' Meeting
The Annual Ordinary Shareholders' Meeting of Enel Chile
on April 26, 2023, had a quorum of 91.49%. The Meeting
was held remotely using a virtual platform, DCV Electronic
Voting Service (Central Securities Depository Service),
supplied by DCV Registros, also Enel Chile's Shareholders
Registry manager.
2023 Extraordinary Shareholders' Meeting
The Meeting was held on April 26, 2023, following the
Ordinary Shareholders' Meeting, which had the following
objectives:
• To amend the Articles of Association of Enel Chile S.A.,
namely Article Four relating to the corporate objective,
to authorize the provision of services to third parties;
• To grant and approve a revised text of the Company's
Articles of Association incorporating the amendment as
mentioned above and
• To adopt the necessary resolutions to carry out the
proposed statutory reform under the terms and
conditions that the Board ultimately should approve and
to grant the powers deemed necessary, especially those
to legalize, materialize, and carry out the resolutions
adopted by said Board.
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Governance
2 Governance
1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
BOARD OF DIRECTORS
Under the regulations outlined in Articles 32 and 56 of
Law No. 18,046 on Corporations, as well as Article 20 of
the Bylaws, the Ordinary Shareholders' Meeting held on
April 28, 2021, was responsible for replacing in full the
Board of Directors, appointed for a three-year term. At the
Board of Directors meeting held on April 28th, Mr. Herman
Chadwick Piñera was nominated as the Chairman of the
entity and the Company. Mr. Domingo Valdés Prieto was
put forward as the Secretary. The Board of Directors must
undergo a comprehensive renewal or re-election process
during the Ordinary Shareholders' Meeting in April 2024,
as their 3-year term will have ended by then.
In accordance with current legislation, none of the
directors simultaneously hold executive positions in the
Company.
Board of Directors
CHAIRMAN OF THE BOARD(*)
Herman Chadwick Piñera
BOARD MEMBERS
Isabella Alessio
Monica Girardi
Salvatore Bernabei
Pablo Cabrera Gaete(**)
Fernán Gazmuri Plaza(**)
Gonzalo Palacios Vásquez(**)
SECRETARY OF THE BOARD OF DIRECTORS
Domingo Valdés Prieto
External Audit Firm
KPMG Ltda
(*)The chairman of the Board may not be a member of the Director´s Commitee or any
of its subcommitees unless he or she is an independent board member.
(**) Independent.
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Integrated Annual Report Enel Chile 2023
As per Article 16 of the Articles of Association, the
directors' salary is established each year by the ordinary
shareholders' meeting. The Chairman's remuneration is
twice the amount received by each director. Hence, there
is no distinction in salaries between male and female
members of the Board of Directors, as all directors are
entitled explicitly to equal compensation regardless of
gender or any other categorization, save for the role of
the Board's Chairman. The Company does not appoint
alternate directors, and none of its members have
disabilities.
GENDER
AGE
NACIONALITY
SENIORITY
29%
43%
57%
71%
women 2 I 5 men
Italian
Chilean
Less than 3 years
Between 3 and 6 years
41 - 70 I 3
< 70 I 4
Board Diversity
3
4
43%
57%
3
4
43%
57%
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1 Enel Chile Group
3 Strategy and Risk
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4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
Independent Directors
Chilean Law Guidance
The guidelines for identifying directors not
considered independent are specified in Article 50
bis of Law No. 18,046 on Corporations. It is possible
that the Corporations Regulations or the Financial
Market Commission may establish additional criteria.
Based on the information provided, individuals who
have experienced any of the following circumstances
in the past eighteen months are not eligible for
independence:
1. Those who have maintained any economic,
professional, credit, or commercial link, interest, or
dependence of relevant nature and volume with the
Company, the Groups' other subsidiaries of which
it is a part, its controller, or the principal executives
of any of them, or who have held positions as
directors, managers, administrators, principal
executives, or advisors of these entities.
2. Those who have maintained a kinship relationship
up to the second degree of consanguinity or
affinity with the persons indicated in the preceding
number.
3. Those who have been directors, managers,
administrators, or senior executives of nonprofit
organizations that have received relevant
contributions, aid, or donations from the persons
listed in number 1.
4. Those who have been partners or shareholders
who have owned or controlled, directly or indirectly,
10% or more of the capital; Directors; managers;
administrators or principal executives of entities
that have provided legal or consulting services for
relevant amounts, or external audit, to the persons
indicated in number 1).
5. Those who have been partners or shareholders
who have owned or controlled, directly or
indirectly, 10% or more of the capital; Directors;
managers; administrators or principal executives
of the Company's main competitors, suppliers, or
customers.
Under these criteria, the independent directors of
Enel Chile are Mr. Pablo Cabrera Gaete, Mr. Fernán
Gazmuri Plaza, and Mr. Gonzalo Palacios Vásquez.
Director
Herman Chadwick Piñera
Isabella Alessio
Monica Girardi
Salvatore Bernabei
Pablo Cabrera Gaete
Fernán Gazmuri Plaza
Gonzalo Palacios Vásquez
Environmental
issues
and climate
change
Energy
Sector
Electrical
regulation
IT, Information
Security and
cybersecurity
Audit and risk
management
Finance
Corporate
Governance
Board of Directors’ Experience Matrix
The Board of Directors has the combination of experiences and skills that allow it to manage and govern the Company
correctly.
44
Integrated Annual Report Enel Chile 2023
Role, responsibilities, and operations of
the Board of Directors
The Board of Directors
plays a central role in
corporate governance.
• Under the provisions of the Articles of Association, the board it is the corporate body
responsible for the Company’s management. It is composed of seven eligible members, who
may or may not be shareholders of the Company. All candidates for the Board of Directors
are proposed and elected individually by the ordinary meeting of shareholders and will last a
period of three years, at the end of which they must be completely renewed or re-elected.
• According to Law No. 18,046 on Corporations and the Company's Bylaws, the Board of
Directors has the broadest powers for the ordinary and extraordinary management of the
Company, including the authority to carry out all acts necessary to accomplish the corporate
purpose.
• The Board of Directors plays a crucial role in corporate governance as it exercises managerial
authority and strategic control over the organization. The framework in which the evaluation
and approval process takes place encompasses the corporate strategy, which comprises
the Investment and Business Plan. The Investment Plan integrates objectives related to
energy transition, climate change mitigation, and decision-making in human rights affairs.
The assessment of critical concerns that contribute to creating long-term shareholder value
is also considered.
• The Board of Directors serves as the primary governing body responsible for overseeing
the identification, evaluation, management, mitigation, monitoring, and communication of
risks. This includes any risks that might affect the Company's long-term sustainability, in
accordance with the current Risk Control and Management Policy, evaluating the level of
compatibility between these risks and the established strategic objectives.
International Guideline
In accordance with the criteria established by the Dow
Jones Sustainability Index, the company is considered
a director of the Dow Jones Sustainability Index.
• The director must not have been employed by the
company in an executive capacity for the past five
years.
• The director must not be a “family member of
an individual who has worked, or during the past
three years was employed by the company or by a
parent or subsidiary of the company as an executive
officer.”
• The director must not be (and must not be related
to a company that is) an advisor or consultant to
the company or a member of the company's senior
management.
• The director must not be related to a significant
customer or supplier of the company.
• The director must not be related to a non-profit
entity that receives significant contributions from
the company.
• The director must not have been a partner or
employee of the company's external auditor during
the last three years.
• The director must not have any other conflict of
interest that the board of directors itself determines
that cannot be considered independent.
Under these criteria, Messrs. Fernán Gazmuri Plaza,
Pablo Cabrera Gaete and Gonzalo Palacios Vásquez
are independent directors.
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3 Strategy and Risk
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4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
Board of Directors Meetings
The Board of Directors
meets with the Risk area
once every quarter
• Risk control and management are integral components of Corporate Governance systems.
Risk must be regarded as an additional component of strategic plans for this to be effective.
• The Board of Directors meets quarterly with the Risk Control management and throughout
the period they review, among others, the main strategic risks, the main sources of risks
and methodologies for their detection, as well as the probability of occurrence of the most
relevant risks and their consequences. effects on operations and financial results. Likewise,
the recommendations and improvements that, in the opinion of the unit, would be pertinent
to make to better manage the Company's risks are analyzed, as well as the contingency
plans designed to react to the materialization of critical events, including the continuity of
the Board of Directors in crisis situations. In the meetings that the Board of Directors holds
with the Risk Control management, the presence of the Company's general manager is
expected. The Board monitors and controls risks, including emerging risks, that may affect
future results.
• The main strategic risks for the 2023 period were presented to the Board at the March 29,
2023, meeting. One of their goals was to evaluate and obtain a comprehensive view of current
risk management processes. Given the close alignment of the Company's purpose with the
energy transition process and the impact of climate change, these issues are addressed in
the Board's reviews and risk assessments. The principal strategic risks in the Risk Map and
mitigation actions were discussed at sessions held on June 27, September 27, and December
19. The Company's CEO attended all of these meetings.
Meetings with the risk area
• It plays a role in approving corporate policies, ratifying the Audit Plan based on a structured
analysis process, and identifying the main risks.
• The Board oversees critical issues associated with sustainability performance in areas of a)
environment, such as climate change, biodiversity, and deforestation; b) social, such as safety,
health, well-being, diversity and inclusion, human rights, and workforce development; and c)
governance, such as business relationships, supplier management, ethical framework, free
competition, etc. In addition, it delegates to the Committee of Directors – constituted mainly
by independents - the function of overseeing the main issues of sustainability together with
the management of this area, through the presentation quarterly results.
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Integrated Annual Report Enel Chile 2023
Meetings with the Internal audit area
The Board of Directors
meets at least once per
quarter with the Internal
Audit area
• The Board of Directors meets, at least quarterly, with the Internal Audit area to analyze (i) the
annual audit program or plan; (ii) any serious deficiencies that have been detected and those
irregular situations that, by their nature, must be reported to the competent supervisory
bodies or the Public Prosecutor's Office; (iii) the recommendations and improvements that,
in its opinion, would be appropriate to make to minimize the number of irregularities or
cases of fraud; and (iv) the effectiveness of the crime prevention model implemented by
the Company, giving an account of the management of the Crime Prevention Officer and
explaining the activities carried out and those that will be carried out in the forthcoming
months. The CEO is expected to attend meetings held by the Company's Board of Directors
or the Internal Audit department.
• The main issues addressed in the 2023 meetings were: (i) at the extraordinary meeting of 28
February, the outcome of the 2022 Internal Audit Plan for Enel Chile and subsidiaries, and
the activities carried out to that end and the 2023 internal audit plan were presented to the
Board of directors; (ii) in the ordinary meetings of 29 March, 27 June, 27 September and 19
December, the follow-up to the action plans determined as a result of the internal audits, the
internal audit matters included in corporate governance practices adopted by the Company
(NCG No.461) and the management account of the Company's Crime Prevention Officer
was presented; and (iii) at the 27 June meeting, the updates to the Criminal Risk Prevention
Model, which incorporates issues associated with the Law No.21.459 on Computer Crimes
that place the criminal responsibility of the legal person, were introduced.
The Board of Directors
meets with the External
Auditors once every
quarter.
• The Board of Directors meets quarterly with the External Auditors. The CEO is expected to
attend Board of Directors meetings, where issues such as the external audit program and
its results, any differences discovered in the audit with respect to accounting practices,
administrative systems, and internal auditing are discussed, as well as potential conflicts of
interest.
• The main issues discussed at the 2023 sessions were the following: (i) the Company's external
audit program or plan; (ii) any differences detected in the external audit with respect to
accounting practices, administrative systems, and internal audit; (iii) any serious deficiencies
that have been detected and those irregular situations that, by their nature, must be reported
to the competent audit bodies; (iv) the results of the annual external audit program; and (v)
possible conflicts of interest that may exist in the relationship with the external audit firm
or its staff, both for the provision of other services to the Company or the companies in its
business group, as well as for other situations.
Meeting with the external audit firm
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1 Enel Chile Group
3 Strategy and Risk
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4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
Meetings with sustainability management
The Board of
Directors meets with
Sustainability area at
least once every quarter.
• Enel Chile adopted the practice of holding meetings with the Sustainability area at least
quarterly. To comply with this, the Sustainability Department reports quarterly to the Board
of Directors the results of the different business indicators used to measure sustainability
performance, identified in accordance with the three-year Sustainability Plan, as well as the
acceptance of public information based on Enel Chile's position in the different sustainability
indices and classifications, such as DJSI, MSCI, FTSE4Good, and Sustainalytics, among others.
The CEO is expected to attend meetings the Company's Board of Directors holds with the
Sustainability Management.
• In 2023, the following issues were reviewed:
– The effectiveness of the policies approved by the Board of Directors to disseminate the
benefits of diversity and inclusion for society within the Company, its shareholders, and
the general public.
– The organizational, social, or cultural barriers detected that may be inhibiting the natural
diversity that would have occurred in the absence of those barriers.
– The usefulness and acceptance of the sustainability reports disseminated to the
Company’s relevant stakeholders.
– Policies adopted by the Company in social responsibility and sustainable development.
– Stakeholder groups identified by the Company as relevant, as well as why such groups
hold that status.
– Relevant corporate risks, including sustainability risks, as well as the primary sources of
those risks.
– The indicators measured by the Company in terms of Social Responsibility and sustainable
development.
– The existence of targets and the evolution of sustainability indicators.
Monitoring climate change risks
The
Enel
Group's
"Climate
Change
Risks
and
Opportunities" policy defines a shared approach to
integrating issues related to climate change and the
energy transition process into the Group's processes and
activities, thus informing industrial and strategic decisions
to improve business resilience and long-term sustainable
value creation in line with the adaptation and mitigation
strategy. The main stages considered in the policy are
described below:
– Prioritizing phenomena and analyzing scenarios.
These operations include identifying physical and
transition phenomena relevant to the Group and,
as a result, preparing the scenarios to be explored,
which are created through data analysis and
processing from both internal and external sources.
For the phenomena thus identified, functions can
be designed to connect the scenarios (e.g., data on
changes in renewable sources) with the Company's
operation (e.g., changes in expected potential
production).
– Impact assessment. It includes all the analyses and
activities necessary to quantify the effects at the
operational, economic, and financial levels, in line
with the processes in which they are integrated (e.g.,
design of new buildings, evaluation of operating
performance, etc.).
– Operational and strategic actions. The information
obtained from the above activities is integrated
into the processes, informing the Group's decisions
and business activities. Examples of activities and
processes that benefit from this include capital
allocation, such as evaluating investments in existing
assets or new projects, developing resilience
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Integrated Annual Report Enel Chile 2023
plans, risk management and financing activities,
engineering, and business development.
In this vein, the Board of Directors of Enel Chile assessed
the implementation of this policy within the Company and
its subsidiaries, reaching the determination to establish
regular monitoring and control procedures for climate
change risks and other pertinent concerns. As stated,
risk and sustainability meetings were conducted in 2023
to provide the Board of Directors with updates on the
primary climate change risks and indicators. Moreover,
the organization's CEO offers a monthly summary
and management report detailing scenarios and risks
pertaining to climate change, including the water crisis.
Monitoring and controlling issues relevant to stakeholders
The Board of Directors establishes the framework to initiate
and maintain stakeholder interactions. The Company
places stakeholders at the heart of its sustainable business
model and has developed a system to identify and
prioritize the issues that are important to such groups.
The Board's regular evaluation of sustainability initiatives
reflects the Company's commitment to advancing the
energy transition. These material subjects include health
and safety, risks and opportunities related to the effects
of climate change, and furthering the Company's diversity
and inclusion goal.
Every year, Enel Chile conducts a materiality analysis
applied at different stages to the main stakeholders
identified, detailed in the Stakeholders and Materiality
section of this Integrated Annual Report.
As an integral component of the oversight and regulation
procedure pertaining to matters of significance to
stakeholders, the Manual for the Management of
Information of Interest to the Market was revised in May
2023 to align with regulatory developments in that area.
Monitoring social issues
According to Enel Chile's Code of Ethics, equal
opportunities and the lack of arbitrary discrimination in
human resource management are pursued. The Company
values each person for their distinctive contribution. In
the domain of people management and development
processes, as in the selection phase, people are evaluated
in a broad sense, involving those in charge, the People and
Organization department, and, where possible, subjects
who have had a relationship with the evaluated person.
The Board of Directors monitors the management of
practices in these matters and, to this end, approved
the Diversity and Inclusion Policy and the Human Rights
Policy. Key indicators have been defined in this area and are
reflected in the report that the sustainability department
reports quarterly to the Board of Directors. The report
includes indicators of gender inclusion and disability.
Regarding identifying new talent, the Board of Directors
agreed to implement training programs managed by the
People and Organization Management to detect and train
new talents that have emerged among the Company's
professionals. The objective is to develop Enel Chile's
professionals' skills, knowledge, and experiences and
promote future leadership.
In 2023, the Board of Directors met quarterly to discuss
Sustainability, Investor Relations, and Internal Audit,
as indicated in this section. Furthermore, the Board of
Directors semi-annually reviews the complaints received
through the Ethics Channel, their treatment, and the
procedures in place. It should be mentioned that the
Chairman of the Board of Directors has the authority to
call for an extraordinary meeting of the body if he believes
the complaint justifies it.
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1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
Meetings with
management
• The Induction Procedure also includes a series of meetings with the Chairman of the Board
of Directors and the different departments in which the business and the most relevant issues
of each department are explained. At such meetings, the new director may raise concerns
and request more information if necessary.
Directors' Duty of Care
and Confidentiality
• Directors are informed of their duties and receive Law No. 18,046 on Corporations and its
Regulations, as well as internal documents outlining their legal responsibilities in public
corporations. The most significant rulings, sanctions, or declarations are also included in the
material required under the Induction Procedure for New Directors. The Board of Directors
has defined the concept of conflict of interest following the Manual for the Management of
Information of Interest to the Market and the Code of Ethics. The Board of Directors considers
current legal legislation and the Financial Market Commission's regulations. The Induction
Procedure for New Directors addresses the subject of managing conflicts of interest.
5 This Procedure is reviewed at least annually to ensure that its terms and procedures are consistent with the objectives and responsibilities of the Board.
Documents directors are
provided with
• The documentation contains business-related issues, strategies, and risks the Company
faces. This allows the new director to understand the Company comprehensively rather than
just the most relevant information.
• Directors have access, among other documents, to the Articles of Association, minutes
of the meetings of the Board of Directors and the Directors’ Committee, in the case of
members of said committee, minutes of the shareholders' meetings for the last two years;
Significant Events, Sustainability Reports, Audited Financial Statements and Quarterly
Financial Statements, Risk Reports, Human Rights Policy. Similarly, they are also provided
with those manuals, policies, and other documents that the Company has adopted internally
for its proper functioning, including, but not limited to, the Manual for the Management
of Information of Interest to the Market, the Code of Ethics and the Zero Tolerance for
Corruption Plan.
• The new director is also given the legislation in force pertaining to the Company's business.
These documents include copies of Law No. 18,046 on Corporations, the Regulations on
Corporations, and Law No. 18,045 on the Securities Market.
Induction Procedure
The Company has implemented an Induction Procedure for
New Directors5, an induction procedure for new directors,
designed through discussion with the Chairman and
Secretary of the Board of Directors. It considers existing
experience and possible roles of the Board of Directors or
the Directors’ Committee.
Actions related to the induction process carried out during the period
In 2023, the Board of Directors was not renewed, so there were no induction actions for new directors, but training actions
were carried out for all members of the Board as part of the ongoing training process.
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Integrated Annual Report Enel Chile 2023
Field visits
As of 2018, the Board of Directors has made at least two
annual visits to Enel Chile's and its subsidiaries' offices or
facilities. This, to learn about:
• The condition and operation of these units and facilities;
• The main functions and concerns of those who work
there;
• The recommendations and improvements that, in the
opinion of the heads of these units and facilities, would
be pertinent to improve their operation.
The Board of Directors meeting held on December 16,
2022, approved scheduling facility visits for the 2023
period, agreeing to visit two venues or facilities of the
Company.
The visits were conducted virtually, as agreed by the
directors.
The Company Board of Directors conducted a virtual visit
to the Ralco Central facilities of Enel Generación Chile
S.A. on August 30. The Board conducted a virtual visit to
the Canela Wind Power Plant facilities of subsidiary Enel
Generación Chile S.A. on October 31. The Company Board
of Directors ultimately conducted a virtual visit to the
Lalackama photovoltaic plant of Enel Green Power Chile
S.A., situated in Taltal, Antofagasta Province, on December
19.
Throughout these events, live broadcasts were carried
out from the power plants and facilities. This allowed the
directors to visit the departments, become acquainted
with their present condition and operations, gain insight
into the primary functions and concerns of the staff
operating within them, and engage in discussions with
the facility managers in order to resolve any inquiries. The
general manager of Enel Chile was present throughout
each visit.
Evaluation of the Effectiveness of the Board of Directors
The Board has implemented a continuous improvement
process, including self-assessment and review by an
independent third party. The Company hires an external
expert every year who prepares a report to detect and
implement potential improvements or areas to strengthen
Enel Chile's Board of Directors’ performance in light of
the practices recommended by the Financial Market
Commission.
Report of the self-evaluation process: the methodology
to prepare his report considers conducting interviews with
directors, CEOs, legal counsel, internal audit managers,
and the Company’s external auditors. They address the
functioning of the Board, the preparation of the sessions,
and the discussions that take place during the Board
sessions, among other relevant issues.
Evaluation of the Board of Directors: for fiscal year
2023, the legal firm Puelma y Cía. Abogados carried out
an evaluation in order to detect and implement possible
improvements or areas of strengthening in the operation
of the Board, which was presented and analyzed by the
same.
Regarding the Directors’ Committee, the Company
does not have a formal evaluation process, except for
its management's annual report, which is reported at
the ordinary shareholders' meeting and included in the
Company's Annual Report.
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3 Strategy and Risk
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4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
Attendance at Board meetings
The frequency of ordinary Board of Directors meetings is specified in the Company's bylaws.
Regarding the minimum duration of meetings or time devoted to the function of the director,
it has been determined that specific regulations are unnecessary since the diligence and care
that individuals ordinarily apply to their businesses govern the dedication given to the functions
of the director following the provisions of Law No. 18,046 on Corporations. The directors bear
joint and several liability for any harm brought upon the Company and its shareholders due to
their deliberate or culpable conduct.
The Board of Directors has a policy whereby the management must provide the directors with
the relevant information on the issues to be discussed at each meeting, at least three days in
advance, to allow them to analyze it. Similarly, the directors are continuously informed about
the Company's events, and when they deem it necessary, they agree to attend extraordinary
sessions related to those matters that require prompt attention.
13 Board meetings took place in 2023, with an average director attendance of 94.5%. A
minimum attendance of 75% is required for any ordinary and extraordinary session. All sessions
were hybrid and held from the Company’s corporate headquarters.
Meetings held
by the Board of
Directors in 2023
13
Board of Directors’ Training
Enel Chile has put in place adequate Corporate Governance
practices that allow directors to obtain the necessary
training to improve their skills in all those areas in which
they believe they have specific weaknesses, including
those related to organizational, social, or cultural barriers
that could be inhibiting the natural diversity of capabilities,
visions, characteristics and conditions that would have
existed in the Board of Directors if these barriers did not
exist.
The Company has a Board of Directors Training Procedure,
whose calendar of permanent training and continuous
improvement is approved annually by the Board of
Directors, considering the suggestions of the CEO and
the managers of the areas that might be affected. The
subjects in which managers are trained include, but are
not limited to, long-term trends in the energy market;
analysis of the markets in which the Company operates
and related issues; strategic economic analysis of the
main competitors; most relevant risks, considering,
among others, the main risk management tools, including
sustainability risks; accounting principles applicable to
the Company; legal and regulatory amendments; rulings,
sanctions, or pronouncements of the most relevant
authorities that have occurred in the last year at the
local and international level, related to the duties of care,
confidentiality, loyalty, diligence and information; corporate
governance practices, including those adopted by other
entities both locally and internationally; the main advances
they have made in the last year in terms of inclusion,
diversity and sustainability reporting; conflicts of interest
and the ways in which they can be avoided or resolved in
the best interest of society; corporate organization; and
others that may be suggested from time to time by the
directors or the Company’s management.
The Permanent Training and Continuous Improvement
Procedure includes the scope of conflict of interest in
the Board of Directors, as established in the current
legal provisions, CMF regulations, the Manual for the
Management of Information of Interest to the Market, and
the Company's Code of Ethics.
In 2023, the directors were trained on various subjects,
including the fundamentals of the Green Hydrogen
industry, free competition, and updates to Law No. 20,393
on Criminal Liability of Legal Entities on matters related
to economic and environmental crime, macroeconomic
perspectives for Chile, free competition training and a
proposal for a new constitution, including its economic
and political framework.
52
Integrated Annual Report Enel Chile 2023
This system allows:
• Regardless of the legal constraints regarding the
content and deadline for sending summonses, this
system enables access to the minutes or document
that provides a summary of each subject to be
discussed during the session and any additional
background information that may be required for
preparation purposes.
• The access mentioned in the preceding paragraph
is at least five days before the corresponding
session. Nevertheless, the established deadline is
three days before the corresponding session.
• Access to the Company-implemented
whistleblowing system.
• Examine the final text of each meeting's minutes,
which becomes accessible for consultation at the
Board of Directors meeting the subsequent month
after the minutes have been approved and signed.
• Additionally, it strives to achieve electronic
administration of all documentation distributed to
the organization's members.
Electronic Dispatch and Information System
The Board of Directors has an Electronic Information and Dispatch System, which allows its members to access the
documentation related to the meetings securely, remotely, and at all times.
Operational Continuity Plan
The Company has contingency plans designed to react to
critical events or crises by forming ad-hoc committees,
which are made up of experts who deal with the situation
or event in question.
How the Board of Directors Operates in
Crises
To guarantee that the process for ongoing improvement
of the Board of Directors operations effectively meets the
Company's specific requirements, it does not explicitly
consider situations that might necessitate a change in
the operational procedures of this administrative body.
Directors are kept informed about the developments that
affect them in practice. Therefore, they can react promptly
to emergencies by putting in place any necessary
measures they deem important to solve a specific issue.
The Board of Directors, in accordance with Circular No.
1,530 of the CMF, has approved the use of technological
tools for directors who are not physically present in the
meeting room. To achieve this goal, technological methods
like videoconferencing and telephone conferences were
considered suitable for the aforementioned situations. It's
important to highlight that these strategies are effective
when all directors, whether in the room or remote,
communicate continuously and simultaneously.
Hiring Board of Directors Consultants
The appointment of professionals specializing in finance,
accounting, taxation, or other pertinent domains at
the request of one or more directors is regulated by
quorum requirements. Before appointing consultants,
the directors evaluate their professional backgrounds,
subject matter expertise, market standing, and industry
experience, among other factors. The actions enumerated
above follow the regulations specified in Law No. 18,046
on Corporations, Article 80, and Article 43 of the same
legislation. In cases where the external consultant is
related to the company, rigorous adherence to Title XVI of
Law No. 18,046 on Corporations is further ensured.
Currently, the organization does not have a specific policy
regarding recruiting consultants for the Board of Directors,
including the Directors' Committee. Instead, a procedure
involving multiple company departments follows the hiring
policy for consultants, which stipulates objective criteria
for selection and opportunity.
The Board of Directors did not appoint consultants
throughout fiscal years 2023 and 2022.
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7 Annexes
Structure of the Directors’ Committee for the past two years
Name
Position
Relation6
Start date
End date
Fernán Gazmuri Plaza
Chairman
Independent
28-04-2021
-
Pablo Cabrera Gaete
Director
Independent
28-04-2021
-
Gonzalo Palacios Vásquez
Director
Independent
28-04-2021
-
6 Article 50 bis of Law No. 18,046 on Corporations states that public limited companies that meet the requirements indicated in that point, as is the case of
Enel Chile, are required to appoint at least one independent director. In addition, in accordance with articles 29 and 30 of the Bylaws, as long as the Company
is an issuer of securities duly registered with the New York Stock Exchange (NYSE), the structure, operation, and powers of the Directors’ Committee will also be
governed -to the extent that it is not contrary to Chilean legislation- by the provisions mandatory for the so-called Audit Committees by the Sarbanes Oxley Act
(SOX) of the United States of America and, accordingly, all its members must be independent in accordance with those criteria.
Directors’ Committee
At Enel Chile, the Company’s leadership and management are inspired by international best practices. The Board of Directors
aims to create value for all shareholders in the medium and long term as part of this framework.
Structure of Directors’ Committee
On April 28, 2021, the Board of Directors appointed Pablo
Cabrera Gaete, Gonzalo Palacios Vásquez, and Fernán
Gazmuri Plaza as members of the Directors’ Committee.
The last, Mr. Fernán Gazmuri Plaza, was appointed as a
financial expert. In an ordinary meeting of the Directors’
Committee held on April 28, 2021, Mr. Fernán Gazmuri Plaza
was appointed Chairman of the Directors’ Committee, and
Mr. Domingo Valdés Prieto as the Committee’s Secretary.
The members of the Directors’ Committee must be fully
renewed or re-elected in 2024, as they have completed
their term as directors.
Role of the Directors’ Committee
Article 50 bis of Law No. 18,046 on Corporations
establishes the powers of the Directors' Committee. The
functions of this body are those indicated in the Articles
of Association, as well as those entrusted to it by the
shareholders' meeting or by the Board of Directors. The
functions of this committee are currently as follows:
• Supervise the work of the Company’s external auditors.
• Review and approve the external audit firm's annual
audit plan, as well as the means to develop it.
• Evaluate the qualifications, independence, and quality of
the external audit firm's work. Establish the Company’s
policies regarding hiring former employees of external
audit firms.
• Provide the Board of Directors with a quarterly report on
matters pertaining to sustainability.
• Report monthly to the Board of Directors, through an
account made by the president of the Committee, on
the topics discussed in the previous sessions of the
Committee of Directors.
At the First Meeting of the Board of Directors on February
29, 2016, the powers of the Audit Committee were
delegated to the Directors’ Committee in accordance with
applicable legislation and Article 29 of the Bylaws.
The Directors' Committee oversees
sustainability-related issues
To further enhance the Company’s standing among
investors and sustainability analysts and uphold the
highest standards of Corporate Governance practices
with regard to sustainability management, the Board
of Directors of Enel Chile agreed on June 24, 2020, to
54
Integrated Annual Report Enel Chile 2023
7 Under the provisions of the Articles of Association, the meetings of the Directors’ Committee shall be validly constituted with an absolute majority of the
number of its members, and an absolute majority of the members in attendance shall adopt its resolutions.
delegate sustainability-related responsibilities to the
Directors' Committee, a body comprised of independent
directors tasked with overseeing and following up on
matters pertaining to sustainability within the organization.
Among the delegated responsibilities are evaluating
the Sustainability Plan and the Report before their final
approval by the Board of Directors. Additionally, the
committee supervises the Company’s engagement in
sustainability indices.
Management of the Directors’ Committee
The Directors' Committee met 12 times in 2023. The
average attendance at the sessions was 100%7.
During the period, the Committee dealt with the matters
within its sphere of competence, fully complying with the
responsibilities outlined in Article 50 bis of Law No. 18046
on Corporations and the Sarbanes Oxley Act of the United
States of America and other applicable regulations. For
further details, please review the Annual Report of the
Directors' Committee in Chapter 5 of this Integrated
Annual Report.
Policies for Hiring Directors' Committee
Consultants
When the Directors' Committee has requested the advice
of an expert in accounting, tax, financial, or other matters
at the request of one or more directors, the election of
the consultant is made in accordance with the voting
quorums of the body. When appointing consultants, the
directors consider their background, knowledge of the
industry or subject matter, and their reputation in the
market, among other factors. All of the above is done in
compliance with the provisions of Article 43 of Law No.
18,046 on Corporations and article 80 of the Regulations
of the same Law. Additionally, if an external consultant is
related to the Company, Title XVI of Law No. 18,046 on
Corporations is strictly complied with.
During the 2023 and 2022 financial years, the Directors'
Committee hired no consultancies.
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6 Main indicators
7 Annexes
Meetings with the
sustainability area
3
Directors’ Committee Meetings
Management in 2023
To further improve the high standards in
Corporate Governance practices related to
sustainability management and positioning
among investors and sustainability analysts,
the Board of Directors of Enel Chile, delegate
to the Committee Directors certain functions
related to sustainability, with objective
of the Committee supporting the Board
with functions of a purposeful nature and
consultative, in evaluations and decisions
related to the sustainability of the Company,
monitoring and promoting engagement
sustainability of Enel Chile S.A. Inside of the
functions that were delegated are, among
others, those of reviewing the Report and the
Sustainability Plan prior to its final approval by
the Board of Directors.
It will also supervise the participation of the
Company in sustainability indices
Number of meetings: 3
Issues addressed:
(i) The effectiveness of the policies adopted
by the board of directors to disseminate
within the organization, its shareholders and
the general public the benefits of diversity
and inclusion for society.
(ii) The detected organizational, social, or
cultural barriers that might be inhibiting the
natural diversity that would have occurred if
such barriers had not existed.
(iii) The usefulness and acceptance of
sustainability
reports
disseminated
to
relevant stakeholders in society.
(iv) Social policy on social responsibility and
sustainable development.
(v) Interest groups identified by society as
relevant, as well as the reasons why such
groups have that status.
(vi) Relevant risks to society, including
sustainability risks, as well as the main
sources of such risks.
(vii) Socially measured indicators on Social
Responsibility and Sustainable Development.
(viii) The existence of targets and the
evolution of sustainability indicators.
CEO Attendance: Yes
Complaints through the Ethics Channel.
Number of meetings: 2
Issues addressed:
Ethics Channel complaints.
CEO Attendance: Yes
The
Committee
meets
quarterly
with
the external audit company to examine
matters related to the Company's financial
statements. Additionally, they meet annually
to examine the voluntary matters of good
corporate governance contained in sections
(ii), (iii) and (v) of section 1 d) of General
Standard No. 385 of the CMF, today repealed
by the General Standard No. 461, and which
the Company has decided to continue
carrying out.
Number of meetings: 4
Issues addressed:
(i) the external audit program or plan of the
Company; (ii) any discrepancies identified in
external auditing with regard to accounting
practices,
administrative
systems,
and
internal audit; (iii) any serious deficiencies
that
have
been
identified
and
those
irregularities that, by their nature, should be
reported to the relevant supervisory bodies;
(iv) the results of the annual external auditor
program; and (v) any possible conflicts of
interest that may exist in the relationship
with the outside audit company or its staff,
either for the provision of other services to
the Company or the companies of its group
of companies.
CEO Attendance: Yes
Meetings with the internal
audit area
2
Meetings with the internal
audit firm
4
Meeting with the Risk Area: The Risk Area does not currently meet with the Directors' Committee, given that these matters
are discussed directly with the Board of Directors due to the relevance of this issue.
56
Integrated Annual Report Enel Chile 2023
8 In accordance with the provisions of Article 33 of Law No. 18,046 on Corporations.
Summary of comments and proposals from shareholders and the
Directors' Committee
Between January 1 and December 31, 2023, Enel Chile
S.A. did not receive comments or proposals regarding the
progress of the Company’s business from the Directors'
Committee or from shareholders who own or represent
10% or more of the issued shares with voting rights,
following the provisions of Article 74 of Law No. 18,046
on Corporations and Article 136 of the Regulations of the
same Law.
Remuneration of the Board of Directors and
the Directors' Committee
The Ordinary Shareholders' Meeting held on April 26,
2023, agreed on the remuneration of Enel Chile’s Board of
Directors and Directors' Committee for the 2023 financial
year8.
Remuneration of the Board of Directors
The payment consists of a fixed monthly remuneration,
one part under all circumstances and one part per
session. This remuneration is broken down into 216 UF
as a fixed monthly payment and UF 79.2 as a subsistence
for attending a session, with a maximum of 16 sessions
in total. As stated in the Bylaws, the remuneration of the
Chairman of the Board of Directors shall be twice that of
a director.
If a director of Enel Chile S.A. participates in more than one
Board of Directors of subsidiaries and/or associates or is
a director or advisor of other companies or legal entities
in which Enel Chile S.A. directly or indirectly holds any
interest, they may only receive remuneration in one of the
said Committees or Boards of Directors.
The Company’s executives and/or of its subsidiaries or
associates will not receive remuneration or allowances if
they are directors of any of the subsidiaries, associates,
or investees in any way owned or with Enel Chile S.A.’s
participation. However, the executives may receive such
allowances if such a situation is previously and expressly
authorized as an advance of the variable part of their
remuneration to be paid by the respective companies to
which an employment contract links them.
Incentive Plans
There were no incentive plans for directors in 2023 and
2022.
Directors' Committee Remuneration
The payment consists of a fixed monthly remuneration, one
part under all circumstances and one part per session. This
remuneration is broken down into 72 UF as a fixed monthly
payment and UF 26.4 as a subsistence for attending a
session, with a maximum of 16 sessions in total, be they
ordinary or extraordinary.
At its ordinary meeting in February 2023, the Company’s
Board of Directors asked the Ordinary Shareholders'
Meeting to set the expenditure and operating budget of
the Directors' Committee and its advisors for that year at
UF 10,000, ratified by the Meeting.
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7 Annexes
Figures in thousands of Ch$
2023
Name
position
Fixed
remuneration
of the Board of
Directors
Ordinary and
Special Meetings
of the Board of
Directors
Fixed
remuneration of
the Committee
Ordinary and
Special Sessions
of the Directors'
Committee
Total
Herman Chadwick Piñera
Chairman
186,722
74,182
260,904
Salvatore Bernabei(1)
Director
-
-
-
-
-
Fernán Gazmuri Plaza
Director
93,361
37,091
31,120
11,411
172,983
Pablo Cabrera Gaete
Director
93,361
37,091
31,120
11,411
172,983
Gonzalo Palacios Vásquez
Director
93,361
37,091
31,120
11,411
172,983
Monica Girardi (1)
Director
-
-
-
-
-
Isabella Alessio(1)
Director
-
-
-
-
-
Grand Total
466,805
185,455
93,360
34,233
779,853
2022
Name
Position
Fixed
remuneration
of the Board of
Directors
Ordinary and
Special Meetings
of the Board of
Directors
Fixed
remuneration of
the Committee
Ordinary and
Special Sessions
of the Directors'
Committee
Total
Herman Chadwick Piñera
Chairman
171,953
78,466
-
-
250,419
Salvatore Bernabei(1)
Director
-
-
-
-
-
Fernán Gazmuri Plaza
Director
85,976
39,233
28,659
13,029
166,897
Pablo Cabrera Gaete
Director
85,976
39,233
28,659
13,029
166,897
Gonzalo Palacios Vásquez
Director
85,976
39,233
28,659
13,029
166,897
Monica Girardi(1)
Director
-
-
-
-
-
Isabella Alessio(1)
Director
-
-
-
-
-
Grand Total
429,882
196,164
85,976
39,086
751,109
(1) Mr. Salvatore Bernabei, Ms. Monica Girardi and Ms. Isabella Alessio waived the payment of remuneration for their current positions as directors of
Enel Group SpA.
Remuneration of the Board of Directors and Directors' Committee
58
Integrated Annual Report Enel Chile 2023
EXECUTIVE
TEAM
Executive Team
(*) Key executive.
(**) Mr. Giuseppe Turchiarelli assumed the role of General Manager on an interim basis,
effective March 1, 2024, replacing Mr. Fabrizio Barderi, who perormed this function
between March 1, 2022 and February 29, 2024.
(***)Audit repor directly to the Company’s Board of Directos of Enel Chile.
CHAIRMAN OF THE BOARD
Herman Chadwick Piñera
CEO ENEL CHILE
Giuseppe Turchiarelli (a.i.) (*) (**)
ADMINISTRATION, FINANCE AND
CONTROL
Giuseppe Turchiarelli (*)
COMMUNICATIONS
Claudio Vera Acuña
INSTITUTIONAL AFFAIRS
Pedro Urzua Frei
REGULATION
Daniel Gómez Sagner
SERVICES AND SECURITY
Mary Rinchi Danteti
HEALTH, SAFETY ENVIRONMENT &
QUALITY (HSEQ)
Andrés Pinto Bontá
INTERNAL AUDIT (***)
Juan Fernando Díaz Valenzuela (*)
PEOPLE AND ORGANIZATION
Liliana Schnaidt Hagedorn (*)
LEGAL AND CORPORATE AFFAIRS
Domingo Valdés Prieto (*)
SUSTAINABILITY AND COMMUNITY
RELATIONS
Montserrat Palomar Quilez (*)
DIGITAL SOLUTIONS
Ángel Barrios Romo
PROCUREMENT
Raúl Puentes Barrera
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7 Annexes
Enel Chile's Senior Executives
*The Board of Directors of Enel Chile held on February 28, 2024, appointed Mr. Giuseppe Turchiarelli as the new general manager, who assumed his duties on an
interim basis, as of March 1, 2024, replacing Mr. Fabrizio Barderi. who performed this role between March 1, 2022 and February 29, 2024. The Board of Directors
has already considered the name of the definitive general manager, but as of the date of publication of this Integrated Annual Report, it is still.Procedural steps
are being carried out to allow his appointment.
Giuseppe Turchiarelli*
CEO
ID Number: 27.101.372-8
Date of birth: October 19, 1970
Profession: economist, Universidad de Cagliari
Executive MBA at Luiss Business School
Appointment date: 15 November 2019
Giuseppe Turchiarelli
Finance and Administration Manager
ID Number: 27.101.372-8
Date of birth: October 19, 1970
Profession: economist, Universidad de Cagliari
Executive MBA at Luiss Business School
Appointment date: 15 November 2019
Liliana Schnaidt Hagedorn
People and Organization Manager
ID Number: 13.903.626-3
Date of birth: October 4, 1979
Profession: Industrial Civil Engineer, Pontificia Universidad
Católica de Chile
Appointment date: 1 February 2018
Juan Fernando Díaz Valenzuela
Internal Audit Manager
ID Number: 16.261.687-0
Date of birth: July 4, 1986
Profession:
Information
and
Management
Control
Engineer, Universidad de Chile
Appointment Date: February 1, 2022
Domingo Valdés Prieto
Attorney and Secretary of the Board of Directors
ID Number: 6.973.465-0
Date of birth: March 25, 1964
Profession: Summa cum Laude lawyer, University of Chile.
Master of Laws, The University of Chicago. Management
Program for Lawyers, Yale University.
Appointment date: 29 February 2016
Montserrat Palomar Quilez
Sustainability and Relationships Manager
ID Number: 27.965.892-2
Date of birth: October 7, 1981
Profession:
Bachelor
of
Psychology,
Universidad
Iberoamericana de la Ciudad de México.
Specialization in Mediation and Conflict Resolution,
Universidad Oberta de Catalunya
Appointment date: 1 November 2022
60
Integrated Annual Report Enel Chile 2023
9 The Company adopted the Policy to comply with the applicable registration standards of the New York Stock Exchange, the national stock exchange of the
United States on which the Company's American Depositary Receipts ("ADRs") are registered and traded, in the United States of America.
Executives of Subsidiaries
The following are the main executives of Enel Chile S.A.'s subsidiaries:
Enel Generación Chile
James Lee Stancampiano
CEO
ID Number: 24.158.936-6
Profession: Environmental Economist, Universidad de
Siena, Italia
Appointment date: January 1, 2021
Enel Distribución Chile
Victor Tavera Olivos
CEO
ID Number: 12.614.913-1
Profession: Electrical Civil Engineer, Universidad Técnica
Federico Santa María
Appointment date: May 16, 2022
Enel Green Power Chile
Ali Shakhtur Said
CEO
ID Number: 8.514.966-0
Profession: lawyer, Universidad Gabriela Mistral, Chile
Appointment date: January 1, 2021
Enel X Chile
Karla Zapata
CEO
ID Number: 22.075.700-5
Profession: industrial engineer, Universidad Ricardo Palma,
Perú
Appointment date: November 1, 2018
Review of executive team salary structures
As the administrative body, the Board of Directors of
Enel Chile has determined that implementing a formal
procedure to evaluate the executive team's salary
structures is not required. The Directors' Committee
routinely conducts comprehensive discussions on these
subjects in adherence to the stipulations outlined in Article
50 bis of Law No. 18,046 on Corporations. Furthermore,
determining salaries and compensation policies for the
organization's highest-ranking employees is carried out
through careful use of incentives, ensuring that such
policies do not induce the Company to engage in illegal
activities or confront potential risks.
Although the Board of Directors has established no formal
procedure, information on the matter is disseminated to
the public through the Integrated Annual Report, which
can be found on the corporate website.
In 2023, Enel Chile's Board of Directors approved the
Incentive-Based Compensation Policy, the purpose of
which is to establish the circumstances under which the
Company will recover erroneously awarded compensation
received by a current or former top Executive of the
Company, along with declaring the discretionary power of
the Board of Directors to decide on matters not covered
by the corresponding registration standards of the New
York Stock Exchange9.
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5 Other Corporate
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6 Main indicators
7 Annexes
CEO and Senior Executive Replacement Procedure
Following the Company's Replacement Procedure, in the
event of an unforeseen replacement of the CEO, he or
she will be automatically and temporarily replaced by the
Administration, Finance, and Control Manager. After this,
a meeting of the Board of Directors must be convened
immediately to designate the person who will occupy
the position permanently. In the event of a replacement
of a senior executive, the CEO shall determine who
will substitute them until a replacement is appointed.
Regarding the selection process for the senior executive
officer or CEO position, the Board of Directors must keep
a record of the evaluated background of the professionals.
This record should contain at least the candidate's
academic credentials, prior professional experience, and
career progression. Furthermore, the departing executive
is expected to compile a detailed report outlining the
pertinent pending issues within their sphere of expertise,
including their present status, associated risks, and
suggested courses of action. Furthermore, the outgoing
executive should consider organizing one or more
personal meetings with the new executive or the CEO.
Succession Programs
Regarding the identification of new talent, the Board
of Directors agreed to implement training programs,
managed by the People and Organization management,
aimed at detecting and training new talents that have
emerged among the Company’s professionals. The
objective is to develop Enel Chile's employees' skills,
knowledge, and experiences and empower future
leadership.
Executive Committees
Enel Chile has a Risk Committee whose mission is to
define the structure and processes of risk governance, as
well as to detect, quantify, monitor, and communicate to
the Board of Directors relevant financial risks and those
related to commodities, the Company’s commercial debt,
and credit status. It is made up of three members: (i) the
CEO of the Company, who serves as the Committee's
chairman; (ii) the Administration, Finance, and Control
Manager; and (iii) the Planning and Control Manager. The
Committee reports directly to the Board of Directors.
Remuneration of Senior Executives
In 2023, the Company’s CEO and top executives received
Ch$2,456 million in fixed salary and Ch$740 million in
short- and long-term benefits. In turn, in 2022, the CEO
and top executives of the Company obtained Ch$2,242
million in fixed salary and Ch$405 million in short- and
long-term benefits. These figures include both the most
senior executives who were present on December 31 of
each year and those who left the Company during that
year.
Severance payments to managers and senior executives
No compensation was paid for years of service in 2023 and 2022.
62
Integrated Annual Report Enel Chile 2023
Macro goal
Target
Dimension
Profitability
Profitability
Financial
Business
Safety
15%
15%
20%
30%
20%
Maximum 120%
Maximum 120%
Maximum 120%
Maximum 120%
Maximum 120%
Economic
Economic
Financial
Strategy
ESG
1. Funds from operations
Weight
Range
Net income Chile
Integrated gross
margin Chile
FFO1 Chile
Business
in Chile
Safety in the
workplace
Benefits for Senior Executives
As a benefit, the Company maintains supplemental
health
insurance
and
catastrophic
insurance
for
senior executives and household members credited as
dependents. In addition, there is life insurance for every
senior executive. These benefits are granted per the
managerial level corresponding to the worker. In 2023
and 2022, this amount reached Ch$10 million and Ch$7
million, respectively, which is included in the remuneration
received by senior executives.
Remuneration plans linked to the share
price
No remuneration plans are linked to Enel Chile's share
price for key management staff members.
Incentive plans for managers and senior executives
Enel Chile offers an annual bonus plan for its highest-
ranking managers based on reaching objectives and
proving individual contributions to the Company’s
success. It includes an array of bonus levels based on a
hierarchical level, comprising a specific number of gross
monthly wages.
Below are the CEO's variable incentives:
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7 Annexes
Enel Chile is committed
to guaranteeing an
open and transparent
dialogue.
On July 28, 2021, Enel Chile's Board of Directors approved the Investor Relations Policy to
ensure that the principles of fairness and transparency inspire the Company’s dialogue with
institutional investors and its shareholders and bondholders. This document is aligned with
national regulations and international best practices. In addition, the Company has a Manual
for the Management of Information of Interest to the Market, which was updated at the May
2023 Board of Directors meeting in line with the new applicable regulations. The purpose of
the Manual is to determine the general criteria of behavior to be followed by its recipients in
the transactions they carry out to contribute to its transparency and investor protection.
The Company’s Board of Directors is tasked with periodically verifying the correct application
of the Investor Relations Policy and the adequacy of the relevant provisions following the
evolution of good practices in this area at the national and international levels. The Board of
Directors, in compliance with the provisions of the aforementioned Policy, shall be subject to
compliance with the duty of diligence or care and the duty of loyalty that directors inherently
have in the regular exercise of their functions.
Procedure for remote participation in shareholders' meetings:
The Procedure, prepared following current regulations, is to ensure that both ordinary and
extraordinary shareholders' meetings, as well as the attendance record and corresponding
votes, are held remotely, which it considers a mechanism for registration and validation at the
meeting, and is available on the Company’s website. The DCV Registries and the Santiago Stock
Exchange provided the technology infrastructure for registering attendance and electronic
voting on the items to be debated at the shareholders' meeting.
RELATIONSHIP
BETWEEN THE
COMPANY,
SHAREHOLDERS, AND
THE GENERAL PUBLIC
Information for Shareholders
Enel Chile considers one of its duties towards the market
to ensure a constant and open dialogue, based on
mutual understanding of roles, with investors, analysts,
bondholders, their representative associations, and
with the stock market in general, to increase the level of
knowledge of the activities carried out by the Enel Chile
Group.
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Integrated Annual Report Enel Chile 2023
10 For the last election of the Board of Directors, in order for the public to be informed in a timely manner about the capabilities, conditions, and experiences of
the candidates for director, the Company published a list of all the candidates on its website ten days before the holding of the 2021 Ordinary Annual Meeting,
at which the election of the Board was to be held. The foregoing complies with the provisions of Article 73 of the Regulations of Corporations.
Procedure to Inform Shareholders of the Background of Candidates for Directors:
The Procedure establishes that the shareholders of the Company must be informed of the
candidates for director in due time before the shareholders' meeting at which they are to
be elected. Information regarding a candidate for directors, including their experience and
professional profile, must be made available to shareholders on Enel Chile's website at least two
days before the respective meeting if it is delivered on time to the Company by the respective
candidate. The procedure additionally stipulates that information concerning the candidate
for director's contractual, commercial, or other affiliations with the Company’s controller, as
well as its principal competitors or local suppliers, over the past eighteen months must be
disclosed to shareholders on the Company’s website, with the aforementioned advance notice.
This requirement remains valid so long as the candidate in question furnishes the Company
with the information10.
Investor Relations
The Company has a management department dedicated
to investor management (Investor Relations), whose main
function is to provide transparent, timely, and truthful
information to the market on the leading financial,
strategic, and operational issues, along with the necessary
indications on matters of interest, such as shareholders'
meetings and related accreditation procedures and more
generally, in relation to corporate governance matters or
dividends, among others.
Enel Chile's Investor Relations Policy aims to facilitate the
effectiveness of the dialogue with Institutional Investors
and with all shareholders and bondholders while ensuring
the clarity and symmetry of the content of the information.
The Policy is published on the Company’s website. It
sets up the official channel through which the financial
market may obtain the information it needs, in addition
to establishing clear procedures in which investors may
request to meet with the Company.
Communication channels
Enel Chile has a special section called "Investors" on
its corporate website (www.enel.cl), which includes the
documents and information considered to be of most
interest for this purpose, which can be consulted in their
Spanish and English versions.
The Investor Relations department is available to answer
any questions about the Company, whether in Spanish,
English, French, or Portuguese, through ir.enelchile@enel.
com.
Other communication channels include:
• Investor Relations App
• Conference Calls
• Emails
• Virtual and/or face-to-face meetings
• Participation in local and international conferences
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6 Main indicators
7 Annexes
Download app
Website
Enel.cl
iOS
Android
Mobile App
Enel Investors
Available documents
The documents available to investors mainly include quarterly results presentations, integrated
annual reports, 20-F reports, press releases, quarterly financial reports, corporate presentations,
and strategic plans.
Regarding this last point, as of 2016, the Company has presented its strategic plan for the next
three years each year, which shows its business's main guidelines and financial projections.
Isabela Klemes
Investor Relations Manager, Enel Chile
Investor Relations Team
• Catalina González
• Claudio Ortiz
• Carla Rojas
• Francisco Basauri
• Mónica de Martino – New York Office
Contacts
ir.enelchile@enel.com
2023 Management
In 2023, Enel Chile held its hybrid Investor Day (face-to-
face and online) to present its 2024-2026 Strategic Plan,
with the participation of more than one hundred and
ninety local and foreign investors.
As of 2020, the option of virtual visits to power generation
plants through the Company’s website has been
incorporated to make the facilities more readily known to
stakeholders.
In terms of meetings, Enel Chile held more than two
hundred meetings with investors in 2023 and attended
eleven conferences and a non-deal roadshow, both local
and international.
Chanels – Follow us
Download APP of Investor Relations
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Integrated Annual Report Enel Chile 2023
Media relations
Enel Chile has a Manual for the Management of Information
of Interest to the Market, which establishes the rules of
communication with the press and other news media,
indicating that this function will correspond exclusively
to the President of the Board of Directors, the General
Manager and the Communications Manager of the
Company. The Communications Department serves as the
official spokesperson with the media, and they channel all
information that should or is decided to be made available
to the general public. In addition, the Manual outlines
principles for communicating and disclosing Essential,
Reserved, or Interesting information.
The Company also has an internal media relations policy,
which establishes the guidelines that the Communications
department will follow in the management of the press
when confronted with requirements, requests for
interviews, press releases, and conferences, as well as
the follow-up of information published by the media with
regard to the Company.
Institutional Relations
Institutional relations allow Enel Chile to build a link with its
stakeholders from the political, governmental, and other
official spheres relevant to the Company.
Enel Chile employs an active, transparent, and credible
communication model to effectively convey its vision, key
business priorities, and extensive international expertise
in the electricity market. At the same time, the Company
gathers insights into the government's desired direction
for the industry's growth.
Establishing a brand reputation is crucial for building trust.
Therefore, a well-organized approach is implemented to
manage the model, ensuring it can effectively respond to
the demands of stakeholders.
Governance Framework to Participate in Public Policy
The Company has a framework that guarantees a
transparent and efficient structure by assigning specific
responsibilities at each organizational level, culminating in
senior executive management. This framework provides
a systematic approach for effective and coherent
participation in developing and implementing government
initiatives, mainly through working groups or consultations
that comprise the authority.
Moreover, it enhanced the managerial framework that
facilitates the control and transparency of meetings with
governing bodies, along with a protocol that regulates
the interactions with these entities and another that
establishes the parameters for engaging with the authority.
Establishing a strong connection with the authorities is a
priority in this setting, as the Enel Chile Group is committed
to transparent and ethical interactions in full compliance
with all relevant protocols. Therefore, interactions with
these entities are recorded and monitored in accordance
with Law 20,730, which governs lobbying and procedures
representing particular interests to guarantee that
institutions have optimal conditions for decision-making.
Moreover, to improve the accountability and openness of
its routine interactions with public officials and members of
public institutions, the corporation has established internal
protocols and manuals that all staff, representatives, and
contractors of the Company are required to adhere to.
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Contributions in the last five periods(1)(2)
Figures in Ch$ million
2023
2022
2021
2020
2019
1,174
1,212
927
1,048
844
(1) Enel Chile and its subsidiaries have not made any contribution related to lobbying, representation of interests or similar, political campaigns/
support to organizations/contributions to local, regional, or national candidates or others (e.g., expenses related to voting measures or
referendums), in compliance with Law 20,900, as well as the Group's internal policies.
(2) Data coverage is 100% as a percentage of revenue for the five years.
Association Participation Review and Monitoring Process
In accordance with Enel Chile's internal policies, a review
and monitoring process of its association affiliation is
carried out annually to assess its alignment with the
Company’s stated positions. Importantly, Enel Chile's
business model is aligned with the Paris Agreement, as
well as climate-related legislation and regulation.
This systematic approach is used for both existing
renewals and new agreements. The primary goal is to verify
that the affiliations agree with the Company’s objectives.
In the event that discrepancies in the relationship are
discovered, the Company has a framework in place to
address these differences, including public statements
that distance Enel Chile from the relationship before
entering into discussions with the commercial association
with precise deadlines and an escalation process, and, if
successful, withdrawing from the commercial partnership.
The Company’s policy is to be open about the reasons for
non-renewal of memberships.
In 2023, Enel Chile continued to be part of multiple trade
and business associations, in line with the Company’s
strategy.
Among the total monetary contributions, the three most
important were to the Association of Generators of Chile
(Ch$ 420 million), through its subsidiary Enel Generación
Chile; the Association of Electrical Companies A.G. (Ch$
279 million), through its subsidiary Enel Distribución
Chile; and the Chilean Institute of Rational Business
Administration (ICARE) (Ch$ 91 million), through Enel Chile.
The institutional dialogue of the trade and business
associations in which Enel Chile or its subsidiaries
committed in 2023 considered support for regulatory and
consultation processes on the following main issues:
• Development of energy policies: the contribution made
to this area in 2023 was Ch$ 742 million.
• Increasing business competitiveness: the contribution
made to this area in 2023 was Ch$ 432 million.
Membership in guilds, associations, and other organizations
• Empresas Eléctricas A.G.
• Asociación Gremial de Generadoras de Chile
• Instituto Chileno de Administración Racional de
Empresas (ICARE)
• Artequin
• Sociedad de Fomento Fabril (SOFOFA)
• Chile Transparente
• Asociación de Empresas de la Quinta Región (ASIVA)
• CLG Chile - Grupo de Lideres Empresariales contra el
Cambio Climático (Universidad de Chile)
• Instituto de Ingenieros de Chile
• Comité Chileno del Consejo Mundial de la Energía (WEC)
• Cámara Chileno Brasileña de Comercio
• Acción Empresas
• Cámara Chileno Norteamericana de Comercio
• Pacto Global Red Chile (Universidad Andres Bello)
• Junta de Adelanto del Maule (JAM)
• Asociación de Industriales del Centro Región del Maule
(ASICENT)
• Cámara Chileno Argentina de Comercio
• Cámara Chileno Italiana de Comercio
• Instituto de Auditoría Interna de Chile
• Congreso Futuro - Fundación Encuentros del Futuro
• Pride Connection Chile
• Centro Regional del Sector Privado para los Objetivos de
Desarrollo Sostenible
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Integrated Annual Report Enel Chile 2023
• Fundación Eurochile
• Comité Nacional Chileno de Grandes Presas (ICOLD
CHILE)
• Asociación de Industriales de Antofagasta (AIA)
• Cámara Chilena de la Construcción
• Hoteleros de Chile
• Asociación
Gremial
de
Empresas
de
Eficiencia
Energética (ANESCO)
• Asociación Chilena de Energía Solar AG (ACESOL)
• Fundación País Digital
• Asociación Chilena del Hidrógeno, H2 Chile
• Asociación Chilena de Venture Capital (ACVC)
United Nations Global Compact (UNGC)
Through its subsidiaries Enel Distribución Chile and Enel
Generación Chile, Enel Chile is a member of the United
Nations Global Compact (UNGC). This group of companies
is among the organizations most closely committed
to sustainability, thanks to their adherence to the ten
fundamental principles of Human Rights, Labor Relations,
Environmental Protection, and Anti-Corruption.
Foundations
Through Enel Generación Chile, Enel Chile has two
foundations, the San Ignacio de Huinay Foundation and
the Pehuén Foundation, responsible for channeling efforts
to promote education and other emerging social needs
such as environmental protection, recovery, and defense
of cultural heritage: social cooperation and scientific
research, among other issues.
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VALUES AND
ETHICAL PILLARS
In an ever-evolving world, corporate ethics and integrity
profoundly impact society and the environment. On the
other hand, corporate integrity is the basis of reputation
and trust in the market, allowing consistency between
words and actions. This commitment is reflected in how
the Company provides sustainable energy solutions,
transparent relationships, and respect for workers. At
Enel Chile, business ethics encompasses the values that
guide its actions: trust, responsibility, innovation, and
proactivity.
A strong culture of ethics and integrity underlies all the
activities of Enel Chile and its subsidiaries, which is
embodied in a set of standards aimed at incorporating
the best practices that all those who work for and with the
Company must respect and apply in their daily activities.
The culture is based on a Compliance Program that
includes the Code of Ethics, Enel's Global Compliance
Program, the Zero Tolerance with Corruption Plan, the
Criminal Risk Prevention Model, the Human Rights Policy,
and any other national compliance model adopted by
the Group's companies in accordance with local laws and
regulations.
Open Power Values
• Trust: Enel Chile's work is based on transparency in its
power plants, distribution networks, offices, and the
digital channels the Company uses to engage with
its customers. Their success comes from the trust
they have built and maintained every day with their
communities and with the people they work with.
• Responsibility: Enel Chile is looking for people who want
to improve life on the planet and propose solutions to
the challenges of climate change and the growing need
for clean energy, bringing electricity to people who still
cannot access it.
• Innovation: Enel Chile drives innovation to guarantee
that the best and most creative ideas contribute to
improving people's lives.
• Proactivity: Enel Chile has an ambitious vision to
improve the quality of life with sustainable energy. For
this to happen, you need creative people who can think
outside the box, who like to question themselves, and
who see challenges as opportunities.
Open Power values have inspired the Company’s
governance system. They are a fundamental element of its
business model, which aims to make a significant difference
in the growing energy concerns of the communities where
it operates. This allows the organization to magnify the
effects of progress. As a result, the Company is providing
services to a rising number of people, enhancing the
economy of the areas in which it operates, and expanding
access to energy wherever possible.
All of this benefits the Company’s customers' needs,
shareholder investment, market competitiveness, and the
aspirations of all the Company’s employees.
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Integrated Annual Report Enel Chile 2023
11 The last modification of the Code of Ethics was made in 2021.
12 The general principles are based on the United Nations Universal Declaration of Human Rights of 1948 and the European Convention on Human Rights of
1950.
Code of Ethics
Enel Chile and its subsidiaries have a Code of Ethics11 that
guides the actions of directors, executives, collaborators,
workers with occasional or temporary contractual
relationships, and the Company’s control bodies (Board
of Directors, Directors' Committee, among others). It
also expresses the Company’s ethical commitments and
responsibilities in managing business and commercial
activities. To regulate and standardize corporate conduct
based on rules to ensure maximum transparency and
fairness with all stakeholders.
The principles and provisions of this code are intended for
the members of the Board of Directors and the Company’s
other control and supervisory bodies and its subsidiaries,
as well as executives, workers, and collaborators who
maintain contractual relations with the Group. The Code of
Ethics is valid for Enel Chile and its subsidiaries. In addition,
the Company requires all suppliers and partners to act in
accordance with the general principles set forth therein.
The Code of Ethics and the main documents that
express Enel Chile's ethical culture are delivered to
employees, directors, suppliers, and contractors. They
are also published internally and on the website so that all
stakeholders can easily access their content.
The Code of Ethics consists of:
• The general principles12 on relations with stakeholders,
which define the values of Enel Chile's activities.
• The criteria for conduct towards each class of
stakeholder, which specifically provide the guidelines
and standards that Enel Chile's people must respect to
prevent the risk of unethical behavior.
• The action mechanisms, which describe the control
system for compliance with the Code of Ethics and its
continuous improvement.
Conflict of interest
According to the general principles of the Code of Ethics,
the Company’s employees must avoid real or apparent
situations in which the person's secondary interest
(economic, financial, family, or otherwise) interferes
or tends to interfere with the ability to make impartial
decisions in the best interests of the Company and to
perform their duties and responsibilities. Furthermore,
Enel Chile has an internal Policy on Conflicts of Interest
for direct employees, which aims to regulate the reporting,
analysis, and resolution of current or potential situations
capable of generating conflicts of interest in accordance
with the Code of Ethics, the Zero Tolerance with Corruption
Plan, the Enel Global Compliance Program, the Criminal
Risk Prevention Model, the Internal Regulations on Order,
Hygiene, and Safety, and the legal provisions that regulate
such issues.
Therefore, all direct staff members linked by an employment
contract with the Company must sign an annual Declaration
of Conflicts of Interest. It considers the existence or not
of conflicts of interest, as well as the mandatory provisions
of the Criminal Risk Prevention Model (Law No. 20,393).
This document also covers managing conflicts of interest
between contract managers and operational coordinators.
The Legal and Corporate Affairs Department manages,
through another procedure, the declarations of conflict
of interest of directors and principal executives registered
(reported) with the Financial Market Commission (CMF).
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Whistleblower
protection
The Ethics Channel is governed by the Global Whistleblowing Policy, which ensures anonymity,
confidentiality protection, protection against retaliation, and protection against bad faith
reporting. This policy is based on trust, impartiality, and whistleblower protection principles.
The management corresponds to the Internal Audit Management, but it is overseen by an
external company (Navex). It allows you to anonymously report irregular conduct contrary to
the principles of the Criminal Risk Prevention Model, the Code of Ethics, or other issues related
to accounting, control, or crimes such as money laundering, financing of terrorism, bribery,
corruption between individuals, reception, misappropriation, incompatible negotiation, and
environmental crimes, among others. Complaints received are investigated by Internal Audit
Management and reported to the Directors' Committee.
Complaints analysis
The Board of Directors reviews the complaints of a general nature, while the Directors'
Committee examines complaints pertaining to accounting. Both committees assess the
report provided by the Internal Audit Manager, which details all complaints received via the
Ethics Channel during each period, including the identified violations and the corresponding
corrective actions. If a complaint so warrants, the Directors' Committee Chair must convene
an extraordinary session of the body, with guidance on corrective measures provided by the
Board of Directors and the Directors' Committee. There were no special sessions devoted to
this issue in 2023.
Complaints received
In the period of fiscal year 2023, 36 complaints were received under the scope of Enel Chile
and its subsidiaries, 35 closed and 1 under analysis. All duly managed, for alleged violations of
the Code of Ethics.
36
Workplace and Sexual Harassment
Another fundamental principle of Enel Chile's Code
of Ethics is the Integrity of People, which refers to the
fact that the Company guarantees its staff members'
physical and moral integrity, working conditions that
respect their personal dignity and individual spaces, and
a safe and healthy work environment. It also prevents
incidents of harassment, intimidation, mobbing, or
stalking in the workplace. To guarantee this principle, the
Company has put in place a Workplace Harassment and
Sexual Harassment Policy, which aims to establish the
fundamental principles required to spread a culture that
rejects and does not tolerate any form of harassment in
the workplace, as well as to provide tools to deal with these
unacceptable situations. This applies to all employees
of the Enel Group in Chile and third parties who interact
with the Company’s employees in all instances where the
Company operates its business.
Ethics Channel
Enel Chile has an Ethics Channel that aims to be a
mechanism to present any complaints related to an
irregularity or non-compliance with internal policies,
irregular conduct, or breach of the Code of Ethics, which
may be consolidated in the possible commission of a
crime or illegal act in accordance with the provisions of the
Company’s regulations. Its existence is duly disseminated
within the Company and is extended to shareholders,
workers
or
collaborators,
contractors,
suppliers,
customers, the community, and other stakeholders.
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Integrated Annual Report Enel Chile 2023
KPI
2023
2022
2021
2020
2019
Received complaints(1)
36
36
27
19
15
Non-compliance relating to episodes of:
9
7
8
2
3
Conflict of interest/corruption(2)
3
2
-
-
2
Misuse of assets
-
1
-
-
1
Work environment
2
2
4
2
-
Community and society
-
-
-
-
-
Other reasons(3)
3
1
4
-
-
Workplace harassment
-
-
-
-
-
Sexual harassment
1
1
-
-
-
(1) Of the 36 complaints received, 1 is in the process of analysis (status as of March 10, 2024) as they were received at the end of the year.
(2) In 2023, there were no reports of corruption. The three examples registered and identified as conflicts of interest are detrimental to the
Company because they include individual self-interest activities of employees inconsistent with current corporate policies. As a result, sanctions
and disciplinary actions were carried out in accordance with each company's internal regulations. Corruption is the abuse of power for personal
benefit, which can be carried out by individuals in either the public or private sectors. It is believed to include corrupt practices such as bribery,
extortion, collusion, conflicts of interest, and money laundering.
(3) Other motivations refer to control weaknesses in technical processes or non-compliance related to contractors and Health and Safety issues.
Received complaints
Where to report?
Corporate web
www.enelchile.cl
Direct ethical channel
https://secure.ethicspoint.eu/domain/media/es/
gui/102504/index.html
In person or written
Enel Chile
Internal Audit Management, Santa Rosa N°76,
Santiago(*)
(*) As of April 1, 2024, complaints in person or in writing must be
made at Roger de Flor 2725, Las Condes, Santiago.
Enel Chile's Compliance Program
Enel Chile defines compliance as an integrated compliance
management system that includes the regulatory order
and internal commitments to corporate ethics and
regulatory obligations, translating into legal observance
and standards that the Company has voluntarily imposed
on itself.
The Compliance Program operates according to the
guidelines of Law No. 20,393 on Criminal Liability of
Legal Entities, which allows the Company to develop and
disseminate an effective, robust compliance culture that
is aware of the risks related to compliance. This standard
establishes the requirements to implement, develop,
evaluate, maintain, audit, and improve the Compliance
Program.
The
Program
also
incorporates
an
Anti-Bribery
Management System (Spanish acronym -SGAS) based on
the International Standard ISO 37001:2016. This method
focuses on recognizing risks and designing, implementing,
and upgrading controls and norms of conduct in risky
operations. The Board of Directors of Enel Chile serves as
the ESMS's highest governance structure and the Criminal
Risk Prevention Model's primary administrative authority
(Law No. 20,393). The Board of Directors, in collaboration
with the Company’s Senior Management, advocates the
prohibition of all forms of bribery in everyday activities and
operations.
All of Enel Chile's subsidiaries maintain a compliance
program aligned with the Company’s practices, including
specific regulatory requirements. In those companies that
are not directly controlled, such as joint ventures, related
companies, or suppliers and contractors, the development
of local regulations and policies aligned with national
legislation and the Company’s standards is encouraged.
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Crimes addressed by the EGCP:
• Bribery/corruption crimes
• Other crimes against the public administration
• Accounting fraud
• Market Abuse
• Terrorist financing and money laundering crimes
• Crimes against private individuals
• Crimes against safety and health
• Crimes against the environment
• Cybercrime
• Copyright crimes
13 The EGCP is inspired by the most relevant international regulations on the subject, including ISO 37001:2016, the Foreign Corrupt Practices Act (USA), and
the Bribery Act (UK). The Company incorporates the definitions of the Global Compact and the Sustainable Development Goals, both developed by the United
Nations, especially in relation to SDG 16, Promote Just, Peaceful, and Inclusive Societies, and Principle No. 10 of the Global Compact.
Control
environment
CODE OF ETHICS
ZERO
TOLERANCE
WITH
CORRUPTION
PLAN
PROCEDURES
AND POLICIES
CRIMINAL
RISK
PREVENTION
MODEL
ENEL GLOBAL
COMPLIANCE
PROGRAM
PROTOCOLS
Cerifications and
iniciatives
Fraud Risk
Assesment
Complaints channel
and whistleblowing
Compliance Officer /
Prevention Officer
Third paries and
due diligence
Sensitive Processes
(Consulting and
donations)
Digitalization and
Continous monitoring
CRPM Coordinator /
Executive team
Board of Directors
Compliance Program Components
Enel Global Compliance Program (EGCP)
Enel Global Compliance Program on Corporate Criminal
Liability (EGCP)13 is a governance mechanism that reinforces
the Enel Group's ethical and professional commitment to
prevent crimes that could lead to the Company’s criminal
liability and damage its reputation.
This document was approved by Enel Chile's Board of
Directors in 2016 to provide standards of conduct and
areas to be monitored for preventive purposes for its
foreign subsidiaries, whose requirements prevail in the
absence of these in local legislation and regulations.
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Integrated Annual Report Enel Chile 2023
14 Chilean Law No. 20,393 establishes the criminal liability of legal entities in the crimes of bribery of national or foreign public officials, money laundering, and
financing of terrorism, which entered into force on December 2, 2019. https://www.bcn.cl/leychile/navegar?idNorma=1008668
Zero Tolerance with Corruption Plan
In compliance with the tenth principle of the United Nations
Global Compact, according to which "companies must
work against corruption in all its forms, including extortion
and bribery," Enel Chile is committed to fighting corruption.
It requires its employees to be honest, transparent, and fair
in performing their tasks. This is why the Company adopted
the program called Zero Tolerance with Corruption Plan
(TCC Plan- Spanish Acronym), to guarantee ownership
and transparency in the conduct of its business and
operations and to safeguard the Company’s image and
reputation, the work of its employees, the expectations of
shareholders and all its stakeholders.
Based on an analysis of the activities most vulnerable to
corruption, and in accordance with the provisions of its
Code of Ethics, Enel Chile has made commitments in the
execution of its activities, primarily related to bribes, gifts,
presents, preferential treatment, and donations to political
parties, charities, and sponsorship.
Criminal Risk Prevention Model
Enel Chile is fully committed to complying with its ethical
standards, conduct, and current legislation in its internal
and external relations with other stakeholders. This is why
it has put in place a Criminal Risk Prevention Model (CRPM),
whose objective is to control and prevent the commission
of crimes in the Company’s operations, mitigate the risks
associated with the criminal liability of the legal entity
under Law No. 20,393 and14 the risks of administrative
liability established in the Enel Global Compliance
Program, guaranteeing compliance with regulations and
transparency in all actions in Enel Chile and where it owns
a majority shareholding, exercises control or is responsible
for management.
The CRPM is a set of prevention elements and control
activities for processes that are at risk of crime. One is the
appointment of a Crime Prevention Officer (CPO) by Enel
Chile's highest administrative authority. This responsibility
falls under the purview of the Company’s Internal Audit
Manager. The CRPM comprises several components
that include the actions and conduct of the Company’s
directors, managers, officers, employees, suppliers, public
officials, communities, and other stakeholders interacting
with the Company.
Law No. 21,595 on Economic and Environmental Crimes
was enacted in August 2023 to modernize economic
crimes, update Crime Prevention Models, and promote
their effective implementation. It establishes, among other
things, a differentiated statute to establish the penalty
for these crimes, increasing and tightening penalties and
expanding the catalog of crimes with individual criminal
responsibility. Similarly, Law No. 20,393 states that practical
implementation of the Model can be exempt from criminal
liability if risky processes are identified, regulations are
established to prevent and detect deviations, compliance
is supervised, a whistleblowing channel is established,
and sanctions are defined, and independent third-party
evaluations are conducted.
Following the preceding, and to establish a baseline for
current compliance with the new legal requirements and
identify corresponding improvements, Enel Chile's and
its subsidiaries Criminal Risk Prevention Model is being
reviewed and updated by a third-party expert, with the
support of Internal Audit Management and Legal and
Corporate Affairs Management, as well as workgroups
with the most relevant areas.
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Governance
2 Governance
1 Enel Chile Group
3 Strategy and Risk
Management
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
6 Main indicators
7 Annexes
CRPM Review and
Monitoring
• The Board of Directors is in charge of regulating compliance with the regulations, preventing
criminal risks, and upholding the Code of Ethics, all monitored and managed by the Internal
Audit Department. Thus, the Board approves the Compliance Program's documentation,
including the CRPM, implemented using the CPO. The latter holds the required organizational
autonomy, empowerment, and resources to execute its responsibilities effectively.
• In 2023, the Board of Directors, the highest administrative authority, and the other areas of the
Company completed the review and adaptation of the CRPM, considering the amendments
made to Law No. 20,393 on including computer crimes during the last year. This work was
coordinated by the CPO, updating specific risks and controls under the scope of the Criminal
Risk Prevention Model with all areas and processes, with the support of external experts and
the Legal and Corporate Affairs Management.
Control
Environment
Pillars of
regulatory system
Ethical code
Enel Global Compliance Program
Criminal Risk Prevention Model
Zero Tolerance Plan for Corruption
Protocol for accepting and offering
gifts, gifts and favors
Protocol of action in dealing with
public officials and public authorities
Internal Rules and Regulations
Identification
Risk Areas
Control
Activities
Identification of risk areas
Implementation of CRPM
preventive controls
Updating of Matrix of Controls CRPM
identified in risk areas
Continuous Monitoring
Risk Assessment
Fraud Risk Assessment
Monitoring of Disciplinary System
Effectiveness
Oversight and
response to risk
Oversight, Review and Supervision
Analysis of Weaknesses and Areas for
improvement
Information Flows and Sample Testing
Continuos Monitoring
RESPONSE TO RISK
Disciplinary System
Identification and Implementation of
Improvements
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Integrated Annual Report Enel Chile 2023
Certifications
• Enel Chile has obtained external certification for the CRPM and has been recertified for the
maximum duration of two years allowed by law until 2024. The certification was conducted by
an external company, ICR Chile, which is approved by the CMF. They assessed and validated
Enel Chile's preventative approach in accordance with the conditions of Law No. 20,393.
• Enel Chile was South America's first international energy business to certify its Anti-Bribery
Management System under the ISO 37001:2016 standard in 2018, setting a benchmark
for voluntary ethics and transparency. The standard offers a set of procedures and best
practices to assist companies in preventing, detecting, and confronting bribery, as well as
honoring voluntary commitments made. At the end of the 2023 financial year, Enel Chile's
subsidiaries15 validated their Anti-Bribery Management System under this standard.
15 Enel Distribución Chile, Enel Colina, Enel Generación Chile, Empresa Eléctrica Pehuenche, Enel Green Power Chile, Geotérmica del Norte and Enel X Chile.
Compliance
model
SUPPLIERS AND CONTRACTORS
Transfer the culture and
commitment to Ethics and
Compliance, and jointly establish
and/or strengthen good practices
associated with this area.
STAKEHOLDERS
INSTITUTIONAL & NGO
Share and develop Ethical and
Anti-Corruption compliance
standards and practices with
civil society and government
organizations.
COMMUNITY/CLIENTS
Transmit the Group’s commitment to
transparency and integrity in the
development of its activities, in order to
generate trust with communities and
customers.
COMPANY PEERS
Be aware of the best practices of the
electricity industry and markets, and at the
same time, promote standards, that are
carried out entirely within the Group. These
actions will add valued to the corporate and
industry governance.
Compliance Road Map
The evaluation and monitoring of internal and external
implementation is done through the Compliance Road Map
(CRM), a work and planning methodology of medium-term
activities associated with the Compliance Program, and
the Criminal Risk Prevention Model (CRPM). Its objective
is to monitor, evaluate, and improve Enel Chile's CRPM, as
well as contribute to the Group's Corporate Governance
and Sustainability Strategy. The CRM has several aspects
involving different stakeholders:
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5 Other Corporate
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6 Main indicators
7 Annexes
16 Activities include providing a copy of the Code of Ethics to all employees, creating sections on the Company's intranet devoted to the same topic, and inser-
ting an educational remark regarding its adoption into all contracts, among others.
Main activities carried
out.
• Associated with the New Law No. 21,595 on Economic and Environmental Crimes, which
establishes criminal liability of a legal entity, Directors and managers were trained on the main
changes and their impact on Crime Prevention Models, the modifications in responsibilities,
and the upcoming challenges in this area from the executive perspective.
• As a result of the above, Enel Chile held a new version of Ethics Week in September 2023. It
consisted of various dissemination and training sessions for workers, managers, directors,
suppliers, and contractors associated with the Enel Group's Compliance Program in Chile.
In addition, and as a result of the publication of the New Law No. 21,595 on Economic and
Environmental Crimes, Chile Transparente trained managers and workers at all levels on the
challenges currently faced by compliance programs and highlighting the importance of the
role of each one in the effectiveness of the Crime Prevention Model.
• The Company and its subsidiaries carried out training regarding the Criminal Risk Prevention
Model. These focused on preventing corruption and unethical conduct, using the Ethics
Channel, the Anti-Bribery Management System (ISO 37001:2016), and, in general, on
knowledge of the Company’s Compliance Program.
• A significant portion of the communications and training management focused on promoting
the usage of the Ethics Channel through publications and training that showed its use and
how employees use it. Their expertise was also strengthened through supplier-focused
events, press releases, and presentations.
• As a final step, Fundación Generación Empresarial voluntarily implemented the Barometer of
Values and Organizational Ethics, a tool to gauge the culture and perception of the Group
and facilitate material participation of Enel Group employees in Chile.
Communication and Training: Compliance Program Effectiveness
The Code of Ethics states that personnel management
policies are available to all workers through business
communication tools (intranet of the Company website,
organizational
documents,
and
dissemination
by
managers). Internal and external stakeholders can also
access it through specific communication activities16 to
guarantee a correct understanding of all employees.
The People and Organization Management prepares
and implements an Annual Training Plan following the
instructions of the Internal Audit Manager. It is aimed at
transmitting knowledge of the principles and standards.
Training initiatives are differentiated according to the
workers’ roles and responsibilities.
Throughout the period, the Company and its subsidiaries
maintained and implemented their communication and
training strategies, designed to disseminate the critical
parts of the compliance program and strengthen the
culture among employees and suppliers. Internal and
external actions were included in these plans, including
inductions for the Company’s new recruits, who received
Compliance Program-specific training. The training
activities also included the Company’s Directors.
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Integrated Annual Report Enel Chile 2023
1.
Commitment
2.
Due diligence
process
3.
Remediation
access plans
It is ariculated in:
• The strategic approach to human
rights in business operations
• The public commitment
expressed in the Human Rights
policy
• The integration of commitment in:
- operational policies and
procedures
-training topics and practices
• Governance
It is ariculated in:
• Identification of prominent
themes
• Managing featured topics
• The relationship with interest
groups: human rights in practice:
- Workplace
- recruitment and commercial
relations
- communities
- customers
- cross-cuting issues
It is ariculated in:
• The commitment to provide an
adequate solution in case of
impact
• Claim channels
• Repair of previous projects
2023 Training
Training in Anti-Corruption Policies
and Code of Ethics
Training in Sexual and Workplace
Harassment Policies and Practices
Company
No. of people
Training Hours
Scope
regarding the
total number
of employees
No. of people
Training Hours
Scope
regarding the
total number
of employees
Enel Chile(1)
498
1,842
87%
85
150
15%
Enel Distribución Chile and subsidiary
475
1,456
81%
113
221
19%
Enel Generación Chile and subsidiary
484
1,631
85%
108
150
19%
Enel Green Power Chile and its subsidiaries
297
1,092
85%
84
185
24%
Total
1,754
6,021
84%
390
706
19%
(1) Includes Enel X Chile.
Human Rights Policy
Respect for human rights is part of the very basis of
sustainable progress. Enel Chile's business model is
based on generating sustainable value together with its
internal and external stakeholders, continuous innovation,
the pursuit of excellence, risk reduction, and respect for
human rights throughout the value chain.
The leading international standards that inspire Enel
Chile's commitment are the United Nations framework
called Protect, Respect, Remedy, which translates into the
Guiding Principles on Business and Human Rights, and the
Guidelines for Multinational Enterprises of the Organization
for Economic Co-operation and Development (OCDE).
In accordance with these principles, the Company has
established a human rights management system that is
structured as follows:
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5 Other Corporate
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6 Main indicators
7 Annexes
17 The principles of Enel Chile's Human Rights Policy are inspired by the 1948 United Nations Universal Declaration of Human Rights, the 1950 European Con-
vention on Human Rights, the fundamental conventions of the International Labor Organization (ILO), the United Nations Convention on the Rights of the Child,
among others.
Assessmentof
Perceived Risk
GAP Analysis
Improvement plan
Action implementation
and monitoring
A
P
P
R
O
A
C
H
T
O
H
U
M
A
N
RI
G
H
T
S
D
U
E
DI
LI
G
E
N
C
E
S
T
A
K
E
H
O
L
D
E
R
IN
V
O
L
V
E
M
E
N
T
A
C
C
E
S
S
T
O
T
H
E
R
E
M
E
D
Y
The Human Rights Policy developed through a consultation
process involving people from the Enel Group worldwide,
including Chile and leading international and local experts,
clearly reflects the Company’s commitment. In 2021, the
Company’s Board of Directors approved the update of
this document to incorporate the evolution of the Group's
international reference frameworks and operational,
organizational,
and
management
processes.
The
document strengthens and expands the commitments
already present in the Code of Ethics, the Zero Tolerance
with Corruption Plan, the Criminal Risk Prevention Model,
and labor and environmental policies, among others, with
an integrated and transversal application in all relations
with the Company’s stakeholders.
The
Human
Rights
Policy
defines
12
principles17
divided into two macro themes: Labor Practices
together with Communities and Society related to
the Company’s management. The document focuses
on how environmental issues and climate change are
interconnected with human rights since implementing
measures to mitigate their effects cannot be carried out
without considering their social impact.
Enel Chile and its subsidiaries promote respect for
human rights in all their current and potential business
relationships and the adherence of its contractors,
suppliers, and business partners to the same principles,
paying particular attention to conflict and high-risk
situations, incorporating them into the Company’s risk
assessments according to their materiality.
Enel Chile is committed to monitoring the implementation
of the Human Rights Policy by carrying out due diligence
processes, promoting conduct consistent with a just
and inclusive transition, and improving communication
concerning the action plans developed to prevent and
remedy situations in which critical problems could arise.
Specifically, the due diligence process of the management
system, which is structured in a maximum of three-
year cycles and has been developed following the main
international standards, has made it possible to identify
opportunities for improvement and develop specific
action plans accompanied by a global improvement
plan to harmonize and integrate processes and policies
throughout the Enel Group.
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Integrated Annual Report Enel Chile 2023
TAX
TRANSPARENCY
Enel Chile accepts accountability for assuring compliance
with Enel Group's Tax Strategy, which is founded on a set
of principles and guidelines that are motivated by the
values of transparency and legality in tax management. By
endorsing this approach, the Board of Directors hopes to
establish a consistent approach to tax administration for
every subsidiary of the organization.
Compliance
The Company adheres to the principle of legality, promptly
applying tax laws to ensure that the applicable tax rule or
regime is fully respected. Similarly, Enel Chile refrains from
participating in domestic or cross-border activities that
involve creating artificial structures solely to obtain unfair
tax benefits, especially when such actions contradict the
purpose or principles of the relevant tax regulations or
system.
Transaction between related companies
All intercompany transactions follow a transfer pricing
policy, which the Enel Group has adopted in line with
the arm's length principle, an international standard
established by the OECD Fiscal Agreement Model.
By establishing intercompany relationships based on
market prices and conditions, the Enel Group guarantees
the generation of value in the locations where it operates.
The Group recommends that members of the Enel Group
enter into agreements with local tax authorities regarding
establishing transfer pricing methods, allocating profits
and losses to permanent establishments, and applying
rules on cross-border flows to minimize tax risks and
comply with applicable regulations.
For business-to-business financial transactions, the Enel
Group has adopted a centralized financing model for
its subsidiaries, which requires the Group's two financial
companies, Enel Finance International (EFI) and Enel
Finance America (EFA), to group part of the treasury and
financial market access activities, to act as the main
point of reference in the management of the financial
or liquidity needs generated by the operating entities. In
the transactions that Enel Chile has or may contract with
both financial companies, these intercompany debts may
be recorded either at amortized cost, using the effective
interest rate method, or at fair value as required by
International Financial Reporting Standards (IFRS No. 13).
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6 Main indicators
7 Annexes
Tax Jurisdiction
The Company does not invest in or through countries
considered tax havens. Such investments may only be
proposed if they are supported by well-founded economic
and strategic reasons and are aimed at developing the
activities included in the Group's corporate purpose.
Tax Incentives
Enel Chile only uses broadly applicable tax incentives,
respecting all specific regulations and ensuring that the
incentives align with industrial and operational objectives
and are consistent with the economic substance of the
investments.
Tax Governance
Enel Chile's Tax Affairs Department is responsible for
implementing the Company’s tax strategy. It is responsible
for managing and ensuring compliance, planning, and
monitoring of this matter at the local level.
In addition, the Company has adopted a set of rules,
procedures, and standards that are part of the Enel
Group's broader system of organization and control.
These are applicable both at the Group and local levels of
each subsidiary. These documents are published on the
Company’s Intranet. They are accessible to all employees
and constitute the general rules of conduct applicable in
tax matters for the development of its activities.
Furthermore, there are specific organizational documents
– both globally and locally – on tax compliance processes,
tax planning, tax monitoring, transfer pricing, and tax risk
management.
Tax Risks
To provide clear and consistent guidelines to address
an effective approach to tax risk management within
the Company, Enel Chile has put in place a Tax Control
Framework (TCF), which establishes guidelines and
methodological norms to evaluate, control, and coherently
manage tax risk following the principles and procedures
set out in the tax strategy.
The TCF seeks to identify potential sources of tax risk
within the context of ensuring compliance with the relevant
legislation. To accomplish this, it maps out the pertinent
procedures and activities, identifies potential risk events,
and applies control measures. This is done regularly, and
the results are communicated to the relevant corporate
departments and entities to determine the best strategy
to manage these risks.
Transparent relationship with tax authorities
Enel Chile promotes transparency and integrity in its
relations with the tax authorities. It collaborates with all
institutions and associations to implement an effective
tax system. Since 2018, it has published the Total Tax
Contribution Report every year, available on the website,
which can be found at the following link https://www.enel.
cl/es/sostenibilidad/nuestro-compromiso/transparencia-
fiscal-y-reporte.html.
Enel Chile has implemented internal channels to facilitate
possible complaints in the event of tax violations. The
Company follows the Code of Ethics as the overarching
framework. It comprises pertinent provisions that
guarantee the code's effective implementation and
requirements that must be considered in relation to the
tax strategy.
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Integrated Annual Report Enel Chile 2023
A few figures(*)
Figures in Ch$ million
2023
Income from sales to third parties
4,056,262
Income from intra-group transactions with other tax jurisdictions
307,750
Pre-tax profit/loss
906,926
Tangible assets other than cash and cash equivalents
7,119,237
Corporate income tax paid
289,024
Corporate income tax accrued.
(220,367)
(*) The figures consider the companies that make up the consolidation scope of Enel Chile.
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3 Strategy and Risk
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5 Other Corporate
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6 Main indicators
7 Annexes
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Integrated Annual Report Enel Chile 2023
3.
STRATEGY AND RISK
MANAGEMENT
●Enel Chile Strategy
The long-term goal of the Enel Chile Group is to achieve zero
CO2 emissions by 2040. To achieve this goal, the company
focuses on two main areas: the decarbonization of the energy
matrix in Chile and the increase in electrification in the final
consumption of users.
●Integration of sustainability in the business model
Enel Chile incorporates the expectations of its stakeholders
into the Company's strategy, which have been identified
during the materiality process.
●Risk management
Understanding the economic, environmental and social
environments is essential to recognize external or internal
elements that could represent potential risks for the
Company's business.
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1 Enel Chile Group
4 Enel Chile's Business and
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5 Other Corporate
Information
6 Main indicators
7 Annexes
18 Generators of Chile Bulletin Source: https://generadoras.cl/media/page files/2658/BoletinGeneradorasdeChile_noviembre2023_vf_compressed.pdf, SEN
Monthly Report https://www.coordinador.cl/wp-content/uploads/2023/12/CEN_Informe_Mensual_SEN_dic23.pdf; Storage Study https://www.coordinador.cl/
wp-content/uploads/2023/09/2308-Estudio-de-Almacenamiento-2023.pdf.
MACROECONOMIC
AND MARKET
CONTEXT
Chile is committed to the Paris Agreement and formally
indicated its commitment to CO2 neutrality by 2050.
Decarbonization and electrification will be critical drivers
for Net Zero. From this perspective, the evolution of
energy demand will be linked to the potential penetration
of electricity in the country's energy consumption.
In this regard, it is worth mentioning the country's current
electric mobility policy, which includes Santiago's public
transportation system and charging point infrastructure,
both of which Enel Chile has funded and designed in
collaboration with its strategic partners.
At the same time, the market scenario has been
complex in recent years, with contingencies such as the
pandemic, the Russia-Ukraine war, faster-than-expected
adverse climate change outcomes, and inflationary
pressures, among others. These variables have also had
a direct impact on Chile's energy sector, presenting both
challenges and opportunities.
The country's energy agenda is broad, considering not
only issues related to the fulfillment of long-term national
commitments on climate change but also some structural
reforms needed in the short term to ensure the balance of
the system. For example, the energy storage framework
and the review of the system's operation in the short term
are necessary to further replace oil and coal thermal power
plants with renewables and batteries.
In terms of electricity distribution, the Chilean market
acknowledges that there is an opportunity to upgrade
the regulatory framework. The change in consumer
expectations and the investments required to meet the
need for electrification are critical issues that Enel Chile
prioritizes.
An attractive growth opportunity
The country has an extraordinary potential for renewable
sources. According to the National Energy Policy and the
government's Net Zero commitment, 80% of installed
capacity is estimated to be renewable by 2030. Energy
demand is expected to grow by 22% compared to
2023, reaching 95 TWh in 2030, underpinned by the
potential growth of energy consumption compared to
more developed economies and the commitment to
decarbonization, digitalization, and electrification. At
the end of November 2023, the National Electric System
(SEN- Spanish acronym) registered 34,672 MW of installed
capacity, of which 1,213 MW corresponded to projects
with start-up tests and also where 62% corresponded to
renewable energy, with 7,047 MW of renewable projects
in the construction stage and other renewable projects
under environmental study for 14,043 MW. The country
is consolidating its position as a leader in the region in
the clean energy segment, helped by its geographical
characteristics, which allow it to have great potential in
terms of renewable energies and storage capacity, which
added to the global need for clean energy, will contribute
to Chile becoming a competitive and relevant player in
the renewable energy and green hydrogen industry in the
forthcoming years18.
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Integrated Annual Report Enel Chile 2023
The environment demands a paradigm shift and
challenges for the industry, and the Company is taking
the opportunities to continue growing and including
sustainability at the core of its strategy. Changing trends
in young customer behavior, as well as new requirements
from large customers for clean energy and sustainable
energy services, represent a growing opportunity for
Enel Chile, which can provide an integrated approach to
renewable energy, electrification, and electromobility.
Green hydrogen generation may also play a significant
role in the medium term. In addition to asset rotation
mechanisms, they can be critical in increasing the value
of the assets in the portfolio and boosting the Company’s
financial position to capitalize on new possibilities that
arise in the country.
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4 Enel Chile's Business and
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5 Other Corporate
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6 Main indicators
7 Annexes
ENEL CHILE'S
STRATEGY
Enel Chile Group’s long-term objective is to achieve its
goal of zero CO2 emissions by 2040. To reach this goal,
it is necessary to work on two fronts - decarbonizing the
energy matrix in Chile through the construction of new
renewable power plants, disconnecting thermal capacity
from the system, and increasing the electrification of
users' final consumption.
As electrification has become an essential driver to achieve
the goal of zero emissions, the Company has developed
and strengthened a commercial offer that is increasingly
focused on customers' needs, understanding their
requirements and focusing efforts, putting the customer
at the heart of the Company’s efforts.
The integrated supply approach enables the supply of
electricity from renewable sources and integrated services
for customers, supporting them in their climate ambitions,
efficiency needs, and reliable supply.
Electrification is crucial to achieving the Company’s
objectives, and grids will also play an essential role in this
process.
On the consumer, homes, and cities side, the Company
has also been developing a wide range of products to
bring the concept of circular cities and, with that, make
the lives of its customers easier and better.
Every year, Enel Chile updates its strategy for the next three
years. On November 27, 2023, the Company published its
new 2024-2026 Strategic Plan, as described below.
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Integrated Annual Report Enel Chile 2023
1.
Resilience, flexibility
and value generation
Optimize selective capital
allocation, strengthening its
resilience and flexibility
2.
Efficiency and
effectiveness
Drive excellence, efficiency and
effective response of your assets
3.
Financial and
environmental
sustainability
Pursue value creation and
financial strength while
addressing climate challenges
Enel Chile as an integrated, sustainable and value-based energy and electrical
services company
STRATEGIC PILLARS AND VALUE PROPOSAL
2024-2026 Strategic Plan
The following are the strategic pillars on which Enel Chile will focus its efforts to enhance its value as a sustainable and
integrated company.
First, the Company will continue to actively manage the
portfolio it has developed over the past few years to drive
resilience, flexibility, and value across its asset base. This
includes:
• The renewable capacity added since 2021 and which will
continue to be developed through a selective allocation
of capital, according to new market conditions.
• The continuous optimization of the operation of its
combined cycle plants and gas sale activities thanks to
the increased availability of Argentine gas and its long-
term LNG supply contract.
• The net effect of the sale of capital gains of Arcadia
Generación Solar S.A., registered last October, and the
use of these proceeds to reduce debt.
Second, Enel Chile will continue to promote efficiency and
excellence in all its business segments, including strict
operating cost discipline, to enhance the Company’s
profitability and value.
Third, the Company will focus on boosting its financial
position through sustainable growth and taking advantage
of market opportunities to add value for all.
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Continue
developing
various
initiatives
Rebalance the porfolio to diversify and have a beter risk-return profile in a
new market context
Integrated offer
approach (beyond
commodities)
Diversified and
selective source
location and
technologies
Leverage parnerships
(retain control and
improve returns)
Balance the porfolio
through de-risk
(commodities and
energy))
Build a solid, resilient, flexible and profitable porfolio
Resilience, flexibility, and value creation
Generation business segment
In recent years, the Company has carried out several
management actions in the generation business, which
will continue in this new Strategic Plan.
For example, Enel Chile will continue with a selective and
diversified supply strategy, investing in wind and solar
installations close to consumption centers and through
Small Facilities of Distributed Generation (PMGD – Spanish
Acronym). It will increase its capital allocation towards
more flexible technologies, such as batteries, to help meet
new market dynamics.
In addition, considering the size of its operations, the
Company will continue adding new flexibility and efficiency.
Enel Chile's priorities are to continue balancing its supply
portfolio, analyzing electricity and raw materials in an
integrated manner, and protecting its margins.
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Integrated Annual Report Enel Chile 2023
1 The average price of the PPA includes only energy in sales in the regulated and free markets.
2 Average spot price in Alto Jahuel 220 kV.
Integrated power margin evolution
(USD bn)
2023
2023
2026
2026
Regulated
Market
PPA
Free
Market
PPA
Thermal
variable
cost
PPAs
Buys
Spot
price
0.9
0.7
0.5
0.3
0.1
0.3
~1.3
Flexible and optimized supply
Commercial strength
B
Unitary indicators
Avg. PPA
Price1
Supply Avg.
Spot Price2
(USD/MWh)
75
65
46
26
81
47
~2.3
~2.2
~1.4
~0.9
30.9
33.4
Revenues
(USD bn)
Energy sales
(TWh)
Supply cost
(USD billion)
Commercial strength,
together with selective
growth, allows margins to
increase despite the
terminations of regulated
PPAs in 2024-25.
Strengthen the integrated generation margin as the core of the strategy
Some regulated contracts will end in 2024 and 2025,
including the 2008 auction at the end of 2024 and the
2006 and 2013 auctions at the end of 2025. This will
lead to an expected decrease in the Company’s average
contracted portfolio when comparing current figures to
2026.
Over the previous two years, the Enel Chile Group evaluated
a variety of possibilities to develop the most effective
strategy for the Company and adapt to the situation. This
way, the upward trend in current electricity rates creates
a new market opportunity for long-term contracts on
the free market. This is an exciting opportunity for the
Company to sign profitable long-term contracts on the
free market, providing not only a solution by 2026 but also
greater predictability to its shareholders in the medium
and long term.
Furthermore, the gas supply strategy and its vision of the
market in terms of spot prices will lead to significant value
creation.
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7 Annexes
Business strategy provides sales growth and integrated sales opporunities
Enel X main products
Energy sales
(TWh)
Regulated market
sales
Free market sales
2023
2026
62%
76%
30.9%
33.4%
38%
24%
1 Accumulated numbers.
2 Includes assistance services, air conditioning and photovoltaic panels.
A
e-Home
services2
(‘000#)
Heating
replacement1
(‘000#)
PV1
(MWp)
Demand
response
(MW)
2023
2026
2023
2026
4.0
10.0
21.6
82
8.0
14.7
47.4
172
B2C
B2B
The new
integrated sales
aim to harness the
positive
momentum of the
free market to
identify and pursue
profitable
investment
opporunities
INTEGRATED OFFER
PPAs geographic
location
Porfolio by
off-taker
PPAs by residual
duration
2023
32%
23%
57%
20%
27%
64%
9%
24%
4%
19%
77%
45%
28%
33%
38%
30.7
TWh
33.4
TWh
A
Build a solid business strategy backed by long-term visibility, diversification and
strong buyers
Regulated sales
Free customer sales
Sales to market mining
2024-26
2027-31
>2032
2026
2023
2026
+8%
Continue increasing presence in more
resilient and profitable sectors.
Geographic diversification to reduce
price exposure
10 years average duration
Norh
Center
South
The contract portfolio is evolving to be more geared
towards the free market.
At the same time, its integrated offer allows the Company
to offer integrated products and services to its customers
in regulated and free markets, helping them to go through
the electrification process, in line with Enel Chile's strategy
of going beyond selling electricity.
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1 External scenarios: PELP (Long-term Energy Planning – Energy Ministry), EnerData, IEA (International Energy Agency), and others.
2 By November 2023.
SEVERAL ELECTRIFICATION
SCENARIOS FOR CHILE1
2020
2025
2030
2035
2040
2045
2050
B
PORTFOLIO OF RENEWABLE
PROJECTS UNDER STUDY BY
STATE OF PROGRESS2
(GW)
Significant potential growth in energy demand in Chile
~9
~8
~3
~5
~2
~5
~4
~10
Total
Early
stage
Mature
stage
BESS
Wind
Solar
Leverage third-pary parnerships to increase perormance and provide options, retain control of assets, optimize capital
allocation and improve financial position.
Max
External
Scenario
(TWh)
Min
External
Scenario
(TWh)
~400
Enel’s energy
transition
Roadmaps
scenario
(TWh)
~8
~9
~12
~5
~4
~10
~29
~10
~19
77
~120
~3
~5
~2
Over the last few years, the Enel Chile Group has
developed a diversified portfolio of long-term contracts
in its generation business, including regulated and free
customers. This strategy, supported by a diversified
renewable generation (Power Purchase Agreement-PPA)
mix, has allowed it to increase its share in more resilient
and profitable business segments, including the mining
sector and other industrial customers that form part of
the free market.
Considering sales targets, its contract portfolio is expected
to increase by 9% between the end of 2023 and 2026.
Another relevant strength of its commercial strategy is the
geographical diversification of its buyers, which reduces
exposure to price volatility significantly, which is very
important in a market with bottlenecks in the transmission
infrastructure.
A fundamental quality of this portfolio is related to its long-
term structure, with an average duration of 10 years, which
allows the Company to ensure a significant level of stable
revenues and EBITDA in the following years.
According to the different scenarios put forward by various
sources external to the Company, demand will potentially
grow significantly in the forthcoming decades, some more
than others. However, there is still consensus on the vast
potential in terms of energy that will be needed to meet
domestic demand, including a peak in electromobility,
the national green hydrogen strategy that the country
is pursuing, and the employment of safer and cleaner
energies in the national mining industry.
This is a clear opportunity, and the Enel Chile Group
has a solid project portfolio, well diversified in terms of
technologies and locations that support these scenarios,
to take advantage of and respond quickly to the needs
of this market while maintaining the Company’s financial
sustainability.
That is why Enel Chile will seek to promote partnerships
to implement the growth ambitions set out in its strategy,
with a higher return on investment and full eligibility for
defined risk hedging/evaluation.
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6 Main indicators
7 Annexes
TOTAL INVESTMENTS IN GENERATION:
OLD VS. NEW PLAN
(USD bn)
NET CAPACITY BY
TECHNOLOGY
35%
21%
8%
37%
9.9 GW
2026
Capital allocation in generation designed to provide flexibility and
maintain financial sustainability
Development Others
Thermal
Hydro
Renewable (ex. Hydro)
BESS
34%
Total
Total
0.3
0.5
0.2
0.2
1.1
0.3
0.2
0.7
0.2
1.3
1.4
1.9
0.5
1.4
0.3
1.1
Additional capacity
2023-25
(GW)
2023-25
Old plan
2024-26
New plan
Additional capacity
2024-26
(GW)
B
Enel Chile will continue to concentrate most of its efforts
on reshaping its portfolio, considering two factors in the
context of the rapid growth of the renewable presence
in the country: flexible technologies and a diversified
geographical location.
The Company is increasing capital allocation to more
flexible technologies. There are already some projects
under construction, including the development of storage
systems and new renewable facilities, such as the La
Cabaña wind project, located in the south of the country,
and two solar projects, El Manzano and Don Humberto,
situated in the Metropolitan Region.
In keeping with this, the total generating CAPEX plan
for the next three years is US$1.9 billion, which includes
US$1.4 billion for project development across several
technologies. The Company will continue to build
additional projects to add 1.3 GW of capacity by the end
of 2026, significantly increasing the use of storage in its
energy mix.
The Enel Chile Group is developing a partnership-based
strategy to maintain asset control while preserving its
financial sustainability. The Company is considering
forming partnerships while maintaining control to develop
future renewable projects to support capacity growth. This
restructuring of capital allocation is projected to provide
greater flexibility and optionality, leading to higher returns
and a lighter capital structure.
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Distribution and networks business segment
Continue
developing
various
initiatives
Building an effective and efficient porfolio to continue
supporing electrification
Continue working
with authorities in
the regulatory
framework update
Investments tied
up on quality,
resiliency and
profitability
Customers digital and
self-service system
Effective customer
communication
channels
Continue remodeling network operation, seeking additional
efficiencies with a more constructive vision
Enel Chile is committed to its business model and
long-term ambition of decarbonizing and electrifying
customers' final consumption in the upcoming decades.
In recent years, the Company has developed a strong
business strategy geared towards new solutions for
customers through a more comprehensive integrated
offering, in addition to an improved platform-based
business model (websites, apps, email, social media,
WhatsApp) for customers, service, and support.
The grids' resilience and efficiency have been fundamental
principles of the Company's digitalization strategy,
making investments accordingly in recent years. Given the
current context, Enel Chile’s efforts will remain focused
on supporting electrification, mainly by reshaping the
operation of the grid for additional efficiencies, along with
other investments in digitalization.
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6 Main indicators
7 Annexes
TOTAL INVESTMENT PLAN
(USD bn)
MAIN INDICATORS
35%
17%
46%
37%
2024-2026
0.3
Resilience and quality in distribution as a key
driver for clean electrification
Quality, Resilience and
digitization
Grids management
Connections
1.3
2.1
1.4
2.2
+7%
14.3
15.4
2023
2026
-19%
55
45
2023
2023
2026
2026
Energy Distributed1
(TWh)
OPEX /customer2
(USD/cl)
SAIFI3
(#)
End users
(mn)
1 Data only for Enel Distribución concession area.
2 Ordinary effects in real terms and the same exchange rate for comparative purposes.
3 SAIFI average LTM (Last Twelve Months). Values are subject to changes as a result of the approval
process from the corresponding regulatory authority.
To support electrification, the Company must be both
resilient and efficient. For the 2024-2026 period, the
Company has earmarked US$300 million in CAPEX
to secure additional connections and reconfigure its
networks, emphasizing quality and digitalization.
Most of the Company's CAPEX will reach new connections
as its customer base grows and electrification evolves in its
concession region. It expects to boost energy distribution
in its concession geographical area by approximately 8%
by 2026, with a 2.2 million end-user customer base.
Grid management will account for 37% of CAPEX, aiming
to accelerate the transformation of power distribution
networks to create sustainable and dependable smart
grids.
Around 17% of the Company's investment will focus on
improving the quality of its networks and increasing
digitalization.
It is important to highlight Enel Chile’s efforts to make its
processes more efficient. The OPEX ratio per customer will
decrease by 19%, reaching US$45 per customer by 2026.
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CUMULATIVE TOTAL
INVESTMENT PLAN
(USD bn)
TOTAL INVESTMENT
ALLOCATION
(USD bn)
44%
25%
1%
15%
15%
2024-26
2.3
New investment plan to improve porfolio resilience
Renewables
Thermal
BASS
Grids
Others
2%
18%
10%
9%
62%
2023-25
1.7
New plan 2024-26
~0.8 0.8
0.7
0.7
0.9
~0.7
~0.3
Old plan
2023-25
Old New
New
2023
2024
2025
2026
Old New
Old New
2024-2026 Consolidated Investment Plan
For the 2024-2026 period, Enel Chile intends to allocate
US$2,300 million in line with its investment plan. Sustaining
the commercial strategy's profitability, this investment
will primarily concentrate on the generation business via
renewable development, keeping with the approach taken
a few years ago. Most initiatives will be implemented in
partnerships to support decarbonization efforts while
ensuring a stable and sound financial standing.
The Company will allocate more than US$300 million
to continue improving its grids, quality of service and
resilience, and its wide range of products and services,
which are increasingly aligned with our customers’
evolving needs.
The 2024-2026 plan includes a moderate investment
increase compared to the previous plan. This is mainly
explained by better current market conditions with more
attractive expected returns. Therefore, its CAPEX levels
have returned to the levels of previous years and will be
allocated primarily for the growth of renewables.
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2026 Vision
A selective
renewable platform
centered on
flexibility and
profitability
Enhance grids’
quality, resiliency
and efficiency
Suppor and promote
electrification
Value-driven proposition that will lead to strong operational
positioning in 2026
REN Capacity1 (GW)
REN capacity over total1 (%)
Emission-free production (%)
Energy sold in Gx2 (TWh)
Distributed Energy3 (TWh)
SAIFI4 (#)
Energy Losses5 (%)
Electrification6 (GWh)
6.5
77%
74%
30.9
14.3
1.3
5.3%
598
7.8
79%
82%
33.4
15.4
1.4
5.5%
3.430
2023
2026
1. It includes renewable capacity and BESS;
2. Includes sales to regulated and free clients in the generation business;
3. Data only for Enel Distribución concession area;
4. SAIFI average LTM (Last Twelve Months);
5. Energy losses average LTM (Last Twelve Months);
6. GWh since 2019. Cumulative figures. Includes all e-buses, charging points through Enel X Chile and Enel X Way Chile, full electric buildings and air
conditioning / heating sold.
Renewable capacity will reach 7.8 GW, approximately 79%
of total generation capacity, and emission-free production
will potentially reach 82%.
Energy sales will reach approximately 33 TWh in 2026,
covered by an efficient and balanced portfolio through
renewable and thermal production plus long-term PPA
purchases.
The grid business will remain stable in terms of quality
indicators, and an increase in consumption is expected,
in addition to a potential improvement in the dynamics of
the regulatory cycle for the 2024-2028 cycle, which is not
considered in the Company's plan figures.
The Enel Chile Group will continue to see additional value
creation from its integrated offering strategy, increasing
its electrification KPIs to more than 3.3 GWh in 2026
compared to 2019, a noteworthy indicator highlighting the
progress of the Company’s electrification strategy.
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EBITDA
(USD bn)
Net profit
(USD bn)
Dividen policy
(%)
1.2
0.8
Min 50%
1.2
0.6
Min 50%
1.3-1.5
0.5-0.7
Min 50%
1.3-1.5
0.4-0.6
Min 50%
2023
2023
Proforma1
2024
2026
FINANCIAL OBJECTIVES OF THE STRATEGIC PLAN
1. Excludes the net effect of Arcadia’s sale capital gain of 0.16 USD bn
As a result of the above, the Company's Board of Directors,
in a meeting held on November 23, 2023, approved Enel
Chile's 2024-2026 Strategic Plan. The macro-elements of
the Strategic Plan for the 2024-2026 triennium foresee a
cumulative EBITDA of between US$ 4.2 and US$ 4.4 billion
and a cumulative CAPEX of roughly US$ 2.3 billion.
Given that the contents of the aforementioned Strategic
Plan obey and are based on projections of hypotheses
that may or may not be verified in the future, its effects are
not determinable at this date.
In terms of shareholder remuneration, Enel Chile has
confirmed a dividend payment ratio of the previous plan,
a minimum of 50%, leaving room for a possible increase
depending on future opportunities and market conditions,
always guaranteeing the Company's financial sustainability.
This plan will be further discussed with all shareholders
during the Annual Shareholders' Meetings that will take
place each April.
The Company is certain that this dividend policy will allow
it to continue its sustainable strategy, maintaining an
adequate financial position and creating long-term value.
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6 Main indicators
7 Annexes
Future Opportunities
Long term
value
proposition
SHORT AND LONG TERM OPPORTUNITIES
NOT INCLUDED IN THE PLAN
A unique integrated value-driven company in Chile leading energy electrification, and
decarbonization, reaching zero emissions by 2040
…and there is still
much to come
Green hydrogen
potential
BESS adoption
Furher and fast
electrification
Structural reform in the
distribution and
generation businesses
Enel Chile's value proposition will be reinforced in the long
run by its status as a unified, integrated electricity supplier,
which will make it possible to address our forthcoming
challenges and capitalize on opportunities, such as those
presented by the electrification of consumption and
decarbonization of the matrix, in pursuit of our objective
of producing zero emissions by the year 2040 more
efficiently.
But there are many more things to come, such as:
• The country's green hydrogen potential and power
companies are in the right place to benefit from this
new industry.
• The massification of batteries in the electricity system
is still pending. Undoubtedly, this technology will be a
crucial element in the Chilean system in the future.
• This is why the energy transition and electrification
processes are changing the model and why it is
necessary to carry out structural reform in both the
generation and distribution businesses, which could
lead to additional opportunities.
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Integrating sustainability into the business model
As a result of the context and material issues analysis,
the Company defines its course of action by integrating
sustainability management into the business throughout
its entire value chain.
These actions are embodied in the sustainability plan,
presented annually to the Board of Directors, and
constitute the roadmap to address the expectations of
stakeholders and the market.
The 2024-2026 Sustainability Plan
It represents the Company's strategic lines of action and is
divided into six interconnected macro areas.
1. Zero Emissions Ambition: Bring the "zero emissions"
goals forward to 2040.
2. Clean electrification: enable the electrification of
customers' energy demand, offering a reliable and
sustainable service.
3. People: create long-term value with and for all our
stakeholders, helping them grow and face challenges.
4. Nature: promote the protection of natural capital,
which has a special focus on biodiversity.
5. Growth accelerators:
empower
and
accelerate
sustainable progress through innovation, digitalization,
and the circular economy.
6. Sustainability fundamentals: support governance,
respect and promote human rights, and continuously
improve health and safety objectives.
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7 Annexes
Human
Rights
Nature
People
Customers
Communities
Suppliers
Financial community
Institutions
Media
Enel People
Innovation
Circular economy
Digitalization
Growth
Accelerators
Business and trade
associations
Sustainable finance
Zero emission
ambition
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Zero emissions ambition. It includes actions of the business model aligned with the objective of not
exceeding the temperature increase of 1.5 degrees Celsius compared to pre-industrial levels. To reach this
ambitious goal, the Company will not offset emissions, based on the process of decarbonization of the
generation matrix, thanks to new renewable capacity and the hybridization of renewables with storage
solutions.
Clean electrification. Enel Chile is committed to the electrification of energy demands, in which people play
an active role in the transition to greener energies through everyday choices. Strategic actions, supported
by a digitalized platform capable of managing a large customer base, will lead to value creation by allowing
a reduction in energy expenditure and the carbon footprint of its consumers, thereby considerably and
tangibly improving everyone's quality of life.
People. The Company's dedication to its stakeholders, including employees, suppliers, community members,
and customers, is central to its operations. Addressing the needs of individuals most affected by the shift to
a decarbonized economy is crucial, focusing on their requalification and reconversion to help build a more
robust ecosystem. For the people who work at Enel Chile, the Company is also committed to promoting
an diverse and inclusive environment through capacity building. Establishing strong connections with the
communities where the Company operates is a vital part of the strategy, promoting social and economic
growth. There is a growing emphasis on sustainability in the supply chain by integrating environmental,
social, and governance criteria.
Nature. The challenge posed by climate change is the strongest obstacle for people. Incorporating strategic
considerations such as environmental preservation and natural resource protection, climate change
mitigation, and sustainable economic development contribute to the planning, operation, and expansion
endeavors of Enel Chile. Environmental sustainability, in conjunction with decarbonization efforts, entails
a daily dedication to the preservation and conservation of nature and biodiversity through the reduction
and mitigation of potential negative impacts on the planet that may result from the various operations of
Enel Chile.
Growth accelerators. They are fundamental tools to increase and broaden the range of action to achieve
the Company's objectives, covering and strengthening the sustainability strategy’s issues.
The Innovation facilitates the integration of sustainability into all aspects of the business, playing a central
role in responding to the needs of our stakeholders and expanding the scope of the impacts of our
strategy. Another issue closely related to the challenges of the business model is the circular economy. This
accelerator aims both to reduce the consumption of materials along the entire value chain and to develop
circular business models and new solutions, such as exchange platforms. A key element to strengthen the
strategy is cybersecurity, the basis of digital transformation necessary to increase resilience, and digital
supports, i.e., platforms and tools that make the daily activities of those who work in the Company more
sustainable.
Sustainability fundamentals. The commitment to respect human rights throughout the entire value chain,
including people’s well-being, health, and safety, is at the heart of the Company's strategy to contribute
to sustainable progress. Strong governance is the foundation of sustainable success and is intrinsically
linked to a corporate governance structure incorporating ESG aspects into key corporate decision-making
processes.
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SDG
Enel Chile's commitment
Guaranteeing access to affordable, secure, sustainable, and modern
energy
• Several years ago, the Enel Group invested in generating plants with
100% renewable technology, aiming for affordable, safe, sustainable,
and modern energy (SDG 7). Enel Chile continues its growth plan
through this process, adding 1.5 GW of renewable energy by 2026
compared to 2022.
Building resilient infrastructure, promoting sustainable
industrialization, and fostering innovation
• For this renewable electricity to reach customers, Enel Chile needs
a solid, digitized, and resilient infrastructure for this renewable
electricity to reach customers' homes. Following this principle, and
in line with SDG 9, the Company focuses its investments on grid
digitalization and service quality.
Sustainable Cities and Communities
• The urbanization phenomenon challenges the electricity industry to
contribute to the sustainability of cities, allowing citizens to opt for
different services that generate less contamination and are inclusive
and affordable. In line with SDG 11, Enel Chile has invested in a series
of new services aimed at electrification and digitalization.
Climate Action
• To comply with SDGs 7, 9, and 11, the Company has adopted a
business model in line with the SDG 13 targets of "Climate Action,"
highlighting investments to reduce direct emissions and customers'
carbon footprint.
• Decarbonization and energy transition are part of the Enel Group's
strategic principles. Along these lines, Enel Chile foresees a reduction
in CO2 emissions, achieving a specific emission of less than 105
grams of CO2 per kWh by 2026 to reach Zero Emissions by 2040.
Commitment to the Sustainable
Development Goals
As part of the Enel Group, Enel Chile has made a
commitment to 4 of the 17 Sustainable Development Goals
(SDGs) announced by the United Nations in 2015 through
its business model, without excluding contributions to the
remaining goals.
This commitment to the SDGs stems from defining the
sustainable business model focused on the just energy
transition process and is reflected in the investments of
the business lines.
The SDGs to which Enel Chile is committed are as follows:
Stakeholders and Material Issues
Understanding and incorporating the expectations of
its stakeholders into the organization's mission is of the
utmost importance to Enel Chile. For this reason, Enel
Chile annually, in collaboration with its parent company,
undertakes
a
procedure
wherein
concerns
about
governance, environmental, and social dimensions are
identified, evaluated, defined, and ranked in conjunction
with its stakeholders. This process also considers the
financial significance as specified in General Standard No.
461 (NCG No. 461).
The primary focus of this standard is financial materiality,
which mandates that companies disclose information that
can influence investors' decisions or results. To achieve
this, the standard incorporates the sustainability disclosure
indicators established by the Standard Accountability
Sustainability Board (SASB). These indicators identify the
subset of environmental, social, and governance concerns
most pertinent to financial performance and are deemed
financially material to investors.
In light of the dynamic nature of the concept of
materiality, Enel Chile has broadened this viewpoint
since 2022 by incorporating the significance of both
the generated and experienced impacts (the notions of
financial materiality and materiality of impact) through
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Integrated Annual Report Enel Chile 2023
the application of the concept of "double materiality."
• Materiality of impact: a concept developed by the GRI
2021 standard, it analyzes and identifies material issues
from the point of view of the impacts generated by the
Company, that is, the effects that the organization has
or could have on the environment and in relation to all its
stakeholders, which in turn can indicate its contribution
(negative or positive) to sustainable development.
• Financial materiality: in line with the leading publications
currently available (EFRAG, SASB, ISSB), material matters
are analyzed and identified from a financial point of
view, i.e., those that affect or could affect the Company's
operating results and are therefore more relevant to
investors. Thus, the analysis of the most significant
impacts guides the identification of material issues
for the Company, and these priority issues direct Enel
Chile's future efforts, aligned with its business strategy.
Stakeholders
The Company is set on maintaining a continuous and
close dialogue with its stakeholders to generate areas
of collaboration, development, and trust, constituting
a cornerstone of its strategy. This approach seeks to
identify the drivers that allow sustainable, competitive,
and safe energy models, as well as to develop innovative,
exhaustive, and pioneering perspectives to anticipate
events, manage risks, and seek differentiation. In short,
Enel Chile believes that management and dialogue with
stakeholders contribute to:
• Improving risk and opportunity management;
• Identifying relevant trends and issues early;
• Enhancing credibility and trust, allowing the creation of
synergies;
• Facilitating decision-making processes;
• Finding opportunities for improvement and business.
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Dependence
Influence
5.0
2.5
0
2.5
5.0
Business Community
Civil Society and local
and global communities
Customers
Financial Community
Institutions
Media
The people of Enel
Suppliers and contractors
As part of their activities, the Company's managers
are responsible for the ongoing management of their
stakeholders.
Every year, Enel Chile identifies, reviews, and maps its
stakeholders through internal consultations with the
leaders of the different areas and business lines. In 2023,
stakeholders were grouped according to their relevance
to the Company, following three variables:
• Dependency: groups or individuals directly or indirectly
dependent on the Company's activities, products, or
services and their associated functions.
• Influence: groups and individuals who can have an
impact on the Company; strategic stakeholders for the
decision-making process.
• Tension: status of the relationship with the stakeholder.
The following graph illustrates the stakeholder map
according to their influence and dependence:
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Creation of
economic value
Good
government
Customer
Engagement
Electrification
of uses
Climate
change
Digital
transformation
Resilient
networks
Waste
People management,
diversity and inclusion
Health and
security
Sustainable
supply chain
Paricipation of local
and global communities
Equitable corporate
conduct
Innovation and sustainability
(Innovability)
Circular
economy
Water resources
management
Preservation of biodiversity and
ecosystems
Governance and defense of
Nature and climate
Air quality
water and soil
Business
community
Civil Society and
local and global
communities
Customers
Financial
community
Institutions
Media
Our
people
Suppliers and
contractors
Priority values from 1.0 to 2.5
Priority values from 2.6 to 4.0
Priority values from 4.0 to 5.0
Prioritizing material issues for stakeholders
Based on direct stakeholder surveys complemented by
secondary sources of information, the Company identifies
the priority of each material issue for each stakeholder. The
results allow us to generate an overview of the stakeholders’
expectations and identify the issues on which the Company
should focus its strategy and reporting.
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The Company is widely present on social networks, with
content aimed at all its stakeholders, with ample interaction
with its virtual communities through the various social
platforms (Twitter, Facebook, LinkedIn, and Instagram),
where it publishes corporate, educational, commercial,
financial, sustainability and customer service information.
Agents
Enel Investor App
Mobile app
Complaint channel
Web Channel
Press releases
Direct contacts
Dedicated meetings
Surveys
Cognitive interviews
Forums
Work groups
Intranet
Investor Day
Newsleter
Social networks
Business magazine
Roadshow
Enel stores and
commercial offices
Our people
Civil Society and
local and global
communities
Institutions
Media
Financial
community
Customers
Suppliers and
Contractors
Business
Community
Communication channels
Everything the Company does is based on continuous
interactions
through
differentiated
communication
channels and procedures, facilitating a solid understanding
of the stakeholders’ needs and expectations. Furthermore,
the whistleblowing channel is available to all stakeholders.
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2023
2022
Followers (thousands)
108.4
106.6
Impressions (millions)
14.2
6.6
Followers (thousands)
63.8
54.9
Impressions (millions)
2.2
1.7
Followers (thousands)
2.38
1.43
Impressions (millions)
3.1
2.9
Followers (thousands)
28.3
24.5
Impressions (thousands)
250.4
64.5
Web page
Publications
95
53
Unique visits (thousands)
42.6
32.2
Total Views (thousands)
53.9
36.4
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Creation of economic value
Good government
Commitment to the customer
Electrification of uses
Climate change
Digital transformation
Resilient networks
Waste
People management, diversity and
inclusion
Health and security
Sustainable supply chain
Paricipation of local and global
communities
Equitable corporate conduct
Innovation and sustainability
(Innovability)
Circular economy
Water resources management
Preservation of biodiversity and
ecosystems
Governance and defense of
Nature and climate
Air quality, water and soil
Priority of issues for interest groups
Priority of topics in company strategies
5.0
4.0
3.0
4.0
5.0
Priority Matrix
Based on the information obtained in the materiality
analysis, it is possible to draw up the Priority Matrix, which
reflects the relationship between material issues priorities
for both stakeholders and the Company.
This matrix is presented to the Board of Directors for
approval every year, together with the Sustainability Plan
and the information on sustainability management all of
which guide the Company's decision making and actions.
Furthermore, the matrix makes it possible to respond to
stakeholders’ expectations as well as establish the focus
of work outlined in the Sustainability Plan.
The result of the work described above is reflected in the
following materiality matrix, which is specifically linked to
the 2030 Agenda:
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The priority issues for the Company and stakeholders
include the following:
Work Health and Safety
Enel Chile has implemented an integrated management
system throughout all its business lines, emphasizing
its dedication to safety. The primary goal of this system
is to attain "Zero Accidents" for both its employees
and contractors. The cultivation of a culture of safety
is crucial in this context. In pursuit of this objective, the
work is driven by an annually revised three-year plan,
implementing initiatives centered around four key areas:
Operational control, Digitalization and process analysis,
Culture and training, and Safety Culture. Each decision
the Company makes is directed towards permanently
protecting people's health, consistently employing a
proactive approach to mitigate any possible risks.
Economic Value Creation
The Company operates in the generation, distribution, and
other businesses related to transforming and extending
the electricity market. Enel Chile's value proposition is
based on three strategic principles: resilience, flexibility,
value creation, Efficiency and effectiveness, and Financial
and Environmental Sustainability. These goals are
achieved by consolidating a robust and resilient portfolio,
strengthening integrated margins, and building a business
strategy based on long-term visibility, diversification, and
strong off-takers. The Company's financial objectives
are for Enel Chile to continue its sustainable strategy,
maintain an adequate financial position and shareholder
remuneration, and create value for all stakeholders.
Climate change
One of the central elements affecting Enel Chile's work is
the risks and impacts of climate change. The Company
is aware of and committed to adopting adaptation and
mitigation mechanisms. It is also reflected in Enel Chile's
goal, as part of the Enel Group, to reach zero emissions
by 2040. With this in view, the Company's strategy seeks
to improve the resilience and flexibility of its portfolio
by supporting the decarbonization process, promoting
a business relationship with customers based on
electrification, and digitizing the grid to enable just energy
transition. At the same time, Enel Chile identifies, manages,
and evaluates its risks associated with climate change.
Good governance
Enel Chile's corporate governance is structured with
many management control levels guided by concepts of
responsibility and accountability. This approach facilitates
reaching business objectives through a comprehensive
plan of action. This structure is specifically developed to
oversee and manage operations while simultaneously
creating positive outcomes for all stakeholders. The Board
of Directors of Enel Chile, consisting of members elected
at the Shareholders' Meeting, serves as the Company's
supreme governing body. Its responsibilities include
overseeing the Compliance Program and supervising the
operations of Internal Audit Management, among other
duties.
Electrification of energy uses
The Company encourages consumer actions that
support electrification, leading to the development of
more sustainable and less polluted communities. Enel
Chile is improving its capacity to adapt to new situations
and provide customized solutions to meet the needs
of customers who must play a vital role in the energy
transition and decarbonization process. They drive
changes in consumer habits by selecting and benefiting
from sustainable, adaptive, and digital solutions. Enel
Chile focuses on customer satisfaction by creating
new connection models that increase attention and
commitment to continuous service improvement.
Identifying, evaluating, and prioritizing
the most significant impacts
To identify the impacts, risks, and opportunities related
to our Company's activities and guarantee their
comprehensive coverage, the Company analyzed in 2023
considering the most recent publications of the leading
international standards, including GRI 2021, SASB, ISSB,
and EFRAG.
The identification of impacts was carried out through the
following activities:
Analyzing impacts of the main sustainability trends: an
Enel Group-wide survey of stakeholders was conducted,
supplemented at the local level, to measure the impacts
of the main sustainability megatrends identified through
contextual analysis.
Prioritizing issues by external stakeholders: Listening
initiatives (such as surveys, focus groups, etc.) were
implemented that involved the main interest groups at the
local level, in order to evaluate the priority, satisfaction and
impact of sustainability issues.
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Financial
Materiality
Impact
Materiality
MANAGEMENT OF IMPACTS, RISKS AND
OPPORTUNITIES: DOUBLE MATERIALITY
Double Materiality Vision
Enel Chile conducts its materiality analysis by considering
both the setting in which it operates and the evolution
of
key
sustainability
challenges.
The
Company's
consequences for people or the environment, whether
positive or negative, are identified from an impact
perspective. The financial viewpoint helps the company
recognize sustainability challenges that pose risks and
opportunities and potentially affect the Company's
financial performance.
Defining the list of impacts: based on an internal analysis,
Enel Chile has compiled a list of generated and experienced
impacts, both positive and negative, that have affected or
may affect the Company's relationships with stakeholders.
For both the impact materiality tables and the financial
materiality tables, the information contained corresponds
to the following:
• Declared impacts: they are the result of the activity
carried out within the Company towards the environment
and vice versa.
• Type: current (what's happening) or potential (what
might happen).
• Time horizon in which the impact develops: short,
medium, and long term.
• Impact management: link to the chapter that shows
the strategies adopted and the performance obtained,
considering the management of the Company's main
risk types.
• Other information: whether the reported impact results
or could focus on the SDGs, human rights, and the
associated SASB standard, where applicable.
Regarding the materiality of the impact, Enel Chile is
developing a methodology to identify the impacts caused
by the Company according to the new GRI Standard 2021
criteria. Enel Chile undertakes the impact materiality
analysis with the cooperation of pertinent stakeholders
and experts and based on the good practices stipulated
by the human rights Due Diligence process.
For the purposes of presenting this report, the impacts
generated, associated with sustainability trends, are
selected, differentiated by positive and negative for the
priority material issues, depending on their severity and
magnitude.
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Dual Materiality - Most Significant Impacts
Issue
Description of impacts
Current /
Potential
Temporal
Horizon
SDG
Human rights
Climate change
Mitigation of climate change by reducing
absolute greenhouse gas emissions through
the gradual elimination of thermoelectric
power.
Current
Contribution to international and national
goals to achieve a zero-emission global
economy and society and limit the increase in
global average temperature (1.5°C - 2°C).
Current
Equitable corporate
conduct
Increased
the
company's
ability
to
be
recognized as transparent and trustworthy
with institutions through the timely and
accurate disclosure of corporate and price-
sensitive information, in accordance with
applicable regulations and other compliance
programs.
Current
Good governance
Definition
of
policies,
procedures
and
operational instructions to guarantee a solid
and efficient organizational model.
Current
People management,
diversity and inclusion
Support for the energy and fair transition
through the application of "upskilling" and
"reskilling" programs for employees due to the
closure of conventional generation plants.
Current
POSITIVES GENERATED
Typology: current or potential
Duration: Short term (up to 1 year) Medium Term (2 to 5 years) Long term (> 5 years)
Relevant impact on human rights
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Issue
Description of impacts
Current /
Potential
Temporal
Horizon
SDG
Human rights
Climate change
Increased environmental impact due to delays
in the installation, maintenance and repair of
energy efficient products and services.
Current
Water resources
management
Environmental damage due to inadequate
water management.
Current
Participation of
local and global
communities
Opposition from local communities for not
sharing the environmental and socioeconomic
benefits of the project.
Current
Resilient networks
Reduction of electricity distribution due to
overload problems in the national grid.
Potential
Electrification of uses
Lack of application of new solutions and
technologies for the electrification of cities,
companies and people.
Potential
NEGATIVES GENERATED
With regard to financial materiality, Enel Chile analyzes
financial materiality in line with the most recent
publications of the main standards (EFRAG, SASB, ISBB).
This analysis seeks to integrate a comprehensive view
of the sustainability aspects related to the risks and
opportunities that affect or may materially affect the
Company's cash flows, development, performance,
positioning, cost of capital, or access to short-, medium-,
or long-term financing.
Based on this assessment of financial materiality, and
for reporting purposes, we have selected the impacts
associated with sustainability trends, experienced, and
differentiated by positive and negative for the priority
material themes based on their severity and magnitude.
Typology: current or potential
Duration: Short term (up to 1 year) Medium Term (2 to 5 years) Long term (> 5 years)
Relevant impact on human rights
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Issue
Description of impacts
Current/
Potential
Temporal
horizon
SDG
Human
rights
SASB
Customer
engagement
Higher
income
due
to
good
customer loyalty and satisfaction
due to a quality service offered.
Potential
Greater income thanks to the
dissemination of energy efficiency
products and services, thanks to a
regulatory framework of incentives
and regulations.
Potential
Economic Value
Creation
Possibility of access to public
financial resources in line with the
energy transition objectives and/or
subsidized support systems.
Potential
Preservation of
biodiversity and
ecosystems
Improving the state of the habitats
and
ecosystems
in
which
the
organization operates by adopting
a strong corporate commitment to
address environmental challenges
Potential
Economic value
creation
Ability to attract investments taking
advantage of a good positioning in
the main sustainability indices.
Potential
POSITIVES SUFFERED
Typology: current or potential
Duration: Short term (up to 1 year) Medium Term (2 to 5 years) Long term (> 5 years)
Relevant impact on human rights
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Issue
Description of impacts
Current/
Potential
Temporal
horizon
SDG
Human
rights
SASB
Climate change
Increase
in
extreme
weather
events due to climate change,
causing damage to or reducing the
efficiency of power generation and
distribution facilities and supporting
infrastructure,
causing
their
capacity to be reduced, temporarily
interrupted
or
completely
shut
down.
Potential
Resilient
networks
Damage to the network caused
by
third
parties
that
causes
dysfunctions in the continuity of the
service provided and with possible
penalties for not restoring it in time.
Potential
Governance
and defense
of Nature and
climate
Lack of promotion of corporate
positioning on public climate change
policies and decarbonization and
electrification
pathways
due
to
lack of involvement of institutional
stakeholders,
trade
associations,
non-governmental
organizations
and academia.
Potential
Climate change
Rising air and water temperatures
and rising sea levels due to climate
change
contribute
to
reducing
the production and income of
power plants, with repercussions
on electricity distribution networks
and the availability of resources for
renewable energy plants.
Potential
Participation of
local and global
communities
Lack of labor among members of the
community in which the company
operates.
Potential
NEGATIVES SUFFERED
The impact model is fundamental as it allows material issues
to be identified and thus improve their management, both
in terms of their integration into risk management systems
and in terms of enhancing opportunities. Similarly, Enel
Chile recognizes its strategic priorities, also considering
the stakeholders’ point of view; therefore, identifying
priority sustainability issues in which the Company will
engage increases its impact management vision.
Typology: current or potential
Duration: Short term (up to 1 year) Medium Term (2 to 5 years) Long term (> 5 years)
Relevant impact on human rights
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18 The Risk Factors and Strategy sections address the main contextual aspects that could materialise and have an impact on the Company's results.
1
3
5
2
4
6
Risk Appetive
Framework
Reporing
system
Defense
Lines
Risk policies
Group Risk
Commitee
Board of
Directors
RISK
MANAGEMENT
Enel Chile considers risk management one of the main
tools for defining its business strategy and integrating
sustainability throughout the value chain.
In carrying out its industrial and commercial activities,
the Enel Chile Group is exposed to risks that, if not
effectively monitored, managed, and mitigated, could
affect its performance and financial position. Therefore,
understanding the context is crucial to identify external
or internal factors that can become potential risks at the
Company’s every business and area level18.
In this regard, the Group has adopted a risk governance
model based on a series of "principles," as well as a
uniform risk taxonomy (the "risk catalog") that facilitates
risk management and organic representation.
The Risk Governance Model
The Governance Principles
Enel Chile has adopted a reference framework for
risk governance implemented by establishing specific
management,
monitoring,
control,
and
reporting
mechanisms for each identified risk category as part of
the Enel Group.
The Enel Group's risk governance model is aligned with
the best national and international risk management
practices and is based on the following principles:
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Defense Lines: the model is structured through three defense lines for risk management, monitoring, and
control activities, complying with the principle of segregation of duties in the main areas in relation to
significant risks.
1
2
Enel Group Risk Committee: This Committee, created at the management level and chaired by the CEO of
the Enel Group, is responsible for the strategic guidance and supervision of risk management through i) the
analysis of the main exposures and the main risks; ii) adopting risk policies to identify roles and responsibilities
in the management, monitoring and control of risks, respecting the principle of organizational separation
of the areas responsible for operations with the areas responsible for the supervision and control of risks;
(iii) approving operational limits, authorizing, where necessary and appropriate, exceptions to these limits
under specific circumstances or needs; and (iv) establishing risk mitigation actions.
The Enel Group's Risk Committee meets four times a year. It may also be convened, when necessary, by the
CEO of the Enel Group and head of the Risk Control unit located within the "Administration, Finance and
Control" function.
Board of Directors: The Board of Directors is responsible for monitoring and controlling the main risks
related to the Company and its subsidiaries, including any risks that may affect sustainability in a medium or
long-term perspective, determining the degree of compatibility of such risks with the established strategic
objectives.
3
Risk Appetite Framework: This is the reference framework to establish the tolerable risk level. It is an
integrated and formalized system of elements that defines and applies a unique approach to managing,
measuring, and controlling each risk. The Risk Appetite Framework is summarized in the Risk Appetite
Statement, a document synoptically describing the identified risk strategies and indicators and/or limits
applicable to each risk.
4
Risk policies: corporate policies and procedures defined according to specific approval processes
involving the business structures directly involved, specifying the allocation of responsibilities, coordination
mechanisms, and major risk control activities.
5
Reporting system: : specific and regular information flows on risk exposures and metrics allow the Group's
senior management and corporate bodies to have an integrated view of the principal risk exposures at a
global level for each business line or geographical area, both current and future.
Risk Landscape ENEL© Group: based on risk governance and following the ISO 31000:2018 international
risk management standards, the Group constantly monitors risks thanks to a monitoring process supported
by a data visualization tool (e-Risk Landscape©). This system collects and organizes the contributions from
the different geographies and business lines of the Group, categorizing them according to the definition
of the Risk Catalog adopted by the Group. The monitoring and control process involves the assignment of
metrics based on the likelihood of risk events and the size of the potential economic and financial impact,
providing the Group's senior management with a dynamically updated view of the Group’s risk profile,
management, and mitigation actions.
6
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As of December 31, 2023, the Enel Chile Group monitored
a set of more than 30 risks, none of which were identified
as TOP Risk (i.e., with an above-average probability value
and potential economic impacts greater than €100 million).
The ENEL © Group Risk Landscape allows you to select
and view Top Risks to focus on medium to high risk levels
(excluding very unlikely and/or low impact events). In
addition, they can be selected by multiple dimensions:
• by category
• by Country/Legal Entity
• by Business Line
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First Line of Defense
Second Line of Defense
Third Line of Defense
Risk Owners
Risk Control
Internal Audit
Functions:
• The Management, Operational, or Corporate
Areas are primarily responsible for the risks
arising from their daily work and manage
them within their area of competence.
• Implement corrective actions to address
process and control deficiencies.
• Maintain effective internal control and carry
out risk control procedures on a consistent
and day-to-day basis.
• Identify, evaluate, control, and mitigate
risks,
directing
the
development
and
implementation of internal policies and
procedures that ensure that the activities
carried out are consistent with the goals and
objectives of each business unit.
• To
the
extent
possible,
establish
management and supervision controls to
guarantee compliance with the procedures
outlined, as well as to detect control gaps,
inadequate processes, and unexpected
events in a timely manner.
• Implement controls following the guidelines
and limits approved by Enel Chile's Board of
Directors.
Functions:
• Define the methodologies and tools for risk
identification, measurement, and control.
• Submit
the
limits
and
thresholds
of
commodity and financial risks to the Enel
Group for annual approval by the Enel
Group's Risk Committee.
• Track risks and analyze compliance with
limits.
• Grant or deny requests for exceptions in
breaching the established risk limits (waivers).
• Report the Risk Rate (summary of the main
risks) every month.
• Support Risk Owners in the definition of
risk mitigation plans, as well as follow up on
these plans and propose corrective actions
if necessary.
• Analyze the impact of relevant operations
on risks.
• Inform Enel Chile's senior management
and Board of Directors of the Risk Map and
Mitigation Measures every quarter.
• Informs Enel Chile's Board of Directors
every two months about a specific risk (or
issue associated with risks) that strategically
affects the Company's business.
• Promote and plan the training of the
Company's relevant employees regarding
the policies, procedures, controls, and
internal regulations or normative bodies
implemented for risk management.
Functions:
• Prepare the Audit Plan every year – based
on a structured analysis and identification
process of the main risks – which is presented
and approved by the Directors’ Committee
and the Board of Directors.
• Monitor the functioning and effectiveness
of the ICRMS.
• Carry out controls on specific corporate
functions or operations when deemed
appropriate or at the request of the Board of
Directors.
• Report directly to the Board of Directors
- not responsible for or dependent on any
operational area.
• Prepare
periodic
reports
containing
adequate information on its actions and
procedures for risk control, management,
and compliance with established plans.
• Report on the results of the activity carried
out to the corporate bodies following the
provisions of the local regulations in force
and the applicable foreign regulations (as
is the case of the Sarbanes-Oxley Act of
2002 and the complementary rules of the
Securities and Exchange Commission and
the New York Stock Exchange of the United
States of America).
• Review the reliability of information systems
as part of the Audit Plan.
• Monitor
the
implementation
and
effectiveness of the Compliance Program
inherent to the criminal risks for the legal
entity following the provisions of the
applicable regulations and other program
elements.
Internal Control and Risk Management System
Enel Chile's Internal Control and Risk Management System
(ICRMS) combines the standards and procedures to identify,
measure, manage, and supervise the main corporate risks.
Furthermore, it helps ensure asset value, the efficiency and
effectiveness of business processes, financial reporting
reliability, and compliance with laws and regulations,
bylaws, and internal procedures. Therefore, the ICRMS
plays a central role in the Company, allowing it to adopt
decisions consistent with risk appetite and disseminate
a correct understanding of risks, laws, and corporate
values. The system also guarantees the traceability of risk
identification, assessment, management, and monitoring
activities.
The ICRMS considers the recommendations of the
Corporate Governance Code and is consistent with the
Internal Controls - Integrated Framework model, issued
by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO Report), which constitutes
the internationally recognized benchmark for the analysis
and integrated evaluation of the effectiveness of the
ICRMS.
Three-Line Defense Model
Enel
Chile's
ICRMS
is
aligned
with
international
standards, following a methodology based on the three-
line defense model, which segregates functions.
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Enel Chile has chosen to strengthen the participation
of the Board of Directors as the highest corporate
governance body in risk management and control; in this
context, the Risk Control Chile area, at the end of 2023,
has not reported to the Directors’ Committee.
Risk management and control policy
Enel Chile's Risk Control and Management Policy
establishes the basic principles and general framework
to control and manage risks that could affect achieving
business objectives. This guarantees that they are
identified, analyzed, evaluated, managed, communicated,
and controlled systematically and within the established
risk levels. This Policy, reviewed and approved annually
by Enel Chile's Board of Directors, represents the set of
decisions that determine the acceptable framework for
the levels of risk inherent to the business segments in
which the Company operates.
The Policy’s objectives are to establish a model to control
and manage risks, define the mission and functions of
the bodies linked to it, and regulate the model to prevent
and manage these risks. This Policy applies to and is
mandatory for all employees of the Company, regardless
of the nature of the functions or the respective position.
It also includes companies in which it directly or indirectly
holds 100% of its share capital, where it is directly applied
as that organization’s regulation.
Main ICRMS entities and functions
The Board of Directors and the Executive Team represent
the main internal bodies served by the lines of defense.
They are best positioned to apply the risk model to the
Company's control and management processes.
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Governing Body
Roles
Board of Directors
It supports the Company's purpose, vision, strategy, and integration of long-term sustainability. It is the body responsible
for monitoring and controlling the main risks related to the Company’s business and its subsidiaries, determining the
degree of compatibility of such risks with the objectives established in the Strategic Plan.
Its functions include approving ICRMS guidelines, evaluating its performance, approving the Audit Plan based on a
structured process of analysis and identification of the main risks, reviewing reports on actions and procedures for control
and management, and reviewing the main strategic risks associated with the Company, at least once per each quarter.
In this area, the functions of the Board of Directors are in line with the Risk Policy, ISO 31000:2018, internal procedures, and
external regulations to guarantee business continuity.
Risk Committee
Its purpose is to define the structure and processes of risk governance in detecting, quantifying, monitoring, and
communicating all relevant risks to the Board of Directors, specifically including strategic, compliance, financial, operational,
technological, digital, governance, and cultural risks, among others, faced by the Company, in addition to reviewing the
effectiveness of risk control/mitigation tools.
Crisis Committee
It aims to guarantee decision-making clarity, speed, and efficiency. It also integrates internal and external communication
functions to manage any event that may compromise the safety of people, the continuity of public and business service,
care for the environment, asset protection, the image and reputation of the Company, and its management.
It seeks to minimize impacts on stakeholders and guarantee a rapid restoration of normal operating conditions. Furthermore,
in each country where the Company operates, it has a Critical Event Monitoring Office (CEMO), which manages crises in
real time, 24 hours a day, 365 days a year.
Risk Control
The Risk Control Unit is the Second Line of Defense, responsible for monitoring the established risk limits or thresholds,
making proposals in risk policies, as well as their periodic review and permanent evaluation, and reporting and
communicating the main risks to the Board of Directors, including both direct and indirect risks. It documents the results
of its monitoring and evaluation to the CEO so that they can adopt the appropriate measures. It is also the unit in charge
of processing or denying requests for exceptions in the breach of the established risk limits or thresholds (waivers), which
will be processed and managed by the Risk Policy.
Internal Audit
The Internal Audit area is the Third Line of Defense. It is responsible for the general supervision of the structure and
functionality of the ICRMS, developing an independent and objective assurance and consultation activity designed to add
value and improve the Company's operations.
Risk Manager (Risk
Owner)
It is a unit within the organization responsible for the Company’s risk management. It usually corresponds to the Company's
operational areas, both business and support. The Risk Management function is specific to each line of business or
corporate area. Their responsibility is to lead risk management in their area of competence. Similarly, they must implement
risk controls that guarantee compliance with the guidelines and limits defined by the Risk Control area.
Internal Control
of Corporate
Information
The Company has implemented an internal control system of corporate information that seeks to provide reasonable
assurance regarding the reliability of financial and non-financial information in the preparation of financial statements,
which mitigates risks related to the strict observance and application of all procedures and standards in force under the
COSO methodology. The Company conducts a periodic evaluation of the effectiveness of the design and operation of
the controls of the Internal Control System on Corporate Information, in line with the requirements of the Sarbanes Oxley
Law, General Rule No. 346 of the Financial Market Commission (CMF) and the Italian law "Testo Unico della Finanza" (D.Lgs.
No. 58/98, Legislative Decree No. 262/2005, Legislative Decree No. 303/2006) and the CONSOB regulations, including
the semi-annual certification of these controls by a qualified independent consultant. This evaluation process is managed
by the Internal Control of Corporate Information unit, an area in charge of defining, together with the Process Owners
and Control Owners, the remediation actions to mitigate the control deficiencies identified and continuously improve the
processes, as well as monitoring the implementation of these actions and communicating their status to the Board of
Directors.
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Information
6 Main indicators
7 Annexes
Below is the list of individual risks currently identified and classified within the six macro categories mentioned above:
Category
Risk
Definition
Strategic
Climate change
Risk of ineffective identification, assessment, and monitoring of climate
change risks – caused by acute and chronic climate events (physical risk)
and the effects of regulatory, technological, and market trends resulting
from the transition to a low-carbon economy (transition risk) – through
strategic and operational initiatives to adapt and mitigate climate risks.
Competitive landscape
Risk of ineffective identification, evaluation, and monitoring of market
trends that may have an impact on the Group's competitive market
positioning, growth, and profitability.
Innovation
Risk of ineffective development, execution, and dissemination of innovative
solutions due to inadequate technological exploration or incorrect or
incomplete analyses of uncertainty, complexity, sustainability, degree of
feasibility, market expectations, in-house expertise, and financial support
for innovative projects.
Legislative and regulatory
development
Risk of adverse legislative and regulatory developments and/or ineffective
identification, evaluation, management, and monitoring of legislative and
regulatory developments in terms of communication of new compliance
obligations, advocacy activities, and internal gap analysis.
Risk of lack of a systematic process for assessing regulatory exposures
arising from new strategic and business initiatives.
Macroeconomic and geopolitical
trends
Risk of ineffective identification, evaluation, and monitoring of global
economic-financial, political, and social trends, as well as monetary, fiscal,
and trade policy developments.
Strategic Planning and Capital
Allocation
Risk of ineffective strategic planning and capital allocation processes
caused by inconsistent scenario scenarios and the inability to capture
emerging trends or quickly manage significant changes, which can
negatively influence the decision-making process.
Estrategic
Governance
and culture
Digital
Technology
RISKS
Financial
Operational
Compliance
Classification of risks
The Enel Group has a risk catalog that represents a
reference point for all areas involved in risk management
and monitoring processes. Adopting a common language
facilitates the mapping and comprehensive representation
of risks, thus allowing the identification of those that
impact the processes and functions of the organizational
units involved in their management.
The risk catalog groups the types of risks into six
macro-categories, including, as shown below, strategic
risks, financial and operational risks, compliance risks,
governance, culture-related risks, and digital technology
risks. In December 2023, the Company updated its Risk
Catalog, following the Enel Group's document, reducing
the subcategories from 38 to 37.
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Category
Risk
Definition
Governance and Culture
Corporate Culture and Ethics
Risks arising from i) an inadequate integration of the ethical principles
defined by the Group into the company's processes and activities; (ii)
failure to adopt and implement adequate policies and processes to ensure
compliance with the principles of diversity and equal opportunities; iii)
not to sanction conduct carried out by employees and managers that
conflicts with the Group's ethical values.
Corporate Governance
Risk of ineffective corporate governance structures/rules and/or lack of
integrity and transparency in decision-making processes.
Stakeholder engagement
Risk of ineffective engagement of key stakeholders with respect to Enel's
strategic positioning in terms of sustainability and financial objectives
due to a lack of understanding, anticipation, or orientation of their
expectations, which may not be adequately integrated within the strategic
planning processes of the Group's business and sustainability with a
negative impact in its reputation and competitiveness.
Digital technology
Cybersecurity
Risk of cyberattacks and theft of sensitive or massive data related to the
company and customers, attributable to the lack of security of networks,
operating systems, and databases.
Digitalization
Risk of ineffective management of business processes and higher
operational costs due to lack of digitalization in terms of workflow
coverage, system integration, and adoption of new technologies.
IT Effectiveness
Risk of ineffective support of IT systems for business processes and
operational activities.
Continuity of service
Risk of exposure of IT/OT systems to service interruptions and data loss.
Financial
Adequacy of the capital structure
and access to financing
Risk that the company's and/or the Group's long-term debt mix or
combination of debt is not adequate to (i) support financial flexibility, (ii)
allow access to different sources of financing, and (iii) achieve objectives
related to the cost of debt.
Commodity
Risk of (i) adverse commodity market trends and/or price volatility (price
risk) and/or (ii) lack of demand or availability of commodities, natural
resources, and semi-finished raw materials or products (volume risk).
Credit and Counterparty
Risk of: (i) the counterparty's inability to meet its contractual payment or
delivery obligations, (ii) the counterparty's credit impairment or default,
(iii) significant exposure to a single counterparty (concentration in a single
entity), or (iv) to counterparties operating in the same sector or belonging
to the same geographic area (sectoral/geographic concentration).
Exchange Rate
Risk of adverse changes in exchange rates, which adversely affect: (i)
costs and revenues denominated in foreign currency with respect to the
time the pricing conditions were defined or the investment decision was
made (economic risk), (ii) revaluations or adjustments to the fair value of
financial assets and liabilities sensitive to exchange rates (transaction risk),
(iii) the consolidation of subsidiaries with different accounting currencies
(translation risk).
Interest Rate
Risk of adverse interest rate fluctuations affecting net finance charges
and fair value adjustments of interest rate-sensitive financial assets and
liabilities.
Liquidity
Risk of not meeting short-term financing needs given the inability or
increased costs incurred to (i) raise short-term funds (funding liquidity risk)
or (ii) liquidate assets in the financial markets (asset liquidity risk).
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7 Annexes
Category
Risk
Definition
Operational
Asset Protection
Risk of incurring economic, financial, or reputational losses due to
unauthorized access, theft, misappropriation, or mismanagement of
equipment, plants, strategic information, or other tangible or intangible
assets. Risk of incurring economic, financial, or reputational losses as a
result of ineffective safeguards (e.g., insurance and legal activities) on the
Group's financial assets.
Business Interruption
Risk of partial or total interruption of the company's activities as a result
of technical failures, malfunction of goods and systems, human error,
sabotage, unavailability of raw materials and/or semi-finished products, or
adverse weather events.
Customer Needs and Satisfaction
Risk of not meeting customer expectations and needs in terms of quality,
accessibility, sustainability, and innovation of the Group's products and
services.
Environment
Risk that inadequate work operations or machinery may have a negative
impact on the quality of the environment and the ecosystems involved.
Risk of breaching international, national, or local environmental laws and
regulations.
Health and Safety
Risk that inadequate work environments, structures, machinery, and
company operations may have a negative impact on the safety and health
conditions of employees and other stakeholders involved.
Risk of breaching international, national, or local health and safety laws
and regulations.
Intellectual property
Risk of infringement or fraudulent use of the Group's intellectual property.
People and Organization
Risk of the inadequacy of the Group's organizational structures or lack of
internal capacities due to the absence or inadequacy of training programs,
the ineffectiveness of incentive systems, the inadequacy of the rotation
planning process, or the inability to define effective recruitment processes
and employee retention policies.
Process Efficiency
Risk of incurring higher operating costs, delays, or lower revenues due
to improper management of operational activities and processes, lack of
data quality, and incomplete or ineffective performance monitoring and
reporting.
Procurement, Logistics and Supply
Chain
Risk of ineffective procurement or contract management activities due
to insufficient definition of requirements or supplier qualification process,
frequent use of direct allocation, deficiencies in exploration activities,
poor monitoring of compliance with contractual duties, and lack of
enforcement of sanctions.
Service Quality Management
Risk of inability of third parties or internal service providers to meet agreed
service levels.
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Category
Risk
Definition
Compliance
Accounting Compliance
Risk of non-compliance with accounting laws and regulations or
application and/or incorrect interpretation of international accounting
standards adopted by the Group (Enel GAAP) and national accounting
standards (Local GAAP).
Antitrust and Consumer Rights
Compliance
Risk of breaching antitrust and consumer rights laws and regulations.
Corruption
Risk of intentionally incorrect or corrupt conduct carried out by persons
inside or outside the Group for the purpose of obtaining an undue or
unlawful advantage.
Data protection
Risk of breaching data protection and privacy legislation.
External Disclosure
Risk of dissemination of reports, accounting documents, communications,
or other notices that contain incorrect, inaccurate, or incomplete
information.
Financial Regulatory Compliance
Risk of breaching national and international laws and regulations related
to financial markets.
Tax Compliance
Risk of breaching national or international tax laws and regulations.
Compliance with Other Laws and
Regulations
Risk of breaching international, national, or local laws and regulations in
matters that are not yet included in other types of risk (e.g., in relation
to the electricity, distribution, generation, procurement, permitting,
securities markets, markets).
This risk analysis includes the Company's main suppliers,
which are evaluated - among other criteria - based on
their risk in terms of sustainability (environmental, social,
governance and business relevance), as well as according
to the country, the sector and the commodity or service
provided.
Thanks to the Company's integrated business strategy,
environmental, social, and governance risks are an integral
part of the risk management and matrix ESG. Among the
references used to identify them, the following stand out:
• Dual
materiality
analysis
integrates
risks
more
comprehensively, prioritizing those with the most
relevant financial impacts.
• Risk assessments are carried out in the context of the
due diligence process on human rights and integrated
management systems (environmental, quality, and
safety), among others.
• Analysis by prestigious international sustainability rating
agencies, which use specific risk assessment systems
to define the level of the Company's performance in
terms of ESG, including the recommendations of the
Task Force on Climate-related Financial Disclosure
(TCFD) and the Task Force on Nature related Financial
Disclosure (TNFD).
To guarantee the integration of sustainability factors,
the Enel Group has established structured processes
throughout the whole organization involving the analysis
of the sustainability context, identification of priorities
and impacts for the Company and its stakeholders,
sustainability
planning,
implementation
of
specific
actions to meet sustainability objectives, reporting and
management of sustainability indices, as well as the
management of the leading national and international
indicators.
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Strategic risks
• Legislative and regulatory
development
• Macroeconomic and
geopolitical trends
• Strategic risks and
opporunities associated with
climate change
Strategic Risks
The risks discussed in this section are as follows:
Legislative and Regulatory Development
Enel Chile operates in the electricity generation and
distribution sector in Chile, whose markets are regulated.
In this context, changes in operating norms and the
regulations and obligations that characterize them affect
the Company's operations and performance. As a result,
Enel Chile closely monitors legislative and regulatory
developments, such as:
• periodic review of regulations on distribution and
generation;
• liberalization of electricity markets and expectations for
developments;
• development of capacity-based payment mechanisms
at the production level;
• regulatory measures to protect users from the impact
of price modifications.
To manage the associated risks, the Company has
intensified its relationships with local regulators, taking
a transparent, collaborative, and proactive approach to
address and mitigate sources of instability in the legislative
and regulatory framework.
Macroeconomic and geopolitical trends
Enel Chile's operation forces it to consider and evaluate
the so-called "Country Risk", composed of risks of a
macroeconomic and financial, institutional, social, and
climate nature and those associated with the energy
sector, which could have a significant adverse effect on
both revenue flows and the value of its corporate assets.
Enel Chile adheres to the Enel Group's Open Country Risk
quantitative assessment model, which was adopted to
monitor the degree of risk of the countries in its perimeter
accurately. The Open Country Risk model goes beyond
the more conventional definition of country risk, which
focuses on a government's ability to repay its issued debt.
It offers a broader view of the risk factors affecting a
country. The model is divided into four risk components:
economic, institutional, and political, social, and energy
factors.
More specifically, the Open Country Risk model’s ambition
is to measure the country's economic resilience, the
effectiveness of domestic policies, the vulnerabilities of
its banking and corporate system, which could presage
systemic crises, and its attractiveness in terms of
economic growth; and finally, a quantification of extreme
weather events as a cause of environmental and economic
stress (economic factors). This is accompanied by an
assessment of the strength of the country's institutions
and the political context (institutional and political factors),
an in-depth analysis of social phenomena, measuring the
level of well-being, inclusion, and social progress (social
factors), and the effectiveness of the energy system and
its positioning within the energy transition process, All
of these are essential factors to evaluate investment
sustainability in the medium and long term (energy factors).
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Governance and culture risks
• Corporate governance
• Corporate culture and
ethics
• Stakeholder engage-
ment
Strategic risks and opportunities related to climate change
Climate change and the energy transition may affect
the Enel Chile Group’s activities. To identify the main
types of risks and opportunities and their impacts on
the business in a structured manner consistent with the
recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD)) of the Financial Stability
Board, the Enel Group has adopted a framework that
represents the main relationships between the variables
of the scenario and the risk and opportunities types,
indicating the strategic and operational management
methods that also consider mitigation and adaptation
measures.
To facilitate the correct identification and management
of risks and opportunities related to climate change, the
Enel Group published the "Climate Change Risks and
Opportunities" Policy in 2021, which defines a shared
approach to integrating issues related to climate change
and the energy transition process into the Group's
procedures and activities thus informing industrial and
strategic decisions to improve business resilience and
long-term sustainable value creation in line with the
adaptation and mitigation strategy.
For a detailed review of the risks and opportunities related
to climate change, see the "Zero emissions ambition"
section of this Integrated Annual Report.
Governance and Culture Risks
Risks of incurring legal or administrative sanctions,
economic or financial losses, and reputational damage as
a result of the inability to meet stakeholder expectations,
an ineffective exercise of supervisory functions, and/or the
absence of integrity and transparency in decision-making
processes and/or as a consequence of unauthorized
attitudes and conduct of employees and senior
management, in breach of the Company's ethical values.
Regarding the management of governance risks, it is
important to mention that they originate from illegal
conduct, including corruption, lobbying activities, etc., by
staff members or contractors or from anti-competitive
practices. Enel Chile has implemented an Internal Control
and Risk Management System based on the norms and
procedures that allow it to mitigate risks.
Regarding risks of human rights violations, they are
evaluated through due diligence carried out annually
throughout Enel Chile's value chain and across all
functions. The due diligence process leads to action plans
addressing detected vulnerability or impact areas.
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Digital Technology Risks
• Cybersecurity
• Digitalization
• IT Effectiveness
• Service continuity
Digital Technology Risks
The risks discussed in this section are as follows:
Cybersecurity Risks
The rapid pace of technological developments always
creates new challenges, with an increase in the frequency
and intensity of cyberattacks, as well as the tendency
to target critical infrastructures and strategic industrial
sectors, highlighting the potential risk that, in extreme
cases, normal business operations may be disrupted.
Cyberattacks have increased dramatically in recent
years, both in terms of frequency and complexity (theft
of corporate and customer data), making it increasingly
difficult to identify the source or origin of these threats in
a timely manner. The Company operates in a wide range
of contexts (data, industry, and people), which must be
added to the inherent complexity and interconnectedness
of resources that, over time, have become increasingly
integrated into the Company's daily operational activities.
To mitigate these risks, Enel Chile, as part of the Enel
Group, has adopted a holistic governance model related
to cybersecurity, which applies to the IT (Information
Technology), OT (Operational Technology), and IoT
(Internet of Things) sectors. The framework is based on
the commitment of senior management, global strategic
direction, and the involvement of all business areas as well
as units dedicated to system design and implementation.
It also strives to use and take advantage of the best
technologies on the market, and, at the same time, it acts
on the human factor through initiatives to strengthen
people's awareness and knowledge about cybersecurity,
constituting them as the first lever of corporate defense.
The framework also addresses regulatory requirements
related to cybersecurity, as well as the execution of in-
depth tests (in IT, OT, and IoT environments) aimed at
identifying and eliminating identified vulnerabilities.
The Group has also defined and adopted a risk
management methodology for IT security based on "risk-
based" and "cybersecurity by design" approaches, thus
analyzing corporate risks as the fundamental step of all
strategic decisions, on the one hand, and integrating
security requirements throughout the lifecycle of solutions
and services, on the other. This model applies to all types
of computer systems (IT/OT/IoT), in which they identify,
prioritize, and quantify the cyber security risks associated
with using such systems. Its ultimate goal is identifying
and adopting the most appropriate security measures to
minimize and mitigate risks.
The Company has also created its own Cyber Emergency
Preparedness Team (CERT) to respond to and manage any
incident in computer security proactively. Furthermore,
since 2019, the Group has taken out insurance on
cybersecurity-related risks to mitigate exposure not only
with technical countermeasures.
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Financial risks
• Interest rate
• Exchange rate
• Commodities
• Credit and Counterpary
• Liquidity
Digitalization, IT Efficiency and Service Continuity
Enel Chile has been digitally transforming its entire
value chain management by building new business
models, digitizing processes, integrating systems, and
implementing new technology. As a result of this digital
transformation, Enel Chile's operations are becoming
increasingly vulnerable to risks associated with the
operation of IT systems implemented throughout the
Company, which affects operational processes and
activities and may expose IT and OT systems to service
interruptions or data loss.
These risks are managed by several internal procedures
designed to drive digital transformation. Specifically,
an internal control system has been implemented that,
by introducing control points throughout the entire
Information Technology Value Chain, permits the prevention
of risks associated with aspects such as the creation of
services that fail to meet the needs of the business. Failure
to implement proper security measures results in service
disruptions. The Company's internal control system keeps
track of both internal and outsourced activities to third
parties and external service providers. Furthermore, Enel
Chile promotes the dissemination of digital culture and
digital skills to steer digital transformation while mitigating
associated risks successfully.
Financial Risks
As part of its operations, Enel Chile is exposed to a variety
of financial risks that, if not adequately mitigated, can
directly affect our performance. These risks include the
following:
Interest Rate Risk
Variations in interest rates 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 referenced
to a variable interest rate. The objective of interest rate risk
management is to achieve a balance in the debt structure,
which permits minimizing the cost of debt with reduced
volatility in the income statement.
Depending on the Group's estimates and the objectives
of the debt structure, Enel Chile carries out hedging
operations by contracting derivatives that mitigate these
risks. Controlling risks through specific processes and
indicators makes it possible to limit potential adverse
financial impacts and, at the same time, optimize the debt
structure with an appropriate degree of flexibility.
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Exchange Rate Risk
Enel Chile's exchange rate hedging policy aims to
maintain a balance between flows indexed to US$ or local
currencies, if any, and the levels of assets and liabilities in
that currency to mitigate exchange rate risk. The aim is
to minimize the exposure of flows to the risk of exchange
rate changes.
The instruments currently used to comply with the policy
are currency swaps and exchange rate forwards. The policy
also seeks to refinance debt in the Company's functional
currency.
Commodity risks
In this typology, uncertainty regarding future market
events arising from the unpredictable fluctuations in
prices and production volumes is considered, as well as
the availability and demand for energy commodities such
as gas, oil, and coal. Additionally, the variability in external
factors, for example, hydrology, which may affect the prices
or volumes of these commodities, is considered, along
with local peculiarities and market-specific constraints.
The Enel Group has developed a margin stabilization
strategy to mitigate this exposure by pre-contracting
fuel and material supplies and delivering electricity to end
users or wholesalers.
Enel Chile has also implemented a formal procedure that
measures the residual risk of commodities, specifies a
ceiling for the maximum acceptable risk, and implements
a hedging strategy using derivatives in regulated and
over-the-counter (OTC) markets. The commodity risk
control process limits the impact of unexpected changes
in market prices on margins while ensuring an adequate
margin of flexibility to take advantage of short-term
opportunities.
Credit and Counterpart Risk
Enel Chile's commercial, financial, and commodity
transactions expose it to credit risk, i.e., the possibility
that a deterioration in the solvency of counterparties or
the failure to meet contractual payment obligations could
lead to the interruption of incoming cash flows and an
increase in collection costs (liquidation risk), as well as
lower revenue flows from the replacement of original
transactions with similar transactions traded under
unfavorable market conditions (substitution risk).
The control process is based on specific risk indicators
and, where possible, limits and safeguards that the
economic and financial impacts associated with a
potential deterioration of creditworthiness are contained
within sustainable levels.
With regard to the credit risk corresponding to accounts
receivable from commercial activity, this risk is historically
very limited, given that the short collection period
from customers means that they do not individually
accumulate very significant amounts before applying the
suspension of supply due to non-payment or delinquency,
in accordance with the corresponding regulations and
contractual conditions. To achieve this objective, the
Company consistently checks credit risk and quantifies
the maximum amounts at risk of payment, which, as said,
are highly restricted.
Enel Chile also carries out sales and assignments of
accounts receivable rights, leading to the total write-off
of the corresponding assets. Finally, concerning financial
and commodity transactions, risk mitigation is pursued
through portfolio diversification (giving preference to
counterparts with a high credit rating) and adopting
specific standardized contractual frameworks containing
risk mitigation clauses (e.g., clearing arrangements).
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Compliance risks
• Personal data protection
• Antitrust Compliance
regulations
Liquidity risk
The Enel Group maintains a liquidity policy consisting of
hiring committed long-term credit facilities and temporary
financial investments for amounts sufficient to support the
forecast needs for a period based on the situation and
expectations of the debt and capital markets.
Compliance Risks
The risks discussed in this section are as follows:
Personal Data Protection
In the market digitalization and globalization era, Enel's
business strategy has focused on accelerating the
transformation towards a business model based on digital
platforms, using a customer-centric approach based on
information and personal data along the entire value chain.
Enel Chile serves more than two million customers. It
directly employs more than two thousand people, in
addition to a significant number of contractors. Therefore,
the Group's new business model requires the management
of an increasing and growing volume of personal data to
achieve the economic and business results proposed in its
strategic plan.
This exposes the Company to risks related to personal data
protection, which may lead to the loss of confidentiality,
integrity, or availability of the personal information of
customers, employees, and others (such as suppliers
and shareholders), with the dangers of incurring fines
proportional to the volume of the global business, the
interruption of certain processes and the subsequent
economic or financial losses, and finally, exposure to
reputational damage.
Enel Chile has adopted a data governance model to
manage and mitigate these risks, appointing staff
members responsible for privacy at all levels, including the
nomination of a Data Protection Officer (DPO), who reports
and works in coordination with the DPO holding office.
Digital compliance tools are also used to map applications
and processes and manage risks affecting personal data
protection in compliance with specific local regulations.
Compliance with policies, security controls, and data
protection applies to all employees and stakeholders of
Enel Chile. The protection of personal data is part of the
Code of Ethics that contains the expected conduct of
employees, third parties, partners, and stakeholders, in
addition to formally including respect for privacy and data
protection in our Human Rights Policy, reaffirming the
security of the data of natural persons as a fundamental
right.
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Operational risks
• Health and Safety
• Environment
• Procurement, logistics,
and supply chain
• People and Organization
Risks related to antitrust regulation
They refer to free competition breaches in the markets in
which the Group participates. Enel Chile has implemented
a Free Competition Compliance Program, which provides
guidelines for preventing dangerous or harmful conduct
to free competition. The Free Competition Manual
program offers information and training to the Company's
employees so that they can detect risky situations in a
timely manner and, this way, prevent them from happening.
Operational Risks
The risks discussed in this section are as follows:
Health and Safety
The main health and safety risks to which staff members
and contractors are exposed are related to operations
at the Group's facilities and assets. Violating laws,
regulations, and procedures governing health and safety,
work environments, and management of corporate
structures, assets, and corporate processes, which could
adversely affect the health of employees or stakeholders,
may lead to the risk of incurring administrative or legal
penalties and economic impacts, as well as financial and
reputational issues. The top operational health and safety
risks are assessed for each site or company asset.
The risks have been identified by investigating the most
significant events in recent years. Mechanical incidents
(falls, collisions, crushes, and cuts) are the most likely
to occur, whereas electrical accidents (possibly lethal
injuries) are the most dangerous. Furthermore, due to their
presence in various locations, workers and contractors may
be exposed to health hazards associated with potentially
developing infectious illnesses of a pandemic or possibly
pandemic nature, which could have consequences for
their health and well-being.
The Enel Chile Group has adopted a Declaration of
Commitment to Health and Safety, signed by the Group's
senior management. To implement this policy, each line
of business has its own occupational health and safety
management system, following the international standard
ISO 45001 "Occupational Health and Safety Management
System - Requirements and Guidance for Use," based on
the identification of hazards, qualitative and quantitative
risk assessment, planning and implementation of
prevention and protection measures, verification of the
effectiveness of prevention and protection measures
and potential corrective measures. The Enel Group has
defined a structured health management system based
on prevention and protection measures, which also plays
a role in developing a corporate culture that promotes the
psychophysical health and organizational well-being of
workers and helps to balance personal and professional life.
This system also considers the rigor used in selecting and
managing contractors and suppliers and promoting their
participation in programs to improve safety performance
continuously.
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Environment
In recent years, the awareness of the entire community
to the risks related to development models that affect
the quality of the environment and ecosystems with the
exploitation of scarce natural resources (including raw
materials and water) has continued to grow. In some
cases, the synergistic effects between these impacts,
such as global warming and the increasing exploitation
and degradation of water resources, have increased the
risk of environmental emergencies in the most sensitive
areas of the planet, with the risk of triggering competition
between different uses of water resources, such as
industrial, agricultural, and for human consumption.
In response to these needs, authorities have imposed
increasingly restrictive environmental regulations in
relation to the development of new industrial initiatives
and, in the most impactful industries, by incentivizing
or requiring the phase-out of technologies that are no
longer considered sustainable.
The Enel Group's international commitment to mitigating
impacts on biodiversity is also growing. Already present
in Europe in the Green Deal in 2022, it was authorized by
the Global Biodiversity Framework approved at COP 15 in
Montreal. In this context, companies in all sectors, especially
industry leaders, are increasingly aware that environmental
risks represent economic risks. As a result, they are being
asked to increase their commitment and responsibility to
develop and adopt innovative and sustainable technical
solutions and development models. Enel Chile has made
the effective prevention and minimization of environmental
impacts and risks a fundamental element of each project
throughout its entire life cycle.
Adopting ISO 14001-certified environmental management
systems in the Group facilitates the implementation
of established policies and procedures for identifying
and managing environmental risks and opportunities
connected with all corporate activities. A structured
control plan, improvement efforts, and targets based on
best environmental practices and standards beyond mere
environmental regulatory compliance reduce the risk of
environmental consequences, damage to reputation, and
litigation. The wide range of steps taken to accomplish
Enel's demanding environmental improvement targets,
such as those linked to air emissions, waste production,
and water usage, particularly in places with significant
water stress and impacts on habitats and species, all
contribute to the efforts.
Enel's development strategy directly mitigates the risk of
water scarcity, based on the growth of generation from
renewable sources that essentially do not depend on water
availability for their operation. Special attention is also
paid to assets in areas with a high level of water stress to
develop technological solutions that reduce consumption.
Ongoing collaboration with local watershed management
authorities enables us to adopt the most effective shared
strategies for the sustainable management of hydropower
generation assets.
Enel Chile has put in place an Environmental Policy, which
is part of the Enel Group's Environmental Policy in force
since 1996, updated in 2018, and which is based on four
basic principles:
– Protect the environment by preventing impacts.
– Improve and promote the environmental sustainability
of products and services.
– Create
shared
value
for
the
Company
and
stakeholders.
– Adopt and meet voluntary commitments, promoting
ambitious environmental management practices.
Finally, practical actions are being taken for ecosystems to
protect, restore, and conserve biodiversity in species and
natural habitats, respecting the mitigation hierarchy (avoid,
minimize, repair, and compensate). as well as carrying out
appropriate land, marine, and river monitoring procedures
to verify the effectiveness of the adopted measures.
The Enel Group actively participates in international
engagement with influential stakeholders and networks
(e.g., Business for Nature, Taskforce on Nature-related
Financial
Disclosures,
World
Business
Council
for
Sustainable Development, and Science-Based Targets for
Nature) on issues related to nature and biodiversity.
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Procurement, Logistics and Supply Chain
The
procurement
processes
and
the
associated
governance documents make up a structured system of
rules and control points that combine the achievement
of the economic objectives of the business with full
compliance with the fundamental principles established in
the Code of Ethics, the Enel Global Compliance Program,
the Zero Tolerance with Corruption Plan and the Human
Rights Policy, without renouncing the promotion of
sustainable economic development initiatives.
These principles were incorporated into Enel Chile's
organizational processes and controls, adopted to
establish relationships of trust with all its stakeholders, as
well as to define stable and constructive relationships that
are not based exclusively on financial competitiveness but
are also based on best practices in essential areas for the
Group, including the prevention of child labor, occupational
health and safety, and environmental responsibility.
Enel Chile's procurement processes help build a resilient
and sustainable supply chain by thinking in terms of the
circular economy and fostering innovation, as well as
sharing the Group's values and objectives with suppliers,
who then act as facilitators to help Enel Chile achieve
its goals. This supply chain manages and integrates
sustainability with its suppliers in three stages: supplier
selection, bidding and hiring processes, and contract
management. Even before the procurement process
begins, a single global supplier qualification system
verifies that potential suppliers who intend to participate
in procurement procedures are in all respects aligned with
the vision and the Company's expectations.
People and Organization
The Enel Group has placed sustainability at the heart
of its strategy as the center of its business model to
contribute to reaching the Sustainable Development
Goals of the United Nations 2030 Agenda. The Group
has incorporated sustainability in different geographical,
economic, and social contexts to guide the Fair Transition,
which is essential for the planet's future, accelerating the
decarbonization of its energy mix by growing renewables
and increasing the electrification of consumption.
The
profound
social,
economic,
and
cultural
transformations of today, from energy transition to the
processes of digitalization and technological innovation,
have a profound impact on the workplace, renewing
paradigms and imposing significant adjustments to
organizations that require new professional skills and
competencies.
To cope with change, it is critical to act inclusively,
putting people at the center of the Company’s social
and professional dimensions and providing them with
the tools they require to deal with this transcendental
transformation.
Organizations must increasingly embrace more agile,
adaptable, and sustainable work and business models
throughout the value chain. Implementing policies
promoting each person's uniqueness and skills is also
critical, recognizing that the individual's contribution is
an essential element in producing widespread and shared
value.
The importance of people and the effective management
of human resources is crucial in the process of
transitioning to renewable energy. They serve as catalysts
and have a solid connection to the specific goals of
this change. The main objectives include improving
digital skills and competencies, promoting continuous,
personalized,
flexible,
accessible,
cross-functional
reskilling, and upskilling our workforce to ensure long-
term employability. Additionally, there is a focus on sharing
industry best practices and providing training for suppliers
and contractors who work with our employees. The
active involvement of the corporate purpose is stressed
to achieve results and improve the motivation and well-
being of individuals. Furthermore, developing systems
for evaluating the organizational climate and work
performance is prioritized. The dissemination of diversity
and inclusion policies across all countries where the
Group operates and promoting an inclusive organizational
culture based on the principles of non-discrimination and
equal opportunities are crucial for attracting and retaining
talent.
The Group is involved in improving the resilience and
flexibility of organizational models by simplifying and
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digitalizing processes to enable the efficiency and
autonomy of individuals and teams, strengthening
processes to empower people, and fostering an
entrepreneurial approach through a gentle leadership
model that values talents, people's attitudes, and
aspirations. The hybrid work model, which combines
face-to-face and remote work in flexible proportions that
consider everyone's needs, as well as the use of innovative
and flexible models, are tools that seek to support this
evolution of organizational culture based on trust and
responsibility rather than hierarchy and control.
Aligned with this strategy, the social conversation is
progressing towards a model that increasingly emphasizes
the importance of each person. For instance, the Enel Group
and trade unions have entered into a "People Charter," a
groundbreaking agreement prioritizing individuals' well-
being, engagement, motivation, and participation. These
concepts have also been adopted, implemented in several
countries worldwide, and managed by the consortium.
Similarly, in Chile, the People Statute was ratified. The
commitment also seeks to establish individuals within the
Company who, acting as "ambassadors," advocate for
adopting shared models and behaviors that prioritize the
sustainability of relationships.
Risk Training
Enel Chile is highly committed to risk management and
promoting a risk management culture among all its
employees. That is why, in March 2023, the Company's Risk
Control area organized the workshop "Risk Management -
Close To Business 2023". This workshop was attended by
190 Enel Chile employees from various lines of business.
The forum developed issues related to the Company's risk
governance, emphasizing everyone's risk management
responsibility and achieving strategic objectives.
Similarly, in August 2023, Enel Chile's Risk Control area
provided training for contract managers to promote the
importance of mechanisms aimed at mitigating credit and
counterpart risks.
These participatory sessions with employees are part
of the Lifelong Learning or continuous learning cycles
promoted by the Company, which puts people at the
center, facilitating empowerment and learning self-
management.
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ZERO EMISSIONS
AMBITION
ZERO EMISSIONS AMBITION
Specific
CO2 emissions
(Scope 1)
generation
128 gCO2/kWheq
<105 gCO2/kWheq
Renewable
generation
CAPEX
of low carbon
products, services
and technologies
74%
94 %
Enel Chile CO2
emissions goals
(Scope 1) generation
by 2026
Climate change is the primary global challenge of
the twenty-first century, and Enel Chile is leading the
worldwide energy transition toward zero emissions to
combat it.
This can be seen in the dedication of the Enel Group,
including Enel Chile, to the "Business Ambition for 1.5
C" campaign, which has been endorsed by the United
Nations and other member organizations, in line with
the criteria and recommendations of the Science Based
Targets initiative (SBTi).
Enel Chile, operating under the Enel Group umbrella, has
established the goal of achieving zero emissions by 2040.
To accomplish this, the company has adopted a business
model that is consistent with the objective of limiting the
temperature rise to 1.5°C above pre-industrial levels.
A decade ago, Enel Chile began its investments in renewable
energy, which made it possible to close all its coal-fired
plants in 2022. The company has set an intermediate goal
of limiting its direct emissions to 105 gCO2eq/kWh by
2026. This goal is part of its zero ambition, which is based
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on a multidimensional vision of the business, involving
its entire value chain in the decarbonization process
beyond the generation line. The study titled "Costs and
Benefits of the Energy Sector," which was conducted by
the Association of Generators, estimates that by 2050, the
rate of increase in electrified consumption will be 54%.
Enel Chile is allocating substantial resources towards the
digitalization of the power grid and the development of
infrastructures critical for electrifying industrial, municipal,
and community consumption in order to accomplish this
objective.
Furthermore, the company provides Enel X services that
aid in the realization of Chile's objectives established at
COP26: carbon neutrality by 2050 and electromobility
by 2035. In addition to these efforts, a circular economy
roadmap is in place.
The Company's climate action is an embodiment of its
strategy, making a significant contribution to the energy
transition towards the achievement of the seventeen
Sustainable Development Goals (SDGs). Specifically, the
organization increases renewable energy generation
in pursuit of SDG 7 (affordable and clean energy). It
invests in a digitalized network for the electrification of
consumption as part of SDG 9 (industry, innovation, and
infrastructure). SDG 11, which pertains to sustainable cities
and communities, encourages the adoption of electricity
as a substitute for fossil fuels by industries, institutions, and
citizens. Energy transition and electrification initiatives,
spearheaded by SDG 13, represent comprehensive climate
initiatives implemented by the electricity sector across the
entire country.
Engaging stakeholders in climate action
Climate change represents a challenge for companies and
society in general, affecting biodiversity and ecosystems.
To address these effects comprehensively, a global
response involving institutions, companies, citizens, and
communities is required. In this context, Enel Chile is
committed to promoting the electrification of energy
consumption through clean sources. It is also devoted to
modernizing the electricity grid to meet the challenges
of climate change and move towards a renewable energy
matrix.
Environmental sustainability and climate action are at
the heart of Enel Chile's strategic objectives. We work
closely with all stakeholders, fully supporting the principles
of a just transition to ensure that no one is left behind.
In addition, in order to provide greater transparency
in communications and relationships, performance is
reported following international standards such as the
Global Reporting Initiative (GRI), the indicators of the
Sustainability Accounting Standards Board (SASB), and the
impact of climate risks is evaluated in accordance with the
recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD).
• Materiality analysis: allows stakeholders to be consulted
on their priorities, directly addressing climate change
and the Company's performance. It is also considered in
the strategy's planning and development.
• Human rights due diligence: through due diligence
processes, potential risks or effects on the right to live
in a decontaminated environment and access to timely
environmental information are raised. Any gaps are
included in remediation or mitigation plans.
• Risk matrix: climate risks, assessed qualitatively and
quantitatively, are integrated into the business risk
matrix.
• Community engagement: Investments are made in
initiatives that encourage communities to participate
in the just energy transition by implementing renewable
energy models and solutions based on nature or the
circular economy.
• Sustainability
indicators
for
the
supply
chain:
sustainability factors are incorporated into the bidding
processes, recognizing incentives for suppliers who
take action to minimize environmental impacts and
who participate in the Company's objectives in terms of
decontamination and electrification of consumption.
• Internal communication: Internal events in which issues
of energy transition, sustainable business, circular
economy, and climate change are addressed and
promoted, mostly on virtual platforms.
• Presentations and meetings with investors: through
Investor Day, tangible actions to move towards low-
carbon economies are announced. In addition, progress
is reported on each quarter.
• Board of Directors: Addresses sustainability initiatives,
including those dedicated to climate change.
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• Report to the Board of Directors: The Sustainability Plan
and progress, including indicators of climate action, are
presented quarterly.
• Communication on social networks: The commitment
to a digital society is reinforced by using social networks
to raise public awareness on issues related to climate
change, including decarbonization, renewable energy
development, water management, a circular economy,
electrification, and electromobility.
Climate Change Policy Advocacy
As part of the Enel Group, Enel Chile adopts principles,
commitments,
and
guidelines
related
to
policies,
regulations, and partnerships to promote issues linked to
the energy transition and climate change at the national and
global levels. At the Enel Group level, global perspectives
are developed and aligned, providing position papers on
climate policies. These documents serve as a guide for
the Company's interaction at the local level, as well as for
regulatory discussion and engagement with institutions
and stakeholders in the climate action debate. For more
details, please refer to Enel SpA's Sustainability Report.
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Framework Law on Climate
Change (LMCC)
Enel Chile promotes economic, financing, and tax instruments that contribute to the investment of
complementary or additional environmental initiatives that lead to the mitigation of greenhouse gas emissions
and the goal of carbon neutrality by 2050, adopted by Chile.
Long-Term Climate Strategy
(LTCS)
The Company is committed to electrification programs, increasing the production of renewable energies, such
as green hydrogen, and incorporating energy storage systems. At the same time, it promotes the conservation
of natural spaces and carbon capture through environmental investment in ecosystem service management
alternatives.
Nationally Determined
Contribution (NDC)
Enel Chile participates in the wood-burning stove replacement program to reduce black carbon pollution in the
country's most affected cities. This action supports the mitigation goal of the Nationally Determined Contribution
(NDC), which is aligned with the Low Carbon Growth Strategy (LCS). The company also contributes to the
closure of coal-fired plant operations and collaborates with the San Ignacio del Huinay Foundation to conserve
biodiversity.
Just Transition Strategy
Enel Chile set a precedent by bringing forward the definitive closure of its last coal-fired plant, positioning it as
the first company in the country to definitively eliminate coal from its energy matrix and continue its path as the
leading renewable energy operator.
Energy 2050: Chile's Energy
Policy
Enel Chile's objectives include maintaining and strengthening its portfolio of large-scale renewable energy
plants, focusing on solar and wind energy. Opportunities are also being explored in green hydrogen, and the
electrification of energy uses, with the aim of promoting a resilient electricity system for generation and
distribution.
Chile's Energy Efficiency Law
The country's energy efficiency culture is stimulated, promoting the constant development of Enel's services and
the rational use of energy. Currently, energy efficiency projects, such as the implementation of LED lights, are
being proposed.
Law 20.920: Extended
Producer Responsibility
(EPR)
Enel Chile evaluates the opportunities to valorize waste and the feasibility of setting up startups that allow the
creation of management entities for its processing in its plants.
2030 Agenda for
Sustainable Development
The Company is committed to contributing specifically to four of the 17 Sustainable Development Goals (SDGs)
without rejecting its contribution to the rest of the goals. This commitment to the SDGs arises from the definition
of the sustainable business model, and therefore, they are incorporated into the Company's Strategic Plan.
The Corporate Leaders
Group for Climate Change
(CLG) Chile
The company is part of this organization that offers the opportunity to promote climate action policies, making
sure that they incorporate the perspective of the business sector.
Pacto Global
Enel Chile is committed to integrating the Ten Principles of the Global Compact into its strategy, culture, and daily
actions, as well as participating in collaborative projects that contribute to the Sustainable Development Goals
(SDGs). In addition, it will communicate these commitments to stakeholders and the general public.
Regional Center for Private
Sector Support for Latin
America and the Caribbean
By participating in this initiative, the Company hopes to foster collaboration with its member organizations and
the United Nations system as an alliance. By implementing a variety of international sustainability initiatives, it
intends to confront global trends that impact the global business environment directly.
Enel's advocacy activities are aligned with the Paris
objectives and its business model (for more information,
see the Institutional Relations section). Relationships are
maintained with institutional stakeholders, associations,
non-governmental organizations, and academia, with the
view to strengthening environmental sustainability and
reducing greenhouse gas emissions.
Position on climate-related frameworks, policies, and partnerships
As the climate challenge becomes more apparent and the
necessity for every player to collaborate in order to tackle
opportunities and solutions associated with this matter
becomes increasingly evident, regulatory frameworks for
global, regional, and national policy expand and develop.
Enel Chile, therefore, abides by the subsequent guidelines:
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Board of Directors
• Examine and approve the company's strategy, including the annual budget and business
plan, to direct investments towards low-emission economies and promote a sustainable
business model that generates long-term value.
• Guide and evaluate the adequacy of the Internal Control and Risk Management System (ICFR),
defining the nature and level of risk compatible with the Company's strategic objectives,
including those related to climate change.
• Address climate-related issues reflected in the Company's strategies and operations.
In 2023, the Board of Directors addressed issues related to climate change, reflected in the
strategies and actions implemented in 10 of its 12 sessions held, particularly during (i) the review
and approval of the Company's Business Plan, (ii) the definition of the remuneration policy
for 2023; (iii) the review of the content of the Sustainability Report for the financial year 2022
and the Integrated Report in accordance with General Standard 30 of the Financial Market
Commission, for the same year. In addition, issues related to this subject were discussed as
part of the studies dedicated to operations linked to the decarbonization strategy, as well as in
relation to investor dialogue activities.
Directors’ Committee
• Advising the Board of Directors on the evaluation and decision-making related to sustainability,
the performance of the sustainability plan, including any issues related to climate change,
biodiversity, and the circular economy, and the Company's interaction with stakeholders.
• Examine and analyze the climate objectives and the articulation of the contents published in
the Sustainability Report, issuing a special prior opinion to the board of directors.
In 2023, the Directors’ Committee addressed issues related to climate change, evidenced in
the strategies and implementation methods in 3 of the 11 sessions held, especially during the
review of the presentations on the main activities carried out by the Company in sustainability,
on the status of implementation of the Sustainability Plan and in relation to Enel's inclusion in
the main sustainability indices, as well as in regard to investor dialogue activities.
Governance for Climate Change
Enel Chile's corporate governance defines specific tasks
and responsibilities in its structure to guarantee that
risks and opportunities related to climate change are
considered in all relevant business decision-making
processes.
Corporate Governance
Among the main functions of its different bodies are the following ones:
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CEO
• Define a sustainable business model by identifying a strategy aimed at guiding the energy
transition towards a low-carbon model.
• Manage business activities related to Enel's commitment to climate action.
• Report to the Board of Directors on the steps taken in the exercise of its powers, including
business activities aligned with the Company's commitment to tackle climate change.
• Control the management of business risks, including those related to climate change.
Structure
The Company has a team of managers specialized in the
management of risks and opportunities related to climate
change in their respective areas. Its main functions are:
• Consolidate the scenario analysis and the management
of the strategic and financial planning process aimed
at promoting a sustainable business model, placing
climate action at the center of the strategy.
• Develop activities related to avoiding or minimizing
the risks and environmental impacts of operations,
adapting the business to the effects of climate change,
and promoting the generation of renewable energy.
• Adopt sustainability criteria in supply chain management
and the development of digital solutions to promote
technologies that facilitate the energy transition and
aim at better adaptation to climate change.
• Promote decarbonization and guide the energy
transition process towards a low-carbon business
model within the areas of its responsibility.
Investment approval is the responsibility of committees
that operate both at the business line and Enel Group
levels. The CEO presides over the latter and is responsible
for guaranteeing that all investments are consistent
with the organization's commitment to implement a
decarbonization strategy by 2040 and advance a low-
carbon business model.
Climate Change Incentive System
The Remuneration Policy includes several mechanisms to
move towards the energy transition, in particular, a short-
term variable remuneration (MBO) that can incorporate
objectives related to the specific role of each manager.
For example, objectives to improve the quality of service in
distribution, or related to energy transition solutions within
Enel X development of renewable energy or increases in
efficiencies and availability of plants for managers within
the generation line of business.
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Climate change and long-term scenarios
As part of its actions to address climate change, Enel Chile
promotes transparency in its disclosure of the impacts
of climate change and its commitment to adopt the
recommendations of the TCFD (Task Force on Climate-
related Financial Disclosures) of the Financial Stability
Board and follow all published updates.
The TCFD Advisory Board has been working on scenarios
since 2020. Since then, Enel Chile, through the Enel Group,
has participated in several initiatives related to scenario
analysis, sharing its experience to support an increasingly
widespread and transparent implementation of these
practices in a growing number of companies.
Scenario Analysis and Planning
Enel employs short-, medium-, and long-term scenarios
in its planning, capital allocation, and risk management.
These scenarios allow the company to model alternative
futures, considering key variables such as compliance with
the goals of the Paris Agreement. This way, the Company
can explore various future possibilities, designing different
trajectories, times, and options to support the strategic
decision-making process. The goal is to maximize
opportunities and mitigate risks effectively.
To support scenario analyses, Enel identifies and analyzes
short-, medium- and long-term trends. This provides an
understanding of how market forces and macroeconomic
trends may influence the transition to a more sustainable
energy sector. This information is used to define actions
that boost market positioning and take advantage of
opportunities in the environment.
Scenario Benchmarking
Comparing external energy scenarios is a starting point
for building strong internal scenarios. Numerous global,
regional, and national energy transition scenarios have
been published by various suppliers and designed for
a wide range of purposes, from government planning
to business decision-making. The comparison involves
analyzing external transition scenarios to contrast the
results in terms of the energy mix, emissions trends, and
technology choices and identifying the main drivers of the
energy transition in each of them.
At Enel, the benchmarking activity of external energy
transition scenarios includes the following steps:
1. Analysis of global and national scenarios. This analysis
is based on the study of reports and datasets and is
complemented by an ongoing dialogue with analysts
from leading scenario vendors. Global energy scenarios
are usually classified according to the level of climate
ambition:
• Stated policies based on current policies or continuity
scenarios;
• Paris Aligned: scenarios that meet the objectives of
the Paris Agreement, i.e., compatible with the goal of
limiting global temperature rise to "well below two °C"
above pre-industrial levels;
• Paris Ambitious/Net Zero: global energy scenarios that
chart a path to net-zero emissions by 2050, consistent
with the most ambitious goal of the Paris Agreement,
i.e., stabilizing global temperature rise to 1.5°C, albeit
with different probability intervals.
2. Data collection and analysis and identification of the
scenario drivers and the energy transition. The data
includes all the main energy system metrics such
as primary energy, total and final energy by sector,
electrical capacity by technology, electricity generation
by technology, hydrogen production, electric vehicle
fleet, etc. Data analysis provides an understanding of
the critical elements of the Stated Policies scenarios
and the identification of the drivers accelerating
the energy transition in the Paris Aligned and Paris
Ambitious scenarios.
3. Preparation of a summary document of the data
analysis and digital representation of the main metrics
of the external scenarios. This document provides
information and support for senior management when
selecting the framework scenario.
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19 IEA, 2023, World Energy Outlook: 53%; IRENA, 2023, World Energy Transition Outlook: 51%.
20 IEA, 2023, World Energy Outlook: 89%; IRENA, 2023, World Energy Transition Outlook: 91%.
20
15
20
25
30
35
40
45
50
30
40
50
60
70
80
90
100
Renewable Generation (%)
≤2 °C
>2 °C
NZ@2050/~1.5 °C
Temperature increase
Source: in-house data processing: IEA World Energy Outlook 2023, BNEF New Energy Outlook 2022, IRENA World Energy Transition Outlook 2023,
Enerdata Eneruture 2023.
2022
Electrification Rate %
NZS
Bloomberg NEF
ETS
Bloomberg NEF
Enerbase
Enerblue
Energreen
PES
1.5C
APS
STEPS
NZE
> 2º
< 2º
~1.5º
Renewable generation and electrification in the global
transition scenarios until 2050
From the analysis of the various external scenarios, it
is concluded that there is a consensus among energy
analysts on the main drivers to achieve climate goals: the
process of electrification of energy end-uses and the
increase in electricity generation from renewable sources,
both in the short and long term. Specifically, in scenarios
that aim to limit global temperature rise to 1.5°C, the
share of renewable energy in global electricity generation
reaches approximately 90% by 2050, compared to 30%
in 202219. In addition, the rate of end-use electrification
increases to more than 50% by 2050, compared to 20%
in 202220.
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Macro-Finance
Energy
Climate
Integrated Models
Complete, integrated, state-of-the-ar modeling
ML
Granularity &
geographic Coverage
Forward-looking
metrics & KPIs
Integration of
interdependencies
Open databases
available to
stakeholders
Automation and
advanced analytical
techniques
Monitoring of country risk
analysis and dedicated
macroeconomic-financial
scenarios
Broad coverage of geographic
and market indicators focused
on areas of presence
High-resolution available
climate scenario data
Main countries of interest to
Enel. Developed to manage
integrated business models
Monitoring of market
expectations and sensitivity
analysis on new social and
technological paradigms
Monitoring of the evolution of
electricity demand and price
volatility, including a study on
regulatory impacts and
transition
Standard and/or ad hoc
metrics for the evaluation of
phenomena of interest in
future scenarios
Elaboration of scenarios by
economic sector that can
provide electrification and
efficiency trends
General Equilibrium Models
and Machine Learning
Techniques for big data
management
Econometric Models and
Neural Networks for
Forecasting
Analytics and machine learning
for georeferenced big data
management in scalable cloud
environments
Use of system models
optimizing technologies to
minimize emissions and costs
Inclusion of
socio-environmental effects in
analyses to quantify the
impacts of actions
Impact analysis with
exogenous variables
(macroeconomic and climatic)
Integration of exposure data
(e.g., population density,
location/value of assets)
Integrated management of
energy supply and demand
Regular updates on interactive
platforms optimized for
graphical analysis
Development of an integrated
and automatically updated
database
Platform to share, view and
download results
Technological database for
each service: types of electric
cars, heat pumps, ...
Energy and Climate Transition Scenarios
Enel builds scenarios within a comprehensive framework
that ensures coherence between the energy transition
scenario and the physical climate scenario:
• The energy transition scenario describes how energy
production and consumption evolve in various sectors
in a specific economic, social, political, and regulatory
context.
• The physical scenario includes future trends of climate
variables in terms of frequency and intensity of acute
and chronic events.
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To make strategic decisions, Enel collects and processes
a large amount of data on climate and energy scenarios
through constant internal and external dialogue. Models
are used to evaluate the effects of the energy transition
and climate phenomena on the national energy system.
Furthermore, TCFD guidelines are followed to determine
risks and opportunities related to climate change. This
process is divided into five steps.
1
2
3
5
F
I
V
E
S
T
E
P
S
Impact
Assessment
1
Identification of trends and factors
imporant to the business (e.g. electrification
of demand, heat waves, etc.)
2
Development of connectors between
climatic and transition scenarios and
operating variables
4
Calculation of business impacts (e.g.,
changes in results, losses, investments)
3
Identification of risks and opporunities
5
Strategic actions: definition and
implementation (e.g. capital allocation,
resilience plans)
1
2
3
4
5
Energy Transition Scenarios
The energy transition scenario describes how energy
production along with energy consumption can change
according
to
geopolitical,
economic,
regulatory,
competitive, and technological factors. It corresponds
to a trend of greenhouse gas emissions and a climate
scenario, implying some increase in temperature by the
end of the century compared to pre-industrial values.
Importantly, in the face of carbon dioxide emissions, the
future climate scenario is not deterministic. The IPCC also
provides, for each climate scenario, both mean values of
global warming for the year 2100 and the very likely range
(i.e., the range composed of the 5th - 95th percentiles).
The main assumptions considered in defining Enel's
energy transition scenarios include the macroeconomic
and energy context, regulatory policies and measures,
evolution, costs, and the adoption of energy production,
conversion, and consumption technologies.
The reference scenario for planning called the Reference
scenario is a Paris-aligned scenario, which seeks to
achieve the objectives of the Paris Agreement, i.e., an
increase in global average temperature compared to pre-
industrial levels below two °C, with a higher level of climate
ambition than the business-as-usual scenario but without
assuming the global achievement of the Net Zero goal by
2050, given the level of global ambition and the slowdown
in the speed of the energy transition that the current
macroeconomic and energy context is causing at the local
level in some variables of the transition.
To evaluate risks and opportunities related to the energy
transition, compared to the reference scenario, alternative
scenarios have been defined based on assumptions about
the degree of global and local climate ambition: a Slower
Transition scenario, which reflects a slowdown in the
energy transition in the short term in some regions, and
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Brent ($/bbl)
2023(2)
2030
Enel Scenario
82
~74
Medium Benchmark (1)
~77
Maximum Benchmark
~91
Minimum Benchmark
~64
API2 ($/ton)
2023(2)
2030
Enel Scenario
129
~83
Medium Benchmark (1)
~85
Maximum Benchmark
~110
Minimum Benchmark
~60
CO2 EU – ETS (€/ton)
2023(2)
2030
Enel Scenario
84
~120
Medium Benchmark (1)
~ 128
Maximum Benchmark
~150
Minimum Benchmark
~115
TTF (€/MWh)
2023(2)
2030
Enel Scenario
41
~30
Medium Benchmark (1)
~26
Maximum Benchmark
~30
Minimum Benchmark
~16
(1) Source: IEA – Announced Pledges Scenario, BNEF, green case scenario, Enerdata green scenario. N.B. The scenarios used as a reference were
published at different times of the year and may not be up to date with the latest market dynamics.
(2) Balance data
an Accelerated Transition scenario, characterized by an
increase in ambition compared to the Reference scenario
in particular in some variables.
The assumptions about the evolution of commodity prices
in the Reference scenario are consistent with external
scenarios that achieve the goals of the Paris Agreement.
In particular, sustained growth in the price of CO2 is
expected by 2030, caused by the progressive reduction
in the supply of permits in the face of growing demand
and a marked decrease in coal prices due to declining
demand. As for gas, it is estimated that price tensions will
decrease further in the coming years due to a rebalancing
between demand and supply at a global level. Finally, a
gradual stabilization of the price of oil is expected, with an
estimated peak demand around 2030.
Alternative scenarios, on the other hand, foresee an
acceleration of decarbonization, driven by regulation, and
at the same time, a faster decline in demand for fossil
fuels, inevitably translating into lower prices for these
commodities by 2030. In the case of a slower transition,
fuel demand will peak more gradually, supporting energy
commodity prices.
With regard to full compliance with the Paris Agreements,
i.e., stabilizing the global average temperature at +1.5°C,
uncertainty persists that some countries could remain on
inertial trajectories and fail to take adequate measures to
reduce their emissions in a timely manner, thus delaying
the decarbonization process towards net-zero emissions
by 2050. However, Enel Chile, as part of the Enel Group,
operates a business model and has defined strategic lines
that agree with the highest ambition of the objectives
of the Paris Agreement, i.e., consistent with an increase
in the global average temperature of 1.5°C by 2100, as
certified by the Science-Based Targets initiative (SBTi). The
Enel Group, of which Enel Chile is a part, has set a 2040
target of achieving zero direct emissions (scope 1), with
fully renewable electricity generation and zero emissions
related to energy retail activity (scope 3).
Local Transition Scenarios
Following the Enel Group’s guidelines, Enel Chile uses
specialized models to simulate the long-term energy
balance in the main countries where it operates. These
models aim to minimize system costs, meeting the goals
of the Paris Agreement. This is achieved by setting limits on
long-term CO2 emissions in line with the Paris Agreement
commitments and current and ongoing policies in each
country. In addition, short-term market dynamics and the
adoption of country-specific technologies are considered.
The definition of internal transition scenarios responds to
the need for more flexible models and greater geographical
and operational precision for the key variables that affect
the various businesses of the Enel Group. This contrasts
with the scenarios offered by third-party providers, which
tend to have a global or regional scope and are only
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Scenario
Average temperature increases above pre-industrial levels 1850-1900
SSP1 - CPR 2.6
+1.8°C by 2100. This scenario is used both for the evaluation of physical phenomena and for analyses that consider
an energy transition consistent with ambitious mitigation targets. In analyses that consider both physical variables and
transition variables, the SSP1-RCP 2.6 scenario is associated with the Reference and Accelerated Transition scenarios.
SSP2 - CPR 4.5
+2.7°C by 2100. This scenario has been identified as the most suitable to represent the current global climate and
political context. It is consistent with surrounding estimates of temperature increase that consider current and
announced policies at the global level22. In analyses that consider both physical variables and transition variables, the
SSP2-RCP 4.5 scenario is associated with the Slower Transition scenario.
SSP5 - RCP 8.5
+4.4°C by 2100. Compatible with the worst-case scenario in which no particular measures are implemented to
combat climate change (business as usual). In this scenario, it is estimated that the global temperature increase
compared to pre-industrial levels will be about 4.4ºC in 2100, compared to pre-industrial levels.
21 IPCC Sixth Assessment Report (2021), “The Physical Science Basis”.
22 Climate Action Tracker thermometer estimates of global warming as of 2100 considering the current "Policies & action" and "2030 targets only" (December 2023
update).
23 Climate projections mainly cover the RCP 2.6 and RCP 8.5 scenarios. When available, RCP 4.5 is also provided, which is otherwise derived from the other
scenarios using pattern scaling.
24 The number of models used varies depending on the RCP scenario.
sometimes tailored to the countries where the Group
operates or has an interest, with a few exceptions for large
countries.
As far as Chile is concerned, the scenario is defined in
coherence with the carbon neutrality scenario presented
by the Ministry of Energy in the 2023-27 Long-Term
Energy Planning (PELP), published in 2021, in terms of
emission reductions, and includes ambitious targets for
the production and export of green hydrogen. The Slower
Transition scenario is characterized by a slower energy
transition, with more conservative macroeconomic
growth assumptions, without additional energy and
climate policies to those in place. The Accelerated
Transition scenario reaches net-zero emissions by 2050
and, compared to the Reference scenario, has a more
ambitious target in terms of exporting green hydrogen,
accelerating the electrification process in the residential
and industrial sectors, and phasing out coal by 2030.
Physical Scenario
Enel Chile follows the guidelines of the Enel Group to
evaluate physical risks, which has selected three climate
scenarios consistent with those published in the Sixth
Report of the Intergovernmental Panel on Climate Change
(IPCC)21. These scenarios are characterized by a level of
emissions according to the so-called Representative
Concentration Pathway (RCP), and each of them is related
to one of the five scenarios defined by the scientific
community as Shared Socioeconomic Pathways (SSP).
SSP scenarios consider general assumptions about
population, urbanization, etc. The three physical scenarios
considered are:
In order to define the effect of global climate scenarios,
the Enel Group, of which Enel Chile is a part, has launched
a collaboration project with the Department of Earth
Sciences of the International Center for Theoretical Physics
(ICTP) in Trieste, Italy, which allows it to obtain projections
of the main climate variables with a resolution ranging
from grids of ~12 Km2 to ~100 Km2 and a time horizon
2020-205023. The main variables are temperature, snow,
rainfall, and solar radiation. Compared to the analyses
carried out in the past, the current studies are based
on the use of several regional climate models: the one
developed by the ICTP, combined with other simulations,
selected as representative of the set of climate models
currently present in the literature24. This technique is often
used in the scientific community to obtain a more robust
and bias-free analysis.
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0 - 0.2
-10 - 0
0 - 10
10 - 20
20 - 30
30 - 40
40 - 52
0.2 - 0.4
0.4 - 0.6
0.6 - 0.8
0.8 - 0.9
Δ days –
Historical v. CPR
2.6
NDVI (2021-2022)
Average number of days per year with heat waves (according
to WSDI) in the RCP 2.6 and RCP 8.5 scenarios (2030-2050)
compared to the historical period (1990-2020) in Chile
In addition to the climate scenarios provided by ICTP,
natural hazard maps are used. These maps consider both
chronic and acute phenomena, some of which require an
additional level of complexity, as they depend not only on
climate trends but also on the specific characteristics of
the territory.
Natural hazard maps provide high-spatial resolution
callback times for a range of events, such as storms,
hurricanes, and floods. As described in the section "Main
risks and opportunities related to climate change," their
use is widely consolidated in Enel Chile as part of the Enel
Group to optimize insurance strategies. In addition, work
is being done on what is necessary to take advantage
of this information in line with the projections of climate
scenarios.
Other specialized suppliers are used to identify specific
climate variables, such as wind gusts.
Acute Phenomena in Chile
Heat waves
The phenomenon of extreme temperatures can be studied
thanks to the standard indicator "Warm Spell Duration
Index" (WSDI). This indicator considers heat waves that last
at least six days in a row, with daily maximum temperatures
exceeding the 90th percentile of the historical distribution.
All future scenarios calculated according to the WSDI
expect an increase in the number of heatwave days in
South America. In Chile, specifically, a significant increase
in heatwave days is expected when comparing the 2030-
2050 period with the 1990-2020 period in the RCP 2.6
scenario. This will be especially noticeable in the northern
part of the country, including the Atacama Desert area, as
illustrated in the figure below. The increase in heatwave
days will be even more marked in the most severe scenario,
CPR 8.5.
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25 One of the metrics used is obtained by processing NASA data from the Normalized Difference Vegetation Index (NDVI). NDVI quantifies vegetation by measu-
ring the difference between near-infrared light (which vegetation strongly reflects) and red light (which vegetation absorbs). This serves as a good indicator of
vegetation growth and density. The higher the NDVI value, the more abundant and healthier the vegetation is.
26 Heating Degree Days (HDD) is the annual sum of the difference between the indoor temperature (estimated at 18ºC) and the outdoor temperature, conside-
ring all the days of the year that have an outdoor temperature less than or equal to 15ºC.
27 Cooling Degree Days (CDD) is the annual sum of the difference between the indoor temperature (estimated at 21ºC) and the outdoor temperature, conside-
ring all the days of the year that have an outdoor temperature greater than or equal to 24ºC.
28 In Chile, the percentage increase is more marked than in the other LATAM countries because the absolute CDD values are very low. In historical terms, CDDs
are very close to zero in most of the country, with values of a few degrees Celsius per year only in the central zone.
Extreme rainfall
Heavy rainfall can be analyzed by looking at the variation in
daily rainfall levels that exceed the ninety-fifth percentile,
calculated as an annual average in the reference periods.
In general terms, projections of extreme precipitation
in Chile are not homogeneous, as in the rest of South
America. In the south-central zone and the far north,
on the border with Bolivia, a reduction in extreme
precipitation is expected in the RCP 2.6 scenario
compared to the historical reference period. However, in
other areas in the north, on the coast and the border with
Argentina, increases in extreme rainfall are expected, with
varying intensities. This disparity is also seen in the RCP
8.5 scenario.
Fire Risk
The Fire Weather Index (FWI), an international indicator
that considers variables such as temperature, humidity,
rainfall, and wind, is used to evaluate fire risk. The
climate projections provided by the ICTP are essential to
understand the evolution of fire risk and support proper
business management. For a more complete assessment
of fire risk, it is helpful to complement the analysis with
the study of vegetation indices, as vegetation can serve as
fuel and increase the likelihood of fire spread25.
In Chile, fire risk, measured as the number of days per year
when the FWI > 45 (extreme risk), varies from area to area.
Based on a comparison between the RCP 2.6 scenario
(2030-2050) and the historical period (1990-2020), the
number of days with high fire risk increases, especially in
northern Chile, on the border with Bolivia and Argentina,
and in the center of the country. In the RCP 8.5 scenario,
an even more significant increase in the number of days
of extreme fire risk is expected. In the rest of the country,
this phenomenon remains the same or decreases slightly
in both scenarios considered.
Cold spells
There are several indicators to measure extreme cold-
related events. One of them is the frost days index, which
represents the average number of frost days per year.
When comparing the RCP 2.6 scenario (2030-2050) with
the historical period (1990-2020), the number of frost
days in Chile will remain unchanged in both RCP scenarios.
Only in some areas of the center-north and far south is a
decrease in frost days expected, with this decrease being
more pronounced in magnitude and scope in the RCP 8.5
scenario compared to the RCP 2.6. Notably, the reduction
in frequency does not preclude an increase in the intensity
of this acute phenomenon, an issue that the Group is
investigating in detail at the moment.
Chronic Phenomena in Chile
Temperature
For Chile, we carry out the study of potential variations
in heating and cooling demand linked to chronic
temperature changes. The variations of Heating Degree
Days (HDD)26 and Cooling Degree Days (CDD)27 in the 2030-
2050 period are calculated with regard to the 1990-2020
period, based on data from six models, with a resolution
of 25 km x 25 km. The data are calculated as a national
average, weighting each geographic node by population
thanks to the use of the Shared Socioeconomic Pathways
(SSPs) associated with each RCP scenario. In Chile, CDD
is increasing progressively in all scenarios. In the RCP 2.6
scenario, they increase by 35%28. In the RCP 4.5 scenario,
compared to the historical period, this increase is as high
as 113% and is even more marked in the RCP 8.5 scenario.
As for HDDs, a considerable reduction (-5%) is estimated in
the RCP 2.6 scenario. This trend intensifies in the RCP 4.5
scenario, reaching ~-8%.
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COOLING DEGREE DAYS (CDD)
POPULATION DISTRIBUTION
Degrees Day
vs historical year
∆ Degrees/year
RCP 2.6 v. history
Population
(thousands of people)
-4 - -3
-3 - -2
-2 - -1
-1 - 0
0 - 1
1 - 2
2 - 3
3 - 4
4 - 5
5 - 6
0 - 2
2 - 4
4 - 6
6 - 8
8 - 10
10 - 12
12 - 14
14 -16
0 - 1.4
1.4 - 2.6
2.6 - 4.8
4.8 - 9.8
9.8 - 22.5
22.5 - 4,927.4
Cooling Degree Days (CDD) during the historical period (1990-2020)
and the expected variation in the RCP 2.6 scenario. On the right, the
distribution of the population (1990-2020) is shown in the same grid
as the climate models, highlighting the most populated areas, which
have a greater weight in the calculation of the metric at the national
level.
Rainfall
Variations in basins with hydroelectric production are
analyzed in terms of total precipitation. The analyses,
which compare the 2030-2050 projections with regard to
the 1990-2020 historical period, show a trend of rainfall
reduction in Chile, with average variations of around -5
and -7% in RCP 2.6 for some basins.
Global Impact of Transition Scenarios and Physical Scenarios on
Electricity Demand
By using integrated energy system models described
in the "Local Transition Scenarios" section, it is possible
to quantify a country's demands for services. This helps
to understand how a change in temperature can affect
long-term energy demand. To address this issue, the
Company has expanded the Reference, Slower Transition,
and Accelerated Transition scenarios mentioned above to
consider how rising temperatures impact energy needs,
not just electrical, for heating and cooling in the residential
and commercial sectors. These needs are assessed using
the 'Heating Degree Days' (HDD) and 'Cooling Degree Days'
(CDD) metrics.
The definition of a reference scenario corresponding
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Integrated Annual Report Enel Chile 2023
To further emphasize the analyses, the Slower Transition
scenario was also associated with an 8.5 CPR in addition
to the 4.5 CPR. For Chile, assuming such an additional
temperature increase results in a near-zero variation in
long-term demand (2031-2050).
RCP 2.6 (reference) vs
RCP 4.5 (slower)
Transition
Effect
Base
RCP 4.5
Slower
Base
RCP 2.6
Reference
Climate
effect
-12
-10
-8
-6
-4
-2
0
2
0.2%
-10.3%
-10.1%
Transition
Effect
Base
RCP 2.6
Accelerated
Base
RCP 2.6
Reference
Climate
effect
2
4
6
8
10
12
0.2%
10.9%
11.1%
RCP 2.6 (reference) vs
RCP 2.6 (accelerated)
Chile
Average effect on electricity demand (2031-50) of the three transition scenarios linked to the respective RCPs 2.6 and 4.5
to achieving the Paris objectives makes it possible to
associate HDDs and CDDs consistent with RCP 2.6 to both
the Reference scenario and the Accelerated Transition
scenario, characterized by a more accelerated emission
reduction dynamic. At the same time, HDD and CDD
consistent with RCP 4.5 have been associated with the
Slower Transition scenario, as this corresponds to a slower
greenhouse gas emission reduction trend.
For Chile, the effect of the transition on electricity demand,
considered individually, is negative by approximately 10%
over the 2031-2050 period in the "Slower Transition"
scenario compared to the Reference scenario due to the
different levels of ambition considered in both scenarios.
This difference is mainly attributed to assumptions
about meeting the country's ambitious green hydrogen
production targets after 2030, as set out in the National
Long-Term Energy Planning (PELP) document. If we
exclude the effect of electricity demand for hydrogen
production, for which the two scenarios have different
levels of ambition depending on different decarbonization
trajectories, the difference narrows to around 6%.
In the Accelerated Transition scenario, a higher level
of ambition is achieved in the energy transition by
implementing stricter decarbonization policies, leading
to greater electrification, greater penetration of green
hydrogen in industry and transport, and its strong
export. This leads to electricity demand values, on
average, approximately 11% higher than the baseline
of the Reference scenario over the period 2031-2050.
By removing the effect of electricity demand for green
hydrogen production, the value of electricity demand is,
on average, approximately 12% higher than the Reference
scenario over the period 2031-2050. Again, the energy
transition speed has a much more significant impact
on the level of electricity demand than the increase in
temperature as a result of climate change.
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Reference vs Slower 4.5 RCP
Reference vs Slower 8.5 RCP
Reference vs Accelerated
Transition
effect
Temperature
effect from
RCP 2.6 to
RCP 4.5
Total impact
Transition
effect
Temperature
effect from
RCP 2.6 to
RCP 8.5
Total impact
Transition
effect
Temperature
Effect of
RCP 2.6
Total impact
Chile
2024-2030
-1.50%
0.20%
-1.30%
-1.50%
0.20%
-1.20%
1.50%
0.10%
1.60%
2031-2050
-10.30%
0.20%
-10.10%
-10.30%
0.30%
-10.00%
10.90%
0.20%
11.10%
Chile
without
hydrogen
2024-2030
-0.50%
0.40%
-0.20%
-0.50%
0.50%
0.00%
2.70%
0.20%
2.90%
2031-2050
-6.20%
0.40%
-5.80%
-6.20%
0.50%
-5.70%
11.50%
0.50%
12.00%
The effect of temperature and transition on electricity demand, average over the specified period, of temperature and transition contributions for
the different combinations of transition scenarios and climate trajectories, with and without green hydrogen.
2024- 2026 TOTAL INVESTMENT PLAN
Renewables
Thermal
BESS
Grids
Others
1%
44%
25%
15%
15%
Strategy to address climate change
The organization has established the objective of attaining
carbon dioxide (CO2) neutrality by 2040 as a strategic long-
term target. In pursuit of this objective, the organization
is focusing on two concepts: firstly, the decarbonization
of its matrix, and secondly, the augmentation of users'
ultimate consumption through electrification, which
serves as a critical catalyst in reaching its target.
In pursuit of this objective, the organization has fortified
its commercial portfolio through the implementation of an
integrated strategy that facilitates the sale of renewable
electricity and services that cater to the efficiency
requirements, dependable supply, and climate aspirations
of its customers.
Circular cities have inspired the development of an
extensive array of products aimed at households, cities,
and final consumers, all of which aim to enhance and
facilitate the quality of life for their occupants.
The Company prioritized sustainable growth and the
acceleration of the energy transition in its 2024-2026
Strategic Plan, which was unveiled in November 2023.
The primary objective was to generate tangible value
for the organization, its customers, shareholders, and
the environment. The proposed strategy comprises
investments totaling US$2,300 million, of which over 80%
are designated for environmentally sustainable initiatives
in accordance with the European Union's taxonomy.
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CUMULATED
DEVELOPMENT CAPEX
GENERATION
CAPEX
Total Capex by
Technology
Solar
Bateries
Hydro
Thermal
Wind
Total Capex per Year
by Technology
Renewable (ex-hydro)
Hydro
Bateries
Thermal
14%
42%
12%
4%
28%
US$ 1,400
million
2024-26
Cumulated total
capex by type
Development
Other
73%
27%
5%
36%
19%
40%
13%
41%
7%
44%
42%
48%
5%
2%
US$ 1,900
million
2024-26
Total
0.3
0.2
0.7
0.2
1.3
Additional
Capacity
(GW)
2024
2025
2026
2024- 2026 TOTAL INVESTMENT PLAN
Quality resilience and digitalization
Grid management
Connections
17%
37%
46%
US$ 300 million
Generation
US$1,900 million, equivalent to 84% of the total investment
plan, will be allocated to generation projects. Of these,
around US$1,400 million will be spent on the development
of renewable projects using different technologies in line
with the country's commitment to decarbonization.
Distribution and Grids
Distribution grids play a central role in the energy
transition as an enabler of electrification. That is why
around 15% of the 2024-2026 CAPEX will be allocated
to new connections and digitalization of the grid to
increase access to clean energy and deliver reliability to
the grid. These are vital aspects that will allow customers
to manage their consumption, always acting as more
active consumers and participating in the dynamics of the
electricity market.
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New services for electrification
In order to expedite the process of electrification across
various sectors and industries of the country, investments
will also be allocated towards the consolidation of a
portfolio comprising innovative energy solutions and
new products, including but not limited to charging
infrastructure, electric vehicles, and energy-efficient
lighting points. The objective is to speed up the progress
of customers in the direction of sustainability and energy
efficiency by integrating services founded on technological
advancements with conventional offerings.
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Key risks and opportunities related to climate change
An
analysis
framework
consistent
with
the
recommendations of the TCFD has been adopted, which
explicitly represents the main relationships between
the types of risk and opportunities and the variability
of scenarios, indicating the methods, strategic and
operational management, and considering the appropriate
mitigation and adaptation measures.
This analysis identified two macro-categories of risks/
opportunities: those derived from the evolution of
transition scenarios and those derived from the evolution
of physical variables.
The purpose of developing the described framework is
to ensure overall coherence in light of both upstream and
downstream activities. This enables the use of resilient
alternative scenarios to analyze and evaluate the effects
of transition phenomena, including those pertaining to the
physical and energy context. In addition to the quantitative
and modeling methodology used to develop these
scenarios, an ongoing dialogue with internal and external
stakeholders is also incorporated.
The energy transition process is associated with both
opportunities and risks, including changes in the
technological and competitive landscape, electrification,
and market conduct. Physical risks are divided into acute,
associated with extreme weather events, and chronic,
which reflect gradual but structural changes in climate
conditions.
Extreme weather events can cause prolonged outages
to assets and infrastructure, as well as restoration costs
and inconvenience to customers. In the long term, climate
changes can generate new risks or opportunities, such
as variations in electricity demand and production due
to changes in temperature and the impact on production
capacity due to changes in precipitation or wind. Adapting
to these changes can also lead to opportunities for
innovation and strategic development for a sustainable
future.
Enel Chile has chosen to lead the energy transition,
preparing to capitalize on all the opportunities that arise.
The Company's strategic decisions, which are already
firmly focused on this transition, with more than 80%
of its investments aimed at improving the Sustainable
Development Goals, allow it to integrate risk mitigation and
opportunity maximization from the outset, considering the
phenomena identified in the medium and long term. These
strategic decisions are accompanied by the Company's
best operational practices.
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Scenario
Temporary
horizon
Risk Factors and
Opportunities
Description
Management
Transition
From the
short term
(1-3 years)
Policy and
Regulation
Risk/opportunity: policies on
prices and CO2 emissions,
policies and financial instruments
to support the energy transition,
review of market design and
permitting procedures, and
regulation on resilience.
The Company minimizes its exposure to risks through
progressive decarbonization and its focus on renewables,
grids, and customers. A business model aimed at
maximizing the benefits of the integrated position and
enhancing
partnership
and
management
activities
makes it possible to seize opportunities related to the
energy transition. The Company also actively contributes
to the definition of public policies through advocacy.
These activities are based on platforms for dialogue with
stakeholders with the aim of exploring ambitious national
decarbonization scenarios.
Transition
Medium-term
(2027-2034)
Market
Risk/opportunity: changes in
commodity and energy prices,
the evolution of the energy mix,
changes in retail consumption,
and changes in the competitive
structure.
The Company maximizes opportunities thanks to a
strategy aimed at the energy transition, focused on
the electrification of energy consumption and the
development
of
renewables,
and
a
geographical
positioning with an integrated presence. Considering
alternative transition scenarios, the Company evaluates
the impacts of different trends on raw material prices,
changes in the weight of renewable sources in the
electricity generation mix, and the electrification of final
consumption.
Transition
Medium-term
(2027-2034)
Products and
Services
Risk/opportunity: Lower/
higher margins and more room
for investment as a result
of the transition in terms of
penetration of electric mobility,
distributed generation, and new
technologies for the direct and
indirect electrification of final
consumption.
The Company maximizes opportunities thanks to a solid
strategic positioning in new businesses and services
beyond raw materials. In addition, considering alternative
transition scenarios, the Company evaluates the impact of
the different trends in the electrification of consumption.
Technology
The Company maximizes opportunities through strong
strategic positioning in new businesses and networks.
Given the trend of direct and indirect electrification
technologies penetration and considering alternative
transition scenarios, the Company evaluates potential
opportunities to scale current and potential businesses
and develop new solutions related to the digitalization and
resilience of electricity grids.
Acute Physical
From the
short term
(1-3 years)
Extreme event
Risk: Weather and climate events
that are particularly extreme in
terms of intensity can cause
impacts such as damage to
assets and lack of operation.
The Company adopts best practices to manage the return
to operations in the shortest possible time. It also works
to implement investment plans for resilience (e.g., in the
case of Italy). In relation to risk assessment activities in the
insurance sector, the Company manages a Loss Prevention
program for property risks, also aimed at assessing the
primary exposures related to natural events, with the help
of maintenance prevention activities and internal risk
management policies. In the future, potential impacts from
long-term trends in the most relevant climate variables will
also be integrated into the assessments.
Acute Physical
Medium
(2027-2034)
and long-
term (2035-
2050)
Market
Risk/opportunity: Higher or lower
electricity demand, influenced
by temperature fluctuations, can
impact the business. More or
less production from renewable
sources, which structural
changes can influence the
availability of resources.
The
Company's
geographical
and
technological
diversification makes it possible to mitigate the impact
of variations (positive and negative) in the same variable
at a global level. In order to manage weather and climate
phenomena in an informed manner, the Company adopts
a series of practices such as weather forecasts, real-time
monitoring of plants, and long-term climate scenarios to
evaluate possible chronic variations in the availability of
renewable resources.
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The framework outlines how physical and transition
scenarios can affect the Company's business over
different periods. These effects are assessed in the short-
medium term (1-3 years), medium-term (2027-2034), and
long-term (2035-2050).
Enel Chile follows the guidelines of the Enel Group's Climate
change risks and opportunities policy, which provides
standard procedures for identifying and managing risks
and opportunities related to climate change. This policy
informs decisions promoting business resilience and
long-term sustainable value creation, which are in line with
the adaptation and mitigation strategy.
Climate change risks and
opportunities Policy
• The main steps considered in the policy are:
• Prioritizing scenario phenomena and analysis. These activities include identifying physical
and transition phenomena relevant to Enel Chile as part of the Enel Group and consequently
elaborating the scenarios to be considered and processed through the analysis and
processing of data from internal and external sources. For the identified phenomena,
functions can be developed that link the scenarios (e.g., data on the variation of renewable
resources) to the operation of the business (e.g., the change in expected manufacturing
capacity).
• Impact assessment includes all the analyses and activities necessary to quantify the effects
at the operational, economic, and financial levels according to the processes in which they
are integrated, such as designing new buildings and evaluating operational performance,
among others.
• Operational and strategic actions. Information obtained from previous activities is
integrated into processes, informing business decisions and activities. Examples of activities
and processes that benefit from it include capital allocation, for example, for evaluating
investments in existing assets or new projects, the definition of resilience plans, and risk
management and financing activities, among others.
The risks and opportunities associated with transition
scenarios and physical variables, as well as practices
to manage weather and climate events, are presented
below. Qualitative and quantitative impact assessments
are included. The Company is committed to analyzing
and managing information in relation to climate change,
taking a step-by-step approach aligned with TCFD
recommendations and ever-evolving reporting standards.
Identifying, evaluating, and managing risks and opportunities
related to transition phenomena
In terms of the risks and opportunities associated with
transition variables, various reference scenarios are
examined along with the elements that make up the risk
identification process (such as the competitive context,
the long-term vision of the industry, materiality analysis,
technological evolution, etc.). The drivers of possible risks
and opportunities are identified, prioritizing the most
relevant phenomena. The main risks and opportunities
identified are described below.
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Policy and Regulation
Laws and regulations with stricter emission limits are both administrative, i.e., non-market-
driven and market-based.
• Opportunities: This includes both regulatory tools and market mechanisms that strengthen
CO2 price signals by encouraging investments in carbon-free technologies.
• Risks: There is a lack of a coordinated approach from the different participants and regulators,
and policy instruments are ineffective. This delays the electrification and decarbonization of
the different sectors compared to the strategy aimed at the energy transition.
Carbon Emission Limits
and Pricing
Introduction of policies, regulatory frameworks, and market rules that favor the energy
transition, with the more significant generation of renewable sources in the energy matrix,
greater electrification of consumption, energy efficiency, flexibility of the electricity system,
and infrastructure strengthening.
• Opportunities: In line with the strategy, create a more favorable framework for investments
in renewable energy, electricity technologies, and distribution grids.
• Risks: Slow administrative authorization and market design, combined with regulatory
frameworks, may limit growth opportunities.
Policies and regulations
to accelerate energy
transition and security
Improvement of standards or introduction of mechanisms to regulate investments in resilience
in the context of climate change evolution.
• Opportunities: benefits from implementing investments that reduce the risks of damage to
the company's assets, impact on the quality of service, and continuity of supply to customers
and communities.
• Risks: In extreme events of particular importance whose impact is more significant than
expected, the risk of non-recovery in adequate time and, consequently, reputational risk
would be generated.
Regulation of resilience
and adaptation
Developing policies and financial instruments that incentivize the energy transition capable of
supporting long-term, credible, and stable investment and regulatory positioning framework.
Introducing public and private financial rules and/or instruments, such as funds, mechanisms,
taxonomies, and benchmarks, aimed at integrating sustainability into financial markets and
public finance instruments
• Opportunities: creating new markets and sustainable financial products in line with
the investment framework, activating the possibility of increased public resources for
decarbonization and access to economic resources in line with the energy transition
objectives and the impacts of related costs and on financing charges; introducing subsidized
support instruments (funds and tenders) for the transition.
• Risks: insufficient actions and tools to support an acceleration of the energy transition,
uncertainty, or slowdown in introducing new tools and rules due to deteriorating public
financial conditions.
Financial measures for
the energy transition
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Market
Changes in market dynamics, such as those related to commodity price volatility, can influence
the behavior of traders, policymakers, and customers.
• Opportunities: Accelerating clean electrification as a solution to reduce energy costs
and exposure to resource volatility. Increased propensity for customers to switch from
conventional fossil fuel technologies to efficient electric technologies.
• Risks: Energy transition is "disordered" by the introduction of potentially distorting measures.
Commodity price
dynamics
End-customer propensity towards more sustainable technologies, thanks to increased
awareness of climate change risks and increased regulatory pressure.
• Opportunities: positive effects derived from the increase in electricity demand, from
increased spaces for renewables.
Market Dynamics
Technology
Progressive penetration of new technologies such as electric vehicles, storage, demand
response, and electrolyzers for the production of green hydrogen; Large-scale adoption of
digital technologies to transform operating models and "platform" business models.
• Opportunities: investments in the development of technological solutions to support the
flexibility of the electricity system. More promotion of renewable energies for the production
of green hydrogen.
• Risks: Slowdowns and disruptions in the supply chain of raw materials and semiconductors
could lead to purchase delays and/or cost increases, such as slowing down the penetration
of renewables, storage, and electric vehicles.
Incorporating
technology to support
the transition
Products and Services
With the progressive electrification of end-uses, the penetration of products capable of
lowering costs, reducing the impact in terms of local emissions, and increasing efficiency in
the residential and industrial sectors (e.g., the spread of heat pumps) is growing.
• Opportunities: There is an increased possibility of offering services that go beyond the
basics and of reducing energy expenditure and customers' carbon footprint; there is also
increased investment in grids to support the electrification of consumption.
• Risk: Increased competition in this market segment. The phenomenon depends on the
adequate development of electricity grids, which is essential to ensure increasing load levels
and continuity of service.
Electrification of
consumption Residential
and industrial processes
Use more efficient and effective modes of transport in light of climate change, with particular
emphasis on the development of electromobility and charging infrastructures.
• Opportunities: positive effects from increased electricity demand and higher margins linked
to the penetration of electricity transmission and related services beyond raw materials.
• Risks: Increased competition in this market segment.
Electromobility
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The strategy oriented towards complete decarbonization
and energy transition makes the Company resilient to the
risks arising from the implementation of more ambitious
emission reduction policies. Thanks to its geographical
location and integrated presence, it also maximizes
opportunities
for
the
development
of
renewable
generation, infrastructures, and enabling technologies.
To evaluate the risks and opportunities related to the
energy transition, the transition scenarios described in
the previous section on Enel's energy transition scenarios
were considered. Thus, the effects of the Slower Transition
and Accelerated scenarios on the variables that could have
a more significant impact on the business were identified,
especially the demand for electricity, influenced by the
dynamics of electrification of consumption and, therefore,
the penetration of electricity technologies, as well as the
electricity generation mix.
Regarding the economic impacts that could arise due to
the variable transition scenarios, the Company analyzed
the EBITDA impacts that the Slower Transition and
Accelerated Transition scenarios could have on the results
of the year 2030 compared to the Paris baseline scenario.
In terms of electrifying energy consumption, the Slower
Transition scenario foresees lower penetration rates of
the most efficient electric technologies, especially electric
vehicles and heat pumps. This will result in a decrease
in electricity demand compared to the Paris scenario,
with limited impacts estimated. At the same time, lower
electricity demand means less room for renewable
capacity development, impacting the generation business.
Scenario
Risks & Opportunities Category
Description
Temporary horizon
Transition
Market
Risk/Opportunity:
Larger/smaller space for investment in new
renewable capacity and change in the price of
energy corresponding to a different degree of
renewable energy penetration
Medium*
Transition
Market
Risk/Opportunity:
Lower/higher margins due to different degree of
consumption electrification
Medium*
Upside (Accelerated Transition v/s Reference)
Downside (Accelerated Transition v/s Reference)
*2030 year benchmark
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On the other hand, in the Accelerated Transition scenario,
a significant increase in green hydrogen exports is
anticipated, accompanied by a rapid reduction in the costs
of production technologies. This translates into a higher
penetration of this energy carrier, increasing national
electricity demand and renewable capacity installations
compared to the Paris scenario.
All scenarios, but particularly Paris and Accelerated
Transition, will lead to a considerable increase in the
complexities that grids will have to manage in different
geographies.
Anticipated
developments
include
a
substantial surge in distributed generation and other
resource-related
investments,
including
storage
systems; a rise in the adoption of electromobility
accompanied by charging infrastructures; an acceleration
in the electrification of consumption patterns; and
the emergence of novel players exhibiting distinct
consumption patterns.
This setting will lead to a decentralization of connection
points, an increase in electricity demand and the average
amount of power needed, and a substantial degree of
variability in energy transfers, all of which will necessitate
grid management that is dynamic and adaptable. As a result,
incremental investments are anticipated to be needed to
guarantee the appropriate connections, levels of quality,
and resilience in this scenario, thereby encouraging the
implementation of new operating models. To guarantee
satisfactory financial gains in the infrastructure and grid
sector, these investments must be substantiated by
credible policy and regulatory frameworks.
Impact description
Business Line
Impact type
quantification
Upside/
Downside
Quantification- range
<100 €mln
100-300
€mln
>300 €mln
Two alternative transition scenarios to the
baseline scenario are considered, for which
the Group has assessed the effects of a
different degree of penetration of renewables
on the reference price of energy and
additional capacity
Generation
Enel X
Ebitda/year
Upside
Downside
Considering
two
alternative
transition
scenarios to the reference scenario, the
Group assessed the effects of a change in
average unit consumption and demand for
electricity, as a result of greater or lesser
electrification
Distribution grids
Enel X
Ebitda/year
Upside
Downside
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Rain/Snow
Wind
Solar
radiation
Sea Level
Temperature
of the air
Temperature
river/sea
Thermal
Solar
Wind
Hydro
Storage
Geothermal
Distribution
grids
Enel X
Priority
High
Low
Not relevant
Priority
Risk identification, assessment, and management in
relation to physical phenomena
Regarding the risks and opportunities associated with
the physical variables and taking the IPCC scenarios as
a reference, the trend of the following variables and the
associated operational and industrial phenomena as
potential risks and opportunities were evaluated.
Chronic physical changes present both
risks and opportunities
Based on the climate scenarios developed in collaboration
with the Trieste ICTP, we begin to observe material variations
between 2030 and 2050. In practice, while significant
meteorological changes are recorded, it is still difficult to
determine in the short term whether some phenomena
are undergoing structural changes, i.e., whether average
reference values are already changing. Instead, this is set
over a longer time horizon with probability intervals.
The main impacts of chronic physical changes can have
effects on the following variables:
• Electricity demand: changes in the average temperature
level that affect the potential increase and/or reduction
of electricity needs.
• Thermoelectric production: Variations in the level
and average temperatures of seas and rivers affect
thermoelectric production.
• Hydroelectric production: changes in the average
level of precipitation, snowfall, and temperatures with
potential increases and/or reductions in hydroelectric
production.
• Solar production: changes in the average level of
solar radiation, temperature, and rainfall with potential
increase and/or decrease of solar output.
• Wind production: changes in the average wind level with
potential increase and/or decrease in wind production.
Regarding the effects of chronic physical changes, the
best estimate of the relationships between changes in
physical variables and variation in the manufacturing
capacity of individual plants for different technologies
was worked out. Identifying chronic events related to each
technology and analyzing their impacts on production
capacity is crucial for assessing the long-term effects of
climate change.
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Scenario
Risks & Opportunities Category
Description
Temporary horizon
Chronic physical
Market
Risk/opportunity: Higher or lower electricity
demand
Medium-long
Chronic physical
market
Risk/opportunity: More or less renewable
generation
Medium-long
Upside setting
Downside setting
Analysis of the chronic climate change impact
on renewable generation
To determine the impact of the chronic effects of climate
change on the production of assets, ad hoc functions
have been developed for each renewable technology
(wind, solar, and hydropower) and plant. These functions
are designed to be associated with each change in
climate variables (such as temperature, solar irradiance,
wind speed, and rainfall), representing the likely changes
in terms of electrical producibility of the plants in the
Company's portfolio. The calibration of these "link"
functions was based on historical data of climatic
variables and internal references of producible energy
observed in the plant array. In this way, link functions were
obtained that are adapted to the specific characteristics
of each plant and renewable technology. As a result, it was
possible to analyze chronic climate impacts and make
future projections of climate variables (using RCP 2.6, 4.5,
and 8.5 scenarios).
Along with chronic phenomena, which involve medium
structural changes, it is necessary to study typical, and
therefore short-term, volatility. The information derived
from the ranges of variation of the chronic trends
projected by the climate scenarios and the historical
volatilities of the meteorological data were taken as input
for strategic planning through the analysis of the variations
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Impact description
Business Line
Impact type
quantification
Upside/
Downside
Quantification-range
<100 €mln
100-300
€mln
>300 €mln
Electricity demand is also influenced by
temperature, fluctuations of which can impact
the business. Although structural changes
are not expected to occur in the short term,
sensitivity analyses are used for fluctuations
in electricity demand in line with the analyzed
climactic settings.
Distribution and
grids
Ebitda/year
Upside
Downside
Renewable production is influenced by
resource availability, fluctuations of which can
impact the business. Although no structural
changes are expected in the short term,
analyses have been carried out to assess
the sensitivity of the Group's results, taking
into account historical weather volatility and
production variations related to different
climate settings.
Generation
Ebitda/year
Upside
Downside
in electricity production (TWh) in the last ten years.
All fluctuations, both meteorological and climate-related,
can lead to adjustments, as the production of the plant
park feeds the supply for the sale of energy to customers.
In essence, reductions in terms of energy for renewable
production can lead to imbalances in supply, which can
lead to the purchase of missing volumes in the market to
drive the business strategy. Conversely, higher renewable
production leads to a possible reduction in the purchase
of volumes in the market (or possibly higher sales).
Evidence gathered from the first scenario shows that
chronic structural changes in recent trends in physical
variables will manifest significantly in the long run.
However, in order to have an indicative estimate of the
potential impacts and to include the possible possibility
of anticipating chronic effects, we can perform a stress
test of the industrial plan on the factors potentially
influenced by the physical scenario, considering historical
meteorological variability and expected climate changes in
the long term. The current Industrial Plan was constructed
using the information contained in the median scenarios
related to chronic phenomena, as well as considering
the possible effects of trends in climate variables. The
following table shows the results of this analysis.
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Heat
waves
Thermal
Solar
Wind
Hydro
Storage
Geothermal
Distribution
grids
Enel X
High
Low
Not relevant
Flooding/
heavy rainfall
Heavy
snowfall/
icing
Windstorm
Wildfires
Under
Evaluation
Under
Evaluation
Under
Evaluation
Under
Evaluation
Under
Evaluation
Lightning
Hail
Priority
Priority
Acute Physical Changes: Risk and
Opportunity Sources
Regarding acute physical events (extreme events), the
intensity and frequency of extreme physical incidents
can cause significant and unexpected physical damage
to assets and negative externalities linked to service
interruption.
Acute physical phenomena, such as windstorms, floods,
heat waves, frosts, etc., are characterized by a notable
intensity and a frequency of occurrence that is not high
in the short term but which, considering future climate
scenarios in the medium and long term, sees a clear
upward trend.
Hence, the company must already handle the risk
associated with extreme events in the near future.
Additionally, the methodology is being expanded to cover
longer timeframes (up to 2050) based on the specified
climate change scenarios (RCP 8.5, 4.5, and 2.6).
As a result, when considering the portfolio's asset
vulnerability, a priority table of the impacts of the main
extreme events on different technologies has been
established in collaboration with the relevant business
lines of Enel Chile as part of the Enel Group.
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Temporal Horizon
Probability of the event
Vulnerability
Exposure
Short Term
Probability maps based on historical data and
weather models
Vulnerability, being linked to the type
of extreme event, the details of the
kind of damage, and the technical
requirements of the technology in
question, is essentially independent
of time horizons.
Short-term group values
Long-term
Probability maps and studies specific to the
different climate scenarios of the IPCC RCP
The group's long-term values
Risk Assessment Methodology for Acute
Events
To quantify the risk derived from acute events, the Enel
Group, of which Enel Chile is a part, employs a consolidated
methodology of catastrophic risk analysis, which is used
in the insurance sector and IPCC reports. Through its
insurance business units and the insurance company
Enel Insurance N.V., the different phases linked to the
risks derived from natural disasters are managed, from
the evaluation and quantification to the corresponding
coverage to minimize the impacts.
In all of the types mentioned above of natural disasters,
three independent factors, briefly described below, are
identified:
,
• The probability of the event, i.e., how many times it is
expected to occur during a certain period, is analyzed
in the areas where the Company's assets are. Essentially,
we seek to understand how likely these events are to
occur in specific locations.
Therefore, hazard maps are used to combine hazard
estimation for different types of natural disasters,
associating each geographic point. This information,
organized in georeferenced databases, is provided
by global reinsurance companies or is compiled from
data provided by meteorological consulting firms or
academic institutions.
• Vulnerability, expressed as a percentage, indicates
how much is lost or damaged when a catastrophic
event occurs. In simpler terms, it refers to damage to
property, interruptions in the production or distribution
of electricity, and disruptions to electricity services for
customers.
The Enel Group, of which Enel Chile is a part, conducts
and promotes specific vulnerability analyses for each
type of technology in its portfolio, such as solar, wind,
hydroelectric plants, transmission and distribution grids,
and substations, among others.
• Exposure refers to the economic value present in the
Enel Group's portfolio, including Enel Chile, which could
be significantly affected by catastrophic natural events.
Exposure analyses are tailored to different production
technologies, distribution assets, and services for end
customers.
The combination of the three factors mentioned above
(probability, vulnerability, and exposure) is essential to
evaluate the risk of extreme events. Incidentally, Enel Chile
follows the guidelines of the Enel Group, which adapts its
risk analyses according to the different climate change
scenarios and the associated time horizons. The following
table summarizes the approach taken to evaluate the
impacts of acute physical events.
Managing Short-Term Extreme Event Risks
Regarding the short-term horizon (1-3 years), Enel Chile,
an arm of the Enel Group, undertakes measures to mitigate
the potential repercussions of extreme catastrophic events
on its operations, in addition to what has been previously
discussed regarding risk assessment and quantification. In
order to accomplish this, two categories of measures have
been established: the first pertains to the establishment of
a universally applicable definition for adequate insurance
coverage; the second concerns efforts associated with
mitigating the potential harm caused by extreme events.
Insurance
Every year, the Enel Group defines global insurance
programs for its businesses, which are present in the
different countries where it operates, including Enel Chile.
The two main programs, in terms of breadth of coverage
and volumes, are:
• Property Program ("Property Damage and Business
Interruption Insurance Program"), which covers the
costs of rebuilding the affected facility and economic
loss as a result of the facility's failure to operate.
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Business line
A. Resilience measures -
strengthening asset resilience
B. Response management -
management of adverse events
Generation
(renewable and
thermal)
Existing Assets
1. Guidelines for Risk Assessment and Design of Hydraulic Technology.
2. "Lessons Learned Feedback" processes from operation & maintenance
(O&M) to engineering & construction (E&C) and business development
(BD).
New Assets
Additional to what was done for existing assets:
1. Climate Change Risk Assessment (CCRA) included in environmental
impact documents (pilot).
Existing Assets
1. Management of incidents and critical events.
2. Site-specific emergency management plans
and procedures.
3. Specific tools to forecast imminent extreme
events
Distribution and
Networking
Existing Assets and New Construction
1. Guidelines to define plans to increase grid resilience (e.g., "Grid
Resilience Enhancement Plan").
2. Strategies and Guidelines on Risk Prevention Actions in the Distribution
Network.
Existing Assets
1. Strategies and guidelines for risk prevention,
disposal, response, and recovery actions in
the distribution network.
2. Global Guidelines for the Management of
Emergencies and Critical Events
3. Measures to prevent and prepare for risks
in the event of fire in electrical installations
(lines, transformers, etc.)
Enel X
Existing Assets
1. Preliminary analysis of the medium- to long-term impacts of climate
change.
Existing Assets
1. Enel X critical event management.
• Liability Program ("General and Environmental Liability
Insurance Program"), which covers damages to third
parties, also derived from the impacts that extreme
events may have on assets and businesses.
In a context with adequate insurance coverage, the actions
carried out for the preventive maintenance of electricity
production and distribution assets are no less important.
These actions help reduce the impacts of extreme
events. They are also necessary to optimize risk financing
and minimize the costs of global insurance programs,
including the risk associated with natural disasters. This
adaptive strategy includes changes in risk retention and
internal risk transfer policies, which has led to a reduction
in the increase in insurance costs. Past event analyses play
a crucial role in defining practices and processes that help
mitigate similar events in the future.
Climate Change Adaptation Activities
The Company implements solutions to adapt to climate
change using a comprehensive approach that evaluates
potential impacts to calibrate the necessary measures
and strengthen the capacity to respond to adverse events
(Response Management) and to increase the resilience of
the business (Resilience Measures), thereby reducing the
risk of future adverse impacts. Furthermore, the skills and
tools developed to analyze the effects of climate change
are used to create value by creating new business options
aimed at offering solutions that facilitate the adaptation of
communities and all those involved.
Adaptation solutions can encompass short-term actions
and long-term decisions. For new investments, it is also
possible to act during the design and construction phase
to reduce the impact of climate risks from the outset. For
example, climate scenarios and the vulnerability of assets
to specific phenomena are considered during the design
phase to implement resilient solutions.
We briefly indicate the type of actions implemented for
adequate management of adverse events and to increase
resilience to meteorological phenomena and their
evolution due to climate change, and then describe some
activities in more detail.
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A project has been completed to develop a catalog of
practical intervention actions aimed at improving the
resilience of the Company’s assets and its capacity to
respond to the possible effects of climate change. This
catalog, which is regularly updated according to emerging
needs and the improvement of the analyses prior to its
conception, includes more than 100 possible specific
adaptation measures for each of the relevant events
in each geographical area of interest, differentiated
according to the technologies used:
• Weather alerts involve the use of various tools designed
to monitor and manage both assets and natural
resources.
• Automation, for example, in medium-voltage grids to
reduce the impact of failures on customers in terms of
SAIDI and SAIFI.
• Structural reinforcement across the entire asset base,
paying special attention to critical components.
• Continuous staff training to guarantee an effective
response to extreme weather situations.
• Interventions to maintain vegetation and care of the
immediate environment of the assets to minimize risks
associated with forest fires or other events.
The catalog compiles adaptation options and allows for
estimating costs and avoided risks, allowing for the best
action based on a cost-benefit analysis and the expected
risks in each specific situation.
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Practices for the
management of climate-
related phenomena in
generation
Main areas:
Maintenance
O&M Operation
Safety of Dams and
Hydraulic Infrastructure
Critical Event
Management
• Weather forecasts to monitor the availability of renewable resources and extreme events,
with warning systems that guarantee the protection of people and property.
• Hydrological simulations, land surveys (including the use of drones), monitoring potential
possible using digital GIS (Geographic Information System) systems and satellite
measurements.
• Advanced monitoring of more than 100,000 parameters (with more than 160 million historical
measurements) detected in dams and hydroelectric civil works.
• Real-time remote monitoring of electricity production plants.
• Safe living in areas exposed to tornadoes and hurricanes.
• Adopting specific guidelines for hydrological and hydraulic studies from the early
development stages aimed at evaluating the risks internal to the plant and to the areas
external to the plant, with application in the design phase of drainage works and mitigation
of the principle of hydraulic invariance.
• Verification of potential climate-related trends of the main project parameters to be
considered in the sizing of systems for relevant projects (e.g., cold source temperature
assessments to ensure greater flexibility in cooling in new CCGTs) and civil works specifications
(e.g., rainfall assessments for the design of drainage systems in solar plants).
• Estimation of extreme wind speeds using up-to-date databases containing historical
records and trajectories of hurricanes and tropical storms, with the consequent selection of
the most appropriate wind turbine technology for the emerging conditions.
Furthermore,
specific
protocols
are
implemented
for emergency management, covering planning and
oversight of all operations to ensure prompt restoration of
operations, as well as real-time communication protocols.
In addition, standard procedures are employed to evaluate
damage and guarantee an expeditious and secure
restoration of operations at every facility. To mitigate the
effects of climate phenomena, a feedback process based
on lessons learned is established; this process is governed
by the current operating model and propelled by technical
functions; consequently, it affects subsequent projects.
Resilience in Generation
In terms of power generation, over time, the Company
has carried out both site-specific interventions and
established ad hoc management activities and processes.
Site-specific actions in recent years include the following:
• Improvement of the cooling water management systems
of some plants to compensate for phenomena derived
from the decrease of rivers.
• Specific technological interventions (fogging systems)
to improve incoming airflow and compensate for the
reduction in power due to the increase in air temperature
in gas-combined cycle plants.
• Installation of drainage pumps, embankment elevation,
periodic cleaning of canals, and interventions to
strengthen the land adjacent to the facilities against
landslide events and to mitigate flood risks.
• Periodic site-specific evaluation of flood scenarios
for hydropower plants through numerical simulations.
The scenarios developed are managed with mitigation
actions and interventions in civil works, dams, and
intakes.
For the correct management of adverse weather
phenomena in the context of electricity generation,
a series of best practices are adopted, including the
following:
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Analyzing Future Climate Impacts:
Identifying Adaptation Needs
In the generation business line, acute and chronic climate
risk analyses are being carried out based on the mapping
of relevant phenomena at a global level. The objective is
to estimate the future impact on generation plants in the
medium and long term. The acute impact analysis was
carried out in two phases:
• Preliminary hazard and exposure analysis for all hydro,
wind, and solar plants with the aim of grouping the
existing fleet according to the degree of vulnerability
and identifying the plants with the highest risk, where a
detailed analysis can then be carried out.
• Detailed analysis of priority plants at higher risk, allowing
the identification of future adaptation actions and
measures for the prevention of damage due to acute
events and loss of production.
This detailed analysis considered the possible increase
in the frequency and intensity of extreme events and
allowed the identification of assets exposed to the related
phenomenon.
Detailed analysis of the pilot sites highlighted a limited
number of long-term, high-risk assets for all phenomena
considered.
Heavy rainfall
Several plants were analyzed, and a connection was
found between the shape of the terrain and how heavy
rains affect facilities, especially in Latin America, and with
photovoltaic technology. To reduce flood risk, structural
measures, such as building dams, adapting drainage
channels, and elevating vulnerable components, were
identified. These actions will require a cost-benefit
analysis.
Heat waves
The heat wave phenomenon in photovoltaic systems,
where high temperatures occur for several rainless days,
was analyzed. Despite the increase in the frequency and
intensity of this phenomenon, there are no significant
impacts on the asset, only a decrease in investor
performance at certain times and places due to derating.
Windstorms
The risk of windstorms has been assessed, and although
the scenarios indicate an increase in their frequency,
the analysis shows a high resilience of the wind farms
analyzed, mainly due to their robust design. To implement
adaptation measures, detailed site assessments will be
required, carefully considering the costs and benefits,
given the limited impact these storms have on Enel Green
Power (EGP) power parks.
Fire
A fire risk study has been carried out to identify the
most vulnerable areas, and preventive measures, such as
removing additional vegetation and installing firebreaks,
have been proposed. In addition, coordination with local
authorities has been strengthened.
These measures will be progressively improved and will
also be applied in the design of new EGP plants. This will
allow us to quantify adaptation needs in terms of risk
prevention and management of events and residual risks.
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Guidelines for
Emergency
Preparedness, Response,
and Recovery Actions
A policy on the last three phases of the 4R approach that sets out guidelines and measures to
improve preparedness strategies, reduce the impact of total outages, and restore service to as
many customers as possible in the shortest possible time.
Guidelines for the Grid
Resilience Improvement
Plan
A specific policy to identify the most impactful extraordinary weather events in the grids,
assess the specific KPIs of the current grids, and improve them through proposed interventions
to determine their prioritization. This would facilitate the selection of actions that, once
implemented, minimize the impact on the grids of especially critical extreme events in a given
area or region. This policy focuses on the first two phases of the 4R approach, providing
measures related to Risk Prevention and Preparedness.
In line with the Group-level strategy, these issues are being researched in Chile to develop
a specific investment planning process that increases grid resilience to extreme events,
considering the various territorial peculiarities.
Grid resilience at the heart of Enel's strategy
The Enel Grids business line has established a Climate
Change Risk Assessment policy, following the guidelines
described in the section "Main risks and opportunities
related to climate change at Enel" to identify and assess
risks related to climate change in its assets and operations,
following the guidelines of the Enel Group. In addition, a
so-called "4R" approach has been adopted to deal with
extreme weather events, which is divided into four phases
in a policy designed to ensure the resilience of distribution
networks.
1. Risk Prevention:
This
encompasses
actions
to
reduce the probability of grid element loss due to
weather events through infrastructure improvements
and maintenance. Technical solutions are selected
according to a catalog that considers each climate-
related event and geography.
2. Preparedness: This includes interventions to improve
the early detection of critical events and coordinate
measures with agencies in charge of coordinating and
managing emergency and disaster response and local
institutions. It also involves preparing the necessary
resources after network outages.
3. Answer: It is the assessment of the operational capacity
to deal with extreme weather emergencies, mobilize
operational resources on site, and perform remotely
controlled repair maneuvers using backup connections.
4. Recovery: The final phase seeks to restore the grid to
normal operating conditions as soon as possible after
disruptions caused by extreme weather events, even if
preventive measures have been implemented.
Specific policies have been developed to address the
Climate Change risks in grids, considering different
aspects, in particular:
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Risk Prevention
Measures and
Preparedness in the
event of forest fires
affecting electrical
installations
A dedicated fire risk policy that defines an integrated approach to emergency management
applied to forest fires, both when caused by phenomena external to the grids and in cases,
although rare, caused by the grids themselves and, in any case, potentially dangerous for Enel's
facilities. The document provides guidelines tailored to different locations to identify areas/
facilities at risk, define specific prevention measures (e.g., evaluation of specific maintenance
plans and possible reinforcement interventions), and, in the event of a fire, manage the
emergency optimally to limit its impact and restore service as soon as possible.
Support actions
It includes implementing weather forecasting systems, monitoring the condition of the grids
and assessing the impact of critical weather phenomena on them, preparing operational plans,
and organizing specific exercises. Particular emphasis is placed on preventive agreements
for mobilizing extraordinary resources previously identified to deal with the emergency, both
internally and by contractors.
Furthermore, in alignment with Enel's dedication to
ongoing improvement, the company conducts search
efforts that involve direct communication with industry
experts and startups. These endeavors are designed to
identify groundbreaking technological solutions that can
boost the resilience of the grid by facilitating climate
impact evaluations and adaptation measures.
Analysis of future climate impacts to
identify adaptation needs
The network monitors the future influence of climate
change on its operations in different nations by
mapping relevant global phenomena and tracking
the trend of the most critical phenomena. This allows
for the estimation of the medium and long-term
effects of climate change. To achieve this objective,
an initial evaluation of previous instances of severe
weather conditions and their impact on the network
(including any resulting failures) is conducted. In Chile,
windstorms are the most severe acute event, whereas
significant flooding/precipitation and heavy snowfall/
freezing are categorized as "medium risk." This
categorization helps to identify prioritized analyses
to establish potential adaptation measures. Based
on these assessments, in-depth examinations of the
different phenomena are conducted. Below is an
illustration:
Windstorms
An initial analysis of windstorm impacts in the Santiago
concession area was conducted in 2023. The results of
the scenario analyses for 2050 showed the persistence
of the phenomenon, which remains under observation
for future reinforcement interventions in the overhead
network by replacing bare conductors with cables.
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Introducing nature-based solutions in
Enel X’s resilience solutions
Enel Chile and its various business lines are strongly
dedicated to reducing the impacts of climate
change in both urban and rural settings. They do so
by embracing a mindset that focuses on tackling
the obstacles of sustainable development, drawing
inspiration from nature. The Company is committed
to offering comprehensive services that improve
communities' ability to cope with the effects of
climate change, with the ultimate objective of
reducing the negative impact on the microclimate
and air quality and thereby improving the well-being
of residents.
A "Biodiversity Handbook for Nature-Based Solutions"
has been created to promote the implementation
of Nature-Based Solutions (NBS). This handbook
harnesses natural resources and human knowledge
and skills. Implementing these strategies is globally
acknowledged as a legitimate method of adjusting
to severe weather phenomena. Practically, these
solutions can be combined with technological
solutions to provide ecosystem services that promote
and sustain nature. Furthermore, they not only aid in
climate change adaptation and mitigation but also
enhance the quality of life in urban environments.
Adaptation activities – Enel X
Several actions have been taken to address extreme
weather events in Enel's priority countries and assets. An
impact analysis was carried out on the company's assets,
which represent a minority stake. Potential risks and
potential resiliency solutions are being assessed for B2B
and B2G customers.
The adaptation work has focused on defining the
methodology to evaluate the vulnerability of Enel's storage
systems and public lighting. In the case of solar energy,
a preliminary climate risk assessment was conducted
in countries, and assets were identified as priorities for
relevant extreme events, such as extreme winds, heavy
rainfall/flooding, and fire risk. So far, this analysis has not
highlighted critical issues related to climate change, but
it will be extended to sites where new construction is
planned.
With regard to energy storage, no critical issues related to
extreme weather events have been identified so far. Finally,
concerning public lighting, extreme phenomena relevant
to this type of asset are being studied.
Including the effects of climate change in the evaluation
of new projects
Numerous activities related to the evaluation and
implementation of new projects can benefit from climate
analyses, both general and site-specific, which Enel Chile,
as part of the Enel Group, is progressively integrating with
those already considered in the evaluation of new projects.
For examen:
• Preliminary studies: at this stage, climate data can
provide a first filter through the analysis of specific
climate-related phenomena, such as those previously
shown in the analysis of physical scenarios. It also
presents synthetic indicators, such as the Climate Risk
Index, integrated into the Open Country Risk. These data
offer an initial measure of the most relevant phenomena
in the area, identified as being of interest for each
technology.
• Estimation of expected production: Climate scenarios
will be gradually incorporated to evaluate how climate
change will modify the availability of renewable resources
at the specific site. In the more detailed analysis related
to the preliminary production studies, the approach
applied so far at some pilot sites and then extended to
the entire generation portfolio is described.
• Environmental impact analysis: the Climate Change
Risk Assessment has begun to be integrated into
the
documentation
prepared,
which
includes
a
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12 million t eq
CO2 emissions
avoided
• Emissions avoided by
renewable generation
• Contribution to
emission reductions
CO2 in other sectors
2 through a mix of
CO2 Zero-emission
energy
353,000
Smart Meter
Users3
• By providing near-
real-time data,
smart meters enable
efficient management
of energy supply
and demand by
promoting informed
and informed
and sustainable
consumption.
2,000 charging
points for
e-mobility55
• Contribution to CO2
emission reductions
in other sectors
by electrifying
consumption,
including transport,
promoting
electromobility.
34 MW
• Increased in storage
capacity
1.25 number
of outages
per customer
(SAIFI)4
• A reliable and
resilient power grid
helps reduce CO2
emissions related to
grid losses
368,000 smart
lighting
• Energy efficiency
solutions to reduce
consumption
(residential, urban,
and industrial)
3.1 million t eq
of CO2
• Direct emissions
by Thermoelectric
Generation (Scope 1)
0.003 million t
eq of CO2
• Indirect emissions
associated with
network losses
(scope 2)
0.3 million t eq
of CO2
• Indirect emissions
associated with end-
users of electricity
(scope 3)
0.5 million t eq
of CO2
• Indirect emissions by
Fuel extraction and
transport (scope 3)6
0.3 million t eq
of CO2
• Indirect emissions
associated with gas
end-users (scope 3)7
(1) Includes renewable generation
(2) The GHG Protocol requires that electricity consumption be considered when calculating the company's carbon footprint as indirect emissions
(Scope 2)
(3) In addition to 353,000 smart meter users, 208,000 telemetry and remote reading meters are installed.
(4) SAIFI, System Average Interruption Frequency Index.
(5) Excludes Enel X Way
(6) Includes gas
(7) The Atacama-Taltal gas pipeline for gas transportation operates at low capacity (around 22% of its capacity in 2023) and without a compressor.
During the last 3 years, there have been zero gas leaks (0%).
Note: To date, the calculation of the carbon footprint results for the year 2023 is being verified. The Company calculates and verifies its emissions
according to the guidelines set out in the GHG Protocol.
CO2 -free generation1
Grid Digitalization
Electrification of energy demand and
promotion of energy efficiency
Value Chain
Generation
Networks
Retail
Negative impacts
Positive impacts
representation of the main physical phenomena and
their expected change in the area.
• Resilient design: Climate change adaptation actions
focused on the intentional design of resilient assets are
highly significant. Enel Chile, as a subsidiary of the Enel
Group, is actively incorporating climate data analysis
into its operations, specifically focusing on the growing
frequency and impact of acute events. This strategy
aims to integrate pre-existing analyses derived from
historical data that is already being utilized, with the goal
of enhancing the ability of future assets to withstand
and recover from adverse events. It also encompasses
all essential measures for adapting to changing
circumstances during the duration of the project.
Impact on climate change in 2023
The Company promotes the decarbonization of the energy
system and the electrification of energy demand, thereby
reducing its greenhouse gas emissions throughout the
entire value chain.
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Scope 1 direct emissions (1)
3,131 thousand tCO2eq (35% less than in 2022), representing 65.3% of total GHG emissions. The
significant decrease is mainly due to a 28% increase in renewable energy generation and a 25% reduction
in thermal generation, eliminating the use of coal in the process.
Indirect Scope 2 Emissions (2)
4 thousand tCO2eq (19% less than in 2022), which represents 0.1% of total GHG emissions.
Indirect Scope 3 Emissions (3)
1,677 thousand tCO2eq (24% less than in 2022) and corresponds to 34.6% of total greenhouse gas (GHG)
emissions. These emissions are broken down into approximately 40% coming from the supply chain, 29%
due to gas extraction and transportation, 19% associated with purchases of energy sold, and 12% derived
from gas sales to end customers.
(1) For the Inventory of Total Direct Scope 1 Emissions, according to the GHG Protocol standard, emissions from thermal plants are considered
equivalent to 98%. The remaining 2% comprises other emissions, which include inventories associated with auxiliary services of production and
distribution plants, as well as emissions generated by vehicles under the Company's control, as well as emissions from the combustion of fossil
fuels in boilers and office canteens.
(2) Issuances per location are equal to those per market by the factors considered. During 2023, the calculation criterion was updated by
eliminating emissions from the consumption of auxiliary services that were already accounted for in emissions from distribution losses. Likewise,
for the emission factors, the latest information available from the authority is being considered instead of those previously considered by Enerdata
(3) The criterion was updated to incorporate emissions from suppliers, updated in 2022 for comparability purposes. For the calculation of
emissions from sales to customers, the local authority factor (http://energiaabierta.cl/visualizaciones/factor-de-emision-sic-sing/) is used in 2023
Note: To date, the Carbon Footprint results for 2023 are being verified. The Company calculates and verifies its emissions according to the
guidelines set out in the GHG Protocol.
Emissions
The carbon footprint stood at 4,813 thousand tCO2eq,
representing a 31% reduction compared to 2022. This
decrease is mainly attributed to the reduction in direct
emissions, thanks to an increase in power generation from
renewable sources and the elimination of coal from Enel
Chile's energy mix. Furthermore, a decrease in indirect
emissions was observed, particularly in scope 3 emissions
related to sales to end customers.
Emission Reduction Targets
The Company has committed to reaching carbon neutrality
by 2040, aligning with the Enel Group's strategic objectives.
This demonstrates its strong dedication to supporting
the country's environmental and social objectives while
also meeting the expectations of its shareholders and
stakeholders.
Furthermore, interim targets for reducing emissions have
been set in accordance with market conditions. In 2023,
it reaffirmed its goal of reducing scope 1 emissions from
generation to a level below 105 gCO2eq/KWh by 2026.
This will be achieved by adding new renewable capacity to
compensate for the closure of coal-fired plants, utilizing
gas-fired generation to meet short-term energy demands,
and promoting electrification to mitigate the variability of
renewable generation.
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Financial Metrics
2023
EBITDA of low-carbon products and services (Ch$ billion)
1,171
CAPEX ratio of low-carbon products and services to total (%)
94%
SCOPE 1
GENERATION1
(gCO2e/kWh)
128
<105
0
CO2
CO2
2023
2026
2040
Enel Group
Zero emission
ambition by
2040
Coal-free energy mix from October 2022
Deployment of renewable energy
Innovation and new technologies (H2, storage) as a
mitigator of the impact of climate change
Promote electrification to customers
1. It covers all greenhouse gas emissions (including CO2, CH4 and N2O, in line with the Enel Group's target validated by the SBTi
Note: As of the date of publication, the calculation of the Carbon Footprint for 2023 is in the process of verification. Emissions are calculated and
verified according to the guidelines set out in the GHG Protocol.
No carbon remover
Accelerating Carbon Neutrality Suppored by
Electrification and Renewables
The Enel Group has reported progress in achieving its
goal of zero emissions, including its indirect scope 3
emissions. In pursuit of this objective, the company has
revised its most ambitious target of decreasing Scope
1 and Scope 3 emissions by 78% (compared to the prior
goal of 80%) based on the emissions recorded in 2017.
Scope 1 emissions specifically refer to Enel Chile's 100%
generating emissions. This objective aligns with the 1.5°C
business model and has been certified by the Science
Based Targets initiative (SBTi).
Regarding scope 2 emissions, they are relatively
insignificant, and efforts are continuously being made to
discover new ways to reduce them.
Metrics and Goals
The report contains detailed information on the critical
financial, operational, and environmental metrics and
objectives associated with the risks and opportunities
posed by climate change. These metrics and goals are
presented in several sections throughout the report. Here
is the summary:
Financial Metrics
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Operational and Business Metrics
Environmental Goals
In the next sections, each line of work will be addressed
with its metrics, objectives and specific actions to advance
climate actions, addressing risks and opportunities.
2. The Enel Group's targets include all greenhouse gas emissions
from generation (including CO2, CH4, and N2O), which is in line with
the target validated by the SBTi. The total scope one emission
intensity was 131 CO2 g eq/MWh. To date, the calculation of Enel
Chile's Carbon Footprint results for the year 2023 is in the process
of verification. The Company calculates and verifies its emissions
according to the guidelines set out in the GHG Protocol.
1. Enel X Chile's public and private charging points
74%
79%
77%
79%
1.3
1.4
5.3%
5.5%
2023
2026 Goal
GENERATION
2023
2026 Goal
DISTRIBUTION & GRIDS
Renewable Capacity (%)
SAIFI (#)
Total Losses (%)
Renewable generation (%)
2.1
4.1
368
432
2023
2026 Goal
ENEL X
Charging Points1 (thousands)
Smar lighting (thousands)
0.15
128
0.18
72
2023
2030 Goal
Intensity of direct
emissions generation
(gCO2eq/KWh)²
Water Extraction
Intensity
(L/MWh)
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4.
ENEL CHILE'S
BUSINESS AND
MANAGEMENT 2023
●Generation Business
Enel Chile has strengthened its varied generation portfolio,
becoming solid and highlighting renewable energies that
constitute 77% of its total operational capacity.
●Distribution and Networks Business
The subsidiary Enel Distribución Chile is one of the main
electricity distribution companies in the country, standing out
for its extensive network of clients, distribution assets and
energy sales volume.
●Enel X Chile
Enel X promotes electrification within the residential sector
and the different productive sectors of the country, leading
Chile's energy transformation and turning cities into smart
and sustainable places.
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Generation
El The generation business is developed through its subsidiaries Enel Generación Chile and
Enel Green Power Chile, consolidating a robust and diversified generation portfolio with a
matrix that includes 77% net renewable power and a high-efficiency thermal capacity, mainly
based on liquefied natural gas (LNG).
The Group operates through this business line to accelerate the energy transition, increasing
investments in new renewable energy capacity. It also uses digitalization to operate its assets
more efficiently and effectively, thus improving the performance of these assets and the design
of new plants.
The distribution activity is carried out through its subsidiaries, Enel Distribución Chile and
Enel Colina. Enel Chile is the largest distributed energy grid operator, serving over two million
customers. It operates in an area of 2,105 square kilometers, under an indefinite concession
granted by the Government of Chile, distributing electricity in 33 Metropolitan Region districts.
The Enel Chile Group guarantees the dependability of energy supply and the quality of service to
communities by developing and operating resilient and flexible networks. This is accomplished
using resilient and flexible grids, technology, and digital innovation while guaranteeing adequate
returns on investment and cash generation.
Distribution and grids
ENEL CHILE'S
BUSINESS MODEL
Enel Chile's business model has been structured in
accordance with its strategic objectives, including the
commitments assumed by the Group in the fight against
climate change.
The business model defines how the Company's
organizational units, linked to the main businesses
(generation,
distribution
and
networks
and
other
businesses related to the transformation and extension
of the electricity market), must work to take advantage
of all the possible benefits of the main trends. of the
sector, particularly the trends associated with the energy
and digital transitions, possibly also accelerating their
implementation.
The role defined for all major organizational units is also
intended to enable them to effectively address all risks
posed by the rapid evolution of the energy industry.
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Enel Chile promotes electrification through its subsidiary Enel X Chile, offering new energy
products and services beyond basic products, maximizing customer value, innovating and
developing the services offered, and managing their entire life cycle.
The rapid progress of the energy transition has meant that customers are constantly evolving.
Faced with this scenario, Enel Chile seeks to anticipate their requirements. To accomplish this,
the Company implements technological advances using an approach based on carbon-free
solutions and adopts new uses of electricity. E-mobility is an excellent example of this, an
area where the Company and other partners promote different initiatives to contribute to the
electrification and decontamination of cities.
Enel X Chile
Enel Chile has defined two operating segments related
to the presentation of financial information following the
criteria established by the International Financial Reporting
Standards (IFRS). These segments, identified by a "top-
down" approach, are the Generation Segment and the
Distribution and Grid Segment. Each operating segment
produces separate financial information, aggregating
into a combined set of information for the Generation
Business and another set of combined information for the
Distribution and Grids Business at the reporting segment
level.
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8,478 MW
Net installed
capacity
+ 0.8%
8,408 MW in 2022
32,847 MW
Sales
energy 1
+2.3%
32,129 MW in 2022
74 %
Renewable
generation
+18%
63 % in 2022
GENERATION
(1) Considers sales to free, regulated and spot market customers.
DESCRIPTION
OF ENEL CHILE'S
BUSINESS
Enel Chile carries out its generation business segment
through its subsidiaries Enel Generación Chile and Enel
Green Power Chile (hereinafter EGP Chile), consolidating
a robust and diversified generation portfolio with a matrix
that also includes a high-efficiency thermal capacity
mainly based on liquefied natural gas (LNG) as a transition
technology, providing security and flexibility to the national
electricity system.
Enel Chile and its subsidiaries have a generator park
distributed throughout the National Electric System (from
now on, "SEN"). Enel Chile's total net installed capacity
reached 8,478 MW as of December 2023, 77% of which was
renewables. Thus, 3,510 MW correspond to hydroelectric
generation units, 1,978 MW to thermal power plants that
operate with gas or oil, 1,970 MW to solar plants, 903 MW
to wind generation units, 83 MW to geothermal capacity
and 34 MW to storage systems. of energy (BESS).
In 2023, consolidated net electricity production reached
24,122 GWh, while electricity sales by Enel Chile and its
subsidiaries reached 32,847 GWh, representing a 2.3%
increase in sales, reflecting the consolidation of the
Company's marketing plan.
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1
Tarapacá TG
20 MW
2
Atacama
716 MW
3
Taltal
242 MW
4
Taltal
106 MW
5
Sierra Gorda Este
112 MW
6
Finis Terrae 3
18 MW
7
Lalackama
60 MW
8
Lalackama II
18 MW
9
Las Salinas
205 MW
10 Parque Solar Finis Terrae
160 MW
11 Valle de los Vientos
90 MW
12 Cerro Pabellón (1, 2 y 3)
83 MW
13 Azabache
61 MW
14 Parque Solar Finis Terrae Extensión 126 MW
15 Sol de Lila
161 MW
16 Valle del Sol
163 MW
17
Campos del Sol
375 MW
18 Guanchoi (ex Campos del Sol II)
398 MW
19 Chañares
40 MW
20 Talinay Oriente
90 MW
21 Talinay Poniente
61 MW
22 Los Molles
18 MW
23 Canela I
18 MW
24 Canela II
64 MW
25 Solar la Silla
2 MW
26 San Isidro
372 MW
27 San Isidro 2
380 MW
28 Quintero
249 MW
29 PMGD Patagua
10 MW
30 PMGD Doña Rubena
3 MW
31 PMGD Mora
3 MW
32 PMGD La Colonia
11 MW
33 El Manzano
99 MW
34 Rapel
375 MW
35 Sauzal
80 MW
36 Sauzalito
11 MW
37 PMGD El Sharon
3 MW
38 PMGD Rinconada Alcones
10 MW
39 PMGD Valera
3 MW
40 PMGD Graneros
3 MW
41 PMGD Bandurrias
3 MW
PERÚ
BOLIVIA
ARGENTINA
1
2 - 16
17 - 19
20 - 25
26- 28
29 - 33
34 - 41
42 - 54
56 - 59
60 - 66
67 - 68
55
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Integrated Annual Report Enel Chile 2023
42 Pehuenche
570 MW
43 Cipreses
106 MW
44 Curillinque
89 MW
45 Isla
70 MW
46 Loma Alta
40 MW
47 Ojos de Agua
9 MW
48 PMGD Piduco
3 MW
49 PMGD San Camilo
3 MW
50 PMGD Maintencillo
3 MW
51 PMGD Hijuelas 4
3 MW
52 PMGD Don Rodrigo
5 MW
53 PMGD Caracoles
3 MW
54 PMGD Cabimas ( Ex Curimachi)
11 MW
55 PMGD Dadinco
3 MW
56 La Cabaña
106 MW
57 La Cabaña BESS
34 MW
58 Renaico
88 MW
59 Renaico 2
144 MW
60 Los Buenos Aires
24 MW
61 Abanico
93 MW
62 Antuco
320 MW
63 Palmucho
34 MW
64 Pangue
466 MW
65 El Toro
449 MW
66 Ralco
689 MW
67 Pilmaiquén
41 MW
68 Pullinque
51 MW
BESS
Geothermal
Solar
Hydroelectric
Wind
Thermal
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3 Strategy and Risk
Management
2 Governance
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5 Other Corporate
Information
6 Main indicators
7 Annexes
Installed capacity, generation, and power sales of Enel Chile and its subsidiaries
Net Installed Capacity (MW)(1)
2023
2022
Enel Generación Chile
5,478
5,548
Enel Green Power Chile
3,000
2,861
Total
8,478
8,408
Generation (2)
2023
2022
Enel Generación Chile
18,110
17,729
Enel Green Power Chile
6,012
4,486
Total
24,122
22,215
Purchases
2023
2022
Enel Generación Chile(3)
14,250
13,728
Enel Green Power Chile
1,587
2,793
Total
15,837
16,520
Sales
2023
2022
Enel Generación Chile
30,385
30,245
Enel Green Power Chile
486
471
Spot market sales
1,975
1,405
Total
32,846
32,120
(1) Net installed capacity, or net power, is the difference between gross power and energy consumption by auxiliary services; auxiliary consumption
is understood as all those energy consumptions associated with the operation of the generating unit itself, without which the optimal operation of
the unit is not possible.
(2) Corresponds to total generation minus own consumption and transmission losses.
(3) Considers 7,319GWh of purchases from Enel Generación Chile from EGP Chile in 2023 and purchases of 6,615GWh from Enel Generación Chile
from EGP Chile in 2022.
Operational and Commercial Scenario
During the 2023 financial year, the Company faced a
mixed scenario of water availability, with the first half of
the year following the dry trend of recent years, followed
by a very wet scenario, influenced by the presence of the
"El Niño" phenomenon. As for the international scenario, a
downward correction in commodity prices was observed.
In the power sector, energy production had a significant
availability index at the national level, which is particularly
important because electricity is an essential commodity
for economic development and daily living. This is due,
in large part, to companies' efforts to maintain a high rate
of availability of generation sources and transmission
networks, as well as the high level of technology
implemented in this sector, both by the companies and
agents that participate in this market and by the National
Electricity Coordinator, in the operation of the electricity
system. This made it possible to control the complicated
production and supply processes in an effective and
structured manner at all times.
Continuing with the country's power output, it is important
to note that the momentum to create new renewable
generation plants remains strong. In this regard, by the
end of 2023, the National Energy Commission (NEC) had
registered approximately 14,225MW of capacity from
non-conventional renewable energy sources (NCRE) in
operation, in addition to roughly 6,759MW of projects
declared under construction, primarily solar projects,
followed by wind power plants and, to a lesser extent,
hydro, and biomass.
The development of this newly installed capacity
represents an excellent opportunity for Enel Chile, bearing
in mind that the Company has been one of the main drivers
of NCRE development in the country through EGP Chile.
Furthermore, the Company maintains the main reservoirs
in the southern zone that complement the intermittent
operation of NCRE generators in the electricity system,
together with gas-fired combined cycle plants in the
central area that enable the reliable and safe operation
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Integrated Annual Report Enel Chile 2023
of the SEN. This is in addition to Enel Generación Chile's
contracts with EGP Chile and Pehuenche Electrical
Company , which accounted for around 25% of its sales
supplied with low-cost energy in 2023. All this allows the
Company to have clear advantages to compete in the
customer market.
It is also important to highlight the decarbonization
process of the country's energy matrix that began in 2019
with the closure of three coal units for a total of 328MW,
including Enel Generación Chile's 158MW Tarapacá plant,
continuing in 2020, with the closure of the Ventanas
1 coal-fired plants. 114MW in Puchuncaví, Valparaíso
Region, and Enel Generación Chile's 128MW Bocamina I.
In 2022, a total of 617 MW was further retired, including
the 350 MW Bocamina II, also owned by Enel Generación
Chile. In 2023, the Chilean electricity system continued the
decarbonization process by closing the 208 MW Ventanas
2 unit.
This decarbonization process has made it possible to
reduce the contribution of coal to national electricity
generation from 23.1% in 2022 to only 16.7% in 2023.
This reduction in fossil fuel-based generation has been
partly replaced by non-conventional renewable NCRE
generation, increasing its contribution from 31% in 2022 to
35% in 2023, totaling 63% renewable energy in 2023. This
migration process towards clean and renewable energy
sources has been led by Enel Chile, contributing 35% of
renewable energy and 21% of NCRE generation, becoming
the country’s leading renewable energy generator.
In the current financial year, a new tender for the supply
of regulated customers (NEC Tender 2023/01) for 5TWh/
year was issued, initially scheduled for December 2023,
and subsequently pushed back to April 2024 due to
important revisions in the estimated quantity of future
regulated consumption. In the most recent tender
process (NEC Tender 2022/01), the demand for new
third-party renewable projects was partially met, with an
awarding ratio of less than 20% of what was offered. Enel
Generación Chile held a dominant share in the preceding
three processes (2016, 2017, and 2021), with a total yearly
energy allocation of over 7.1 TWh. In the context of intense
competition in the regulated customer segment, the
Company's commercial management in the last three
years has focused on the free customer market, where it
was able to sign a significant volume of supply contracts
tendered or negotiated bilaterally, both in the medium
and long term, allowing it to increase and diversify its
commercial portfolio under very favorable conditions.
Another event worth mentioning is Law No. 21185,
"Transitory Mechanism for the Stabilization of Electricity
Prices for Customers Subject to Tariff Regulation,"
published on November 2, 2019. This was a relatively
appropriate option compared to other possibilities
believed to recognize social demands to reject increases in
electricity tariffs proposed during the October 2018 social
crisis. The law establishes a temporary freeze on increases
in the regulated tariffs of current supply contracts, with a
maximum price known as PEC serving as a reference point
(equal to the price of decree 20 T issued in 2018).
However, given the constant rise in commodity prices and
the dollar exchange rate in 2022, the whole amount for
the mechanism's credit limit was swiftly exhausted. As a
result, Law 21,472 established the Customer Protection
Mechanism (CPM), which stabilizes the regulated tariff for
customers consuming up to 500 kWh per month while
allowing for progressive six-monthly inflation updates.
The Law 21,472 mechanism contemplates a transitional
fund of US$1,800 million until 2032. The preceding seeks
to reimburse the generating companies the difference
between the price of the contracts and the stabilized rate
(it also contemplates the excess balances of Law 21,185
that were generated after reaching the initial limit) through
a new instrument called Payment Document, issued every
month by the Ministry of Finance to the generators in
dollars. It is re-adjustable, State-guaranteed with interest
(CCR + 25 bps), assignable, and with a maximum maturity
date in December 2032. The fund is financed by applying
a fee associated with total demand with consumption
larger than 350 kWh/month (Tariff Stabilization Fund)
and an additional charge (CMP fee), if necessary, to
guarantee the fund's full payment in December 2032. As
seen, Law 21,472 protects the Company by allowing it to
obtain payment documents that can be allocated with the
necessary interest.
The maximum amount contemplated by the Law 21,472
mechanism was reached in 2023, so the executive branch
of the government has been developing a bill since the
end of 2023 to modify the current legislation, allowing the
price of regulated tariffs to end customers to be updated
more quickly to guarantee the payment of outstanding
balances to generators.
Similarly, the Company has undertaken some mitigation
measures, such as factoring these tariff credits and
diversifying the aforementioned customer portfolio, in
response to the recent increase in free client contracts.
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3 Strategy and Risk
Management
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1 Enel Chile Group
5 Other Corporate
Information
6 Main indicators
7 Annexes
The preceding suggests that, despite the problematic
adverse conditions of the current year, Enel Chile, like in
past years, can solidly adapt its operational management
to the various circumstances, whether unfavorable as
they are now or positive. This means that the Company
can consistently maintain a high level of performance and
a dominant position in the national electricity industry.
The aforementioned is based on various elements
that combine in favor of the Company and should be
mentioned, such as:
i. It has a large capacity generating park, technologically
diversified and sustainable in its operation, made
up mainly of efficient hydroelectric, renewable, and
thermal power plants, which provides the Company
with a high level of competitiveness in production, with
low average operating costs.
ii. The operation of its generation facilities is fully aligned
with the high availability and sustainability principles
because its production processes and maintenance
and modernization policies fully respond to the
technical and environmental requirements stipulated
by electrical and environmental standards.
iii. Its commercial policy is conceived in a manner
consistent
with
the
production
characteristics
of its generating fleet and the renewable energy
purchase agreements and permanently adapted to the
conditions of an increasingly competitive and changing
market depending on the country's economic reality.
The objective of this policy has been to combine
attractive profitability with a position of low exposure to
production and market risks.
iv. Enel Chile prioritizes innovation in its line of business,
allowing it to adapt to the new challenges imposed
by the market constantly. A clear example of this has
been the reorganization of the generation business
model (subsidiaries EGP Chile and Enel Generación
Chile) that allows the Group to sustain its growth and
competitiveness in this industry in the future.
In relation to production and market risk, the main factors
included in risk management are:
i. Hydrological variability, the risk of which is covered
through a permanent analysis and design of the optimal
volume of contractable energy.
ii. The variability of commodities, mainly fuel prices,
directly affects Enel Chile's thermal production costs
and the indexation of the sales prices of some supply
contracts.
iii. The risk of currency variability, essentially the price of
the dollar, which affects the Company's revenues.
In relation to the last risks, the Company uses financial
risk hedging instruments for commodities (mainly coal,
natural gas, and oil) and the dollar, which is managed in
coordination with its parent company in Italy.
Water condition
Given the significant hydroelectric component in Enel
Chile's generating portfolio, it is important to refer in detail
to the yearly hydrological condition, as it directly impacts
the Company's margins.
2023 was preceded by 2022, a dry year that led to an
extremely dry snowmelt at the start of 2023, which lasted
until the end of June 23 due to minimal rainfall. As a result,
the first half of 2023 was arid, with little precipitation and
minimal tributary flows.
In the presence of the "El Niño" phenomenon, the drought
condition shifted dramatically from the end of June 23, with
severe rainfalls, more substantial flows, and a significant
increase in reservoir levels. As a result, the second half of
2023 was rainy, characterized by rapid tributaries, snow
buildup, and an abundance of thawing during the spring
and summer months.
Given the conditions indicated above, with an arid first
half of the year and a stormy second half, 2023 was a
typical year, with annual hydrology with a 50% chance of
exceeding expectations.
Supply and Generation Costs
In relation to the SEN, the gross generation of this
system reached 83.7 TWh during 2023, representing a
0.8% growth compared to 2022. At the same time, the
contributions to the total generation were in the order of
29% from hydroelectric generation (24 TWh), 35% from
thermal generation (29 TWh), and 18.5% mainly natural
gas, followed by coal with 16.7%. Approximately 35% of the
total generation was from non-conventional renewable
energies (29 TWh): solar with 19%, wind with 12%, biomass
with 2.2%, and geothermal with 0.5%.
Enel Chile's electricity production was 24.1 TWh, i.e., 8.6%
more than the value obtained in 2022, reaching a 29% share
of the total SEN generation. Its hydroelectric contribution
was roughly 12.2TWh, a 25% increase compared to the
9.8TWh of 2022. This hydroelectric generation accounted
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Integrated Annual Report Enel Chile 2023
for a 51% share of the SEN's hydroelectric generation. Enel
Chile's thermal generation decreased from 8.2TWh in
2022 to 6.2TWh in 2023, a 24.5% drop, a 100% reduction
in coal-fired generation, and an 11% reduction in gas and
liquid fuel. Own production with NCRE (wind, solar, and
geothermal) reached 5.6TWh in 2023, increasing by more
than 30% compared to the 4.2TWh obtained in 2022.
In 2023, average fuel prices decreased compared to
2022. In the case of coal, its contribution to the system's
generation decreased compared to 2022 due to the
increased availability of other resources. According to
statistics provided by the electricity authority, its average
price dropped by nearly 43%, from an annual average
value of US$298/Ton in 2022 to an average price of
US$171/Ton in 2023. In the case of natural gas, although
Enel Chile's purchase prices are confidential, at a general
level, the parameters representing the variation of this
fuel in the Company's long-term LNG contracts are Henry
Hub, which had an average drop of 59% (6.6 to 2.7 USD/
MMBTU) and Brent, with an -18% drop (101.2 to 82.6 USD/
bbl), the latter also affected liquid fuels, which had a low
participation in the generation of the SEN during the year.
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3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
5 Other Corporate
Information
6 Main indicators
7 Annexes
This decrease in fuel costs, together with the increased
availability of water in the second half of the year, had an
impact on marginal costs in the SEN during 2023. Despite
the delay in the entry of several renewable projects, there
was a decrease in marginal costs compared to 2022.
Liquefied Natural Gas (LNG)
In 2023, Enel Chile, through its subsidiary Enel Generación
Chile, used 505MMm3 of LNG for its generation and
marketing requirements in the central area, 11% more than
in 2022, mainly explained by a higher gas requirement in
the central region, both from the thermal fleet and from
marketing.
The availability of Argentine Natural Gas made it possible
to guarantee a supply for much of 2023. In 2023, Enel
Generación Chile operated various supply agreements
with a diverse portfolio of suppliers, allowing it to supply a
total of 1,047MMm3 of Argentine gas through the central
area, accounting for 52% of its total gas requirements in
Chile (electricity plus customer supply) and 67% of total
natural gas for generation in the central region.
In 2023, the LNG and GNA supply portfolios were actively
managed, optimizing the supply mix, allowing the milestone
of selling LNG at the Quintero terminal to be repeated, as
well as other trading operations, with significant gains for
the group.
The contract of the Mejillones LNG Terminal, as well as the
management of the LNG and NG contracts, allowed the
northern portion of the project to be programmed, leading
to more than 400 MMm3 of supply to the Atacama,
Taltal, and Industrial customer facilities consolidating the
Company's position in the country's northern part.
In terms of LNG truck commercialization, Enel Generación
Chile's position in this market solidified in 2023, with a
volume of 114MMm3, securing its continued relevance in
the market.
Commercial Management
Robust business strategy
Enel Chile’s commercial actions carried out through its
subsidiaries Enel Generación Chile and EGP Chile in 2023
were aligned with the Company's commercial policy,
which contemplates jointly achieving the following goals:
maintaining industry leadership, adequately managing the
Company's risk and profitability under the current supply
and competitiveness conditions, implementing actions
to meet customer loyalty, attract more new customers,
increase the amount of energy sold according to the latest
market conditions and achieve greater efficiency in the
Company's internal commercial management.
In 2023, Enel Generación Chile successfully consolidated
its contract management with customers. The Company
signed supply contracts for Free Customers, totaling
approximately 2.1 TWh/year, under varying terms. These
contracts strategically strengthen the Company's existing
contract curve, which had already achieved remarkable
results in previous years.
We successfully negotiated agreements in the large
customers category and completed new power supply
contracts with significant free industrial customers,
totaling approximately 530 GWh per year. These contracts
have durations ranging from 2 to 6 years.
Similarly, the electricity market in Chile continued to
exhibit a pattern of having many smaller customers. These
customers can switch to the regulated market but have
chosen to remain independent customers following the
authorization of electricity regulations. Enel Chile has
effectively capitalized on this situation. Enel Generación
Chile, a subsidiary of the Company, entered into direct
supply agreements with numerous smaller independent
customers, giving rise to a total annual supply of 880 GWh.
These contracts have varying durations, ranging from two
to 10 years.
Furthermore,
Enel
Generación
Chile
entered
into
power sales contracts with generating businesses to
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Integrated Annual Report Enel Chile 2023
provide electricity to their free customers. Under these
agreements, Enel Generación Chile will supply 660 GWh
per year for a period ranging from four to 10 years.
Out of the contracts signed, over 20% of the contracted
energy will remain valid after 2030, while 55% will expire
sometime between 2024 and 2027. In general, contracts
have an average duration of five years, providing the
Company with a steady commercial setting in the medium
and long term.
Most important initiatives in the
generation segment
• Water
Resource
Management
for
Generation
Customers
Amidst a situation of limited water availability, efficient
and balanced usage was achieved. In 2023, Enel
Generación's
efforts
to
strengthen
collaboration
with the communities and authorities in the water
basins connected to its power plants led to improved
coordination and cooperation among all parties involved
in utilizing this vital resource. Agreements were reached
with the Rapel Reservoir Development and Protection
Corporation (Codepra) and the Maule and Biobío
Surveillance Boards, among others.
• Participation in the gas business
Like the previous year, 2023 was a year of high activity in
the gas business, both in terms of generation and also
in share trading.
The redistribution of partial volumes was coordinated
among eight ships initially intended for the country's
central region, together with the acquisition of
supplementary quantities, permitting us to meet the
demand in the northern area fully. By reducing the
reliance on diesel fuel, the operating costs of the
electrical system could be minimized.
With the LNG contract surpluses, we achieved trade
actions thanks to optimizing the supply portfolio. The
Company successfully distributed these volumes in the
international market, producing a favorable overall profit
margin. This made it possible to take advantage of the
market's spot margin in 2023.
• Integrated Offer and Renewable Supply
We successfully implemented an integrated service
offer in commercial management with free customers
provided by other business lines, including electromobility
solutions, self-consumption photovoltaic installations
at the facilities of our industrial customers, and other
advisory and energy management services. Similarly,
the certification of the energy delivered through our
PPAs with renewable energy certificates was increased,
allowing customers to have full traceability of the
renewable origin of their consumption.
• Renegotiation of Purchase Contracts
In 2023, Enel Generación Chile successfully renegotiated
renewable
power
purchase
agreements,
whose
suppliers were facing difficulties in obtaining financing
and signing the amended agreements allowed Enel
Generación Chile to improve the expected supply
profile, improving the contract margin and contributing
to the long-term sustainability of this operation.
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3 Strategy and Risk
Management
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1 Enel Chile Group
5 Other Corporate
Information
6 Main indicators
7 Annexes
2,130 thousands
End Users
+ 2.4%
2,080 thousands in 2022
5.3 %
Energy Losses
+3.6%
5.1 % in 2022
14.4 TWh
Distributed
Energy (1)
+1.0%
14.2 TWh in 2022
1.25 #
SAIFI(2)
-1.6%
1.27 # in 2022
1) Energy distributed inside and outside the concession area
2) Values are subject to changes as a result of the approval process from the corresponding regulatory authority.
DISTRIBUTION AND NETWORKS
Enel Chile participates in the distribution of electric power
through its subsidiary Enel Distribución Chile, one of
the largest electricity distribution companies in Chile, in
terms of the number of regulated customers, distribution
assets, and energy sales. It operates in a concession area
of 2,105 km2, under an indefinite concession granted by
the Government of Chile, transmitting and distributing
electricity in 33 municipalities of the Metropolitan Region,
which includes the area of its subsidiary, Enel Colina S.A.
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Integrated Annual Report Enel Chile 2023
CONCESSION AREA OF ENEL DISTRIBUCION CHILE
Enel Colina S.A.
1. Cerrillos
2. Cerro Navia
3. Colina
4. Conchalí
5. Estación Central
6. Huechuraba
7. Independencia
8. Lampa
9. La Cisterna
10. La Florida
11. La Granja
12. La Reina
13. Las Condes
14. Lo Barnechea
15. Lo Espejo
16. Lo Prado
17. Macul
18. Maipú
19. Ñuñoa
20. Pedro Aguirre Cerda
21. Peñalolén
22. Providencia
23. Pudahuel
24. Qilicura
25. Quinta Normal
26. Recoleta
27. Renca
28. San Joaquín
29. San Miguel
30. San Ramón
31. Santiago
32. Til Til
33. Vitacura
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5 Other Corporate
Information
6 Main indicators
7 Annexes
Enel Distribución Chile's concession area is a high
consumption density sector. It is home to a significant
proportion of the country's population and is also home
to a high concentration of business activities, industrial
parks, small industries, and commerce.
To ensure compliance with the regulations outlined in
Law No. 21194, also referred to as the "Short Distribution
Law," the Company took specific measures. These actions
involved dividing assets within Enel Distribución Chile,
which led to the creation of a new company called Enel
Transmisión Chile on January 1, 2021. The latter was given
the responsibility of managing the assets and liabilities
related to the electric power transmission segment,
which includes lines and substations. At the same time,
Enel Distribución Chile focused solely on the electricity
distribution business. Enel Chile successfully concluded
the transaction on December 9, 2022, transferring its
entire ownership of Enel Transmisión Chile to Grupo
Saesa, representing 99.09% of the stock.
In 2023, the Company delivered electricity services to
more than 2.1 million customers, 2.4% more than in 2022.
During the same year, it sold 14,356 GWh of energy,
considering sales inside and outside the concession area,
which represented a 1% increase compared to 202229,
mainly due to higher sales in the industrial segment.
29 The comparative figure for 2022 excludes physical sales made by Enel Transmisión Chile S.A.
NUMBER OF CUSTOMERS BY
SEGMENT
Residential
Commercial
Industrial
Others
Tolls
Residential
Commercial
Industrial
Others
Tolls
0.1%
0.5%
2.2%
7.4%
89.8%
2,129,821
customers
14,356
Gwh
VOLUME SALES BY
CUSTOMER SEGMENT
39.9%
4.6%
2.9%
15.5%
37.1%
Enel Distribución Chile owns medium and low voltage (MV/
LV) lines totaling 5,709 km and 12,174 km, respectively.
With regard to distribution transformers, the company
reached an installed capacity of 5,364 MVA, equal to
22,628 of its transformers.
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Integrated Annual Report Enel Chile 2023
Indicator
Unit of Measurement
Dec-23
Dec-22
SAIDI evolution (1)(3)
Minutes
122
145
Saifi evolution (2)(3)
Times
1.25
1.27
(1) SAIDI: System Average Interruption Duration Index per user in a given period.
(2) SAIFI: System Average Interruption Frequency Index per user in a given period.
(3) Values are subject to changes as a result of the approval process from the corresponding regulatory authority.
Electricity Service Management
Quality of supply
The oversight of electricity supply quality is carried out by
the Superintendence of Electricity and Fuels (SEC) using
indicators that are intrinsically linked to the frequency and
duration of power outages. Adherence to the investment
and maintenance strategy facilitates compliance with
established service regulations and further catalyzes
advancing the required electrification of consumption.
Furthermore, local operating instructions and a global
policy regulate Enel Distribución Chile, an entity related to
the Enel Group. These documents outline the processes,
framework, and factors to be taken into account when
determining the approved indicators for 2022 and 2023.
The Average Interruption Time per Customer (SAIDI)
indicator was 122 minutes in 2023, 16% lower than in
2022, when it reached 145 minutes. This is mainly due
to optimizing operational plans, effective execution of
maintenance plans, and network automation, as well as a
more benevolent climate from the point of view of average
winter minimum temperatures, which were approx. 12%
higher than in 2022.
Regarding the Average Interruption Frequency per
Customer (SAIFI) indicator, it reached 1.25 times in 2023,
which is very similar to the 1.27 times achieved in 2022.
At the same time, communal limits are established based
on the regulatory indicators established in the "Technical
Standard of Quality of Service for Distribution Systems"
(published in 2019). They must not be exceeded according
to the population density of the district.
Enel Distribución Chile has investment plans that aim
to keep the districts and indicators within current
regulations. These plans, according to new needs that may
arise during the year, either due to unforeseen weather
conditions, authority requirements, and others, can be
adjusted, seeking to optimize and prioritize the quality of
service for as many customers as possible.
Quality plan
The Company’s strategic planning revolves around the
quality of service. To achieve this, it implements a range
of programs that are grounded in operational excellence
and are outlined in the Quality Plan. This plan incorporates
numerous projects within the medium and low-voltage
grids.
Medium and Low Voltage (MV/LV) Quality Plan
This plan, which applies to medium-voltage lines as well as
distribution transformers and low-voltage grids, is mainly
based on the following lines of action:
MV/LV Annual Maintenance Plan (AMP), scheduled
maintenance that is carried out annually on the
infrastructure formed by medium voltage lines, distribution
transformers, and low voltage grids, in accordance with
the criteria of periodicity and scope that the Company
has defined according to the type of installation. Global
compliance with the plan in 2023 reached 99%.
The main activities consist of:
• Comprehensive inspection of feeders.
• Integral pruning of trees near medium and low voltage
grids.
• Resolution of defects present in the network to avoid
failures.
• Thermography on medium and low voltage grids.
• Inspection with technology.
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Management
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1 Enel Chile Group
5 Other Corporate
Information
6 Main indicators
7 Annexes
Medium voltage (MV) quality projects involve the
formulation of a sequence of initiatives centered on those
medium voltage installations (feeders) that experience
recurrent power interruptions or events and incidents
during the preceding year, thereby posing a risk of
surpassing the SAIDI or SAIFI indicators specified in the
Technical Distribution Standard, or which have average
interruption times by customers that are greater than the
mean.
Projects were carried out across 39 distribution pipelines
within the concession area, and their supply quality
indicators exceeded the anticipated thresholds. Individual
analyses were conducted on the failings that arose during
the preceding year with the intention of achieving a
comprehensive quality resolution.
Moreover, the implementation of remote-controlled
equipment is a strategic component that serves as a
pivotal element for maintaining operational efficiency and
quality of service. The implementation of 101 remotely
controlled devices was taken into account for the project.
Its purpose is to enhance the adaptability between feeders
and reduce the repercussions of incidents that disrupt
service continuity for customers and quality indicators.
Furthermore, a total of 19.98 kilometers of MV distribution
network were intervened, of which 6.51 kilometers were
added and 13.47 kilometers were reinforced.
Low-voltage (LV) quality projects aim to improve the
quality of service of low-voltage distribution grids,
especially to renew and optimize the existing network with
new technologies. Its purpose is to reduce failures and
enhance the quality of supply indicators. Among the main
initiatives, the following stand out:
• LV network renovation plan: replacement of low-
voltage bare grids with a pre-assembled protected
conductor of the Calpe type, with a total of 53.94 km
of reinforcement and extension grids. This improves
service continuity and reduces failures in areas with
abundant tree presence.
• Electricity Grid Channeling Plan with Metrogas Network
Interaction: the Company committed to replacing
approximately 36 km of low-voltage underground grids
installed directly onshore with new grids installed in
pipelines as part of the provisions of SEC Official Letter
No. 14,228/2018 -in which the Superintendence of
Electricity and Fuels instructs Enel Distribución Chile and
Metrogas to coordinate to mitigate the risk generated
by the interaction of electricity grids with gas grids.
A revision to the project's strategy was implemented in
the year 2023. Employing cutting-edge subterranean
detection equipment, regulatory noncompliance with
the distance between the grids of both companies
was validated through preliminary inspections. This
undertaking has increased the effectiveness of interaction
risk mitigation. By getting around the modification of 6
kilometers of grids in favor of channeling 1.3 kilometers
of grids, the project undertook a total of 30 kilometers
of underground grid renovation and channeling. This
occurred primarily in the following districts that represent
the Historic Center of Santiago: Independencia, Recoleta,
Estación Central, Cerro Navia, and Santiago.
A tree management plan is an annual maintenance activity
that aims to enhance service quality by preventing supply
interruptions caused by falling branches or tree contact
with distribution networks through continuous coverage
expansion. A total of 41,612 tree management points
were implemented in 2023, representing an investment of
Ch$1,684 million.
Center of Operational Excellence (CEO)
The Center for Operational Excellence was officially
inaugurated on March 14, 2023, with the presence of
authorities and officials. The CEO is a pioneer in Chile; the
Company’s focus is innovation, training, and evaluation
of technical competencies. Here, operational expertise is
taken to a new level, focusing on an absolute commitment
to safety, quality, the environment, and efficiency in all
aspects of electric power distribution. It seeks to open a
new world of opportunities to young people and adults,
giving them the option of learning about the infrastructure
of electricity distribution grids at an accurate scale.
The CEO is more than a facility. It's an ecosystem where
the worlds of energy and academia converge to shape the
future of electricity distribution. The Company’s mission is
to have zero accidents, a sustainable work environment,
and quality service while boosting productivity and success
in the energy industry and protecting the environment.
Education is the CEO’s fundamental pillar, maintaining
solid alliances with higher education institutions and
professional technical high schools, which gives students
the opportunity to learn by doing, hand in hand with the
best, in the field of electrical distribution. In 2023, 117 young
people graduated from technical high schools in Lampa
and Recoleta who did their practical apprenticeship in the
CEO offices, thanks to the "Electrical Training Program
for the Future." Many of the apprentices went directly to
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carry out their professional internship in the contractor
companies of Enel Distribución Chile.
Similarly, the organization established collaborative areas
with over six universities, aiming to consecrate themselves
by 2024, providing future electrical professionals with
access to excellent, continuous, and multidisciplinary
work. These establishments extend their support to foster
innovation and the advancement of novel technologies,
thereby establishing a connection between the educational
sphere and the electrical industry.
By collaborating with academic institutions, suppliers,
contractors, and training facilities, the organization strives
to construct a more secure, contemporary, and effective
energy sector.
Connecting Customers
With regard to customer connection, the highest
historical volume was executed in 2023; newly connected
customers totaled 46,325, 20% higher than in 2022. Of
these connected customers, 95% are in the real estate
segment. The districts with the highest participation in the
total number of connected customers are Santiago (15%),
Ñuñoa (15%), La Florida (13%), La Cisterna (9%), Macul (5%),
and Cerrillos (5%).
Connecting Netbilling Customers
Law No. 20,571 and its regulations establish the conditions
and process of Netbilling projects, through which Enel
Distribución Chile's low and medium-voltage customers
can install and connect their generation equipment up to
300kW to the grid.
In 2023, 731 Netbilling customers were connected,
cumulatively reaching 3,459 customers with an installed
capacity of 26,879 kW. A higher volume of connections
was estimated during the year, but due to delays in the
government's Casa Solar project, these did not take place.
Medium
Voltage
Distributed
Generation
(PMGD)
Customer Connection
New clean and renewable generation technologies have
opened up the possibility of a new paradigm in distribution
grids. Nowadays, generation at the medium voltage level
has taken a leading role in electricity grids.
In particular, distributed generation is part of the
diversification plan of the energy matrix, due to its
significant contribution in terms of CO2 reduction and the
emergence of new non-conventional energy sources.
In the case of medium-voltage distributed generation
projects, the period is closed with 32 PMGD connected to
Enel Distribución Chile's grids, totaling 123 MW of injected
power. In addition, there are 21 PMGD projects planned to
be connected in 2024, totaling 149 MW of injected power.
Energy losses
In 2023, Enel Distribución Chile faced major challenges,
including a downward projection in energy demand in the
industrial-commercial sector and a possible increase in
camps in different areas of the distribution network.
However, demand for 2023 registered a slight 0.17%
increase compared to 2022. This was mainly reflected in
consumption in the commercial and residential sectors. At
the same time, on the issue of campsites, a 4% decrease
in the number of homes was observed compared to 2022.
Enel Distribución Chile has achieved great results thanks
to continuous operational improvement, communication
between areas through integrated committees, and
constant and systematic monitoring of the Company’s
leading operating, technical, and commercial indicators.
Diverse measures were implemented with respect to
the supply reading procedure, enabling an ongoing
improvement of operational indicators in the region and
culminating in a reading efficiency of 94.2% by the end of
the year. Constant monitoring of effectiveness indicators
and control over operations represented one area for
development.
A total of 167,744 checks were conducted in 2023,
achieving a detection rate of anomalies of 9.9%. This
enabled the recovery of 97.7 GWh of energy attributed
to anomalies found, meeting the 14.7% target that had
been suggested at the start of the year and mitigating the
volatility of the electricity market witnessed in 2023.
14.4 kilometers of the distribution network could be
upgraded from the perspective of Technical Measures
to the advantage of 2,034 customers employing 15
distribution transformers. In addition to minimizing
technical and non-technical losses, this enabled us to
enhance the caliber of electric service that we provided
to our clientele.
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ENERGY LOSSES 2014-2023
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
5.30%
5.30%
5.20%
5.10%
5.00%
4.99%
5.24%
5.21%
5.14%
5.32%
When considering vulnerable cases, it is worth noting
that Enel Distribución Chile successfully electrified 1,583
homes situated in various camps within the concession
area. Concurrently, 571 junctions with direct connections
to the distribution network were established, effectively
controlling and regulating the influx of customers who
connected intermittently throughout the year and
ensuring the provision of high-quality electricity to nearby
customers.
In conclusion, the aforementioned activities collectively
contributed to the acquisition of a loss indicator of 5.32%
for Enel Distribución Chile, which was in line with what was
expected for 2023. With this, the physical losses for the
year stood at 800 GWh.
Measuring park
The measurement process is carried out using more than
2.1 million meters distributed throughout the Company's
network; this equipment allows for the measurement
of the parameters associated with the processes
of energy purchase and sale, which are divided into
electromechanical and electronic meters; there is always
equipment that allows and guarantees compliance with
legal requirements and various technical standards. This
involved implementing or improving equipment and
accessories at border crossings, monitoring equipment,
and end-customer installation.
Enel Distribución Chile, which is constantly evolving
technologically, at present only has electronic meters
to install as corporate property and accepts equipment
provided by customers as long as it complies with the
authority's norms and standards.
The process of electrifying customer consumption has
a direct connection to reducing the use of fossil fuels
and, as a result, reducing greenhouse gas emissions that
contribute to climate change, which we observe every
day. To make this electrification process more efficient
and allow customers to manage their consumption better,
the grid must be digitalized as part of the response to
the challenges that electricity distribution must face,
with smart metering serving as the first step in this
transformation.
By the end of 2023, the total number of smart meters
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Generation
(74%)
Cost of contracts with generating
companies, determined from the
tenders carried out by the
authority
Transmission
(10%)
Cost for the use of the electricity
transporation system (electric
transmission lines and substations)
Distribution
(16%)
Distribution (15%) added value of
distribution, which is determined
every four years based on the
operation of a model company,
based on a study carried out by
the National Energy Commission,
which determines the Added Value
of Distribution (VAD).
Public service charge: (1%)
referring to the financing by end
users of the budgets of the
National Electrical Coordinator, the
Panel of Expers and the strip
study established by aricle 93 of
the General Law of Electrical
Services.
placed with consumers reached 353,127. Together with
the grid's digitalization, the installation of smart meters
enables remote operations, which benefits customers,
the regulator, and the company. Other benefits of
electrification of energy use include increased control
and awareness of energy consumption, the integration
of renewable energy sources, and improved grid security.
Similarly, the use of smart meters can spur innovation in
the energy sector and allow energy companies to give new
services and solutions to clients.
Fee Composition and Payment Flexibility
Electricity distribution companies operate under a
concession regime, through which service is provided to
all customers. Depending on the power connected, this is
the type of tariff that applies. There are two types of fees:
1. Tariffs for regulated customers: for those customers
with a connected power of less than 5,000 kW.
2. Tariff for free customers: for those customers with
connected power greater than 500 kW who negotiate
their supply with any energy retailer in the market.
These customers pay a regulated toll for the use of the
distribution network
The electricity supply tariff for regulated customers is
made up of three components:
Given the regulatory context that has kept rates increase-
free since 2019, the Company seeks to achieve efficiency
levels from distribution, which allows for maintaining the
quality and security of supply within the tariff framework to
contribute to affordability for customers. These efforts are
complemented by the investment plan in the generation
business line, through which the use of renewable
technologies is accelerated, and different alternatives that
give continuity to supply in a more economical way are
explored, in addition to promoting progress towards zero
emissions.
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Customer
centricity
1
Customers
activation
2
Billing
4
Customer
service
3
Collection
and recovery
Customers in the Center
Placing customers at the center of management
becomes increasingly important as their behaviors
and habits change, becoming more active in terms
of increasing electricity use and participation in their
solutions, necessitating greater, more agile, and simple
interaction, as well as greater adaptability to their needs.
In order to manage these changes, we must understand
our customers and how they engage with the Company's
distribution network, as well as what energy means to
them and what types of demands it meets. It is critical to
understand what features each kind of customer values
and what their satisfaction parameters are.
Enel Chile's commitments to its
customers
The energy transition will benefit many people thanks to a
cleaner and more sustainable generation system coupled
with a more resilient, digitalized, and intelligent distribution
network. Chile presents a growth opportunity, as there is a
significant gap in electrification and customer preference
for their clean energy requirements. The new opportunities
will be in the integrated commercial approach, where new
energy services will be essential.
Electrification, grid infrastructure, and quality of service
are essential to achieving Enel Chile's goal of maximizing
value for its customers and providing reliable and secure
energy.
Global Customer Operation
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Note: The satisfaction survey is conducted with a statistically
representative sample, the results of which have a confidence level
of 99%.
RESIDENTIAL CUSTOMER
SATISFACTION
2019
2020
2021
2022
2023
67%
62%
66%
62%
64%
Electronic Billing
As in 2022, client subscription campaigns were carried out
in 2023 to deliver a receipt or invoice via email, which was
available on the web, as well as through direct engagement
with customers. The campaigns were carried out in
collaboration with the Customer Care team, who in turn
promoted the subscription to electronic bills throughout
all service channels. The main campaign was the Digital
Transformation campaign, which, in four variants,
managed to sign up 140 thousand new customers.
At the end of December 2023, the number of customers
enrolled in the digital billing system was 690,745, a 37%
increase from December 2022 and 33% of the total
number of customers.
Elimination of winter energy surcharge
On June 15, 2023, an agreement was reached between
the Association of Electricity Companies and the Ministry
of Energy in relation to the elimination of the charge
for additional winter energy for residential customers,
announced by the President of the Republic in the latest
public account. Specifically, as of July 11, 2023, no billed
customer was charged for additional winter energy, i.e., all
energy will be charged at the base energy price.
VAD Adjustment
On November 15, 2023, Exempt Resolution No. 574 was
published in the Official Gazette, approving the Preliminary
Technical Report on the proposal of Tariff Formulas for
Public Distribution Service Concessionaires, quadrennium
Nov-20 to Nov-24. With this milestone, the preparation
of the different areas of the company (in addition to
Invoicing: ICT, Customer Care, Grids, Communications,
and Regulation) began to undertake the transfer that will
be instructed by the Authority during the year 2024. This
adjustment will have an impact on all of Enel Distribución's
customers and will cover a period of more than 40 months.
Customer Satisfaction Survey
In 2023, customer satisfaction reached 64%, representing
a two-point increase compared to 2022.
It is a gap of one point from this year's target of 65%.
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Among the positive aspects, the service's consistency and
lack of difficulties in general are significant. The negative
sides include energy costs and bill delivery times.
The specific satisfaction of the Company's service
channels also increased, with satisfaction with commercial
offices rising from 70% in 2022 to 93% in 2023; in the case
of call center executives, it rose from 61% in 2022 to 63%
in 2023; and with digital channels, it rose from 60% in 2022
to 65% in 2023.
Credit and Collection Management
Digitalization of collection
In 2023, the focus continued to be on promoting digital
collection channels.
In 2020, the share of payments through digital channels
was 74.4%; in 2021, it increased to 77.4%. In the following
years, 2022 and 2023, it reached 78.5% and 79.3%,
respectively. Growth in the last two years has been slower,
given that there is a solid attachment to face-to-face
payment by this group of customers.
Customers prefer external digital portals, where they may
access various banking and collection portals such as
Servipag, Sencillito, Unired, and so on, followed by the
Enel website, which contains direct banking links from the
major banks. AutoPay remains below 10%. Finally, external
face-to-face channels account for roughly 20%.
A notable improvement added in 2023 was the return of
money via bank transfer, which was previously done but
with a more complex procedure and an average return
period of roughly 30 days. However, the current timeline
for money return has been reduced to five days.
Business Operations
In 2023, debt collection and regularization management
were highlighted by the restoration of the customer
payment discipline that had been lost during the epidemic.
In terms of collecting share allocation, more than 31
million shares were allocated in 2023 (15% more than in
2022), with a total recovery of Ch$ 459 billion (31% more
than in 2022). The collection strategy includes increased
collection efforts per customer, as well as different sorts
of messaging based on the age of the debt, emphasizing
cut-off notices and offers of agreement. Regarding the
supply suspension, 613,451 actions were carried out (92%
more than in 2022).
Customer Support
App Improvements
In 2023, efforts were made not only to strengthen and
improve the app's existing functionalities but also to add
new flows and transactions, allowing for better customer
experience and migration from analogous channels, as
well as greater validation between the web and the app,
the two main self-service channels.
The most dramatic improvement to the experience was an
80% reduction in login time, resulting in a total load time of
7 seconds. Among the new functionalities implemented in
2023, three stand out:
• Customers can now visualize and analyze their energy
consumption over the last 36 months using graphs and
KWh numbers. Customers using Smart meters can view
details about their consumption not just monthly but
also weekly and daily.
• Customers can request payment agreements for their
electricity bills in up to 16 payments for arrears under
40UF.
• The app's push notification feature provides customers
with timely information on issues such as scheduled
power outages, campaigns, and contests without
requiring them to open the app and simply receive
informative messages on the main screen of their cell
phone.
Based on the changes and innovations outlined above,
significant benefits were obtained in three main areas:
• Downloads: 143,000, up 24% from 2022.
• Logins: 1.1 million, up 91% year-over-year. In 2022, the
app accounted for only 29% of the total number of
logins to the private area (between the web and the app).
By 2023, this percentage had risen to 45%, showing that
the app is gradually no longer a secondary channel.
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• Rating stores: Without a doubt, this is considered one
of the main achievements. The Company started 2023
with an in-store rating of 2.0 for Android and 3.0 for
iOS, achieving year-end growth of 146% and 76%,
respectively, finally obtaining a total rating of 4.4 for
both stores.
Web Improvements
As with the app, the website focused on improving login
speed, resulting in a 75% drop in loading time from 24
to 6 seconds. In terms of new functionalities, in 2023, a
requirement was developed that allows customers to self-
attend and request support for a variety of needs, such
as account information, claims for damaged appliances,
emergencies, damage to public lighting, and name
changes such as account information, claims for damaged
appliances, emergencies, damage to public lighting, and
name change on the bill, among others.
In addition to the functionality mentioned above, a new
help section was created on the web, which includes
not only relevant information and frequently asked
questions but also friendly step-by-step videos on how
to complete the foremost transactions (payment, reading
entry, registration, copy of the ticket, emergency report,
agreements, and so on) on the web and in the app. These
movies were made available not just on the web but also
on social grids and commercial office displays, allowing
customers to be taught while waiting and achieving more
migration and digitalization.
WhatsApp, one of the channels preferred by
customers
The most significant development for this channel in
2023 was the establishment of 24-hour human agent
attention for emergencies. Until 2022, executives' hours
were extended until 10 p.m., regardless of whether they
provided commercial or emergency services. Despite the
fact that the bot now handles most emergency services,
there is still human help available 24 hours a day in
case the customer's demand requires more analysis or
management, allowing this channel to provide a faster
solution.
Although the volume of customer service on the
WhatsApp channel remained stable in 2022, it is important
to note that the percentage of self-service, i.e., service
rendered through the bot, increased by five percentage
points in 2023, reaching a total of 70%. This indicates
that the automatic menu features the main needs of the
customers and that, gradually, they manage to solve their
requirements at the first contact without the need for a
human agent.
Natural Language IVR
In 2023, Natural Language (Interactive Voice Response)
IVR call handling technology reached a remarkable
achievement by automating 58% of calls received in the
Call Center, representing a 13% increase compared to
2022.
Throughout this period, it managed to identify more than
75% of customers using their RUT and corresponding
supply number, confirming only with the customer's
address and district. The Natural Language IVR proved
its versatility by adapting to the various changes in the
Company’s systems, incorporating new functions for the
self-service of our customers, and optimizing the existing
functionalities, along with the grammar, with the aim of
strengthening the connection with the customer.
This technology has an advanced capacity for customer
voice recognition, allowing us to understand their requests
and offer natural language service, thus improving their
experience and reducing service times.
Since its implementation, the Natural Language IVR has
handled more than 6 million services, driving a significant
improvement in the customer experience with the
channel. As of December, it had a 68% approval rating
regarding the system's resolvability, 64% regarding ease
of navigation, and 61% regarding the perception of a
pleasant experience. It also stood out for offering priority
attention by automatically recognizing the phone number
registered in our systems. In the event that the client
contacts us from another number, their client number will
be identified, facilitating a direct referral to specialized
executives.
Throughout 2023, we successfully implemented a Natural
Language IVR specific to the subsidiary Enel Colina. This
implementation provides customers in the Colina district
with online self-services to meet their needs, either in
emergencies or to business requests related to their
accounts or tickets.
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Operation Optimization
Cloud Contact Center
At the end of 2022, the Cloud Contact Center project was
successfully implemented, consolidating the operating
models of call centers in four countries in the region where
the Enel Group operates: Argentina, Chile, Colombia, and
Peru. This project marked a milestone in the region and
not only introduced the centralization of the technological
infrastructure for the telephone channel but also achieved
the convergence of contractual models for supplier
management, adapting contracts derived from local
tenders to a unified contractual environment.
This project began operations in early 2023, kicking off an
optimization phase that included payment models, service
quality, and training methods. The optimization of call
projections and service executive sizing was reinforced in
order to improve resource management efficiency.
Quality indicators have improved significantly as a result
of reinforced processes, structural adjustments, and
innovative training programs in the three call centers
currently managed by the company. The continual goal is
to increase the quality of client service, with a focus on
their individual requirements.
The introduction of a Central HUB, based in Colombia
and responsible for answering simple calls, led to cost
savings and improvements in the company's essential
KPIs. A systematic plan at the global level allowed for the
standardization of processes and systems, resulting in
analytical synergies for the four participating countries.
The future strategy is to continue optimizing the customer
service channel, resulting in the development of new
comprehensive operations and processes that contribute
to better customer service.
Face-to-face channel optimization
In 2022, after the pandemic, the face-to-face channel
began
a
process
of
restructuring,
remodeling,
optimization, and digitalization, which continued in 2023,
focusing on the following pillars of work:
• Image and infrastructure: the implementation of the
remodeling and restructuring plan for commercial
offices continued, optimizing service and increasing the
quality standard both inside and on the façades.
• Self-service: work has been done to expand the
possibilities of self-service for customers, developing
new
functionalities
in
the
self-service
totems,
implementing a web self-consultation in each branch,
and encouraging self-service through Google My
Business; this had a positive impact on the reduction of
queues, waiting times and satisfaction improvement.
• Digitalization:
Several
measures
were
taken
at
commercial offices to encourage clients to go digital,
including the migration of certain services to channels,
including the web, apps, and WhatsApp. Some of these
approaches included the installation of posters with
QR codes, non-stop video on screens, advertisements
via email, digital host, and incentives to encourage
enrollment in the virtual branch and subscription to
electronic bills.
• Optimization: The company launched two major
programs to improve face-to-face service and the
consumer experience. A new service model, Fast Corner,
was established, allowing for faster response times in
commercial offices and providing quick solutions on
the first contact. Simultaneously, a new 100% electric
mobile office was implemented, allowing us to be closer
to customers effectively and sustainably during 2024,
answering their questions and providing solutions to
their needs.
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The work carried out in 2023 allowed the Company
to provide a better service and experience to its
customers in the face-to-face channel, which is
reflected in the substantial improvement in service
indicators. The main ones include the following:
• Service level: On average, 83% of customers
were served in less than 15 minutes during 2023,
versus 44% during 2022.
• Waiting time: Customers waited 11.2 minutes on
average for service in 2023 versus 35.2 minutes
in 2022.
• Satisfaction survey (post-service): on average,
95% of customers say they are satisfied with the
service in commercial offices during 2023, versus
91% during 2022.
Complaints Management
During the first quarter of 2023, and thanks to the efforts
of multi-disciplinary work teams in the areas of Billing,
Arrears, and Front Office, the Company achieved definitive
normalization of the billing system and process, which had
previously increased customer complaints, resulting in a
normalization of the complaint rate. As a result, the overall
number of complaints received through service channels
decreased by 25%, which was aided in part by the removal
of the winter limit.
Despite the previously mentioned decrease in the number
of complaints received through the service channels,
the transfer of complaints to the Superintendence of
Electricity and Fuels increased from 19% to 27% as a result
of the fact that requests for information remain at the
same volume as in previous years.
Differentiated care for Customers with
special needs
With respect to initiatives related to special customer
needs, the Company’s website for its blind customers was
modified, considering tabulations and changes in the text,
and 100% of the commercial offices have been equipped
with access ramps, a bathroom equipped for people with
disabilities and a double service module.
Management of electro-dependent customer
needs
As every year, Enel Distribución Chile is firmly committed to
guaranteeing personalized and always available attention
to electro-dependent customers. At the end of 2023,
2,900 electro-dependent customers were registered,
who have a dedicated priority service in case of requiring
assistance, with automatic recognition of the telephone
number registered in the Company’s systems, and in
the event that the customer is contacted by another
telephone number, their customer number is recognized,
thus obtaining a direct referral to specialized executives.
Promoting responsible and efficient use of
energy
• Energy management platforms for free customers: The
company made available web platforms to free or non-
regulated customers that allow them to manage energy
in their facilities and monitor their energy performance
in order to meet their energy efficiency objectives and
establish policies or strategies to reduce consumption
costs.
• Energy Management System: it focuses on large
consumers who carry out energy efficiency actions.
This platform centralizes the energy consumption of
the facilities, allowing customers to understand the
performance of energy consumption in real time in a
simple and intelligent way. This facilitates the definition
of guidelines and management strategies to achieve a
decrease in consumption. As a result, the user consumes
their energy efficiently. To date, there are 25 connected
customers.
• The incentive for demand management is a program
intended for businesses that can regulate their use of
electricity and want to save money on their energy bills.
It encourages the shift of consumption from nighttime
to daytime. It increases the usage of renewable energy
sources in the National Electricity System.
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2,195 units
Electric
Buses (1-2)
+ 11.9%
1,962 in 2022
2,139 units
charging
Points (1-3)
+ 25.7%
1,701 in 2022
10 MW
Demand
Response (1)
+ 8.9%
9 MW in 2022
21,575 units
Heating
Replacement(1)
+ 34.7%
16,016 in 2022
0.6 TWh
Electrification (4)
(TWh accumulated since 2019)
+ 68%
0.4 TWh in 2022
1) Accumulated figures.
2) Considers electric buses supplied, managed and served by Enel X Chile.
3) Charging points for public and private electric buses served by Enel X Chile.
4) Includes all electric buses, charging points, all-electric buildings and air conditioning/heating sold
ENEL X CHILE
The energy transition is an ongoing process that involves
various participants: citizens, communities, companies,
institutions, local authorities, and governments. It is a
paradigm shift that seeks to build more sustainable cities
to improve people's quality of life from an economic,
social, and environmental perspective.
Electrification contributes to many aspects of our lives,
from reducing the carbon footprint, noise, and air pollution
to improving energy performance. It also achieves cost
efficiencies for the various segments with a high potential
for electrification.
The Enel Chile Group, through its subsidiary Enel X Chile
(from now on, "Enel X"), has concentrated its efforts on
replacing contaminating energy sources with the intensive
use of electricity in the public and private sectors, offering
different solutions that allow the electrification of homes,
industrial processes, corporate fleets, and public transport.
Enel X has become a leading company in energy efficiency
solutions, turning into the primary enabler for massifying
public electric mobility in the country. At the same time, it
has managed to be recognized as a "strategic partner" for
different customer segments, both for companies and the
home, as well as institutions and public entities.
Enel X has three lines of business: eHome, eIndustries,
and eCity. These business units offer solutions to meet
the needs of the various segments. In this structure,
innovation is undoubtedly the cornerstone in the energy
transition process driven by the Company, capitalizing
on technology development to create value in an era
of profound changes and transformations, creating
innovative, digital, and specific products for people,
companies, and cities.
Furthermore, the Company designed new policies to
develop and implement new projects, incorporating the
circular economy into their processes. This guarantees
their sustainability and adds value to the product and
service portfolio that Enel X offers its customers.
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Enel X, the accelerator of circularity
For the Companies
The company that makes
companies more competitive
with more circularity, less
environmental impact and new
business opporunities.
For the cities
The company makes cities more
liveable, assessing circularity and
boosting it with smar lighting
and energy efficiency.
For the people
The company makes homes
smarer, more comforable and
sustainable; punctuate its
circularity.
In line with its strategic principles, the Enel Chile Group
has promoted the acceleration of the electrification
of cities through its business lines: electrification of
transport for the public sector, industries, and households;
the implementation of new Full Electric projects; and
significant progress in replacing wood-burning stoves
with inverter air equipment for homes. Similarly, it has
implemented energy efficiency projects to support
customers in mitigating the carbon footprint in their
operations, ventured into new industrial sectors, and
implemented new business models.
Enel X Chile and the current context
Undoubtedly, 2023 was a year of significant changes in
energy efficiency, where Enel X Chile, together with the
Group's different business lines, delivered an offer of
robust clean energy and electrification solutions for the
country's various sectors, industries, institutions, and
homes.
One of the main challenges promoted by the government
was the Energy Efficiency Law. This regulation seeks
to regulate energy use in large electricity-consuming
companies (CCGE), as well as in public buildings and
homes. Considering these regulations, Enel X developed
various energy advisory and management plans to meet
the needs of the different productive sectors, making the
solutions in our portfolio more flexible.
As part of its commitment to promoting electromobility in
the country, Enel X is one of the 156 institutions adhering
to the sixth version of the Public-Private Agreement for
Electromobility, promoted by the Ministry of Energy, which
seeks to encourage closer links with companies and
bodies for the articulation of electromobility in the country.
In response to internal challenges and the post-pandemic
scenario, a proactive approach was maintained in raising
staff awareness regarding the importance of self-care,
offering various instances for regular medical check-
ups and vaccination days, and keeping an extensive
teleworking regime, which has had a rapid and efficient
adaptation at a company level.
Similarly, in 2023, Enel X focused on strengthening its
relationships with the government and various companies
to try to learn about their requirements, thereby bringing
the Enel X portfolio's solutions closer and offering new
financing alternatives to companies and institutions that
can contribute to improving energy efficiency in each of
their operational areas and promoting the development of
smart and sustainable cities.
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E-Home
• Over 21,000 replacements of wood-burning stoves with air conditioning.
Families can replace their wood-burning stoves with inverter air conditioning in their houses
for free. This is funded by several companies using an emissions compensation method to
offset their operations.
Enel X has done 21,279 swaps under this project since 2017, leading to 431 tons of PM2.5 that
were not released into the atmosphere and directly benefitting the decrease of particulate
matter emissions produced by residential wood-burning stove combustion.
In 2023, 4,868 replacements were made, removing 97 tons of PM 2.5 from the atmosphere.
This success had a direct impact on eliminating the usage of firewood in the country, hence
promoting city decontamination.
E-Industries
• LED lighting for Chile Hippodrome
To promote sustainable sports development in the country, Enel X and Signify signed a
strategic alliance with the Chile Hippodrome to implement a lighting replacement project
remotely and in an immersive manner using the latest LED technology managed on the
racetrack of the sports venue.
This agreement included the installation of 478 efficient low-energy lights and the Interact
Sports intelligent light control and management system in the Hippodrome facilities,
allowing the venue to improve its efficiency by up to 70%, generating energy savings and
providing attendees and equestrian lovers with a first-class technological experience with a
sustainable character.
• "Rooftop Alive" Project at the Mandarin Oriental Hotel
The Mandarin Oriental Santiago and Enel X developed a project to provide a more sustainable
experience to hotel guests by implementing the first sustainable high-altitude green
orchard. It is a 21.6 kWp photovoltaic plant, producing 19.2 MW/year of renewable energy
for greenhouse lighting. The project has an area of 290 m2 and will reduce the hotel's carbon
footprint, eliminating approximately 7.5 tons of CO2 per year.
• The first 100% electric bus fleet in the mining industry
Enel X collaborated with Verschae and Flex to launch the first 100% electric bus fleet for
Compañía Minera del Pacífico (CMP), aiming to reduce emissions in the mining industry.
These are 45 electric buses with a 280-kilometer range that will transport workers from the
cities of Vallenar, Caldera, Copiapó, and La Serena to the CMP mining sites in the Copiapó,
Huasco, and Elqui valleys.
Similarly, to guarantee the fleet's efficiency, four contemporary electric terminals equipped
with rapid chargers will be built to feed the entire fleet in less than two hours.
Main 2023 Projects
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• Agreement between Enel Chile and Cruzados to modernize the new stadium of Universidad
Catolica Football Club
The agreement contemplates the provision of electricity and incorporating various solutions
that will directly benefit the sporting spectacle and the spectators to transform the new
sports venue of the Universidad Catolica Football Club into the first 100% sustainable stadium
in Chile.
The initiative will have a renewable energy self-generation plant, which can fully cover
six football matches per month through a contract for the supply of certified electricity
of renewable origin for 2.4 GWh/year and the implementation of a solar self-generation
photovoltaic system that will produce 350MWh per year, through 400 high-standard panels
permitting the venue to be self-sufficient in such energy.
• Photovoltaic Project in Puratos Chile
Enel X implemented a photovoltaic system at the Puratos Chile plant in the Cerrillos
municipality.
The project improved the Company's sustainability, reaffirming its "Better Planet"
commitment, by incorporating a 290 kWp rooftop solar photovoltaic system with 550 Wp
high-efficiency panels and 5 Huawei 210 kW inverters.
This initiative will allow Puratos Chile to project an annual energy generation of around 448
MWh while contributing to an estimated reduction of 180 tons of CO2e per year, equivalent
to the positive impact of planting 450 trees.
• Thermal power plant system for the Indisa Clinic
Enel X implemented a heating and hot water project in the thermal power plant for the 3
Indisa Clinic towers in Santiago. This initiative reduces the operating expenses of the health
facility while contributing to reducing greenhouse gases from the operation of existing
boilers.
The optimization of the thermal power plant allowed the Indisa Clinic to improve its energy
efficiency, obtaining savings of up to 26.5% after the first six months, managing to reduce
emissions by approximately 143.5 TON of CO2e each year.
• First 100% electric truck for large-scale mining
As part of the National Commercial Meeting (ENADE- Spanish acronym), Enel X and SQM
presented the "E-truck," the first 100% electric high-tonnage mining truck, which will operate
at SQM's sites in the Antofagasta Region.
It is an electric vehicle with a range of more than 200 kilometers and the potential to reduce
up to 12 tons of CO2e per year, and that will allow SQM to contribute to its goals of becoming
a carbon-neutral company by 2040.
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E-City
• LED Lighting for the National Stadium
Enel X and Signify were awarded the public tender to design and implement a lighting project
for the National Stadium, the country's leading sports venue. It involves the installation of
224 state-of-the-art LED projectors distributed in the stadium’s four towers, incorporating
efficient, sustainable technology and better lighting quality, which will provide a better show
for attendees and athletes, adjusting to FIFA world standards.
The inauguration of this project was part of the launch of the Santiago 2023 Pan American
and Parapan American Games, an instance that brought together well-known athletes from
different disciplines who were offered the best infrastructure for their training needs and
sports competitions.
• The arrival of 10 electric double-decker buses in Chile
The future of public transport in Chile looks promising, as the latest tenders incorporate
more new electric buses into the system. A significant step that puts Chile and Enel X
back in the global spotlight is the incorporation of 10 electric double-decker buses into
the Metropolitan Region public transport system. These vehicles, which arrived in Chile for
the first time, comply with the RED standard, offering amenities such as air conditioning,
Wi-Fi, and USB connectors, with a capacity to transport up to 112 people. Undoubtedly,
incorporating these new buses into the transport system is a milestone on the road to the
country’s electromobility.
• A tree for every electric bus: Enel X's initiative to reforest Chile
The 1 + 1 program, one tree for each electric bus" aims to address the pressing issues of
environmental protection and social well-being in urban areas. This initiative, presented by
Enel X in collaboration with the Reforestemos Foundation, will contribute to the regeneration
of two forests located in the center and south of the country and will also help Santiago
become a more sustainable city.
As part of this initiative, the Company proposed to plant a native tree for every electric
bus put into circulation through Enel X's financing model. These trees will be strategically
placed in two regions in the country's southern part that need reforestation. This initiative
aims to restore the ecosystem's environmental balance and positively impact climate
change mitigation. Enel X plans to plant 2,000 trees, the same number of trees as the buses
circulating in 2023.
• Green Rooftops Project at Exequiel Gonzalez Cortes Hospital
Seeking to promote energy efficiency and contribute to the mitigation of greenhouse gases
in the hospital sector, Enel X, in partnership with the Regional Government of Santiago,
Santiago Corporation, and Sé Santiago, implemented the pioneering "Green Rooftops"
project at the Exequiel Gonzalez Cortes Children's Hospital, located in the municipality of
San Miguel.
This initiative, which is part of the NCh3626 standard, contemplated the design and
installation of 1,000 square meters of green rooftops in the hospital infrastructure, capable
of capturing 100 kg/year of particulate matter (PM2.5) and 3 tons of CO2e per year, equivalent
to neutralizing the emissions generated by 300 cars for one year and, allowing the venue to
become a pioneer in environmental care while improving its energy efficiency.
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• Implementation of 100% electric household waste collection trucks
Enel X, in partnership with the municipalities of Colina and Vitacura, implemented and
commissioned the first 100% electric RSD collection trucks in Chile. These are two electric
vehicles with a 250-km range and a 15-second compaction cycle, which will travel the streets
of the respective municipalities every day, reducing noise pollution in the area and promoting
sustainability, thanks to the reduction of approximately 42 tons of CO2e per average daily
route, equivalent to 248 planted trees.
Challenges of electrification
The electrification of cities is no longer a trend but
rather the conviction of various public and commercial
perspectives. There is a consensus that electricity
solutions for city development and all of its participants
- the industrial, commercial, and residential sectors - not
only contribute to their sustainability but also solve specific
problems, contributing to industry decontamination and
decarbonization and becoming a real contribution to
climate action.
The growing use of electromobility, not just in public
transportation but also in users' preferences for
environmentally
friendly
forms
of
transportation,
underlines the paradigm shift. It is similar to how people
choose to heat their homes, debunking the idea that
electric heating is expensive and promoting it as the
cleanest and most efficient heating option available in the
market.
Since energy is now almost as important a commodity
as water, maintaining an uninterrupted supply is the
next challenge. As a result, storage solutions are critical
to increasing sustainability and promoting normal city
operations.
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EBITDA BY BUSINESS SEGMENT
(in millions of Ch$)
Dec-23
Dec-22
Variation
Var %
EBITDA Generation Segment
991,587
1,059,793
(68,206)
(6.4%)
EBITDA Distribution & Grids Segment
92,378
159,856
(67,478)
(42.2%)
Adjustments for consolidation and other business activities
(45,007)
(45,446)
439
(1.0%)
Total Consolidated EBITDA ENEL CHILE
1,038,958
1,174,203
(135,245)
(11.5%)
PERFORMANCE
OF THE ENEL
CHILE GROUP
Operating income decreased by 11.6% to a total of Ch$
4,380,246 million as of December 2023, mainly as a
result of the US$ 520 million payment made by Shell to
Enel Generación Chile for the modification of its contract
recorded as additional income in December 2022 and
the lower gas marketing in 2023, both in the Generation
Segment.
Supply and service costs amounted to Ch$ 2,995,585
million as of December 2023, equivalent to a reduction of
11.9% compared to December 2022, mainly as a result of
lower costs for energy purchases, fuel consumption, and
gas marketing, all in the Generation Segment.
As a result of the above, the Company's EBITDA decreased
by 11.5% to Ch$ 1,038,958 million as of December 2023.
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EBITDA GENERATION SEGMENT
(in millions of Ch$)
Dec-23
Dec-22
Variation
Var %
Operating Income
3,276,387
3,877,759
(601,372)
(15.5%)
Operating Costs
(2,077,671)
(2,573,293)
495,623
(19.3%)
Staff costs
(60,883)
(49,005)
(11,878)
24.2%
Other expenses by nature
(146,246)
(195,667)
49,421
(25.3%)
EBITDA Generation Segment
991,587
1,059,793
(68,206)
(6.4%)
EBITDA Distribution and Grids Segment
EBITDA DISTRIBUTION AND GRIDS SEGMENT
(in millions of Ch$)
Dec-23
Dec-22
Variation
Var %
Operating Income
1,511,619
1,454,722
56,897
3.9%
Operating Costs
(1,321,193)
(1,194,700)
(126,493)
10.6%
Staff costs
(26,534)
(22,503)
(4,031)
17.9%
Other expenses by nature
(71,513)
(77,663)
6,149
(7.9%)
EBITDA Distribution and Grids Segment
92,378
159,856
(67,478)
(42.2%)
EBITDA Generation Segment
• Operating income decreased by 15.5% to Ch$ 3,276,387
million as of December 2023, mainly as a result of the
additional revenue generated by the agreement with
Shell in December 2022 and lower gas marketing in
2023.
• Supply and service costs reached Ch$ 2,077,671 million
as of December 2023, equivalent to a 19.3% reduction
mainly due to lower costs for energy purchases, fuel
consumption, and gas marketing.
• Given the above, the EBITDA of the Generation Segment
reached a value of Ch$ 991,587 million as of December
2023, 6.4% below the 2022 level.
• Operating income grew by 3.9% compared to December
2022, registering a value of Ch$ 1,511,619 million,
essentially due to higher energy sales associated with a
higher average sales price expressed in pesos, partially
offset by lower revenues from other services as a result
of the sale of Enel Transmisión Chile in December 2022.
• Procurement and services costs totaled Ch$ 1,321,193
million as of December 2023, equivalent to a 10.6%
increase over the previous year, primarily explained by
higher costs for energy purchases and transportation
expenses.
• As a result of the above, the EBITDA of the Distribution
and Grids business reached a value of Ch$ 92,378 million
as of December 2023, equivalent to a 42.2% reduction,
which includes the effect of the sale of Enel Transmisión
Chile mentioned above.
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2023
2022
Figures in Ch$ million
Economic Value Generated (VEG)
Economic value generated directly
4,742,049
5,993,765
Operating income
4,380,246
4,956,432
Non-operating income
361,803
1,037,333
Distributed Economic Value (VED)
Economic value distributed directly
4,463,630
4,724,392
Operating Costs
3,454,897
3,906,141
Wages and social benefits for workers
133,158
113,670
Payments to capital providers
648,662
234,884
Financial Expenses
247,068
195,274
Dividend Payment
401,594
39,610
Payments to the government
226,912
469,697
Retained Economic Value (VER)
VER = VEG - VED
278,419
1,269,373
Economic Value Generated and Distributed to Stakeholders
The economic value generated and distributed directly by Enel Chile provides a good indication of how the Group creates
wealth for all stakeholders.
Economic Value Generated and Distributed
Payments to the government include payments made in
Chile, where the Company mainly operates, and Argentina,
for the operations of the Enel Generación Chile branch in
Jujuy. Neither of these two countries is a tax haven. Enel
Chile contributes to the development of local economies
through the payment of taxes.
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Customer Concentration by Business Segment
Generation Segment
Enel Chile has three clients whose sales in 2023 individually
concentrated 10% or more of the consolidated ordinary
income of the generation segment. These clients
are Compañía General de Electricidad S.A. and Enel
Distribución Chile S.A., Generadora Metropolitana and
Enel Distribución Chile S.A (subsidiary of Enel Chile, which
is part of the distribution and networks segment).
Distribution and Grid Segment
Enel Chile's customer portfolio in this business segment
is sufficiently fragmented that none exceeds 10% of
consolidated ordinary revenues.
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Generators
Spot Administered
by CEN
Transmission
Companies
Distributors
Unregulated
Customers
Regulated
Customers
Other
Generators
Negotiated
Prices
Negotiated
Prices
Bid
Prices
Electricity flow
Electricity flow
Marginal
Cost
Regulated
Prices
Spot Market
Contracts Market
ELECTRICITY
INDUSTRY STRUCTURE
AND REGULATORY
FRAMEWORK
Overview and Industry Structure
In the Chilean Electricity Market, there are four categories
of local agents: generators, transmitters, distributors, and
large customers. The industry’s three business segments—
generation, transmission, and distribution—must operate
in an interconnected and coordinated manner to supply
electricity to final customers at minimum cost and within
the standards of quality and security required by the
industry’s rules and regulations.
The Chilean electricity sector is physically divided into
three main networks: the SEN which extends from Arica in
northern Chile to Chiloé in southern Chile, and two smaller
isolated networks (Aysén and Magallanes).
The following chart shows the relationships among the
different agents in the Chilean electricity market:
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Generation
Generators supply electricity to end customers using
lines and substations that belong to transmission and
distribution companies. The generation segment operates
competitively, and generators may sell their energy to
unregulated customers and other generation companies
through contracts at freely negotiated prices. They may
also sell to distribution companies to supply regulated
customers through contracts governed by bids defined by
the authorities.
Transmission
Transmission companies own lines and substations with
a voltage higher than 23 kV flowing from generators’
production points to the centers of consumption or
distribution, charging a regulated toll for the use of
their installations. The transmission segment is a natural
monopoly subject to special industry regulations, including
antitrust legislation. Tariffs are regulated, and access
must be open and guaranteed under non-discriminatory
conditions.
Distribution
Distribution
companies
supply
electricity
to
end
customers using electricity infrastructure lower than 23
kV. The distribution segment is a natural monopoly subject
to special industry regulations as well, including antitrust
legislation. The electricity network is open access, and
distribution tariffs are regulated. Distribution companies
must provide electricity to regulated customers within
their concession area at regulated prices. According to
Law No. 21,914 (the “Distribution Tariff Law”), distribution
companies may not enter into new electricity supply
contracts with unregulated customers.
Concessions
Hydroelectric generation requires a concession granted by
the authorities to operate for an indefinite time; however,
other types of technologies for generating electricity do
not require concessions. The Chilean Ministry of Energy
grants distribution concessions for undefined periods
and the right to use public areas for building distribution
lines. Distribution companies must supply electricity to all
customers who request service within their concession
area. A concession may be declared expired if the quality
of service does not meet specific minimum standards
established by the regulator.
Customers
Customers are classified according to their demand as
regulated or unregulated. Regulated customers are those
with a connected capacity of up to 5,000 kW. Unregulated
customers are those with a connected capacity of more
than 5,000 kW. Customers with a connected capacity
between 500 kW and 5,000 kW may choose to be
regulated or unregulated, subject to the respective price
regime, but must remain in the selected category for at
least four years.
Limits to Integration and Concentration
The antitrust legislation established in Decree with the
Force of Law (Decreto con Fuerza de Ley) (“DFL”) 211
(modified in 2016 by Law No. 20,945) and the regulations
applicable to the electricity industry stated in DFL 4
(“Electricity Law”) and Law No. 20,018 (Ley General de
Servicios Eléctricos) have established the criteria to avoid
economic concentration and abusive market practices
in Chile. Companies can participate in different market
segments (generation, distribution, transmission) to the
extent that they are appropriately separated, both from an
accounting and corporate perspective. Companies must
also comply with the conditions provided in Resolution No.
667/2002 and the Distribution Tariff Law, discussed below.
The transmission sector is subject to the most
significant restrictions, mainly because of its open
access requirements. The Electricity Law establishes that
companies that own the National Transmission System
(“STN” in its Spanish acronym) may not engage in activities
within the generation or distribution segment. Owners
of the STN must be limited liability stock corporations.
Individual interests in the STN by companies operating
in another electricity or unregulated customer segment
cannot exceed, directly or indirectly, 8% of the total
investment value of the STN. Furthermore, the aggregate
interest of all such agents in the STN cannot exceed 40%
of the total investment value.
According to the Electricity Law, there are no restrictions
on market concentration for generation and distribution
activities. However, Chilean antitrust authorities have
imposed specific measures to increase transparency
associated with our subsidiaries and us through Resolution
No. 667/2002 issued by the Chilean government antitrust
agency, the Tribunal de la Libre Competencia.
Resolution No. 667/2002 states that Enel Chile must
keep its generation and distribution segments separate
and manage them as independent business units; Enel
Chile, Enel Generación Chile, and Enel Distribución Chile
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are registered with the CMF and must remain subject to
the regulatory authority of the CMF and comply with the
regulations applicable to publicly held limited liability stock
corporations, even if any of these companies should lose
such designation. The members of the Boards of Directors
of these companies must be elected from different and
independent groups, and the external auditors of the
companies must be different for local statutory purposes.
Electricity Markets
Generation
companies
may
sell
to
distribution
companies, unregulated end customers, or other
generation companies through contracts. Generation
companies satisfy their contractual sales requirements
with dispatched electricity, whether produced by them
or purchased from other generation companies in the
spot market or through contracts. They balance their
contractual obligations with their dispatch by trading
deficit and surplus electricity at the spot market price set
hourly by the CEN, which is based on the lowest production
cost of the last kWh dispatched.
Customers subject to the unregulated price regime
may negotiate their electricity supply with any supplier;
however, they must pay a regulated toll for using the
transmission
and
distribution
network.
Regulated
customers with residential generation units can sell
their surpluses to a distribution company under certain
conditions (net billing regulation). Since November 2018,
Law No. 21,118 has permitted customers with a connected
capacity of up to 300 kW to sell their surpluses on an
aggregated or individual basis.
Water Rights
Companies in Chile must pay an annual fee for unused
water rights. License fees already paid may be recovered
through monthly tax credits, commencing on the project’s
start-up date associated with the water rights. The
maximum license fees that may be recovered are those
paid during the eight years before the start-up date.
Electricity Sector Laws
Since its inception, private sector companies have
developed the Chilean electricity industry; however,
nationalization by the government was conducted
between 1970 and 1973. During the 1980s, the Electricity
Law reorganized the sector, allowing for the private
sector’s renewed participation. Law No. 20,018 and its
modifications currently govern the industry under the
Electricity Law, the reformed DFL 4, published in 2006 by
the Ministry of Economy, and its respective regulations
included in Decreto Supremo (D.S.) No. 327/1998.
Non-Conventional Renewable Energy (“NCRE”) has been
promoted in Chile since 2008. NCRE refers to electricity
from wind, solar, geothermal, biomass, ocean (movement
of tides, waves, currents, and the ocean’s thermal gradient),
and mini-hydropower plants with a capacity under 20
MW. Law No. 20,698 (2013) established a mandatory 20%
share of NCRE source as a percentage of total contracted
electricity sales by 2025, except for contracts signed
between 2007 and 2013, which have a 10% target by 2024.
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Information
6 Main indicators
7 Annexes
Principal Regulatory Authorities
Responsible for setting policy
The Ministry of Energy is the leading regulatory authority
in the Chilean energy industry. It promulgates and
coordinates plans, policies, and standards for the sector’s
proper operation and the development of the industry in
Chile.
Responsible for Regulation and
Supervisory Body
The CNE (Comisión Nacional de Energía) is the entity in
charge of approving the annual transmission expansion
plans, managing the indicative plan for the construction
of new electricity generation facilities, and proposing
regulated tariffs to the Ministry of Energy for approval.
The Superintendence of Electricity and Fuels inspects
and oversees compliance with laws, rules, regulations,
and technical norms applicable to the generation,
transmission, and distribution of electricity, as well as
liquid fuels and gas, and reports to the Ministry of Energy.
System Operator
Then CEN (Coordinador Eléctrico Nacional) is a centralized
dispatch center that coordinates the SEN’s operations
with an approach that minimizes costs while monitoring
the quality of the generation and transmission companies’
service. The CEN calculates market balances (energy
injections and withdrawals), determines the transfers
among generation companies, and calculates the hourly
marginal cost, the price at which energy transfers are
made in the spot market. The CEN does not, however,
calculate the rates of generation capacity. It is the CNE
that calculates such prices.
The CEN schedules the energy production of each
generating company considering their marginal costs,
the maximum capacity a generator may supply to the
system at certain peak hours, statistical information,
accounting for maintenance time, and arid conditions for
hydroelectric power plants. However, it does not take into
account the power plants’ contribution to the security of
the entire system.
Remuneration and Tariffs
Remuneration for generators
To reduce operating costs, the CEN applies an efficiency
criterion in which the lowest cost producer available is
usually required to satisfy demand at any moment in time.
As a result, at any specific level of demand, the appropriate
supply is provided at the lowest possible production cost,
also known as the marginal cost, available in the system.
This marginal cost on an hourly basis is the price at which
generators trade energy in the spot market, using both
their injections (sales) and their withdrawals (purchases)
to balance their contracted customer sales with their
production determined by the CEN.
Transmission Tariffs
The remuneration of existing national and zonal
transmission installations is determined by a tariff-setting
process conducted every four years regulated by Law No.
20,936. This process determines the annual transmission
value that considers efficient operation and maintenance
costs and a yearly valuation of investments based on a
discount rate determined by the authorities every four
years (minimum 7% after-tax) and the installations’ useful
life.
The regulation currently in force states that transmission
remuneration is the sum of tariff revenue and the usage
charge revenue received for the transmission system,
defined as $/kWh by the CNE. Revenues are calculated
on a semi-annual basis. The tariff-setting process for the
2020-2023 period was concluded in February 2023 and
has been effective retrospectively since January 1, 2020.
In connection with the tariff-setting process for the 2024-
2027 period, the CNE published the preliminary technical
report for the classification of transmission installations.
The tariff-setting process for the 2024-2027 period is
expected to be completed in 2024.
Distribution Tariffs
The Distribution Tariff Law established new limits on returns
on investments for distribution companies. Tariffs charged
by distribution companies to regulated end customers
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Integrated Annual Report Enel Chile 2023
are set every four years. Tariffs are determined by the sum
of the cost of electricity purchased by the distribution
company, a transmission charge, and the value-added
from the distribution of electricity (“VAD”), allowing
distribution companies to recover their investment and
operating costs, including a legally mandated return on
investment. The transmission charge reflects the price
paid for electricity transmission and transformation. The
law also prohibits distribution companies from operating
in other sectors or industries as of 2021.
The VAD is based on a so-called “efficient model
company” within a typical distribution area (“TDA”). The
CNE determines the VAD of each TDA. With the resulting
VAD, preliminary tariffs are tested to ensure an industry
aggregate rate of return between 6% and 8%. However,
the Distribution Tariff Law establishes that the after-tax
rate of return for each distributor must be between three
percentage points below and two percentage points above
the rate of return calculated by the CNE. The real return
on investment for a distribution company depends on its
actual performance relative to the standards chosen by
the CNE for the efficient model company. The tariff system
allows for a higher return to distribution companies that
are more efficient than the model company.
Electricity
regulation
establishes
tariff
equality
mechanisms for electrical services. Law No. 20,928 states
that the maximum tariff that distribution companies may
charge residential customers must not exceed the average
national tariff by more than 10%. The differences arising
from applying this mechanism are progressively absorbed
by the remaining customers subject to regulated prices,
under the mentioned average, except for those residential
users whose monthly average consumption of energy in
the prior calendar year is less than or equal to 200 kWh.
The tariff setting process for 2016-2020 concluded in
August 2017 and had been effective, retroactively, from
November 4, 2016. In September 2018, there was an
extraordinary tariff update process, which was non-
retroactive and will be in effect until the tariff-setting
process for the 2020-2024 period is completed. The 2020-
2024 process remains ongoing and is expected to be
concluded in 2024. However, due to the social unrest that
began in October 2019, Law No. 21,185 fixed distribution
tariffs for 2020 and 2021, which created a temporary
electricity price stabilization mechanism for customers
subject to tariff regulation. In July 2022, the Chilean
Congress passed Law No. 21,472, which complements
Law No. 21,185 by creating a new stabilization fund
program and establishing a new transitory mechanism
for stabilizing customers’ electricity prices under the
regulated price system. The purpose of the mechanism
is to limit the increase in electricity bills for regulated
customers during 2022 and to allow such increases to
occur gradually over the next 10 years. The tariff-setting
process for the 2024-2028 period began in 2023 and is
expected to be completed in 2025.
Environmental Regulations
Chile has numerous laws, regulations, decrees, and
municipal
ordinances
that
address
environmental
considerations. Among them are regulations relating to
waste disposal (including the discharge of liquid industrial
wastes), the establishment of industries in areas that may
affect public health, and the protection of water for human
consumption.
Environmental Law No. 19,300 was enacted in 1994 and
has been amended by several regulations, including the
Environmental Impact Assessment System Rule issued in
1997 and modified in 2001. This law establishes a general
framework of regulation of the right to live in a pollution-
free environment, the protection of the environment,
the preservation of nature, and environmental heritage
conservation. This law requires companies to conduct an
environmental impact study and a declaration of future
generation or transmission projects.
On September 10, 2014, Law No. 20,780 was enacted and
included fees for the emission of PM, NOx, SO2, and CO2
into the atmosphere. For CO2 emissions, the fee is US$5
per ton (not applicable to renewable biomass generation).
PM, NOx, and SO2 emissions are charged the equivalent
of US$0.10 per ton, multiplied by the result of a formula
based on the population of the municipality where the
generation power plant is located, which is an additional
fee of US$0.90 per ton of PM emissions, US$0.01 per ton
of SO2 emissions, and US$0.025 per ton of NOx emissions.
This tax became effective in 2018, with the amount due
calculated based on the previous year’s emissions. All
thermal power plants of Enel Generación Chile have
established methodologies to measure emissions and pay
related taxes in line with the Chilean Superintendence of
Environment requirements.
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On June 13, 2022, Law No. 21,455 (the “Climate Change
Framework Law”) was enacted. The law establishes that
Chile be carbon neutral and climate resilient by 2050,
which could be moved up if circumstances allow for it.
To address climate change, the law establishes concrete
actions for 17 executive departments as well as powers and
obligations at regional and local levels. It also establishes
the Long-Term Climate Strategy, a roadmap detailing how
Chile will fulfill its commitments through concrete actions
over a 30-year period and requires the preparation of
sectoral mitigation and adaptation plans with concrete
measures and actions to meet these goals.
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Integrated Annual Report Enel Chile 2023
Net financial debt
Millions of US$
2023
2022
Variation
Gross Debt
4,408
4,660
(5%)
Cash
642
1,023
(37%)
Total net financial debt
3,765
3,637
4%
US$ 3,765 millions
US$ 3,637 millions
in 2022
US$ 994 millions
in 2023
Sustainable
Financing
About the total debt
23%
Net Financial
Debt
3.0 times
2.6 times
in 2022
Financial Debt
Net/EBITDA
INVESTMENTS
AND FINANCIAL
SITUATION
Analysis of the structure and financial situation of Enel Chile
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Gross debt SDG-linked
(Billion of USD )
Proporion of sustainable
finance
1.0
23%
0.9
27%
2023
2025
Net financial debt was US$3,765 million as of December
31, 2023, increasing by US$128 million year-over-year. This
variation is mainly explained by new intercompany and
third-party debt totaling US$300 million, a US$30 million
increase in lease liabilities (IFRS16), and a US$380 million
increase due to cash reduction, offset by a US$583 million
debt amortizations.
Enel Chile's consolidated gross financial debt reached
US$4,408 million with an average life of six years. This
debt is mainly made up of:
• US$1,344 million in debts with related companies.
• US$1,000 million corresponding to the Yankee Bond,
valid for ten years since June 12, 2018.
• US$263 million corresponding to EGP Chile's debt
consolidated in the Enel Chile group since April 2018.
• International bonds and local bonds in Enel Generación
Chile.
Enel Chile's available liquidity is broken down into the
following factors:
• Cash and cash equivalent: US$642 million
• Available committed credit lines: US$729 million,
of which US$640 million correspond to available
committed credit lines between related companies.
The average cost of debt rose from 4.1% in December
2022 to 4.9% in December 2023.
Sustainable Finance
Sustainable finance is a crucial element for value creation
At Enel Chile. The sustainable financing arranged in 2023
has enabled the Company to reach SDG-Linked debt of
US$994 million at the end of the year, both credit lines and
loans, corresponding to 23% of total debt.
The Group's financial instruments and transactions related
to SDG-linked debts have an interest rate associated with
compliance with an indicator for reducing greenhouse gas
emissions (CO2).
In March 2024, once the review process of specific CO2
emissions related to scope 1 of electricity generation
was completed, these amounted to 128 gCO2/KWh,
an amount higher than the scope 1 emissions target
announced in 2020 of <100 gCO2/KWh by the end of 2023,
an indicator used in some of the Group's debts. The 28%
increase compared to the planned amount is largely due
to exogenous factors, which caused increased thermal
dispatch from the Company's gas plants, as required by
the Electrical Coordinator. This greater thermal dispatch
was caused, among others, by the following factors: i)
extreme drought that affected the country until the first
half of 2023; ii) delay in the construction and start-up of
numerous renewable energy projects in the country, as
an indirect consequence of the restrictions imposed by
the COVID-19 pandemic; iii) The war in Ukraine, which
drove an increase in fuel prices and in particular the
API2 index of coal, and iv) failures and occurrence of
external factors that prevented the normal operation of
important thermoelectric plants of other market players.
Failure to reach the level of emissions indicated above will
increase the interest rate by 5 basis points on the SDG-
Link financing that includes said target, these financing
correspond to US$350 million in loans in force to date.
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January
Enel Chile S.A. prepaid the US$290 million revolving committed credit facility denominated in U.S. dollars taken with Enel
Finance International N.V. in April 2021. As of December 31, 2023, the line was 100% available.
April
Enel Chile S.A. temporarily transferred in full a US$290 million revolving committed credit line denominated in U.S. dollars
taken with Enel Finance International N.V., with a variable interest rate of Libor 1M, 3M, 6M plus a 1% margin per annum,
later renewed at the SOFR interest rate plus a 1.11% margin per annum and prepaid in October 2023. As of December 31,
2023, the line was 100% available.
Enel Chile S.A. temporarily transferred in full a US$50 million revolving committed credit facility denominated in U.S. dollars
taken with Enel Finance International N.V. in June 2019, with a variable interest rate of LIBOR 1M, 3M, 6M plus a 0.9% margin
per annum, which was later renewed at the SOFR interest rate plus a 1.014% margin per annum and prepaid in November
2023. As of December 31, 2023, the line was 100% available.
Enel Chile temporarily transferred a US$100 million revolving committed credit line denominated in U.S. dollars taken with
BBVA and Mizuho, with a variable interest rate of LIBOR 1M, 3M, 6M plus a 0.9% margin per annum, which was later renewed
at the SOFR interest rate plus a 1.014% margin per annum. As of December 31, 2023, the line was drawn.
May
Enel Chile S.A. temporarily transferred in full a US$200 million revolving committed credit line denominated in U.S. dollars
contracted with Enel Finance International N.V. in September 2021, with a variable interest rate of LIBOR 1M, 3M, 6M plus a
1.15% margin, later renewed at the SOFR interest rate plus a 1.26% margin per annum and prepaid in November 2023. As
of December 31, 2023, the line was 100% available.
Enel Finance International N.V. granted Enel Chile S.A. a US$100 million dollar-denominated revolving committed credit
facility, with a variable interest rate SOFR 1M, 3M or 6M plus a 1.25% margin per annum, maturing on May 31, 2024.
June
Enel Finance International N.V. granted Enel Chile S.A. a US$320 million dollar-denominated revolving committed credit
facility, with a variable interest rate SOFR 1M or 3M plus a 0.75% margin per annum, maturing on September 30, 2023,
which was paid that month. As of December 31, the line was closed.
July
Enel Chile S.A. repaid a US$200 million dollar-denominated loan granted by Enel Finance International N.V. in January 2020,
with an annual rate of 2.6%, in line with the loan's natural maturity (July 3, 2023).
The European Investment Bank granted Enel Chile S.A. an additional US$200 million dollar-denominated SDG-Linked
financing extension. This financing guarantees 20% from Enel SpA and 80% from SACE, with scheduled amortizations. The
first disbursement for US$98.6 million was made in July, with a weighted fixed interest rate of 5.38%, with a 15-year term
amortizable from 2027 and maturing on July 21, 2038.
Enel Chile S.A. temporarily transferred in full a US$100 million revolving committed credit facility denominated in U.S.
dollars taken with Enel Finance International N.V. in May 2023, with a variable interest rate of SOFR 1M, 3M, 6M plus a 1.25%
margin per annum, and prepaid in September 2023. As of December 31, 2023, the line was 100% available.
Enel Chile S.A. temporarily transferred in full a US$320 million revolving committed credit facility denominated in U.S.
dollars taken with Enel Finance International N.V. in June 2023, with a variable interest rate of SOFR 1M or 3M plus a 0.75%
margin per annum and prepaid in September 2023. As of December 31, 2023, the line was closed.
September
Enel Chile S.A. prepaid the US$100 million revolving committed credit line denominated in U.S. dollars taken with Enel
Finance International N.V., drawn in July 2023. As of December 31, 2023, the line was 100% available.
Enel Chile S.A. prepaid the US$320 million revolving committed credit facility denominated in U.S. dollars taken with Enel
Finance International N.V., drawn in July 2023. As of December 31, 2023, the line was closed.
October
Enel Chile S.A. prepaid the US$290 million revolving committed credit facility denominated in U.S. dollars taken with Enel
Finance International N.V. As of December 31, 2023, the line was 100% available.
Most Important Operations in 2023
The US dollar LIBOR ("Libor") rate was discontinued on June
30, 2023, and was replaced by the SOFR reference rate. In
June 2023, the Enel Chile Group successfully completed
the Libor-SOFR transition of 100% of its financial and
derivative contracts, in line with market standards.
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November
Enel Chile S.A. prepaid the US$200 million revolving committed credit facility denominated in U.S. dollars taken with Enel
Finance International N.V., drawn in May 2023. As of December 31, 2023, the line was 100% available.
Enel Chile S.A. prepaid the US$50 million revolving committed credit facility denominated in U.S. dollars taken with Enel
Finance International N.V., drawn in April 2023. As of December 31, 2023, the line was 100% available.
Enel Chile S.A. prepaid the US$50 million revolving committed credit line denominated in U.S. dollars taken with SMBC in
October 2021 and drawn in November of the same year. As of December 31, 2023, the line was 100% available.
December
Enel Chile S.A. made the second disbursement associated with the SDG-Linked financing with the European Investment
Bank, denominated in U.S. dollars for a total of US$101.4 million, with a weighted fixed interest rate of 5.56%, with a 15-year
term amortizable from 2027, and maturing on December 20, 2038.
Hedging Policy
To mitigate the financial risks associated with the exchange
rate and interest rate variations, Enel Chile has established
policies and procedures to protect its financial statements
against the volatility of these variables.
Exchange Rate
The Enel Chile Group's exchange rate hedging policy
is based on cash flows. It aims to balance flows indexed
to foreign currency (US$) and the levels of assets and
liabilities generated by flows in that currency. The objective
is to minimize the exposure of cash flows and financial
statements to the risk of exchange rate variations.
At the end of 2023, 93% of consolidated financial debt
was denominated in dollars or converted into dollars
through derivatives.
Interest Rate
The Enel Chile Group's interest rate hedging policy consists
of maintaining a balance in the debt structure, which allows
the minimization of financial costs with reduced volatility
in the income statement. Depending on the Company's
estimates and debt structure targets, hedging operations
are conducted based on market conditions.
At the end of December 2023, the consolidated level of
fixed debt over the total financial debt was 88%.
Risk Rating
The main risk rating developments that took place in 2023,
are highlighted below:
Feller Rate
Enel Chile has successfully maintained the risk rating
the Feller Rate Clasificadora de Riesgos agency granted
in 2017. The Company was assigned an "AA" rating on a
national scale, reported on July 3, 2023. On this occasion,
Feller Rate maintained a stable outlook, taking into
consideration various factors such as the hydrological
situation, the rise in international fuel prices, the
Company's financial structure, its business strategy, the
successful implementation of its investment plan, and the
disposal of non-strategic assets.
Fitch Ratings
Enel Chile's national rating was confirmed at "AA+(cl)" by
Fitch Ratings on January 13, 2023. The international rating
was modified to "BBB+" from "A-," and both ratings were
given a Stable outlook. The agency also confirmed the
shares' rating at "First Class Level 1(cl)".
Fitch Ratings confirmed Enel Chile's international and
national ratings on January 08, 2024. The ratings were given
a Stable outlook, with a "BBB+" rating for the international
market and an "AA+(cl)" rating for the national market. The
agency also confirmed the shares' rating at "First Class
Level 1(cl)".
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Integrated Annual Report Enel Chile 2023
International Rating
Enel Chile
S&P
Fitch Ratings(1)
Corporate
BBB / stable
BBB+ / stable
Local rating
Enel Chile
Feller Rate
Fitch Ratings(1)
Shares
1° class, level 2
1° class, level 1
Bonds
AA / stable
AA+ / stable
(1) In 2023, Fitch Ratings rated Enel Chile on an international scale at "BBB+" with a Stable outlook and on a local scale at "AA+" with a Stable
outlook.
Standard & Poor’s
On August 14, 2023, Standard & Poor's confirmed Enel
Chile S.A.'s international risk rating at "BBB" with a Stable
outlook.
The Company's ratings are based on Enel Chile S.A.'s
diversified
portfolio
of
assets,
credit
parameters,
commercial policy, adequate debt structure investment
plan, and liquidity profile.
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Water
People and territory
Energy and emissions
Materials
Biodiversity
Comprehensive management
of the main impacts generated
by business activities
Asset life cycle and value chain
Business
Development
Operation and
Maintenance
Dismantling
Sustainable
Design & Construction Site
Sustainable
Plant
Sustainable
Decomm
Engineering and
Construction
Tools for the sustainability of
projects from their design
Enhance the
sustainable
perormance of assets
in operation and their
creation of value for
the territory where
they are insered
Manage closure and
sustainable
reconversion of plants
Main Investments
Incorporating sustainability into projects and plants
Tackling climate change requires solid short-term actions.
Enel Chile promotes the development of renewable
energies in accordance with its 2024-2026 Strategic Plan.
The Company applies management models in the different
stages of the life cycle of its plants, from their design to
their closure, allowing comprehensive management of their
impacts according to their characteristics and context.
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Integrated Annual Report Enel Chile 2023
IN BILLIONS OF Ch$
2024-2026(2)
2023
2022
Investment (1)
1,845
637
916
(1) CAPEX figures represent actual payments for each year, except forward-looking statements.
(2) The Company's Board of Directors approved the investment plan on November 23, 2023, totaling $2.3 billion. Approximate values in Chilean
pesos.
Relevant investments associated with the strategic plan
The Company's Strategic Plan considers a substantial US$
2.3 billion investment from 2024 to 2026. Our objective
is to maintain our position as industry frontrunners in the
electricity sector, prioritizing the expansion of renewable
energy sources, embracing digitalization, and driving
innovation in clean energy applications. This is expected
to significantly boost the renewable installed capacity
by around 1.5 GW by 2026, compared to the renewable
installed capacity in 2022.
Enel Chile's investment plan is designed to be flexible
enough to take advantage of any potential development
opportunities. This approach allows the Company to
optimize reaching strategic objectives and maximize
profitability for its shareholders. Our investment priorities
in the generation and distribution businesses focus on
developing environmentally and socially responsible
projects. We conduct thorough studies for both new
projects and existing facilities to guarantee reliable energy
supply levels.
Enel Chile coordinates the Group's financing strategy to
achieve optimal debt management at the consolidated
level. Subsidiaries create their capital investment plans,
funded through internal funds or intercompany financing.
One of our Company's objectives is to emphasize
investments that produce lasting economic and social
benefits.
While the financial requirements of these investments have
been studied as part of the Company's budget process,
no particular financing structure has been committed, and
investments will depend on market conditions when cash
flow is required.
The table below shows the capital expenditures expected
to be incurred between 2024 and 2026 and those of the
Enel Chile Group in 2023 and 2022.
Generation Segment
Current
investment
priorities
include
developing
hydropower and non-conventional renewable energy
(NCRE) projects. Enel Chile's principal investments in the
generation segment will be focused on reaching 9.9 GW
by 2026, of which 7.8 GW will be renewable capacity, for
which there is a portfolio of projects under construction
and development as detailed below:
Solar power plants
Don Humberto (81MW of power) and PMDG (110MW of
energy).
Wind power plants
Ovejera Sur (150MW of power) and others (120MW of
power).
Run-of-the-river hydroelectric power plant
Los Cóndores (153MW of power).
BESS
Storage units as a complement to projects under
construction in El Manzano (67MW) and La Cabaña
(69MW), under development as Don Humberto (+67MW),
and in operation as Valle del Sol (+185MW), Sol de Lila
(+185MW), Azabache (+69MW), Guanchoi (+52MW) and
others (62MW). As of December 2023, 34 MW of La
Cabaña’s BESS have been connected.
Relevant investments in 2023, 2022 and 2021
Capital expenditures in the last three years were mainly
related to:
1. The 153MW Los Cóndores project.
2. Expansion of installed capacity to reach 9.9 GW net by
the end of 2026, which considers the 1.5 GW growth
compared to the end of 2022 and 1.3 GW compared to
the end of 2023.
3. Maintenance of existing installed capacity.
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The capital investments in the Los Cóndores project
and the NCRE projects (solar, wind, and BESS) have
been financed with funds generated by the Company or
financial debt suitable to the Company's requirements.
Distribution and Grids Segment
In 2023, Enel Distribución Chile and its subsidiary made
investments totaling Ch$101 billion, mainly aimed at
meeting organic customer growth, service quality,
security, and information systems, of which Ch$26 billion
were used to meet maintenance needs, Ch$ 11 billion in
growth investments and Ch$64 billion for connectivity
activities.
In 2023, a total of Ch$ 56 billion was invested in adapting
Medium Voltage (MV) and Low Voltage (LV) grids, enabling
the connection of new residential customers, large
customers, and real estate projects. Ch$ 3.7 billion was also
invested in grid relocation at the request of municipalities
and for new road works.
Ch$ 5.6 billion was invested in improving supply quality
reinforcing feeders according to a quality plan in MV and
LV. In addition, Ch$ 4 billion was invested to build and
strengthen new feeders to increase distribution capacity.
Work was carried out on the automation of the MV network
by incorporating 52 new remote-controlled equipment
to improve flexibility between feeders and minimize the
impact of events that affect the continuity of service.
Nearly Ch$ 12.8 billion was invested in technical and
financial systems, focusing on process digitalization.
Nearly Ch$ 9.5 billion was used to finance corrective grid
maintenance works associated with work on transmission
line
installations,
interconnection
substations,
and
power substations. Several actions to improve network
technologies were also funded.
Ch$ 2.2 billion was invested in legal adaptations to
standardize grids and substations to comply with current
legislation.
Ch$ 3.8 billion was invested in the Smart Meters project,
which is characterized by its strong focus on installing
concentrators.
Investments totaling Ch$ 3.8 billion were made in anti-
theft measures, such as the shielding of the networks
through the installation of Ananda and Tortugas boxes,
technical measures, and grid reinforcements.
Principal Projects
Projects that reached commercial
operation in 2023
EGP Chile
Campos del Sol I Solar Project
The Campos del Sol I solar project is in the Atacama
Region in northern Chile, approximately 60 km northeast
of Copiapó. The PV plant has 375 MW of installed capacity
and consists of 974,400 crystalline bifacial PV modules
with a solar tracking system. The connection point
includes two main transformers through the Carrera Pinto
substation owned by Transelec, through a 7.5 km, 220 kV
transmission line.
The total investment was approximately US$426 million.
Construction began in 2019, and the project reached
commercial operation during the first quarter of 2023.
Finis Terrae Solar Extension Project
The Finis Terrae extension project is a PV solar power plant
in María Elena in the Antofagasta Region in northern Chile
and has a net installed capacity of 126 MW.
The project has strong operational synergies with EGP
Chile’s existing Finis Terrae power plant and uses the same
transmission infrastructure. A new bay unit and new power
transformer were installed in the current substation for
interconnection purposes.
The total investment was approximately US$130 million.
Construction began in 2020, and the project reached
commercial operation during the third quarter of 2023.
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Finis Terrae III Solar Project
The Finis Terrae III solar project is in the Antofagasta Region
of Chile. It has a net installed capacity of 18 MW and is an
extension of the Finis Terrae Solar Extension project.
The total investment was approximately US$9 million.
Construction began in 2021, and the project reached
commercial operation during the third quarter of 2023.
Guanchoi Solar Project (f.k.a. Campos del Sol II)
The Guanchoi solar project is in Copiapó in the Atacama
Region and has a net installed capacity of 398 MW.
Guanchoi is a PV solar power plant consisting of 893,508
crystalline bifacial PV modules with a solar tracking system.
The project site occupies approximately 1,000 hectares.
The project connects to the Bella Mónica step-up
substation, located between Campos del Sol I and
Guanchoi. Bella Mónica is located 8 km from the Illapa
substation, owned by Celeo Redes Chile Ltda., and is
connected through a 220 kV transmission line.
The total investment was approximately US$330 million.
Construction began in 2021, and the project reached
commercial operation during the third quarter of 2023.
Renaico II Wind Project
The Renaico II wind project is in the Araucanía Region in
southern Chile. It consists of a 144 MW power plant with
two wind farms: (i) the Las Viñas project, including a 58.5
MW wind power plant built by EGP Chile; and (ii) the Puelche
project, which consists of an 85.5 MW wind power plant
developed independently by Pacific Energy. The Puelche
project was acquired in its entirety by EGP Chile.
The project consists of 32 wind turbine generators and is
interconnected to the SEN through the existing Renaico I
220 kV substation. A new bay was installed in the substation
with a main transformer of 165 MVA. The Renaico II wind
project has potential synergies with EGP Chile’s operational
Renaico I wind project and will use existing infrastructure
such as a substation and a transmission line.
The total investment was approximately US$208 million.
Construction began in 2020, and the project reached
commercial operation during the third quarter of 2023.
Valle del Sol Solar Project
The Valle del Sol PV solar project is in the Atacama Desert,
approximately 100 km west of Calama in the Antofagasta
Region in northern Chile.
It is a greenfield solar project with a net installed capacity
of 163 MW that consists of 406,980 monocrystalline
bifacial PV modules with a solar tracking system. The
project site occupies 320 hectares. Valle del Sol connects
to the Miraje substation through a new 220 kV bay. The
connection solution includes a step-up substation, one
main transformer of 130/160 MVA (33/220 kV), and an
interconnection 10 km, 220 kV transmission line.
The total investment was approximately US$145 million.
Construction began in 2021, and the project reached
commercial operation during the second quarter of 2023.
Projects that Reached Additional Capacity
in 2023
EGP Chile
El Manzano Solar Project and BESS
The El Manzano solar project is located 30 km north of
Santiago in the Metropolitan Region. It is a greenfield
solar project with a net installed capacity of 99 MW that
consists of 162,000 monocrystalline bifacial PV modules
as well as a solar tracking system. The power plant also
includes a BESS with a storage capacity of 67 MW. The
project site occupies 185 hectares. El Manzano connects
to the El Manzano substation, owned by Enel Distribución
Chile, through a 6.3 km medium-voltage transmission line.
The total approved investment is approximately US$149
million, of which approximately US$124 million had been
incurred as of December 31, 2023. Construction on the
project began during first quarter of 2023, and the PV
plant was connected to the grid during the third quarter of
2023, adding 99 MW of net installed capacity. The PV plant
reached commercial operation during the first quarter
of 2024, and we expect the BESS to reach commercial
operation in 2024.
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La Cabaña Wind Project and BESS
The La Cabaña wind project is in the Araucanía Region in
southern Chile and has a net installed capacity of 106 MW
and includes a BESS with a storage capacity of 34 MW.
The project will connect to the national system through
the Renaico wind farm substation.
The total approved investment is approximately US$184
million, of which approximately US$179 million had been
incurred as of December 31, 2023. Construction began
in 2022, and the plant was connected to the grid during
the third quarter of 2023, adding 106 MW of net installed
capacity. The wind project reached commercial operation
during the first quarter of 2024, and we expect the BESS to
reach commercial operation in 2024.
Las Salinas Solar Project (f.k.a. Sierra Gorda Solar Project)
The Las Salinas solar project is in Sierra Gorda, near
Calama, in the Antofagasta Region in northern Chile. The
PV solar power plant has a net installed capacity of 205
MW. The site occupies 700 hectares, with a perimeter of
approximately 28 km.
It is a greenfield project inside the existing Sierra Gorda
wind farm owned by EGP Chile. The project has five
principal areas for PV modules inside the wind farm and an
independent space for the medium voltage/high voltage
substation. It consists of 461,000 monocrystalline bifacial
PV modules with a solar tracking system. The project will
connect to the Centinela substation located 19 km from
the solar plant, in the Centinela substation owned by Red
Eléctrica Chile.
The total approved investment is approximately US$307
million, approximately all of which had been incurred as of
December 31, 2023. Construction began in 2021, and the
project was partially connected during the third quarter of
2023, adding 100 MW of net installed capacity to the grid.
We expect the project to reach full commercial operation
in 2024.
PMGD Solar Projects
We continue to expand our portfolio of PMGD solar plants
in central Chile. Our current PMGD portfolio consists of
17 projects, of which eight have reached commercial
operation, and nine have reached additional capacity,
totaling 83 MW of net installed capacity. We expect nine
projects to reach commercial operation in 2024.
The total approved investment for the nine projects
reaching additional capacity is approximately US$40
million, approximately all of which had been incurred as of
December 31, 2023.
Projects under Construction in 2023
EGP Chile
Don Humberto Solar Project and BESS
The Don Humberto solar project is in the Santiago
Metropolitan Region and has a net installed capacity of 80
MW, with a BESS with a storage capacity of 67 MW. The
land has been secured, and environmental approval has
been obtained.
The total approved investment is approximately US$138
million, of which approximately US$89 million had been
incurred as of December 31, 2023. Construction began
in 2023, and we expect the project to reach commercial
operation in 2024.
Enel Generación Chile
Los Cóndores Hydroelectric Project
The Los Cóndores project is in the Maule Region, in the
San Clemente area in central Chile. It consists of a 150
MW run-of-the-river hydroelectric power plant, with two
Pelton vertical water turbine units that will use water from
the Maule Lagoon reservoir through a pressure tunnel.
The power plant will be connected to SEN at the Ancoa
substation (220 kV) through an 87 km transmission line.
The total approved investment is approximately US$1.2
billion, approximately all of which had been incurred as
of December 31, 2023. We expect the project to reach
commercial operation in 2024.
Pangue Hydroelectric Repowering Project
The Pangue Hydroelectric Repowering project is being
carried out within our existing 467 MW power plant in
the Bio-Bio Region in central Chile. Pangue is a reservoir
hydroelectric power plant with two Francis vertical units
that use water from the Bio-Bio reservoir.
The project involves replacing one turbine (Unit 1) with a
modern design that will improve efficiency and reliability
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and require less maintenance. We expect the new turbine
to generate an additional 54 GWh/year of energy.
The total approved investment is approximately US$22
million, of which approximately US$1 million had been
incurred as of December 31, 2023. We expect works at
the project site to begin during the fourth quarter of 2025
and the project to reach additional capacity in 2026.
Rapel Hydroelectric Repowering Project
The Rapel Hydroelectric Repowering project is being
carried out within our existing 375 MW Rapel power plant
in the O’Higgins Region in central Chile. Rapel is a reservoir
hydroelectric power plant with five Francis vertical units
that use water from the Rapel River.
The project involves replacing two turbines (Unit 3 and
Unit 4) installed in 1968 with an efficiency rate of less than
85%. The turbines will have a new hydraulic design, offering
improved efficiency and a more extensive operation range.
We expect to increase our net installed capacity by 2 MW
(1 MW for each unit) and produce 67 GWh/year of new
energy.
The total approved investment is approximately US$12
million, of which approximately US$7 million had been
incurred as of December 31, 2023. We expect the project
to reach additional capacity and be completed in 2024.
San Isidro Power Plant Upgrade
The San Isidro power plant is a combined cycle plant in
the Valparaiso Region in central Chile. The power plant has
two combined-cycle units (Unit 1 and Unit 2), limited by
environmental authorizations to 740 MW of net installed
capacity. The project consists of upgrading the existing
gas turbine to improve the efficiency of both units
and recover 15 MW for each unit, within the approved
environmental permit.
The total approved investment is approximately US$26
million, of which approximately US$9 million had been
incurred as of December 31, 2023. The project began
in 2022, and Unit 2 reached additional capacity in 2023.
Work on Unit 1 was postponed, and we expect it to reach
additional capacity in 2025.
Projects under Development in 2023
The Company is currently evaluating the development
of the following projects, which we classify as “under
development.” The Company will decide whether to
proceed or not with each project depending on the
commercial and other opportunities foreseen in upcoming
years, as well as future tender prices for supplying
the energy requirements of the regulated market and
negotiations with existing or new unregulated customers.
EGP Chile
BESS Retrofit
The Company is developing plans to incorporate BESS
storage capacity into existing renewable generation plants,
including Azabache, Guachoi, Las Salinas (f.k.a. Sierra
Gorda), Sol de Lila, and Valle del Sol, with an aggregate
storage capacity of 457 MW. The BESS systems will be
installed at the existing project site of each plant and will
be connected to the grid using existing infrastructure.
Environmental approvals for each BESS are in process.
The total estimated investment is approximately US$660
million, none of which had been incurred as of December
31, 2023. We expect the projects to reach commercial
operation in 2025 and 2026.
Ovejera Sur Wind Project
The Ovejera Sur wind project is in La Unión in Los Ríos
Region. The project has a net installed capacity of 156 MW.
The project consists of 20 wind turbines with a net installed
capacity of approximately 7.8 MW each. The project will be
built on approximately 5,500 hectares and will connect to
the grid through the new Pichirropulli substation (220 kV).
The land has been secured, and environmental approval is
in process.
The total estimated investment is approximately US$220
million, none of which had been incurred as of December
31, 2023. We expect construction to begin in 2025 and the
project to reach commercial operation in 2026.
PMGD Solar Projects
We continue to develop new plants to expand our portfolio
of PMGD solar plants in central Chile. There are five PMGD
solar plants under development, with a total net installed
capacity of 110 MW.
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The total estimated investment is approximately US$90
million, of which approximately US$4 million had been
incurred as of December 31, 2023. We expect construction
to begin in 2024 and the projects to reach commercial
operation in 2025.
Cerro Los Loros Wind Project
The Cerro Los Loros wind farm is in Ovalle in the Coquimbo
Region. The project has a net installed capacity of 70 MW
and includes a BESS with a storage capacity of 30 MW. The
project consists of nine wind turbines with a net installed
capacity of approximately 7.8 MW each. The project will
be built on approximately 1,900 hectares and will connect
to the grid through the Talinay Oriente substation (220kV).
The land has been secured, and environmental approval is
in process.
The total estimated investment is approximately US$105
million, none of which had been incurred as of December
31, 2023. We expect construction to begin during the
first quarter of 2026 and the project to reach commercial
operation during the fourth quarter of 2026.
Investment and Financing Policy
The Ordinary Shareholders' Meeting, held on April 26, 2023, approved the Investment and Financing Policy for 2023 as
follows:
Investment Policy
Investment Areas
Enel Chile S.A. will make investments, as authorized by its
bylaws, that can enhance the commitment to sustainable
development through a business model that creates long-
term value and addresses business aspects in a sustainable,
innovative, and circular way. These investments will be
developed in the following areas:
i. Contributions for investment or setting up a subsidiary
or related companies whose activity is related,
connected, or linked to energy in any of its forms or
nature or to the supply of public services or whose
primary input is energy;
ii. Investments consisting of the acquisition, operation,
construction, leasing, administration, marketing, and
disposal of all types of real estate, either directly or
through subsidiary companies;
iii. Other investments in all types of financial assets,
securities, and transferable securities.
Maximum investment limits
The maximum investment limits for each investment area
will be as follows:
i. Investments in its subsidiaries in the electricity sector,
those necessary for these subsidiaries to comply with
their respective corporate objectives, with a maximum
amount equivalent to 50% of the Total Equity of Enel
Chile's consolidated balance sheet as of December 31,
2022;
ii. Investments in other subsidiaries outside the electricity
business, with a maximum amount equivalent to 50%
of the Total Equity of Enel Chile's consolidated balance
sheet as of December 31, 2022, provided that at least
50.1% of Enel Chile's total Consolidated Assets are in
the electricity sector.
Participation in the control of investment areas
For the control of the investment areas and following the
provisions of Enel Chile's corporate purpose, the following
procedure will be carried out whenever possible:
i. At the shareholder meetings of the subsidiary and
related corporations, the appointment of directors
corresponding to at least Enel Chile's participation in
them will be proposed. These persons must preferably
come from among the directors or executives of the
Company and its subsidiaries, always fully complying
with the Executive Committee’s Resolution 667/2002.
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ii. Subsidiary companies will be advised on investment,
finance, commercial policies, accounting methods, and
standards to follow.
iii. Management of subsidiaries and linked companies will
be supervised.
iv. The level of indebtedness will be permanently
monitored.
Financing Policy
Maximum debt level
The financing policy seeks to guarantee sustainable growth
financing, pursuing the optimal financing alternatives
and prioritizing sustainable financing in line with the
Group's strategy. Similarly, the objective is to maintain
an Investment Grade rating level to continue to access
financial resources at a competitive cost and access to a
wide range of investors.
Enel Chile's maximum debt limit will be calculated by the
ratio of Total Financial Debt (measured as other current
and non-current financial liabilities plus accounts payable
to current and non-current related entities), less than
or equal to 2.2 times the Total Equity of Enel Chile's
consolidated balance sheet as of December 31, 2022.
Management attributes to agree with creditors on
restrictions on the distribution of Enel Chile's dividends
Restrictions on the distribution of dividends may only
be agreed upon with creditors if such restrictions have
previously been approved at a shareholders' meeting
(ordinary or extraordinary).
Management attributes to agree with creditors on
granting warranties
The Extraordinary Shareholders' Meeting is responsible
for approving the provision of real or personal guarantees
to secure the obligations of third parties pertaining to the
specified essential assets.
Essential Assets permitting the company’s business
operations
The shares that enable Enel Chile to retain control over
Enel Generación Chile S.A., Enel Distribución Chile S.A.,
Enel X Chile SpA, and Enel Green Power Chile S.A. (or its
legal successor) by holding the majority of the shares or by
maintaining agreements or shareholder pacts, are known
as an essential asset for the company's operations.
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Enel Chile was the country's first
company to discontinue its coal use
In September 2022, Enel Generación Chile's Bocamina
Power Plant disconnected Unit II, its last operating
coal-fired unit, making it the first company in Chile to
stop employing this solid fuel for power generation.
This milestone occurred 18 years before the agreed-
upon date with the authority. In this regard, the
Company is in line with the Just Energy Transition
approach, which integrates environmental, social,
and technological solutions to guarantee that plant
closures are carried out in a manner that optimizes
benefits for local communities, contractors, and plant
workers.
35%
53%
Reduction of direct
greenhouse gas
emissions(Scope 1)
with respect to
2022
Decrease in specific
NOX emissions
respect to 2022
Biodiversity projects
at operation sites
27
Water
extraction
intensity
0.18 lts/KWh
PROTECTION AND
DEVELOPMENT OF
NATURAL CAPITAL
Preserving the natural capital and biodiversity are
crucial considerations in the Company's planning and
management of its operations. The goal is to foster
sustainable economic growth in the communities it serves
and to consolidate Enel Chile's position as a leader in the
energy market. The Enel Chile Group incorporates the
assessment of risks and opportunities associated with
natural resources into the Company's decision-making
processes and governance.
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The Group's
commitments
• Prohibition to enter natural areas declared World Heritage Sites by UNESCO.
• Net Zero Loss in selected projects in areas of high biodiversity from 2025.
• Biodiversity with Zero Net Loss from new infrastructure by 2030.
• No net deforestation by 2030.
Commitment to Biodiversity
Enel Chile's biodiversity conservation roadmap is aligned
with the Kunming-Montreal Global Biodiversity Framework.
To achieve this goal, the Enel Group follows the Principles
of Mitigation Hierarchy in all project phases to avoid,
minimize, and recover impacts to natural habitats or
threatened, endemic, or restricted habitats and species.
Responsible management of water resources
Enel Chile applies an integrated approach to the optimal
management of the use of water resources and their
protection. Water is an essential part of electricity
generation, particularly in thermal power generation,
although the gradual shift to renewables, particularly
solar and wind, is reducing the Company's net water
consumption.
• Water quality conservation: wastewater discharged by
plants is returned to the surface water body downstream
from internal recoveries and reuses. The discharge
occurs after a treatment that eliminates the pollutants
to a degree that does not adversely affect the receiving
water body, in compliance with the thresholds stipulated
by national regulations and operating permits.
• Strategic goals: Enel Chile constantly monitors all its
production sites in areas of water stress to ensure that
water resources can be managed efficiently.
The Company's water management considers the following
analyses to guarantee more efficient management of the
resource in all the territories where it operates, mainly in
areas with water stress:
– Mapping production sites in areas of water stress:
Identifying stress sites, considering the criteria
recommended by GRI 303 (2018) referred to the
World Resources Institute "Aqueduct Water Risk
Atlas."
– Identifying "critical" production sites located in areas
of water stress and supplying fresh water for the
Company's process needs.
– Permanently verifying water management methods
used in the plants to minimize consumption and
maximize extraction from lower-value sources.
Total water extraction for the year 2023 was 5.4 million m3;
Total water extraction from all areas subject to water stress
represented 80% of the total. It is relevant to highlight that
the production of energy from fossil sources during the
last decade is due to the mega drought conditions that
affect the central zone from the country.
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Air quality
Pollutants
Waste reduction
Enel Chile's commitment to
improving air quality in the
areas where the Group
operates is evident in the
constant reduction of the main
atmospheric pollutants
associated with thermal
production
Enel Chile adopts the best
available techniques to reduce
pollutants
Constant commitment to
reducing waste production, as
well as defining new methods
of reuse, recycling and recovery
from the perspective of a
circular economy
Pollutants and Residues
Environmental management
The Enel Chile Group is committed to conserving
biodiversity, ecosystems, and natural resources. To this
end, it adopts specific measures throughout the entire
value chain under a methodology that identifies, manages,
controls, and continuously monitors the environment.
The Company has an organizational structure with high
standards and procedures that guarantee protecting,
reducing, and mitigating potential negative impacts. The
Integrated Management System (IMS), a consolidated tool
within the Company's processes, allows environmental
variables to be managed through performance indicators
for reportability, traceability, and transparency. These
indicators are audited annually.
At the same time, the IMS is constantly improving,
considering the life cycle analyses of the assets, services,
and products offered. The SGI promotes disseminating
and exchanging best practices and solutions on different
subjects: emissions, water resources, energy, waste, and
biodiversity.
In particular, a central HSEQ department ("Health, Safety,
Environment and Quality") reports to the CEO. It is
responsible for guiding, coordinating, and defining the
Environmental Policy thanks to the transversal HSEQ
departments present in each business segment.
Enel Chile has an Environmental Policy and a Biodiversity
Policy, through which the Company and its subsidiaries
reaffirm their commitment to protecting the environment
and natural resources and taking action for climate
protection.
The Company actively fosters an environmental protection
culture by implementing a comprehensive training
program for employees and contractors. This includes
raising awareness about the Sustainable Growth Initiative
(SGI), promoting environmental issues and commemorative
days, and disseminating information about the cultural
changes resulting from changes in systems and strategic
objectives, among other initiatives.
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Development of
environmental programs
Activities related to
regulatory compliance
Other environmental
monitoring procedures
Generation Segment
Before undertaking any new project, the Company
conducts environmental impact studies that thoroughly
evaluate the potential effects on ecosystems. The
objective is to prevent operations in areas with significant
biodiversity and implement effective measures to minimize
any negative impacts on biodiversity in every location
where the Company operates.
Enel Chile aims to extend its influence beyond its energy
business by placing significant value on the diverse
ecosystem services provided by nature. It undertakes
highly relevant studies on about 43,500 hectares of native
forest spanning four regions of the country.
Enel Chile's environmental initiatives are guided by the
legal and regulatory requirements in the country, as well as
the voluntary environmental commitments communicated
by the Company in the Environmental Qualification
Resolutions of each Project.
2023 Management
During the 2023 period, the management of the
environmental area in the generation business focused on
implementing three principles of work:
Regarding regulatory compliance, work plans for
monitoring
internal
environmental
commitments
continued in 2023, following the Company's standards.
The preceding is consistent with its environmental
sustainability
principles
and
compliance
with
the
environmental commitments of the plants' Environmental
Qualification Resolutions (RCA- Spanish acronym) and
applicable environmental legislation.
The environmental programs created were designed
to raise awareness about numerous subjects, with a
particular emphasis on "biodiversity protection," "water
consumption reduction," "waste management," and
"dissemination of national and international environmental
commemorations." The primary goal of these programs is
to continue expanding knowledge about environmental
respect and care through activities aimed at internal
employees and partners.
In 2023, the focus remained on monitoring environmental
performance, managing monitoring contracts, and
overseeing strategic environmental projects. Additionally,
support was provided for various global initiatives through
work and advice. Additionally, the monitoring of KPIs for
environmental events and the execution of evaluations
and inspections were closely observed. Furthermore, the
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Biodiversity Projects
HSEQ's environmental area continued to work on a biodiversity program called "Nature in Our
Plants," whose objective was to disseminate and protect the biodiversity of the surroundings
of the generating plants and to highlight the initiatives that the Company has promoted in this
area. The program included the following activities:
• Pilot Projects: Agreements have been maintained for implementing biodiversity pilot
projects in 2023 through alliances with consultants, NGOs, and specialized workers in many
areas, allowing good practices to be executed at the Company's facilities. Our efforts include:
– Habitat enrichment for biological controllers in Quintero, CT, and San Isidro, CT,
– Phase 2 of constructing and monitoring the Sea Swallow Nests project in partnership with
the Network of Wildlife Observers of Chile.
– Survey of an arthropod community on the La Escuadra property, a project undertaken in
partnership with Universidad de La Serena that led to the discovery of a new spider and
scorpion species, among other outcomes
– It should be noted that several of these initiatives have come up with implementation
guides and workshops to help convey this information.
• Extension material: In 2023, the book "The Legacy of Light: 70 Years of the Los Molles
Power Plant" was completed. In line with the Company's commitment to the environment,
this initiative aims to promote awareness and understanding of the natural environments
surrounding our power generation facilities. Specifically, we are focusing on an impressive
and ecologically diverse geographical area nestled within the transversal valleys of the
Andean Mountain range. Similarly, the book "Nature in Our Plants" was published and shared
last year, aiming to showcase various aspects of nature found in the surroundings of power
generation facilities. These facilities extend from the vast and arid desert to the lush forests
of southern Chile. The publications mentioned above, available for everyone to read, seek
to share the incredible biodiversity that exists alongside Enel Chile's generation plants. They
serve as a reminder of the need to appreciate and protect the surrounding nature.
• Additional internal activities include training sessions and the distribution of biannual
newsletters (EnelBioData) that organize biodiversity data related to operational plants. These
newsletters enable the development of indicators, evaluation of trends, identification of
critical areas, promotion of best practices, and, most importantly, dissemination of knowledge
in a user-friendly format and language. Similarly, the term "flagship species" refers to specific
plant and animal species emblematic of biodiversity in the context of Power Generation. A
logo was created to represent these species and was used in presentations, wallpapers, and
other forms of communication.
supplier qualification processes in the environmental field
are worth mentioning.
Another critical aspect of environmental management
involves the various activities required to guarantee
compliance with reporting requirements to the relevant
authority. This includes submitting PRTR (Registry of
Pollutant Emissions and Transfers of the Ministry of
the Environment) reports for plants and facilities in
operation and reports related to RCA commitments and
environmental qualification resolutions.
Main projects and activities
As part of environmental management, some of the main
projects and activities carried out by the Company in 2023
are detailed below.
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Waste Management
In 2023, work continued on a waste management program called "Zero Waste," which aims
to reduce waste generation and increase recovery to minimize the amount of waste sent to
the final disposal.
In addition to this program, the following activities also took place:
• "Waste awareness" program: attendees were educated on solid waste management
through training sessions conducted throughout the year for various departments within
the company and external contractors responsible for plant services.
• Recycling day: Various recycling-related events dedicated to the environment were held
throughout the week. In particular, the electrical and electronic equipment recycling
campaign collected approximately 7,700 kg, sent for recovery through the authorized
company Gestión Ambiental Pañiwe Ltda. Additionally, a campaign was conducted to collect
discarded corporate clothing, collecting over 500 kilograms of garments. These garments
were disposed of or put aside for reuse and recycling based on their condition with the help
of Sembra and Procitex. Workshops on recycling and composting took place in all Power
Generation Chile sites. The primary objective was to raise awareness and communicate the
principles, objectives, and significance of effective waste management to minimize waste
generation and maximize recovery.
• The Waste Recovery Program was implemented, leading to the recovery of about 3,000 tons
of non-hazardous industrial waste in 2023.
Water Management
In 2023, the Company maintained the WAVE (Water Value Enhancement) program, which
aims to reduce water consumption throughout the electricity production process and
efficiently use the resource in all plants. The monitoring/review of consumption is carried out
every quarter.
The plant with the highest water consumption is the San Isidro Thermoelectric Power Plant,
where the company placed the main focus of work. To date, reducing its consumption through
a circular economy project has been possible, decreasing the value from 2019 until now. The
reduction consists of delivering cooling water for recovery in mining processes. This prevents it
from being discharged into the Aconcagua River as liquid industrial waste (LIW), and, therefore,
the restriction associated with the sulfate limits of the discharge regulation is eliminated.
Thanks to the process, recycling the resource several times is possible. Consequently, the
process demands less fresh water in an area that currently presents water stress.
Compliance with the Emission Standard for
Thermoelectric Power Plants
In August 2023, the Superintendence of the Environment
(SMA- Spanish acronym) published compliance verification
reports for the 2022 annual period with the limits
established in Supreme Decree No. 13/11 on Emission
Standards for thermoelectric power plants. In this regard,
the SMA verified compliance with the emission limits for all
the Company's Power Generation Units (UGE) based on the
information contained in the quarterly reports submitted
through the one-stop shop portal in "Thermoelectric
Power Plants System."
Green taxes
In 2023, the tax for emissions from thermoelectric power
plants was paid. The emissions quantification for the green
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Environmental
improvement plan
Operational
control
Culture and
training
tax payment was conducted following the methodology
approved by the SMA. In April 2023, Enel Generación
Chile paid a total tax of US$ 25,720,610 for the 2022 fiscal
year. This tax considers the atmospheric emissions of the
Company's thermoelectric park.
Distribution and networks segment
The Company identifies, monitors, and controls the
environmental impacts that may arise from its electric
power distribution operations. Among the main aspects
included in the monitoring are environmental emergencies,
waste generation, noise, dust, and gas emissions, among
others, due to the operation of networks and substations.
Environmental monitoring is conducted to verify that
electrical installations meet environmental regulations
and are in harmony with the surrounding environment.
This involves assessing different environmental variables
as specified in approved Environmental Management
Instruments
by
the
relevant
authority.
Regular
environmental inspections are conducted across multiple
construction, operation, and maintenance activities, as
well as on the facilities of contractor companies, to confirm
compliance with the Company's environmental standards.
The
Environmental
Improvement
Committee
is
a
significant achievement in Enel Chile's distribution and grid
segment, emphasizing its commitment to environmental
governance. The progress of the annual environmental
plan is reviewed bimonthly, focusing on promoting projects
and actions that improve the Company's environmental
performance.
2023 Management
In 2023, the Company's main environmental management
activities in this area were organized according to three
principles:
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Operational Control
To secure the correct environmental management of the Company's operations and comply
with current environmental regulations, the following activities were carried out in 2023:
• 6,444 environmental inspections, of which 6,246 were for the operation's activities and 198
for the contractors' facilities. Variations are reported and monitored as non-conformities in
the integrated management system.
• Monthly monitoring of high and medium environmental risk contracts to guarantee control
of all significant environmental aspects and reduce environmental impacts.
• Contractors are subjected to three Extra On-Site Checks (ECoS) and five assessments
conducted by both the technical line and the environmental team. During this period, the
Company integrated an evaluation of the environmental controls that directly oversee its
working areas. The controls include examining documents and direct observation at the
site to verify compliance with environmental laws, monitor the impact of critical operational
aspects, and assess the Enel Group's implementation of procedures. This process identifies
areas of concern and opportunities for improvement. Identified flaws are addressed by
implementing corrective action plans.
• Attention to environmental emergencies: during 2023, 79 events were recorded, 46.8% of
which corresponded to near misses, i.e., events where no direct environmental impact was
caused. An example is the spillage of dielectric oil in a confined, impermeable area. The
remaining 53.2% corresponds to minor incidents, which were dealt with in a timely manner,
taking immediate corrective actions, such as cleaning the soil affected by an oil spill, for
example, to control and mitigate the possible environmental impact caused.
Main projects and activities
30 PCB (polychlorinated biphenyl) is a persistent organic pollutant, which is present in the oil of some electrical transformers.
Environmental
Improvement Plan
With the objective of improving the Company's environmental performance, the following
projects have been developed:
• Elimination of PCBs30 present in transformers of the distribution network: Chile has been a
signatory to the Stockholm Convention since 2005, which prohibits its use in service by 2025
and its existence by 2028. Enel Distribución Chile has reached a milestone, completed the
process of eliminating PCBs from its infrastructure, and is currently declaring the Company
PCB-free before the health authority in 2024, for which it is developing a technical report
explaining all the management developed since 2015 when the collection of information
began. Statistical analysis, cadaster of overhead and underground transformers, analysis
of oil samples, and disposal of contaminated transformers and their oil, mainly through
the dichlorination technique. In 2022, oil samples were analyzed from the latest overhead
transformers suspected of containing PCBs. However, none of them presented the
contaminant. In addition, since 2018, a preventive analysis has been carried out on all
transformers removed from the grid, either to be repaired or decommissioned.
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• Leadership, culture, and training. Enel Chile aims to play an important role in the city's
sustainable development by implementing tangible measures that foster a culture of
circularity, actively contribute to reducing the carbon footprint, and prioritize biodiversity
conservation, going beyond its core operations. In pursuit of this vision, a range of initiatives
were carried out in 2023 to effectively manage non-hazardous waste produced in the
distribution business operations. These projects were specifically designed to promote
circular economy models, leading to a critical waste recovery rate of 12%. The following
projects were particularly significant:
– Project to reuse concrete from poles removed from the network: Since 2020, the
Company has been working on a pilot project to manufacture poles from recycled pole
concrete. This could produce multiple environmental benefits, such as reducing the use
of virgin material from quarries, opportunities to reuse by-products of the poles, including
steel, and avoiding the final disposal of about 5 Kton of concrete. Additionally, in 2023,
work was carried out on a pilot to use 300 m3 of recycled concrete from the poles as
bases in a section of the Fruit Route motorway (Fondet Project).
– Construction and demolition waste recovery project (rubble): in 2023, rubble was sent
to Revaloriza to manufacture recycled bases and subbases to be tested in civil works in
2024.
– Reverse Logistics Process: allows the recovery, traceability, and circular economy, either
by recovery and/or reuse of the waste removed from the network, as a result of the
expansion and maintenance work of the network, for example, copper, aluminum, iron,
and cardboard, among others.
Culture and training
To increase environmental awareness and environmental competencies of all the Company's
employees and contractors, the following activities were carried out:
• The bi-monthly Committee on Environmental Improvement conveys the management’s
commitment level to the organization's environmental management.
• Eleven committed to HSE: environmental dissemination sessions for all Enel Distribución
Chile staff members on issues such as environmental policies, biodiversity protection,
archaeological findings, control of environmental variables (noise and electromagnetic
fields), SF6 gas emissions, environmental controls, etc.
• Urban tree management training (pruning) for contractors and an urban tree seminar for
the company’s staff and contractors, both initiatives aimed at increasing the knowledge
delivered in 2021 and 2022 by Universidad Catolica de Chile and applying knowledge to
practical cases in the operation.
• Integrated safety and environmental training, emphasizing the new global environmental
form applicable to inspections of activities and facilities and using the new E-Site Controller
application.
• Disseminating and training the contents of the operational safety and environmental talk so
that the crews correctly evaluate the safety and environmental risks before carrying out any
activity.
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• Waste training (MBO) aimed at waste traceability, expanding knowledge on the subject
(regulatory compliance), and raising improvement initiatives.
• Training of areas under official protection (ecological preservation areas and typical and/
or view-worthy areas) to analyze the implications of developing projects within such sites
during the planning stage.
• Participation in the Law on Economic and Environmental Crimes training dictated for the
company’s staff members.
Environmental
management of
contractors
Environmental
awareness
Document
management
Repors and
indicators
Circular Economy
and Urban
Biodiversity
Trainings
Enel X Chile
For Enel X Chile (hereinafter Enel X), the commitment to
protecting the environment is based on the conviction
that
preventing
risks
and
promoting
responsible
behavior is critical to defending its well-being and
future generations. The fight against climate change,
environmental protection, and sustainable development
are strategic factors for designing Enel X's products and
services based on the circular economy principles. Each
Enel X product or service must comply with the circularity
criteria established by the Company, identifying, for
example, the origin of the materials, their greater efficiency
compared to similar products, the possibility of extending
their useful life and development through innovation, new
proposals that are increasingly circular and sustainable,
always focused on incorporating clean technologies into
the market that have a high impact on the reduction of
CO2e emissions.
At the same time, Enel X has consistently prioritized the
correct environmental management of its operations
since its inception. The Company's products and services
are inherently sustainable and energy efficient, making
flawless environmental management a characteristic of
Enel X's activities. Enel X's HSEQ environmental division
focused on the communication of this message to
employees present at the site and has consequently
implemented six vital strategic principles:
One pertinent element concerning the environmental
management of contractors was the necessity for
fundamental environmental requirements to be met
before commencing fieldwork, thereby ensuring proper
environmental management from the outset. In the
previously mentioned setting, the organization increased
on-site environmental inspections in 2023, establishing
criteria that would include a broad range of activities
to verify the proper implementation of legal regulations
and the protocols and processes established by Enel
X in the area in question. Promoting the environmental
management of contractors should be a defining
characteristic of Enel X.
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Environmental
Awareness
• The Corporate Clothing Recycling Campaign was an initiative that aimed to emphasize the
importance of recycling to reduce the consumption of natural resources, specifically water.
• The Environment Week program was a collaborative effort amongst the organization's
several business lines, harnessing the synergy and experience of each organization to cover
a range of environmental subjects. Enel X emphasized the importance of sustainable cities
and extended invitations to employees from contractors and their families to take part in the
initiative.
• The program consisted of numerous talks, including one addressing the Extended Producer
Responsibility Law (EPR Law) and its business implications. Similarly, Enel X conducted
numerous meetings with individuals engaged in pioneering environmental efforts that align
with their corporate interests to familiarize themselves with these initiatives.
• The "Enel X Forest" initiative, in partnership with the Reforestemos Foundation, continued
to grow. In 2023, the B2G business line introduced the "One Tree, One Bus" campaign.
Under this campaign, Enel X undertakes to plant one tree for every electric bus it puts into
circulation, thereby contributing to the country's reforestation efforts.
Regarding the monitoring of environmental variables,
and in particular, the Huella Chile Program of the Ministry
of the Environment, in which in 2022 the Company
obtained the seal for identifying and detailing greenhouse
gas emissions. During 2023, Enel Chile advanced one
step further as it has demonstrated a reduction in our
emissions.
Finally, as a closing of the work carried out in environmental
management at the end of the year, the presentation of
recognition was repeated to the contractor companies
that stood out in their progress and alignment with the
environmental policy of Enel contractors drive. Initiative
created in 2021 as a tool for positive reinforcement for
collaborators in these matters.
Enel X's Environmental Management System has been
certified under the ISO14.001 Standard since 2020. It was
recertified in 2023 and obtained the Energy Management
certification under the ISO 50.001 Standard in the Gold
category in 2022.
Main activities
In the area of environmental awareness, various participatory activities were carried out during the period, including the
following:
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ECOSYSTEM
INNOVATION
HUB
STARTUP
A bridge between starups
and the Enel ecosystem to
create new opporunities
Detect opporunities in
the best innovation
ecosystems
Build solid relationships
with key actors
(incubator,
accelerators, etc.)
Provide starup
scouting to the Enel
Group
#ENELINNOVATIONHUBS:
Connecting Enel with the best innovation ecosystems
INNOVATION
Innovation, digitalization, and the circular economy are the
growth accelerators of the Company's Sustainability Plan.
Product, service, and process innovation are Enel Chile’s
strategic priorities that guarantee its long-term success in
the context of an increasingly competitive and demanding
market. This scenario offers new opportunities based
on the development of energy solutions that promote
sustainability and diversify the offer of products and
services.
In line with the Open Power vision, the Group promotes
an open innovation approach to address the challenges of
the energy transition. The Open Innovation model makes it
possible to connect all areas of the Company with startups,
industrial partners, small and medium-sized enterprises
(SMEs), research centers, universities, and entrepreneurs
– partly taking advantage of crowdsourcing platforms –
to face business challenges, considering the drivers of
the Group's Strategic Plan. This model is implemented
through two lines of work: favoring and interacting with
external innovation spaces through the Innovation Hub
and promoting the internal innovation culture through the
Idea Hub.
Innovation Hub
Through its Open Innovability® model, Enel Chile creates
solutions, products, and services to transform the current
energy model continuously. To this end, Innovation Hub
works on detecting startups whose technology has the
necessary potential to transform good ideas into solutions
for business needs. In 2023, the company evaluated more
than 100 emerging companies from all over Latin America,
deciding to launch "Proofs of Concept" with the selected
startups.
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1
2
3
Idea Factory
Transform business
problems and
challenges into creative
solutions
Innovation
culture
Strengthen innovation
through multidisciplinary
teamwork
Innovation
Academy
Train and disseminate
creative methodologies
for innovation
Idea Hub
To promote and disseminate a culture of innovation,
the Company established Idea Hub. It seeks to generate
knowledge and behaviors in innovation and encourage the
creativity of technical and professional teams, providing
them with the tools to develop their capabilities.
• Idea Factory:
a
program
based
on
innovation
methodologies
to
encourage
creativity
among
employees,
offering
them
support
in
analyzing,
selecting, and implementing the best solutions to the
problems and/or challenges they face to transform
workspaces into actual innovation laboratories. In
2023, employee participation increased, reaching the
sustained involvement of 184 people in both face-to-
face and online sessions.
• Innovation Culture: includes various activities, talks, and
workshops that seek to inspire and promote divergent
thinking in Enel Chile’s employees, promoting work in
multidisciplinary teams so that innovation is applied
daily in the Company’s work.
• Innovation Ambassadors: a program that promotes the
creation of a network of people from different areas
who can influence, expand, and develop the innovation
culture at all levels of Enel Chile, seeking to strengthen
it and integrate it into the Company’s day-to-day
activities. The people who are part of this network are
called innovation ambassadors. Currently, the group of
Ambassadors in Chile is made up of 17 people.
• Innovation Academy: The innovation academy is
open to all company employees who participate in,
develop, or are interested in innovation and digital
transformation and want to incorporate knowledge and
new methodologies into their work. In 2023, training
was held on Artificial Intelligence and using Chat GPT,
quantification of opportunities, and creative problem-
solving sessions. Thirty-six meetings were held in
inspiring and diverse areas, such as science and biology,
creativity and innovation, learning and communication,
personal well-being, startups and inspiration, and
technology and new trends.
In 2023, the innovation communities remained active,
forming diverse working groups to creatively tackle critical
business challenges and new technologies to generate
value for the Group.
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Integrated Annual Report Enel Chile 2023
Most important 2023
Iniciatives
• Corporate Impact Venturing Latin American and the Caribbean (CIVLAC) is an alliance
that reinforces Enel's commitment to the Open Innovability® model, where innovation and
sustainability combine to provide solutions that positively impact all stakeholders. In 2023,
the companies that are part of the CIVLAC network once again launched a search process
for startups focused on ClimaTech to address different related challenges.
• In 2023, the Innovation Hub Latam sponsored the International Meeting on
Entrepreneurship, Innovation, and Investment "EtMday" for the third consecutive year.
Through the various panels, business roundtables, and other activities, it was possible to
connect with new startups, also highlighting the visits of more than 600 people to the stand
with more than 35,000 attendees at the event.
• Innovation Week, whose motto in 2023 was "Illuminating the future," was framed in a varied
agenda of face-to-face and online activities such as talks, workshops, panels of experts,
and interventions in the building, among others. All these activities addressed technology
and advanced innovation issues, with artificial intelligence as the protagonist. The employees
rated the week at 4.8 out of a maximum of 5.
• Project 5, Idea Hub, together with Innovation Ambassadors, offered a series of creative
sessions to the board of directors under the "Creative Problem Solving (CPS)" methodology
to develop initiatives to create a distinctive seal for all those who are part of the Enel Chile
group, presented on October 5, 2023, to the entire Company.
• Innovation Sessions with Services and Security, Idea Hub, and Innovation Ambassadors
facilitated a cycle of creative sessions under the "Creative Problem Solving (CPS)" methodology
to solve a strategic management challenge. As a result of the positive experience of these
sessions, a second collaboration was initiated, with a series of training sessions in creative
methodologies, of which two have already been offered, and the remaining will be carried
out in 2024.
Innovation in the Generation Segment
For Enel Chile, innovation is a differentiating factor that
gives it a competitive advantage in the generation market.
That is why the Company aspires to maintain and improve
its leadership position in this area, working in a systematic,
organized, and transversal manner aligned with the
Company's strategic plan.
One of the focuses of 2023 was the incorporation of new
technologies that support the energy transition process
through robotics and digitalization, developing new ways
of producing energy through the advantages of marine
energy, hybridization of energy production, and production
of green hydrogen as a new energy vector. Another
important focus was searching for new maintenance
methods and exploring different technologies.
Another challenge was maintaining operational continuity
by adapting to innovative, digital, and semi-automated
solutions for jobs previously carried out face-to-face or
manually.
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Main 2023 projects
Green Hydrogen
In 2023, the Haru Oni demonstration plant producing
green hydrogen through electricity generated by a
3.4 MW wind turbine, exported for the first time from
the Magallanes region to Europe 24,600 liters of
synthetic gasoline to be used directly in combustion
vehicles without the need to modify their current
engines. In this way, progress continues to be made
in the national development of these synthetic
fuels, which are essential for the energy transition in
transport, since eFuels – made with green hydrogen
and recycled CO2 – can displace fossil fuels without
requiring modifications in current engines and
infrastructure—a milestone for Chile and the world in
the fight against climate change.
Degradation Analysis for Photovoltaic Modules
Exposed to High Radiation Climates
This project, developed in conjunction with the
Federico Santa Maria Technical University, was
publicly funded by the National R+D Agency under
the FONDEF 2023 program. Its main objective
is to develop international standards and verify
methodologies for the degradation analysis of
photovoltaic components appropriate for the high
radiation conditions in desert areas with high UV
radiation, as occurs in the country’s north.
MERIC – Energía Marina SpA
To continue the research and development in new
renewable energy sources for Chile, such as marine
energies, Enel Green Power Chile applied, through
Energía Marina SpA, for the 2023 Support for
Capacity Building for R+D contest, a competition
launched by the National Agency for Research and
Development (ANID – Spanish acronym) of the Ministry
of Science of Chile. The application was accepted
and was awarded in December 2023. These funds will
allow further research into the applicability of marine
energies, including studies of offshore wind power
plants for Chile, over the next two years. This work will
be carried out in conjunction with the Universidad
Católica de Chile and the Universidad Austral de Chile.
Second life of solar panels
In 2023, the first stage of the second life of
photovoltaic modules project was completed. The
project developed together with the Circular Economy
area seeks to enable a new industry of second life of
solar panels, proposing certification protocols and
search for new uses in other industries, generating
a circular economy around solar panels that have
been removed from the operation or construction
stage of solar parks. As part of this activity, Enel Green
Power Chile collaborated in different working groups
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Integrated Annual Report Enel Chile 2023
together with the Ministry of Energy, Ministry of the
Environment, Ministry of Health, SEC, University of
Antofagasta, CEA INES and CTEC.
Flamingo Project
"Flamingo" is a technological solution designed entirely
within the Enel Green Power and Thermal Generation
business area and is the result of months of work
by a multidisciplinary team from the areas of E&C
(Engineering and Construction) and Innovation.
The Flamingo robot shares a similarity with the long-
necked bird it is named after, as it has an extended,
semi-automated arm that can efficiently handle pre-
assembled solar panels and swiftly and securely install
them with the assistance of field workers.
The origin of this invention was the need to find an
automated and safe solution to build solar plants faster
and more efficiently around the world, centralizing
the main steps of manual assembly. Enel Green
Power Chile's Innovation team, together with Chile's
Innovation team, part of Enel's Global team and its
Robotics section, have successfully manufactured the
first Flamingo Machine in Chile, advanced equipment
with state-of-the-art computerized hydraulic systems.
This seven-degree-of-freedom equipment weighing
more than 1.5 tons is capable of semi-automatically
installing 60 m2 of solar panels in record time.
The Company's development, engineering and
commissioning capabilities have been demonstrated
with this concurrent development that in record time
has made it possible to manufacture this advanced
equipment and successfully test it in the Guayepo
project in Colombia, also proving the logistical and
support capabilities of Innovación Chile and its Global
counterpart.
Innovation in the Distribution and Grids segment
In 2023, Enel Chile made a significant step forward
in innovating and modernizing its infrastructure and
electricity grids, with a particular focus on promoting
subsidized projects. This strategy responds to a
commitment to sustainability and energy efficiency,
aligning with national and international objectives for
reducing emissions and promoting renewable energies.
Collaboration with the European Investment Bank
(EIB) has been fundamental in this process, providing
complementary financial resources, such as loans under
better market conditions, to projects that help mitigate
the impacts that the country's development causes on
climate change, developing ambitious, innovative projects.
These projects not only improve the quality and efficiency
of the electricity service but also contribute to reducing
the carbon footprint and fostering the transition to a
cleaner and more sustainable energy future.
One of the most prominent projects is the research into
the expansion of smart grids, which use digital technology
to improve the efficiency of energy distribution and
the integration of renewable energy sources. This
modernization is vital to meet the increase in energy
demand and provide a reliable and sustainable electricity
supply.
Another crucial aspect of distribution innovation is the
development of infrastructure for electromobility. Enel
Chile has led the installation of charging stations for
electric vehicles, thus supporting a transition to cleaner
transport options and reducing greenhouse gas emissions.
The digitalization and automation of the management
and maintenance processes of the electricity grid have
significantly improved operating efficiency. Adopting
technologies like IoT (Internet of Things) and AI (Artificial
Intelligence) has enabled more accurate monitoring and
faster response to service disruptions, improving the
customer experience.
In summary, Enel Chile's infrastructure and network
innovation projects and activities in 2023 reflect a
strategic focus on using subsidies and financial resources
to drive innovation and sustainability. Collaboration with
the EIB and other national bodies, through joint work with
academia, was fundamental in this process, providing
not only the necessary financial resources but also a
framework of sustainability and shared responsibility in
the search for a more efficient and sustainable energy
future for Chile.
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Main 2023 activities and projects
Collaboration between different Universities and
Enel Distribución Chile in cutting-edge projects
and boosting the relationship between academia
and industry through Framework Collaboration
Agreements, which establish the foundations for
cooperation in educational exchange, practices,
research and development, and agreements for
specific projects. These strategic alliances include:
An Alliance between Enel Distribución Chile and
Universidad de los Andes
Collaboration in projects focused on urban trees,
management of crews for electrical distribution
networks, and strengthening the relationship between
academia and industry are the most important
initiatives.
ArboCensus Project: its objective is to implement
an advanced system for monitoring and cadaster
of trees in urban areas, using automated detection
algorithms and citizen participation for data
collection. A pilot project was launched in Las Condes
and La Reina, with 1,400 trees marked. The second
stage targets an additional 6,000 samples.
AI-based Crew Management Initiative: focuses
on optimizing operational efficiency in emergency
response in power grids using artificial intelligence
tools by developing a tool based on Reinforcement
Learning for the logistics management of crews. This
project was submitted to the IDeA I+D 2024 Contest,
with results expected to be announced in March 2024.
An Alliance between Enel Distribución Chile and
Universidad San Sebastián
Mutual collaboration in developing the smart
microgrids project and boosting the relationship
between academia and industry is the most
important.
Design and development of smart microgrids for
the reliability of the electric power distribution
system: its objective is to develop a virtual intelligent
management system to install a microgrid made up
of PMGDs located in the municipalities of Colina and/
or Lampa, to improve the reliability and flexibility
of the electricity supply service delivered to Enel
Distribución Chile's customers. The project is
developed through a meta-tool using homeostatic
energy control and artificial intelligence. The intelligent
system is expected to make real-time decisions
regarding the power and energy consumption of
industrial consumer systems connected to the
microgrid, helping to stabilize frequency and voltage,
as well as assisting emergency management in the
event of adverse weather events and contributing to
the system with electricity from renewable sources.
This project was submitted to the IDeA I+D 2024
Strategic 2023 Alliances in Innovation and R+D
In 2023, Enel Chile, through Enel Distribución Chile,
focused its strategy on strengthening strategic alliances
to promote innovation and research and development
(R+D) in the distribution and electricity grid sector. These
collaborations, key to developing advanced technologies
and sustainable solutions, reflect a shared vision of a more
efficient and environmentally friendly energy future.
In collaboration with renowned academic institutions and
industrial partners, the Company undertook innovative
projects ranging from modernizing electrical infrastructure
to
integrating
renewable
energy
sources.
These
partnerships made possible not only the implementation
of cutting-edge technologies but also the creation of
customized solutions for the specific challenges of the
Chilean energy sector.
Projects developed under these strategic alliances include
the expansion of smart grids, the implementation of large-
scale energy storage systems, and the promotion of
electromobility.
In summary, Enel Chile's strategic alliances through Enel
Distribución Chile in 2023 played a fundamental role in
consolidating its leadership in the energy sector. Through
these collaborations, the Company proved its commitment
to innovation, sustainability, and continuous improvement
of electricity infrastructure and grids, thus contributing to
Chile's cleaner and more efficient energy future.
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Contest, with expected results to be announced in
March 2024.
An Alliance between Enel Distribución Chile and
Universidad Técnica Federico Santa María
The mutual collaboration in developing the
Bioinspired measurement system project for the
online diagnosis of faults in power transformers and
boosting the relationship between academia and
industry are the most important initiatives.
The Design and Development of Bioinspired
Measurement System Diagnosis of on-line faults
of power transformers: the project proposes to
develop a novel online tool to monitor and diagnose
degradation in transformers capable of characterizing
the chemical and electrical variations experienced by
dielectric oil for the prediction and early and proactive
identification of the presence of thermal and/or
electrical faults. This solution will make it possible
to base maintenance processes on the expected
condition of the equipment and avoid corrective
actions that in the long term increase the costs
associated with maintenance. Project awarded in the
FONDEF IDeA I+D 2022 Tender.
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DATA DRIVEN
D
I
G
I
T
A
L
I
M
P
A
C
T
A
s
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Digitalization
Enel Chile is carrying out a digital transformation of its
entire value chain management, developing new business
models and digitizing its processes, integrating systems,
and adopting new technologies.
Digitalization makes it possible to promote economic,
social, and environmental sustainability, encouraging more
conscious consumption, access to energy – especially
for the most vulnerable sectors – and an environmentally
friendly use of energy.
The Company's digitalization strategy is based on three
principles: people, assets, and customers, considering
three
fundamental
enablers
for
its
development:
cybersecurity, platform, and cloud.
The Company seeks to incorporate digital solutions in
each of the three principles:
• People, making digital tools available to employees
to make processes more efficient. Such tools enabled
a hybrid way of working, allowing the Company’s
employees to reconcile work and family life in a more
friendly manner.
• Customers, implementing different digital solutions
to enhance the operation of the business, especially
of Enel X Chile, improving the product offer to the end
customer.
• Assets, implementing digital tools to build wind, solar,
and other non-conventional renewable energy plants
in their design, engineering, construction, and plant
life phases, and to optimize the management and
maintenance of generation plants and the distribution
network.
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Risk-based
approach to
cybersecurity
by design
Cybersecurity
strategy
Treatment of
cybersecurity
risks
Cybersecurity risk
assessment
Cybersecurity
awareness
and training
Cybersecurity
assurance
Identity
management
and access control
Reacting to
cyberemergencies
Cybersecurity
engineering, design
and implementation
Cybersecurity
The Enel Group has implemented a comprehensive
cybersecurity action and management model covering
all of its companies, including Enel Chile. This initiative is
strongly supported by senior management. It involves the
active participation of all corporate business areas, as well
as the individuals responsible for the design, management,
and operation of computer systems.
Enel Chile has a global cybersecurity unit that plays a
supervisory role. This unit reports directly to the Chief
Information Officer (CIO), who works under the Chief
Information Security Officer (CISO). The team guarantees
governance, coordination, and control of cybersecurity
issues. They also define strategies, policies, and guidelines
that comply with current regulations. By making timely
decisions at a global level, Enel Chile guarantees that
response time is crucial in their operations.
Enel Chile prioritizes risk analysis as the foundation for
all strategic decisions made by the Company, promoting
effective cyber risk management. This cyber defense
model is built upon a comprehensive methodology that
can be applied to all computer systems. It effectively
identifies, prioritizes, and quantifies the potential cyber
security risks arising from using these systems.
Computer systems involved:
• Information Technology (IT), from the cloud to the data
center.
• Operational Technology (OT), everything related to the
industrial sector, such as remote control of plants.
• The Internet of Things (IoT) is the extension of
communication and intelligence to the world of objects.
The ultimate goal of the model is to identify and adopt
the most appropriate security actions to minimize and
mitigate risks. Following this approach, we pinpoint the
information systems that require this risk analysis, taking
into consideration the appropriate mitigation measures
depending on the nature and magnitude of the risk.
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2023
Number of breaches or incidents of Cybersecurity(1)
0
Number of customers or employees affected by a cybersecurity breach from the Company.(2)
0
(1) It refers only to Level 4 cybersecurity incidents (not covering any breach resulting from "non-digital" incidents, i.e., "paper-based"
disclosure).
2) It refers only to the number of clients and employees affected by Level 4 cybersecurity incidents.
Cyberattack Prevention and Monitoring
Enel Chile has its own CERT (Cyber Emergency Readiness
Team) to manage and respond to cyber incidents
proactively, fostering collaboration and information
exchange with relevant stakeholders to protect the
members of the Group, i.e., workers and assets (plants,
infrastructures, IT and OT Objects and in general any
essential device for the Group's business).
When the CERT detects any type of information security
risk or incident, it analyzes and classifies it according to its
severity. When the incident generates a crisis that affects
business continuity, the profitability of the company, or
its reputation, we immediately take the necessary actions
following existing policies on crisis management and
security emergencies. Incidents are classified according
to a specific impact matrix (Enel Cyber Impact Matrix) on
a scale of 0 to 4. Most incidents that do not significantly
impact the Group's systems are classified at level 0/1
and are automatically blocked or managed by existing
corporate defenses. Incidents classified in levels 2, 3, or
4, which could otherwise have a potential impact on the
Group, are handled directly by CERT analysts with the
participation of stakeholders.
By its very nature, incident management must evolve
over time to cope with a complex and ever-changing
cyber landscape. In fact, since the creation of CERT, the
number of events to be managed has increased, as has
the perimeter to be protected, driving the introduction
of new technologies and the integration of increasingly
specialized skills. The integration of SOAR and machine
learning represents an evolution in this direction. The first,
an acronym for Security Orchestration, Automation, and
Response, is software that permits the automation of
repetitive tasks by defining automatic operational flows.
The latter is a branch of artificial intelligence that deals with
creating systems that learn or improve performance based
on the data they use. These technologies make it possible
to accelerate, enrich, and standardize the monitoring of
the necessary activities during an incident's analysis and
management phases, providing outstanding support to
analysts, who can thus parallelize and concentrate on the
most complex activities that require human intervention.
Cybersecurity education, training, and awareness
The Group implemented the first cybersecurity awareness
plan at the end of 2015. Currently, it is a permanent
and continuous initiative aimed at creating a culture of
cybersecurity to increase defense against threats and
attacks aimed at the human vector.
The main focus of the plan is on the following:
• Fostering a cybersecurity culture to change people's
behavior to reduce risk.
• Developing technical competencies in cybersecurity.
• Communication and campaigns to raise cybersecurity
concerns awareness and respond accordingly.
In 2023, Enel Chile carried out a series of training activities,
and several awareness events were also made available to
employees to address cybersecurity issues.
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Main 2023 initiatives
• Presentations held during the year focused on October (defined by the Company as
cybersecurity month).
• Continuous training through the Company's training platform.
• Simulation exercises of phishing campaigns and attacks on the Company's critical
infrastructure.
Personal Data Protection
The European Union's General Data Protection Regulation
(GDPR) enforces compliance obligations on the Enel
Group by setting up a Data Protection Office, whose
main requirements are professional autonomy and
independence.
Although the aforementioned regulation is not applicable
in Latin America, the Enel Group has chosen to raise
the standards of personal data protection in each of
its subsidiaries to go beyond what the local regulation
provides and thus ensure the rights and freedoms of its
customers, employees, suppliers and all those whose
personal data the company for some reason must process.
At the same time, in Chile, the Protection of Private Life
Act (Law No. 19628) also enforces certain obligations in
personal data processing that the company, either as the
responsible party or in charge, must comply with.
In 2023, Enel Chile continued to work on implementing
the compliance plan commenced in previous years, which,
among other things, provides for the figure of a Data
Protection Officer (DPO), who reports directly and works
in coordination with the DPO holding office, as well as
reporting directly to senior management in Chile, through
the Executive Committee that takes place monthly and
works in coordination with the various managements,
especially with cybersecurity and information security,
with those who make up the Security Committee.
The DPO provides support to the CEOs of the different
Enel companies in Chile, as well as the businesses, to
guarantee that processes and operations are in line
with privacy by design and by default principles. The
organization is responsible for establishing policies and
guidelines that ensure the protection of personal data
handled by the Group. This includes implementing data
protection measures in codes of conduct and security
protocols for third parties entrusted with personal data
processing. They also oversee the inclusion of privacy in all
company documentation and raise employee awareness
about the importance of proper data processing through
training and communication initiatives. Additionally, they
collaborate with cybersecurity and information security
teams to manage any security incidents that might affect
personal data.
This function also acts as a point of contact for managing
complaints and requests from personal data holders, Data
Protection Authorities, and other market players.
The personal data protection compliance plan provides for
assigning roles and responsibilities in this area to the first
and second lines of each Company for the responsible
management of personal data and the applications that
process such data. It also includes a register specially
designed for this purpose, which contains all the data
processing carried out by the Group and must be updated
periodically. Compliance with security and data protection
policies and controls applies to all Enel Chile’s employees
and third-party contractors.
The data processing that presents the most risks is subject
to an assessment of the impact that their breach may
entail on the rights and freedoms of the data subjects. This
evaluation is carried out through methodologies designed
following international standards.
Furthermore, the Company is actively enhancing its service
channels to serve personal data holders better and meet
the upcoming regulatory requirements. These efforts aim
to align with the anticipated release of the new Personal
Data Protection Act in 2024.
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During 2023, no claims were registered
based on violations of the
customer privacy at Enel Chile is not even
they recorded fines.
A security breach was recorded that
as addressed and resolved quickly, by
which had no consequences for the
affected data holders. For the
above, it was not necessary to notify the
affected.
Customers' personal data is used to provide electricity
supply services, and the legal basis that legitimizes this
processing is the law, specifically the Technical Standard.
The customers' consent is requested in advance to
process the data for commercial or advertising purposes.
Personal data is processed as long as the supply
relationship exists in the first case and the second, as long
as the customer does not revoke their consent or object
to their data being processed for commercial purposes.
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CI
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E
New life cycles
Each solution aimed at
preserving the value of an
asset at the end of its life
cycle through reuse,
regeneration, upcycling or
recycling, in synergy with
the other pillars.
Circular Inputs
Production and use model
based on renewable inputs
or inputs from previous life
cycles (reuse and
recycling).
Extension of useful life
Asset or product design
and management
approach aimed at
extending their useful life,
for example, through
modular design, facilitated
repairability, predictive
maintenance.
Product as a service
Business model in which
the client purchases a
service for a limited period,
while the Company
maintains ownership of the
product, maximizing its
utilization factor and useful
life.
Sharing platform
Common management
systems between several
users of products, goods
or skills.
Circular Economy
In a world with a circularity rate of only 7.2%, according to
the latest Circularity Gap Report, the circular economy is a
critical element in the transition to a sustainable economic
model thanks to its integrated approach to the use of
natural resources, whether they are renewable sources,
fuels, or raw materials.
The Group's vision is based on five concepts, the operation
of which is articulated through three primary levers:
circular design (based on the choice of input materials,
planning focused on extending the useful life, maximizing
the asset's utilization factor, and the recoverable value
at the end of its life), the methods of using the asset (i.e.
sharing, product-as-a-service) and closing the loop (i.e.
reuse, recycling, and reusing recovered materials as a new
circular input).
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Featured initiatives
• Circular Economy Course: in October 2023, the circular economy course was updated. It is
an 8-module program, 100% online and in an on-demand format so that all the company's
employees can learn from the strategies and business models offered by the circular
economy and integrate them into their activities.
• Power G: an annual program aimed at people dedicated to power generation whose
objective is to value and share internal skills and experiences, capture the value, and improve
our business. On this occasion, we incorporated the Best Contribution to the Circular
Economy category, which broadened the sustainability perspective, reinforcing the culture
and promoting circular practices.
• Application for Recognitions in Circular Economy Issues: in 2023, the Enel X Project of
"Rooftop Alive, Hotel Mandarin Oriental" and Energy Box Project of Sierra Gorda" were
applied to the Circular Territory Contest of the Ministry of the Environment, Sofofa and
Corfo, obtaining the recognition of "Outstanding Participation," in the case of the Energy
Box Project. Furthermore, both projects were nominated for the "Conecta Recognitions of
the Chile (UN) Global Compact Network."
• Seminars: The first open webinar, with three speakers and more than 100 attendees, was
held to disseminate experiences on sustainable infrastructure. Internally, the concepts of
the circularity strategy were surveyed through various dissemination and training activities.
Main initiatives
• Circular Awards 2023: Enel Chile sponsored and presented the first national circular economy
award that recognized the integration of circular strategies into the solutions to the country's
main challenges, such as access to water and energy, social gaps, emission reduction, and
materials recovery. This award aroused great interest, as it inaugurated a space to recognize,
exhibit, and replicate the more than 170 project applications from large companies, SMEs,
and civil society organizations, as well as the talented winners in each category.
The circular model has been implemented in all of the
Group's activities to redesign the value chain, reduce the
consumption of resources and the associated social and
environmental impacts, and make the business model
more competitive by lowering geopolitical and price
risks linked to the acquisition of raw materials, especially
commodities.
As a strategic accelerator of its sustainable business model
in the circular economy, since 2020, Enel Chile has been
implementing an action plan focused on four concepts:
• Cultural change management;
• Linkage to the ecosystem;
• Value chain transformation; and
• Circularity metrics.
Cultural Change Management
To improve Enel Chile's circular economy strategy, cultural change management is an ongoing activity that involves
developing knowledge and disseminating it throughout the Company's value chain.
Linkage with the Ecosystem
By its very nature, the circular approach is open, seeking
the continuous collaboration of the various stakeholders
in an expanded ecosystem (suppliers, customers,
institutions, innovation ecosystem, etc.) to define the tools
and processes necessary to implement and accelerate the
circular transition.
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• SOFOFA: This alliance seeks to develop joint initiatives with the private sector to promote
and integrate best practices on key issues for business sustainability. Outstanding projects
of this alliance were the Practical Guide for Business Circular Management, Creating Value
in the Territory (communities at the center of the business strategy), and Open Companies,
among others.
• Eurochile Business Foundation: Enel Chile is promoting the study, design, and implementation
of a solar panel recycling pilot project for the country’s northern macrozone with a view to
solving one of the great circularity challenges for the renewable energy sector.
• Circular Cities: This initiative promotes the vision of circularity for cities, their potential to
improve people's quality of life, and the real possibility of moving towards Zero Ambition.
This year, “Circular Cities in Latin America and the Caribbean” was published, with the
participation of the municipalities of the main cities in the region, reviewed success stories
and presented a guide of priority steps for local circularity in cities with a focus on local
governments, to support medium-term transition processes.
• Participation in events: in 2023, one of the most important was the participation in the
"Circular Fest2023" Event. It was held in the country’s five cities within the framework of
promoting "Circularity” and contributing to the presentation of "The Role of Communications
to promote the Circular Economy" in Santiago. Also noteworthy was Enel's participation in the
"Santiago Circular Economy Hotspot," an international event that aimed to raise awareness
of the central principles of the circular economy that each country has implemented at
the environmental, business, and social levels. In this case, Enel participated in the "Public-
Private Articulation for Circularity" and "Success Stories – Transaction to Circularity" panels
in addition to having a dedicated space during the four days of the event to talk to attendees
about the circular economy, smart cities, and the actions required to improve people’s
quality of life.
Value Chain Transformation
As mentioned above, Enel Chile has been transforming
its approach toward redefining a sustainable value chain.
From procurement to end-of-life management, the
circular economy strategy promotes sustainable practices,
optimizing resources and minimizing environmental
impacts.
To effectively implement this strategy, it was essential to
re-examine the value chain from the procurement phase
to the end of the product life. To this end, Enel Chile
implemented the Circular Procurement Strategy, with the
main objective of improving the circularity of the products
and services acquired by the Company. For more details,
see the Circular Procurement Strategy section in this
chapter.
Following the implementation of the Extended Producer
Responsibility Law (EPR Act), Enel and the Corporation
of the collective system of containers and packaging
management "Resimple" have signed contracts to provide
services to meet the collection and recovery targets for
containers and packaging. These agreements guaranteed
compliance with the relevant regulations in 2023.
In 2023, Enel Chile successfully implemented circular
economy practices across all its activities. Each segment
has a dedicated team that focuses on coordinating and
tracking initiatives, allowing for the implementation of
unique strategies to maximize benefits based on their
specific priorities. The following are a few of the identified
projects and initiatives.
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Distribution and grids
Enel Chile, through its subsidiary Enel Distribución Chile, has defined a global action plan aimed at reducing emissions
by 55% by 2030, halving the consumption of virgin materials, and producing economic benefits such as savings or new
revenues. In 2023, this strategy was accomplished thanks to the following activities.
Sustainable Infrastructure
This model aims to build new distribution infrastructure while minimizing the consumption of materials, waste generation,
and impacts on the community and the environment. In this context, a conceptual scheme was developed to implement
civil works using recycled aggregates, a viable alternative due to its widely demonstrated equivalence with natural
aggregate, both in cost and technical characteristics.
Grid Mining
Enel Distribución Chile is committed to maximizing the value of unused materials through a Grid Mining approach. This
innovative strategy involves recovering and repurposing metallic materials through a reverse logistics system, ultimately
benefiting the market. Our efforts in this area focused on optimizing the recovery of medium and low-voltage transformers,
conductors, cables, and other metallic materials, building upon the progress made in previous years. Furthermore, efforts
were consolidated in recycling concrete posts and incorporating recycled aggregates into producing new posts. This has
made it possible to recover 745 tons of network materials, recycle nearly 5 thousand tons of concrete and manufacture
132 new posts with recycled aggregates.
Social Circular Economy
In line with the principles of circular economy, the company integrates the principles of sustainable inputs and new life
cycles in managing community projects, constantly seeking to impact people, territories, and the environment positively.
In 2023, almost 5 tons of wood from Enel Chile's operations and other local players were revalued to feed the projects
of Ecocarpentry and Circular Trades, Let's Add Energy for Climate Action and Energy Security in Camps, also installing
technical capacities to develop green jobs for a local circular economy.
Generation
NewLife Program
In 2023, this program was continued, which aims to reuse equipment, supplies, and spare parts in disuse or with overstock
within the different Enel Chile plants. This effort seeks to maximize internal efficiency and market elements from dismantled
plants to third parties, thus strengthening the circular economy and promoting environmentally responsible practices.
Metal recovery
In 2023, Enel Chile carried out proactive initiatives to recover metal scrap, recognizing its potential in the circular economy.
By implementing efficient processes, the company responsibly manages waste and extracts value from scrap metal,
transforming it into valuable resources.
Water Efficiency
Enel Chile has implemented an advanced strategy to maintain and clean its photovoltaic panels, highlighting its
commitment to water efficiency and sustainability. The innovative dry-cleaning technique and the implementation of best
practices are integral parts of this strategy, minimizing water consumption.
Enel X
Wood Stove Replacement Program for Air Conditioning
Homes are equipped with free air conditioning units to replace wood-burning stoves, ensuring families have a more
comfortable living environment. Various companies contribute to its funding through an emissions compensation
mechanism, aiming to offset their operations. Since the program was initiated in 2017, a significant number of replacements
have been made (21,575), resulting in the removal of 437 T/PM2.5 and 55,890 T/CO2e. Additionally, a considerable 1,935
tons of scrap metal from wood-burning stoves have been successfully recycled in collaboration with Aza-Sustainable
Steel.
In 2023, a total of 5,164 replacements were accomplished, resulting in the removal of 103 tons of PM 2.5 from the
environment. This success has a direct positive impact on reducing the reliance on firewood in the country, which in turn
contributes to improving air quality in urban areas.
Circularity metrics
Since embracing the circular approach, the Company
has placed great importance on measuring this model's
environmental and economic benefits. Recognizing
that sustainability and economic competitiveness go
hand in hand, the Company understands the need for a
measurable approach. The Enel Group has implemented
its system to evaluate the effectiveness of products
and processes, known as the CirculAbility Model©. Our
company has developed a unique methodology that
measures the material and energy flows required for
our operations. This methodology also integrates all five
components of the circular economy strategy.
During the World Economic Forum 2023 in Davos, the
Enel Group introduced a new metric called Economic
CirculAbility©. This metric evaluates the Group's global
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Business segment
Virgin
Input avoided (t)
Water saved
(thousands of m3)
Energy Saved
(MWh)
Materials
Recovered (t)
Emissions Avoided
(tCO2e)
Generation
-
847.7
-
862.4
-
Distribution y grids
52
-
-
745
-
Enel x, staff & serv
-
-
-
465
9,295.20
EBITDA and compares it to the resources consumed
across the entire value chain of its different business
activities, including fuel and raw materials. Additionally,
the Group has set a goal to double this measure by 2030
in relation to 2020, leading to a significant reduction in
resource consumption relative to EBITDA. Enel's adoption
of a circularity indicator and its ambitious target sets it
apart as a global leader in this area.
Below is a summary of the main benefits of the projects
developed by each line of business in 2023:
The complete integration of the circular economy into Enel
Chile's business model represents a key strategic evolution
to mitigate environmental risks and achieve efficiencies,
starting from minimizing the extraction of non-renewable
resources, such as raw materials and fossil fuels, and thus
contributing to environmental sustainability and achieving
sustainable development goals.
The circular economy in Enel Chile's business model is
positioned as a key pillar for operational efficiency and
profitability while acting as a catalyst for sustainable
development and environmental protection. This transition
towards an increasingly circular and regenerative
approach reflects Enel Chile's understanding of its role as
an agent of change, seeking innovative and sustainable
solutions to contemporary environmental challenges.
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FOCUS ON
PEOPLE
Over the years, Enel Chile's business has evolved in line
with social changes, and to navigate this transition, the
Company has driven a cultural evolution focused on its
most important asset, its people, and, in particular, its
workers. A cultural evolution in which people are at the
center of a virtuous triangle based on well-being, driven
by motivation and fostering sustainable and lasting
results.
In 2022, the People Statute was launched, a protocol that
values the individual as a key player in an ecosystem in
which the Company and unions work together to create a
healthy, safe, motivating, and attractive workplace.
Listening, sharing, participating, and passion are the key
words in Enel Chile's new working method. New hybrid
working methods, such as smart working and innovative
organizational models, create a system that promotes
a place where everyone feels comfortable in the latest
work environment. For the Company, its employees are
its primary stakeholders, and it is committed to their
development and promoting a culture of well-being.
For this reason, the Company has implemented a change
of pace together with its employees that begins with a
new cultural approach based on the emotional transition.
Enel Chile adopted the Soft Leadership model to project
the Company in this new scenario better. Gentleness,
understood as sincere attention and interest in the needs
of others, offers the opportunity to create a virtuous
mechanism to care for the space to form relationships
based on listening and dialogue, with the aim of building
and keeping a work environment in which motivation and
well-being generate productivity and sustainability.
People management and development at Enel Chile
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WORKFORCE
2,077 Total number
of workers
2,158 in 2022
GENDER
AGE
515 women
530 in 2022
1,562 men
1,628 in 2022
1,474
between 30 and 50
years old
580
› 50 years old
63
‹30 years old
(*) For more details on the workforce, see Chapter 6, “Main Indicators."
Workforce
As of December 31, 2023, Enel Chile's consolidated
headcount totaled 2,077 people, a reduction of 81 people
compared to the end of 2022, reflecting the impact of
the balance between new hires and departures during the
period.
People's Well-being
Stimulating and sustaining personal well-being, both at
work and in private life, reinforces a sense of belonging and
makes work more sustainable. With this in mind, the Enel
Group defined a Global Wellbeing Program that involves a
diverse and multicultural team aimed at all the employees
that make up the Group around the world and represents
both a physical and digital experience. This program is
based on eight concepts that have an impact on overall
satisfaction, considering the centrality of people:
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31 As per the regulations stated in article No. 195 of the Labour Code in Chile, employees are entitled to a six-week pre-childbirth leave and a 12-week post-chil-
dbirth leave. The father is eligible for a paid leave of five days when a child is born. He can take the leave continuously from delivery or distribute it within the
first month after the birth. Regarding parental postnatal leave, as stated in article No. 197 bis of the Labour Code, employees have the right to take a leave of 12
weeks on a full-time basis or 18 weeks if they return to work for half a day. This leave can be transferred to the father, allowing for up to six weeks of full-time
leave or up to 12 weeks on a part-time.
Global
Wellbeing
Framework
Psychological
Feel good about
yourself
Social/Relational
Feeling connected
and belonging to
a community
Physical
Inspiration to take care
of your physical wellbeing
Work and Life
Balance between work
life and personal life
Economic
Sense of satisfaction
with their economic
situation
Protection
Feeling safe and
protected from
undesirable events
Ethical
Sense of value,
meaning, and purpose
Cultural
Feel motivated with
growth and learning
Dialogue with workers
As part of our commitment to fostering a culture of open
communication and supporting the development of our
employees and organization, we carried out the Open
Listening survey. This survey allows us to gather valuable
feedback. In 2022, the survey achieved an impressive
participation rate of 71.6% among our employees, with an
outstanding level of commitment and job satisfaction at
92.5%.
In 2023, a webinar was held to share the outcomes of
Open Listening and discuss how the Global Wellbeing
Program is addressing them. The program aims to provide
tools and services that improve people's well-being and
satisfaction.
Maternity Leave and Parenting Program
The Company has a Parenting Program, which consists
of actions that seek to promote a culture that values
fatherhood and motherhood, involving family diversity,
including same-sex families. It consists of nutritional
guidance for parents during pregnancy and the
breastfeeding period, as well as education on various
issues associated with parenting (breastfeeding, emotion
management, new family dynamics, among others).
Parents also receive information on the main procedures
and benefits during this period.
This program provides leave for parents to attend medical
check-ups with their children up to six months after birth.
With regard to employees who become parents, Enel Chile
grants a benefit additional to the five days of postnatal
leave legally in force31, which consists of an extra day,
depending on the Group Company to which the worker
belongs and the union or individual agreement to which
they are attached.
Benefits
The Enel Chile Group has a benefits plan for the people
who work in the Company and their families. Among the
most important and valued are:
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Benefit
Detail
Type of employment
relationship
Supplemental Health
Insurance
It includes but is not limited to, coverage for outpatient and hospital medical benefits,
medications, and dental treatments. It also considers catastrophic coverage on high-
cost medical expenses.
People with an indefinite,
fixed-term contract
Isapre Alliance
It allows access to the following benefits:
• Direct payment on behalf of the Company of the benefits for incapacity to work on
the usual date of payment of remuneration, without having to complete the Isapre
collection procedures.
• Medical Checking Account: loan under special conditions for co-payments or a
fraction of health expenses that Isapres do not cover
People with an indefinite,
fixed-term contract
Supplemental
Allowance for Work
Disability
The Company pays the full monthly remuneration to those on leave due to incapacity
to work, completing the amounts that by law are not reimbursed by the Social Security
Health Institutions if the remuneration is higher than the taxable limit. Furthermore, in the
case of medical leave with a duration of 10 days or less, the payment of the remuneration
corresponding to the first three days is made by the Company.
People with an indefinite,
fixed-term contract
Financial support
Enel Chile provides benefits for different groups of people, with financial support
for mothers and fathers of studying children through loans to finance their higher
education, scholarships, school bonuses, and incentives for students for their academic
performance, among others.
People with an indefinite,
fixed-term contract
Activities aimed at
promoting physical care
and well-being
The Company implemented a program to promote the development of healthy habits,
sports, and health through the Gympass smartphone app. Those who work at Enel can
access a range of activities, from online group fitness classes or with a personal trainer,
access gyms across the country, along with other apps that help improve nutrition and
sleep quality, practice meditation, and take care of personal finances. This service is
available to workers and members of their inner circle at a preferential cost.
Other activities include annual preventive examinations, follow-up and medical guidance
after the preventive examination, nutritional counseling, and communication campaigns
associated with disease prevention and immunization campaigns.
People with an indefinite,
fixed-term contract
Recreational and social
connection activities
The Enel Chile Group offers alternatives to workers and their families that promote social
interaction and connection and its employees' commitment and corporate identity. The
Company also offers individual psychological care to all employees at Enel Chile and their
families to address various personal or work-related issues.
Employees can also use the stadium facilities for family recreational and camaraderie
events.
People with an indefinite,
fixed-term contract
Parenting Program
This program benefits parents who accompany their children throughout the first cycle.
Some of them are:
• Parenting Talks·
• Nutritional Counseling·
• Physical Activity Program ·
• Permission to attend medical check-ups with newborns
• School Benefits·
• Recreational activities for families
• Lactation rooms set up to promote maternal nutrition
People with an indefinite,
fixed-term contract
Health Benefits
Throughout 2023, the Company carried out worker health and safety care initiatives.
Preventive examinations and medical monitoring were carried out throughout the year.
Preventive campaigns for workers' health and influenza vaccination campaigns were also
implemented.
People with an indefinite,
fixed-term contract
Psychological Well-being
Enel Chile employees can access the psychological counseling service free of charge
through our alliance with RAE, which is extended to their family group. Through this
program, various issues of a personal nature (anxiety, sleep problems, family dynamics,
etc.) or work (change management, team dynamics, among others) can be dealt with
confidentially.
As requested by the areas that might require it, team interventions have been carried out
by an expert in emotional management in the workgroups (grief, tools to face difficult
moments, and stress management, among others).
People with an indefinite,
fixed-term contract
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Benefit
Detail
Type of employment
relationship
Holistic well-being
For Enel Chile workers, the RAE (Employee Support Network) program was expanded in
2023 to include new services to support and guide different issues. Currently, employees
and their closest circle can access psychological, social, legal, financial, nutritional, social
security, telemedicine, family mediation, and remote veterinary consultation.
People with an indefinite,
fixed-term contract
Global Wellbeing
Program
In 2023, Enel Chile's employees were offered the Global Wellbeing Program, which aims
to support and encourage people to take the lead in their well-being through tools that
allow them to improve their level of well-being and work-life balance. This program
rewards well-being behaviors through the Wellbeing Rewarding Program.
People with an indefinite,
fixed-term contract
Training and development
Training
The Enel Chile Group's business is constantly evolving,
and its strategy for a climate transition requires acquiring
new skills. It is crucial to consistently provide training to
employees to enhance their skills and performance in
their current roles. Additionally, implementing strategies
for upskilling will help develop training and empowerment
programs to improve existing skills. In contrast, reskilling
strategies will enable individuals to acquire new skills and
abilities to take on different positions.
Within the Enel Group, which prioritizes people, it is
crucial to discuss Lifelong Learning, a philosophy that
the Company actively encourages among its employees
to foster personal growth and cultural enrichment. Enel
Chile has implemented a Training Policy to align with this
objective. This policy establishes the overall framework
for planning and implementing training activities across
the Group's companies. These factors must contribute to
developing and achieving Enel Chile's values and objectives
while facilitating employees' personal and professional
growth.
In 2023, the Company trained a total of 2,058 people,
corresponding to 98.4% of the Enel Chile Group's total
staff. 91,737 hours of training were delivered, with an
average of 45 hours per worker. This was possible due to
the dissemination of the new E-Ducation and the Learning
Time campaign, which allowed each worker to schedule
a minimum of 4 hours of training through the platform,
coordinated with their management, promoting training
according to interest. from each person. For more detail on
the average training hours of workers by sex and function
category, see Chapter 6 “Main Indicators”.
In line with its commitment, Enel Chile incurred costs
related to training and development activities for a total
of Ch$ 188 million in 2023, which represents 0.004% of
annual revenues from ordinary activities at a consolidated
level.
In addition to training and awareness initiatives to
accompany hybrid forms of work, the Company maintained
its training programs related to digital skills, proposing
that workers focus on content dedicated to improving
their digital skills and agile ways of working.
People Development Programs
In 2023, the Company implemented the Open Feedback
Evaluation (OFE) program, a global performance evaluation
system allowing continuous and comprehensive employee
feedback. This initiative fosters ongoing communication
throughout the organization. The OFE model has three
interconnected dimensions: Talent, Generosity, and Action.
During this process, 88% of people who meet the eligibility
criteria are evaluated. These criteria include having
an indefinite employment contract and being actively
employed for at least three months within the year, either
at Enel Chile or its subsidiaries.
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Open Feedback
Evaluation
Global perormance
evaluation system
Talent
Identification of personal
skills based on Enel’s 15
competencies.
Action
Assignment and evaluation
of objetives.
Generosity
It measures the ability to
interact and deal with the
network.
Q
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al
it
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ti
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e
Q
u
a
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ti
t
a
ti
v
e
Q
u
a
n
t
it
a
ti
v
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1
2
3
To promote and develop individuality, three mechanisms
are available to contribute to development actions for
Total Rewarding programs and Succession Plans:
• Coaching: a thoughtful and creative companionship
process that inspires people to maximize their personal
and professional potential. This is a Transform-Action
process where a coach accompanies a Coachee (internal
client) on a path of discovery and development of one's
potential and competencies to achieve the objectives
identified by the Coachees themselves.
• Mentoring: a form of learning based on the support
and guidance of a peer with extensive experience and
knowledge (Mentor) to support colleagues with less
experience in that area (Mentee) to help them reinforce
and develop new competencies, skills, and attitudes.
• Job Shadowing: a voluntary process of accompanying
and exchanging experience between two colleagues: a
Host and a Guest. The host organizes their activities and
relationships with the team, sharing with the guests the
content of their role, the daily activities, the technical
capabilities of the role, and the transversal skills. It is an
opportunity for reciprocal learning and, simultaneously,
a great tool to get to know what people from other areas
and/or countries are doing, expanding the networks and
contacts within the company.
Internal mobility
Starting in 2020, the Company introduced the Total
Reward process to prioritize the growth and well-being of
its employees. This initiative aims to recognize and reward
employees' success by providing significant professional
and personal development opportunities. This tool
identifies the compensation, growth, mobility, and training
efforts included in the full package provided to employees
as part of a proactive retention process.
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These initiatives have not only brought the wide range of
diversity and valuable experience of Enel Chile's employees
to the vacant positions but have also helped improve the
company's presence on prominent external recruitment
platforms. This has been achieved through a coordinated
content strategy and an enhanced user experience. In
2023, workplace mobility was promoted, which enabled
individuals to embrace new professional opportunities,
upgrade their abilities, and establish more equitable
programs. Internal candidates accounted for 29% of the
filled vacancies.
Succession and handover plan
The primary objective of the Succession Plan is to
guarantee the uninterrupted flow of talented individuals,
their expertise, and their abilities to lead and oversee the
operations of the Company effectively. This procedure aims
to foster and promote the growth of possible candidates
for senior management roles. By doing so, the Company
guarantees that it always has qualified individuals ready
to step into these positions in the case of any changes
among the current managers.
In light of the relevance and impact of this activity, the
Annual Management Succession Plan has implemented
new selection criteria that prioritize diversity and strive
for greater inclusiveness. More precisely, a parameter was
implemented to guarantee that a certain proportion of
successors be women, which is mandatory. Furthermore,
additional recommended criteria are established to
broaden the scope of the candidate search for non-
managerial roles and to ensure the inclusion of applicants
from different walks of life.
Diversity and Inclusion
For Enel Chile, inclusion, well-being, commitment,
and value creation are fundamental to dealing with
its employees. The Company believes that respect
for and promotion of the principles of non-arbitrary
discrimination, equal opportunities, and inclusion are
fundamental values in developing its activities, creating
an inclusive work environment in which each person can
develop their potential and maximize their contribution.
Enel Chile's commitment to diversity and inclusion began
with the publication of its Human Rights Policy in 2013,
the adoption by the Enel Group in 2015 of the seven
Women's Empowerment Principles (WEPs) promoted by
the United Nations Global Compact and UN Women, and
the publication in 2017 of the Diversity and Inclusion Policy.
The latter is based on the fundamental principles of non-
arbitrary discrimination, equal treatment, and dignity for all
forms of diversity, inclusion, and work-life balance. These
principles are milestones to develop specific initiatives
that promote attention to and expression of individuality,
a culture of non-judgmental inclusion, and a coherent
combination of talents, qualities, and experience, creating
value for employees and the Company's business.
This approach has been ratified in the People Statute,
a protocol of intent signed by the company in 2022. It
reflects the Enel Chile Group's wish to evolve, which lays
the foundations for more collaborative work between the
Company, its workers, and its representatives through
respect for diversity, the contribution of value, sharing
experience, and strengthening relations with the various
social partners. People are the key to success and Enel
Chile Group’s true competitive advantage in the digital,
cultural, and energy transition processes.
The Company's commitment to respect for human
rights is the common thread of its activities and is fully
integrated into the purpose and all corporate values. Enel
Chile promotes respect for all internationally recognized
human rights in the scope of its commercial relations and
requires contractors, suppliers, and business partners to
adopt them.
In recent years, efforts have been made to raise awareness,
disseminate, and strengthen a culture of inclusion at all
levels and in all settings within the organization through
communication campaigns and local and global events
focused on various subjects. The most important initiatives
carried out in 2023 included actions aimed at a systemic
impact on multiple aspects of the gender gap and
disability inclusion, as well as initiatives related to cultural
diversity and awareness of inclusion issues.
In particular, the main initiatives developed in 2023 were:
• Disability-focused educational spaces, including an
introduction to the different types of disabilities, a
discussion and guidelines on how to acquire disability
credentials, and the distribution of multiple milestones.
• Enhancing connections with supporters and networks
that promote sexual diversity and gender equality.
• Establishing an intranet section devoted to matters of
diversity and inclusion by the organization.
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People with disabilities (*)
2023
2022
2021
2020
Enel Chile and its subsidiaries
11
13
14
17
(*) For more details, see Chapter 6, "Main Indicators".
Establishing and evaluating objectives is integral to
building an inclusive culture at Enel Chile. This approach
can be summarized as an action plan evaluated using a
comprehensive set of Key Performance Indicators (KPIs)
and subject to commitments approved by the Company's
management. These commitments include achieving
gender balance in recruitment procedures, improving the
presence of women in senior and middle management
positions as well as in succession plans, and advocating
for programs that encourage the inclusion of employees
with disabilities throughout their career progression.
In terms of gender equality, the Company's strategy is
organized into several lines of action. In terms of women in
senior management and management positions, both the
number and percentage of women have shown growth,
increasing by 4.0 percentage points in 2023 (23.6% in
2023 and 19.6% in 2022). Actions to value the contribution
of women throughout the organization, and not just in
management positions, have also continued and the
effects of the efforts will be better reflected in the medium
and long term, due in part to generational dynamics.
People with disabilities
In the area of disability, Enel Chile provides equipment,
services, working methods, and various initiatives to create
an inclusive working and relationship climate for all, which
offers full autonomy at work regardless of disability status.
The Company carries out a series of initiatives that seek
to eradicate possible prejudices in relation to people
with disabilities (PeSD) for their recruitment, training, and
career development. The aim is for all people to perceive
that they have the same opportunities and are on equal
terms to develop professionally.
In terms of numbers, the data associated with compliance
with the 1% of persons with disabilities established by Law
No. 21.015 on Labor Inclusion are as follows:
The Enel Group has made a public commitment to take
action on disability by joining the global "Valuable 500"
initiative. At the same time, Enel Chile has been part of the
Sofofa Inclusive Companies Network (ReIN) since 2018,
a group of 40 companies that seeks to promote work
inclusion of people with disabilities.
Pay Equity
Although at the end of the 2023 financial year, Enel Chile
does not have a documented gender equality policy in line
with the UN Sustainable Development Goals, specifically
SDG 5, the Company is committed to pursuing an equitable
compensation policy among its workers.
The Company periodically conducts a salary review of
its employees, for which it has implemented a position
evaluation methodology that allows it to establish the
relative value of each job according to their importance
and contribution to the organization's interests. That way,
the management can objectively compare salaries with
the reference labor market, considering both gender and
peer equity criteria.
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% Covered by Company
2023
Enel Chile(1)
73%
Enel X Chile
81%
Enel Generación Chile and Subsidiary
75%
Enel Green Power Chile and Subsidiaries
79%
Enel Distribución Chile and Subsidiary
94%
Total
81%
(1) Considers the workers of the parent plus one Enel Mobility Chile Spa worker.
WAGE GAP
86 %
Average
86 % in 2022
91 %
Median
92 % in 2022
(*) For more details, see Chapter 6 “Main Indicators”
Right to trade union representation and collective bargaining
The Company establishes fair and favorable working
conditions for its workers, in line with what is defined by
current legal regulations, through collective contracts
and instruments arising from the collective bargaining
processes between unions and the Company. Collective
bargaining is an instrument validated by both parties,
facilitating collaborative efforts, accentuating the positive
social impact on the organization, and highlighting the
good practices it promotes in matters related to freedom
of association and fair compensation.
The measures in force to inform workers about their
trade union rights are implemented through the teams
in charge of managing people and/or through the trade
union leaders.
The formal channel to receive complaints is the Ethics
Channel. Similarly, in the event of potential labor or trade
union rights violations, reports are obtained from the
workers through the ethics channel and other means,
such as e-mails and letters, which are confidential and
governed by internal procedures. In 2023, there were no
complaints of violations of the Code of Ethics in trade
union matters, labor rights, or discrimination.
The Internal Regulations on Order, Health, and Safety
contain a detailed description of the procedures for
complaints of workplace harassment, sexual harassment,
and any other cause, as well as the investigation
procedures.
Collective bargaining agreements are prepared according
to the following guidelines, which are based on references
from the International Labor Organization (ILO):
• Respect for and protection of freedom of association
and the right to organize (ILO C87).
• Respect for the right to collective bargaining (ILO C98).
• Respect for and protection of the workers' representative
(ILO C135).
• Prevent discrimination against workers.
• Local labor laws.
• Guarantee the effective exercise of trade union rights in
the workplace.
The main issues covered by the current collective
agreements are benefits and conditions linked to work,
such as productivity bonuses, overtime, Christmas
bonuses, and welfare benefits related to health, education,
food, and vacations, among others.
In 2023, 81% of workers were unionized under collective
agreements. Workers at Enel Chile and its subsidiaries are
free to associate collectively, forming part of one of the
existing unions in each company.
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Health and Safety
Enel Chile considers people's health, safety, and
psychological and physical integrity the most valuable
assets to take care of in all areas of life. It is from this
perspective that Enel Chile is committed to developing
and promoting a solid health and safety culture that
encourages all its operations to increase awareness of
risks and promote responsible behavior when it comes to
carrying out work activities with quality, without accidents,
and protecting the health of all people who work with and
for Enel Chile.
The aim is to achieve "Zero Accidents" for the Company's
workers and contractors. To accomplish this, safety culture
is permanently promoted, and a work plan focused on
four concepts has been put in place: operational control,
digitalization and process analysis, culture and training,
and safety culture. Each decision focuses on permanently
protecting people's health, always employing a preventive
approach that aims to minimize risks.
Enel Chile applies the Stop Work policy in line with the goal
of Zero Accidents established by the Enel group at a global
level. Both workers and contractors must immediately
stop any work that may put their own or others' health
and safety at risk, or that may damage the environment.
It is a practical application of the Safety-First principle,
and for it to be fully effective, it is clearly established that
anyone who puts it into practice in good faith may not be
sanctioned for any reason.
Health and Safety Governance
Enel Chile has a Health, Safety, Environment and Quality
(HSEQ) department that supervises, guides, coordinates,
and promotes the Company’s’ good practices. Furthermore,
each business line has its own HSEQ management, which
reports directly to the Company's Board of Directors, who
oversee health and safety-related plans and activities.
HSEQ management is responsible for the Health and
Safety Management System certified under the ISO 45001
international standard "Occupational Health and Safety
Management System - Requirements and Guidance for
Use." This certification covers 100% of distribution facilities
and processes. In the case of the generation business, it
also has the accreditation of its processes and facilities,
except for the assets incorporated during the most recent
period, which will be certified in 2024. Enel X also has this
certification for all its processes.
This management system focuses on identifying hazards,
the qualitative and quantitative assessment of risks,
planning and implementing preventive and protective
measures and verifying their effectiveness, implementing
any corrective actions, and preparing operating teams.
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0
0.05
0
41
Fatality
rate
Accident
Rate
Rate of
Occupational
Diseases
Average days
lost per
accident
(*) Fatality rate per hundred thousand workers, accident rate per hundred workers, rate of occupational
diseases per hundred workers and average number of days lost due to accident during the year.
Health and Safety Risk Management
In terms of incident detection, analysis, and management,
the
Group
follows
Policy
106
-
Classification,
communication, analysis, and reporting of incidents,
which establishes the roles and procedures that guarantee
the timely notification of accidents, the analysis of their
causes, and the definition and monitoring of improvement
plans depending on the type of event.
The Company applies an emergency management
system that evaluates the impact of the critical event
using a standard three-level reference scale: high-
impact events are centrally controlled, while those with
a medium or low impact level are managed within the
specific organization. The Crisis Committee is in charge
of defining strategies and actions to deal with the critical
event, as well as coordinating activities to contain property
damage, profitability, and reputation. Furthermore, a
security process has been established for personnel
traveling abroad, under which employees are provided
with information about the destination country and the
conditions that may pose risks to their health and safety.
Health and Safety Labor Relations
Enel Chile promotes social dialogue and the participation
of workers' representatives to consolidate safety culture
and foster behaviors consistent with the principles that
inspire the Company's policies.
Executives from several management divisions of Enel
Chile engage in multiple committees. These committees
aim to oversee initiatives and programs linked to employee
health and safety at a national level, following the
company's numerous lines of business. Each Company's
business line has joint psychosocial and occupational risk
committees. The joint committees, with representatives
from all employees, are responsible for cultivating a safety
culture and conducting inspections and potential accident
investigations.
Digitalization of Safety Management
The primary digital tool utilized by Enel Chile for safety
management is called Wise Follow. This makes it possible
to implement operational controls by uploading necessary
documents related to personnel, equipment, and vehicles.
It guarantees compliance with the existing legal framework
and facilitates online monitoring and reporting processes.
Using a mobile application improves the efficiency and
accuracy of various operational procedures.
Furthermore, the Company has various corporate digital
tools that help document evidence, formulate action
plans, and monitor progress. These tools permit swift data
retrieval to generate reports, conduct analysis, and gather
insights and best practices within the organization and in
collaboration with other countries within the Enel Group.
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32 NERC: North America Electric Reliability Corporation. CIP: Critical Infrastructure Protection.
In line with the goal of zero accidents, the Enel
Chile Group has also carried out a series of
dissemination and awareness campaigns in recent
years, including the Global “Safety is Achieved
by All “Campaign carried out in 2023, which is
based on the concepts of exchange, protection,
attention, responsibility, awareness, and respect,
which it seeks to promote among the Company's
employees.
Other important campaigns include the following:
• Awareness campaign “No More", awareness-
raising activities focused on fatalities at the Enel
Group level.
• Campaign to carry out Cross Risk Course,
Prevention, sensitize all workers about the
importance of paying attention to daily
activities, especially those that are done almost
"automatically." This is essential to advance
safety culture.
• Safety Campaign “Taking care is an act of love”,
activity carried out in the week of security with
the aim of raising awareness on how to create
and promote a safety and health culture can
help reduce the number of deaths and injuries
related to work.
• Environment Campaign “For a future
sustainable”, an activity carried out during
Environment Week with the participation of
the entire Enel Chile Group where workers
committed to building a greener future.
Physical Security
Enel Chile is considered a strategic company per the
supreme decree issued by the Ministry of the Interior
and Public Security. The Company has established a
regulatory structure that guarantees compliance with
private security matters, as mandated by Law 3.607 and
its corresponding regulations. Furthermore, Enel Chile
has recently implemented the NERC-CIP32 regulations of
the National Electricity Sector to mitigate cybersecurity
risks. This was done in response to the critical operations
required for the country's development.
Promoting a health and safety culture
To support the change process and guarantee the
dissemination of a strong safety culture throughout
the organization, the Enel Group established a specific
training program to promote a new mindset about a
better way of working, with more safety for people and
more sustainability for the environment.
Regular safety talks aimed at both internal and external
staff deliver clear and direct messages on safety, health,
and environmental care. In addition, various campaigns
are carried out through video capsules, workshops for
inspectors, and seminars on electrical risk, among others.
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Principal 2023 initiatives
• Emergency drills: Emergency and evacuation drills
were planned and carried out following international
policies and procedures. This enabled the
establishment of steps to limit risks to the people
and infrastructure of the various business divisions,
allowing for the consolidation and maintenance of
operational continuity.
• The Echo "additional site check" involved a team of
experts who evaluated the implementation of field
operations, verifying the accurate application of
protocols, the condition of safety equipment, the
behavior of subcontractors, the mitigation of risks,
and the readiness of emergency response teams.
• Safety Walk is an activity conducted by HSEQ
involving the management team and reviews
the safety conditions in the operations of the
Company's different lines of business. The findings
from the activity were used to create an action plan
to fix the substandard conditions identified.
• Health and safety work plan 2023-2024 with the
Mutual de Seguridad and the Asociación Chilena
de Seguridad: the Company signed an agreement
with the above-mentioned entities to create a work
methodology that meets the occupational health
and safety needs required in the facilities to protect
the employees of Enel Chile, Enel Generación Chile,
and Enel Green Power Chile.
• Keynote Talks: a program of talks that took place
throughout the year to raise awareness among
our people of the importance of safety in different
issues that included civil liability, safe driving, and
zero accidents, among others.
• Local capsules: Disseminate and reinforce security
issues (internally and through social networks)
with the support of the Communications area
in the scripts, review of capsules, and internal
dissemination.
Promoting Health and Wellness
Regarding safety, health is also fundamental in Enel
Chile's commitment to growth and individual well-being.
The Company adopted a structured health management
system based on preventive and protective measures
and is committed to developing a corporate culture that
promotes psychophysical health, organizational well-
being, and work-life balance. To this end, the Company
encourages initiatives aimed at improving the quality of a
typical workday in terms of physical and emotional well-
being; designs awareness-raising campaigns to promote
a healthy lifestyle; sponsors screening programs aimed
at preventing disease; and provides facilitated access to
medical and other health care services, assistance for
persons with disabilities, and specific preventive medicine
initiatives.
Principal initiatives
Community Engagement
Enel Chile bases its strategy for community engagement
on a Creating Shared Value (CSV) model, built on a deep
understanding of the territory's social, economic, and
environmental context. The Company developed actions
through a participatory approach, which puts people at the
center of their priorities, needs, and diversities, promoting
community prosperity and empowerment, reducing gaps,
and mitigating risks of eventual negative impacts.
Based on the application of different analysis, planning,
and monitoring tools, and fully respecting human rights,
we have implemented comprehensive programs, making
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Integrated Annual Report Enel Chile 2023
Stakeholder Engagement Initiative:
• Identify stakeholders in the area of influence
through a formal process, ensuring representation
of all affected groups and the participation of
community leaders with whom to establish contact.
• Carry out socioeconomic and environmental
context analyses.
• Make sure that consultation is free, preventive,
inclusive, adapted to the local context, bidirectional,
and well documented, in line with international
reference standards, maintaining continuous
processes, and employing formal mechanisms that
allow the concerns of communities to be gathered
and addressed.
• Share all relevant project information, responding to
the community’s questions.
• Allow the communities to participate in the design
of initiatives aimed at community and social
development, incorporating their needs.
• Involve independent third parties in the negotiation
processes.
• Support local communities in monitoring the
project through local training.
• Provide individuals with a contact channel with the
Company to access the reports.
Value creation model
Context analysis
Identification of key factors
related to socioeconomic
and environmental aspects
of the communities.
Monitoring, evaluation
and reporing
Process monitoring,
impact measurement and
reporing of key indicators.
Execution
of the CSV plan
Implementation of actions
defined in the CSV Plan,
including collaboration
with strategic parners.
Implementation
of the CSV plan
Implementation of CSV
plan actions, possibly with
strategic parners.
Identification of
stakeholders
Mapping and prioritization
of key stakeholders and
registration their needs.
Analysis of material
issues and risks,
potential opporunities
Identification of material
issues for stakeholders and
the company and of
potential risks and
opporunities.
Definition of the
CSV plan
Definition of an action plan
for Creating Shared Value
(CSV) in line with the
priority topics that
emerged from the impact
analysis carried out.
it possible to establish long-term links and collaboration
with more than 250 communities and social organizations
in more than 60 municipalities, to identify points of
convergence with the corporate strategy and guarantee
the Company’s social sustainability activities in the 12
regions where we are present.
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The procedures for community
engagement are as follows:
CSV Process Definition and Management defines
how to design, implement, monitor, and evaluate the
various sustainability plans in the different territories.
Stakeholder engagement: principles and criteria to
engage with local stakeholders.
Generation of agreements regulates the enactment
of an agreement between the company and the
community, which interacts with the operations or
projects of Enel Chile and its subsidiaries.
Control, monitoring, and implementation of RCA
Human Environment agreements and obligations
frame the control and monitoring agreement
activities.
Donations: guidelines for activities related to
granting and managing donations, ensuring their
coherence with the corporate strategy for sustainable
development.
The Human Rights Management System defines roles
and responsibilities and describes the process of
implementing due diligence in this system.
The Relocation Action Plan standardizes
management and strengthens compliance with
relocation processes, establishing itself as a guide to
achieving them.
The PPM (Project Portfolio Management) system
defines the KPIs and the methodology to calculate the
impacts based on the characterization of the different
social and environmental investment initiatives.
Global Guideline
Procedures
Operating
Instructions
CSV Process Definition and Management
PPM System
Donations
Human rights
management system
Relocation Action Plan
Stakeholders
Engagement
Generation of
agreements
Control, Follow-up and
Execution of Agreements
and RCA Obligations
Human Environment
Community Engagement Policy and Procedures
Enel Chile's commitment to social sustainability is
displayed in its activities and embodied in the Sustainability
and Community Relations Policy. The Company has
implemented continuous processes and procedures to
implement this policy.
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Education for
sustainable
development
Energy, access,
quality, safety and
efficiency
Economic
development with local
identity and green jobs
Housing, services and
environment
Planet: climate
change and natural
resources
• Atendance and schooling
• STEM and climate change
• Ar, culture and heritage
• Electrification
• Energy efficiency
• Inclusion and energy security
• Access to basic services
• Habitability
• Community infrastructure and
public spaces
• Green jobs
• Promoting entrepreneurship
• Tourism
• Water
• Biodiversity
• Waste and materials
• Scholarships
• Educational programs
• Promotion and dissemination
• Rural and suburban electricity
• Technology and infrastructure
• Knowledge development
• Infrastructure, technologies
and governance
• Technical training and job
placement
• Capacity, technology transfer and
financing
• Water management
• Conservation
• Waste recovery
LINE
LINES OF ACTION
PROGRAMMATIC FOCUSES
Lines of work in community engagement
To identify and define sustainability actions, the Company
considers the national scenario, its primary risks across
different territories, and the country’s significant social
challenges: multidimensional poverty, energy vulnerability,
and the climate crisis. Enel Chile has implemented five
strategic initiatives tailored to each region's specific
conditions, aligned with the United Nations Sustainable
Development Goals (SDGs).
Some of these lines of work include the following:
Access to energy and energy efficiency: Access,
quality, and equity of electricity supply are fundamental
dimensions on which constant work has been done
to contribute to reducing energy poverty. Enel Chile
contributes to an energy transition that leaves no one
behind and promotes local development.
Economic Development and Green Jobs: The Company's
management has prioritized collaboration with authorities,
private firms, civic society, and communities to foster
entrepreneurship growth. These projects have considered
integrating and promoting jobs that contribute to the
territories' optimal social and economic development. To
achieve this, vulnerable human groups, or individuals with
restricted access to information and job networks, must
strengthen their skills and abilities through technical and
professional training.
Education for sustainable development: Enel Chile is
convinced that education is the fundamental engine for
sustainable development at the individual and collective
levels. This dimension is crucial, as it not only contributes to
environmental awareness and education but also provides
benefits and tools to technically trained people, especially
motivating young people to be part of sustainable
development.
Planet – Climate change and natural resources: Enel Chile
is committed to addressing climate change and preserving
natural resources. The Company collaborates with
communities, providing financing and solutions to promote
sustainable practices and contribute to mitigating climate
impacts. We work towards the Sustainable Development
Goals linked to Climate Change and Natural Resources,
contributing to an environmentally resilient future.
Housing, services, and environment: As part of the
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SUSTAINABILITY AND INNOVATION IN THE PROCUREMENT
PROCESS – SUPPLIERS AND CONTRACTORS
Supplier
qualification
Bidding and
contracting process
Supplier Perormance
Management System (SPM)
All dimensions of
sustainability are evaluated:
health and safety,
environment and human
rights.
Inclusion of sustainability factors
and incentives:
• Human Rights Clauses
• Carbon footprint target
• Material passpor
• Incentive factors for: renewable
energy mix; low carbon
transporation; materials recovery;
etc
The evaluation of suppliers' perormance also
based on sustainability dimensions.
Qualified suppliers
evaluated for their
sustainability
perormance (%)
100
2023
Innovation
Innovation challenges open to suppliers to
promote sustainable impact
Sustainable Development Goals (SDGs), Enel Chile
recognizes the interconnection between the quality
of housing, the availability of essential services, and
the preservation of the environment and the need to
contribute to projects that are both aligned with the
Company's materiality and the needs and interests of the
project’s participants.
For more information about the highlighted projects
with the communities, access the following link from the
corporate website: https://www.enel.cl/en/sustainability/
creating-shared-value/enel-plants-and-projects-with-
communities.html
A sustainable supply chain
Enel Chile maintains its efforts to integrate sustainability
into
the
Supply
Chain
strategy,
incorporating
environmental, social, and governance aspects to create
shared value with suppliers.
The performance of the Company’s suppliers, beyond
guaranteeing the necessary quality standards, must
go hand in hand with their commitment to adopt
best practices in terms of human rights and working
conditions, health and safety, environmental responsibility,
and ethics. The Company's procurement procedures are
designed to provide a quality of service fully respecting
the principles of economy, efficiency, timeliness, fairness,
and transparency. They are continuously reviewed to
ensure they align with the Company's policies. At the same
time, the Board of Directors oversees the management
and performance of the supply chain.
Apart from complying with local legislation, procurement
processes are based on criteria that promote sustainable
development and the principles of free competition, equal
treatment and non-discrimination, and transparency. This
is done through explicit references to codes of conduct,
including the Group's Human Rights Policy, Code of
Ethics, Zero Tolerance with Corruption Plan, and Global
Compliance Programs. The selection of the best partners
and implementation of contracts following the highest
sustainability standards are achieved by analyzing and
monitoring the entire procurement process.
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Suppliers qualified according to sustainability criteria
2023
2022
Variación
Qualified Providers
no.
2,898
2,288
26.7%
National
no.
1,609
1,268
26.9%
Foreign
no.
1,289
1,020
26.4%
Evaluated under sustainability criteria
%
100
100
0.0%
Coverage of contracts awarded (*)
%
99
98
0.4%
(*) Calculated as the total number of contracts awarded to qualified suppliers divided by the total number of contracts awarded.
Supplier Management and Qualification
The Supply Chain manages and integrates sustainability,
carrying out environmental, social, and governance
evaluations in all procurement phases, i.e., in the
qualification
phase,
during
the
tender
process,
contracting, and in the contract management or
management phase, all through the Supplier Performance
Management (SPM) System.
Supplier Qualification
The Company integrates sustainability into its supply chain
through the Global Supplier Qualification System, which
allows for an accurate evaluation of companies interested
in participating in tender processes. This system identifies
sustainability risk factors in the sourcing process by
mapping the risk level of the various purchasing groups
or families. Based on this process, a framework is defined
to assess compliance with multidimensional requirements
such as technical, financial (eco-financial/financial risk),
legal (reputational and labor compliance), environmental,
occupational health and safety, and human rights
assessment by suppliers of goods and services.
The reputational assessment of the suppliers is carried
out by verifying national and international restrictive
lists. Regarding the sustainability assessment, the
questionnaires address occupational health and safety,
environmental and human rights criteria according to
the purchasing family and their risk level. Furthermore, an
audit is conducted for high-risk purchasing families at the
supplier's facilities.
Human rights are particularly evaluated with regard to labor
practices, such as the rejection of forced or child labor,
respect for diversity and non-discrimination, freedom
of association, and collective bargaining, among other
aspects. Suppliers must also adhere to the principles to
which the Company has made a commitment through its
Human Rights Policy, Code of Ethics, Zero Tolerance with
Corruption Plan, and Global Compliance Programs, with
specific reference to the absence of conflicts of interest
(including potential ones), according to risk categories and
the submission of specific certifications/self-declarations.
The qualification process is mandatory for all suppliers
(significant and non-significant). Suppliers must continue
to meet the requirements outlined throughout the
duration of their qualification. This process makes it
possible to accurately establish the competencies and
capabilities of the companies that operate with Enel Chile
and its subsidiaries through an objective and transparent
process that complies with the standards defined by the
Group.
As of December 31, 2023, the Company evaluated
100% of qualified suppliers on social, environmental,
and safety aspects. Approximately 1,037 suppliers had
active contracts, and the total number of active qualified
companies was in the region of 811.
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Tenders and Hiring Processes
Enel Chile has adopted a structured process to define
sustainability requirements and reward factors (K), which
consider certifications and environmental, social, and
circular economy aspects consistent with its commitment
to introduce sustainability parameters in tender processes.
Currently, the Company can access libraries that catalog
sustainability and K requirements, tools used by the
different purchasing units in the tender process. The
global multidisciplinary teams regularly update the
libraries (Procurement, Business Units, Sustainability,
and Circularity, among others), considering the market's
maturity in sustainability practices and new business
strategies.
During the Procurement phase, all contracts for works,
services, and supplies include specific contractual clauses
prioritizing sustainability. These clauses highlight the
importance of adhering to human rights and complying
with ethical and social responsibilities. Enel Chile and
its subsidiaries have integrated the General Terms and
Conditions, prioritizing a sustainable business model.
They emphasize the importance of environmental, social,
and economic sustainability and innovation as core values
within their corporate culture. The Company has also
implemented a development system that focuses on
shared value creation.
In 2023, 46% of the contracts awarded by Procurement in
Chile were granted to small and medium-sized enterprises
(SMEs).
Monitoring Systems
The Company performs regular monitoring activities to
identify and solve supplier issues. This includes evaluating
their compliance with qualification requirements and
contractual conditions, regardless of whether they have
an active contract with us or not.
• Ongoing reputation monitoring: Applying round-
the-clock open-source monitoring to detect any
potential risks to our reputation, particularly in relation
to environmental crimes and human rights violations.
Reports are also gathered through the whistleblowing
channel, accessible to all stakeholders in various
languages.
• Document monitoring: maintaining the accuracy and
legitimacy of legal documents (such as company
incorporation and powers of attorney) following the
distinctive legal requirements of each country where it
operates.
• Contractor Safety Assessment: Enhanced verification
process
during
the
qualification
and
contract
implementation phase for purchasing families with
medium/high health, safety, and environmental risk. We
focused on enhancing HSE practices to achieve and
maintain a high rating.
Suppliers with an active contract will have additional
monitoring areas incorporated apart from the systems
already described.
• We closely monitor health, safety, and environmental
aspects throughout the service performance. This
involves evaluating and monitoring supplier efficiency
through on-site inspections to identify any non-
conformities or potential risks in relation to contractual
obligations, technical standards, and legal requirements.
Our primary objective is to proactively mitigate any
possible incidents, maintaining the safety of individuals
and preserving the environment.
• We monitor the performance of the technical service
under the contract through objective and systematic
collection of data and information, which is an essential
part of Supplier Performance Management (SPM).
• We analyze the data from the various monitoring
components that fall under the purview of dedicated
committees comprising members from the procurement
department and the Business Lines.
The Qualification Committee accepts and/or rejects
requests
for
qualification
and
evaluates
possible
suspensions.
The Integrity Committee convenes to address pressing
concerns that might affect the supplier's reputation,
assessing potential measures or penalties. Throughout
2023, the committee convened on six occasions.
Supplier Performance Management (SPM)
The Company closely assesses and tracks supplier
performance at every stage of the procurement process.
The Supplier Performance Management (SPM) tool is
employed for these purposes. Its primary objective is
to offer timely and objective feedback on the supplier's
performance. The feedback process includes not only
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identifying areas for improvement but also acknowledging
suppliers with outstanding performance. This fosters
a continuous cycle of positive reinforcement and
encourages suppliers to adopt best business practices.
The SPM is a comprehensive system that tracks and
evaluates supplier performance across critical areas such
as quality, punctuality, health and safety, environment,
human rights, innovation, and collaboration. The Supplier
Performance Index (SPI) is calculated by combining these
indicators into a weighted average.
The different Business Lines guarantee effective supplier
management, with the support of the health, safety, and
environment units when necessary, as well as the Supplier
Performance Management and Qualification unit. Enel
Chile and its subsidiaries evaluate their relationships with
suppliers using various tools, including Track and Rate and
Damascus.
When there is poor performance, specific actions that
impact the rating and contract, including modifications to
the rating duration, suspensions, further investigations, or
improvement strategies, are implemented. A collaborative
action plan can be created and continuously monitored
when issues occur.
Consequence Management is a formal process where
actions are determined based on the evaluation of each
supplier. It aims to acknowledge exceptional performance
while improving the performance of suppliers with
unsatisfactory results.
In 2023, the Company held three Consequence
Management Committees in Chile involving 35 suppliers.
Based on the committee findings, four suppliers were
set up with action plans on risk mitigation related to Enel
Chile's operations, and two suppliers were sent merit
recognition letters.
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CIRCULAR PURCHASING STRATEGY
Supplier
commitment
BIDDING PHASE (K and TR)
Reward suppliers for their
commitment to the
transition to the Circular
Economy through K Factors
(with a prize) or
Requirement (with the
possibility of paricipating in
the tender).
Definition of
metrics and impacts
EPD Program-Material
Passpor
Quantify, evaluate and validate
environmental impacts derived
from the manufacturing cycle.
Co-innovation
INNOVATION BY SUPPLIER
DESIGN TO VALUE
Re-examine design, production
processes, and packaging.
01
02
03
Purchase works, goods and services with the aim of reducing environmental impacts and
waste generation during their life cycle
Renewable
resources
No renewable
resources
Use of secundary
resources
Net use of
fresh water
Waste
production
and treatment
Environmental
impact parameters
LESS IMPACTS
/
COST SAVINGS
/
RISK REDUCTION
/
LOCAL SUPPLY CHAIN
Circular Procurement Strategy
For Enel Chile, the circular economy is part of its business
model
that
generates
competitiveness,
combining
innovation and sustainability. Along these lines, the
Company adopted the Circular Procurement Strategy,
which focused on suppliers who acquire goods or services
that reduce environmental impact and waste generation
during their life cycle, aligning with the Group's principles.
To implement this strategy, the Company has devised
creative tools and methods that improve material tracking
and evaluate their effects throughout the entire value
chain. This holistic approach seeks to inspire suppliers to
maximize the use of resources by implementing efficient
recycling and recovery methods at the end of a product's
lifespan, leading to reduced emissions. During the bidding
phase in 2023, multidisciplinary teams collaborated to
select the most critical sustainability criteria for each
tender. This approach provided competitive advantages
to suppliers committed to environmental certifications,
material passports, carbon footprint reduction, and the
incorporation of circular economy principles in their
industrial processes, among other factors. Simultaneously,
a thorough review of the tender documents takes place
to verify that suppliers achieved their commitments while
providing their services.
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33 Labour Code and Act No. 20.123 regulating subcontracting and transitional services.
Subcontracting policy
Enel Chile has established a clear vision for strategic
areas related to contracting and subcontracting. The
Company recognizes the importance of each participant
in the service value chain. It has implemented policies that
reflect a strong commitment to respecting Human Rights,
diversity, and inclusion and complying with the current
legislation33.
Enel Chile guarantees compliance with national legislation
through implementing policies and standards and has
applied a Contracting and Subcontracting Policy that
safeguards the principles of integrity and transparency.
This policy aligns with other important guidelines such as
the Zero Tolerance with Corruption Plan, Code of Ethics,
Human Rights Policy, and Just Transition Plan.
The Company encourages and promotes the correct
performance of its work in the companies integrated
into its services value chain, along with strengthening
unrestricted compliance with obligations related to
Human Rights, labor, and social security areas, the latter
defined in the Labor Code.
Furthermore, Enel Chile promotes optimized service
chain management, with commitments that foster the
development of its various suppliers and contractors, not
only in economic and financial matters but also in social
commitment and the work environment. In this last area,
the Company has promoted programs aimed at suppliers
and contractors to develop competencies and skills for
their benefit.
The Company carries out awareness-raising and control
activities aligned with its strategic policies, applied in
multiple services, such as work sites, projects, and in
all those jobs or activities that require the following
characteristics for their development:
• Activities aimed at the development of operations or
business.
• Service activities with a duration of more than 30 days.
• Works and/or service activities to be carried out
or
provided
by
the
respective
contractors
or
subcontractors, which are carried out on a permanent
or regular basis.
For Enel Chile, health and safety are strategic areas, which
is why these aspects are integrated into the bidding and
contracting processes and are continuously monitored
through the Supplier Performance Management (SPM)
system, which allows the Company to measure and
evaluate the performance of suppliers and contractors.
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Principal Initiatives for Contractors in
2023
Green Contractor Pilot Plan
Green Contractor is a tool that allows contractors
to quantify their operations’ carbon footprint and
improve their environmental performance on a
voluntary basis to achieve different degrees of
certification while contributing to the company's Net
Zero goal by 2040. The pilot plan began in 2023 with
nine contractors from S&S management.
Annual Training Plan and Work Environment for
Contractors
The Contractor Management plans and implements
training activities for contractors for all business
lines. In 2023, 14 training programs were carried
out. Workers from all business lines took part, and a
total of 2,511 participations were completed. 28% of
participants were women.
For all business lines, a program focused on raising
occupational risk awareness through self-care, in
which participants take on the role of protagonists
in their safety, sensitizing them to the personal
and family consequences of an accident that go
beyond the company's economic impact. The final
of these courses included increased participation
of Haitian contractor workers, who were assisted in
developing the activities by the activity presenters
and colleagues.
As part of the lessons learned from the Human Rights
Due Diligence processes, emphasis was also placed
on Collaborative Work, which aimed to develop and
bolster the skills and competencies of the various
contractors' work teams, allowing participants to
collaborate effectively, communicate properly,
resolve conflicts, and accomplish common goals and
objectives in a cordial environment.
With regard to the work climate and engagement
program, 3,875 people associated with 75 contractor
companies were included in 2023. The program
consists of measurement, generation of an action
plan, and follow-up to maintain and/or improve
well-being indicators among the contractor’s staff
members.
Furthermore, the MAS Consulting Firm offered
workshops on Effective Communication and
Psychological First Aid at the closure of the Work
Climate and Engagement survey applied in 2022,
aimed at the management and supervisors of the
contractor companies of Enel Chile, Enel X, and Enel
Distribución Chile. The events were held between April
and May 2023
In the fourth quarter of 2023, the Company
collaborated with the consultant Circular HR of
Fundación Chile to adjust the new tool of Climate
and Labour engagement developed for contracted
workers that will govern for the next three years,
where the dimensions of labor climate, categorization,
and engagement were reviewed, determining to
include in the working climate a new dimension
"Diversity and inclusion." This new dimension intends
to lessen the risk of potential violations of human
rights policy and is one of the activities outlined in the
remedy plan.
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Suppliers and human rights
The Company monitors and evaluates compliance with
the principles of its Human Rights Policy during the term
of the contract with third parties. Within the framework of
the Climate and Employment Engagement program, the
measurement instrument allows to detect the behavior of
companies in the areas of:
• Respect for sexual, ethnic, national and disabled
diversity.
• Ethical dimension of provider behavior.
• Perception of labor compliance and forecast to prevent
a violation of labor rights in the contractor companies.
Supplier Payment Policy
Enel Chile and its subsidiaries have implemented a
payment policy for domestic and foreign suppliers who
provide goods and/or services to the Group's companies.
This policy complies with Law No. 19,983 that, "Regulates
the Transfer and Grants Executive Merit to Invoice Copies"
and Law No. 21,131 or "30-Day Payment Law". Payments
are made every week to guarantee compliance with
the requirements. This policy does not apply to certain
documents with unique payment requirements, such
as fuel, import and/or customs duties, basic services,
remunerations, social security contributions, taxes,
debt service, and financial expenses. Special attention
must be given to documents related to the spot energy
purchase (National Electricity Coordinator), power, single
charge, tolls, transmission, and all operations associated
with energy trading. These documents require careful
adherence to the regulations of the electricity market.
Agreements with Exceptional Payment
Terms
During 2023, Enel Chile and its subsidiaries maintained in
force a total of 28 agreements with suppliers registered
in the Registry of Agreements with Exceptional Payment
Terms maintained by the Ministry of Economy, of which 11
were registered in the same year.
Supplier payment
During 2023, Enel Chile contracted a total of 611
supplier companies, of which 578 are level 1, defined as
those suppliers with contracts over 25 thousand euros,
representing 94% of the expense. Payments to suppliers for
the supply of goods and services represented an amount
of Ch$4,638,105 million, of which 66% corresponds to the
Generation Segment, 31% to the Distribution Segment
and 3% to others. These payments correspond to national
and foreign suppliers (given the impossibility of finding
products in the country, such as fuels, gas and coal, solar
panels, turbines and high voltage cables, among others).
Relevant Tier 1 suppliers were assessed in 2023 including
assessments in the qualification, tender and contract
award phases.
Supplier Concentration
Generation segment: The leading suppliers in Enel Chile's
generation business are those related to electricity
purchases, transportation costs, fuel purchases, and
property, plant, and equipment purchases. Among those
suppliers, GNL Chile S.A. accounted for more than 10% of
the segment's total purchases made in 2023.
Distribution and Networks Segment:
The
leading
suppliers in Enel Chile's distribution and networks business
are those related to electricity purchases, electricity
transportation costs, and purchases of property, plant,
and equipment. Among them, Enel Generación Chile S.A.
(a subsidiary of Enel Chile, which is part of the generation
segment) individually accounted for more than 10% of the
total purchases made in the segment in 2023.
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5.
OTHER CORPORATE
INFORMATION
●Historic information
●Action information and other securities
●Risk factors
●Subsidiaries, associates and joint business
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ARTICLES OF
INCORPORATION
OF THE COMPANY
Incorporation of the Company
Enel Chile S.A., formerly known as Enersis Chile S.A., was
created as a result of a corporate restructuring that
began in April 2015 in the then Enersis S.A. This company
controlled the generation, transmission, and distribution
businesses in Chile and four other countries in the region
(Argentina, Brazil, Colombia, and Peru).
On December 18, 2015, the Extraordinary Shareholders'
Meeting of Enersis S.A. approved the first part of the
restructuring plan, spinning off Enersis S.A. and creating
Enersis Chile S.A. as the sole vehicle to control the Group's
generation and distribution assets in Chile. Subsequently,
Enersis S.A. was renamed Enersis Américas S.A. (today
Enel Américas S.A.), controlling the business in the region’s
other countries. The division is recorded in a public deed
dated January 8, 2016, granted in the Notary Office of
Santiago by Mr. Iván Torrealba Acevedo, the extract of
which was registered in the Registry of Commerce of the
Santiago Land and Property Registrar on pages 4,288 No.
2,570, corresponding to 2016 and published in the Official
Gazette on January 20, 2016.
Subsequently, on October 4, 2016, the shareholders
of Enersis Chile S.A. approved the Company's change
of name and corporate name to Enel Chile S.A. This
agreement was recorded in a public deed issued on
October 18, 2016, granted in the Notary Office of Santiago
of Mr. Iván Torrealba Acevedo, the extract of which was
registered in the Commercial Registry of the Santiago
Land and Property Registrar on page 79,330 No. 42,809,
corresponding to 2016 and published in the Official
Gazette, on October 28, 2016.
On December 20, 2017, the Company's shareholders
approved to amend its bylaws. These amendments reflect
the resolutions made regarding the merger of Enel
Green Power Latin America S.A. into Enel Chile, as well
as its capital increase and other resolutions discussed
at the meeting. The articles on its capital and corporate
purpose were revised to align with the latest information
and communications technology developments. These
changes were made following the terms and conditions
approved at the meeting, resulting in an updated version
of the bylaws. The minutes of the meeting were officially
recorded on December 28, 2017, by Mr. Iván Torrealba
Acevedo at the Notary Office of Santiago. The relevant
information was registered in the Santiago Land and
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Integrated Annual Report Enel Chile 2023
Property Registrar, specifically on pages 1154 No. 629,
corresponding to 2018. The information was published in
the Official Gazette on January 5, 2018.
The Extraordinary Shareholders' Meeting of Enel Chile S.A.,
held on April 27, 2022, amended the bylaws to align with
current legislation and regulations. The changes include
appointing an external audit firm, updating the summons
process, and replacing references to the "Superintendency
of Securities and Insurance" or "Superintendency" with the
"Financial Market Commission" or "Commission," which is
the legal successor. The reference to Enel Américas S.A.
was updated at the same meeting.
On April 26, 2023, the Extraordinary Shareholders' Meeting
of Enel Chile S.A. approved the amendment of the bylaws,
modifying Article Four, referring to the corporate purpose
to allow the provision of services to third parties.
Corporate Purpose
The Company’s purpose shall be to carry out the
exploration,
development,
operation,
generation,
distribution, transmission, transformation and/or sale
of energy in Chile, in any of its forms or nature, directly
or through other companies, as well as the activities of
research, development, operation, commercialization,
purchase, sale, import, and maintenance of any type of
goods related to information and telecommunications
technologies such as software, hardware, licenses,
computer developments and, in general, any type of
goods related to the above activities; and advice on all the
matters mentioned above. It will also have the purpose of
investing and managing its investment in subsidiaries and
associated companies, which are electricity generators,
transmitters, distributors, or traders or whose business line
corresponds to any of the following: (i) energy in any of its
forms or nature, (ii) the supply of public services or whose
primary input is energy, (iii) telecommunications and
information technology, and (iv) Internet intermediation
businesses. In meeting its main purpose, the Company
shall perform the following functions:
a. Promote, organize, set up, modify, dissolve, or liquidate
companies of any nature whose corporate purpose is
related to those of the Company.
b. Propose to its subsidiaries the investment, financing,
commercial policies, accounting systems, and criteria
they must adhere to.
c. Oversee the management of its subsidiary companies.
d. Provide its related companies, subsidiaries, and affiliates
with the financial resources necessary to carry out their
businesses and, in addition, provide its subsidiaries,
affiliates, and unrelated third parties with management
services; financial, commercial, technical, and legal
advice; and, in general, services of any kind that appear
to be convenient for their best performance. In addition
to its primary purpose and always acting within the
limits established by the Investment and Financing
Policy approved at the Shareholders' Meeting, the
Company may invest in:
• First. The acquisition, operation, construction, leasing,
administration, intermediation, marketing, and disposal
of all kinds of personal property or real estate, either
directly or through subsidiaries or related companies.
• Second. All kinds of financial assets, including shares,
bonds and debentures, commercial bills, and, generally,
all kinds of securities and contributions to companies,
directly or through subsidiaries or affiliates.
299
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
HISTORICAL
INFORMATION
Enel Chile S.A. was created under the name Enersis S.A.
due to a corporate restructuring that began in April 2015.
It controlled the electricity generation, transmission, and
distribution businesses in Chile and four other countries
in the region (Argentina, Brazil, Colombia, and Peru). The
Extraordinary Shareholders' Meeting of Enersis S.A. held in
December 2015 approved the first part of the restructuring
plan, creating Enersis Chile as the sole vehicle for
controlling the group's generation, transmission, and
distribution assets in Chile. Thus, Enersis S.A. was renamed
Enersis Américas S.A., which would control the business in
the other countries of the region.
A similar separation process took place in the subsidiaries
Endesa Chile S.A. and Chilectra S.A.
On September 28, 2016, Enersis Americas, Endesa
Americas,
and
Chilectra
Americas
shareholders
approved the second part of the plan. Enersis Américas
thus absorbed the businesses of Endesa Américas and
Chilectra Américas. Furthermore, the meeting approved
changing the name of Enersis Américas S.A. to Enel
Américas S.A.
On October 4, 2016, Enersis Chile, Endesa Chile, and
Chilectra shareholders changed their corporate names
to Enel Chile, Enel Generación Chile, and Enel Distribución
Chile, respectively.
Following the Group’s merger process, the generation
business was left in the hands of Enel Chile through its
subsidiary Enel Generación Chile. As of December 31,
2021, Enel Generación Chile has an installed capacity of
6,000 MW, with a generating park of 109 units along the
National Electric System (SEN), which places it among the
top energy companies in the country.
Through its subsidiary Enel Distribución Chile, Enel Chile
took over the distribution and transmission business. It
operates in a concession area of 2,105 square kilometers,
under an indefinite concession granted by the Government
of Chile, transmitting and distributing electricity in 33
municipalities of the Metropolitan Region, including the
subsidiaries Enel Colina S.A. and Empresa de Transmisión
Chena S.A. Its service area is primarily defined as a densely
populated sector under Chilean tariff regulations, making
it Chile's largest electricity trading company.
In August 2017, the possibility of carrying out a corporate
reorganization of the Enel Chile group was raised. This plan
was called the "Elqui Project". It included the absorption of
Enel Green Power Latin America S.A. into Enel Chile and
the launch of a Public Acquisition Offer (PAO) for 100% of
Enel Generación Chile. In December 2017, the respective
extraordinary shareholders' meetings approved the terms
of the reorganization.
The Elqui Project was completed on April 2, 2018, when
Enel Green Power Latin America was absorbed, and the
stake in Enel Generación Chile was increased to 93.55%.
This operation incorporated 1,189 MW of installed non-
conventional renewable energies (NCRE) installed capacity.
They were mainly wind and solar technology. Given the
solid renewable energy development driven by Enel in
Chile, Enel Green Power Chile S.A.’s net installed capacity
totaled 2,861 MW as of December 31, 2022.
In September 2018, Enel Chile announced the creation of
a new subsidiary, whose corporate name is Enel X Chile
SpA. Its corporate purpose, among others, is to develop,
implement, and sell energy-related products and services
that incorporate innovation, cutting-edge technology, and
future trends. They differ from the concessioned electricity
distribution and related services, whether priced or not.
Following the "Short Law" approved at the end of 2019,
especially concerning the "Single Draft" established for
distribution companies in the country, on December
3, 2020, Enel Distribución Chile held an extraordinary
shareholders' meeting to approve the division of
its operations into two independent business lines:
distribution and energy transmission. This way, Enel
300
Integrated Annual Report Enel Chile 2023
Distribución Chile decided to focus on the regulated
business of electricity distribution in its concession area,
while the new company generated by the division of its
operations, Enel Transmisión Chile, concentrated on the
transmission business as of January 1, 2021, including
the operations of the subsidiary Empresa de Transmisión
Chena S.A.
Subsequently, and as part of the corporate simplification
process that Enel Chile has undergone over the last few
years, on November 1, 2021, Empresa de Transmisión
Chena S.A. was merged with its parent company Enel
Transmisión Chile, the latter succeeding Empresa de
Transmisión Chena S.A. in all its rights and obligations.
On July 28, 2022, Enel Chile signed a Share Purchase
Agreement with Sociedad Transmisora Metropolitana
SpA. (a company controlled by Inversiones Grupo Saesa
Limitada) to sell its entire stake in Enel Transmisión Chile
S.A., equivalent to 99.09% of the ownership. The transaction
was carried out through a tender offer launched between
November 7 and December 6. The closing of the sale and
transfer of shares in Enel Transmisión Chile was subject to
meeting certain usual conditions for this type of operation,
including the approval of the operation by the National
Economic Attorney's Office (FNE- Spanish Acronym). Once
the aforementioned conditions precedent were met,
the sale was finalized on December 9, 2022, and the
extraordinary meeting of Enel Transmisión Chile S.A. held
on October 27, 2022, approved the bylaw amendments.
301
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
SUMMARY OF
SIGNIFICANT
EVENTS
The subsequent section provides a synopsis of the relevant
or significant events disclosed by Enel Chile S.A. during
the fiscal year 2023, including those that transpired prior
to the publication of this Integrated Annual Report 2023
or occurred after the annual period and that may impact
the progress of the organization's operations, financial
statements, securities, or offerings during this period, or
may do so in the future.
Profit sharing (dividend payment)
Final Dividend
April 26, 2023
The Company issued a significant event to report that the
Ordinary Shareholders' Meeting of Enel Chile S.A., held
on April 26, 2023, decided to distribute a final dividend.
After deducting the provisional dividend paid in January
2023, this dividend reached Ch$375,624,677,292, which
translates to Ch$5.430726819359694 per share.
Considering the interim dividend has already been
disbursed, the remaining portion of the final dividend No. 14,
totaling Ch$353,208,321,770 or Ch$5.106634419458630
per share, will be distributed and paid. The payment
was processed on May 26, 2023. Furthermore, per the
regulations outlined in Circular No. 660 of 1986 of the
CMF, we have included Form No. 1 containing the details
of the final dividend.
Provisional Dividend
November 23, 2023
Enel Chile issued a significant event to report that the Board
meeting held on November 23, 2023, agreed to distribute
a provisional dividend of Ch$0.597814049050883 per
share, charged to the 2023 profit paid on January 26,
2024. This amount corresponds to 15% of the Company's
net earnings as of September 30, 2023, based on
the Company's financial statements as of that date.
Furthermore, following the provisions of Circular No. 660
of 1986 issued by the CMF, Form No. 1 was attached with
the information related to the final dividend.
2024-2026 Strategic Plan
November 23, 2023
Enel Chile issued a significant event to report that the
Company's Board of Directors, in a meeting held on
November 23, 2023, approved Enel Chile's 2024-2026
Strategic Plan.
The macro-elements of the Strategic Plan foresee a
cumulative EBITDA of approximately US$4.2 to US$4.4
billion and a cumulative CAPEX of roughly US$2.3 billion
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Integrated Annual Report Enel Chile 2023
for the 2024-2026 triennium. Given that the contents of
the aforementioned Strategic Plan obey and are based on
projections of hypotheses that may or may not be verified
in the future, its effects are not determinable at this date.
On November 27, the Strategic Plan was presented to all
local and foreign investors, shareholders, and the market
in general.
Assets or shares, acquisition, or disposal
July 12, 2023
Enel Chile announced that on July 12, 2023, it entered into
an agreement called the "Share Purchase Agreement,"
under which Enel Chile agreed to sell to Sonnedix Chile
Arcadia SpA and Sonnedix Chile Arcadia Generación
SpA all the shares it owns issued by its subsidiary Arcadia
Generación Solar S.A., equivalent to 99.99% of the latter's
capital. Sonnedix Chile Arcadia SpA and Sonnedix Chile
Arcadia Generación SpA are companies controlled by
Sonnedix.
Arcadia Generación Solar S.A. operates and owns a 416
MW generation portfolio through four solar plants: "Diego
de Almagro," "Carrera Pinto," "Pampa Solar Norte," and
"Domeyko."
The sale and the subsequent transfer of the shares
owned by Enel Chile issued by Arcadia Generación Solar
S.A. were subject to certain conditions precedent usual
for this type of transaction, including the approval by the
National Economic Attorney's Office of the corresponding
concentration operation under the Legislative Decree No.
211 issued in 1973.
The purchase price reached approximately US$ 550
million for 99.99% of Arcadia Generación Solar S.A’s
capital owned by Enel Chile. This price could vary due to
the application of the adjustments stipulated in the sale.
Completing the Sale and Purchase agreement was
estimated to positively affect Enel Chile's consolidated net
result of approximately US$ 110 million in 2023. It would
entail the loss of control and deconsolidation of Arcadia
Generación Solar S.A., which ceased to be a subsidiary of
Enel Chile.
Completing the aforementioned Sale implied the
cessation of the classified nature of the resolutions
adopted by Enel Chile’s Board of Directors on this matter
and of the classified significant events reported to the
CMF on September 29, 2022, and October 28, 2022.
October 24, 2023
Enel Chile S.A. issued a significant event to inform of the
completion of the sale and purchase agreement and
transfer of shares of Arcadia Generación Solar S.A., which
had been subject to meeting certain conditions precedent
usual for this type of transaction, including, among others,
the approval by the National Economic Attorney's Office
of the corresponding concentration operation, under D.L.
No. 211 of 1973, obtained on October 5, 2023, in pure and
simple form, that is to say, exempt from all conditions.
Upon satisfying all the conditions precedent and adhering
to the designated period, the Sale was effectively
finalized on October 24, 2023. As a consequence of the
aforementioned events, Enel Chile acquired 99.99% of the
capital of Arcadia Generación Solar S.A. on the same date
for an estimated acquisition price of US$556 million. On
the same date that the Sale was finalized, and Arcadia
Generación Solar S.A. met its principal obligations, a
change of control occurred, and the Company ceased
to be a subsidiary of Enel Chile S.A. The consolidated net
income of Enel Chile was substantially altered by the Sale
and Purchase deal, resulting in an estimated increase of
US$160 million in 2023.
Management change
Resignation and appointment of the Company's Chief
Executive Officer
January 25, 2024
Enel Chile reported that on January 25, 2024, Mr. Fabrizio
Barderi, the Company's CEO, presented his resignation
at an ordinary meeting of the Board of Directors. The
Chief Executive Officer remained in office until February
29, 2024, by which the Board of Directors approved Enel
Chile's financial statements for the 2023 financial year.
February 28, 2024
Enel Chile reported as an essential fact that on February
28, 2024, in an ordinary Board session, Mr. Giuseppe
Turchiarelli was appointed as the new General Manager
of Enel Chile, who assumed his duties on an interim basis
as of February 1. March 2024. The Board of Directors has
already considered the name of the definitive General
Manager, but procedural steps are still being carried out
to allow his appointment.
303
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
INFORMATION
ON SHARES AND
OTHER SECURITIES
Market information
Although the health crisis associated with the COVID-19
pandemic had ended, we continued to perceive its effects
on the economy during 2023, mainly reflected in the
inflation levels of all countries, which was exacerbated
by the war between Russia and Ukraine, and, to a lesser
extent by the war between Palestine and Israel in the
Middle East. Given the above, we saw the different central
banks around the world raising their monetary policy rates
to get closer to their respective inflation targets at the
end of 2022 and the beginning of 2023. This began to
generate uncertainty about the world's economic growth,
bringing back the fears of the 1970s recession when
growth was low and inflation remained high. However,
economies performed remarkably well in this scenario
of higher rates, which added to a decline in commodity
prices that contributed to lowering inflation levels and
improved expectations regarding the recession fears that
existed in world economies at the beginning of 2023.
Regarding the U.S. stock market, 2023 was marked by
the FED (Federal Reserve System) expectations of rate
fluctuations, generating uncertainty and volatility during
the year. However, this did not prevent the different indices
from closing the year with positive figures. In particular, the
Dow Jones Industrial Average™ index ended 2023 with a
13.7% increase compared to 2022, while the Nasdaq index
closed the year with a 53.81% increase.
In Chile, 2023 was marked by political-economic
uncertainty regarding the new process of drafting a
new Constitution, which was finally rejected in the exit
referendum in December, closing the process that began
in 2020. President Gabriel Boric confirmed that he would
not promote a new constitution-writing process during
the remainder of his term and that his government would
focus on pension and tax reforms instead.
At the same time, inflation in Chile receded in 2023,
approaching the Central Bank's target, but at the cost of
maintaining a contractionary Monetary Policy Rate at levels
not seen since 1998 and which only began to decrease
in the middle of the year. Thus, inflation in 2023 gradually
eased, winding up with a 3.9% variation at the end of the
year, well below the 12.8% in 2022.
Although the country's inflationary situation began to
improve, the Central Bank's measures slowed down the
economy, so the country recorded 0.2% growth in its GDP
during the year 2023. However, the national stock market
was decoupled from the behavior of the economy and its
main stock index, IPSA, closed the year with a profitability
of 17.8%. The above, explained due to the attractive
valuations and significant discounts due to the economic
and political situation of the country. In addition, 2023
was a year marked by the “El Niño” current, which brought
greater rainfall and had a positive impact in the results of
electrical companies, being one of the largest contributors
to the positive return of the index in the year.
At the same time, Enel Chile's shares registered a 46.2%
increase mainly due to the 2023 improved hydrological
conditions described above thanks to its progress of
expanding renewable projects and the start of commercial
operation of a large part of them and the conclusion of the
sale of Arcadia Generación Solar in October 2023.
304
Integrated Annual Report Enel Chile 2023
Variation
2023
2022
Cumulative 2022-2023
ENEL CHILE
46.2%
30.8%
91.2%
IPSA
17.8%
22.1%
43.9%
Variation
2023
2022
Cumulative 2022-2023
ENIC
44.0%
24.3%
79.0%
Down Jones Industrial
13.7%
-8.8%
3.7%
Down Jones Utilities
-8.9%
-1.4%
-10.1%
Statistical share-related information
Santiago Stock Exchange
The following table shows the variation of Enel Chile's stock and the Selective Stock Price Index (IPSA) in the local market
over the last two years:
New York Stock Exchange (NYSE)
The following table shows the variation of Enel Chile's ADSs listed on the NYSE (ENIC) and the Dow Jones Industrial and Dow
Jones Utilities indices over the last two years:
305
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
2023
Units
Amount (Ch$)
Average Price (Ch$)
1st Quarter
350,196,326
13,287,599,319
37.94
2nd Quarter
539,003,038
25,904,030,325
48.06
3rd Quarter
852,394,342
47,638,609,731
55.89
4th Quarter
300,027,501
16,838,670,215
56.12
Total 2023
2,041,621,207
103,668,909,590
50.78
2023
Units
Amount (Ch$)
Average Price (Ch$)
1st Quarter
2,754,487,006
104,597,176,064
37.97
2nd Quarter
6,207,813,943
295,703,435,588
47.63
3rd Quarter
6,701,044,870
382,274,979,402
57.05
4th Quarter
4,005,100,592
220,925,349,195
55.16
Total 2023
19,668,446,411
1,003,500,940,249
51.02
2022
1st Quarter
6,511,954,236
178,361,077,368
27.39
2nd Quarter
7,220,382,065
161,311,854,612
22.34
3rd Quarter
9,141,681,318
260,757,865,488
28.52
4th Quarter
4,837,023,434
171,511,055,151
35.46
Total 2022
27,711,041,053
771,941,852,619
27.86
2021
1st Quarter
5,329,987,142
298,942,285,171
56.09
2nd Quarter
5,254,896,415
246,448,928,734
46.90
3rd Quarter
3,031,402,886
118,396,081,528
39.06
4th Quarter
5,284,198,911
181,114,182,086
34.27
Total 2021
18,900,485,354
844,901,477,519
44.70
Stock Exchange transactions
The quarterly transactions carried out last year on the
stock exchanges where Enel Chile's shares are listed,
both in Chile through the Santiago Stock Exchange and
the Chilean Electronic Stock Exchange and in the United
States through the New York Stock Exchange (NYSE), are
detailed below.
Santiago Stock Exchange
In 2023, 19,668 million shares were traded on the Santiago Stock Exchange, equivalent to Ch$1,003,500 million. The closing
price of the share as of December 2023 was Ch$56.99.
Chilean Electronic Stock Exchange
On the Chilean Electronic Stock Exchange, 2,041 million shares were traded in 2023, equivalent to Ch$103,668 million. The
share's closing price as of December was Ch$ 57.99.
306
Integrated Annual Report Enel Chile 2023
2023
Units
Amount (Ch$)
Average Price (Ch$)
2022
1st Quarter
2,111,064,635
58,680,059,489
27.80
2nd Quarter
515,183,159
11,500,412,504
22.32
3rd Quarter
642,926,195
18,212,444,137
28.33
4th Quarter
395,608,976
14,131,187,160
35.72
Total 2022
3,664,782,965
102,524,103,290
27.98
2021
1st Quarter
131,542,515
7,700,114,844
58.54
2nd Quarter
125,795,035
5,877,705,672
46.72
3rd Quarter
170,403,691
6,702,618,346
39.33
4th Quarter
201,091,160
6,766,999,832
33.65
Total 2021
628,832,401
27,047,438,694
43.01
2023
Units
Amount (USD)
Average Price (USD)
1st Quarter
22,113,460
50,271,573
2.27
2nd Quarter
76,494,243
232,243,562
3.04
3rd Quarter
92,942,138
312,995,801
3.37
4th Quarter
50,880,579
157,805,336
3.10
Total 2023
242,430,420
753,316,272
3.11
2022
1st Quarter
64,091,455
113,684,796
1.77
2nd Quarter
45,677,006
61,771,895
1.35
3rd Quarter
30,815,879
46,751,647
1.52
4th Quarter
38,460,905
73,719,792
1.92
Total 2022
179,045,245
295,928,130
1.65
2021
1st Quarter
29,144,075
114,933,582
3.94
2nd Quarter
60,926,226
196,117,122
3.22
3rd Quarter
43,563,996
112,162,844
2.57
4th Quarter
71,726,363
150,727,635
2.10
Total 2021
205,360,660
573,941,184
2.79
New York Stock Exchange (NYSE)
The Company's shares began trading on the New York
Stock Exchange (NYSE) on April 27, 2016. An ADS (American
Depositary Share) of Enel Chile represents 50 shares, and
its mnemonic is ENIC. Citibank N.A. acts as a depositary
bank, and Banco Santander Chile is a custodian in Chile.
In 2023, 242 million ADSs were traded in the United States,
equivalent to US$753 million. The price of ADS closed in
December at US$3.24.
307
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
Millions of Chilean pesos - M$
Name of
the debtor
Country
Debtor
Company
Creditor's
Name
Creditor
Entity
Country
Currency
Type
Effective
Interest
Rate
Nominal
Interest
Rate
Type of
Amortization
Guarantee
to 31.12.2023
to 31.12.2022
Total
Current
Total Non-
Current
Total
Total
Current
Total Non-
Current
Total
Enel
Generación
Chile S.A.
Chile
BNY Mellon
- First
Issue S-1
USA.
US$
8.00%
7.87%
At Maturity
No
5,925
180,244
186,170
5,782
175,774
181,556
Enel
Generación
Chile S.A.
Chile
BNY Mellon
- First S-2
Issuance
USA.
US$
8.80%
7.33%
At Maturity
No
1,895
61,107
63,001
1,849
59,583
61,432
Enel
Generación
Chile S.A.
Chile
BNY Mellon
- First S-3
Issue
USA.
US$
8.68%
8.13%
At Maturity
No
1,200
30,068
31,268
1,171
29,208
30,379
Enel
Generación
Chile S.A.
Chile
BNY Mellon
- Unica
24296
USA.
US$
4.67%
4.25%
At Maturity
No
353,694
-
353,694
3,072
341,191
344,262
Enel
Generación
Chile S.A.
Chile
Banco
Santander
-317
Serie-H
Chile
UF
7.17%
6.20%
Semiannual
No
8,168
29,584
37,752
7,890
34,941
42,831
Enel
Generación
Chile S.A.
Chile
Banco
Santander
522
Serie-M
Chile
UF
4.85%
4.75%
Semiannual
No
33,864
166,539
200,403
32,385
190,616
223,002
Enel Chile
S.A.
Chile
BNY Mellon
- Unica
USA.
US$
5.24%
4.88%
At Maturity
No
2,257
865,156
867,413
2,202
841,932
844,134
Total
407,003
1,332,698
1,739,701
54,350
1,673,245
1,727,595
As of December 31, 2023, and 2022, there were no guaranteed obligations to the public.
Other issued securities
Unsecured obligations to the public as of December 31, 2023 were as follows:
308
Integrated Annual Report Enel Chile 2023
DIVIDENDS
2023 Dividend Distribution Charged to Profits
In a meeting held on February 28, 2023, the Company's
Board of Directors approved the Dividend Policy and
the corresponding procedure related to the payment of
dividends of Enel Chile S.A. for the 2023 financial year,
reported to shareholders at the Ordinary Shareholders'
Meeting held on April 26, 2023. This policy established
the distribution of a provisional dividend equivalent to
15% of profits as of September 30, 2023, as shown in the
Consolidated Financial Statements as of that date, to be
paid in January 2024.
On November 23, 2023, it was reported that, based on
the financial results of Enel Chile S.A., the provisional
dividend of 15% of Enel Chile's net profits accumulated as
of September 30, 2023 would be distributed, which was
paid in January 2024.
With regard to the final dividend, the Board of Directors
proposed in the 2023 Dividend Policy to distribute an
amount equivalent to 50% of the 2023 profits. The
final dividend will correspond to the one defined by the
Ordinary Shareholders' Meeting, to be held during the first
four months of 2024.
2024 and 2025 Dividend Policy
The Board of Directors intends to distribute a provisional
dividend, charged to the accumulated profits until
September 30, 2024, of up to 15% of these, as shown in
the Financial Statements of Enel Chile S.A. as of said date,
to be paid in January 2025.
The Board of Directors intends to propose to the Ordinary
Shareholders' Meeting, which will be held in the first
four months of 2025, to distribute as a final dividend, an
amount equivalent to 50% of the profits for fiscal year
2024. The final dividend will correspond to that defined by
the Ordinary Shareholders' Meeting, to be held in the first
four months of 2025.
Compliance with the aforementioned program will be
conditional, in terms of dividends, on the profits actually
obtained, as well as on the results indicated in the
projections periodically made by the Company or on the
absence of certain supervening conditions during the
corresponding year that could alter the aforementioned
projections, as appropriate.
The Board of Directors will also communicate its dividend
policy for 2025 in a timely manner once it is approved. In any
case, under Article 38 of the Social Statutes, the Ordinary
Meeting shall decide on the Board of Directors’proposal
establishing the amount of the dividends to be distributed
from the financial year 2025, which may not be less than
30% of the net profits for the year, unless unanimously
agreed by the issued shares. If there are no accumulated
losses, the Board of Directors may distribute provisional
dividends during the year from the profits registered for
the year.
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4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
Millions of Ch$
Profit for the year(*)
633,456
Distributable profit
633,456
(*) Attributable to the parent company
Dividend Payment Procedure
For the payment of dividends, whether provisional or
definitive and to avoid their undue collection, Enel Chile
S.A. contemplates the following modalities:
1. Deposit in a bank current account, whose holder is the
shareholder;
2. Deposit in a bank savings account, whose holder is the
shareholder;
3. Withdrawal of virtual check at any branch of Banco
de Crédito e Inversiones (BCI) throughout the country
or at the bank and its branches established for such
purpose and that will be reported in the notification
published on the payment of dividends. If said check is
not withdrawn, the nominee can withdraw the nominal
check at the offices of DCV Registros S.A. in its capacity
as administrator of Enel Chile S.A.’s shareholders'
registry.
For these purposes, bank checking or savings accounts
can be from any place in the country.
DCV Registros S.A. will employ the payment method
chosen by each shareholder as long as they do not
express in writing their intention to modify it and register
a new option. Shareholders who do not have a registered
payment method will be paid according to modality No. 3
above.
In the case of deposits in bank current accounts, Enel
Chile S.A. and/or DCV Registros S.A. may request the
corresponding banks to verify such deposits for security
reasons. If the accounts indicated by the shareholders are
objected to, either in a prior verification process or for
any other reason, the dividend will be paid following the
modality indicated in point No. 3 above. At the same time,
the Company has adopted. It will continue to embrace all
the security measures required by the dividend payment
process to safeguard the interests of both shareholders
and Enel Chile S.A.
Dividends paid
Distributable profit for the 2023 financial year
The distributable profit for the 2023 financial year is as follows:
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Integrated Annual Report Enel Chile 2023
No. Dividend
Dividend Type
Closing date of the
shareholders' register
Payment Date
Pesos Per Share
Charged to the
financial year
8
Provisional
1-25-2020
1-31-2020
0.44723
2019
9
Final
5-20-2020
5-27-2020
2.12182
2019
9
Potential
5-20-2020
5-27-2020
1.66096
(1)
10
Potential
5-22-2021
5-28-2021
3.07740
(2)
11
Provisional
1-22-2022
1-28-2022
0.10497
2021
12
Final
5-20-2022
5-27-2022
0.26437
2021
13
Provisional
1-21-2023
1-27-2022
0.32409
2022
14
Final
5-20-2023
5-26-2023
5.10663
2022
15
Provisional
1-20-2024
1-26-2024
0.59781
2023
(1) The Ordinary Shareholders' Meeting held on April 29, 2020, agreed to distribute the mandatory minimum dividend (final No. 9) charged to the
profits of the 2019 financial year. To offset the impairment losses recorded by the subsidiary Enel Generación Chile in 2019, the distribution of a
temporary dividend was approved against retained earnings from previous years.
(2) At the Ordinary Shareholders' Meeting held on April 28, 2021, to offset the impairment losses recorded by the subsidiary Enel Generación Chile
during 2020, shareholders agreed to distribute a dividend charged to retained earnings from previous years.
Dividends distributed
The following table shows the dividends per share paid over the past few years:
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4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
ANNUAL
MANAGEMENT
REPORT OF THE
DIRECTORS’
COMMITTEE
At the beginning of the 2023 financial year, the Company's
Directors’ Committee consisted of Mr. Fernán Gazmuri
Plaza, Mr. Pablo Cabrera Gaete, and Mr. Gonzalo Palacios
Vásquez, chaired by Mr. Gazmuri Plaza, who also served
as Financial Expert of this corporate body. On April
28, 2021, the Board of Directors, after the Ordinary
Shareholders' Meeting held on the same date that elected
the Company’s Board of Directors, appointed Mr. Gazmuri
Plaza, Mr. Cabrera Gaete and Mr. Palacios Vásquez as
members of the Directors’ Committee. The three are
independent under the definition of Article 50 bis of Law
18,046 on Corporations and the Sarbanes Oxley Act and
complementary legislation.
In an ordinary session of the Directors’ Committee
held on April 28, 2021, Mr. Fernán Gazmuri Plaza was
appointed Chairman of the Committee and Mr. Domingo
Valdés Prieto, Secretary of the same. On the same date,
the Company’s Board of Directors appointed Mr. Fernán
Gazmuri Plaza as Financial Expert in an ordinary meeting.
The Directors’ Committee met twelve times in 2023,
including the present session, in full compliance with the
obligations outlined in Article 50 bis of Law 18.046 and the
Sarbanes Oxley Act of the United States of America and
other applicable regulations.
During the 2023 financial year, the Directors’ Committee
addressed the matters within its competence, as
summarized below:
1. Financial Statements.
The ordinary meeting held on February 28, 2023,
unanimously declared it had examined the Company's
Consolidated Financial Statements as of December 31,
2022, its Notes, Income Statements, and Significant
Events, as well as the Reports of the External Auditors and
Auditors on the matter.
In an ordinary meeting on April 26, 2023, the Directors’
Committee unanimously declared that the Company's
Consolidated Financial Statements as of March 31, 2023,
its Notes, Income Statements, and Significant Events had
been examined.
In an ordinary meeting on July 25, 2023, the Directors’
Committee
unanimously
resolved
to
examine
the
Company's consolidated financial statements as of June
30, 2023, its Notes, Press Release, Income Statements, and
Significant Events, as well as the opinion of the External
Auditors, issued "without remarks."
At a regular meeting held on October 31, 2023, the
Company's Consolidated Financial Statements as of
September 30, 2023, its Notes, Income Statements and
Significant Events, and the Report on Related Transactions
were declared unanimously examined.
2. Report of External Auditors on Bank Drafts and Money
Brokerage.
During its regular session on February 28, 2023, the
Directors' Committee unanimously acknowledged and
officially recognized the Report on Money Brokerage, Bank
Drafts, and Securities Intermediation. This report was
prepared by the External Auditors of Enel Chile S.A., KPMG
Auditores Consultores Ltda.
3. Self-Assessment Report on the Internal Control System
for Financial Reporting.
The Directors’ Committee discussed this matter in an
ordinary meeting held on February 28, 2023. The ad-
hoc president of that session, Mr. Pablo Cabrera Gaete,
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Integrated Annual Report Enel Chile 2023
reported that it was appropriate to examine the internal
control of the financial report for 2022, the results,
identified deficiencies, and action plans. The Directors’
Committee, by a unanimous vote of its members, agreed
to examine the internal control of the financial reporting of
Enel Chile S.A.
4. Directors’ Committee budget
In an ordinary meeting held on February 28, 2023, the
Directors’ Committee unanimously approved the proposal
of the Committee’s Budget for the 2023 financial year
totaling 10,000 Unidades de Fomento for the purposes of
expenses and operation of the Directors’ Committee and
its advisors. The Directors’ Committee also resolved, by the
unanimity of its members, to submit the aforementioned
proposal of the Committee’s budget for 2023 to the
Board of Directors so that, if the last agreed, it would
be forwarded to the Company’s Ordinary Shareholders'
Meeting to decide on this matter under its powers.
5. External Auditors’ Review of NCG Matters N°461 CMF.
In an ordinary session held on February 28, 2023,
the Directors Committee unanimously approved the
examination of the presentation submitted by the
organization's External Auditors. The presentation dealt
with the voluntary aspects of good corporate governance
outlined in number 1 d) of General Standard No. 385 of the
CMF, which has since been repealed. The Company further
stated that it resolved to proceed with its operations
following General Standard No. 461 stipulations.
6. Report on Recurring and Non-Recurring Services of
External Auditors during the 2022 financial year and Cost
Estimate for the 2023 financial year.
In an ordinary meeting on 28 February 2023, the Directors
Committee unanimously agreed to declare the report on
the recurring and non-recurring services of the External
Auditors during the financial year 2022, as well as the cost
estimate for the financial year 2023 examined.
7. Supervision and Evaluation of External Auditors.
In an ordinary meeting on February 28, 2023, the
Committee unanimously agreed to classify the work
carried out by the Company's External Auditors, KPMG
Auditores Consultores Ltda., during the 2022 financial year
as satisfactory.
8. Non-Recurrent Services of External Auditors.
In an ordinary session held on January 25, the Directors’
Committee analyzed the services to be provided by
external auditors, other than recurrent external auditors,
and the Committee unanimously declared that they did not
compromise the technical suitability or independence of
judgment of the respective external audit firms providing
services. This follows the provisions of Section 202 of the
Sarbanes Oxley Act, in Article 242, the final paragraph of
Law 18,045 on the Securities Market, and the Regulations
of the Committee of Directors.
9. Form 20-F (Securities and Exchange Commission) of
the United States of America.
In an ordinary meeting on April 26, 2023, the Directors’
Committee unanimously declared that it had examined
the financial statements under IFRS incorporated in Form
20-F so that it could be filed with the Securities and
Exchange Commission of the United States of America
(SEC), to comply with the rules and requirements issued
by said public authority.
10. Review of Related Party Transactions.
In an ordinary meeting held on January 25, 2023, the
Directors' Committee reviewed a transaction involving
related parties. This transaction pertains to the Renewal of
the Guarantee Program that Enel Chile S.A. will provide to
Enel Green Power Chile S.A. and its subsidiaries. Enel Chile
S.A. will grant corporate guarantees, also known as "parent
company guarantees" or other corporate guarantees,
to verify their obligations. The total amount of these
guarantees will be up to US$ 150 million (plus applicable
taxes), with each guarantee having a maximum value of
up to US$ 60 million. The guarantees will have a maximum
duration of 3 years and be subject to other specified terms
and conditions.
In an ordinary meeting on February 28, 2023, the Directors'
Committee reviewed a transaction involving related parties.
This transaction involved the Sublease Agreement of the
Santa Rosa Complex between Enel Generación Chile S.A.
and Enel Chile S.A. The agreement stipulated that Enel
Chile S.A. would be the sublessee and Enel Generación
Chile S.A. would be the sublessor. The monthly rent for
the Santa Rosa Complex was set at 2,522.49 UF, with an
additional variable amount of approximately the same
value. The agreement was effective from March 1, 2023, to
March 31, 2024, with the option to renew for one-month
periods.
In an ordinary meeting held on February 28, 2023, the
Directors’ Committee examined the transaction with
related parties consisting of the signing of Sublease
Agreements between Enel Chile S.A. as sublessor and the
companies Enel Generación Chile S.A., Empresa, Eléctrica
Pehuenche S.A., Energía y Servicios South America S.A.,
Enel Green Power Chile S.A., Enel Distribución Chile S.A.,
Enel X Way Chile S.A. and Enel Américas S.A., as sub-
tenants, on the MUT property.
313
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4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
In an ordinary meeting held on March 29, 2023, the
Directors’ Committee examined the transaction with
related parties consisting of the signing of the Centralized
Cash Agreement between Enel Chile S.A. and Enel Mobility
Chile SpA, which must be updated from time to time,
according to the rate update procedure approved by the
Board of Directors of Enel Chile. Similarly, the method to
establish the interest rate of structured loans, previously
approved by the Company's Board of Directors, will also
be applicable.
In an ordinary meeting on March 29, 2023, the Directors’
Committee examined the transaction consisting of the
Transition from LIBOR to SOFR in Financial Contracts,
a transaction with related parties concerning financial
contracts with counterpart Enel Finance International
NV (EFI), derivative contracts, credit lines and bank loans
currently in force with BBVA, SMBC, Santander, Scotiabank
and EFI.
In an ordinary meeting held on March 29, 2023, the
Directors’
Committee
examined
the
transaction
with related parties consisting of the signing of the
Reimbursement Agreement with Enel North America,
under which Enel Chile S.A. will reimburse Enel North
America (i) for all expenses incurred by Enel North America
in connection with Enel Chile S.A.'s Investor Relations
office in New York (establishing that they correspond to
30% of the total of office expenses), including, but not
limited to, the portion corresponding to rent, basic bills
and other expenses related to the operation of the office
and (ii) all expenses borne by Enel North America that
relate to the person responsible for the Investor Relations
area based in New York (disbursements for travel, travel
and accommodation, among others).
In an ordinary meeting on May 24, 2023, the Directors’
Committee examined a transaction with related parties
related to the Extension of the Current Program with the
European Investment and Guarantee Bank of Enel SpA,
consisting of structuring and obtaining financing with the
European Investment Bank, with the following reference
conditions: (i) total amount: up to US$200 million; (ii)
counterpart: European Investment Bank; (iii) currency:
United States dollars; (iv) maturity: up to 15 years; (v)
interest rate: indicative reference SOFR + 210 bps.; and
(vi) guarantee: corporate guarantees from Enel SpA for
20% and SACE for the remaining 80%; and in the signing
of the respective guarantee service agreement with Enel
SpA, under contractual terms substantially similar to
the documentation signed in relation to the guarantee
granted by the previous BEI financing.
In an ordinary meeting held on June 27, 2023, the Directors’
Committee examined a transaction with related parties
on a New Short-Term Financing for Enel Chile, consisting
of structuring and obtaining new financing under the
following terms and conditions: (i) Total amount: US$320
million; (ii) counterpart: Enel Finance International (EFI); (iii)
Currency: dollars; (iv) Maturity: Up to 3 months (v) All-in
spread cost (spread + upfront): Term-SOFR + 0.75%; (vi)
Warranties: None; and (vii) Legislation: Italian. If required,
promissory notes governed by Chilean law will be granted.
In an ordinary meeting held on July 25, 2023, the Directors’
Committee examined a transaction between related
parties consisting of a centralized cash agreement with the
subsidiary Arcadia Generación Solar S.A. under the same
general terms and conditions contemplated for all direct
and indirect subsidiaries of the Enel Group in Chile, which
will remain in force only as long as said company is part
of the Enel Group. The terms and conditions, particularly
the centralized cashier's rates, will be those prevailing in
the market as of July 25, 2023. The rates may be reviewed
periodically in accordance with the procedure previously
approved by the Board of Directors of Enel Chile S.A. at a
meeting held on January 22, 2020, and at a meeting held
on February 28, 2022.
In an ordinary meeting held on July 25, 2023, the Directors’
Committee examined the transaction with related parties
consisting of granting a corporate guarantee, under which
Enel Chile S.A. will guarantee the faithful fulfillment of the
indemnity obligations that its subsidiary Enel Green Power
Chile S.A. takes on before Enel Generación Chile S.A.
arising from the changes in the nature of certain energy
supply contracts (physical contracts to financial contracts).
In an ordinary meeting held on October 31, 2023, the
Directors’ Committee examined the transaction with
related parties consisting of modifying the contract for
the provision of GDS services for the management of
information technology and telecommunications systems
and projects between Enel Chile S.A. as a supplier and
Enel Américas S.A. as recipient specifically of the second
clause relating to price, increasing up to 40% of the value
of the Contract, the reduction of the services that the
parties may agree.
In an ordinary meeting held on December 19, 2023, the
Directors’ Committee examined the transaction with
related parties consisting of the incorporation of Enel Chile
S.A. into a Consortium together with other companies
of the Group, which will be incorporated and governed
by Italian law. The Consortium will be an associative
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Integrated Annual Report Enel Chile 2023
entity, without legal personality, whose function will be
to coordinate, optimize, and standardize the activities
included in the accounting operations processes,
managed according to the new platform operating model
(DAP – Dynamic Accounting Platform), to pursue shared
objectives of standardization, digitalization, compliance,
and economic efficiency of the participating companies.
In an ordinary meeting held on December 19, 2023, the
Directors’ Committee examined the transaction with
related parties consisting of restituting by Enel Chile S.A.
to Enel Green Power Chile S.A., approximately US$1.3
million, corresponding to an account receivable held by
Enel Green Power Chile S.A. against Arcadia Generación
Solar S.A., generated in the framework of the sale of
Arcadia Generación Solar S.A to Sonnedix Chile Arcadia
Generación SpA and Sonnedix Chile Arcadia SpA.
11. Proposal of Private Risk Rating Agencies
In an ordinary meeting held on February 28, 2023, the
Directors’ Committee unanimously agreed to propose to
the Company's Board of Directors the companies Feller
Rate Clasificadora de Riesgo Limitada and Fitch Chile
Clasificadora de Riesgo Limitada, as private national
risk rating agencies to be subsequently proposed at
the respective shareholders' meeting and Fitch Ratings,
Moody's Investors Services and Standard & Poor's
International Rating Services, as private international risk
rating agencies, for the 2023 financial year.
12. Proposal of external auditors.
In an ordinary meeting held on March 29, 2023, the
Directors’ Committee unanimously agreed to propose to
the Board of Directors that the following order of priority
be suggested to the Ordinary Shareholders' Meeting for
the appointment of Enel Chile S.A.'s external audit firm for
2023: KPMG Auditores Consultores Ltda, Mazars Auditores
Consultores SpA, PKF Chile Auditores Consultores Ltda.
and Grant Thornton Chile SpA. The grounds considered
relevant to propose KPMG Auditores Consultores Ltda as
the Company's external auditor were the following: (i) the
proposal of KPMG Auditores Consultores Ltda is the most
competitive according to the technical and economic
evaluation carried out; (ii) the agency has a high qualification
in the quality of available resources and experience in the
electricity sector; (iii) it is one of the four most important
external audit firms internationally and nationally; and (iv)
it is the external auditing company with the highest level
of synergy for Enel Chile S.A., since the controller of Enel
Chile S.A., Enel S.p.A., has KPMG Auditores Consultores
Ltda as its main external auditor.
13. Ordinary External Audit Contract.
In an ordinary meeting held on May 24, 2023, the Directors
Committee unanimously agreed to declare the contract
to be signed between Enel Chile S.A. and the external
auditors KPMG Auditores Consultores Ltda examined and
approved.
14. Complaints to the Ethics Channel.
In the ordinary meetings held on June 27, 2023, and
December 19, 2023, the Directors' Committee unanimously
expressed their opinion on each complaint. They provided
instructions on how to proceed with each complaint and
confirmed the resolutions already made by the committee.
Additionally, they stated that the Chairman of the Directors'
Committee will convene an extraordinary session if a
complaint warrants it, as determined by the Chairman.
15. Remuneration system and compensation plans for
the Company's managers, principal executives, and
employees.
In an ordinary meeting held on March 29, 2023, the
Directors
Committee
unanimously
declared
the
Company's remuneration systems and compensation
plans for managers, senior executives, and employees
officially examined.
16. Presentations on sustainability.
In ordinary meetings held on May 24, 2023, June 27,
2023, and August 30, 2023, the Directors' Committee
unanimously acknowledged that it had formally recognized
the Company's presentation on sustainability matters.
Expenses of the Directors’ Committee of Enel Chile S.A.
The Directors’ Committee did not use the operating
expenses budget approved by the Ordinary Shareholders'
Meeting held on February 28, 2023.
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4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
RISK
FACTORS
Material Risks Related to Our Business
Our businesses depend heavily on hydrology and
are affected by droughts, flooding, storms, ocean
currents, and other chronic changes in climatic and
weather conditions as a result of climate change.
Climate change is a major global challenge that exposes
our businesses to a variety of medium- and long-
term risks. Our generation business has been in the
past and could be in the future negatively affected
by arid hydrological conditions, which has and could
negatively affect our ability to dispatch energy from our
hydroelectric generation facilities. Our operations and
results have been adversely affected when hydrological
conditions in Chile have been significantly below
average, as has been the case for much of the period
since 2007.
Hydrological conditions in Chile have often been subject
to two weather phenomena dealing with ocean currents
- El Niño and La Niña - that influence rainfall and may
result in drought or flooding, depending on the region
affected. In the past, El Niño has affected hydrologic
conditions in Chile leading to rainfall deficits, high
temperatures, and higher energy prices in some years,
and unusually intensive rains, flooding, and landslides
that negatively impacted our hydroelectric power plants
in other years. In June and August 2023, El Niño brought
intense rains to Chile and caused severe flooding that
delayed starting up our Los Cóndores hydroelectric
power plant. The intense rainfall attributed to El Niño
positively affected our hydroelectric generation in the
Bio-Bio and Maule regions. However, climatologists
predict that El Niño will result in hot and dry conditions
in Chile through the first half of 2024, which could
negatively affect our hydroelectric generation.
Our subsidiary Enel Generación Chile has entered into
certain agreements with the Chilean government and
local irrigators regarding water use for hydroelectric
generation purposes during low water levels. However,
if droughts persist, we have and may in the future face
increased pressure from the Chilean government or
other third parties to further restrict our water use,
which could have a material adverse effect on our
business and results of operations.
Our distribution business is also affected by inclement
weather
conditions.
With
extreme
temperatures,
demand for electricity can increase significantly within
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Integrated Annual Report Enel Chile 2023
a short period, affecting service and resulting in service
outages that have resulted and may in the future result
in the imposition of fines on our distribution business.
Furthermore, with increased severity and frequency
of extreme climate events, heavy rainfall or snowfall
may occur in a short period and be accompanied by
windstorms and lightning. These events may damage
our power distribution infrastructure, resulting in
service outages. As a result, depending on weather
conditions, our distribution business results can vary
significantly from year to year.
Our operating expenses also increase during drought
periods when thermal power plants, which have
higher operating costs relative to hydroelectric power
plants, are dispatched more frequently to make
up the electricity generation deficit from reduced
hydroelectric generation. In addition, our thermal power
plants generate greenhouse gas (“GHG”) emissions.
Depending on our commercial obligations, we may need
to buy electricity at higher spot prices to comply with
our contractual supply obligations. Beyond increasing
our operating costs, the cost of these electricity
purchases has exceeded and may in the future exceed
our contracted electricity sale prices, thus potentially
producing losses from those contracts. For example,
in 2022, spot prices reached historic highs, resulting in
losses from certain contracts.
Droughts also indirectly affect the operation of our
thermal power plants, principally our facilities that use
natural gas or diesel fuel. Our thermal power plants
require water for cooling, and droughts may reduce
water availability and increase transportation costs. As a
result, we may have to purchase water from agricultural
areas that are also experiencing water shortages in order
to operate our thermal plants. These water purchases
have and may continue to increase our operating
costs and require us to negotiate further with the local
communities. If such negotiations are unsuccessful, we
may be unable to obtain the water necessary to operate
our thermal power plants.
Recovery from current or future droughts affecting the
regions in Chile where most of our hydroelectric power
plants are located may take place over an extended
period, and there can be no assurance that any recovery
will reach pre-drought hydrological conditions or that
any recovery will occur at all. Climate change may
increase the likelihood of prolonged droughts and
exacerbate the risks described above, which would
have a further adverse effect on our business, results of
operations, and financial condition.
Our non-conventional renewable energy businesses
are also subject to physical, operational, and financial
risks related to climate change effects.
The electricity generated by our solar and wind
generation facilities is highly dependent on climate
factors other than hydrology, including suitable
solar and wind conditions, which, even under normal
operating circumstances, can vary greatly. Climate
change may also have long-term effects on wind
patterns and the amount of solar energy received at a
particular solar facility, reducing or increasing electricity
generated by these facilities. Although we base our
business decisions on solar and wind studies for each
renewable energy facility, actual conditions may not
conform to the findings of these studies. The solar and
wind conditions may be negatively affected by changes
in weather patterns, including the potential impact of
climate change.
If our renewable energy production falls below
anticipated levels, we may have to dispatch electricity
from our backup thermal power plants to make up the
electricity generation deficit. Our thermal power plants
have higher operating costs than our renewable energy
facilities and generate GHG emissions. We also have
needed and may in the future need to buy electricity in
the spot market to fulfill our solar and wind generation
facilities’ contractual supply obligations, which may be
at prices higher than the contracted electricity sales,
thus potentially producing losses from those contracts.
These impacts have increased and could in the future
increase our costs or result in losses and have a material
adverse effect on our business, results of operations,
and financial condition.
We depend on distributions from our subsidiaries to
meet our payment obligations.
We rely on cash from dividends, loans, interest payments,
capital reductions, and other distributions from our
subsidiaries to pay our obligations. Such payments and
distributions may be subject to legal constraints, such as
dividend restrictions, fiduciary obligations, contractual
limitations, and foreign exchange controls imposed by
local authorities.
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4 Enel Chile's Business and
Management 2023
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Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
Our subsidiaries’ ability to pay dividends or make loan
payments or other distributions to us is limited by
their operating results. To the extent that any of our
subsidiaries’ cash requirements exceed their available
cash, they will not be able to make funds available to us.
Insufficient cash flows from our subsidiaries may result
in their inability to meet debt obligations and the need
to seek waivers to comply with some debt covenants.
To a limited extent, these subsidiaries may require
guarantees or other emergency measures from us as
shareholders.
The inability to obtain distributions from our subsidiaries
described above could adversely affect our business,
results of operations, and financial condition.
Construction and operation of power plants may
encounter significant delays, stoppages, cost overruns,
and stakeholder opposition that may damage our
reputation and impair our goodwill with stakeholders.
Our power plant projects may be delayed in obtaining
regulatory approvals or may face shortages and
increases in the price of equipment, materials, or labor.
They may be subject to construction delays, strikes,
accidents, and human error. Any such event could
negatively affect our business, results of operations,
and financial condition.
Market conditions may change significantly between
the approval and completion of a project, which, in
some cases, may decrease its profitability or render it
impracticable. Deviations in market conditions, such
as estimates of timing and expenditures, may lead to
cost overruns and delays in project completion that
widely exceed our initial forecasts. In turn, this may have
a material adverse effect on our business, results of
operations, and financial condition.
We may develop new projects in locations with
challenging geographical topography, such as mountain
slopes, high altitudes, or other areas with limited access.
Additionally, given some projects’ locations, there may
be additional inherent risks to archaeological heritage
sites. These factors may also lead to significant delays
and cost overruns.
The operation of our thermal power plants may also
affect our goodwill with stakeholders due to GHG
emissions that could adversely affect the environment
and local residents. In addition, communities might have
their own interests and different perceptions of the
company and may be influenced by other stakeholders
or motivations unrelated to the project. Therefore, if the
company fails to engage with its relevant stakeholders,
we may face opposition, which could negatively affect
our reputation, impact operations, or lead to litigation
threats or actions.
Our reputation is the foundation of our relationship with
key stakeholders and other constituencies. Any damage
to our reputation may exert considerable pressure on
regulators, creditors, and other stakeholders, possibly
leading to the abandonment of projects and operations,
which could cause our share prices to drop and hinder
our ability to attract and retain valuable employees. Any
of these outcomes could result in an impairment of
our goodwill with stakeholders. If we do not effectively
manage these sensitive issues, they could adversely
affect our business, results of operations, and financial
condition.
Our long-term electricity sales contracts are subject
to fluctuations in the market prices of certain
commodities, energy, and other factors.
We have exposure to fluctuations in certain commodity
market prices that affect our long-term electricity sales
contracts. These contracts commit our generation
subsidiaries to material obligations as selling parties
and contain prices indexed to different commodities,
exchange rates, inflation, and the market price of
electricity. Unfavorable changes to these indices would
reduce the rates we can charge under these contracts,
which could adversely affect our business, results of
operations, and financial condition.
We are subject to incremental risks in distribution
markets that are becoming more liberalized.
In our distribution business, some customers who
meet certain requirements are free to choose between
regulated and unregulated tariffs. Since 2016, some
customers who had freely chosen regulated tariffs
have switched to the unregulated tariff regime due
to lower prices. These customers are tendering their
electricity needs, either directly or in association with
other customers, under the unregulated tariff regime
because regulated tariffs are currently higher than
unregulated tariffs due to the former being based on
contracts tendered in the past at higher prices. Lower
market prices may reduce the number of customers
who choose regulated tariffs, and customers switching
to unregulated tariffs may also choose an alternative
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energy provider, other than us, which could adversely
affect our business, results of operations, and financial
condition.
If third-party electricity transmission facilities, gas
pipeline infrastructure, or fuel supply contracts fail to
provide us with adequate service, we may be unable to
deliver the electricity we sell to our final customers.
We depend on transmission facilities owned and
operated by other companies to deliver the electricity we
sell. This dependence exposes us to several risks. If the
transmission is disrupted, or its capacity is inadequate,
we may be unable to sell and deliver our electricity,
particularly electricity generated by our solar and
wind plants, which requires more flexibility. If a region’s
power transmission infrastructure is inadequate, our
recovery of sales costs and profits may be insufficient.
If
restrictive
transmission
price
regulations
are
imposed, transmission companies that we rely on may
not have sufficient incentives to invest in expanding
their infrastructure, which could unfavorably affect our
results of operations and financial condition or affect
our ability to deploy our portfolio of projects under
development. The construction of new transmission
lines may take longer than in the past, mainly because of
sustainability, social, and environmental requirements
that create uncertainties regarding project completion
timing. As a result, renewable energy generation projects
are being completed faster than new transmission
projects, creating a backlog of electricity that is difficult
to transmit through current transmission systems. Also,
our thermal power plants connected to natural gas
pipelines are subject to stoppages should material
disruptions in the pipeline occur. Stoppages could force
us to purchase electricity at spot market prices, which
could be higher than the contracted fixed sale price
to customers. We could also be forced to dispatch our
natural gas power plants using LNG that is transported
by barge and is more expensive than natural gas that
is transported from Argentina through these pipelines,
which, in turn, could increase our operating expenses.
These scenarios could adversely affect our business,
results of operations, and financial condition.
Labor disputes, our inability to reach satisfactory
collective bargaining agreements with our unionized
employees or our inability to attract, train, and retain
key employees could adversely affect our business,
results
of
operations,
financial
condition,
and
reputation.
Our business relies on attracting and retaining many
highly specialized employees, and a large percentage
of our employees are members of unions with whom
we have collective bargaining agreements that must be
renewed regularly. Our business, results of operations,
and financial condition could be unfavorably affected
by a failure to reach a collective bargaining agreement
with any labor union or by a deal with a labor union that
contains terms we view as unfavorable. Chilean law
provides legal mechanisms for judicial authorities to
impose a collective bargaining agreement if the parties
cannot agree. Specific actions such as strikes, walkouts,
or work stoppages by these unionized employees could
negatively impact our business, results of operations,
financial condition, and reputation.
In addition, we may experience shortages of qualified
key personnel. In April 2021, we announced an employee
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Voluntary Retirement Program, open to men at least
60 and women at least 55 years old, with incentives
for qualifying employees who accept retirement. This
program may reduce our headcount by more than our
ability to hire new employees to fill key positions. There
can be no assurances that we will be able to attract,
train, or retain key personnel or be able to do so without
costs or delays.
Interruption in or failure of our information technology,
control, and communications systems or cyberattacks
to or cybersecurity breaches of these systems could
have a material adverse effect on our business, results
of operations, and financial condition.
We operate in an industry that requires the continued
operation of sophisticated information technology,
control, and communications systems (“IT Systems”)
and network infrastructure. We use our IT Systems and
network infrastructure to create, collect, use, disclose,
store, dispose of, and otherwise process sensitive
information, including company and customer data and
personal information regarding customers, employees
and their dependents, contractors, shareholders, and
other individuals. IT Systems are critical to controlling
and
monitoring
our
power
plants’
operations,
maintaining generation and network performance,
monitoring smart grids, managing billing processes
and customer service platforms, achieving operating
efficiencies, and meeting our service targets and
standards in our generation and distribution businesses.
The operation of our generation system is dependent
not only on the physical interconnection of our facilities
with the electricity network infrastructure but also on
communications among the various parties connected
to the network. The reliance on IT Systems to manage
information and communication among those parties
has increased significantly since the implementation of
smart meters and intelligent grids in Chile.
Our generation and distribution facilities, IT Systems,
and other infrastructure and the information processed
in our IT Systems could be affected by cybersecurity
incidents, including those caused by human error.
Cybersecurity incidents have evolved dramatically in
recent years, and the number of incidents and their
degree of impact have grown exponentially, making it
increasingly difficult to identify their source in a timely
manner. Our industry has begun to see an increase in the
volume and sophistication of cybersecurity incidents
from international activist organizations, nation-states,
and individuals. In this context, we believe that proper
cybersecurity risk management requires a long-term
strategy leveraging a proactive approach and iterative
actions performed over time and that approaching
cyber-risk with a single initiative may not be an efficient
and effective strategy to manage and reduce risks
related to cybersecurity. However, there can be no
assurance that our cybersecurity risk management
strategy will be successful or precent cybersecurity
incidents from occurring.
Although the Group has defined a model for managing
these risks and, in particular, has adopted a “Cyber
Security Framework” to guide and manage cybersecurity
activities,
based
on
business
needs,
regulatory
requirements,
and
closely
linked
technologies,
processes, and people, we could be subject to cyber
incidents and other security threats to our IT Systems.
Cybersecurity incidents could harm our business by
limiting our generation and distribution capabilities,
delaying our development and construction of new
facilities or capital improvement projects to existing
facilities, disrupting our customer operations, or
exposing us to various events that could increase our
liability exposure. Our generation and distribution
business systems are part of an interconnected system.
Given the role of electricity as a vital resource in modern
society, a widespread or prolonged disruption caused
by the impact of a cybersecurity incident in the electric
transmission grid, network infrastructure, fuel sources,
or our third-party service providers’ operations could
have broad socio-economic ramifications across
households, businesses, and vital institutions, which
could unfavorably affect our business.
Our businesses require the collection and storage of
personally identifiable information of our customers,
employees, and shareholders, who expect that we will
adequately protect the privacy of such information.
Cybersecurity breaches may expose us to a risk of loss
or misuse of confidential and proprietary information.
Significant theft, loss, or fraudulent use of information,
or other unauthorized disclosure of personal or sensitive
data, may lead to high costs to notify and protect the
impacted persons. It could cause us to become subject
to significant litigation, losses, liability, fines, or penalties,
any of which could materially and adversely affect our
results of operations and reputation. We may also be
required to incur significant costs associated with
governmental actions in response to such intrusions
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or strengthen our information and electronic control
systems.
The cybersecurity threat is dynamic, evolving, and
increasing in sophistication, magnitude, and frequency.
We may be unable to implement adequate preventive
measures or accurately assess the likelihood of a
cybersecurity incident. We are unable to quantify the
potential impact of cybersecurity incidents on our
business and reputation. These potential cybersecurity
incidents and corresponding regulatory action could
result in a material decrease in revenues and high
additional costs, such as penalties, third-party claims,
repairs,
increased
insurance
expense,
litigation,
notification and remediation, security, and compliance
costs.
We have experienced and may in the future experience
increased interest in our environmental, social, and
governance (“ESG”) practices and commitments
from our stakeholders, investors, and regulatory
bodies. Failure to disclose, meet, or address our ESG
practices or commitments could negatively impact
our reputation, investment in our common stock and
ADSs, or our access to capital markets.
Our goal is to reduce carbon emissions from our electric
generation facilities to achieve net-zero CO2 emissions
by 2040. We continue to monitor the financial and
operational feasibility of taking more aggressive action
to further reduce GHG emissions. Our strategic plan
to replace older, fossil-fueled generation with zero-
carbon-emitting renewable generation will contribute
to the achievement of our goals related to reducing
CO2 emissions. However, our ability to achieve such
goals depends on many external factors, including the
development of relevant energy technologies and the
ability to execute our capital plan. These efforts could
impact how we operate our electric generating units
and lead to increased competition and regulation, all
of which could have a material adverse effect on our
operations and financial condition.
We cannot guarantee that we will be able to achieve
or maintain our announced ESG goals, practices and
commitments. Our failure or perceived failure to
achieve our ESG goals, maintain practices aligned with
stakeholder expectations for best practices, or comply
with new ESG expectations could harm our reputation,
adversely impact our ability to attract and retain
customers and employees, and expose us to legal and
regulatory proceedings and increased scrutiny from a
range of stakeholders. Some stakeholders may disagree
with our ESG related goals and commitments, which
may adversely impact our business and reputation and
the prices of our securities.
Our ability to successfully execute our strategic plan,
including the transition of our generation facilities and
achievement of our CO2 emissions reduction targets,
may affect customers’, investors’, legislators’, and
regulators’ opinions and actions. If they have or develop
a negative opinion of us due to increasing scrutiny of
ESG practices or our failure to meet our announced
ESG commitments, this could result in increased
costs associated with regulatory oversight and could
make it more difficult for our businesses to achieve
favorable legislative or regulatory outcomes. In addition,
increased focus and activism related to ESG and similar
matters may hinder our access to capital, as investors
may decide to reallocate capital or not commit capital
as a result of their assessment of our ESG practices.
Any of these consequences could adversely affect our
reputation, investment in our securities, or our access
to capital markets and negatively impact our results of
operations, financial position, and liquidity.
We may be unable to enter into suitable acquisitions or
successfully integrate businesses that we acquire.
On an ongoing basis, we carry out mergers and review
acquisition prospects to expand our operations, which
may increase our market coverage or provide synergies
with our existing businesses. However, there can be no
assurance that we will be able to identify and acquire
suitable companies in the future. The acquisition and
integration of independent companies that we do
not control may be a complicated, costly, and time-
consuming process that may strain our resources and
relationships with our employees and customers.
These mergers and acquisitions may not ultimately be
successful or achieve the expected benefits and may
encounter delays or difficulties in connection with the
integration of their operations due to several factors,
for example:
• inconsistencies in standards, controls, procedures
and policies, business cultures, and compensation
structures;
• difficulties in integrating various business-specific
operating procedures and systems, as well as our
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financial, accounting, information, and other systems;
• complications in retaining key employees, customers
and suppliers;
• unexpected transaction costs or failures in the
assessed value or a proper projection of the potential
benefits and synergies; and
• diversion of our management’s attention from their
other responsibilities.
Any of these risks encountered in the integration
process could have a material adverse effect on our
revenues, expenses, results of operations, and financial
condition.
Material Risks Related to Regulatory Matters
Governmental regulations may unfavorably affect our
businesses, cause delays, impede the development of
new projects, or increase the costs of operations and
capital expenditures.
Our electricity businesses are subject to extensive
regulation, inspections, and audits. The tariffs we charge
to our customers are a result of a tariff-setting process
defined by regulators, which may negatively affect
our profitability. Our business is also exposed to the
decision of governmental authorities regarding material
rationing policies during droughts or prolonged power
outages, or regulatory changes that may unfavorably
affect our future operations and profitability.
For example, in the context of the social crisis that
began in October 2019, the government enacted Law
No. 21,185, which established a transitory mechanism
for stabilizing customers’ electricity prices under the
regulated price system. The mechanism eliminates the
price increase of 9.2% that would have been applied
to regulated customers as of July 2019 and defers the
price increase for the sale of electricity under contracts
between generation and distribution companies that
start before 2021. A price stabilization funding program
was implemented by the National Energy Commission
(“CNE” in its Spanish acronym) and is effectively financed
by companies in the generation industry, including our
subsidiaries Enel Generación Chile and, to a lesser
extent, EGP Chile through accounts receivable that are
generated by the differences between the contractual
rates and the stabilized rates, which are expected to
enable the generation companies to recover the lost
revenues by December 31, 2027. We have suffered
and expect to continue to suffer a financial loss due to
this revenue deferral because generation companies
are being asked to finance such deferral until billing
differences begin to accrue financial remuneration in
2026.
In December 2019, the Ministry of Energy’s Law No. 21,194
(the “Distribution Tariff Law”) lowered the profitability
of distribution companies and modified the electricity
distribution tariff process. Among other things, the new
law reduced the rate for calculating annual investment
costs from 10% to a percentage calculated by the CNE
every four years (which will be a yearly after-tax rate of
between 6% and 8%) and established that the after-
tax rate of return for each distribution company must
be between three percentage points below and two
percentage points above the rate calculated by the CNE.
In August 2020, in the context of the Covid-19
pandemic, the Ministry of Energy’s Law No. 21,249 (“Ley
de Servicios Básicos” or the Basic Services Law) was
enacted to prohibit electricity distribution companies
from cutting services due to late payment for 90 days
following the publication of the law for residential
customers, small businesses, hospitals, and firefighters,
among others. Unpaid amounts accrued from March 18,
2020, to November 30, 2020, may be paid in up to 12
equal and consecutive monthly installments, beginning
in December 2020. Subsequently, the prohibition on
cutting services for non-payment under the Basic
Services Law was extended until December 31, 2021,
and the maximum number of monthly installments
was increased to 48. The monthly installments may
not include fines, interest, or associated expenses.
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In December 2021, the Chilean association of power
distribution
companies
(“Empresas
Eléctricas”)
announced that its members (CGE, Chilquinta, Enel
Distribución Chile, and Grupo Saesa) would extend until
January 31, 2022, the prohibition on cutting service to
customers for non-payment of electricity bills, despite
the law expiring on December 31, 2021.
On February 11, 2022, Law No. 21,423 established
a payment schedule for all debts arising from the
application of the Basic Services Law, through which
customers may pay their debt in 48 equal monthly
installments, with a maximum limit equivalent to 15%
of their average billing. Distribution companies will
absorb 50% of all debt not repaid within the 48 monthly
installments, and the remaining 50% will be applied to
the distribution tariffs in the tariff process that will be
carried out after the expiration of the 48 installment
period.
In July 2022, the Chilean Congress passed Law No.
21,472, which complements Law No. 21,185 by creating
a new stabilization fund program and establishing a
new transitory mechanism for stabilizing customers’
electricity prices under the regulated price system.
The purpose of the mechanism is to limit the increase
in electricity bills for regulated customers during 2022
and to allow such increases to occur gradually over
the following 10 years. Other Chilean electricity sector
regulations may also affect our generation companies’
ability to collect revenues sufficient to cover their
operating costs and adversely affect our future
profitability.
As a result of the application of the laws mentioned
above as of and for the year ended December 31, 2023,
our current and non-current accounts receivables
increased, revenues from energy sales decreased, costs
from energy purchases decreased, financial income
increased, and financial costs increased.
Our operating subsidiaries are also subject to
environmental regulations that, among other things,
require us to perform environmental impact studies on
future projects and obtain construction and operating
permits from local and national regulators. Governmental
authorities may withhold or delay the approval of these
permits until the completion of environmental impact
studies,
sometimes
unexpectedly.
Environmental
regulations for existing and future generation capacity
have become stricter and require increased capital
investments. Any delay in meeting the required emission
standards may constitute a violation of environmental
regulations. Failure to certify the original implementation
and ongoing emission standard requirements of
monitoring systems may result in significant penalties
and sanctions or legal claims for damages. We expect
that more restrictive emission limits will be established
in the future. We are also subject to an annual “green
tax” based on our GHG emissions in the previous year.
Such taxes may increase in the future and discourage
thermal electricity generation.
Proposed changes in the regulatory framework are
often submitted to legislators and administrative
authorities. Some of these changes, if implemented,
could have a material adverse effect on our business,
results of operations, and financial condition.
Our business faces risks from the Chilean government’s
decarbonization efforts.
In June 2019, the Chilean government announced its plan
to phase out coal entirely from its energy mix by 2040
and achieve carbon neutrality by 2050. Our subsidiary
Enel Generación Chile signed an agreement with the
Chilean Ministry of Energy defining the process for the
closures of our coal-fired power plants: Tarapacá (158
MW), Bocamina I (128 MW), and Bocamina II (350 MW).
We closed the Tarapacá plant in December 2019, the
Bocamina I plant in December 2020, and the Bocamina
II plant in September 2022, well ahead of the Bocamina
II plant’s scheduled deadline of December 31, 2040. In
doing so, we became the first generation company in
the Chilean electricity sector to completely remove coal
from its generation operations. However, our efforts
to decarbonize our energy matrix by closing coal-fired
power plants might be insufficient if our renewable
energy projects suffer delays and do not enter into
operation on schedule.
Even though the Chilean government’s plan to
achieve
decarbonization
may
overlap
with
our
sustainability strategy, the governmental targets’ actual
implementation may exert considerable pressure on us
and our ability to satisfy our contractual obligations with
other cleaner energy sources. In turn, this may increase
our expenses, decrease our profitability, and limit our
ability to satisfy fully customers’ electricity demands.
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Our business and profitability could be unfavorably
affected if water rights are denied, if water concessions
are granted with a limited duration, or if the cost of
water rights is increased.
The Chilean Water Authority (“Dirección General de
Aguas”) grants us water rights for water supply from
rivers and lakes near our generation facilities. Currently,
these water rights:
• are for an unlimited duration;
• are absolute and unconditional property rights; and
• are not subject to further challenge. Chilean generation
companies must pay an annual license fee for unused
water rights. New hydroelectric facilities are required to
obtain water rights, and the conditions of such water
rights may affect the design, timing, or profitability of a
project.
Any revocation of or limitations on our current water
rights (including as a result of changes to the Chilean
constitution), additional water rights, the duration of
our water concessions, or an increase in the cost of
water rights could have a material adverse effect on our
hydroelectric development projects and profitability.
We are subject to potential business and financial
risks resulting from climate change legislation and
regulations to limit GHG emissions.
Climate change legislation and regulations restricting or
regulating GHG emissions could increase our operating
costs and have a material adverse effect on our
business, results of operations, and financial condition.
The adoption and implementation of any international
treaty, legislation, or regulation imposing new or
additional reporting obligations or limiting emissions
of GHGs from our operations could require us to incur
additional costs to comply with such requirements and
possibly require the reduction or limitation of GHG
emissions associated with our operations. These higher
compliance standards, such as net zero emissions,
may require higher levels of investment in new, more
efficient technologies. Failure to monitor or delay the
adoption of new technologies may jeopardize our ability
to adapt to climate change and may involve additional
costs to operate and maintain our equipment and
facilities, install emission controls, or pay taxes and fees
relating to GHG emissions, which could have a material
adverse effect on our business, results of operations,
and financial condition.
Material Risks Related to Chile and Other Global Risks
Fluctuations in the Chilean economy, economic
interventionist measures by governmental authorities,
political and financial events, or other crises in
Chile and other countries may affect our results of
operations, financial condition, liquidity, and the value
of our securities.
All our operations are in Chile. Accordingly, our
consolidated revenues may be affected by the
performance of the Chilean economy. We are
exposed to political volatility and social unrest in
Chile due to the challenges arising from changes in
economic conditions, regulatory policies, and laws
governing foreign trade, manufacturing, development,
investments, and taxation. For example, in August 2023,
the government of President Gabriel Boric announced
plans to present a “Fiscal Pact” in separate bills, one
focusing on combating tax evasion, and the other on tax
reforms intended to increase revenue. The reforms are
in the initial stages of consideration and are expected
to be discussed in the Chilean Congress during 2024.
Chile is also vulnerable to crises and uncertainties,
as well as external shocks in other countries, such as
financial and political events, that could cause significant
economic difficulties and adversely affect economic
growth in Chile. If Chile experiences lower-than-
expected economic growth or a recession, it is likely
that consumer demand for electricity will decrease and
that some of our customers may have difficulties paying
their electric bills, possibly increasing our uncollectible
accounts, which could adversely affect our results of
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operations and financial condition.
Future adverse developments in Chile, including political
events, financial or other crises, and changes to policies
regarding foreign exchange controls, regulations, and
taxation may impair our ability to execute our business
plan and could adversely affect our growth, results of
operations, and financial condition. Inflation, changes in
interest rates, devaluation, social instability, and other
political, economic, or diplomatic developments could
also reduce our profitability. Economic and market
conditions in Chilean financial and capital markets
may be affected by international events, which could
unfavorably affect the value of our securities and our
ability to access the capital markets.
Changes to the Chilean Constitution could impact
a wide range of rights, including water rights and
property rights generally, and could affect our
business, results of operations, and financial condition.
Following widespread protests and social unrest
throughout Chile in October 2019, the Chilean
government introduced several social reforms and
implemented a constitutional convention process
to draft a new Chilean Constitution to replace the
current 1980 Constitution. A September 2022 national
plebiscite rejected the proposed new constitution,
leaving the current 1980 Constitution in place. However,
widespread political support for a second constitutional
process
prevailed,
and
a
second
constitutional
convention process to draft a new Chilean Constitution
was implemented.
Each new article of the draft Chilean Constitution
was approved by two-thirds of the Constitutional
Council. The final draft of the new Chilean Constitution
approved by the Constitutional Council was submitted
for approval to a national referendum with mandatory
participation with an approval threshold of 50% plus one
vote. This referendum took place on December 17, 2023,
and rejected the proposed Chilean Constitution by a
vote of 56%. As a result, the existing 1980 Constitution,
which has been in place since 1980, remains in effect.
Following the outcome of the referendum, President
Boric announced that there would be no further
attempts to draft a new Chilean Constitution during
the remainder of his term in office, which ends in March
2026.
We cannot give any assurance that the social and
economic concerns leading to the political and civil
unrest that arose in 2019 and caused the constitutional
reform process to be initiated will be resolved or that
mass protests or civil unrest will not resume. The long-
term effects of this social unrest are hard to predict but
could include slower economic growth, which could
adversely affect our business, results of operations, and
financial condition.
We may be subject to the effects of armed conflicts in
other countries.
Global markets have been and may continue to be
subjected to periods of economic uncertainty, volatility,
and disruption due to armed conflicts around the world,
including the current conflicts in Ukraine and Gaza. In
addition to economic sanctions, such as those imposed
on Russia and certain Russian citizens and enterprises,
armed conflicts could have a negative effect on the
global economy and are highly uncertain and difficult
to predict. Although we do not have direct business
transactions with suppliers, clients, or lenders from
Russia or Ukraine, our business, results of operations,
and financial condition may be impacted by (i) limited
access to financial markets; (ii) possible interruptions
in the global supply chain; (iii) volatility in commodity
prices; and (iv) an increase in inflationary pressures in
Chile, which could increase the rates charged to our
customers.
We are subject to the adverse effects of worldwide
pandemics.
In response to the Covid-19 pandemic, in 2020 the
Chilean government declared a state of emergency
(“estado de excepción constitucional de catástrofe”),
instituted nighttime curfews, mandatory quarantines
in affected areas, control of entrance, exit, and
traffic within specified zones, the prohibition of mass
gatherings, and the closing of public schools, among
other measures. The private sector voluntarily took
further actions, such as adopting telecommuting
wherever possible and closing commercial offices.
All these measures, as well as other government
restrictions,
temporarily
disrupted
our
business
and operations, decreased the electricity demand,
destabilized financial markets, negatively affected
the global supply chain, and compromised our ability
to generate income. These disruptions significantly
impacted our 2020 performance. In 2021 and 2022, the
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Chilean government lifted many of these restrictions,
which increased the demand for electricity and
positively impacted our net income in 2021, 2022, and
2023.
The emergence of new Covid-19 variants and increases
in infection rates may result in a reimposition of
governmental and private sector measures in response.
If there is a resurgence of the Covid-19 pandemic or
similar outbreaks in the future, our business, results of
operations, and financial condition may be materially
adversely affected.
Foreign exchange risks may unfavorably affect our
results and the U.S. dollar value of dividends payable to
ADS holders.
Our functional currency is the Chilean peso, which
has been subject to devaluations and appreciations
against the U.S. dollar and may be subject to significant
fluctuations in the future. In 2023, the U.S. dollar
Observed Exchange Rate began the year at Ch$852.14
per US$1.00, ranged from Ch$781.49 per US$1.00 on
February 2, 2023, to Ch$945.61 per US$1.00 on October
17, 2023, and ended the year at Ch$877.12 per US$1.00.
We pay our dividends in Chilean pesos, and a substantial
portion
of
our
consolidated
indebtedness
has
historically been in U.S. dollars. Although a substantial
amount of our operating cash flows is linked to the U.S.
dollar, we are exposed to fluctuations in the Chilean peso
against the U.S. dollar because of time lags and other
limitations to pegging our tariff rates to the U.S. dollar.
This exposure can substantially decrease the value of
the cash we generate in U.S. dollars due to the peso’s
devaluation. Future volatility in the currency exchange
rate in which we receive revenues or incur expenditures
may adversely affect our business, results of operations,
and financial condition.
Material Risks Related to Ownership of Our Shares and ADSs
Our controlling shareholder may influence us and may
have a strategic view for our development that differs
from that of our minority shareholders.
Enel SpA, our controlling shareholder, owns a beneficial
interest of 64.9% of our share capital as of the date
of this Report. Under Law No. 18,046 (the “Chilean
Corporations Law”), Enel has the power to determine
the outcome of all material matters that require a
simple majority of shareholders’ votes, such as the
election of most of the seats on our board, and, subject
to contractual and legal restrictions, the adoption
of our dividend policy. Enel also exercises significant
influence over our business strategy and operations.
However, in some cases, its interests may differ from
those of our minority shareholders. Certain conflicts of
interest affecting Enel in these matters may be resolved
in a manner that is different from the interests of our
company or our minority shareholders.
The relative illiquidity and volatility of the Chilean
securities markets could unfavorably affect the price
of our common stock and ADSs.
Chilean securities markets are substantially smaller and
have less liquidity than major securities markets in the
United States and other developed countries. The low
liquidity of the Chilean markets may impair shareholders’
ability to sell shares, or holders of ADSs to sell shares of
our common stock withdrawn from the ADS program,
on the Chilean Stock Exchanges in the amount and at
the desired price and time.
Lawsuits against us brought outside of Chile, or
complaints against us based on foreign legal concepts,
may be unsuccessful.
All our operations are located outside of the United
States. All our directors and officers reside outside of
the United States, and substantially all their assets are
located outside the United States. If investors were
to bring a lawsuit against our directors and officers
in the United States, it may be difficult for them to
effect service of legal process within the United States
upon these persons. It may also be difficult to enforce
judgments obtained in the U.S. courts based on civil
liability provisions of U.S. federal securities laws against
them in U.S. or Chilean courts. There is also doubt about
whether an action could be brought successfully in Chile
for liability based solely on the civil liability provisions of
U.S. federal securities laws.
Enel Chile has in the past identified a material
weakness in internal controls over financial reporting
326
Integrated Annual Report Enel Chile 2023
and may experience additional material weaknesses
or fail to maintain an effective system of internal
control over financial reporting, which could result in
material misstatements in the financial statements."
consolidated or cause non-compliance with periodic
reporting obligations.
If it experiences additional material weaknesses or fails
to maintain an effective system of internal control over
financial reporting, it could (i) result in an error
material in the financial information or financial
statements that could be impossible to prevent or
detect, (ii) cause a breach of reporting obligations
under applicable securities laws, or (iii) cause a loss of
confidence of investors in the financial information or
in the financial statements, and any of these situations
could significantly and adversely affect the activity,
financial situation, cash flows, operating results and
prices of securities."
General Risk Factors
Our electricity business is subject to risks arising from
extreme weather events related to climate change,
natural disasters, catastrophic accidents, and acts of
vandalism or terrorism, which could unfavorably affect
our operations, earnings, and cash flow.
Our primary facilities include power plants and
distribution assets that are exposed to damage from
the increased severity and frequency of extreme
weather events related to climate change, catastrophic
accidents, natural disasters, and human causes, such as
vandalism, protests, riots, and terrorism. A catastrophic
event could cause prolonged unavailability of our assets,
disruptions in our business, significant decreases in
revenues due to lower demand, or significant additional
costs not covered by our business interruption
insurance and could require us to incur unplanned
capital expenditures. There may be lags between a
significant accident or catastrophic event and the final
reimbursement from our insurance policies, which
typically carry a deductible and are subject to per-event
policy maximum amounts.
Any natural or human catastrophic disruption to our
electricity assets in Chile could significantly affect our
business, results of operations, and financial condition.
We are subject to financing risks, such as those
associated with funding our new projects and capital
expenditures or refinancing existing obligations.
As of December 31, 2023, net consolidated financial
debt amounted to Ch$3.3 trillion, mainly accounts
payable to related parties and financial liabilities.
A significant portion of our financial indebtedness
is subject to (i) financial covenants, (ii) affirmative
and negative covenants, (iii) events of default, (iv)
mandatory prepayments for contractual breaches, (v)
change of control clauses for material mergers and
divestments, (vi) bankruptcy and insolvency proceeding
covenants, and (vii) cross-default provisions, which
have varying definitions, criteria, materiality thresholds,
and applicability concerning subsidiaries that could
result in a cross-default event. Our debt may also
become immediately due and payable in cases involving
bankruptcy or insolvency proceedings of a significant
or material subsidiary.
The market conditions prevailing at any time may
prevent us from accessing capital markets or satisfying
our financial needs to fund new projects. We may also
be unable to raise the necessary funds required to
finish our projects under development or construction.
Likewise, we may be unable to refinance our debt or
obtain such refinancing in terms acceptable to us. In
the absence of such refinancing, we could be forced to
liquidate assets at unfavorable prices to make payments
due on our debt. Furthermore, we may be unable to sell
our assets at opportune moments or sufficiently high
prices to obtain proceeds that would enable us to make
such payments.
Our inability to finance new projects or capital
expenditures, refinance our existing debt, or comply
with our covenants could negatively affect our business,
results of operations, and financial condition.
Regulatory authorities may impose fines, penalties,
or sanctions on our subsidiaries due to operational
failures or any breach of regulations.
Our electricity businesses may be subject to regulatory
sanctions for any breach of current regulations,
327
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
including failures to supply energy. Local regulatory
entities supervise our generation subsidiaries. We may
be subject to fines, penalties, or sanctions when the
regulator determines that the company is responsible
for the operational failures that affect the system’s
regular energy supply, including coordination issues.
Regulations establish a compensation fee to end
customers when energy is interrupted more than the
standard allowed time due to events or failures affecting
transmission facilities.
We are involved in litigation proceedings.
We are involved in various litigation proceedings,
including lawsuits and arbitrations, that could result in
unfavorable decisions or financial penalties against us.
Given the difficulty of predicting the outcome of legal
matters, we have no certainty about the most likely
outcome of these proceedings or what the eventual
fines or penalties related to each litigation may be.
Although we intend to defend our positions vigorously,
our defense of these litigation proceedings may not
be successful, and responding to such lawsuits and
arbitrations diverts resources and our management’s
attention from day-to-day operations.
Our financial condition or results of operations could be
unfavorably affected if we are unsuccessful in defending
these litigations or other lawsuits and legal proceedings
against us.
328
Integrated Annual Report Enel Chile 2023
Powerplant
Company
Use
Technol.
Net Cap.
(MW)
Property Type
(land)
Location
Atacama
Enel Generación
Chile
Power
plant
CCGT
716
Own
Antofagasta, Antofagasta Region
San Isidro
Enel Generación
Chile
Power
plant
CCGT
372
Own
Quillota, Valparaiso Region
San Isidro 2
Enel Generación
Chile
Power
plant
CCGT
380
Own
Quillota, Valparaiso Region
Quintero
Enel Generación
Chile
Power
plant
O&G
249
Own
Quintero, Valparaiso Region
Taltal
Enel Generación
Chile
Power
plant
O&G
242
Own
Antofagasta, Antofagasta Region
Tarapacá TG
Enel Generación
Chile
Power
plant
O&G
20
Own
Iquique, Tarapacá Region
Canela I
Enel Generación
Chile
Power
plant
Wind
18
Own
Canela District, Choapa Province,
Coquimbo Region
Canela II
Enel Generación
Chile
Power
plant
Wind
64
Own
Canela District, Choapa Province,
Coquimbo Region
La Cabaña
Enel Green Power
Chile
Power
plant
Wind
106
Rental
Districts of Angol, Renaico, and Collipulli
in the Province of Malleco, Region of La
Araucanía and the District of Mulchén in
the Province of Biobío, Region of Biobío
Los Buenos Aires
Enel Green Power
Chile
Power
plant
Wind
24
Rental
Los Angeles, Los Angeles District, Bio
Bio Region
Renaico
Enel Green Power
Chile
Power
plant
Wind
88
Servitude
Renaico District, La Araucanía Region
Renaico 2
Enel Green Power
Chile
Power
plant
Wind
144
Rental
Renaico District, Araucanía Region
Sierra Gorda Este
Enel Green Power
Chile
Power
Wind
112
Concession
Sierra Gorda, Sierra Gorda District,
Antofagasta Region
PROPERTIES
AND FACILITIES
Enel Chile, by way of its subsidiary Enel Generación Chile,
entered into a sales agreement with Territoria Santa Rosa
SpA on 1 February 2023. The agreement applied to the
Santa Rosa Complex, which is under Enel's ownership. This
complex, situated at Santa Rosa 76 Santiago, houses the
Group's corporate headquarters, where the company's
main administrative operations are conducted.
The lease agreement between the Group and Territoria
Santa Rosa SpA stipulates that the Group will maintain
consistent use of the Santa Rosa Complex until the initial six
months of 2024. The Company anticipates commencing
operations from this date onwards, utilizing tower 2 of the
MUT complex (Mercado Urbano Tobalaba), which is owned
by Territoria Apoquindo S.A., with whom Enel Chile entered
into a 7-year lease agreement on 1 February 2023. The
lease agreement came into effect on 1 May 2023.
The principal assets and operational facilities of the Group
are detailed below, segment by segment of operation.
Generation Segment
329
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
Powerplant
Company
Use
Technol.
Net Cap.
(MW)
Property Type
(land)
Location
Taltal
Enel Green Power
Chile
Power
plant
Wind
106
Concession
Antofagasta , Taltal District, Antofagasta
Region
Talinay Oriente
Parque Eólico
Talinay Oriente
Power
plant
Wind
90
Rental
Ovalle District, Coquimbo Region
Talinay Poniente
Enel Green Power
Chile
Power
plant
Wind
61
Rental
Ovalle District, Coquimbo Region
Valle de los vientos
Enel Green Power
Chile
Power
plant
Wind
90
Concession
Calama , Antofagasta Region
Cerro Pabellón (1,
2 and 3)
Geotérmica del
Norte
Power
plant
Geothermal
83
Servitude
Ollague , Ollague District, Antofagasta
Region
Abanico
Enel Generación
Chile
Power
plant
Hydraulic
93
Own
Los Angeles, Biobío Region
Antuco
Enel Generación
Chile
Power
plant
Hydraulic
320
Own
Los Angeles, Biobío Region
Cipreses
Enel Generación
Chile
Power
plant
Hydraulic
106
Own
Talca, Maule Region
Curillinque
Pehuenche
Power
plant
Hydraulic
89
Own
Talca, Maule Region
El Toro
Enel Generación
Chile
Power
plant
Hydraulic
449
Own
Los Angeles, Biobío Region
La Isla
Enel Generación
Chile
Power
plant
Hydraulic
70
Own
Talca, Maule Region
Loma Alta
Pehuenche
Power
plant
Hydraulic
40
Own
Talca, Maule Region
Los Molles
Enel Generación
Chile
Power
plant
Hydraulic
18
Own
Montepatria, Coquimbo Region
Ojos de Agua
Enel Generación
Chile
Power
plant
Hydraulic
9
Own
Valle del río cipreses, Maule Region
Palmucho
Enel Generación
Chile
Power
plant
Hydraulic
34
Own
Los Angeles, Biobío Region
Pangue
Enel Generación
Chile
Power
plant
Hydraulic
466
Own
Los Angeles, Biobío Region
Pehuenche
Pehuenche
Power
plant
Hydraulic
570
Own
Talca, Maule Region
Pilmaiquén
Enel Green Power
Chile
Power
plant
Hydraulic
41
Own
Rio Bueno District, Los Ríos Region
Pullinque
Enel Green Power
Chile
Power
plant
Hydraulic
51
Own
Panguipulli District, Valdivia Province,
Los Ríos Region
Ralco
Enel Generación
Chile
Power
plant
Hydraulic
689
Own
Los Angeles, Biobío Region
Rapel
Enel Generación
Chile
Power
plant
Hydraulic
375
Own
Litueche, O'Higgins Region
Sauzal
Enel Generación
Chile
Power
plant
Hydraulic
80
Own
Machali, O'Higgins Region
Sauzalito
Enel Generación
Chile
Power
plant
Hydraulic
11
Own
Machali, O'Higgins Region
Azabache
Enel Green Power
Chile
Power
plant
Solar
61
Concession
Calama, Antofagasta Region
Campos del Sol
Enel Green Power
Chile
Power
plant
Solar
375
Concession
Copiapó, Atacama Region
Guanchoi (ex
Campos del Sol II)
Enel Green Power
Chile
Power
plant
Solar
398
Concession
Diego de Almagro District, Atacama
Region
Chañares
Enel Green Power
Chile
Power
plant
Solar
40
Concession
Diego de Almagro, Atacama Region
El Manzano
Enel Green Power
Chile
Power
plant
Solar
99
Rental
Til Til District, Chacabuco Province,
Metropolitan Region
Finis Terrae 3
Enel Green Power
Chile
Power
plant
Solar
18
Concession
María Elena, Comuna María Elena,
Antofagasta Region
Lalackama
Enel Green Power
Chile
Power
plant
Solar
60
Rental
Antofagasta, Antofagasta Region
330
Integrated Annual Report Enel Chile 2023
Powerplant
Company
Use
Technol.
Net Cap.
(MW)
Property Type
(land)
Location
Lalackama II
Enel Green Power
Chile
Power
plant
Solar
18
Rental
Antofagasta, Antofagasta Region
Las Salinas
Enel Green Power
Chile
Power
plant
Solar
205
Concession
Sierra Gorda District, Antofagasta
Province, Antofagasta Region.
Parque Solar Finis
Terrae
Enel Green Power
Chile
Power
plant
Solar
160
Concession
María Elena, Comuna María Elena,
Antofagasta Region
Parque Solar Finis
Terrae Extensión
Enel Green Power
Chile
Power
plant
Solar
126
Concession
María Elena, Comuna María Elena,
Antofagasta Region
PMGD Caracoles
Enel Green Power
Chile
Power
plant
Solar
3
Rental
Yerbas Buenas, Maule Region
PMGD Cabimas (
Ex Curimachi)
Enel Green Power
Chile
Power
plant
Solar
11
Rental
San Clemente District, Talca Province,
Maule Region
PMGD Dadinco
Enel Green Power
Chile
Power
plant
Solar
3
Rental
San Nicolás, Ñuble Region
PMGD Don Rodrigo Enel Green Power
Chile
Power
plant
Solar
5
Rental
Talca District, Maule Region
PMGD El Sharon
Enel Green Power
Chile
Power
plant
Solar
3
Rental
Las Cabras District, O'Higgins Region
PMGD La Colonia
Enel Green Power
Chile
Power
plant
Solar
11
Rental
Buin, Metropolitan Region
PMGD Piduco
Enel Green Power
Chile
Power
plant
Solar
3
Rental
Talca, Maule Region
PMGD Rinconada
Alcones
Enel Green Power
Chile
Power
plant
Solar
10
Rental
Rinconada de Alcones, O'Higgins
Region
PMGD San Camilo
Enel Green Power
Chile
Power
plant
Solar
3
Rental
Molina, Maule Region
PMGD Valera
Enel Green Power
Chile
Power
plant
Solar
3
Rental
Coinco District, O'Higgins Region
PMGD Bandurrias
Enel Green Power
Chile
Power
plant
Solar
3
Rental
Marchigue District, Cardenal Caro
Province, Libertador General Bernardo
O'Higgins Region
PMGD Graneros
Enel Green Power
Chile
Power
plant
Solar
3
Rental
Rancagua District, Cachapoal Province,
Libertador General Bernardo O'Higgins
Region
PMGD Maintencillo
Enel Green Power
Chile
Power
plant
Solar
3
Rental
San Rafael District, Talca Province,
Maule Region
PMGD Patagua
Enel Green Power
Chile
Power
plant
Solar
10
Rental
Melipilla District, Melipilla Province,
Metropolitan Region
PMGD Doña
Rubena
Enel Green Power
Chile
Power
plant
Solar
3
Rental
Til Til District, Chacabuco Province,
Metropolitan Region
PMGD Mora
Enel Green Power
Chile
Power
plant
Solar
3
Rental
Lo Chacón District, Melipilla Province,
Metropolitan Region
PMGD Hijuelas 4
Enel Green Power
Chile
Power
plant
Solar
3
Rental
Maule District, Talca Province, Maule
Region
Sol de Lila
Enel Green Power
Chile
Power
plant
Solar
161
Concession
Antofagasta, Antofagasta Region
Solar la Silla
Enel Green Power
Chile
Power
plant
Solar
2
Loan
La Higuera, Coquimbo Region
Valle del Sol
Enel Green Power
Chile
Power
plant
Solar
163
Concession
María Elena, Antofagasta Region
La Cabaña BESS
Enel Generación
Chile
Storage
Retrofit
BESS
34
Rental
Districts of Angol, Renaico, and Collipulli
in the Province of Malleco, La Araucanía
331
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
Segmento Distribución
Name
Company
Use
Level
Type
Location
Colina
Enel Distribución Chile
Substation
MV/MV
Own
Santiago, Metropolitan Region
San Enrique
Enel Distribución Chile
Substation
MV/MV
Own
Las Condes, Metropolitan Region
Airport
Enel Distribución Chile
Substation
MV/MV
Own
Pudahuel, Metropolitan Region
Enel Distribución Chile has eight commercial offices, all
leased and located in the Metropolitan Region.
The electricity distribution business in which Enel
Distribución Chile operates is governed by a fixed-term
concession contract granted by the Ministry of Economy
that strictly indicates the area in which it will provide
energy supply services. This concession area is 2,105 km²,
which covers 33 Metropolitan Region municipalities that
include the areas of its subsidiary Enel Colina S.A.
Insurance
The Group and its consolidated entities have insurance
contracts that include policies for all risks, earthquakes,
and machinery breakdowns with a limit of MM€1,000
(Ch$ 945,834 million), including business interruption
damages. The Group also has Civil Liability insurance to
deal with third-party claims for a limit of up to MM€400
(Ch$378,334 million) when the claims are the result of the
failure of any of the dams owned by the Company or its
Subsidiaries and Environmental Civil Liability insurance,
which covers lawsuits and damages to the environment
for MM€20 (Ch$18,917 million).
332
Integrated Annual Report Enel Chile 2023
TRADEMARKS,
PATENTS AND
CONCESSIONS
Trademarks
The Company has registered the "Enersis Chile” trademark
for
services,
products,
commercial
and
industrial
establishments.
Enel SpA has authorized the unrestricted use of the
"Enel" trademark by Enel Chile S.A., which may include it
in its corporate name, logo, or other forms of use of the
aforementioned name.
The trademark "Enel Chile" is duly registered.
Concessions
Enel Chile and its subsidiaries, in the normal course
of their operations, have concession agreements with
government agencies, which allow the development of
their electricity generation and distribution businesses.
For more details about the concessions, consult the
Properties and facilities section of this Integrated Annual
Report.
333
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
Company
Type
Business
Direct
Indirect
Total
Parent
Investment/
Individual Assets
Ratio
Enel Distribución Chile S.A.
Subsidiary
Distribution
99.09%
-
99.09%
9.66%
Enel Colina S.A.
Subsidiary
Distribution
-
100.00%
100.00%
0.21%
Enel Generación Chile S.A.
Subsidiary
Generation
93.55%
-
93.55%
31.81%
Empresa Eléctrica Pehuenche S.A.
Subsidiary
Generation
-
92.65%
92.65%
2.10%
Sociedad Agrícola de Cameros Ltda.
Subsidiary
Other
57.50%
-
57.50%
0.04%
Enel X Chile Spa
Subsidiary
Other
100.00%
-
100.00%
0.02%
Enel Green Power Chile S.A.(1)
Subsidiary
Generation
99.99%
-
99.99%
11.73%
Geotérmica del Norte S.A.
Subsidiary
Generation
-
84.59%
84.59%
5.06%
Parque Talinay Oriente S.A.
Subsidiary
Generation
-
60.91%
60.91%
1.61%
Enel Mobility Chile SpA(2)
Subsidiary
Other
100.00%
-
100.00%
0.01%
GNL Chile S.A.
Associate
Generation
-
33.33%
33.33%
0.28%
Energía Marina SpA
Associate
Other
-
25.00%
25.00%
0.00%
Enel X Way Chile S.p.A.
Associate
Other
49.00%
-
49.00%
0.08%
HIF H2 SpA
Joint Venture
Other
-
50.00%
50.00%
0.00%
(1) On January 1, 2023, the division of Enel Green Power Chile S.A. was completed, resulting in the creation of a new company called Arcadia Generación
Solar S.A., receiving the assignation of the assets and liabilities associated with the Carrera Pinto, Pampa Solar Norte, Diego de Almagro, and Domeyko
solar plants and incorporating all the shareholders of Enel Green Power Chile S.A. for the number of shares equal to the number they had in the divided
company. On October 24, 2023, Enel Chile sold all of its shares issued by Arcadia Generación Solar S.A., corresponding to 99.99% of the capital, to
Sonnedix Chile Arcadia SpA and Sonnedix Chile Arcadia Generación SpA.
(2) On April 24, 2023, the Company Enel Mobility Chile SpA was incorporated, a process arising from the division of the subsidiary company Enel X
Chile SpA., receiving the assignation of the assets related to the infrastructure of electric chargers for public use.
SUBSIDIARIES,
ASSOCIATES AND
JOINT VENTURES
Direct and Indirect Participation of Enel Chile
334
Integrated Annual Report Enel Chile 2023
335
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
Enel Chile's corporate network
ENEL
CHILE S.A.
SOC. AGRICOLA DE
CAMEROS LTDA.
ENEL
COLINA S.A.
ENEL DISTRIBUCIÓN
CHILE S.A.
PARQUE EÓLICO
TALINAY ORIENTE S.A.
GEOTÉRMICA
DEL NORTE S.A.
ENERGÍA
MARINA SpA
HIF H2 SpA
ENEL GREEN POWER
CHILE S.A.
99.99109%
57.499962%
99.090782%
0.0002%
99.9998%
60.914232%
84.589809%
25%
50%
336
Integrated Annual Report Enel Chile 2023
ENEL GENERACIÓN
CHILE S.A.
ENEL X WAY
CHILE SpA
PEHUENCHE S.A.
GNL CHILE
S.A.
ENEL
ARGENTINA S.A.
SUCURSAL
GASODUCTO ATACAMA
ARGENTINA S.A.
ENEL X CHILE SpA
ENEL MOBILITY SpA
93.548092%
49%
100%
100%
100%
92.647902%
33.333333%
0.079318%
337
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
Identification of subsidiaries and associates
AGRÍCOLA DE CAMEROS LTDA.
ENEL DISTRIBUCIÓN CHILE S.A.
ENEL GENERACIÓN CHILE S.A.
Company name
Sociedad Agrícola de Cameros Limitada
Company name
Enel Distribución Chile S.A.
Company name
Enel Generación Chile S.A.
Type of company
Limited Liability Company
Type of company
Open Stock Company
Type of company
Open Stock Company
Tax ID number
77.047.280-6
Tax ID number
96.800.570-7
Tax ID number
91.081.000-6
Address
Camino Polpaico a to Til Til, s/n
Til-Til, Chile
Address
Santa Rosa 76, 8th floor.
Santiago, Chile
Address
Santa Rosa 76
Santiago, Chile
Telephone
(56 2) 2378 4700
Telephone
(56 2) 2675 2000
Telephone
(56 2) 2630 9000
Subscribed and paid-in capital
M$5,738,046
Subscribed and paid-in capital
M$177,568,664
Subscribed and paid-in capital
M$552,777,321
Corporate Purpose
The purpose of the Company is the exploitation
of agricultural land.
Corporate Purpose
The provision of public services to distribute
electricity within the national territory, together
with activities essential for the provision of
the public distribution service and those that
contribute to meeting this purpose, following
the corresponding sectoral regulations.
Corporate Purpose
The Company's primary purpose will be to
exploit the production, transport, distribution,
and supply of electrical energy. For this
purpose, it may obtain, acquire, and use the
respective concessions and concessions.
It will also aim to provide consultancy services
in all areas and specialties of engineering and
business management; acquiring, designing,
constructing,
maintaining,
and
operating
civil or hydraulic infrastructure works directly
related to public works concessions; exploit
the resources that make up its assets; make
investments, develop projects and carry out
operations or activities in the field of energy
and in those activities or products directly
related to energy; To make investments, build
projects and carry out operations or activities
in industrial processes in which electrical
energy is essential, decisive and has intensive
use in these processes.
In addition, the Company may invest in real
estate and financial assets, securities or
stocks, rights in companies, and commercial
documents in general, as long as they are
related to the corporate purpose and may be
acquired, managed, and disposed of.
To comply with its corporate objective,
the Company may act directly or through
subsidiaries or related companies.
Activities carried out
Agricultural and real estate.
Activities carried out
Electrical power distribution.
Activities carried out
Electric power generation.
338
Integrated Annual Report Enel Chile 2023
AGRÍCOLA DE CAMEROS LTDA.
ENEL DISTRIBUCIÓN CHILE S.A.
ENEL GENERACIÓN CHILE S.A.
Board of Directors
Hugo Álvarez de Araya Sanhueza (1)
Ingrid Morales Ávila (2)
Manuel Larraín García (3)
María Cristina Auad Faccuse
Cristián Guadi Imbarack Dagach
Senior Executives
Chief Executive Officer
Hugo Álvarez de Araya Sanhueza
(1) Head of Real Estate Enel Chile S.A
(2) Gerente de Finanzas y Seguros Enel Chile
(3) Head of Mergers & Acquisitions Enel Chile
S.A.
Board of Directors
Edoardo Marcenaro
Chairman
Viviana Vitto
Marco Fadda
Hernán Felipe Errázuriz Correa
Claudia Bobadilla Ferrer
Senior Executives
Chief Executive Officer
Victor Tavera Olivos (1)
Planning & Control Manager
Francisco Evans Miranda (2)
Legal Consel
Horacio Aránguiz Pinto (3)
People & Organization Manager
William Espitia Otalora (4)
(1) Head of Infrastructure & Networks Chile
(2) Head of Ind. P&C I&N Chile
(3) Head of Legal Affairs I&N and Market Ch.
(4) Head of PBP Infrastructure & Networks Ch
Board of Directors
Giuseppe Conti
Chairman
María Teresa Vial Álamos
Monica De Martino
Julio Pellegrini Vial
Senior Executives
Chief Executive Officer
James Lee Stancampiano (1)
People & Organization Manager
Federica Caponera (2)
Administration, Finance and Control
Manager
Juan Francisco Da Fonseca Puentes (3)
Legal Counsel
Natalia Fernández Sepúlveda (4)
Trading & Commercialization Manager
Alfredo Armando Hott Riquelme (5)
(1) Head of EGP and TGX Argentina Chile.
(2) Head of PBP EGP and TGX&ECM Chile.
(3) Head of Industrial P&C EGPTGX Chile
(4) Head of Legal Affairs O&M Power Gen. Ch.
(5) Head of Energy & Commodity Mgmt Chile.
Business Relations
Contract for the provision of internal audit
and compliance control services under an
agreement with Enel Chile; cost: the amount
of UF allocated by Enel Chile personnel per
hour of work performed in relation to the hired
services.
Business Relations
Contract for the provision of services by Enel
Chile S.A.: global service and management of
administration, security, contractor control,
human resources administration, accounting,
tax, purchasing, sustainability, legal, corporate,
and legal services; price: monthly amount fixed
in UF.; centralized cash contract with Enel Chile
S.A.
Business Relations
(i) Contract for the provision of services by
Enel Chile: global service and management of
administration, security, contractor control,
human resources administration, accounting,
tax, purchasing, and sustainability, among
other
services;
price:
monthly
amount
reflected in UF. (ii) contract for the provision
of services by Enel Chile: legal, corporate, and
juridical services; price: monthly amount fixed
in UF. (iii) centralized cash agreement with Enel
Chile S.A.
339
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
ENEL COLINA S.A.
GNL CHILE S.A.
EMPRESA ELÉCTRICA PEHUENCHE S.A.
Company name
Enel Colina S.A.
Company name
GNL Chile S.A.
Company name
Empresa Eléctrica Pehuenche S.A.
Type of company
Closed Joint-Stock Company
Type of company
Closed Joint-Stock Company
Type of company
Open Stock Company is registered with the
CMF under number 293.
Tax ID number
96.783.910-8
Tax ID number
76.418.940-K
Tax ID number
96.504.980-0
Address
Chacabuco 31, Colina Santiago, Chile
Address
Cerro Colorado 5240, Torre I, of 1003,
Santiago.
Address
Santa Rosa 76, Santiago, Chile.
Telephone
(56 2) 2844 4280
Telephone
(56 2) 2892 8000
Telephone
(562) 2630 9000
Subscribed and paid-in capital
M$82,222
Subscribed and paid-in capital
MUS$3,026
Subscribed and paid-in capital
M$175,774,921
Corporate Purpose
The provision of public services for the
distribution of electricity within the national
territory, together with activities necessary for
the provision of the public distribution service
and those that contribute to meeting this
purpose, under the corresponding sectoral
regulations.
Corporate Purpose
The purpose of the Company shall be: a) to
hire the services of the liquefied natural gas
(LNG) regasification company GNL Quintero
S.A. and to use all the storage, processing,
regasification and delivery capa natural gas
and LNG of the regasification terminal owned
by the Company, including its expansions,
if any, and any other matter stipulated in the
contracts that the Company might sign for this
purpose to use the regasification terminal; (b)
procure and, where appropriate, import LNG
pursuant to LNG purchase agreements; c) the
supply, sale and delivery of natural gas and LNG
in accordance with the contracts for the supply
or sale of natural gas and LNG entered into by
the Company with its customers, in Chile or
abroad, or by virtue of other agreements to
that effect, and may also carry out exports;
(d) manage and coordinate the programing
and nomination of LNG cargoes, as well as
the delivery of natural gas and LNG between
the various customers, and (e) comply with all
its obligations and enforce all its rights under
the contracts identified above and coordinate
all activities under them; and, in general, to
perform any type of act or contract that may
be necessary, useful or convenient to comply
with the stated purpose.
Corporate Purpose
Generation, transportation, distribution and
supply of electrical energy, being able
for such purposes, acquire and enjoy the
respective concessions and grants. Without
This means a limitation of the generality
of the above, the purpose of the company will
include, with a preferential character until its
conclusion, the construction of a Hydroelectric
Power Plant in the sector called Pehuenche or
Paso Nevado, in the river basin.
Maule, Seventh Region. Likewise, the society
may grant real and personal guarantees to
favor of third parties.
Activities carried out
Electrical power distribution.
Activities carried out
Import and trading of natural gas.
Activities carried out
Electric Power Generation.
Board of Directors
Mauricio Daza Espinoza (1)
Chairman
Francisco Evans Miranda (2)
Pablo Jofré Utreras (3)
Senior Executives
Chief Executive Officer
Luis Fernando Roa Vargas
(1) Head of Customer Engagement Chile
(2) Head of Industrial P&C Enel Grids Chile
(3) Head of Regulatory I&N and Market
Board of Directors
Klaus Lührmann Poblete
Gustavo Soto Rojas (1)
José Pablo Gómez Meza
Senior Executives
Chief Executive Officer
Mario Camacho Acha
(1) Head of Commercialization & Trading Chile
Board of Directors
Juan Francisco Da Fonseca Puentes (1)
Chairman
Natalia Fernandez Sepulveda (2)
Luis Alberto Vergara Adamides (3)
Carlo Carvallo Artigas (4)
Marcela Alejandra Arredondo Cárdenas
Senior Executives
Chief Executive Officer
Carlos Iván Peña Garay (5)
(1) Head of Industrial P&C EGP TG Chile)
(2) Head of Legal Affairs O&M Power Gen. Ch.)
(3) Head of OMI Argentina & Chile
(4) Head of O&M Hydro Chile
(5) Resp. Exp. Proy. Especiales Optimización
Business Relations
(i) Contract for the provision of services by
Enel Chile: human resources management,
selection
and
training,
internal
audit,
accounting, tax, and treasury. Price: monthly
amount reflected in UF. (ii) centralized cash
agreement with Enel Chile S.A.
Business Relations
The Company does not have business relations
with Enel Chile.
Business Relations
Contract for the provision of services with
Enel Chile to supply Human Resources
Management,
Internal
Audit,
Accounting,
Tax, and Treasury services, and legal services,
among others, by Enel Chile S.A. (iii) Contract
for the provision of operation and maintenance
services between Enel Generación Chile and
Pehuenche.
340
Integrated Annual Report Enel Chile 2023
ENEL GREEN POWER CHILE S.A.
ENEL X CHILE SpA
GEOTÉRMICA DEL NORTE S.A.
Company name
Enel Green Power Chile S.A.
Company name
Enel X Chile SpA
Company name
Geotérmica del Norte S.A.
Type of company
Closed Joint-Stock Company
Type of company
Joint Stock Company
Type of company
Closed Joint-Stock Company
Tax ID number
76.412.562-2
Tax ID number
76.924.079-9
Tax ID number
96.971.330-6
Address
Avenida Santa Rosa N° 76, Santiago.
Address
Avenida Santa Rosa N° 76, Santiago.
Address
Avenida Santa Rosa N° 76, Santiago.
Telephone
(56 2) 26309000
Telephone
(56 2) 26309000
Telephone
(56 2) 26309000
Subscribed and paid-in capital
MUS$599,262
Subscribed and paid-in capital
M$3,341,832
Subscribed and paid-in capital
MUS$326,577
Corporate Purpose
(i)
Generation,
transmission,
distribution
and commercialization of electrical energy
from wind power, or from any other NCRE
source;
(ii)
development,
production
and
commercialization
of
hydrogen,
as
well
as
investment
in
projects
related
to
the
development,
production
and
commercialization of hydrogen; (iii) investment
in energy storage systems; (iv) investment in
all kinds of businesses, partnerships, movable
or immovable property; (v) "(v) the provision
to third parties, whether related or not, of
all kinds of advice and services in financial,
accounting,
administrative,
commercial,
legal, tax, management and administration
of businesses and commercial and industrial
establishments on behalf of third parties
and any other activity directly or indirectly
related to the previous ones agreed upon by
the shareholders. (vi) the purchase and sale,
marketing, import and export of all types of
products, machinery and raw materials; (vii) the
representation and distribution of machinery,
parts and pieces, raw materials and all types of
inputs related to the corporate purpose. (vii)
request, management and exploitation of all
types of administrative concessions necessary
for the development of the corporate purpose,
in particular concessions of onerous use on
public lands for the construction, operation
and maintenance of a wind, solar, geothermal
energy project, as well as the necessary and
complementary activities for the exploitation
of said concession. In it compliance with its
corporate purpose, the Company may act
directly or through subsidiary or affiliated
companies or Joint ventures."
Corporate Purpose
Develop,
implement,
and
commercialize
energy-related
products
and
services
in
Chile, incorporating innovation, cutting-edge
technology, and future trends. Provide, directly
or indirectly, with the activities mentioned
above and products to all types of natural or
legal persons, as well as provide all kinds of legal
entities directly or indirectly with management
services; financial, commercial, and technical
legal advice; auditing, and, in general, services
of any kind that appear to be necessary for the
better performance of its corporate purpose.
In addition to its primary purpose, the Company
may invest in: First. The acquisition, operation,
construction,
leasing,
administration,
intermediation, marketing, and disposal of
all kinds of personal property and real estate.
Second. All sorts of financial assets, including
shares, bonds and debentures, commercial
bills, and, generally, all kinds of securities and
company contributions.
Corporate Purpose
(i) The investigation and exploitation of
geothermal deposits located in the First,
Second and Third region of the country;
(ii) The commercialization, through any of
its forms, of all products, by-products, raw
materials, processed, semi-finished or not,
that derive directly or indirectly from the
activities indicated in the previous number; (iii)
The generation, transmission, distribution and
commercialization of electrical energy in any
of its
sources; and, (iv) The Company may also
carry out any other related activity, directly or
indirectly with the previous that allow better
use of the social organization."
Activities carried out
Power generation based on ERNC sources.
Activities carried out
Commercialization of electrical goods and
services.
Activities carried out
Generation, distribution, and
commercialization of electrical energy from
geothermal sources.
341
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
ENEL GREEN POWER CHILE S.A.
ENEL X CHILE SpA
GEOTÉRMICA DEL NORTE S.A.
Administration
Exercised by a sole director, as provided in the
Company's bylaws.
Board of Directors
Fernando Meza Marquez (1)
Claudia Navarrete Campos (2)
Ali Shakhtur Said (3)
Senior Executives
Chief Executive Officer
Ali Shakhtur Said
(1) Head of Business Dev Chile
(2) Head of Plan, Rep, Fin Cont &P&C ST & Ser Ch.
(3) Head of Legal Affairs Dev.South America
Administration
Exercised by a sole director, as provided in the
Company's bylaws.
Senior Executives
Chief Executive Officer & Sole Administrator
Karla Zapata Oballe
Administration
Exercised by a Board of Directors, following the
Law on Corporations.
Board of Directors
Ali Shakhtur Said (1)
Presidente
Jorge Riquelme Hermosilla (2)
Lisandro Rojas
Francisco Arechaga Fernández (3)
Senior Executives
Chief Executive Officer
Viviana Meneses Robledo (4)
(1) Head of Legal Affairs Dev.South America
(2) Head of E&C PE Leader Chile
(3) Head of O&M Geothermal Chile
(4) Head of Dev H,G&G Gen Pl Br,Ch,Arg,Co&Pe
Business Relations
(i) Centralized cash agreement with Enel Chile
S.A. (ii) Contract to issue various kinds of
guarantees (bank receipts, stand-by letters,
corporate guarantees, etc.) by Enel Chile
S.A. in favor of the Company. (iii) Contract
whereby Enel Chile S.A. provides services to
the Company in matters of Security, General
Services, Human Resources and Organization,
Audit,
Finance,
Communications,
Legal,
Sustainability, and others related to the
Company's internal functioning. (iv) Service
Provision Agreement between the Company
and Enel Generación Chile S.A., under which
the latter provides management support,
regulatory analysis, and energy management
services to the Company. (v) Technical Service
Provision Agreement by Enel Green Power SpA.
Business Relations
(i) Service Provision Agreement by Enel
Chile: global service and management of
administration, security, human resources
administration, accounting, tax, purchasing,
and insurance, among other services. Price:
monthly amount reflected in Unidades de
Fomento (UF). (ii) centralized cash register
agreement with Enel Chile S.A. (iii) service
provision agreement with Enel Distribución
Chile S.A.: staff costs, business processes, staff,
and legal services, among others. (iv) Technical
Service Provision Agreement with Enel X S.r.l.
(v) Service Provision Agreement with Enel X
Brasil Gerenciamiento de Energía Ltda.
Business Relations
(i) Contract whereby Enel Green Power Chile
Ltda. Provides the Company with engineering
services, technical supervision of construction
activities, contract management, purchasing,
external relations, sustainability, safety and
environment, computer, accounting, financial,
tax, legal, and other staff, and management
services necessary for the Company's internal
functioning.
(ii) O&M contract whereby Enel Generación
Chile S.A. provides operation and maintenance
services necessary to carry out the activities of
the geothermal plant.
PARQUE TALINAY ORIENTE S.A.
ENEL X WAY CHILE S.p.A.
ENEL MOBILITY CHILE S.P.A.
Company name
Parque Talinay Oriente S.A.
Company name
Enel X Way Chile S.p.A.
Company name
Enel Mobility Chile S.p.A.
Type of company
Closed Stock Company
Type of company
Joint-stock company
Type of company
Joint-stock company
Tax ID number
76.126.507-5
Tax ID number
77.569.067-4
Tax ID number
77.741.548-4
Address
Avenida Santa Rosa N° 76, Santiago.
Address
Avenida Santa Rosa N° 76, Santiago.
Address
Avenida Santa Rosa N° 76, Santiago.
Telephone
(56 2) 26309000
Telephone
(56 2) 26309000
Telephone
(56 2) 26309000
Subscribed and paid-in capital
MUS$143,452
Subscribed and paid-in capital
M$14,229,030
Subscribed and paid-in capital
M$504,095
342
Integrated Annual Report Enel Chile 2023
PARQUE TALINAY ORIENTE S.A.
ENEL X WAY CHILE S.p.A.
ENEL MOBILITY CHILE S.P.A.
Corporate Purpose
Planning, development, and operation of wind
power generation projects.
Corporate Purpose
The development, operation, management,
administration, and marketing of goods and
vehicles, except trucks and buses, run totally
or partially on electricity, including managing
and controlling energy consumption and
energy efficiency exclusively associated with
the electric mobility sector. In addition, the
Company may carry out activities consisting
of the management of slow, fast and ultra-fast
electric charging infrastructure, integrated
and non-integrated, research, promotion,
development, design, installation, operation,
management and maintenance of public
charging infrastructure for electric vehicles,
including aircraft and ships, the operation of
such infrastructures for advertising purposes,
design, promotion, development, advice and
marketing of public charging infrastructure
and the general management of services
related to electric mobility, electric vehicles
and their recharging; provision of services
related to the charging of electric vehicles;
provision of services related to sustainable
mobility; provision of services related to the
use of public charging infrastructure and smart
charging services and integration between
electric vehicles and the electricity grid;
provision of training services on e-mobility
and charging systems; the provision of after-
sales services for electric mobility, charging
infrastructure, smart charging and charging
systems including warranty management;
leasing and leasing of electric vehicle fleets
except
trucks
and
buses;
Provision
of
management services and search of sites for
charging points, provision of technological
services related to electromobility.
Corporate Purpose
The purpose of the Company is: (i) The
development and promotion of charging
infrastructure for fleets and electric vehicles,
as well as the performance of research, design,
and testing activities of associated goods,
equipment, and facilities; (ii) The construction,
remodeling,
reconstruction,
conditioning,
acquisition and development of all types of
public charging infrastructure or public access,
as well as the provision of all types of services
associated with electric charging to be used by
electric vehicles, including slow, fast and ultra-
fast charging, integrated and non-integrated;
(iii) the installation, operation, maintenance
and collection associated with public or
publicly accessible charging infrastructure
for fleets and electric vehicles, and smart
charging services and integration between
electric vehicles and the electricity grid; and
(iv) the study, development, administration
and implementation, on its own account or
on behalf of others, of all kinds of real estate
businesses and activities to establish public
charging infrastructure points and public
access for electric vehicles in the national
territory, such as acquisition, administration,
leasing or other forms of exploitation, on own
account or on behalf of others, of all kinds of
immovable property, as well as the purchase
and sale, with or without a resale agreement,
and the leasing, with or without an option to
purchase, of all kinds of such property, whether
in the form of leasing, lease-back or any other
modalities.
Activities carried out
Wind power generation.
Activities carried out
Services and goods related to electromobility.
Activities carried out
Public charging infrastructure.
Board of Directors
Ali Shakhtur Said (1)
Fernando Meza Marques (2)
Andrés Assar Ramos (3)
Senior Executives
Chief Executive Officer
Ali Shakhtur Said
(1) Head of Legal Affairs Dev.South America
(2) Head of Business Development Chile
(3)Head of BD Business Developers
Administration
Exercised by a sole administrator, according to
the provisions of the company's statutes.
Senior Executives
Sole Administrator & Chief Executive Officer:
Jean Paul Zalaquett Falaha
Administration
Exercised by a sole administrator, according to
the provisions of the company's statutes.
Senior Executives
Sole Administrator & Chief Executive Officer:
Álvaro Covarrubias Alcalde
Business Relations
(i) Centralized cash agreement with Enel
Chile S.A. (ii) Contract to issue different
kinds of guarantees (bank bills, stand-
by letters, corporate guarantees, etc.) by
Enel Chile S.A., in favor of the Company.
(iii) Service Provision Agreement with Enel
Chile S.A.: security, general services, human
resources and organization, auditing, finance,
communications, legal, sustainability, and
others related to the internal functioning of the
Company. (iv) a Service Provision Agreement
between the Company and Enel Generación
Chile S.A., under which the latter provides
management support, regulatory analysis, and
energy management services to the Company.
(v) Contract for providing technical services by
Enel Green Power SpA.
Business Relations
i) Service provision contract with Enel Chile
S.A.:
security,
general
services,
human
resources and organization, audit, finance,
communications,
legal,
sustainability
and
others related to the internal functioning of
the company. (ii) CPO as a Service contract
with Enel Mobility Chile SpA for services related
to the operation of chargers, installation of
chargers, search for places to implement the
chargers, maintenance of chargers, hardware,
data processing, etc."
Business Relations
(i) Central cash contract with Enel Chile S.A.
(ii) Contract for the provision of services with
Enel Chile S.A.: security, general services,
human resources and organization, audit,
finance, communications, legal, sustainability,
and other related to the internal operation of
the company. (iii) Contract CPO as a Service
with Enel X Way Chile SpA for services related
to the operation of chargers, installation of
chargers, search for places to deploy the
chargers, maintenance of charges, hardware,
data processing, etc.
343
Other Corporate Information
4 Enel Chile's Business and
Management 2023
5 Other Corporate
Information
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
6 Main indicators
7 Annexes
344
Integrated Annual Report Enel Chile 2023
6.
MAIN INDICATORS
●Legal and regulatory compliance
●Personnel data
●Board of Directors structure
●Sustainability indicators
●Other information
345
Main Indicators
6 Main indicators
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
7 Annexes
Enforceable penalties by scope of application
Number of Penalties
Amount in thousand
of Ch$
Customers(1)
4
23,118
Company Employees
-
-
Environmental
-
-
Free competition
-
-
Criminal Liability of Legal Entities (Law No. 20,393)
-
-
Total
4
23,118
(1) They are all sanctions under Law No. 19,496 on the Protection of Consumer Rights against Enel Distribución Chile S.A.
LEGAL AND
REGULATORY
COMPLIANCE
Enforceable penalties
The number and number of enforceable penalties received by Enel Chile and its subsidiaries during the 2023 financial year
are listed below:
Procedures aimed at preventing and detecting
regulatory non-compliance
Related to customers
The Company has implemented a customer service
process consisting of a set of protocols and operating
procedures to promptly attend to all customer queries,
requirements, and complaints. It seeks to deliver
the same service, regardless of the contact channel,
respecting and often exceeding the provisions of Law
No. 19,496 on the Protection of Consumer Rights, to
obtain. As a result, a service that exceeds expectations
and improves the customer experience. The focus
is on self-care, as well as on executive attention with
solutions during the first contact.
Related to employees
The Company has implemented procedures to prevent
and detect non-compliance with labor laws and
regulations. The Company's internal regulations include
procedures for complaints, investigations, and sanctions
of workplace and sexual harassment, as well as a channel
for logging complaints through the Ethics Channel
website. Similarly, the People and Organization area
maintains regular and constant communication with the
Legal department to analyze and identify potential risks
in this area and establish courses of action. At the same
time, the People and Organization area has provided
training to the Company's employees on fundamental
rights and their promotion and prevention.
Related to the environment
The
Company
applies
the
most
demanding
environmental standards, in accordance with the internal
policy it maintains on the matter. Without prejudice to
346
Integrated Annual Report Enel Chile 2023
the fact that it does not have a specific compliance
program or model, the strategy for compliance with
environmental obligations has involved the development
of environmental certification processes in generation
plants, as well as the identification and constant updating
of applicable regulatory-environmental standards. In
this context, matrices have been generated associated
with environmental compliance, with a specific unit that
ensures compliance with obligations and permits, both
internally and of the companies that provide services to
Enel Chile. As a result of the above, the Company and
its subsidiaries do not have enforceable sanctions from
the Public Registry of SMA Sanctions or fines issued
during the year 2023. Likewise, in the same period, it is
reported that because sanctioning processes have not
been initiated against the projects under construction,
operation and closure, there are no Compliance
Programs or Plans of Repairs submitted, approved or
satisfactorily executed.
Related to free competition
The Company has a compliance program with free
competition regulations, approved by the Board of
Directors, which provides internal guidelines regarding
the correct ways to prevent the occurrence of
dangerous or harmful conduct for free competition.
The program provides information and education to
the Company's workers, so that they can timely detect
dangerous situations and, thus, prevent them from
materializing, configuring an active prevention program,
in accordance with the characteristics and peculiarities
of the Company, and that is aligned with its commercial
policies. The program is composed of: A) Free
Competition Manual, which contains a description and
explanation of the free competition regulations; B) Risk
and Conduct Guide, which contains a list of actions that
should not be carried out, that can be carried out after
consultation and that must be carried out, depending
on the area of interaction in question (risk area); C)
Consultation Channel on free competition matters; D)
Annual training program on Free Competition for the
Company's workers; E) Behavior procedure in case of
raids (Dawn Raids); and F) Internal control regarding
the figure of interlocking (simultaneous participation
in relevant executive or director positions in competing
companies). These documents are available to workers
on the Company's Intranet services.
Related to compliance and liability of legal entities
The Company has implemented a crime prevention
model, as defined in Law No. 20,393, that establishes
the criminal liability of legal entities. It is called the
Criminal Risk Prevention Model. It is approved by the
Senior Management and adopted and published by the
Company on its website. Similarly, the Code of Ethics,
the Criminal Risk Prevention Model, the Enel Global
Compliance Program, and the Zero Tolerance with
Corruption Plan are part of the control environment
contemplated by the Enel Group and are available on the
website. Enel Chile's Criminal Risk Prevention Model is
being reviewed and updated, with the advice of a third-
party expert, in the context of the entry into force of
Law No. 21,595 on Economic and Environmental Crimes
in August 2023 and the changes introduced to Law No.
20,393.
347
Main indicators
6 Main indicators
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
7 Annexes
Number of people by gender
Type of job
Men
Women
Total
Senior Management
12
3
15
Management
30
10
40
Headquarters
258
74
332
Operating staff
53
1
54
Sales Force
13
3
16
Administrative Staff
16
39
55
Auxiliary staff
-
-
-
Other professionals
1,025
377
1,402
Other Technicians
155
8
163
Total
1,562
515
2,077
PERSONNEL
DATA
Diversity in the Organization
348
Integrated Annual Report Enel Chile 2023
Number of people by nationality
Type of job
Argentinean
Brazilian
Chilean
Colombian
Peruvian
Italian
Spanish
Other
nationalities
Total
Senior Management
-
-
10
1
-
3
-
1
15
Men
-
-
8
1
-
3
-
-
12
Women
-
-
2
-
-
-
1
3
Management
-
1
33
2
1
2
-
1
40
Men
-
-
28
1
-
1
-
-
30
Women
-
1
5
1
1
1
-
1
10
Headquarters
4
-
310
3
1
4
5
5
332
Men
3
-
244
-
-
3
5
2
257
Women
1
-
66
3
1
1
-
3
75
Operating staff
17
-
33
-
3
-
-
1
54
Men
16
-
33
-
3
-
-
1
53
Women
1
-
-
-
-
-
-
-
1
Sales Force
-
-
15
-
-
-
-
1
16
Men
-
-
13
-
-
-
-
1
14
Women
-
-
2
-
-
-
-
-
2
Administrative Staff
-
-
55
-
-
-
-
-
55
Men
-
-
16
-
-
-
-
-
16
Women
-
-
39
-
-
-
-
-
39
Auxiliary staff
-
-
-
-
-
-
-
-
-
Men
-
-
-
-
-
-
-
-
-
Women
-
-
-
-
-
-
-
-
-
Other professionals
9
3
1,302
13
3
5
4
63
1,402
Men
7
-
973
6
2
3
4
30
1,025
Women
2
3
329
7
1
2
-
33
377
Other Technicians
-
-
157
1
-
-
-
5
163
Men
-
-
151
1
-
-
-
3
155
Women
-
-
6
-
-
-
-
2
8
Total
30
4
1,915
20
8
14
9
77
2,077
Men
26
-
1,466
9
5
10
9
37
1,562
Women
4
4
449
11
3
4
-
40
515
349
Main indicators
6 Main indicators
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
7 Annexes
Number of people by age range
Type of job
Under 30 years
old
Between 30 and
40 years old
Between 41 and
50 years old
Between 51 and
60 years old
Between 61 and
70 years old
More than 70
years
Total
Senior Management
-
1
9
5
-
-
15
Men
-
1
6
5
-
-
12
Women
-
-
3
-
-
-
3
Management
-
3
21
15
1
-
40
Men
-
1
15
13
1
-
30
Women
-
2
6
2
-
-
10
Headquarters
2
91
139
88
12
-
332
Men
1
59
107
80
11
-
258
Women
1
32
32
8
1
-
74
Operating staff
1
19
23
10
1
-
54
Men
1
19
22
10
1
-
53
Women
-
-
1
-
-
-
1
Sales Force
2
8
4
2
-
-
16
Men
2
7
2
2
-
-
13
Women
-
1
2
-
-
-
3
Administrative Staff
2
5
12
23
13
-
55
Men
-
2
2
5
7
-
16
Women
2
3
10
18
6
-
39
Auxiliary staff
-
-
-
-
-
-
-
Men
-
-
-
-
-
-
-
Women
-
-
-
-
-
-
-
Other professionals
54
494
515
269
69
1
1,402
Men
29
340
369
224
62
1
1,025
Women
25
154
146
45
7
-
377
Other Technicians
2
38
52
49
21
1
163
Men
2
34
51
47
20
1
155
Women
-
4
1
2
1
-
8
Total
63
659
775
461
117
2
2,077
Men
35
463
574
386
102
2
1,562
Women
28
196
201
75
15
-
515
350
Integrated Annual Report Enel Chile 2023
Number of people by seniority
Type of job
Less than 3 years
Between 3 and 6
years
Over 6 and Under
9
Between 9 and 12 More than 12 years
Total
Senior Management
2
2
4
1
6
15
Men
1
1
3
1
6
12
Women
1
1
1
-
-
3
Management
4
4
2
3
27
40
Men
1
2
1
3
23
30
Women
3
2
1
-
4
10
Headquarters
26
31
31
49
195
332
Men
20
19
23
37
159
258
Women
6
12
8
12
36
74
Operating staff
30
1
1
6
16
54
Men
30
-
1
6
16
53
Women
-
1
-
-
-
1
Sales Force
8
3
1
4
-
16
Men
7
3
-
3
-
13
Women
1
-
1
1
-
3
Administrative Staff
-
3
7
4
41
55
Men
-
-
5
-
11
16
Women
-
3
2
4
30
39
Auxiliary staff
-
-
-
-
-
-
Men
-
-
-
-
-
-
Women
-
-
-
-
-
-
Other professionals
336
268
118
126
554
1,402
Men
228
183
90
106
418
1,025
Women
108
85
28
20
136
377
Other Technicians
22
9
15
7
110
163
Men
20
8
14
7
106
155
Women
2
1
1
-
4
8
Total
428
321
179
200
949
2,077
Men
307
216
137
163
739
1,562
Women
121
105
42
37
210
515
Number of people with disabilities
Type of job
Men
Women
Total
Senior Management
-
-
-
Management
-
-
-
Headquarters
-
-
-
Operating staff
-
1
1
Sales Force
-
-
-
Administrative Staff
1
-
1
Auxiliary Staff
-
-
-
Other professionals
6
3
9
Other Technicians
-
-
-
Total
7
4
11
351
Main indicators
6 Main indicators
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
7 Annexes
Type of contracts
Type of
Contract
Indefinite term
Fixed Term
By Work or Task
Fee-based
Total
Number
%
Number
%
Number
%
Number
%
Number
%
Men
1,561
75%
1
0%
-
0%
-
0%
1,562
75%
Women
515
25%
-
0%
-
0%
-
0%
515
25%
Total
2,076
100%
1
0%
-
0%
-
0%
2,077
100%
Work Flexibility
Pay Equity
Type of job
Average
Median
Senior Management
93%
94%
Management
97%
100%
Headquarters
83%
87%
Operating Staff
n/a
n/a
Sales Force
116%
120%
Administrative Staff
131%
125%
Auxiliary Staff
n/a
n/a
Other professionals
86%
89%
Other Technicians
93%
89%
Total
86%
91%
(*) International staff is not considered in the calculation since the total gross salary is defined based on the local market of the country of origin,
and they receive additional benefits due to international mobility.
Work Safety
Work safety
Accident rate
0.05
Fatality rate
0
Professional disease rate
0
Average days lost because of accidents
41
(*) It considers the average monthly number of employees hired directly by Enel Chile and its subsidiaries.
Type of
Contract
People with ordinary
working hours(1)
Part-time workers
Adaptability
agreements (other
than teleworking)
People with hybrid
work mode (2)
People working from
home
Total
Number
%
Number
%
Number
%
Number
%
Number
%
Number
%
Men
472
23%
-
0%
-
0%
1,090
52%
-
0%
1,562
75%
Women
48
2%
-
0%
-
0%
467
22%
-
0%
515
25%
Total
520
25%
-
0%
-
0%
1,557
75%
-
0%
2,077
100%
(1) Considers workers with an ordinary work day with a 100% in-person modality.
(2) The hybrid system considers a teleworking component and a face-to-face work component of a minimum of 8 days per month.
352
Integrated Annual Report Enel Chile 2023
Training
Maternity leave
Type of job
Average Days of Postnatal Paternal Leave Used
Men
Women
Post-natal 5 days
Post-natal parental
Senior Management
-
-
-
Management
-
-
-
Headquarters
6
-
100
Operating Staff
-
-
-
Sales Force
7
-
-
Administrative Staff
-
-
-
Auxiliary Staff
-
-
-
Other Professionals
7
125
Other Technicians
7
-
84
Total
7
-
117
Parental and Postnatal Leaves
2023
Women
Men
Legal Parental Leave Days
84
5
Legal Parental Postnatal Days
84 days full-time or 126 days, in
case of return to work half-time
Benefit transferred by the mother
for a maximum of 42 days of full-
time work or a maximum of 84
days of part-time work
Additional days to those established by law that the Company grants
for postnatal leave
-
1
People who made use of their postnatal leave
21
14
Percentage of people who made use of postnatal care out of the total
number of eligible people
100%
100%
Average Training Hours
Type of Job
Men
Women
Total Average
Senior Management
26
29
27
Management
38
27
37
Headquarters
44
76
51
Operating Staff
71
-
71
Sales Force
-
-
-
Administrative Staff
9
28
26
Auxiliary Staff
-
-
-
Other professionals
41
50
43
Other Technicians
-
-
-
Average
42
53
45
353
Main indicators
6 Main indicators
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
7 Annexes
Number of people by gender
2023
Women
2
Men
5
Total
7
Number of people by age
2023
Between 41 and 50 years
3
Women
2
Men
1
Between 51 and 60 years
-
Women
-
Men
-
Between 61 and 70 years
-
Women
-
Men
-
Over 70 years
4
Women
-
Men
4
Total
7
Number of people by nationality
2023
Chilean
4
Women
-
Men
4
Italian
3
Women
2
Men
1
Total
7
Number of people by seniority
2023
Less than 3 years
-
Women
-
Men
-
Between 3 and 6 years
3
Women
2
Men
1
Over 6 but less than 9 years
4
Women
-
Men
4
Between 9 and 12 years
-
Women
-
Men
-
Over 12 years
-
Women
-
Men
-
Total
7
BOARD OF
DIRECTORS
STRUCTURE
Board of Directors Diversity
354
Integrated Annual Report Enel Chile 2023
SUSTAINABILITY
INDICATORS
SASB - Sustainability Accounting Standards Board
Enel Chile S.A. presents the disclosure of the Sustainability
Accounting Standards Standard (SASB), corresponding to
the industrial sector of Electric Companies and Electric
Generators.
The Board of Directors of the Company in a meeting held
on March 27, 2024, in compliance with section 8.2 of
General Rule No. 461 of the Financial Market Commission
(CMF) and in accordance with the indications contained in
section III. 2 of the Implementation and Supervision Guide,
issued by the CMF in September 2022, in the use of its
administrative powers, ratified to report in Enel Chile's
2023 Integrated Annual Report the SASB standard for
the industrial sector of Electric Companies and Electric
Generators, in accordance with the Sustainable Industry
Classification ® System (SICS ®). Furthermore, on the
same date, the Board of Directors approved the industry's
accounting parameters, accounting for the reasons
or motives why some of them would eventually not be
disclosed in the 2023 Integrated Annual Report.
Scope of information
The scope of the information includes all the subsidiaries
that are part of Enel Chile's consolidation perimeter,
indicated in the Subsidiaries, associates, and joint ventures
section of Chapter 5 of this Integrated Annual Report. If
one of these indicators does not consider any subsidiary
companies, it will be expressly indicated.
355
Main indicators
6 Main indicators
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
7 Annexes
Emissions
Code
Accounting Parameter
Category
Measurement Unit
Answer
IF-EU-110a.1
Total Gross Scope 1 Emissions
Quantitative
Metric tons (t) CO2-e
3,131,174 ton CO2 equivalent (*)
IF-EU-110a.1
Percentage of Gross Scope 1
Emission Covered by Emission
Limitation Regulations
Quantitative
Percentage (%)
100%
IF-EU-110a.1
Percentage of Gross Scope 1
Emissions Covered by Emissions
Reporting Regulations
Quantitative
Percentage (%)
100%
IF-EU-110a.2
Greenhouse
gas
(GHG)
emissions
associated
with
energy supplies
Quantitative
Metric tons (t) CO2-e
3,398,709 ton CO2 equivalent
IF-EU-110a.3
Analysis of the long-term and
short-term strategy or plan for
managing Scope 1 emissions,
emission reduction targets,
and analysis of the results
against those targets
Discussion and
analysis
Not applicable
During 2023, Enel Chile has continued to advance
projects related to the closure and dismantling of
its coal facilities that were closed in previous years.
In line with this, the Company is committed to the
principles of just transition, which are based on
consolidated global frameworks on issues such
as climate change, Human Rights, gender equality,
labor standards and inclusive growth. These
principles imply paying special attention to the
social repercussions and environmental impacts
that may arise during this process(**).
(*) Considers 100% of the thermal generation plants of the Enel Chile Group.
(**) For more details, see Chapter 3 Strategy and Risk Management of this Report.
Air quality
Code
Accounting Parameter
Category
Measurement Unit
Answer
IF-EU-120a.1
Air emissions of the following
pollutants: (1) NOx (except
N2O), (2) SOx, (3) particulate
material (PM10), (4) lead (Pb),
and (5) mercury (Hg)
Quantitative
Metric Ton
1) NOx: 1,752 t
2) SOx: 71 t
3) Particulate matter: 131 t
4) Lead (Pb): Na
5) Mercury (Hg): 0.000
IF-EU-120a.1
The percentage of each in or
near densely populated areas
Quantitative
Percentage (%)
1) NOx: (except N2O) 99.2%
2) SOx: 67.99%
3) Particulate matter (PM10): 0.01%
4) Lead (Pb): n/a
5) Mercury (Hg): 0%
356
Integrated Annual Report Enel Chile 2023
Code
Accounting Parameter
Category
Measurement Unit
Answer
IF-EU-140a.1
(1) Total water extracted, (2)
total water consumed, (3)
percentage of each in regions
with high or extremely high
initial water stress
Quantitative
One thousand cubic
meters (m³), percent
(%)
(1) Total water extracted: 5,418 thousand m3
(2) Total water consumed: 3,036 thousand m3
(3.1) Total percentage of water extraction in water
stress areas 80.38%
(3.2) Percentage of total water consumption in
water stress areas: 89.04%
IF-EU-140a.2
Number of non-compliance
incidents related to water
quantity or quality permits,
standards, and regulations
Quantitative
Number
0
IF-EU-140a.3
Description
of
water
management
risks
and
analysis of strategies and
practices to mitigate them
Discussion and
analysis
n/a
During 2023, the Company maintained the
WAVE (Water Value Enhancement) program,
whose objective is to reduce water consumption
throughout the entire electrical energy production
process and make the most of the use of the
resource in all plants. The supervision/review of
consumption is reviewed quarterly. The plant with
the highest water consumption is the San Isidro
Thermoelectric Power Plant, where the main work
focus has been placed. To date, its consumption
has been reduced compared to 2019, giving
continuity to the circular economy project that
consists of the delivery of cooling water for its
valorization in mining processes. This prevents
them from being discharged into the Aconcagua
River as liquid waste (Riles) and, therefore, the
restriction associated with the sulfate limits of
discharge regulation is eliminated. In this context,
it is possible to cycle the resource more times and,
consequently, demand a smaller amount of fresh
water in an area that currently has water stress.
Water Management
Carbon ash management
Code
Accounting Parameter
Category
Measurement Unit
Answer
IF-EU-150a.1
Amount of waste generated
by coal combustion (CCR)
Quantitative
Metric Tons (t)
0
IF-EU-150a.1
Percentage Recycled
Quantitative
Percentage (%)
n/a
IF-EU-150a.2
Total
number
of
coal
combustion waste deposits
(CCRs),
broken
down
by
hazard potential classification
and
structural
integrity
assessment
Quantitative
Number
0
357
Main indicators
6 Main indicators
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
7 Annexes
Energy Affordability
Code
Accounting Parameter
Category
Measurement Unit
Answer
IF-EU-240a.1
Average Retail Electric Rate for
(1) Residential, (2) Commercial,
and (3) Industrial Customers
Quantitative
Speed
Average retail electricity rate (CLP/kWh)(*)
•
Residential customers: 144.2 ($CLP/kWh)
•
Commercial customers: 96.8 ($CLP/kWh)
•
Industrial customers: 139.4 ($CLP/kWh)
•
Others: 10.3 ($CLP/kWh)
IF-EU-240a.2
Typical
monthly
residential
customers' electricity bill for
(1) 500 kWh and (2) 1000 kWh
of electricity supplied each
month
Quantitative
Currency to be
informed
Typical monthly electricity bill (CLP/Month)
• The first 500 kilowatt-hours (kWh): CLP$ 23
thousand
• The first 1,000 kWh: CLP$ 91 thousand
IF-EU-240a.3
Number
of
residential
customer power shutoffs due
to non-payment
Quantitative
Number
523,965
IF-EU-240a.3
Percentage
reconnected
before 30 days
Quantitative
Percentage (%)
83%
IF-EU-240a.4
External factors effect analysis
concerning the affordability
of electricity to customers,
including
the
economic
conditions
of
the
service
territory
Discussion and
analysis
n/a
Given the regulatory context, Enel Distribución
Chile seeks to achieve levels of efficiency that allow
maintaining the quality and security of supply
within the framework of tariff recognition, which
contributes to greater affordability for customers.
The Company interacts with regulators in order to
achieve affordable rates not only from distribution,
but also by accelerating the use of renewable
technologies and different alternatives that provide
continuity of supply in a more economical way than
fossil fuels, in addition to allowing progress in the
Net Zero. Additionally, the authority established
the Stabilized Price for the Regulated Customer,
which has allowed, since the end of 2019(**), to
maintain rates without price increases, advancing
the benefits of the contracts of the distribution
companies tendered at lower generation prices.
Enel Chile continues with determination its
commitment to the modernization and efficiency
of its networks, focusing increasingly on the
interaction between the Group and its customers,
who become consumers and producers of
energy
thanks
to
innovative
technologies
and continuous research on the smart grids.
In the coming years, electricity will be produced
less and less in large centralized generation
plants and increasingly in a series of plants of
different sizes. Grids will therefore need to adapt
to manage the variable and decentralized nature
of renewable sources at multiple entry points,
focusing on active customer participation and the
consequent diffusion of generation plants and
self-consumption facilities.
(*) The average electricity rate per customer segment is calculated based on energy consumption + other costs associated with electricity
(distribution service, transportation, power consumed (when applicable), fines), divided by the total energy sold. All values include VAT. For the
"Others" segment, only Toll customers are considered.
(**) For more details see Law N°21,185 (https://www.bcn.cl/leychile/navegaridNorma=1138181&idParte=1005761) and Law N°21,472 (https://www.bcn.
cl/leychile/navegaridNorma =1179524). Ministry of Mining (https://www.bcn.cl/leychile/navegar?idNorma=124102&idParte=).
358
Integrated Annual Report Enel Chile 2023
Workforce Health & Safety
End-Use Efficiency and Demand
Nuclear safety and emergency management
Code
Accounting Parameter
Category
Measurement Unit
Answer
IF-EU-320a.1
(1) Total Recordable Incident
Rate (TRIR)
Quantitative
Frequency Rate
TRIR: 0.47
IF-EU-320a.1
(2) Mortality rate
Quantitative
Frequency Rate
Death rate: 0
IF-EU-320a.1
(3) Near Miss Frequency Rate
(NMFR)
Quantitative
Frequency Rate
NMFR: 1.14
Code
Accounting Parameter
Category
Measurement Unit
Answer
IF-EU-420a.2
Percentage of electrical load
supplied
with
smart
grid
technology
Quantitative
Percentage (%) per
Megawatt hours
(MWh)
8.43%
IF-EU-420a.3
Electricity
savings
by
customers,
thanks
to
efficiency measures, for each
market
Quantitative
Megawatt hours
(MWh)
Does not apply locally, corresponds to United
States regulations
Code
Accounting Parameter
Category
Measurement Unit
Answer
IF-EU-540a.1
Total
number
of
nuclear
power units, broken down by
the U.S. Nuclear Regulatory
Commission
(NRC)
"Stock
Matrix" column
Quantitative
Number
Not applicable, Enel Chile does not own or operate
any nuclear energy unit
IF-EU-540a.2
Description
of
Efforts
to
Manage Nuclear Safety and
Emergency Preparedness
Discussion and
analysis
n/a
Not applicable, Enel Chile does not own or operate
any nuclear energy unit
Power Grid Resilience
Code
Accounting Parameter
Category
Measurement Unit
Answer
IF-EU-550a.1
Number of non-compliance
incidents with physical or
cyber security standards or
regulations
Quantitative
Number
0
IF-EU-550a.2
(1) Average System Outage
Duration
Index
(SAIDI),
(2)
Average
System
Outage
Frequency Index (SAIFI), and
(3) Average Customer Outage
Duration Index (CAIDI), which
includes the days on which
major events occur
Quantitative
Minutes, number
SAIDI: 122 (Average Minutes) (*)
SAIFI: 1.25 (Average number) (*)
CAIDI: 97.60 (*)
(*) Values are subject to changes as a result of the approval process from the corresponding regulatory authority, a process that has not been
completed as of the date of presentation of this report.
359
Main indicators
6 Main indicators
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
7 Annexes
Activity Parameters
Code
Accounting Parameter
Category
Measurement Unit
Answer
IF-EU-000.A
Number of (1) residential, (2)
commercial, and (3) industrial
customers served
Quantitative
Number
(1) Residential: 1,912,633
(2) Commercial: 157,839
(3) Industrial: 11,639
(4) Others:45,930
(5) Tolls: 1,780
IF-EU-000.B
Total electricity supplied to
(1) residential customers, (2)
commercial
customers,
(3)
industrial customers, (4) all
other retail customers, and (5)
wholesale customers
Quantitative
Megawatt hours
(MWh)
(1) Residential: 5,729,845 MWh
(2) Commercial: 2,227,585 MWh
(3) Industrial: 410,377 MWh
(4) Others: 657,206 MWh
(5) Tolls: 5,331,453 GWh
IF-EU-000.C
Length of transmission and
distribution lines
Quantitative
Kilometers (km)
Medium Voltage distribution lines: 5,598 km
Low Voltage distribution lines: 12,068 km
IF-EU-000.D
Total
electricity
generated,
percentage
by
primary
energy source, percentage in
regulated markets
Quantitative
Megawatt hours
(MWh), Percentage
(%)
(1)Total net production: 24,122,157 (MWh)
Emission-free Production: 17,923,726 (MWh)
(2) Net production: Gas & Oil: 25.7%; Water: 50.6%;
Wind: 7.4%; Geothermal: 1.6%; Photovoltaic: 14.7%
(3) 0%
IF-EU-000.E
Total Electricity Purchased in
Bulk
Quantitative
Megawatt hours
(MWh)
8,724,419 MWh (*)
(*) Corresponds to purchases made by the generation segment, which considers both operations carried out in the spot market and contract
purchases from other generators.
Note: As of the date of publication, the verification process is underway.
360
Integrated Annual Report Enel Chile 2023
OTHER
INFORMATION
Payment to Suppliers
Period
Company
National
Foreign
No. of
documents(1)
Amount (Ch$
millions)
No. of
suppliers
No. of
documents(1)
Amount (Ch$
millions)
No. of
suppliers
Up to 30
days
Empresa Eléctrica Pehuenche S.A.
2,730
18,079
343
6
56
4
Enel Chile S.A.
2,680
17,784
295
63
4,538
25
Enel Colina S.A.
572
1,220
56
-
-
-
Enel Distribución S.A.
22,294
920,710
622
84
5,265
26
Enel Generación Chile S.A.
28,384
2,239,680
345
307
494,632
56
Enel Green Power Chile S.A.
16,816
251,423
364
134
19,294
42
Enel Mobility Chile SpA
136
2,796
3
-
-
-
Enel X Chile S.p.A.
3,180
50,343
78
2
65
2
Geotérmica del Norte S.A.
4,739
22,727
67
3
60
1
Parque Talinay Oriente S.A.
4,881
2,851
85
4
78
4
Sociedad Agrícola De Cameros Ltda
8
31
1
-
-
-
Total
86,420
3,527,644
-
603
523,988
-
Between
31 and 60
days
Empresa Eléctrica Pehuenche S.A.
87
2,107
45
6
525
3
Enel Chile S.A.
242
2,558
69
40
1,588
16
Enel Colina S.A.
111
198
28
-
-
-
Enel Distribución S.A.
2,902
45,158
249
37
1,103
15
Enel Generación Chile S.A.
4,444
90,345
345
82
25,779
29
Enel Green Power Chile S.A.
1,563
38,029
364
92
10,987
40
Enel Mobility Chile SpA
40
45
3
-
-
-
Enel X Chile S.p.A.
310
6,060
78
10
52
2
Geotérmica del Norte S.A.
145
4,180
67
3
72
1
Parque Talinay Oriente S.A.
142
1,310
85
2
10
2
Sociedad Agrícola De Cameros Ltda
2
9
1
-
-
-
Total
9,988
189,999
-
272
40,118
-
More than
60 days
Empresa Eléctrica Pehuenche S.A.
56
1,706
25
3
704
1
Enel Chile S.A.
74
428
20
32
1,218
8
Enel Colina S.A.
187
670
8
-
-
-
Enel Distribución S.A.
13,004
49,494
129
69
13,554
18
Enel Generación Chile S.A.
1,119
143,255
168
109
68,696
23
Enel Green Power Chile S.A.
928
181,621
195
98
108,169
33
Enel Mobility Chile SpA
89
79
4
-
-
-
Enel X Chile S.p.A.
227
35,029
16
11
1,812
3
Geotérmica del Norte S.A.
64
4,349
38
7
637
3
Parque Talinay Oriente S.A.
78
364
38
-
-
-
Sociedad Agrícola De Cameros Ltda
4
14
2
-
-
-
Total
15,830
417,008
-
329
194,791
-
Total
112,238
4,134,651
-
1,204
758,897
-
(1) Considers the number of invoices, credit notes, and debit notes.
361
Main indicators
6 Main indicators
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
7 Annexes
362
Integrated Annual Report Enel Chile 2023
7.
ANNEXES
●Basic information of the Company
●Policies, principles and codes
●Publication of consolidated financial
statements
●Statement of Responsibility
●NCG content index N°461
●TCFD contents index
363
Annexes
6 Main indicators
7 Annexes
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
BASIC
INFORMATION OF
THE COMPANY
Santiago Stock Exchange
ENELCHILE
https://www.bolsadesantiago.com
Chilean Electronic Stock Exchange
ENELCHILE
https://www.bolchile.com
New York Stock Exchange (NYSE)
ENIC
https://www.nyse.com/index
Enel Chile S.A. was initially incorporated under the corporate name of Enersis Chile S.A., effective March 1, 2016. On October
18 of the same year, the Company was renamed Enel Chile S.A. As of December 31, 2023, its share capital reached Ch$
3,882,103 million, representing 69,166,557,220 shares. These securities are traded on the Santiago Stock Exchange and
The New York Stock Exchange (NYSE) as American Depositary Shares (ADS). Its main business is to exploit, develop, operate,
generate, distribute, transform, and/or sell energy in any of its forms or nature, directly or through other companies. Enel Chile
controls and manages a group of companies operating in the Chilean electricity market, with total assets of Ch$11,833,721
million as of December 31, 2023. In the year, the net result attributable to the Parent Company was Ch$ 633,456 million, and
the operating result was Ch$ 767,761 million. At the end of the year, the Company directly employed 2,077 people through
its subsidiaries in Chile and the branch of Enel Generación Chile in Jujuy, Argentina.
364
Integrated Annual Report Enel Chile 2023
Name or company name
Enel Chile S.A.
Domicile
Santiago de Chile can establish agencies or branches in other parts of the country or abroad.
Type of company
Open Stock Company
Tax ID number
76.536.353-5
Address
Santa Rosa Nº76, piso 17, Santiago, Chile (*)
Zip code
833-009 Santiago de Chile
Phones
(56) 22353 4400
Box
1557, Santiago
Registration of the Securities Registry
Nº1.139
External Auditors
KPMG Auditores Consultores Ltda
Subscribed and paid-in capital
3,882,103,470,184
Website
www.enel.cl; www.enelchile.cl
Email
comunicacion.enelchile@enel.com
Other communication channels
X (https://twitter.com/EnelChile); Facebook (https://m.facebook.com/EnelChile/); Instagram (https://
www.instagram.com/enelchile/); Linkedin (https://www.linkedin.com/company/enelchile/)
Investor Relations Contact
Isabela Klemes-Head of Investor Relations Enel Chile (isabela.klemes@enel.com)
ir.enelchile@enel.com
Investor Web Address
https://www.enel.cl/es/inversionistas/inversionistas-enel-chile.html
Mnemonic at Chilean Stock Exchanges
ENELCHILE
Mnemonic at New York Stock Exchange
ENIC
Bank custodian ADS program
Banco Santander Chile
Depositary bank ADS program
Citibank N.A.
National Risk Rating agencies
Feller Rate Clasificadora de Riesgo Limitada
Fitch Chile Clasificadora de Riesgo Limitada
International Risk Rating agencies
Standard & Poor´s International Rating Services
Fitch Ratings
(*) As of April 1, 2024, the Company's address has been established at Roger de Flor 2725, Las Condes, Santiago, Chile.
365
Annexes
6 Main indicators
7 Annexes
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
POLICIES,
PRINCIPLES AND
CODES
Ethics, Integrity, Human Rights and Diversity
Code of Ethics
Zero Tolerance with Corruption Plan
Global Corporate Criminal Liability Compliance Program
Criminal Risk Prevention Model
Antitrust Compliance Program
Human Rights Policy
Diversity & Inclusion Policy
Privacy & Data Protection Policy
Risk Management Policy
Corporate Governance
Corporate Governance Practices
Protocol of Action in Dealing with Public Officials and Public Authorities
Protocol for Acceptance and Offering of Gifts, Gifts, and Favors
Induction Procedure for New Directors
Procedure for Ongoing Training and Continuous Improvement of the Board of Directors
Procedure for Informing Shareholders of Background Candidates for Director
Habituality Policy
Tax Transparency and Reporting
Engagement policy
Manual for the Management of Market Interest Information
Investor Relations Policy
Sustainability
Sustainability Policy and Community Relations
Environmental Policies
Biodiversity Conservation
Biodiversity Policy
366
Integrated Annual Report Enel Chile 2023
PUBLICATION OF
CONSOLIDATED
FINANCIAL STATEMENTS
Enel Chile's audited consolidated financial statements as of December 31, 2023, approved by its Board of Directors at a
meeting held on February 28, 2024, have been prepared in accordance with International Financial Reporting Standards
(IFRS), issued by the International Accounting Standards Board (IASB).
These financial statements are published on the website of the Financial Market Commission under the URL
https://www.cmfchile.cl/institucional/mercados/entidad.php?mercado=V&rut=76536353&grupo=&tipoentidad=RVE-
MI&row=AAAwy2ACTAAABz8AAF&vig=VI&control=svs&pestania=3
and are also published on the Company's Website under the URL
https://www.enel.cl/content/dam/enel-cl/en/investors/enel-chile/information-for-the-shareholder/quarterly-results/
financial-statements/2023/Consolidated-Financial-Statements-Enel-Chile-and-subsidiaries-12-2023.pdf
367
Annexes
6 Main indicators
7 Annexes
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
STATEMENT OF
RESPONSIBILITY
The directors of Enel Chile S.A. and the Chief Executive Officer, signatories of this declaration, are responsible under oath
for the integrity of all the information provided in this Integrated Annual Report 2023, in compliance with General Standard
No. 461, issued by the Financial Market Commission:
GERENTE GENERAL (a.i)
Giuseppe Turchiarelli
PRESIDENTE
Herman Chadwick Piñera
DIRECTOR
Pablo Cabrera Gaete
DIRECTOR
Salvatore Bernabei
DIRECTORA
Monica Girardi
DIRECTOR
Gonzalo Palacios Vásquez
DIRECTOR
Fernán Gazmuri Plaza
DIRECTORA
Isabella Alessio
Signed by
Chadwick
Herman
Firmado por
Gonzalo
Palacios
Firmado por
GIUSEPPE
TURCHIARELLI
Firmado por
Fernán
Gazmuri
Firmato da
Monica
Girardi
Firmado por
Pablo
Cabrera
Firmato da
SALVATORE
BERNABEI
Firmato da
Isabella
Alessio
Signed by
Signed by
Signed by
Signed by
Signed by
Signed by
Signed by
CHAIRMAN
BOARD MEMBER
BOARD MEMBER
BOARD MEMBER
BOARD MEMBER
BOARD MEMBER
BOARD MEMBER
CHIEF EXECUTIVE OFFICER (a.i.)
368
Integrated Annual Report Enel Chile 2023
NCG NO. 461 INDEX
Code NCG
N°461
Request
Chapter
Section
Page
2
Entity profile
2.1
Mission, vision, purpose and values
2. Governance
Enel is Open Power; Values and
Ethical Pillars
4-5, 70
2.2
Historic information
5. Other corporate
information
Historical Information
300-301
2.3
Property
-
-
-
2.3.1
Control situation
2. Governance
Ownership and Control Structure
34-36
2.3.2
Most significant changes in ownership
2. Governance
Major changes to ownership
37
2.3.3
Identification of partners or controlling
shareholders
2. Governance
Majority Shareholders
35
2.3.4
Shares, their characteristics and rights
-
-
-
2.3.4 i.
Description of the series of actions
2. Governance
Ownership and Control Structure
34
2.3.4 ii.
Policy dividend
5. Other corporate
information
2024 and 2025 Dividend Policy
309
2.3.4 iii.
Statistical information
-
-
-
2.3.4 iii. a.
Dividends
5. Other corporate
information
Dividends paid
310-311
2.3.4 iii. b.
Exchange transactions
5. Other corporate
information
Statistical share-related
information
305-307
2.3.4 iii. c.
Number of shareholders
2. Governance
Ownership and Control Structure
34
2.3.5
Other Securities
5. Other corporate
information
Other issued securities
308
3
Corporate Governance
3.1
Governance framework
-
-
-
3.1 i.
Good functioning of Corporate
Governance
2. Governance
Governance Framework
38
3.1 ii.
Sustainability approach in business
2. Governance
Meetings with sustainability
management
48
3. Strategy and risk
management
Integrating sustainability into the
business model; Zero emissions
ambition
101-104, 138-180
3.1 iii.
Detection and management of conflicts
of interest
2. Governance
Monitoring and controlling issues
relevant to stakeholders; Conflict
of interest
49, 71
3.1 iv.
Interests of stakeholders
2. Governance
Monitoring and controlling issues
relevant to stakeholders
49
3. Strategy and risk
management
Stakeholders and Material Issues
104-117
3.1 v.
Promotion of innovation
4. Enel Chile´s business
and management 2023
Innovation
253-260
3.1 vi.
Reduction of organizational barriers
2. Governance
Governance Framework
39, 52
4. Enel Chile´s business
and management 2023
Diversity and Inclusion
276-277
3.1 vii.
Identification of capacities and
knowledge
4. Enel Chile´s business
and management 2023
Diversity and Inclusion
276-277
369
Annexes
6 Main indicators
7 Annexes
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
Code NCG
N°461
Request
Chapter
Section
Page
3.1 vii.
Organization chart
2. Governance
Executive Team
59
3.2
Board of Directors
-
-
-
3.2 i.
Identification of Board members
2. Governance
Board of Directors
42-43
Board of Directors
Structure and experience of
the Board of Directors
10-13
3.2 ii.
Board of Directors Compensation
2. Governance
Remuneration of the Board of
Directors and the Directors'
Committee
57-58
3.2 iii.
Expert recruitment policy
2. Governance
Hiring Board of Directors
Consultants
53
3.2 iv.
Directory Knowledge Matrix
2. Governance
Board of Directors’ Experience
Matrix
44
3.2 v.
Induction procedures for new members
of the Board of Directors
2. Governance
Induction Procedure
50
3.2 vi.
Periodicity of meetings with Risks,
Internal Audit and External Audit
2. Governance
Board of Directors Meetings
46-48
3.2 vii.
How information is provided regarding
environmental, social and climate
change matters
2. Governance
Monitoring climate change
risks; Monitoring and controlling
issues relevant to stakeholders;
Monitoring social issues
48-49
3. Strategy and risk
management
Governance for Climate Change
142
3.2 viii.
Visits to facilities
2. Governance
Field visits
51
3.2 ix.
Board of Director effectiveness
2. Governance
Evaluation of the Effectiveness of
the Board of Directors
51
3.2 ix. a.
Training Areas
2. Governance
Board of Directors’ Training
52
3.2 ix. b.
Detection and reduction of
organizational barrierss
2. Governance
Board of Directors’ Training
52
3.2 ix. c.
Recruitment of expert consultancies to
evaluate the performance and operation
of the Board of Directors
2. Governance
Evaluation of the Effectiveness of
the Board of Directors
51
3.2 x.
Minimum number of ordinary meetings
2. Governance
Attendance at Board meetings
52
3.2 xi.
Change in its form of internal
organization and operation
2. Governance
Operational Continuity Plan
53
3.2 xii.
Remote information system
2. Governance
Electronic Dispatch and
Information System; Ethics
Channel
53, 72-73
3.2 xiii.
Formation of the Board of Directors
-
-
-
3.2 xiii. a.
Total number of Directors
6. Main indicators
Board of Directors Structure
354
3.2 xiii. b.
Number of Directors by nationality
6. Main indicators
Board of Directors Structure
354
3.2 xiii. c.
Number of Directors by age range
6. Main indicators
Board of Directors Structure
354
3.2 xiii. d.
Number of Directors by seniority
6. Main indicators
Board of Directors Structure
354
3.2 xiii. e.
Number of Directors with disabilities
2. Governance
Board Diversity
43
3.2 xiii. f.
Salary gap by gender
2. Governance
Board Diversity
43
3.3
Directors’ Committee
-
-
-
3.3 i.
Description of the role and functions of
the Directors' Committee
2. Governance
Role of the Directors’ Committee
54-55
3.3 ii.
Identification of the members of the
Directors' Committee
2. Governance
Structure of Directors’ Committee
54
3.3 iii.
Directors’ Committee compensation
2. Governance
Remuneration of the Board of
Directors and the Directors'
Committee
57-58
3.3 iv.
Identification of the main activities of
the Directors' Committee
5. Other corporate
information
Annual Management Report of the
Directors´ Committee
312-315
370
Integrated Annual Report Enel Chile 2023
Code NCG
N°461
Request
Chapter
Section
Page
3.3 v.
Policies for contracting advisory
services and expenses of the Directors'
Committee
2. Governance
Policies for Hiring Directors'
Committee Consultants
55
3.3 vi.
Frequency with which the Directors'
Committee meets with the Risk, Internal
Audit and External Audit units
2. Governance
Directors’ Committee Meetings
56
3.3 vii.
Periodicity with which each committee
reports to the Board
2. Governance
Role of the Directors’ Committee
54
3.4
Key executives
-
-
-
3.4 i.
Basic information of each executive
2. Governance
Enel Chile's Senior Executives
60
3.4 ii.
Comparative compensation of
executives
2. Governance
Remuneration of Senior
Executives
62-63
3.4 iii.
Compensation plans or special benefits
2. Governance
Remuneration of Senior
Executives
62-63
3.4 iv.
Percentage ownership interest in the
issuer held by executives and directors
2. Governance
Ownership in the Company of
Directors and Chief Executive
Officers
37
3.5
Adherence to national or international
codes
2. Governance
Governance Framework
38
3.6
Risk management
-
-
-
3.6 i.
Board of Directors guidelines on risk
management policies
3. Strategy and risk
management
The Risk Governance Model
118-123
3.6 ii.
Risks and opportunities
3. Strategy and risk
management
Classification of risks
124-137
3.6 ii. a.
Risks and opportunities inherent in the
entity's activities
3. Strategy and risk
management
Classification of risks
124-137
3.6 ii. b.
Information security risks
3. Strategy and risk
management
Digital Technology Risks; Personal
Data Protection
130-131; 133
3.6 ii. c.
Risks related to free competition
3. Strategy and risk
management
Risks related to antitrust
regulation
134
3.6 ii. d.
Risks related to the health and safety of
consumers
3. Strategy and risk
management
Operating Risks
134-137
3.6 ii. e.
Other risks and opportunities derived
from the operations of the entity
3. Strategy and risk
management
Operating Risks
134-137
3.6 iii.
Detection and prioritization of risks
3. Strategy and risk
management
The Risk Governance Model
119-120
3.6 iv.
Directors and senior management in
the detection, evaluation, management
and monitoring of risks
3. Strategy and risk
management
Internal Control and Risk
Management System
121-123
3.6 v.
Risk Management Unit
3. Strategy and risk
management
Internal Control and Risk
Management System
121-123
3.6 vi.
Internal audit unit
3. Strategy and risk
management
Internal Control and Risk
Management System
121-123
3.6 vii.
Code of Ethics
2. Governance
Code of Ethics
71
3.6 viii.
Information dissemination and training
programs on risk management
3. Strategy and risk
management
Risk Training
137
3.6 ix.
Complaints channel for staff,
shareholders, customers and suppliers
2. Governance
Ethics Channel
72-73
371
Annexes
6 Main indicators
7 Annexes
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
Code NCG
N°461
Request
Chapter
Section
Page
3.6 x.
Succession plan procedures
2. Governance
CEO and Senior Executive
Replacement Procedure
62
4. Enel Chile´s business
and management 2023
Succession and handover plan
276
3.6 xi.
Procedures for review of salary
structures by the Board of Directors
2. Governance
Review of executive team salary
structures
61
3.6 xii.
Procedures for approval of salary
structures by shareholders
2. Governance
Review of executive team salary
structures
61
3.6 xiii.
Crime prevention model in accordance
with Law No. 20,393
2. Governance
Criminal Risk Prevention Model
75
3.7
Relationship with stakeholders and the
general public
-
-
-
3.7 i.
Unit of relations with interest groups
and press media
2. Governance
Relationship Between the
Company, Shareholders, and the
General Public
64-69
3.7 ii.
Continuous improvement procedure in
disclosure dissemination processes
2. Governance
Relationship Between the
Company, Shareholders, and the
General Public
64-69
3.7 iii.
Procedure for shareholders to find
out about the diversity of abilities of
candidates for directors
2. Governance
Information for Shareholders
64-65
3.7 iv.
Remote voting mechanism for
shareholders
2. Governance
Information for Shareholders
64
4
Strategy
4.1
Time horizons
3. Strategy and risk
management
Enel Chile´s Strategy
88-100
4.2
Strategic objectives
3. Strategy and risk
management
Enel Chile´s Strategy
88-100
4.3
Investment plans
3. Strategy and risk
management
2024-2026 Consolidated
Investment Plan
97
4. Enel Chile´s business
and management 2023
Relevant investments associated
with the strategic plan
235-240
5
People
5.1
Workforce
-
-
-
5.1.1
Number of persons by gender
6. Main indicators
Number of people by gender
348
5.1.2
Number of persons by nationality
6. Main indicators
Number of people by nationality
349
5.1.3
Number of persons by age group
6. Main indicators
Number of people by age range
350
5.1.4
Number of persons by years of service
6. Main indicators
Number of people by seniority
351
5.1.5
Number of persons with disabilities
6. Main indicators
Number of people with disabilities
351
5.2
Labor formality
6. Main indicators
Type of contracts
352
5.3
Labor adaptability
6. Main indicators
Work Flexibility
352
5.4
Pay equity by gender
-
-
-
5.4.1
Equity Policy
4. Enel Chile´s business
and management 2023
Pay Equity
277
5.4.2
Wage gap
6. Main indicators
Pay Equity
352
5.5
Workplace and sexual harassment
2. Governance
Workplace and Sexual
Harassment; 2023 Training
72, 79
5.6
Health and safety
4. Enel Chile´s business
and management 2023
Health and Safety
279-282
6. Main indicators
Work Safety
352
372
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5.7
Parental leave
4. Enel Chile´s business
and management 2023
Maternity Leave and Parenting
Program
272
6. Main indicators
Maternity leave
353
5.8
Training and benefits
-
-
-
5.8 i.
Total amount of resources allocated to
training
4. Enel Chile´s business
and management 2023
Training and development
274
5.8 ii.
Total number of trained personnel
4. Enel Chile´s business
and management 2023
Training and development
274
5.8 iii.
Average annual training hours
6. Main indicators
Training
353
5.8 iv.
Identification of the subjects that the
trainings addressed
4. Enel Chile´s business
and management 2023
Training and development
274
5.8 iv.
Description of the benefits and
dependence on the employment
relationship
4. Enel Chile´s business
and management 2023
Benefits
272-273
5.9
Subcontracting policy
4. Enel Chile´s business
and management 2023
Subcontracting policy
292-293
6
Business model
6.1
Industrial sector
4. Enel Chile´s business
and management 2023
Electricity Industry Structure and
Regulatory Framework
222-228
6.1 i.
Nature of the entity's products and/or
services
4. Enel Chile´s business
and management 2023
Enel Chile´s Business Model
184-185
6.1 ii.
Competition faced by the entity in the
industrial sector
4. Enel Chile´s business
and management 2023
Description of Enel Chile´s
Business
186-217
6.1 iii.
Legal framework that regulates the
industry
4. Enel Chile´s business
and management 2023
Electricity Industry Structure and
Regulatory Framework
222-228
6.1 iv.
National or foreign regulatory entities
with supervisory powers
4. Enel Chile´s business
and management 2023
Principal Regulatory Authorities
226
6.1 v.
Main stakeholders that have been
identified
3. Strategy and risk
management
Stakeholders and Material Issues
104-117
6.1 vi.
Affiliation to associations and other
organizations
2. Governance
Membership in guilds,
associations, and other
organizations
68-69
6.2
Business
4. Enel Chile´s business
and management 2023
Description of Enel Chile´s
Business
186-217
6.2 i.
Main goods produced and/or services
provided and the main markets
4. Enel Chile´s business
and management 2023
Description of Enel Chile´s
Business
186-217
6.2 ii.
Sales channels and distribution
methods
4. Enel Chile´s business
and management 2023
Description of Enel Chile´s
Business
186-217
6.2 iii.
Number of suppliers that individually
represent at least 10% of total
purchases
4. Enel Chile´s business
and management 2023
Supplier Concentration
294
6.2 iv.
Number of clients that individually
concentrate at least 10% of the income
of the segment
4. Enel Chile´s business
and management 2023
Customer Concentration by
Business Segment
221
6.2 v.
Main brands used in the
commercialization of goods and
services
5. Other corporate
information
Trademarks
333
6.2 vi.
Entity-owned patents
N/A
N/A
N/A
6.2 vii.
Main licences, franchises, royalties and/
or concessions owned by the entity
5. Other corporate
information
Properties and Facilities;
Concessions
329-333
6.2 viii.
Other factors of the external
environment that are relevant to the
development of the entity's business
5. Other corporate
information
Risk Factors
316-328
373
Annexes
6 Main indicators
7 Annexes
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
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6.3
Stakeholders
3. Strategy and risk
management
Stakeholders and Material Issues
104-117
2. Governance
Membership in guilds,
associations, and other
organizations
68-69
6.4
Properties and facilities
5. Other corporate
information
Properties and Facilities
329-332
6.4 i.
Most relevant characteristics of the
main properties
5. Other corporate
information
Properties and Facilities
329-332
6.4 ii.
Concession areas and/or the lands it
owns (for natural resource extraction
companies)
N/A
N/A
N/A
6.4 iii.
Identify whether the entity is the owner
or lessee of such facilities
5. Other corporate
information
Properties and Facilities
329-332
6.5
Subsidiaries, associates and
investments in other companies
-
-
-
6.5.1
Subsidiaries and associates
-
-
-
6.5.1 i.
Individualization, domicile and legal
nature
5. Other corporate
information
Identification of subsidiaries and
associates
338-343
6.5.1 ii.
Subscribed and paid capital
5. Other corporate
information
Identification of subsidiaries and
associates
338-343
6.5.1 iii.
Corporate purpose and clear indication
of the activities it develops
5. Other corporate
information
Identification of subsidiaries and
associates
338-343
6.5.1 iv.
Name and surname of the director(s)
and the chief executive officer
5. Other corporate
information
Identification of subsidiaries and
associates
338-343
6.5.1 v.
Current percentage of participation of
the parent company or investing entity
in the capital of the subsidiary and
variations
5. Other corporate
information
Direct and Indirect Participation of
Enel Chile
334
6.5.1 vi.
Percentage that represents the
investment in each subsidiary or
associate over the total individual assets
of the parent company
5. Other corporate
information
Direct and Indirect Participation of
Enel Chile
334
6.5.1 vii.
Identification of the Director, chief
executive officer or main executives of
the parent who have positions in the
subsidiary
5. Other corporate
information
Identification of subsidiaries and
associates
338-343
6.5.1 viii.
Description of commercial relations
with subsidiaries during the year
5. Other corporate
information
Identification of subsidiaries and
associates
338-343
6.5.1 ix.
Concise list of the acts and contracts
entered into with the subsidiaries
5. Other corporate
information
Identification of subsidiaries and
associates
338-343
6.5.1 x.
Schematic table showing the direct
and indirect ownership relationships
between the parent company and the
subsidiaries
5. Other corporate
information
Enel Chile's corporate network
336-337
6.5.2
Investment in other companies
-
-
-
6.5.2 i.
Individualization of them and legal
nature
5. Other corporate
information
Direct and Indirect Participation of
Enel Chile
334
6.5.2 ii.
Participation percentage
5. Other corporate
information
Direct and Indirect Participation of
Enel Chile
334
6.5.2 iii.
Description of the main activities
carried out
5. Other corporate
information
Direct and Indirect Participation of
Enel Chile
334
6.5.2 iv.
Percentage of the total individual assets
of the company represented by these
investments
5. Other corporate
information
Direct and Indirect Participation of
Enel Chile
334
374
Integrated Annual Report Enel Chile 2023
Code NCG
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Chapter
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7
Supplier management
7.1
Supplier payment policy
4. Enel Chile´s business
and management 2023
Supplier Payment Policy
294
7.1 i.
Number of Invoices paid
6. Main indicators
Payment to Suppliers
361
7.1 ii.
Total amount
6. Main indicators
Payment to Suppliers
361
7.1 iii.
Total amount interest for late payment
of invoices
6. Main indicators
Payment to Suppliers
361
7.1 iv.
Number of suppliers
6. Main indicators
Payment to Suppliers
361
7.1 v.
Number of agreements registered
in the Register of Agreements with
Exceptional Payment Term
4. Enel Chile´s business
and management 2023
Agreements with Exceptional
Payment Terms
294
7.2
Supplier evaluation
4. Enel Chile´s business
and management 2023
Supplier Management and
Qualification
288-290
8
Indicators
8.1
Legal and regulatory compliance
-
-
-
8.1.1
Regarding customers
6. Main indicators
Enforceable penalties
346-347
8.1.2
Regarding personnel
6. Main indicators
Enforceable penalties
346-347
8.1.3
Regarding the environment
6. Main indicators
Enforceable penalties
346-347
8.1.4
Regarding free competition
6. Main indicators
Enforceable penalties
346-347
8.1.5
Others
6. Main indicators
Enforceable penalties
346-347
8.2
Sustainability indicators by type of
industry
6. Main indicators
Sustainability indicators
355-360
9
Relevant or essential facts
5. Other corporate
information
Summary of Significant Events
302-303
10
Comments from shareholders and the
directors' committee
2. Governance
Summary of comments and
proposals from shareholders and
the Directors' Committee
57
11
Financial reports
7. Annexes
Publication of Consolidated
Financial Statement
367
375
Annexes
6 Main indicators
7 Annexes
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group
TCFD CONTENTS
INDEX
Issue
Recommended disclosures by the TCFD (Task Force
on Climate-related Financial Disclosures)
Sections of this Report in which the
recommendation is reported
Governance
Report
on
the
organization's
management of climate-related risks
and opportunities
a. Board of Directors Supervision of the climate risk and
opportunity
b. Role in management
Zero Emissions Ambition Chapter:
• Governance for climate change
• Corporate governance
• Structure
• Incentive system for climate change
• Strategy to address climate change
Other chapters:
• Corporate governance system
Report the current and potential
impacts
of
climate
risks
and
opportunities on the organization's
business, strategy, and financial
planning where this information is
material.
a. Climate-related risks and opportunities in the short,
medium, and long term
b. Impact on business strategy and financial planning
c. Resilience in climate strategy and planning
scenarios, including two °C or less
Zero Emissions Ambition Chapter:
• Strategy to address climate change
• Key risks and opportunities related to
climate change
• Impact on change Climate Change in 2023
• Transition scenarios Energy & Climate
• Identifying, evaluating, and managing Risks
in relation to physical phenomena
• Identifying, evaluating, and managing Risks
and Opportunities related with the transition
phenomena
Other chapters:
• Enel Chile's strategy
Risk Management
Report
how
the
organization
identifies, assesses, and manages
risks related to climate change.
a. Identification and assessment of climate risks
b. Climate risk management
c. Integration into global risk management
Chapter Zero Emissions Ambition:
• Energy and climate change transition
scenarios
• Identifying, assessing, and managing risks
and opportunities related to transition
phenomena.
• Identifying, evaluating, and managing risks
in relation to physical phenomena.
Other chapters:
• Risk management.
Metrics & Goals
Report the metrics and targets used
to evaluate and manage relevant risks
and opportunities related to climate
change where this information is
material.
a. Report the metrics and targets used to evaluate
and manage relevant risks and opportunities
related to climate change where this information is
material.
Chapter Zero Emissions Ambition:
• Emissions
• Metrics and goals
Other chapters:
• Description of Enel Chile's business
• Protection and development of natural
capital
• Sustainability Indicators - SASB
As an example of Enel Chile's commitment in the field of disclosure related to climate change, the following index is developed,
which shows the alignment in the Company's reportability on climate-related issues, with the Task Force on Climate-related
Financial Disclosures (TCFD) which, in June 2017, published specific recommendations for reporting the voluntary financial
impact of climate risks.
376
Integrated Annual Report Enel Chile 2023
377
Annexes
6 Main indicators
7 Annexes
5 Other Corporate
Information
4 Enel Chile's Business and
Management 2023
3 Strategy and Risk
Management
2 Governance
1 Enel Chile Group