INTEGRATED ANNUAL REPORT
ENEL CHILE 2024
Build the
FUTURE through
SUSTAINABLE
POWER.
2
Beyond Reports: Enel’s Graphic Journey to a Sustainable Tomorrow
The graphic design of Enel’s corporate reporting project powerfully reflects our commitment
to building a better future.
The design featured in this publication underscores our strong commitment to translating
our “Purpose—Build the future through sustainable power” into concrete actions.
Specifically, “we are dedicated to actively shaping a better tomorrow by reducing
environmental impact through clean, innovative, and responsible energy solutions for
future generations”.
Our visual narrative is crafted to express Enel’s commitment to our long term aim and how
we embody our core values: trust, innovation, flexibility, respect, and proactivity. We build
trust within our teams and with our stakeholders through clear communication and a focus
on our customers. By fostering curiosity and a practical approach, we drive innovation to
meet changing needs and create sustainable solutions. Our ability to adapt enables us to
seize new opportunities in a rapidly changing world, while our respect for individuality and
inclusivity fosters teamwork. Together, we work diligently to achieve results with integrity
and responsibility, shaping a sustainable future.
As a result, every element of our corporate reporting resonates with Enel’s commitment
and core values, creating a narrative designed to inspire others to join us on our journey
toward a sustainable future.
INTEGRATED ANNUAL REPORT
ENEL CHILE 2024
PURPOSE
VISION
Drive
electrification,
fulfilling
people’s needs
and shaping a
better world.
Build
the future
through
sustainable
power
VALUES
POSITIONING
Trust
Innovation
Proactivity
Respect
Flexibility
Your energy choices,
our responsibility.
Every day, powered by clean energy.
6
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Letter to Shareholders and Stakeholders
Dear Shareholders,
We present the Integrated Report and the Consolidated Financial Statements for 2024, which highlight Enel Chile's
key milestones and achievements this year and reflect the Company's leadership in the energy market.
2024 has been a particularly challenging year for our business across all its lines of action. However, we continue to
advance with hard work toward our electrification goals, providing the country with clean energy and contributing
significantly to the carbon neutrality target that Chile has set for 2050. Through innovation, technology, and
leadership, we have expanded our renewable capacity to energize consumption in homes, businesses, industries,
and commerce.
Undoubtedly, we stand at a crossroads in energy distribution. Chile's energy demand is projected to increase by
41% by 2035. To meet this demand, it is essential to strengthen the grids and enhance their resilience. Achieving
this requires reforming the distribution regulations to encourage and reward investments necessary for enabling
the energy transition and preparing our grids for climate change impacts, which are becoming increasingly
frequent. We must reinforce the critical infrastructure required to ensure a secure energy supply with the quality
that the entire country deserves.
In the last five years, Chile and the world have faced important difficulties. A pandemic, two wars, and local conflicts
have destabilized the planet and had far-reaching consequences. In Chile's energy sector, authorities implemented
the PEC tariff stabilization mechanism three times in successive processes, which seriously impacted generation
companies and caused a substantial drop in their cash flow.
Marcelo Castillo
Chairman of the Board of
Directors of Enel Chile
Giuseppe Turchiarelli
CEO of Enel Chile
LETTER TO
SHAREHOLDERS
AND STAKEHOLDERS
7
Letter to Shareholders and Stakeholders
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
We face significant challenges in distribution. First, the profitability of this business has dropped dramatically.
Second, the VAD (Value Added Distribution) for 2020-2024 was delayed because the tariff scheduled for publication
in 2020 was not updated until June 2024, leading to uncertainty for distribution companies that, despite this,
continued to invest to maintain adequate service for customers.
Notwithstanding the above, 2024 was also a year of progress in regulatory issues. Thanks to the Tariff Stabilization
Law approved in April 2024, the regulated tariff could be updated, preventing a greater accumulation of accounts
receivable for generation companies. The execution of the PEC2 and PEC3 monetization with the Inter-American
Development Bank (IDB) permitted the recovery of a significant amount of funds, and a new Energy Transition Law
will accelerate the incorporation of renewable and clean energies into the system.
However, modernization of the regulatory distribution model is still pending. This misalignment with the electricity
industry's requirements hinders our ability to fulfill our shared ambition for improved service quality for our
customers in line with consumption electrification. We are confident that the technical evidence and the consensus
already expressed among various sector stakeholders—government officials, lower chamber parliamentarians,
senators, academia, and companies—will soon enable us to take the first step towards formally developing a new
regulatory model for Chile that meets the country's needs and aspirations.
In 2024, we relied on three strategic pillars to guide our work: (i) resilience, flexibility, and value creation; (ii) efficiency
and effectiveness; and (iii) financial and environmental sustainability. Keeping these principles in mind, we adapted
and maintained our flexibility and resilience, striving to swiftly address and navigate challenging, unpredictable,
and extraordinary situations.
In 2024, we also focused on meticulously managing our portfolio, emphasizing the most profitable and sustainable
projects and businesses. This led to positive results across all Company areas.
In the fiscal year 2024, the Company reported a net profit attributable to Enel Chile shareholders of Ch$145,112
million as of December, a decrease of 77.1% compared to 2023. This result was primarily due to the extraordinary
impact of discontinuing accounting hedges associated with revenues directly linked to the fluctuations of the US
dollar, stemming from the Company's change in functional currency and that of its subsidiary, Enel Generación
Chile.
However, if we isolate the effects related to the functional currency exchange along with the sale of Arcadia
Generación Solar, which was executed in Q4 2023, the Company's net profit increased by 22.4%, reaching Ch$
587,197 million by December 2024.
US$ 1.4 billions
EBITDA
8
In the generation business, Enel Chile, through its subsidiary for the development of renewable energies, Enel
Green Power Chile, has received official authorization from the National Electricity Coordinator to commence the
commercial operation of the La Cabaña wind farm, the El Manzano storage system (with a net installed capacity
of 67 MW 2 hours), and the Las Salinas photovoltaic park (205 MW of net installed capacity). These units operate
in conjunction with the Sierra Gorda Este wind farm (112 MW), making them one of the largest industrial-scale
hybrid renewable generation centers in the the country. Furthermore, in December, it obtained authorization for
Don Humberto ( net installed power of 81 MW for the solar section) the second industrial-scale hybrid renewable
energy generation unit within the Metropolitan Region, combining bifacial photovoltaic generation with an energy
storage system.
In the middle of the year, Enel Generación Chile and Enel X Chile presented their Energy Solutions Model for
institutions and companies, complemented by a series of energy efficiency technological alternatives for
customers across various industrial, commercial, and public institution production processes.
Enel Generación Chile also reached a significant milestone in 2024: after extensive efforts to ensure the necessary
safety conditions for the plant, its employees, and the system, the Los Cóndores Hydroelectric Power Plant team
(150 MW of net installed power) performed the first synchronization of the plant and completed the start-up plan
for its operation, which began commercial operation in March 2025.
In the distribution segment, the year was marked by a significant interruption of supply to our customers due
to an extreme, unprecedented, unpredictable, and irresistible weather event that occurred on August 1 and 2.
With winds reaching up to 124 kilometers per hour, this storm recorded the strongest gusts in the history of
the Metropolitan Region. As a result of the severe damage caused to the electricity distribution grid, many of
our customers unfortunately experienced prolonged power outages, despite our comprehensive efforts and
resources dedicated to the emergency, including international support from the Enel Group.
Immediately following the August weather event, Enel Distribución and Enel Colina voluntarily participated in a
Collective Voluntary Procedure (PVC) with the National Consumer Service (Sernac) to establish an extraordinary
compensation mechanism for the benefit of residential customers affected by prolonged supply cuts. Regarding
this matter, on February 4, 2025, an agreement was publicly announced that will benefit approximately 800,000
customers.
In December 2024, we initiated the progressive renewal of electricity meters for our customers registered
as electrodependent in their homes where they are hospitalized. This way, the Company stayed ahead of the
deadlines set in the Technical Standard for the Quality of Distribution Services, which mandates this replacement
starting in March 2026.
However, despite the unprecedented, irresistible, and unpredictable nature of the weather event that occurred
in August 2024 and the extraordinary efforts made by Enel Distribución, the Government is proceeding with the
study to evaluate the possible cessation of Enel Distribución's concession. We are convinced that any subsequent
process leading to a potential declaration of concession expiration would lack solid technical foundations. We
will demonstrate this, as we are confident, with appropriate support from various experts in the field, that Enel
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Letter to Shareholders and Stakeholders
9
Distribución has significantly fulfilled its obligations under the concession and regulations. Furthermore, this
situation arises from an unprecedented event that was not anticipated in electricity regulation.
Given climate change and its increasingly frequent and unusual effects, we have reinforced our commitment to
the safety and maintenance of electrical infrastructure by enhancing our plan for aerial inspections of nearly
2,500 kilometers of the electricity distribution grid. We are applying technology to assess the condition of our
medium and low voltage electricity distribution grids, allowing us to gather information that facilitates preventive
and corrective actions for the upcoming winter.
Regarding Enel X Chile, we strengthened our leadership in energy and sustainable mobility solutions with flagship
projects across various industries important to Chile, including agriculture and mining. In Santiago, we established
the first universal charging center in Latin America in a public space, situated in the commune of Las Condes.
Additionally, we put four public transport electroterminals into service, facilitating the arrival of over 250 electric
buses to the southern communes of Santiago (La Pintana, La Cisterna, El Bosque, San Bernardo), downtown
Coquimbo, downtown La Serena, and downtown Rancagua. This achievement not only ensures complete coverage
of Greater Santiago with this state-of-the-art, zero-emissions technology but also enables us to sustainably
promote quality electrification of transport throughout the country.
In the context of challenges and achievements, we highlight the valuable contribution of Enel Chile's new Board of
Directors, which took office in April 2024 and whose vision and experience are essential to further consolidating
our leadership in the energy transition. We also celebrate the relocation of our operations to the new corporate
building in the Tobalaba Urban Market (MUT), a space designed to enhance collaboration among our teams in
alignment with the values that define us as a Company.
Finally, we express our deep gratitude to our shareholders, employees, customers, and strategic partners. Their
commitment and trust inspire us to keep innovating and to stay at the forefront of the energy industry. We are
confident that, together, we can successfully tackle the challenges ahead and build an even stronger Enel Chile,
dedicated to our customers, to the country's progress, and the quality of life for future generations. We aim to
continue being a fundamental pillar in Chile's energy development as the leading Company in the country's energy
sector.
8.87 GW
Net installed capacity
Letter to Shareholders and Stakeholders
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
10
Marcelo Castillo Agurto
Chairman of the Board of Directors
BOARD OF
DIRECTORS
Structure and experience
of the Board of Directors
[NCG 461 - 3.2 i]
Profession
Civil, industrial, and electrical engineer, graduate of
Pontificia Universidad Católica de Chile.
Further studies
Master’s in business management, Universidad de
Navarra, Spain
Date of Joining the Board of Directors
April 29, 2024
Career
Marcelo Castillo Agurto has over 15 years of experience
teaching Energy Regulation and Management at
several colleges and business schools.
In his 34 years with Enel, Mr. Castillo has held various
positions, including duties in Latin America, Spain, Italy,
the United States, Africa, Asia, and the Middle East.
He joined Grupo Enel's commercial division in 1990,
eventually becoming deputy director of Endesa Chile
subsidiary. He went on to work for Endesa Chile as
Deputy Director of Energy Management, Deputy
Commercial Director, and Head of Analysis. In 2002,
he served as Deputy Business Director in the Endesa-
Morgan Stanley joint venture for the European power
and gas trading market and commerce. In 2002, he
accepted the job of Director and Vice President of
Regulation for Latin America, which he would hold for
over 11 years. In 2013, he moved from Italy to become
the head of International Regulatory and Antitrust
Affairs at Enel Grids, and a year later, he became the
head of Business Development, a post he maintained
until October 2023.
Marcelo Castillo Agurto is currently the Director of
Institutional Affairs & International Governance for
the Enel Group, Rest of the World, which covers 27
countries in the Americas, Africa, Asia, and Oceania.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Board of Directors
BOARD OF DIRECTORS
CHAIRMAN OF THE BOARD (1)
Marcelo Castillo Agurto
BOARD MEMBERS (2)
María Teresa Vial Álamos (3)
Pablo Cabrera Gaete (3)
Isabella Alessio
Salvatore Bernabei
Pablo Cruz Olivos (3)
(1) The Chairman of the Board of Directors may not serve on the
committee or its subcommittees unless he or she is an independ-
ent Director.
(2) On September 27. 2024. Ms. Monica Girardi resigned as a Director.
(3) Ms. María Teresa Vial is an independent Director in accordance
with the provisions of the New York Stock Exchange Listed Com-
pany Manual. Likewise. Mr. Pablo Cabrera and Pablo Cruz are in-
dependent Directors in accordance with Chilean regulations.
11
Isabella Alessio
Director
Pablo Cabrera Gaete
Director
Profession
Lawyer, graduate of Universidad La Sapienza, Rome,
Italy.
Further studies
Master in European Legislation
Date of Joining the Board of Directors
April 28, 2021
Career
Ms. Alessio began her professional career in 2000 at
the law firm Clifford Chance in Barcelona, Spain; in
2002, she moved to Rome to join 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 Enel S.p.A.'s global Infrastructure and Grid line.
She was appointed Manager of Legal and Corporate
Affairs for the Thermal Generation business line in
2017. Currently, Isabella is the Business to Consumer
manager at the Enel Group.
Profession
Lawyer, Bachelor of Legal and Social Sciences,
Pontificia Universidad Católica de Chile.
Further studies
Diplomat, Andres Bello Diplomatic Academy of Chile
(ACADE).
Date of Joining the Board of Directors
April 28, 2016
Career
Mr. Cabrera is a counselor at the Center for International
Studies of the Catholic University (CEIUC) and director
of the Andres Bello Chilean Diplomatic Academy
(2010-2014). He is also a counselor for the Asia-Pacific
Chamber of Commerce (APCC) and the Hong Kong
Latin American Business Association (HKLABA) and a
member of the Chilean Society of International Law.
In his 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 Military Order of Malta
(2007-2010); the Russian Federation (2000-2004);
the United Kingdom (1999-2000) and concurrent
ambassador to Albania, Ireland, Ukraine.
Board of Directors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
12
María Teresa Vial Álamos
Director
Salvatore Bernabei
Director
Profession
Industrial Engineer, graduate of Università degli
Studi di Roma Tor Vergata, Italia.
Further studies
Master’s in Net Business Administration from
Universidad Politécnica de Milán. He participated
in the INSEAD International Executive Program in
Singapore and Paris, the Leadership for Energy
Management Program at the SDA Bocconi School of
Management (Milan), and the IESE Business School in
Barcelona.
Date of Joining the Board of Directors
April 28, 2016
Career
In 1999, Mr. Bernabei became the Logistic Manager
for Enel Distribuzione at the Enel Group. He later
served as the Supply Chain Manager for geothermal
energy projects and the Project Manager for wind
energy projects in Italy. He served in a variety of
capacities at Enel Green Power, including Manager
for Safety and Environment in Iberia and Europe and
Engineering and Construction Manager for Iberia and
Latin America. Additionally, during his tenure in Iberia,
he served as the director of Renewables' Operations
and Maintenance. In 2013, he assumed the position of
Country Manager for Chile and the Andean Countries
at Enel Green Power. Subsequently, he was appointed
Head of Renewable Energies for Latin America. He
served as the Global Procurement Director at the Enel
Group from 2017 to 2020. He has served as the Head
of Enel Green Power and Thermal Generation since
2020.
Since October 2020, Mr. Bernabei has served as the
President of the Res4Africa Foundation (Renewable
Energy Solutions and Electrification for Africa).
Profession
Lawyer, graduate of Pontificia Universidad Católica de
Chile.
Further studies
Master’s in business law and a Diploma in
Construction, both from the University of the Andes.
Additionally, she holds a Diploma in Negotiation from
Pontificia Universidad Católica de Chile.
Date of Joining the Board of Directors
April 29, 2024
Career
Ms. Vial is the head of the Santiago Chamber of
Commerce and director of Artikos S.p.A. She is also a
member of the Directors' Network for Climate Action
at Chapter Zero Chile.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Board of Directors
13
Pablo Cruz Olivos
Director
Profession
Civil Engineer, graduate of Pontificia Universidad
Católica de Chile
Date of Joining the Board of Directors
April 29, 2024
Further Studies
Executive Business Management Program (PADE) at
Universidad de Los Andes and Leadership Courses
at Thunderbird University and the University of North
Carolina in the United States were pursued.
Career
During his tenure at ExxonMobil, Mr. Cruz held
executive, managerial, commercial, and operational
roles in various countries throughout Latin America
and the United States.
He served as an executive and director at Empresas
Relsa for over 11 years and subsequently at Arval Relsa.
He currently serves as a director of numerous private
companies and non-profit foundations, and he has
served as a consultant and advisor to companies in the
energy sector of Latin America for the development of
new businesses and asset acquisitions.
Board of Directors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
14
INDEX
DOCUMENT NAVIGATION GUIDE
To facilitate consultation, the
document and hyperlinks are
provided with interactions that allow
navigation.
Return to the main menu
Print
Back/Forward
1.
2.
3.
Letter to Shareholders
and Stakeholders
6
Board of Directors
10
Reporting standards
16
Connectivity matrix
18
ENEL CHILE GROUP
21
2024 Highlights
24
Value creation model
27
About Enel Chile
30
Historical overview
34
Principal 2024 milestones
35
GOVERNANCE
39
Shareholders
42
Enel Chile’s corporate
governance system
45
Board of Directors
48
Executive team
64
Relationship between the
Company, shareholders,
and community outreach
71
Value and ethics pillars
79
Tax Transparency
99
STRATEGY AND
RISK MANAGEMENT
103
Market context
106
Enel Chile’s Strategy
108
Risk management
137
Zero emissions ambition
163
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
15
4.
5.
6.
7.
ENEL CHILE'S BUSINESS AND
MANAGEMENT 2024
203
Enel Chile’s business model
206
Description of
Enel Chile's business
208
Performance of
the Enel Chile Group
243
Structure and regulatory
framework of the
electricity industry
246
Investments and
financial situation
253
Protection and development
of natural capital
266
People centricity
292
OTHER CORPORATE
INFORMATION
321
Articles of incorporation
of the company
324
Summary of significant
or relevant events
326
Information on shares
and other securities
329
Dividends
333
Annual management report
of the Directors’ Committee
336
Risk factors
340
Properties and facilities
354
Trademarks, patents,
and concessions
358
Subsidiaries, associates,
and joint ventures
359
MAIN INDICATORS
371
Legal and regulatory
compliance
374
Staff information
376
Board of Directors
384
Structure Sustainability
indicators
385
Other information
392
ANNEXES
395
Basic information
about the Company
398
Policies, principles, and codes
400
Publication of
Financial Statements
401
Disclaimer
402
NCG No.461 and No.519 index
403
TCFD context index
410
16
Reporting standards
Reportability overview
Enel Chile has adopted the Core&More reporting
approach, which is consistent with the Enel S.p.A.
Matrix. The Integrated Annual Report is the company's
fundamental document, and it is prepared in
accordance with General Standards No. 30 (as
amended by General Standard No. 519).
This document communicates how the Company
generates value for its shareholders and other
stakeholders and how it integrates sustainability into
the management of its businesses. Furthermore,
the Consolidated Financial Statements, prepared in
accordance with International Financial Reporting
Standards IFRS/IAS, are part of this reportability.
The Integrated Annual Report is based on the
transparency and accountability of information. It
communicates how the Company's governance,
strategy, risk management, and operations create
value for all stakeholders. Its objective is to tell the story
through a strategic-sustainable approach and present
the results and medium and long-term perspectives
of the sustainable and integrated business model
that, in recent years, has fostered value creation in the
context of the energy transition process.
Enel Chile's 2024 Integrated Annual Report aims to
offer a holistic view of the Company, its business model,
and the value creation process in the medium and
long term. It includes the qualitative and quantitative,
financial, and sustainability information considered
most relevant and is founded on a materiality
assessment, which also considers the expectations
and information needs of all stakeholders.
It is important to mention that the Company adheres
to the SASB Sustainability Accounting Standards
Board's Standards, Sustainable Industry Classification
SystemR (SICSR), and IF-EU Electric Utilities &
Power Generators, version 2023, in order to prepare
quantitative sustainability information in accordance
with the provisions of NCG No. 461 and NCG No. 519
of the Chilean Financial Market Commission (CMF).
The 2024 Integrated Annual Report consists of the
following sections:
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Reporting Standards
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
2024
This section focuses on
the description of the
Company’s businesses
and its financial non-
financial performance
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
indicatorsore
These sections present
the main sustainability
indicators (SASB) and
personnel, as well as other
corporate information of
the Company. required
by the Chilean Financial
Market Commission (CMF).
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
17
18
Connectivity matrix
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Connectivity matrix
Enel Chile's
Business
Enel Chile’s Value
Creation and
Business Model
Governance
Strategy
SDG
Generation
Generation
- Enel Chile’s
Shareholders
- Corporate
Governance System
- Governance
Structure
- Board of Directors
- Remuneration of
the Board of
Directors
- Executive Team
- Values and ethical
pillars
Long-term strategy
Achieving the goal of
zero CO2 emissions by
2040
I. Decarbonize Chile’s
energy matrix
II. Increase the
electrification
Strategic plan
- The three pillars
I. Resilience,
flexibility,and value
generation.
II. Efficiency and
effectiveness
III. Financial and
environmental
sustainability
Company strategy
update
Investments and
management focused on
value creation and risk
reduction
Distribution
and grids
Distribution
and grids
Enel X
Enel X
19
Connectivity matrix
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
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 risks
- Corporate governance
- Corporate culture and ethics
- Stakeholder commitment
Digital technology risks
- Cybersecurity
- Digitalization
- IT effectiveness
- Service continuity
Financial risks
- Interest rate
- Exchange rate
- Commoditie
- Credit and counterparty
- Liquidity
Compliance risks
- Personal data protecction
- Compliance with antitrust regulations
Operational risks
- Health and safety
- Environment
- Procurment, logistics and supply
chain
- People and organization
Value Generated and Distributed for
Stakeholders
GENERATION BUSINESS
Operations:
- Net installed capacity
- Generated energy
- Renewable installed capacity
- Sold energy
Performance:
- Operating income
- Operating costs
- Staff costs
- Other expenses by nature
- EBITDA
Innovation
Focus on People
Strategic plan 2025-2027:
- Resilience, flexibility and value
generation.
The company’s investments will
focus on the best opportunities in
terms of risk and return,
maintaining a flexible approach.
- Efficiency and effectiveness.
Remain the Group’s objective,
aiming to improve cash generation
and capital productivity.
- Financial and environmental
sustainability.
Remains at the core while the
financial structure is strengthened.
2025-2027 Investment plan
-An investment strategy of
approximately US$1.8 billion
-During this period. Enel Chile shall
prioritize the following:
> The consolidation of its
renewable energy portfolio;
> The strengthening of their
resilience; and finally
> The optimization of grid
operations.
2025-2027 Financial objetives
For the 2025-2027 triennium. the
following are planned
- Accumulated EBITDA of
approximately US$4.4 to US$4.6
billion.
- Accumulated CAPEX of
approximately US$1.8 billion
Value Generated and Distributed for
Stakeholders
DISTRIBUTION AND GRIDS BUSINESS
Operations:
- End users
- Distributed energy
- Energy losses
- SAIDI
- SAIFI
Performance:
- Operating income
- Operating costs
- Staff costs
- Other expenses by nature
- EBITDA
Innovation
Focus on People
Value Generated and Distributed for
Stakeholders
Enel X BUSINESS
Operations:
-Electric buses
-Charging points
-Heating replacement
-Electrification
-Demand Response
Innovation
Focus on People
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
21
CHAPTER 1
Enel Chile
GROUP
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
23
ENEL CHILE GROUP
1.
ENEL CHILE
GROUP
Highlights
Key operational and financial metrics 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 country's most
important electric holding Company, with
operations in the generation, distribution, and
other businesses related to the transformation
and expansion of the electric market.
24
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
2024 Highlights
2024 Highlights
8.87 GW
Net installed capacity
8.48 GW in 2023
Variation +4.6%
3.67 GW
Hydroelectric installed
capacity
3.51 GW in 2023
Variation +4.6%
3.04 GW
Wind, solar and geotermal
installed capacity
2.96 GW in 2023
Variation +2.7%
19.7 Twh
Total energy generated
from renewable sources
17.9 TWh in 2023
Variation +10.3%
78 %
Installed capacity of
renewable sources(1)
77 % in 2023
Variation +1.3 p.p.
1.96 GW
CCGT – Oil & Gas installed
capacity
1.98 GW in 2023
Variation -1.0%
0.20 GW
Batteries installed capacity
(BESS)
0.034 GW in 2023
Variation +488%
35.97 TWh
Total energy sold(2)
32.85 TWh in 2023
Variation +9.5%
2.38 millions tCO2eq
SCOPE 1 emissions
3.13 millions tCO2eq in 2023
Variation -24%
GENERATION BUSINESS
(1) Corresponds to Renewables + BESS (Battery Energy Storage System)
(2) Sales to free and regulated customers, not including cash sales.
25
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
2024 Highlights
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
14.8 TWh
Total energy distributed (1)
14.4 TWh in 2023
Variation +2.8%
2.16 millions
Customers in the grid
2.13 millions in 2023
Variation +1.4%
5.8 %
Energy losses
5.3 % in 2023
Variation +0.4 p.p.
1.3 times
SAIFI
1.25 times in 2023
Variation +4%
DISTRIBUTION AND GRIDS BUSINESS
(1) Energy distributed within the concession area.
(2) Cumulative figures.
(3) Considers electric buses supplied, managed, and operated by Enel X.
(4) Public and private charging points of Enel X Chile (hereinafter, “Enel X”) is a subsidiary of the Enel Chile Group, which is responsible for offering
different solutions to electrify homes, industrial processes, corporate fleets, and public transportation.
2,296 units
Electric buses (2.3)
2,195 units in 2023
Variation +4.6%
9 MW
Demand response
10 MW in 2023
Variation -10%
3,213 units
Charging points (2.4)
2,804 units in 2023
Variation +14.6%
58 thousand
E-Home services (3)
82 thousand in 2023
Variation -29.3%
ENEL X
26
(1) EBITDA. The 2024 result has been adjusted, for comparative purposes, by the extraordinary transaction related to the functional currency
change announced in November 2024.
(2) Result attributable to the owners of the parent company. The 2024 and 2023 results have been adjusted, for comparative purposes, by the
extraordinary transactions that occurred in both periods, related to the functional currency change announced in the fourth quarter of 2024
and the sale of Arcadia Generación Solar S.A. in 2023.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
2024 Highlights
Ch$ 12,719,898
millions
Total assets
Ch$ 11,833,721 in 2023
Variation +7.5%
Ch$ 1,341,325millions
EBITDA (1)
Ch$ 1,038,958 in 2023
Variation +29.1%
1.00 times
Liquidity ratio
0.86 in 2023
Variation +16.3%
1,952 peoples
Total workforce
2,077 in 2023
Variation -6.0%
Ch$ 7,393,518
millions
Total liability
Ch$ 7,072,835 in 2023
Variation +4.5%
Ch$ 587,197 millions
Net result (2)
Ch$ 479,588 in 2023
Variation +22.4%
1.39 times
Debt ratio
1.49 in 2023
Variation -6.7%
25.2 %
Porcentage of women
24.8 in 2023
Variation +1%
Ch$ 3.5
trillions
Net financial debt
Ch$ 3.3 in 2023
Variation +6.1%
Assets / Liabilities
Result
Indicators
People
27
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Value creation
model
Value creation process
The business model and the value creation process
are effectively communicated in terms of results and
short-, medium-, and long-term prospects through the
integrated presentation of financial and sustainability
information. In the context of evaluating the capacity
to generate value for all stakeholders, the management
of environmental, social, and economic factors is
becoming more critical.
The accompanying graphic representation illustrates
the value chain of the Enel Chile Group. It depicts the
primary inputs and their transformation into results
and value generated by the Company's operations and
business model.
Value creation model
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
28
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Value Creation and Business Model
Value creation and business model
RESOURCES
BUSINESS MODEL
Planet
3.04 million m3
Water consumed (80% Water
extraction in water stress areas)
People
People Enel Chile
1,952 Workers
25% Women in proportion to total
workers
21% Women in management positions
Prosperity
Financial Community
Ch$3.5 trillion Net financial debt
31% Sustainable finance
Ch$5.3 trillion Total equity
Ch$7.6 trillion Property, plant and
equipment
Ch$293 billion Intangible Assets
Ch$684 billion Capital Expenditure
(Capex) (*)
Customers
2.2 million Distribution customers
356 thousand Smart meters
Suppliers
563 Suppliers with active contracts
46% Contracts awarded to SMEs
Communities
Creation of long-term shared value, with
full respect for human rights.
Governance
principles
Strategic Pillars
Value chain
(*) The Capex figure represents the effective payments made in 2024.
RIS
KS
AN
D O
PP
OR
TU
NIT
IES
33% Of women on the Board of Directors
26 Complaints for alleged violations of the Code of Ethics
PURPOSE
Build
the future
through
sustainable
power
VALUES
Trust
Innovation
GENERATION
NET
INSTALLED
CAPACITY OF
RENEWABLE
ENERGY
78 %
INSTALLED
CAPACITY
8.9 GW
END USERS
2.16
million
DISTRIBUTION
NETWORK
18,004
km (MT/MT
lines)
GR
OU
P P
ER
FO
RM
AN
CE
EX
TE
RN
AL
E
NV
IR
ON
ME
NT
29
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Value Creation and Business Model
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
VISION
MISSION
Planet
2.4 million tCO2eq
Direct greenhouse gas emissions – Scope 1
Zero emissions ambition to 2040
People
57 Average training hours per worker
0.1 Accident rate
Prosperity
Financial Community
Ch$4.23 trillion Economic Value Distributed
by Enel Chile
Ch$35 billion Total taxes for the year
Ch$345 billion Dividends paid
Ch$3.99 trillion Total revenue
Ch$721 billion EBITDA(1)
Ch$145 billion Profit attributable to the
owners of the controlling company(2)
Customers
14.7 TWh Distributed energy (**)
150.3 minutes SAIDI
2,296 Electric Bus Units
Suppliers
100% Qualified suppliers evaluated under
sustainability criteria
Communities
Execution of community projects benefiting a
74,419 people in Chile
RESULTS
(1) Includes an extraordinary negative effect of Ch$620
billion due to the change in functional currency.
(2) Includes an extraordinary negative effect of Ch$442
billion due to the change in functional currency.
(**) Energy distributed within the concession area.
Drive
electrification,
fulfilling
people’s needs
and shaping a
better world.
• Deliver more and more
services to a greater number
of people.
• Boost the economies of
the communities where it
operates
• Expand access to energy
wherever possible.
1.
Resilience, flexibility
and value generation
3.
Pursue value creation
and financial strength
while addressing climate
challenges.
2.
Efficiency and
effectiveness to improve
capital productivity
Proactivity
Respect
Flexibility
PRODUCTS AND SERVICES
DISTRIBUTION
CHARGING POINTS
3.2 thousand
STR
ATE
GY
AN
D R
ISK
M
ANA
GE
NM
EN
T
GO
VER
NA
NC
E
30
About Enel Chile
The Enel Chile Group is the country's leading electricity
holding company, with operations in the generation,
distribution, grid, and other businesses related to
the transformation and expansion of the electricity
market.
The Company is part of Enel S.p.A., a multinational
electricity company and a leading integrated player in
the global power, gas, and renewable energy markets,
with a presence in more than 30 countries.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
About Enel Chile
Generación
Distribución
PRESENCE
2.2 million
Customers on the
network
11
Subsidiaries
8.9 GW
Net installed
capacity throughout
the country
1,952
Workers
A unique and
integrated
company driven by
value generation,
leader in energy
electrification and
decarbonization in
Chile
31
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Principal sustainability metrics and other recognitions
Enel Chile's sustainability vision directs its operations,
and it strengthens its dedication to international
benchmarks by engaging in multiple sustainability
indices.
Enel Chile emphasizes its dedication to sustainability
by engaging with leading global sustainability indices.
The indices assess performance in environmental,
social, and governance (ESG) areas while also
showcasing their leadership within the energy sector.
Evaluations carried out by independent rating
agencies employing stringent methodologies are
essential for establishing the Company's standing with
investors and stakeholders. The indices serve as a vital
instrument for pinpointing risks and opportunities
associated with sustainability, steering investment
choices towards more responsible and sustainable
frameworks.
The following are the results achieved by the Company
in terms of the leading metrics.
All indices have been thoroughly examined and revised as of February 13, 2025. Consequently, the images display the most current scores assigned
to Enel Chile based on the information sourced from each index's platforms.
About Enel Chile
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Scale from 0 to 100
2020
2021
2022
2023
2024
2023
2024
2020 2021 2022 2023 2024
2020 2021
2022
2023
2024
2020
2021
2022
2023
2024
88
88
88
86
80
2021 2022 2023
Scale from D- to A
Scale from C- to A+
A-
A-
B
C
2024
AA
A
A
A
AA
AAA
AA
Scale from CCC to AAA
Scale from 0 to 5
Scale from C- to A+
3.4
4.6
4.4
4.5
3.2
B-
B
B-
C
B
32
• 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.
Among more than 250 companies evaluated globally,
the Company is ranked eighth in the electrical
industry with a total of 80 points.
• FTSE4 GOOD: The London Stock Exchange's
Sustainability Index ranks the most successful
corporations according to their achievements in
areas such as governance, climate change, human
rights, and anti-corruption measures. Enel Chile
has been ranked in the Emerging Markets and Latin
America categories since 2018, earning a score of
4.5 out of 5. The last updated score reported to Enel
Chile by the FTSE Russell rater was in August 2023.
• MSCI Sustainability Indexes: Enel Chile has
obtained an AAA rating, positioning itself as a
leader in environmental, social, and governance
(ESG) performance. MSCI's ESG ratings assess how
companies manage financially relevant sustainability
risks and opportunities, identifying leaders and
laggards in each industry. These ratings, which range
from AAA to CCC, also apply to securities, loans,
funds, and countries, offering a comprehensive view
of sustainability performance.
• ISS ESG Enel Chile has been highlighted among
the best-performing companies among the 130
companies in the electricity sector worldwide
by the ISS ESG Corporate Rating. IN 2024, the
Company received the PRIME rating and B score
for its sustainability performance. This recognition
is the result of the good results obtained in a very
demanding evaluation of 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.
• Carbon Disclosure Project (CDP): In 2024, CDP
recognized Enel Chile with a level C in its fourth year
of voluntary reporting on climate change impacts.
CDP is a recognized non-profit organization that
evaluates performance in the fight against climate
change through its disclosure framework on a scale
from A to D.
• LSEG ESG (ex-Refinitiv): Enel Chile obtained
an A rating in the LSEG ESG index, standing out
for its outstanding performance in environmental,
social, and governance (ESG) criteria. This index
evaluates organizations' degree of commitment
to
sustainability,
transparency,
and
proactive
management of risks and opportunities in these
areas. The LSEG ESG analysis is based on a rigorous
evaluation of public data, addressing key aspects
such as action against climate change, respect for
human rights, the promotion of diversity, business
ethics, and governance. This recognition reaffirms
Enel Chile's leadership in the implementation of
sustainable and responsible practices.
• Morningstar Sustainalytics: Enel Chile obtained
a rating of 17.5 in its ESG risk assessment, positioning
it as a Company with low risk. This rating measures
the Company's exposure to environmental, social,
and governance (ESG) risks specific to its industry,
as well as its ability to manage them effectively. In
the Utilities sector, Enel Chile ranks 60th out of a
total of 647 companies evaluated. In the Electric
Utilities sub-industry, it ranks 16th out of 238
companies, standing out as a benchmark in ESG risk
management.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
About Enel Chile
33
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Other awards and commendations
Institution
Commendation
Enel Chile is acknowledged in the 2025 Sustainability Yearbook by S&P Global, distinguishing
itself as one of the top 10% of companies worldwide with the highest sustainability scores in its
sector. This prestigious commendation is a testament to our unwavering dedication to sustainable
practices and affirms our leadership in the movement toward a more environmentally conscious and
responsible future.
Recognized as a leading human rights Company in the industry. Evaluation of the progress in
implementing the tools and guidelines of the United Nations Guiding Principles on Business and
Human Rights among IPSA companies. Enel Chile scored 18 points out of a maximum of 24, securing
third place.
Santo Tomás University commended private companies for their sustainable practices and
highlighted their involvement in the institution's continuing education. In this context, Enel Chile's
leadership in the energy sector and its contributions were recognized, mainly through the "Energía
con Fuerza Local" project by Enel Distribution and Generation. This project stands out for its
implementation of collaborative training programs with Universidad Santo Tomás.
The Mutual de Seguridad CChC honored Enel Generación Chile in 2024 with the Certification Model
for Joint Committees on Hygiene and Safety (CPHS), awarding the Company two gold certifications
and five bronze certifications. These committees are essential to occupational risk management as
they are responsible for identifying issues and implementing solutions to prevent and control work-
related injuries and ailments.
Enel Chile has been recognized as a leader in sustainability, standing out for its active commitment
to the evaluated criteria: carbon neutrality, inclusion and diversity, nature and biodiversity, human
rights and due diligence, and transparency and reportability. The Company achieved the highest
score in carbon neutrality and inclusion and diversity, reflecting exceptional ambition, and achieved
significant ambition in the other evaluated criteria.
Enel Chile obtained the prestigious WELL Certification, an international standard that recognizes
how built environments influence the health and well-being of their occupants. Developed by the
International WELL Building Institute (IWBI), this certification evaluates key factors such as air and
water quality, nutrition, lighting, physical activity, thermal comfort, acoustics, the materials used,
mental health, and the sense of community, promoting healthier and more sustainable spaces.
Enel X Chile received the Emission Reduction Certificate from the Huella Chile Program 2023,
awarded in 2024, certifying its Carbon Footprint reduction. This achievement marks significant
progress within the framework of the Huella Chile Program of the Ministry of the Environment,
which aims to promote the calculation, reporting, and management of greenhouse gas (GHG)
emissions in both the public and private sectors. The program seeks to recognize entities that
voluntarily manage and reduce their GHG emissions, especially those that achieve emission
neutrality or reach excellence in climate management. With this certificate, Enel X emphasizes its
commitment to sustainability and climate action.
The Chilean Safety Association (ACHS) recognized Enel Distribución Chile as one of the top-
performing companies in occupational safety, achieving the milestone of "Zero Accidents". In
December 2024, the Company marked 30 consecutive months without accidents among both its
staff members and contractors, involving more than 3,800 workers who carry out over 1,200 daily
operations within the electrical distribution grid, encompassing both commercial and technical
processes.
This recognition is particularly significant as it is not associated with a formal category or application.
The ACHS granted it specifically due to the impact and importance of this achievement in the energy
industry, considering that:
• The measurement of workplace fatalities in Chile is limited to incidents involving direct employees
of the evaluated legal entity, excluding contractors who are more exposed to critical risks,
according to Chilean Law 16.744.
• Unprecedented in the industry, Enel Distribución achieved zero reportable accidents not only
among its internal staff but also among its contractors.
About Enel Chile
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
34
[NCG 461 - 2.2]
Historical overview
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Historical overview
Enel Chile S.A. was established following a
restructuring of Enersis S.A., which resulted in the
segmentation of its operations into two distinct
entities: Enersis Chile, designated as the sole
vehicle for managing the generation, transmission,
and distribution assets within Chile, and Enersis
Américas S.A., responsible for operations in other
countries across the region.
The restructuring of the Enersis group was
completed. The shareholders approved the
merger of Enersis Americas, Endesa Americas,
and Chilectra Americas. As a result of this merger,
Enersis Americas absorbed the operations of the
other two entities and was subsequently renamed
Enel Americas S.A. Following the decision, the
entities previously known as Enersis Chile, Endesa
Chile, and Chilectra were rebranded as Enel Chile,
Enel Generación Chile, and Enel Distribución Chile,
respectively. Upon completion of this process,
the responsibility for electricity generation
was assigned to Enel Chile via its subsidiary,
Enel Generación Chile. The above includes
the distribution and transmission operations
conducted via Enel Distribución Chile.
The proposal outlines the “Elqui Project,” which
involves a corporate reorganization strategy that
includes the absorption of Enel Green Power
Latin America S.A. Additionally, it included a Public
Offering of Shares (OPA) aimed at acquiring
100% of Enel Generación Chile, contingent upon
approval by the shareholders’ meetings.
The “Elqui Project” was carried out, resulting in
the acquisition of Enel Green Power Latin America
and an increase in the ownership stake in Enel
Generación Chile to 93.55%. This operation led
to the incorporation of 1,189 MW of installed
capacity in unconventional renewable energy
sources.
The establishment of Enel X Chile S.p.A. aimed
at developing and marketing innovative energy
solutions beyond the scope of the concessioned
electrical distribution.
The “Short Law” mandated the establishment of
a “Single Business” framework for distribution
companies. This regulatory change required Enel
Distribución Chile to reorganize its operations,
resulting in the separation of its distribution and
transmission energy sectors. Enel Distribución
Chile continued to prioritize its regulated
electricity distribution operations within its
designated concession area. Concurrently, the
newly established entity, Enel Transmisión Chile,
was dedicated to the transmission sector following
the operational division.
Aligned with its corporate streamlining strategy,
Empresa de Transmisión Chena S.A. was merged
with its parent Company, Enel Transmisión Chile.
Following this merger, Enel Transmisión Chile took
on all rights and obligations previously held by
Empresa de Transmisión Chena S.A.
Agreement to sell 99.09% of its stake in Enel
Transmisión Chile S.A. to Sociedad Transmisora
Metropolitana S.p.A. The transaction was carried
out through a takeover bid and became firm after
the approval of the National Economic Council’s
Office and compliance with the established
conditions.
Arcadia Generación Solar S.A. was no longer a
subsidiary of Enel Chile S.A. after Enel Chile sold
99.99% of its capital for US$556 million. The
execution of the Purchase and Sale positively
impacted Enel Chile’s consolidated net income of
approximately US$ 160 million agreement.
2016
2018
2021
2023
2015
2017
2020
2022
35
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Principal 2024 milestones
[NCG 461 - 2.2]
Recent storage initiatives
In 2024, a range of hybrid projects that integrate
renewable energy sources with advanced storage
systems began operations. In February, Enel Chile,
via its subsidiary focused on renewable energy
development, Enel Green Power Chile, obtained
authorization from the National Electric Coordinator
to kick off commercial operations at the La Cabaña
wind farm, located in the La Araucanía Region. The
new park generates an estimated 330 GWh each year,
sufficient to supply energy to approximately 123,000
households nationwide, thereby avoiding the release
of roughly 265,000 tons of CO2 into the atmosphere.
The project involved the installation of 22 Direct Drive
wind turbines, each with a nominal power output of 4.8
MW. The project additionally included the integration
of a Battery Energy Storage System (BESS) with a
capacity of 34 MW-2h.
In October, the storage system at the El Manzano
plant commenced its commercial operation. The
Company established its inaugural energy cluster
within the Metropolitan Region, facilitating the storage
of entirely renewable energy in proximity to significant
consumption hubs. The system integrates bifacial
photovoltaic generation technologies with storage
capabilities, boasting an installed capacity of 99 MW
and the potential to generate 226 GWh of entirely
clean energy annually.
Similarly, in December, the commercial operation of
a new hybrid plant commenced in the Metropolitan
Region: the Don Humberto project, which integrates
bifacial photovoltaic generation with an energy
storage system. The solar section, boasting a net
installed capacity of 81 MW, is projected to produce
around 188 GWh of entirely clean energy each year.
Las Salinas: Renewable energy from the
Norte Grande region of the country
In July, Enel Chile, via its subsidiary focused on
renewable energy development, Enel Green Power
Chile, launched commercial operations for stages 1,
2, and 3 of the Las Salinas photovoltaic park, situated
approximately 60 kilometers from Calama. The facility
comprises approximately 460,000 bifacial solar panels
with a net installed capacity of 205 MW. It operates
in conjunction with the Sierra Gorda Este wind farm,
which has a capacity of 112 MW. Together, these units
represent one of the largest hybrid renewable energy
generation centers on an industrial scale within the
country.
A high-tech corporate facility
On Monday, April 1, over 1,400 employees of the
leading electric holding Company started the phased
relocation to the new corporate facility that Enel Chile,
along with its subsidiaries and affiliated entities, will call
home in Mercado Urbano Tobalaba (MUT) located in Las
Condes. The architectural project is characterized by
high standards of quality and innovation, distinguishing
itself through its commitment to sustainability. The
Company upholds a clean energy agreement with
Enel Generación, which guarantees the efficient
use of renewable energy sources, including wind,
solar, and hydroelectric power. The facility includes
electric vehicle chargers, a direct connection to public
transportation, and a substantial bicycle parking area,
in addition to various other advanced amenities.
A climate challenge for electric
distribution
The month of August was marked by one of the
most devastating meteorological events in the
history of the country's electrical industry. In the
Metropolitan Region, wind speeds reached up to
124 km/h, leading to the fall of thousands of trees,
large branches, and utility poles. This event caused
damage to a substantial portion of the infrastructure
and grids operated by Enel Distribución, exceeding
the impact observed during the 2010 earthquake. In
response to the unprecedented and extraordinary
storm, the Company mobilized all available technical
resources to expedite service restoration, additionally
securing international support from the Enel Group.
Principal 2024 milestones
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
36
The Company is currently engaged in developing
more resilient grids to effectively address anomalous
weather phenomena.
Electrification of public transportation
In the reporting period, four new electric terminals
were implemented, facilitating the integration of over
250 electric buses into the municipalities of Santiago,
La Serena, and Rancagua. This initiative represents
a significant advancement towards increasing the
sustainability and efficiency of mass transportation
systems.
The
Rancagua
project
represents
a
collaborative effort with the Regional Government,
resulting in the integration of ten new electric buses
into the transportation system. This initiative is
supported by three 150 kWh power chargers installed
on-site.
Energy inclusion and more efficient
homes
The Aurora de Chile community, located within the
Cerro Navia district, served as the focal point for the
fourth version of Enel Distribución's Energy Inclusion
Program. This initiative is designed to improve energy
conditions in homes throughout the Metropolitan
Region while also promoting energy efficiency. This
year, 57 households benefited from the initiative,
which facilitated the installation of thermal solar
systems, the replacement of appliances, modifications
to hazardous electrical connections, the provision
of energy efficiency kits, and upgrades to heating
systems.
A multicultural school for Quepuca
Ralco
In May, a school for boys and girls was inaugurated
in the Alto Biobío district following nine years of
collaboration between Enel Generación and the villages
of Quepuca Ralco, El Avellano, Kepuka Ralko 2, El
Barco, and Guayalí. The school known as "Ñebun Degiñ
Pehuen," or "Avellana Volcan y Araucaria" in Spanish,
was collaboratively designed by the communities and
Enel Generación, integrating elements of Mapuche
Pehuenche cultural identity in both its architectural
design
and
educational
curriculum,
thereby
establishing it as a distinctive academic environment.
First Synchronization of the Los
Condores Hydroelectric Plant
The Los Cóndores hydropower plant commenced
its commissioning phase in the Maule Region in
September, following a decade of development, Due
to careful efforts to guarantee the required safety
conditions for the facility, its staff members, and the
system, the initial synchronization of the plant, with an
installed capacity of 150 MW, was finally completed.
The operational commissioning plan was finalized in
December, projecting an estimated yearly generation
of 542 GWh.
Provision of integrated energy
solutions for free customers
In an effort to expedite the energy transition across
multiple productive sectors in the southern region of
the country, including steel, fishing and aquaculture,
forestry, agriculture, and ports, Enel Generación and
Enel X collaboratively introduced a new integrated
supply model. This model is designed to enable
"electro-intensive" industries and institutions to
optimize their energy management, with a focus on
improving efficiency and sustainability within their
production processes. This initiative provides access to
green energy supply contracts, incorporating energy
efficiency solutions such as LED lighting, photovoltaic
systems, electromobility, and related infrastructure.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Principal 2024 milestones
37
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
39
CHAPTER 2
GOVERNANCE
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
41
GOVERNANCE
2.
GOVERNANCE
Corporate Governance
Enel Chile's corporate governance structure is a
fundamental element that ensures efficient and
successful management. It is also a mechanism
for monitoring the company's operations with
the objective of creating value for both its
shareholders and stakeholders.
Values and ethics pillars
Enel Chile, as a leader in the energy sector,
establishes rules and codes of conduct that
govern the behavior of all its members in their
relationship with shareholders, employees,
suppliers, customers, creditors, and authorities.
Human Rights
Respect for human rights is part of the very
foundation of sustainable progress.
42
Shareholders
Ownership and control structure
[NCG 461 - 2.3.1; 2.3.4 i; 2.3.4 iii c]
As of December 31, 2024, the Company's capital
is the sum of Ch$3,882,103,470,184, divided into
69,166,557,220 ordinary, registered shares, all of
the same series and with no par value, each share
representing one vote, and no privileged shares held
by the State.
Shareholder Name or Company Name
Number of shares
% share
Enel S.p.A. (1)
44,907,055,101
64.93%
Pension Fund Managers (AFPs)
5,072,096,223
7.33%
Foreign Investment Funds
11,099,140,101
16.05%
Stockbrokers, Insurance Companies, and Mutual Funds
4,213,708,242
6.09%
Citibank N.A. as per circular No. 1.375 of the S.V.S. (ADS) (2)
3,075,231,773
4.45%
Other 5,761 shareholders
799,325,779
1.16%
Total shares outstanding
69,166,557,219
100%
Remaining exchange shares
1
Total shares
69,166,557,220
100%
(1) Enel SpA's stake in Enel Chile considers 11,457,799 ADSs or the equivalent of 572,889,950 shares.
(2) S.V.S. Superintendence of Securities and Insurance, now the Chilean Financial Market Commission (CMF).
At the close of the 2024 fiscal year, the Company
had 5,894 shareholders, and the total number of
shares was fully subscribed and paid, with ownership
distributed as follows:
5,894
Shareholders
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Shareholders
ENEL CHILE SHAREHOLDERS
Enel S.p.A.
Pension
Funds
Institutional
Investors
Others
shareholders
ADR´s
64.9%
7.3%
4.4%
1.2%
22.1%
Market Capitalization as of December 31, 2024 amounted to
US$ 4.0 billion
43
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Majority shareholders
As of December 31, 2024, no shareholders other than the controller individually own 10% or more of the Company’s
capital or voting capital, nor can they appoint at least one member of the Company's board of directors or
management on their own or in a joint action agreement with other shareholders.
Name or Company Name
ID
Number of Shares
Participation
Enel S.p.A. (1)
59.243.980-8
44,907,055,101
64.93%
Citibank N.A. as per circular 1.375 S.V.S.
59.135.290-3
3,075,231,773
4.45%
Banco de Chile on behalf of State Street
97.004.000-5
3,171,782,106
4.59%
Banco de Chile on behalf of Non-Resident Third Parties
97.004.000-5
2,313,000,352
3.34%
Banco Santander on behalf of Foreign Investors
97.036.000-K
2,182,138,534
3.15%
Banco Santander Chile
97.036.000-K
1,121,614,861
1.62%
AFP Habitat S.A. for Pension Fund C
98.000.100-8
925,653,618
1.34%
Banchile Corredores de Bolsa S.A.
96.571.220-8
691,200,905
1.00%
JP Morgan Securities Limited
47.005.117-5
635,490,280
0.92%
AFP Provida S.A. for Pension Fund C
76.265.736-8
555,459,258
0.80%
Banco de Chile on behalf of Citi N.A. London client
97.004.000-5
534,488,320
0.77%
AFP Capital S.A. Pension Fund C
98.000.000-1
519,215,401
0.75%
Subtotal 12 largest shareholders
60,632,330,509
87.66%
Other 5,882 shareholders (2)
8,534,226,710
12.34%
Total 5,894 shareholders
69,166,557,219
100%
Twelve principal shareholders
(1) Enel SpA's stake in Enel Chile S.A. considers 11,457,799 ADSs or the equivalent of 572,889,950 shares.
(2) There are no shareholders belonging to the Company’s founding families or the Government or state entities that hold the Company’s shares
that exceed 5% of their ownership.
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, 2024, held 64.93% of the shares issued by the Company.
Enel S.p.A. Shareholder Structure
[NCG 461 - 2.3.3]
Shareholders
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Institutional
Investors
Ministerio
dell´Economia
e delle Finanze
Investors
retail
58.6%
17.8%
23.6%
44
Joint action covenants
At the end of the year, no members of the majority shareholders had a joint action covenant.
Most significant changes in ownership
The most significant changes that occurred in the fiscal year 2024 are detailed below:
Name or Company Name
ID
Number of
shares as of 31-
12-2024
Number of
shares as of 31-
12-2023
Percentage
change
Citibank N.A as per circular No. 1.375 S.V.S.
59.135.290-3
3,648,121,723
3,605,394,623
0.06%
Banco de Chile on behalf of State Street
97.004.000-5
3,171,782,106
3,056,652,111
0.17%
Banco de Chile on behalf of Non-Resident Third Parties
97.004.000-5
2,313,000,352
2,436,419,336
(0.18%)
Banco Santander on behalf of Foreign Investors
97.036.000-K
2,182,138,534
2,354,146,084
(0.25%)
Banco de Chile on behalf of Citi N.A. New York
customer
97.004.000-5
241,714,943
1,227,222,074
(1.42%)
AFP Habitat S.A.
98.000.100-8
1,520,299,102
1,141,378,143
0.55%
AFP Capital S.A.
98.000.000-1
980,597,965
1,105,129,214
(0.18%)
Banco de Chile on behalf of Citi N.A. London Client
97.004.000-5
534,488,320
1,092,949,102
(0.81%)
Banco Santander Chile
97.036.000-K
1,121,614,861
837,933,165
0.41%
AFP Provida S.A.
76.265.736-8
901,582,982
753,480,437
0.21%
AFP Cuprum S.A.
76.240.079-0
853,031,108
727,113,502
0.18%
Banchile C de B S A
96.571.220-8
691,200,905
636,148,826
0.08%
Ownership in the Company of directors and top executives
According to the shareholder register as of December 31, 2024, none of the current directors and none of the
principal executives held ownership, either directly or indirectly, in the Company1. Moreover, between January 1,
2024, and December 31, 2024, neither the current directors nor the principal executives conducted transactions
involving Enel Chile S.A. shares.
Related persons’ stock market transactions
In 2024, there were no stock market transactions of related persons.
1
The Bylaws do not stipulate that the general manager or the principal executives must own shares issued by Enel Chile S.A
[NCG 461 - 2.3.2]
[NCG 461 - 3.4 iv]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Shareholders
45
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Enel Chile’s corporate
governance system
Governance framework
The Company’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 Enel Chile is
committed, and the need to adequately consider all of
the interests involved in their development, as well as
the Company's Financial sustainability.
Although Enel Chile does not evaluate its Corporate
Governance system or formally adhere to a National
or International Code of Corporate Governance like
its parent Company, it does maintain Corporate
Governance Guidelines that, among other aspects,
establish
general
governance
principles.
This
document outlines the guidelines for implementing
corporate governance across the Company, aiming
for uniform application in all its subsidiary companies.
Its content aligns with international best practices
and is inspired by the principles of transparency and
fairness.
These Corporate Governance Guidelines acknowledge
the
benefits
of
coordinating
the
Company's
governance entities and bodies while also promoting
respect for the legal independence of subsidiary
companies within a framework designed to adequately
protect each company's social interests and the rights
of its stakeholders, particularly in transactions with
related parties and conflicts of interest. Additionally,
procedures and rules of conduct are established to
ensure directors' strict adherence to the duty of loyalty
and to prevent any situation that may compromise
such compliance.
The Corporate Governance system of Enel
S.p.A., the parent Company of Enel Chile,
complies with the principles established
in the Italian Corporate Governance Code,
which is reflected in the Enel Group's
Corporate Governance Guidelines and the
Recommendations on Corporate Governance
of the Enel Group's Listed Companies.
Ethics and integrity are
Enel Chile’s core values
1
The general principles of the Code of Ethics and the Human Rights Policy are inspired by the Universal Declaration of Human Rights of the
United Nations of 1948, the European Convention on Human Rights of 1950, and the fundamental conventions of the International Labour
Organization (ILO), among others.
[NCG 461 - 3.1 i; ii; vi; 3.5]
• Enel Chile has a Code of Ethics and a Human Rights Policy, which uphold a series
of principles1 that aim to create an environment free of barriers that inhibit the
diversity of abilities, visions, characteristics, and conditions within the Company.
With this objective, periodic training sessions and internal communication
campaigns are carried out. In 2024, the Company hired a law firm to prepare
an evaluation report on detecting and implementing potential improvements
or areas for strengthening the Board's functioning, including identifying
organizational, social, and cultural barriers.
Enel Chile’s Corporate Governance System
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
46
1
Article 31 of Law No. 18.046 refers to the administration of corporations..
• The Board of Directors has established a Permanent Training Procedure to
identify and reduce barriers to diverse visions within the organization and the
option to hire consultants. Furthermore, the Board of Directors integrates various
perspectives through its regular meetings with the Company's numerous
entities, which encompass a broad range of topics. Conversely, the Board of
Directors examines complaints received through the Ethics Channel biannually,
including those alleging violations of the principle of non-discrimination.
• Aware of the urgency of the climate crisis, Enel Chile adopted a Corporate
Governance System that is functional to the development of a business model
and a strategy centered on sharing value creation with its shareholders and
all relevant stakeholders, placing sustainability at the core of its corporate
culture. In particular, this System supervises the integration of sustainability into
corporate strategies throughout 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) disclosure of
sustainability information and related performance management, and (vi) review
of sustainability ratings and indices. All phases of this process are grounded in
respect for human rights as a fundamental element in the pursuit of sustainable
success.
Governance structure
In accordance with its Bylaws, Enel Chile is managed by a Board of Directors1 composed of seven members, who
may or may not be shareholders. The Board of Directors members are elected by the Ordinary Shareholders'
Meeting for three years and may be re-elected. The appointment of alternate directors is not contemplated.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Corporate Governance System
47
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Governance Structure
Shareholders meetings
It is the corporate body tasked with making
key decisions, including the appointment and
compensation of directors, the selection of external
auditors, risk evaluaiton, the approval of financial
reports, profit distribution, transactions involving
its own shares, changes to the bylaws, mergers and
divisions, and the issuance of shares, among other
responsibilities.
Shareholders convene in ordinary and extraordinary
meetings. The former are held annually within four
months following the issuance of the balance sheet.
The latter can occur at any time—when corporate
needs arise—to decide on matters stipulated by law or
the corporate bylaws.
2024 Ordinary Shareholders Meeting
Enel Chile's Annual Ordinary Shareholders' Meeting
was held on April 29, 2024, with a quorum of 93.36%.
The meeting was held in a hybrid format, meaning
both in-person and remotely, with a virtual platform for
Electronic Voting Service by DCV (Central Securities
Depository) provided by DCV Registro. This entity also
handles Enel Chile's Shareholder Registry.
2024 extraordinary Shareholders
Meeting
The Extraordinary Shareholders' Meeting was held on
April 29, 2024, following the Ordinary Shareholders'
Meeting. Its purpose was as follows:
• Amend Enel Chile S.A.’s Bylaws to adjust Article Four,
which is related to the corporate purpose;
• Grant
and
approve
a
consolidated
text
of
the Company's Bylaws that incorporates the
modification above; and
• Adopt the necessary agreements to carry out the
proposed statutory reform under the terms and
conditions approved by the Board and to grant
the powers deemed necessary, especially those to
legalize, materialize, and implement the agreements
adopted by said Board.
Enel Chile’s Corporate Governance System
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
SHAREHOLDERS’ MEETING
Board of Directors
Director´s Committe
External Audit Firm
KPMG Auditores Consultores Limitada
48
Board of Directors
[NCG 461 - 3.2 i; 3.2 xiii e; f]
The Ordinary Shareholders' Meeting held on April
29, 2024, decided to completely renew the Board of
Directors, which was nominated for a three-year term.
During the Board of Directors session on April 29,
2024, Mr. Marcelo Castillo Agurto was appointed as
president of the organization.
On September 27, 2024, Ms. Monica Girardi resigned
from her position as Director; consequently, the Board
of Directors will be renewed early at the Ordinary
Shareholders' Meeting scheduled for April 2025.
Under current legislation, none of the directors
simultaneously hold executive positions in the
Company.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Board of Directors
BOARD OF DIRECTORS
External Audit Firm
KPMG Auditores Consultores Limitada
CHAIRMAN OF THE BOARD (1)
Marcelo Castillo Agurto
BOARD MEMBERS (2)
María Teresa Vial Álamos (3)
Pablo Cabrera Gaete (3)
Isabella Alessio
Salvatore Bernabei
Pablo Cruz Olivos (3)
SECRETARY OF THE BOARD OF DIRECTORS
Josefa Rodriguez Benavente(4)
(1) The Chairman of the Board of Directors may not be a member
of the committee or its subcommittees unless he or she is an
independent board member.
(2) On 09/27/2024, Ms. Monica Girardi resigned as a Board Member.
(3) Ms. María Teresa Vial is an independent Board Member in
accordance with the provisions of the New York Stock Exchange
Listed Company Manual. Likewise, Mr. Pablo Cabrera and Pablo
Cruz are independent Board Members in accordance with Chilean
regulations.
(4) On 01/23/2025, the lawyer, Ms. Josefa Rodriguez Benavente, was
appointed Secretary of the Board of Directors.
49
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
According to Article 16 of the Bylaws, the amount
of directors' remuneration is determined annually
by the ordinary shareholders' meeting, with the
Chairman receiving double the salary of each director.
Consequently, the average and median compensation
for Directors and Female Directors stands at 100%,
as the principle of equal pay for all directors is clearly
defined, irrespective of gender or other classifications,
with the exception of the president's role. The
organization currently lacks substitute directors, and
all members are in a position of full capability.
Board of Directors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
BOARD DIVERSITY
MEN
4
5 in 2023
67%
71% in 2023
WOMEN
2
2 in 2023
33%
29% in 2023
AGE
NATIONALITY
SENIORITY
> 70 I 1
Chilean I 4
41 - 70 I 5
Italian I 2
17%
83%
67%
33%
more than 3 years I 3
less than 3 years I 3
50%
50%
GENDER
50
Independent Directors
Chilean Law Guidelines
The guidelines for identifying directors deemed non-independent are outlined in Article 50 bis of Law No.
18,046 on Corporations. The Corporations Regulations or the Financial Market Commission may establish
further criteria. According to the provided information, individuals who have faced any of the following
situations 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 significant nature and volume with the Company, other subsidiaries in the Group,
its controller, or any of its principal executives, or who have held positions as directors, managers,
administrators, principal executives, or advisors of these entities.
2. Those who have a kinship relationship up to the second degree of consanguinity or affinity with the
persons indicated in the preceding item.
3. Those who have served as directors, managers, administrators, or senior executives of nonprofit
organizations that have received significant contributions, aid, or donations from the individuals listed in
item 1.
4. Those who have been partners or shareholders owning or controlling, 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 noteworthy amounts, or conducted external audits, for the individuals
indicated in item 1.
5. Those who have been partners or shareholders owning or controlling, 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, Enel Chile´s independent directors are Messrs. Pablo Cabrera Gaete and Pablo Cruz
Olivos.
Board of Directors’ experience matrix
The Board of Directors has the necessary expertise and abilities to manage and operate the Company effectively.
[NCG 461 - 3.2 iv]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Board of Directors
EXPERIENCE OF THE BOARD OF DIRECTORS
Director
Marcelo Castillo Agurto
María Teresa Vial Álamos
Pedro Pablo Cabrera
Isabella Alessio
Pablo Cruz Olivos
Salvatore Bernabei
Energy
sector
Electrical
regulation
IT, Information
Security and
cybersecurity
Audit, finance
and risk
management
Finance
Corporate
governance
Environmental
issues and
climate
change
51
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Role, duties, and functioning of the Board of Directors
The Board of Directors
plays a central role in
corporate governance
• Pursuant to Law No. 18,046 on Corporations and the Company's Corporate
Bylaws, the Board of Directors holds extensive authority for both the ordinary
and extraordinary management of the Company, including the power to perform
all actions necessary to achieve the corporate purpose.
• The Board of Directors plays a vital role in corporate governance as it exercises
managerial authority and strategic control over the organization. The
framework for the evaluation and approval process encompasses the corporate
strategy, which includes the Investment and Business Plan. The Investment Plan
incorporates objectives related to energy transition, climate change mitigation,
and decision-making in human rights matters. Consideration is also given to
assessing critical issues that contribute to creating long-term shareholder
value, thus promoting a sustainable business model.
• The Board of Directors functions as the primary governing body tasked with
overseeing the identification, evaluation, management, mitigation, monitoring,
and communication of risks. This includes any risks that may impact the
Company's long-term sustainability, in line with the current Risk Control and
Management Policy, assessing the compatibility between these risks and the
established strategic objectives. These encompass the risks linked to climate
change and, more broadly, the risks that the Group's activities may pose to the
environment, society, workers, and respect for Human Rights.
• 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 related to sustainability performance in areas
such as a)environment, including climate change, biodiversity, and deforestation;
b) social factors, like safety, health, well-being, diversity and inclusion, human
rights, and workforce development; and c) governance, addressing trade
relations, supplier management, the ethics framework, and fair competition,
among others. Additionally, it delegates to the Directors’ Committee - primarily
composed of independents - the responsibility of supervising key sustainability
issues and managing this area through the quarterly presentation of results.
Board of Directors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
52
Board of Directors’ meeting
Meetings with the Risk Control area
The Board of Directors
meets quarterly with the
Risk Control Area
• The Board of Directors meets with Risk Management once a quarter to review,
among other aspects, the significant strategic risks, the key sources of risks, and
methodologies for identifying new risks, along with the likelihood and impact of
the most significant risks, their effect on operations, and their financial outcomes.
It also evaluates the recommendations and improvements that the unit deems
relevant for better managing the Company's risks and the contingency plans
developed to respond to critical events, such as ensuring the continuity of the
Board of Directors during crises. The Company's CEO is expected to attend
meetings held by the Board of Directors or those involving the Risk Control area.
The Board assesses and manages risks, including emerging risks, that could
negatively impact future results.
• The Board was presented with the main strategic risks for the 2024 period during
the session held on March 27, 2024. One of the objectives was to evaluate and
gain a detailed understanding of the current risk management practices. Given
the close alignment of the Company's purpose with the energy transition and
climate change impacts, these issues are incorporated into the Board's reviews
and risk management strategies. The primary strategic risks within the Risk Map
and the related mitigation measures were examined during the sessions on June
25, September 27, and December 17. The CEO of the Company participated in all
these sessions
Meetings 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 identified and those irregular situations that, by their nature, must be
reported to the relevant supervisory bodies or the Public Prosecutor's Office; (iii)
the recommendations and improvements that, in its view, would be appropriate
to implement to reduce the number of irregularities or instances of fraud; and (iv)
the effectiveness of the crime prevention model implemented by the Company,
providing an account of the management of the Crime Prevention Officer and
detailing the activities undertaken and those planned for the upcoming months.
The CEO is expected to attend meetings conducted by the Company's Board of
Directors or the Internal Audit department.
• In the meetings held in 2024, the main topics discussed were as follows: (i) during
the ordinary session on February 28, the Board reviewed the results of the 2023
The Board of Directors
meets at least quarterly
with the Internal Audit
Area
[NCG 461 - 3.2 vi]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Board of Directors
53
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
• Enel Chile has adopted the practice of conducting meetings with the Sustainable
Area Management at least quarterly. To fulfill this requirement, the Sustainability
Department provides quarterly reports to the Board of Directors detailing the
various business indicators used to assess sustainability performance, identified
according to the three-year Sustainability Plan. This also includes the evaluation
of public information based on Enel Chile’s standings in various sustainability
indices and ratings, such as DJSI, MSCI, FTSE4Good, and Sustainalytics, among
others. The CEO is expected to participate in meetings.
The Board of Directors
meets, at least quarterly,
with the Sustainability
Area Management
Internal Audit Plan for Enel Chile and its subsidiaries, the activities undertaken
for this purpose, and the 2024 Internal Audit Plan; (ii) in the ordinary sessions on
March 27, June 25, September 27, and December 17, the Board received updates
on the action plans formulated as a result of the internal audits, the internal audit
matters gathered from the corporate governance practices adopted by the
Company (NCG No. 461y NCG No. 519), and the report regarding the management
of the Company's Crime Prevention Officer; and (iii) in the session on July 24, the
activities for updating the Crime Risk Prevention Model were presented, which
incorporate aspects related to Law No. 21,595 on Economic Crimes that give rise
to the criminal liability of the legal entity.
The Board of Directors
meets quarterly with the
External Auditors
• The Board of Directors meets quarterly with the External Auditors. The CEO is
expected to attend these meetings, during which issues such as the external
audit program and its results, any discrepancies found in the audit regarding
accounting practices, administrative systems, internal auditing, and potential
conflicts of interest are discussed.
• In the meetings held in 2024, the main topics discussed included the following:
(i) the Company's external audit program or plan; (ii) any differences identified in
the external audit concerning accounting practices, administrative systems, and
internal audit; (iii) any serious deficiencies detected and irregular situations that,
by their nature, must be communicated to the appropriate supervisory bodies; (iv)
the outcomes of the annual external audit program; and (v) any potential conflicts
of interest that may arise in the relationship with the external audit firm or its
personnel, whether for providing other services to the Company or its business
group companies, or in other situations.
Meeting with the External Audit company
Meetings with the Sustainability area
Board of Directors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
54
Monitoring climate change risks
The Enel Group's "Climate Change Risks and
Opportunities" policy outlines a unified approach to
incorporating climate change issues and the energy
transition process into the Group's operations and
activities. This integration informs industrial and
strategic decisions aimed at enhancing business
resilience and fostering long-term sustainable value
creation in accordance with the adaptation and
mitigation strategy. The main stages addressed in the
policy are detailed 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 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 plans, risk management and
financing activities, engineering, and business
development.
In this regard, the Board of Directors of Enel Chile
evaluated the implementation of this Policy within the
Company and its subsidiaries, deciding to establish
regular monitoring and control sessions for climate
change risks and related issues. In 2024, meetings
were conducted with the risk and sustainability
department,
as
previously
mentioned,
where
the Board was updated on the primary risks and
indicators associated with climate change. Similarly,
the Company's CEO reported on scenarios and risks
tied to climate change, including the water crisis, on a
monthly basis in their accountability and management
report.
[NCG 461 - 3.2 vii]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Board of Directors
55
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Monitoring and control of issues relevant to stakeholders
The Board of Directors establishes the framework
for developing and maintaining relationships with
its stakeholders. The Company places stakeholders
at the center of its sustainable business model, and
based on their identification and the reasons for
their status, a methodology has been developed
to identify and prioritize the key issues for these
groups. The Board's periodic review of sustainability
priorities demonstrates the Company's commitment
to advancing the energy transition. These key issues
include, but are not limited to, health and safety, risks
and opportunities related to the impacts of climate
change, and promoting the Company's diversity and
inclusion agenda.
Enel Chile undertakes a materiality study each year,
which is applied at various stages to the primary
recognized stakeholder groups, as outlined in the
Stakeholder Group and Material Topics portion of this
Integrated Annual Report.
Monitoring social issues
Enel Chile’s Code of Ethics establishes equal
opportunities and prohibits arbitrary discrimination in
its personnel management, valuing each individual's
unique contributions. The Board of Directors oversees
the management practices in these areas and has,
therefore, approved the Diversity and Inclusion Policy
and the Human Rights Policy. In this domain, key
indicators have been defined and included in the
quarterly report provided by the Sustainability area to
the Board of Directors, where gender inclusion and
disability inclusion indicators are addressed.
Concerning the identification of new talent, the Board
of Directors agreed to implement training programs
Induction procedure
The Company implemented an Induction Procedure
for New Directors1, which establishes the procedures
for the induction of the Company's new directors in
matters considered necessary for the correct exercise
of their functions. This allows effective and informed
integration into the corporate business.
1
This Procedure is reviewed at least once a year to ensure that its terms and procedures are consistent with the objectives and responsibilities
of the Board.
[NCG 461 - 3.1 iii; 3.1 iv; 3.2 vii]
overseen by People and Organization Management
to discover and nurture emerging talents among the
Company's professionals. The goal is to enhance the
skills, knowledge, and experiences of Enel Chile's
professionals while fostering future leadership.
At the same time, the Directors' Committee conducts
semiannual analyses of complaints received through
the Ethics Channel, the treatment given to them,
and the procedures currently in effect. It is essential
to mention that the chairman of the Directors'
Committee has the authority to call an extraordinary
meeting of the committee if they believe the
complaint warrants it.
[NCG 461 - 3.2 vii]
This procedure establishes that the induction
program must address issues such as mission,
vision, the Group’s principles and corporate values,
business and strategic objectives, the Company’s
economic and financial situation, risks, including
those of sustainability, corporate governance, relevant
stakeholders, inclusion and diversity policies, among
others.
[NCG 461 - 3.2 v]
Board of Directors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
56
Documents given to
directors
• Directors have access to several documents, including the Articles of Association,
minutes from the Board of Directors and Directors’ Committee meetings, and,
for committee members, minutes from shareholders' meetings over the past
two years. They also have access to Significant Events, Sustainability Reports,
Audited Financial Statements, Quarterly Financial Statements, Risk Reports, and
the Human Rights Policy. Additionally, they receive manuals, policies, and other
documents that the Company has adopted for its effective operation, 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 Policy
Plan.
• Additionally, the new director receives the current legislation relevant to the
Company's business. They are provided with copies of Law No. 18,046 on
Corporations, the Regulation of Corporations, and Law No. 18,045 on the
Securities Market, along with other internal documents that outline the legal
provisions governing the duties and responsibilities of the Board of Directors of
a public entity corporation.
Meetings with different
management
• The Induction Procedure also involves a series of meetings with the Chairman
of the Board of Directors and representatives from various departments.
During these meetings, the business and key issues facing each department
are discussed. The new director can voice concerns and request additional
information if needed.
Actions related to the induction process carried out during the period
The Board of Directors was renewed in 2024; therefore, induction activities for new directors were conducted,
which included informational sessions and discussions with various departments of the Company. Additionally, all
Board members received training as part of the ongoing training process.
Field visits
The Board of Directors did not visit any of Enel Chile’s or its subsidiaries’ facilities in 2024.
Evaluation of the effectiveness of the Board of Directors
In 2024, the Board of Directors hired an external
expert to prepare a report aimed at identifying and
implementing potential improvements or areas for
strengthening Enel Chile’s Board of Directors based on
the practices recommended by the Financial Market
Commission.
Evaluation of the Board of Directors: In 2024,
the law firm Puelma y Cía. Abogados conducted
an assessment to identify and implement potential
improvements in the functioning of the Board of
Directors. This assessment was later presented to and
analyzed by the Board. Preparing this report involved
interviewing key staff members, including directors,
[NCG 461 - 3.2 viii]
[NCG 461 - 3.2 ix. c]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Board of Directors
57
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
the CEO, the Chief Officer of the Legal Area, the Internal
Audit Manager, and external auditors affiliated with
the Company. Their focus included the operational
dynamics of the Board of Directors, the organization
of meetings, and the discussions held during these
sessions, along with other relevant topics.
The Company lacks a formal evaluation process for
the Directors' Committee, relying instead on the
annual report concerning its management, which is
presented at the Ordinary Shareholders' Meeting and
incorporated into the Company's Annual Report.
Attendance at Board Meeting
Under the Company's Bylaws, the Board of Directors must meet at
least once a month and whenever the Company’s interests require it.
Concerning the minimum duration of meetings or the time dedicated
to the role of director, specific regulations are not necessary since,
according to Law No. 18.046 on Corporations, the commitment to
the functions of the director is governed by the standard of care and
diligence that individuals typically employ in their businesses.
The Company's management must provide directors with relevant
information on the issues to be discussed in each meeting at least three
days in advance, allowing them time to analyze these matters. Similarly,
the directors are continuously informed about the Company's events,
and when deemed necessary, they convene extraordinary sessions to
address issues that require prompt attention.
13
Sessions held
by the Board
of Directors in
2024
[NCG 461 - 3.1 vi; 3.2 ix. a; b]
[NCG 461 - 3.2 x]
The Board's organizational barrier detection
reduction and training
Enel Chile has implemented an adequate Corporate
Governance
Procedures
Program
that
permits
directors to receive the necessary training to
improve their skills in areas where they identify
specific weaknesses, including those associated with
organizational, social, or cultural barriers that may
inhibit the natural diversity of capabilities, visions,
characteristics, and conditions that would otherwise
be present in the Board of Directors if these barriers
did not exist.
The Board of Directors approves a program and
calendar for ongoing training and continuous
improvement each year, considering the suggestions
from the CEO and area managers who may be affected.
The training covers various subjects that equip
Directors with the necessary knowledge and skills to
fulfill their roles, including: market analysis relevant to
the Company’s operations; updates on regulatory and
organizational changes; key risks and management
tools, particularly concerning sustainability risks;
leading local and international practices in corporate
governance; understanding conflicts of interest
along with strategies to avoid and resolve them; and
applicable accounting principles for the Company.
In 2024, the directors received training on various
issues, including electro-mobility, Law No. 21,595
on economic crimes, artificial intelligence adoption,
macroeconomic vision for the Latin American region,
and free competition training.
Board of Directors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
58
Operational continuity plan
The Company has implemented 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 ensure that the ongoing improvement process for
the Board of Directors effectively meets the Company's
specific requirements, it does not explicitly consider
situations that may require changes in the operational
procedures of this governing body. Directors are
This system allows:
• Regardless of legal constraints concerning the content and deadlines for sending summonses, this system
provides access to the minutes or documents summarizing each subject to be discussed during the
session, along with any necessary background information for preparation.
• Access mentioned in the preceding paragraph is available at least five days before the corresponding
session; however, the established deadline is three days prior to the corresponding session.
• Access to the Company-implemented whistleblowing system is included.
• The final text of each meeting's minutes is accessible for consultation at the Board of Directors meeting in
the month following the approval and signing of the minutes.
• Additionally, it aims to achieve electronic/paperless management of all documentation distributed to the
Board members.
In 2024, 13 Board meetings were held, with an average attendance of 94%
by the Company’s directors. All of the sessions above were conducted in
a hybrid format at the company’s corporate headquarters.
[NCG 461 - 3.2 xii. a;b;c;d]
[NCG 461 - 3.2 xi]
Electronic dispatch and information system
The Board of Directors has implemented an Electronic Information and Dispatch System, which allows its members
to access the documentation related to the meetings securely, remotely, and at all times.
kept informed about developments that affect them
practically. Therefore, they can respond promptly
to emergencies by implementing any necessary
measures they find essential to address a specific
issue. In light of the applicable regulatory provisions,
the Board approved the use of technological tools
for directors who are not physically present in the
meeting room. To achieve this aim, technological
methods such as videoconferencing and telephone
conferences were deemed suitable for the situations
above. It is important to emphasize that these
strategies are effective when all directors, whether
in-person or remote, communicate continuously and
simultaneously with one another.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Board of Directors
59
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Directors’ Committee Structure for the last two years
Name
Title
Relation(1)
Start date
End date
Fernan Gazmuri Plaza
Chairman
Independent
4/28/2021
4/29/2024
Pablo Cabrera Gaete
Director
Independent
4/28/2021
4/29/2024
Luis Gonzalo Palacios Vásquez
Director
Independent
4/28/2021
4/29/2024
Members of the Directors’ Committee as of 31.12.2023
(1) Article 50 bis of Law No. 18,046 on Corporations states that public corporations meeting the specified requirements, like Enel Chile, must
appoint at least one independent director. Furthermore, according to Articles Twenty-Nine and Thirtieth of the Bylaws, provided the Company
is a duly registered securities issuer with the New York Stock Exchange (NYSE), the composition, operation, and powers of the Committee
of Directors will also be governed – in all matters not conflicting with Chilean legislation – by the mandatory provisions for Audit Committees
mandated by the Sarbanes-Oxley Act (SOX) of the United States, and thus all its members must be independent according to these criteria.
Name
Title
Relation(1)(2)
Start date
End Date
María Teresa Vial Álamos
Chairman
not independent
4/29/2024
-
Pablo Cabrera Gaete
Director
Independent
4/29/2024
-
Pablo Cruz Olivos
Director
Independent
4/29/2024
-
Members of the Directors’ Committee as of 31.12.2024
[NCG 461 - 3.2 iii]
[NCG 461 - 3.3 ii]
Hiring Board of Directors consultants
Currently, in situations where one or more directors
request the Board to consult with an expert on
accounting, tax, financial, or other matters, the se
lection of an advisor or advisors shall be conducted
in accordance with the voting quorum of the
organization. Managers evaluate various factors
when choosing advisors, including but not limited to
their professional experience, industry expertise, and
market reputation. The actions above are executed in
compliance with the stipulations outlined in Article 43
of Act No. 18.046 on Corporations and Regulation No.
80 of the corresponding Law. Moreover, if the external
advisor is a family member of the organization, Title XVI
of Act No. 18.046 on Corporations is strictly followed.
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.
In the 2024 and 2023 financial years, no consultancy
services were required by the Board of Directors.
Directors’ Committee
Enel Chile’s leadership and management draw inspiration from international best practices. As part of this framework,
the Directors’ Committee is focused on creating value for all shareholders in the medium and long term.
Directors’ Committee Structure
In an ordinary session of the Board of Directors held
on April 29, 2024, Mr. María Teresa Vial Álamos, Mr.
Pablo Cabrera Gaete, and Mr. Pablo Cruz Olivos were
appointed as members of the Board Committee. For its
part, the Company's Directors’ Committee appointed
Mrs. María Teresa Vial Álamos as the Chairperson of
said corporate body.
(2) Director María Teresa Vial Álamos is independent pursuant to the New York Stock Exchange Listed Company Manual. Pablo Cabrera and Pablo
Cruz are independent pursuant to Chilean regulations.
Board of Directors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
60
1
In accordance with the provisions of the Social Statutes, the Directors' Committee meetings shall be validly constituted by an absolute majority
of its members, and their resolutions shall be adopted by an absolute majority of the members present.
[NCG 461 - 3.3 i; vii]
[NCG 461 - 3.3 v]
Role of Directors’ Committee
The functions of this body include those specified in
Law No. 18,046 on Corporations and in the Company’s
Bylaws, as well as those delegated by the shareholders'
meeting or by the Board of Directors itself. Therefore,
these functions currently belong to this committee.
• Supervise the work of the Company’s external
auditors.
• Review and approve the external audit firm's annual
audit plan and 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 a quarterly sustainability report to the Board
of Directors
• Provide a monthly report to the Board of Directors, as
communicated by the Chairman of the Committee,
regarding the subjects addressed during the Board's
prior meetings.
During the first meeting of Enel Chile's Board of
Directors, which took place on February 29, 2016, the
Board delegated the powers of the Audit Committee
according to applicable legislation and Article 29 of
the Bylaws.
The Directors' Committee oversees
sustainability-related issues.
On June 24, 2020, the Board of Directors of Enel Chile
made a strategic decision to enhance its Corporate
Governance
practices
related
to
sustainability
management and its reputation with investors and
sustainability analysts. They decided to delegate
sustainability-related functions to the Directors'
Committee, which comprises only independent
directors responsible for overseeing and monitoring
sustainability
issues
within
the
Company.
The
delegated functions include reviewing the Report
and the Sustainability Plan before final approval by
the Board of Directors. Oversight of the Company's
participation in sustainability indices is also part of its
responsibilities.
Directors’ Committee performance
The Directors' Committee met 12 times in 2024, with
an average attendance of 100% at the sessions1.
During this period, the Committee addressed matters
within its competency, fully complying with the
obligations outlined in Article 50 bis of Law No. 18,046
on Corporations and other applicable regulations. For
further details, see the Committee of Directors' Annual
Report in Chapter 5 of this Integrated Annual Report.
Policies for hiring Directors' Committee consultants
When
the
Directors'
Committee
requests
the
consultancy services of an expert in accounting,
taxation, finance, or other areas at the request of one
or more directors, the selection of the consultant is
made in accordance with the voting quorums of the
committee. When appointing consultants, the directors
consider their background, industry knowledge, and
market reputation, among other factors. All of this is
done in compliance with the provisions of Article 43 of
Law No. 18,046 on Corporations and Article 80 of the
corresponding regulations. Furthermore, if an external
consultant has a relationship with the Company, Title
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Board of Directors
61
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
2024 Performance
To further enhance the high standards
of
Corporate
Governance
practices
related to sustainability management
and positioning among investors and
sustainability
analysts,
the
Board
of
Directors of Enel Chile delegated specific
functions related to sustainability to the
Directors' Committee. This delegation
aims to assist the Board with propositional
and
consultative
functions
regarding
evaluations and decisions related to
the
Company's
sustainability
while
also
overseeing
and
promoting
the
sustainability commitment of Enel Chile
S.A. Among the delegated functions
are, among others, the review of the
Sustainability Report and Plan prior to their
final approval by the Board. Additionally,
the Committee supervises the Company's
participation in sustainability indices.
Number of meetings: 4
Issues covered, among others:
(i) Sustainability Plan 2024-2028.
(ii) Positioning and recommendations in
market terms.
(iii) Market conferences focusing on ESG
(environmental, social, and corporate
governance) issues.
CEO Attended: Yes
Complaints to the Ethics Channel.
Number of meetings: 2
Issued addressed:
Complaints to the Ethics Channel
CEO Attended: Yes
Members meet quarterly to examine the
voluntary matters of good corporate
governance contained in sections (ii), (iii),
and (v) of number 1 d) of General Standard
No. 385 of the CMF, today repealed by
General Regulation No. 461 and that the
Company has decided to continue to
follow.
Number of meetings: 1
Issued addressed:
(i) The external audit program or plan of
the Company; (ii) any discrepancies found
in the external audit related to accounting
practices, administrative systems, and
internal auditing; (iii) any significant
deficiencies
identified
and
those
irregular situations that, by their nature,
must be reported to the appropriate
supervisory bodies; (iv) the outcomes of
the annual external audit program; and
(v) any potential conflicts of interest that
may arise in the relationship with the
external audit firm or its personnel, both
concerning other services provided to
the Company or the companies in its
group.
CEO Attended: Yes
Meeting with the Risk Area: The Risk Area does not currently meet with the Directors' Committee, as these matters
are discussed directly with the Board of Directors because of their importance.
4
Meetings
with the
Sustainability
area
2
Meetings with
the internal
audit area
1
Meetings with
external Audit
company
[NCG 461 - 3.3 vi]
Directors’ Committee meetings
Board of Directors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
XVI of Law No. 18,046 on Corporations is strictly
adhered to.
In the 2024 and 2023 financial years, the Directors'
Committee hired no consultants.
62
Remuneration of the Board of Directors and the
Directors' Committee
The Ordinary Shareholders' Meeting, held on April 29, 2024, agreed on the remuneration for the Board of Directors
and the Board Committee of Enel Chile for the 2024 fiscal year1.
1
In accordance with the provisions of Article 33 of Law No. 18,046 on Corporations.
[NCG 461 - 11]
[NCG 461 - 3.2 ii; 3.3 iii]
Summary of comments and proposals from shareholders
and the Directors' Committee
Between January 1 and December 31, 2024, Enel Chile
did not receive any comments or proposals regarding
the progress of the Company's business from the
Directors’ Committee or shareholders who own or
represent 10% or more of the shares issued with voting
rights, in accordance with the provisions of Article 74
of Law No. 18,046 on Corporations and Article 136 of
the Regulations of that Law.
Remuneration of the Board of Directors
The compensation structure includes a consistent
monthly salary, with one portion guaranteed regardless
of conditions and another contingent upon each session
attended. The compensation structure consists of 216
UF designated as a fixed monthly payment, alongside
UF 79.2 allocated for subsistence during each session,
capped at a total of 16 sessions. The Bylaws specify
that the remuneration for the Chairman of the Board of
Directors is set at double that of a director.
If a director of Enel Chile S.A. takes on multiple roles
on the Board of Directors of subsidiaries or associates
or serves as a director or advisor for other companies
or legal entities in which Enel Chile S.A. has a direct
or indirect interest, they are allowed to receive
remuneration from only one of those Committees or
Boards of Directors.
Enel Chile’s executive, along with those of its subsidiaries
or associates, will not be entitled to any form of
remuneration or allowances if they hold directorships
in any subsidiaries, associates, or investees that are
owned or partially owned by Enel Chile S.A. Such
allowances may be granted to executives only if the
situation has been explicitly authorized in advance as
part of the variable component of their remuneration,
which is to be disbursed by the respective companies
with which they have an employment contract.
Incentive Plans
In 2024 and 2023, the Company did not consider
incentive plans for directors
Directors' Committee remuneration
The payment structure includes a consistent monthly
salary, with one portion guaranteed regardless
of conditions and another contingent upon each
session attended. The remuneration consists of 72 UF
allocated as a fixed monthly payment and an additional
UF 26.4 designated for subsistence during session
attendance, capped at a total of 16 sessions, which
may include both ordinary and extraordinary sessions.
During the ordinary meeting in February 2024, the
Company’s Board of Directors requested the Ordinary
Shareholders' Meeting to establish the expenditure
and operating budget for the Directors' Committee of
Enel Chile and its advisors for the year at UF 10,000.
The Meeting approved the request.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Board of Directors
63
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
(Figures in Ch$)
2024
Name
Title
Fixed
remuneration
of the Board of
Directors
Ordinary and
extraordinary
meetings of
the Board of
Directors
Fixed
remuneration
of Directors'
Committee
Ordinary and
Extraordinary
Meetings of
the Directors’
Committee
Total
Herman Chadwick Piñera (2) Chairman
63,373
17,532
-
-
80,905
Fernan Gazmuri Plaza
Director
31,686
8,766
10,562
2,922
53,936
Pablo Cabrera Gaete
Director
97,314
38,690
32,438
11,894
180,336
Gonzalo Palacios Vásquez
Director
31,686
8,766
10,562
2,922
53,936
Marcelo Castillo Agurto (2)
Chairman
-
-
-
-
-
Salvatore Bernabei
Director
-
-
-
-
-
Pablo Cruz Olivos
Director
65,896
29,924
21,965
8,972
126,757
María Teresa Vial Álamos
Director
65,896
29,924
21,965
8,972
126,757
Monica Girardi (1)
Director
-
-
-
-
-
Isabella Alessio (1)
Director
-
-
-
-
-
Total
355,851
133,602
97,492
35,682
622,627
(Figures in Ch$)
2023
Name
Title
Fixed
remuneration
of the Board of
Directors
Ordinary and
extraordinary
meetings of
the Board of
Directors
Fixed
remuneration
of Directors'
Committee
Ordinary and
Extraordinary
Meetings 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
Mónica Girardi (1)
Director
-
-
-
-
0
Isabella Alessio (1)
Director
-
-
-
-
-
Total
466,805
185,455
93,360
34,233
779,853
(1) Mr. Salvatore Bernabei, Ms. Mónica Girardi, and Isabella Alessio waived their remuneration for their current position as directors of the Enel SpA
Group.
(2) Mr. Marcelo Castillo Agurto was elected as Chairman of the Board of Directors of the Company at an ordinary meeting of the Board of Directors
held on April 29, 2024, a position held until that date by Mr. Herman Chadwick Piñera.
Remuneration of the Board of Directors and Directors'
Committee for 2024 and 2023
Board of Directors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
64
Executive team
[NCG 461 - 3.1 vii]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Executive team
EXECUTIVE TEAM
CEO ENEL CHILE
Giuseppe Turchiarelli (*)
CHAIRMAN OF THE BOARD OF DIRECTORS
Marcelo Castillo
AUDIT
Juan Díaz Valenzuela (*) (**)
PEOPLE AND ORGANIZATION
Gaetano Manzulli (*)
PROCUREMENT
Raúl Puentes Barrera
DIGITAL SOLUTIONS
Ángel Barrios Romo
ADMINISTRATION, FINANCE AND
CONTROL
Simone Conticelli (*)
EXTERNAL RELATIONS AND
SUSTAINABILITY
Pedro Urzúa Frei (*)
REGULATION
Hernán Valenzuela Mejías
HEALTH, SAFETY ENVIRONMENT &
QUALITY (HSEQ)
Andrés Pinto Bontá
SERVICES AND SECURITY
Mary Rinchi Dantetti
(*) Chief Executive.
(**) Audit reports directly to the Board of Directors of Enel Chile
65
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Enel Chile’s senior executives
Giuseppe Turchiarelli1
CEO
Simone Conticelli2
Administration, Finance, and
Control Manager
1
Mr. Giuseppe Turchiarelli was appointed Interim CEO from March 1, 2024, to April 30, 2024. He was subsequently confirmed as the permanent
CEO at an ordinary Board of Directors meeting on April 29, 2024, effective May 1, 2024, replacing Mr. Fabrizio Barderi, who served as CEO from
March 1, 2022, to February 29, 2024.
2
Mr. Simone Conticelli assumed office on October 1, 2024, replacing Mr. Giuseppe Turchiarelli, who served as Administration, Finance and
Control Manager on an interim basis from May 1, 2024, to September 30, 2024.
[NCG 461 - 3.4 i]
ID Number: 27.101.372-8
Profession: Economist, Universidad de Cagliari,
Executive MBA at Luiss Business School
Date of Nomination: May 1, 2024
Giuseppe Turchiarelli studied Economics and Business
and earned an MBA from LUISS Business School.
He joined the Enel Group in 1998 and has held several
positions during his career, including Planning and
Control Manager for Italy, Planning and Control
Manager for Enel Green Power, CFO for Enel Green
Power in Iberia and Latin America, and most recently,
CFO of Europe and North Africa.
In November 2019, he was appointed as the Chief
Financial Officer (CFO) of Enel Chile. He served as
the primary incumbent until February 2024 and
subsequently as the interim CFO from March 1, 2024,
to September 30, 2024.
He was appointed interim General Manager on March
1, 2024, and his appointment as the Company's
General Manager was ratified during the regular board
meeting on April 29, 2024, commencing on May 1,
2024.
ID Number: 26.461.934-3
Profession: Nuclear physicist, graduate of Universidad
Tor Vergata – Rome. MBA from Universidad Luiss de
Roma.
Date of Nomination: October 1, 2024
Simone Conticelli is a nuclear physicist who graduated
from the University of Tor Vergata in Rome and has an
MBA from Luiss University in Rome.
He joined the Enel Group in 2006, where he worked
in Administration, Finance, and Control—AFC as Head
of Planning and Control for Global Digital Solutions
and the "Divisione Mercato Italia," as well as in Human
Resources as the Group's Head of Organizational
Development. Prior to joining Enel, he worked in the
AFC for Fincantieri, a shipbuilding Company, and the
strategic consultancy firm Value Partners.
In 2019, he was the head of Planning and Industrial
Control for Global Power Generation Chile and later
the CFO of Enel Generación. In 2023, he was named
CFO of Slovenske Elektrarne. He has served as Enel
Chile's chief financial officer since October 2024.
Executive team
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
66
Gaetano Manzulli
People and Organization Manager
Juan Fernando Díaz Valenzuela
Internal Audit Manager
ID Number: 28.752.376-9
Profession: Electrical engineer, Politécnico de Bari en
Italia con laurea magistral.
Date of Nomination: January 1, 2025
Gaetano Manzulli holds a master's degree in electrical
engineering from the Polytechnic University of Bari in
Italy.
He joined the Enel group in 2010 in Italy.
He has been responsible for major projects for the
Enel Group and has had a variety of work experiences
in Italy and Latin America.
He assumed the role of Management of People and
Organization for Colombia, Panama, Guatemala, and
Costa Rica in February 2024.
He has served as the Manager of People and
Organization at Enel Chile since January 1, 2025.
ID Number: 16.261.687-0
Profession: Information and Management Control
Engineer, Universidad de Chile
Date of Nomination: February 1, 2022
Juan Díaz Valenzuela is an Information and Management
Control Engineer from the University of Chile, with
specializations in Electric Markets and Project
Management from the University of Development and
the University of Chile.
Since 2010, he has been linked to the Enel Group. He
has held various responsibilities in Internal Audit in the
Latin America region across the different business
lines of the Enel Group. Between 2019 and 2022, he
served as the Audit and Compliance Manager for
Enel Peru and its subsidiaries, where he successfully
implemented the Anti-Bribery Management Systems
and Compliance with the local Crime Prevention
Model.
Mr. Díaz Valenzuela has been the Internal Audit and
Compliance Manager for Enel Chile and its subsidiaries
since February 2022.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Executive team
67
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Pedro Urzúa Frei3
External Relations and
Sustainability Manager
3
Mr. Pedro Urzua Frei became Manager of External Relations and Sustainability, combining the tasks of Communications, Institutional Relations,
and Sustainability.
ID Number: 11.625.161-2
Profession: Journalist, graduate of Universidad de
Artes y Ciencias de la Comunicación (UNIACC).
Date of Nomination: April 1, 2024
Pedro Urzúa is a journalist who graduated from the
University of Arts and Communication Sciences
(UNIAAC). From 1994 to 2006, he worked as chief of
staff for the Ministries of Planning and Cooperation
and Mining.
He worked for the National Oil Company (ENAP) from
2006 to 2012, initially serving as Communications
Director at Enap Sipetrol and subsequently as
Corporate Affairs Director. In 2012, he became the
director of the Fundación Acción RSE.
In November 2012, he joined the Enel Group as
Institutional Relations Manager for Chile and the
Andes at Enel Green Power and later as Institutional
Relations Manager at Enel Chile. He is currently the
director of the San Ignacio de Huinay Foundation, the
Chilean Chapter of the World Energy Council (WEC),
and the Chilean-Argentine Chamber of Commerce.
On April 1, 2024, he took over as the Manager of
External Relations and Sustainability at Enel Chile, which
includes Institutional Relations, Communications, and
Sustainability.
Executive team
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
68
1
The Company adopted the Policy to comply with the corresponding listing standards of the New York Stock Exchange, the national securities
exchange of the United States where the Company's American Depositary Receipts ("ADRs") are registered and traded, in the United States of
America.
[NCG 461 - 3.6 xi; xii]
[NCG 461 - 3.6 x]
Review of executive team salary structures
As the governing body, the Board of Directors of
Enel Chile has decided that a formal procedure for
assessing the executive team's salary structures is
unnecessary. The Directors' Committee regularly
conducts thorough discussions on these matters
in line with the provisions outlined in Article 50 bis
of Law No. 18,046 on Corporations. Additionally,
salaries and compensation policies for the Company's
top executives are established through thoughtful
incentive strategies, ensuring that these policies do
not lead the Company to engage in illegal activities or
encounter 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, the Board of Directors of Enel Chile approved
the Incentive-Based Compensation Policy, which
aims to establish the circumstances under which the
Company will recover compensation granted in error
received by a current or former Principal Executive
and declare the Board's discretionary authority to
decide on matters not covered by the corresponding
listing standards of the New York Stock Exchange1.
Enel Chile lacks established procedures for submitting
the salary structures and compensation and severance
policies of the Chief Executive Officer and other senior
executives for approval by the shareholders, in addition
to the approval required from the Board of Directors
or the Directors’ Committee, where applicable.
CEO and senior executive replacement procedure
Following the Company's Replacement Procedure, in
the event of an unforeseen replacement of the CEO,
they will be automatically and temporarily replaced
by the Administration, Finance, and Control Manager.
Following this, a meeting of the Board of Directors
must be arranged immediately to designate the
person who will occupy the position permanently. In
the event of the replacement of a senior executive,
the CEO shall determine who will replace them until
a substitution is selected. 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.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Executive team
69
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
[NCG 461 - 3.4 ii]
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's Risk Committee is responsible for defining
the structure and processes of risk governance. Its
mission includes detecting, quantifying, monitoring,
and reporting significant financial risks as well as
risks related to commodities, Company commercial
debt, and credit status to the Board of Directors. The
Committee comprises three members: (i) the CEO of
the Company, who acts as the Committee Chairman;
(ii) the Administration, Finance, and Control Manager;
and (iii) the Planning and Control Manager. The
Committee directly reports to the Board of Directors.
Remuneration of senior executives
In 2024, the total remuneration and benefits allocated
to the CEO and key executives of the Company
reached Ch$1,876 million in fixed compensation,
alongside Ch$781 million in both short- and long-term
benefits. In the fiscal year 2023, the total remuneration
and benefits allocated to the CEO and principal
executives of the Company reached Ch$2,456 million
in fixed compensation, alongside Ch$740 million in
both short- and long-term benefits. The reported
figures include the senior executives employed as of
December 31 of each fiscal year, in addition to those
who left the Company during the corresponding fiscal
year.
Severance payments to senior managers and executives
No severance was paid for years of service during the 2024 and 2023 periods.
Benefits for senior executives
The Company provides supplemental health insurance
and catastrophic insurance for senior executives
and their household members who are recognized
as dependents. Additionally, each senior executive is
granted life insurance. These benefits are allocated
based on the corresponding managerial level of the
employee.
Remuneration plans linked to the share
price
No remuneration plans are linked to Enel Chile's share
price for key management staff members.
Executive team
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
70
[NCG 461 - 3.4 iii]
Incentive plans for managers and senior executives
Enel Chile offers an annual bonus plan for its top
executives to achieve objectives and reflect individual
contributions to the company's results. The plan
defines bonus ranges based on hierarchical levels,
which consist of several gross monthly salaries.
Remuneration, annual bonus plans, and long-term
incentives for expatriate executives are subject to
recharge agreements, so Enel Chile has borne this
cost.
The following are the variable incentives for the
General Manager:
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Executive team
Macro goal
Target
Dimension
Weight
Range
Profitability
Net Income
Enel Chile
15%
Maximum 120%
Economic
Profitability
EBITDA
Enel Chile
25%
Maximum 120%
Economic
Financial
FFO1
Enel Chile
20%
Maximum 120%
Financial
Business
Business in
Enel Chile
20%
Maximum 120%
Strategic
Safety
Workplace Safety
20%
Maximum 120%
ESG
(1) Funds from Operations
71
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Relationship between the
Company, shareholders,
and community outreach
Information for shareholders
Enel Chile is dedicated to maintaining a continuous and transparent dialogue with the market. This dialogue
is founded on a mutual understanding of roles among investors, analysts, bondholders, their representative
associations, and the stock market as a whole. This effort aims to enhance the understanding of the Enel Chile
Group's activities.
In July 2021, the Board of Directors of Enel Chile approved the Investor Relations
Policy to ensure that the principles of fairness and transparency guide the Company's
dialogue with institutional investors, shareholders, and bondholders. This document
aligns with national regulations and international best practices. Furthermore, the
Company has implemented a Manual for the Management of Information of Interest to
the Market, which was updated at the May 2023 Board of Directors meeting to reflect
new regulatory requirements. The purpose of the Manual is to establish the general
criteria of behavior to be followed by its recipients in their transactions, contributing
to transparency and investor relations 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 best practices in this area at the national and international
levels. The Board of Directors, in compliance with the requirements of the policy
mentioned above, 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: In accordance
with current regulations, the company prepares and offers the public a procedure
for remote participation through electronic means and voting systems at each
Shareholders' Meeting.
Procedure to Inform Shareholders about the Background of Director Candidates:
The Procedure establishes that the Company’s shareholders must be informed of
the candidates for director in a timely manner before the shareholders' meeting at
which they will be elected. The Enel Chile website must provide shareholders with
information about a director candidate, including their professional profile and
experience, at least two days prior to the meeting, provided that the candidate submits
Enel Chile is committed
to guaranteeing an
open and transparent
dialogue
[NCG 461- 3.7 i; iii; iv]
Relationship between the Company, shareholders, and community outreach
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
72
this information to the Company on time. The procedure also stipulates that, with the
same notification period as previously mentioned, shareholders must have access to
information regarding the maintenance of contractual, commercial, or other types
of relationships with the Company's controller, as well as with its main competitors or
local suppliers, for each director candidate in the past eighteen months, provided that
the information is provided to the Company by the respective candidate.
The Procedure to Inform Shareholders on the Background of Candidates for Director
does not consider the policies that regulate the diversity of the Board of Directors, as
this is a matter that is exclusively determined by our shareholders.
1
During the 2024 period, the Company did not have the advice of experts outside the entity.
[NCG 461- 3.7 ii]
Investor Relations
Investor Relations is a department within the company
that is tasked with providing transparent, timely, and
accurate information to the market regarding the most
significant financial, strategic, and operational issues.
This department also supplies necessary information
on matters of interest, including shareholders'
meetings and related accreditation procedures,
corporate governance matters, and dividends.
Enel Chile’s Investor Relations Policy aims to facilitate
the effectiveness of the dialogue with institutional
investors and 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. As part of the commitment to continuous
improvement1, the Investor Relations management
constantly seeks to optimize its communication
and relationship practices to strengthen investor
confidence.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Relationship between the Company, shareholders, and community outreach
73
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Available documentation
The data offered to investors primarily includes quarterly results presentations,
integrated annual reports, 20-F reports, press releases, quarterly financial tables,
corporate presentations, and strategy plans.
Regarding this last point, as of 2016, the Company presents its Strategic Plan for the
next three years every year, showing the main guidelines, projections, and finances of
its businesses.
2024 Performance
In 2024, Enel Chile organized a hybrid Investor Day
(in-person and online) to announce its Strategic Plan
2025-2027, with over 200 local and foreign investors
in attendance.
Furthermore, beginning in 2020, the company's
website will allow users to take virtual tours of power
generation plants, making it easier to present the
facilities to stakeholders.
Enel Chile held almost 330 meetings with investors
in 2024, including seven conferences and non-deal
roadshows, both locally and internationally.
Isabela Klemes
Investor Relations Manager
Investor Relations Team
• Catalina González
• Carla Rojas
• Bárbara Calderón
• Francisco Basauri
Contact
E-mail: ir.enelchile@enel.com
Download app
Website
Enel.cl
iOS
Android
Mobile App
Enel Investors
Communication channels
Enel Chile maintains a dedicated area named
"Investors" on its corporate website (www.enel.cl). This
area collects documents and information deemed
most relevant for this purpose. It is available in Spanish
and English.
The Investor Relations management is available to
answer any questions regarding the Company in
Spanish, English, French, or Portuguese via email at
ir.enelchile@enel.com.
Other interaction methods include:
• Investor Relations App
• Conference calls
• Emails
• Virtual and/or in-person meetings
• Participation in local and international conferences
Relationship between the Company, shareholders, and community outreach
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Chanels – Follow us
74
Relations with the Media
The Communications and/or Media Relations team,
which is integrated into the External Relations
and Sustainability management, is responsible for
cultivating Enel Chile's relationship with the media. A
communications manager manages this unit, which
receives and manages a variety of press requests from
national and international media outlets, including
interview requests and responses to contingencies.
Following the Company's media relations guidelines,
this unit develops communication proposals to share
information about Enel Chile’s activities. This includes
negotiating with media outlets and creating press
releases, interviews, press points, and other initiatives.
External Relations and Sustainability
Enel
Chile
establishes
connections
with
its
stakeholders from political, governmental, and other
relevant authorities through institutional relations.
Enel Chile implements a model of flexible, transparent,
and legitimate dialogue to communicate its vision,
primary
business
objectives,
and
international
experience in developing the electric market. This
approach also enables the company to gain insights
into the political authority's perspective on industry
growth.
The management of this model is based on a coherent
strategy that adapts to stakeholders' requirements, as
building brand reputation is essential for generating
trust.
Governance framework for public policy participation
The Company has a framework that ensures
transparency and efficiency by assigning specific
responsibilities at every level, up to senior management.
This structure promotes effective participation in
government initiatives through working groups or
consultations with authorities.
It also enhances the oversight and transparency of
meetings with these agencies and clearly outlines the
procedures for interactions with them.
In this context, a relationship is established within a
legal framework that guarantees the transparency and
integrity of the Enel Chile Group during this interaction
and ensures compliance with all applicable protocols.
To provide institutions with optimal conditions for
decision-making, activities involving these entities
are documented and monitored in accordance with
Law No. 20,730, which regulates lobbying and actions
advocating for private interests before authorities and
officials.
Furthermore,
the
Company
has
implemented
mandatory internal procedures and manuals for all
members, representatives, or contractors designed
to improve the transparency and traceability of
interactions with public officials or members of public
institutions in their daily operations.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Relationship between the Company, shareholders, and community outreach
75
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Contributions in the last five periods (1) (2)
Figures in Ch$ million
2024
2023
2022
2021
2020
982
1,174
1,212
927
1,048
(1) Enel Chile and its subsidiaries have not made any contributions related to lobbying, interest representation, political campaigns, support for
organizations, or contributions to local, regional, or national candidates, nor expenses related to voting measures or referendums. This com-
plies with Law No. 20,900 as well as the Group's internal policies.
(2) Data coverage corresponds to 100% of income over the five years.
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)
• 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)
• Comité Chileno del Consejo Mundial de la Energía
(WEC)
• Cámara Chileno Brasileña de Comercio
• Acción Empresas
• Pacto Global Red Chile (Universidad Andrés 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
• Comité Nacional Chileno de Grandes Presas
(ICOLD CHILE)
• Cámara Chilena de la Construcción
• Hoteleros de Chile
• Fundación País Digital
[NCG 461 - 6.1 vi; 6.3]
Review and monitoring process of association participation
In accordance with Enel Chile’s internal policies, an
annual review and monitoring process of its association
affiliations is conducted to assess their alignment with
the Company’s stated positions. Notably, Enel Chile’s
business model is in line with the Paris Agreement and
climate-related legislation and regulations.
This systematic approach is applied to both existing
renewals and new agreements. The primary goal is to
ensure that the affiliations align with the Company’s
objectives. If discrepancies in the relationship are
identified, the Company has a framework ready
to address them, including public statements that
distance Enel Chile from the relationship prior
to engaging in discussions with the commercial
association, which includes specific deadlines and
an escalation process. If successful, this may lead to
a withdrawal from the commercial partnership. The
Company’s policy is to remain transparent about the
reasons for not renewing membership.
In 2024, Enel Chile continued to participate in multiple
trade and business associations, which was in line with
the Company's strategy.
Relationship between the Company, shareholders, and community outreach
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
76
United Nations Global Compact (UNGC)
Enel Chile, through its subsidiaries Enel Distribución
Chile and Enel Generación Chile, is a signatory to
the United Nations Global Compact (UNGC). This
group of organizations is among the most dedicated
to sustainability thanks to their compliance with
the ten fundamental principles of Human Rights,
Labor Relations, Environmental Protection, and Anti-
Corruption.
Foundations
Fundación San Ignacio de Huinay and Fundación
Pehuén are two foundations operated by Enel Chile
through Enel Generación Chile. These foundations
focus on organizing initiatives to enhance education
and address various emerging social needs, including
environmental protection, cultural heritage recovery
and preservation, social cooperation, and scientific
research.
Community engagement
The community engagement strategy of Enel Chile
is based on a Shared Value Creation (CSV) model,
which is based on a comprehensive comprehension
of the social, economic, and environmental context
of the region. All of the aforementioned, within the
framework of the social impact assessment that we
establish for each project: Workforce management
in the community, health, and community well-being;
community and stakeholder participation. Actions
are developed that promote the prosperity and
empowerment of communities, reduce gaps, and
mitigate risks of potential adverse impacts through
a participatory approach that positions people at the
center with their priorities, needs, and diversities.
In light of the significance of community engagement
and the "Annual Sustainability Plan" established by the
company, the Board of Directors establishes specific
objectives for the company and its subsidiaries.
These objectives are presented, approved, and
monitored on a quarterly basis. This endeavors to
ensure that the company's strategy, business plans,
and budgets are adopted or adapted, as well as to
identify deviations from the Sustainability Plan and
implement the requisite modifications. The KPI serves
as an illustration of objectives that are linked to
community engagement. The number of beneficiaries
affected by the Sustainable Development Goals (SDGs)
in community initiatives that are designed with an
emphasis on:
• SDG 4: Quality Education
• SDG 7: Affordable and Clean Energy
• SDG 8: Economic Growth and Decent Work
In 2024, the Enel Group companies implemented
various programs that benefited 74,419 people
nationwide across the 15 regions where they operate.
This was achieved through the application of different
analysis, planning, and monitoring tools, all while fully
respecting human rights.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Relationship between the Company, shareholders, and community outreach
77
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Community outreach
Enel
Chile
regards
its
relationship
with
the
communities in which it operates as essential
and acknowledges its role as a contributor to the
development of sustainable development and shared
value. At the territorial level, it is present throughout
the nation, collaborating with local governments, social
organizations, and communities to comprehend their
requirements and pinpoint areas of alignment with its
corporate strategy. This is accomplished through the
deployment of a team. Meetings with stakeholders,
joint activities, and specific surveys are among the
most notable instruments and instances in community
engagement that enable the assessment of the
perceptions of impacted communities. Instances
such as those described above also facilitate the
exchange of information regarding the established
channels for receiving requests, complaints, claims,
and suggestions.
There are also various processes and tools available to
the communities in the company's area of influence,
where people who wish to contact Enel Chile and its
subsidiaries can do so through the local Sustainability
team with the person responsible for community
relations in each area (urban or rural) who periodically
collects all possible requests or suggestions.
Relationship between the Company, shareholders, and community outreach
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
CREATION OF SUSTAINABLE VALUE
Materiality
analysis
Sustainability
plan
Actions and
projects
Performance
and Report
Ratings and
ESG index
Analysis of the
ESG Context
79
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
[NCG 461 - 2.1]
Value and ethics pillars
In an ever-evolving world, corporate ethics and integrity
profoundly impact society and the environment.
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, Innovation, Proactivity,
Respect and Felxibillity.
Enel Chile and its subsidiaries have a robust ethics
system with standards to ensure that everyone working
for or with the Company follows best practices.
The system is based on a Compliance Program that
includes the Code of Ethics, Enel's Global Compliance
Program, the Zero Tolerance for 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.
Values
• Purpose: Building the future through sustainable
energy.
• Vision: Drive electrification, meet people's needs,
and build a better world.
• Values: Trust, Innovation, Proactivity, Respect,
Flexibility
• Positioning: Your energy decisions are our
responsibility. Every day, with clean energy.
• Mission: Deliver more and more services to a
greater number of people, boost the economies
of the communities where it operates and expand
access to energy wherever possible.
Enel values have inspired the Company’s governance
system. They are a fundamental element of its business
model, which has the overarching goal of making 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.
This benefits the Company’s customers' needs,
shareholder investment, market competitiveness, and
the aspirations of all its employees.
Value and ethics pillars
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
80
[NCG 461 - 3.6 vii]
[NCG 461 - 3.1 iii]
Code of Ethics
Enel Chile and its subsidiaries have established a
Code of Ethics that guides the actions of directors,
executives,
collaborators,
and
employees
with
temporary or occasional contractual relationships, as
well as the Company's governing bodies, including
the Board of Directors and the Directors' Committee.
This Code also outlines the Company's ethical
commitments and responsibilities in managing
business activities, aiming to regulate and standardize
corporate conduct based on principles designed to
ensure maximum transparency and fairness for all
stakeholders.
The principles and provisions of this code are intended
for the members of the Board of Directors, the
Company’s other control and supervisory bodies, and
its subsidiaries, as well as for executives, employees, and
collaborators who maintain contractual relationships
with the Group. The Code of Ethics is applicable to Enel
Chile and its subsidiaries. The Company also requires
all suppliers and partners to act in accordance with
the general principles outlined therein. The Code of
Ethics and the primary documents that reflect Enel
Chile’s ethics culture are distributed to employees,
directors, suppliers, and contractors. They are also
made available internally and, on the website, ensuring
that all stakeholders can easily access this content.
The Code of Ethics consists of:
• The general principles on stakeholder relations
define the values that are the reference values in
Enel Chile's activities.
• The conduct criteria for each type of stakeholder,
which specifically provide the guidelines and
standards that Enel Chile’s employees must respect
to prevent the risk of unethical behavior.
• The action mechanisms describe the control system
for compliance with the Code of Ethics and its
continuous improvement.
To learn more about Enel Chile’s Code of Ethics, please
visit
https://www.enel.cl/en/investors/investor-enel-
chile/corporate-governance/compliance-program-
documents.html
Conflict of interest
According to the general principles of the Code of
Ethics, the Company’s employees must avoid both
real and potential situations where an individual's
secondary interests—whether economic, financial,
family-related, or otherwise—interfere or may interfere
with their ability to make impartial decisions that serve
the best interests of the Company and to fulfill their
duties and responsibilities. Enel Chile also maintains
an Internal Policy on Conflicts of Interest for direct
employees (Policy No. 82), which aims to regulate
the reporting, analysis, and resolution of actual or
potential situations that could create conflicts of
interest, in accordance with the Code of Ethics, the
Zero Tolerance for Corruption Plan, the Enel Global
Compliance Program, the Criminal Risk Prevention
Model, the Internal Regulations on Order, Hygiene, and
Safety, and the relevant legal obligations provisions.
Consequently, all employees associated with the
Company through an employment contract are
required to sign a Declaration of Conflicts of Interest
annually. This declaration evaluates the existence
of any conflicts of interest while also considering
the mandatory requirements of the Criminal Risk
Prevention Model (Law No. 20,393 and the amendments
made by Law No. 21,595 concerning Economic and
Environmental Crimes). This document is relevant to
managing conflicts of interest for contract managers
and operational coordinators. The Legal Corporate
Affairs Management oversees, through a separate
procedure,
the
conflict-of-interest
declarations
submitted by directors and senior executives to the
Chilean Financial Market Commission (CMF).
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Value and ethics pillars
81
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Whistleblower
protection
The Ethics Channel is governed by the Global Whistleblowing Policy, which ensures
anonymity, confidentiality protection, safeguards against retaliation, and protection
against bad-faith reporting. This policy is rooted in principles of trust, impartiality, and
whistleblower protection. Management is carried out by Internal Audit Management,
but oversight is provided by an external Company (Navex). It allows individuals to report,
anonymously, any irregular conduct that contradicts 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,
reception, misappropriation, incompatible negotiation, and environmental crimes,
among others. Complaints received are investigated by Internal Audit Management
and reported to the Directors' Committee.
[NCG 461 - 3.6 ix]
Workplace and sexual harassment
Another fundamental principle of Enel Chile’s Code of
Ethics is the Integrity of People, which ensures that the
Company guarantees the physical and moral integrity
of its staff members, provides working conditions that
respect their personal dignity and individual spaces,
and maintains a safe and healthy work environment.
It also prevents incidents of harassment, intimidation,
mobbing, or stalking in the workplace. To uphold this
principle, the Company has implemented a Workplace
Harassment and Sexual Harassment Policy designed to
establish the essential principles necessary to foster a
culture that rejects and does not tolerate any form of
harassment in the workplace while also providing tools
to address these unacceptable situations. This policy
applies to all employees of the Enel Group in Chile
and to third parties who interact with the Company’s
employees in all contexts where the Company
conducts its business.
Ethics Channel
Enel Chile operates a Whistleblowing Channel
(Ethics Channel), a platform managed by an external
specialized provider. This channel permits employees
and collaborators, both internal and external, to
report potential breaches or violations of the Code
of Ethics, the Zero Tolerance Plan for Corruption,
and the Criminal Risk Prevention Model. The platform
is publicly accessible, allowing any party associated
with the Company—such as shareholders, employees,
collaborators, contractors, suppliers, customers, the
community, and other interested parties—to file a
complaint.
The Ethics Channel ensures that information remains
confidential, provides the opportunity for anonymous
complaints, and implements measures to prevent
retaliation against whistleblowers and discourage
bad-faith complaints. The complainant can always find
out the status of the complaint.
To Access the Ethics Channel, visit https://secure.
ethicspoint.eu/domain/media/en/gui/102504/index.
html
Value and ethics pillars
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
82
Whistleblowing analysis
The Board of Directors reviews general complaints, while the Directors' Committee
examines those related to accounting. Both committees evaluate the report from
the Internal Audit Manager, which details all complaints received through the Ethics
Channel during each period, including identified violations and corresponding
corrective actions. If a complaint warrants it, the Directors' Committee Chair must
convene an extraordinary session of the committee, with guidance on corrective
measures provided by both the Board of Directors and the Directors' Committee.
There were no special sessions devoted to this issue in 2024.
In 2024, 26 reports were received under the scope of Enel Chile and its subsidiaries,
with 19 reports already closed and seven reports subject to analysis. Alleged
violations of the Code of Ethics were duly managed.
Complaints received
KPI
2024
2023
2022
2021
2020
Complaints received (1)
26 36 36 27 19
Non-compliances related to episodes of:
4
9 7 8 2
Conflict of Interest/Corruption (2)
-
3 2
-
-
Misuse of assets
1
- 1
-
-
Work environment
1
2 2 4 2
Community and society
-
-
-
-
-
Other motivations (3)
1
3 1 4
-
Workplace harassment
-
-
-
-
-
Sexual harassment
1
1 1
-
-
(1) Of the 26 complaints received, seven are being analyzed (status as of January 13, 2025), having been received at the end of the year.
(2) In 2024, there were no cases of corruption.
(3) Other motivations refer to control weaknesses in technical processes or non-compliances related to contractors and matters of Health and
Safety.
Number of harassment complaints
Type (1)
Complaints to the Company
Complaints to the Labor Directorate
GENDER
Men
Women
Men
Women
Workplace harassment
0
0
0
1
Sexual harassment
0
0
0
2
Violence at work
0
0
0
1
26
Complaints
received
(1)
Regarding the request for submission on the type of complaint filed with respect to NCG519, the Company must use the following criterion:
•
All cases investigated by the Company or a mandated third party will be reported as filed with the same entity, or
•
All cases that are investigated by the DT, which could have been entered autonomously by any of the parties indicated in numeral 01 or referred
by Enel to the DT for investigation, will be reported as the Labor Directorate/Public Agency.
[NCG 461 - 5.5]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Value and ethics pillars
83
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Where to report?
Corporate website
www.enelchile.cl
Direct Ethics Channel
https://secure.ethicspoint.eu/domain/media/en/
gui/102504/index.html
Face-to-face or written
Enel Chile
Internal Audit Management, Santa Rosa N°76,
Santiago (*)
(*) As of April 1, 2024, face-to-face or written complaints must
be made at Roger de Flor 2725, Las Condes, Santiago.
Value and ethics pillars
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
84
Enel Chile’s Compliance Program
Enel Chile views compliance as an integrated
management system that encompasses regulatory
requirements and internal commitments related to
corporate ethics and normative obligations. This
means adhering to the law and the standards that the
Company has voluntarily set for itself.
The Compliance Program operates according to the
guidelines established by Law No. 20,393 on Criminal
Liability of Legal Entities. This allows the Company to
develop and disseminate an effective, robust, and risk-
aware compliance culture. This regulation establishes
the requirements for implementing, developing,
evaluating, maintaining, auditing, and improving the
Compliance Program.
Enel Chile's Program includes an Anti-Bribery
Management System (ABMS) based on ISO 37001:2016.
This system focuses on risk identification and control
improvements in high-risk operations. The Board of
Directors, the highest authority of the Criminal Risk
Prevention Model (Law No. 20,393), promotes bribery
prevention alongside senior management.
All subsidiaries follow a compliance program aligned
with Company practices and regulations. Joint ventures,
related companies, suppliers, and contractors are
encouraged to develop local regulations consistent
with national laws and Company standards.
Compliance Program Components
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Value and ethics pillars
BOARD OF DIRECTORS
Code of ethics
Zero
tolerance
of corruption
plan
Protocols
Procedures
and policies
Criminal
Risk
Prevention
Model
Enel Global
Compliance
Program
Control
Environment
Compliance Officer/
Prevention Officer
CRPM Coordinator /
Executive team
Third parties
and due
diligence
Sensitive
Processes
(Consulting and
donations)
Digitalization
and continuous
monitoring
Certifications and
Initiatives
Fraud Risk
Assessment
Complaints channel
and whistleblowing
85
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
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
1
The EGCP is inspired by the most relevant international standards 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.
2
Chilean Law No. 20,393, which establishes the criminal liability of legal entities in the crimes of bribery of national or foreign public officials,
money laundering (money laundering) and financing of terrorism, entered into force on December 2, 2019. https://www.bcn.cl/leychile/nave-
gar?idNorma=1008668
[NCG 461 - 3.6 xiii]
Enel Global Compliance Program (EGCP)
Enel Global Compliance Program on Corporate
Criminal Liability (EGCP)1 is a governance mechanism
that
reinforces
the
Enel
Group's
ethical
and
professional commitment to prevent the commission
of crimes that may lead to criminal liability for the
Company and damage its reputation.
This document, approved by Enel Chile in 2016,
establishes standards of conduct and monitoring
areas for its foreign subsidiaries. These requirements
take precedence when local legislation and regulations
do not address them.
Zero Tolerance for Corruption Plan
In alignment with the tenth principle of the United
Nations Global Compact, which states that "companies
must work against corruption in all its forms, including
extortion and bribery," Enel Chile is dedicated to
combating corruption. It requires its employees to be
honest, transparent, and fair in performing their tasks.
This is why the Company adopted the program called
the Zero Tolerance for Corruption Plan (TCC Plan) 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 activities most susceptible to
corruption and in accordance with the provisions of
its Code of Ethics, Enel Chile is dedicated to executing
its operations, particularly concerning bribes, gifts,
presents, preferential treatment, donations to political
parties, and charity sponsorship.
Criminal Risk Prevention Model
Enel Chile is fully committed to complying with
its ethical standards and conduct, as well as with
current legislation, both in its internal and external
relations with other stakeholders. For this reason, it
has 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 for the purposes of Law No. 20,3932 and the
risks of administrative liability established in the Enel
Value and ethics pillars
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
86
Global Compliance Program, ensuring compliance
with regulations and transparency in all actions at Enel
Chile and where it holds a majority stake, exercises
control, or is responsible for management.
The MPRP comprises preventive measures and control
activities for processes at risk of criminal activities.
This includes appointing a Crime Prevention Officer
(CPO) by Enel Chile's highest administrative authority,
a responsibility assigned to the Company's Internal
Audit Manager.
The CPMR includes various components that address
the activities and behaviors of Directors, managers,
executives,
workers,
suppliers,
public
officials,
communities, and other relevant parties associated
with the Company. In August 2023, Law No. 21,595
on Economic and Environmental Crimes was enacted
to modernize the approach to economic offenses,
update Crime Prevention Models, and ensure
their practical application. This law introduces a
differentiated framework for penalty determination,
enhances and intensifies penalties, and expands the
list of crimes that hold legal entities criminally liable.
Similarly, amendments to Law No. 20,393 indicate
that a successful application of the Model may
absolve criminal liability provided that risky processes
are recognized, regulations are put in place to avert
and identify deviations, compliance is monitored,
a whistleblowing mechanism is established, and
penalties are outlined. Assessments are conducted by
independent third parties.
In 2024, the Criminal Risk Prevention Model of Enel
Chile underwent a review conducted by an external
advisor. This process was followed by an update,
which involved a collaborative effort among various
departments within the Company, including Audit
Management and Legal and Corporate Affairs
Management. This review identifies the risks to which
the Company is exposed and outlines the control
activities implemented to mitigate these risks. The risk
matrix and various key documents constituting the
MPRP have been updated, and protocols have been
developed to establish criteria for behaviors aimed
at mitigating specific risks. The Board of Directors
approved this update in July 2024. The ongoing
implementation of various training and dissemination
activities is being performed by workers at all levels,
service providers, and third parties.
To learn more about Enel Chile’s Criminal Risk
Prevention
Model,
visit
https://www.enel.cl/es/
inversionistas/inversionistas-enel-chile/gobierno-
corporativo/documentos-programa-cumplimiento.
html.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Value and ethics pillars
87
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
CPMR review and
monitoring
• The Board of Directors oversees regulation compliance, criminal risk prevention,
and adherence to the Code of Ethics, with monitoring by the Internal Audit
Department. The Board approves the Compliance Program documentation and
implements it through the CPO, who has the necessary autonomy, authority, and
resources to perform effectively.
• In July 2024, the Board of Directors, which serves as the Company’s highest
administrative authority, along with other areas of the Company, finalized the
CRPM review and adaptation in light of the amendments made to Law No.
20,393 and Law No. 21,595 concerning Economic and Environmental Crimes.
The coordination of this work was led by the CPO, leading to the comprehensive
revision of specific risks and controls within the framework of the Criminal
Risk Prevention Model, involving all relevant areas and processes, supported by
external experts and the Legal and Corporate Affairs Management.
Value and ethics pillars
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Identification
Areas Risk
Activities of
Control
• 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 Efectiveness
Oversight and
response to risk
• Oversight, Review and Supervision
• Analysis of Weaknesses and Points
for Improvement
• Information Flows and Sample
Testing
RESPONSE TO RISK
• Disciplinary System
• Identification and Implementation of
Improvements
Environment of
Control
Pillars of the Regulatory
System
• Code of Ethics
• Enel Global Compliance Program
• Criminal Risk Prevention Model
• Zero tolerance of corruption plan
• Protocol for accepting and
offering gifts, presents and favors
• Protocol of action in dealing
with public officials and public
authorities
• Internal Rules and Regulations
88
External reviews and
certifications
• Enel Chile’s Criminal Risk Prevention Model undergoes periodic evaluation by an
independent third party, as mandated by Law No. 20,393, to identify mechanisms
for enhancement or updating and to ensure continuous monitoring.
• Enel Chile has led the way in promoting transparency and ethics. In 2018, it
became the first multinational energy Company in South America to certify its
Anti-Bribery Management System under ISO 37001:2016. The system remains
certified until December 25, the maximum period specified by the standard. This
standard delineates a set of best practices and measures to assist organizations
in the prevention, detection, and resolution of bribery, as well as the fulfillment
of voluntary commitments that have been assumed. All principal subsidiaries of
Enel Chile have certified their Anti-Bribery Management System in accordance
with this standard at the conclusion of the financial year 2024.
Compliance Road Map
The evaluation and monitoring of both internal and external implementation are conducted through the
Compliance Road Map (CRM), a methodology for medium-term activity planning associated with the Compliance
Program and the Criminal Risk Prevention Model (CRPM). The objective is to monitor, evaluate, and enhance Enel
Chile’s CRPM while also contributing to the Group's Corporate Governance and Sustainability Strategy. The CRM
includes several components that engage various stakeholders:
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Value and ethics pillars
COMMUNITY/
CUSTOMERS
Transmit the Group’s
commitment to transparency
and integrity in the
development of its activities, in
order to generate trust with
communities and customers.
STAKEHOLDERS
INSTITUTIONAL & NGOs
Share and develop Ethical and
Anti-Corruption compliance
standards and practices with
civil society and government
organizations.
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.
SUPPLIERS AND
CONTRACTORS
Transfer the culture and
commitment to Ethics and
Compliance, and jointly
establish and/or strengthen
good practices associated
with this area.
Compliance Model
89
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
1
Activities include providing a copy of the Code of Ethics to all employees, including sections on the Company's intranet dedicated to the same
subject, and incorporating an informational note regarding its adoption in all contracts, among others.
• Associated with Law No. 21,595 on Economic and Environmental Crimes and
Law No. 20393, which establishes the criminal liability of legal entities, the
Criminal Risk Prevention Model was reviewed, updated, and approved by the
Board of Directors in July 2024.
• Directors, managers, workers at all levels, service providers, and third parties
were trained on this review and update and the role and responsibility of
each one in the Model. Similarly, internal and external dissemination activities,
including social networks, were carried out.
• As a result of the above, in November 2024, Enel Chile held a new version of
Ethics Week, in which various dissemination and training instances were carried
out for workers, managers, and Directors, as well as suppliers and contractors,
associated with the Enel Group's Compliance Program in Chile, with the
participation of Carey Abogados and Chile Transparente as speakers.
• The Company and its subsidiaries conducted training on the Criminal Risk
Prevention Model. It focused on updating and preventing corruption and
unethical conduct, the use of the Ethics Channel, the Anti-Bribery Management
System (ISO 37001:2016), and, in general, on knowledge of the Company's
Compliance Program.
Main activities carried
out
Communication and training: Compliance Program effectiveness
According to the Code of Ethics, personnel
management policies are accessible to all employees
through business communication tools such as
the company's intranet, organizational documents,
and managers' distribution. Additionally, specific
communication activities are employed to keep both
internal and external stakeholders informed, ensuring
that all workers have a comprehensive understanding1.
The People and Organization Management team
develops and executes, following the guidance
of the Internal Audit Manager, an Annual Training
Plan designed to raise awareness of the principles
and standards. Training initiatives are categorized
according to the workers' specific 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. These plans contained
internal and external actions, including inductions for
the Company’s recruits, who received Compliance
Program-specific training. The training activities also
involved the Company’s Directors.
Value and ethics pillars
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
90
• In collaboration with Communications, a space was provided to all workers
within the Corporate Intranet, offering quick and easy access to key compliance
and CRPM resources and information.
• At the same time, the Barometer of Values and Organizational Ethics was
voluntarily applied by Fundación Generación Empresarial. This tool allows for the
ongoing measurement of perception and culture within the group.
• Finally, in the context of the Company's involvement in the First Business
Integrity Forum, Audit Chile holds a leadership position within the Forum. This
reflects its dedication to fostering business integrity through initiatives aimed
at mitigating mistrust and curbing unethical practices in the corporate sector.
Training 2024
Training in anti-corruption policies and Code
of Ethics
Training in policies and practices against
sexual harassment, workplace harassment, and
violence at work
Company
Number of
people
Training hours
Scope with
respect to the
total number
of workers
Number of
people
Training hours
Scope with
respect to the
total number
of workers
Enel Chile (1)
552
5,513
99%
499
980
90%
Enel Distribución Chile and
subsidiary
553
4,581
99%
430
572
77%
Enel Generación Chile and
subsidiary
543
5,618
100%
380
519
70%
Enel Green Power Chile and
subsidiaries
291
3,096
99%
143
313
76%
Total
1,939
18,808
99%
1,452
2,384
79%
(1) Includes Enel X Chile.
[NCG 461 - 5.5]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Value and ethics pillars
91
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Human Rights Management
[GRI 2-23; 2-24; 2-25; 3-3; 413-1]
Respect for human rights serves as a guiding principle
that directs the company's activities and is fully
integrated into Enel Chile's corporate purpose and
values. The business model is founded on achieving
environmental, social, and financial sustainability,
collaboratively built with stakeholders to pursue
excellence, reduce risks, and uphold human rights
throughout the value chain.
Following the three United Nations Guiding Principles-
Protect,
Respect,
and
Remedy-
the
Guiding
Principles on Business and Human Rights, and the
guidelines for multinational enterprises established
by the Organization for Economic Cooperation and
Development (OECD), the human rights management
system has been structured around the following
pillars:
Human Rights strategic commitment
[GRI 407-1, 408-1, 409-1]
The company's strategic pillars include protecting
the environment and natural resources, taking
climate action, and promoting sustainable economic
development. These elements reflect our commitment
to decarbonization through electrification, which
aligns with the Paris Agreement's goals to contain
global warming.
The
Company
recognizes
that
mitigating
environmental degradation and climate change is
intrinsically linked to its social impact, which is why
it advocates for a fair and inclusive transition to zero
emissions.
Enel Chile's commitment to human rights is evident
in its Human Rights Policy, which is a key element
in preventing and mitigating negative impacts on
human rights while promoting decent work, inclusive
economic growth, and sustainable development.
Integrating this commitment into the company's
operational processes is essential.
Value and ethics pillars
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
1.
Commitment
Is articulated in:
• The strategic approach
to human rights in
business operations
• Public commitment
expressed in human
rights policy
• Integration of the
commitment into:
- policies and operating
procedures
- training topics and
practices
• Governance
2.
Process of due
diligence
Remediation plans are
structured as follows:
• Identification of key
issues
• Management of key
issues
• Relationships with
stakeholders: human
rights in practice:
- Workplace
- contracting and business
relations
- communities
- Customers
- cross-cutting issues
3.
Remediation plans
Is articulated in:
• The commitment to
provide an appropriate
solution in the event of
an impact
• Complaint channels
• Repair of previous
projects
1
2
3
92
1
The Company does not incorporate external audit processes or collaborations with NGOs or government agencies to address compelled
labor, as this item is not identified as a risk or impact on human rights.
The Company's commitment is demonstrated through
actions that ensure fair and safe working conditions
for employees and suppliers, prioritizing their health,
safety, and well-being while respecting the rights
of the communities and customers with whom it
interacts. This strategic approach focuses not only
on the reactive mitigation of risks but also on their
proactive management, identifying opportunities for
continuous improvement and the creation of shared
value.
Human Rights Policy and Governance
Our Board of Directors approved the Human Rights
Policy in 2016 and updated it in 2021 to align with
international standards and our operations. This
policy builds on our existing codes of conduct, such
as the Code of Ethics and the Zero Tolerance Plan for
Corruption, reinforcing and expanding their content.
The content of our policy refers to internationally
recognized human rights, understood as those
expressed in the United Nations (UN) International
Bill of Human Rights and to the principles relating
to rights set out in the fundamental Conventions
of the International Labor Organization (ILO) and
the Declaration on Fundamental Principles and
Rights at Work. The Company also adheres to the
10 Principles of the United Nations Global Compact
and the Organization for Economic Co-operation
and Development (OECD) Guidelines for Multinational
Enterprises, among other international references.
The Company addresses respect for human rights
in employment practices and relationships with the
community and society through the 12 principles
of the policy. This results in the rejection of modern
slavery, forced or compulsory labor, child labor, and
human trafficking1, as well as the promotion of diversity,
inclusion, and equal treatment and opportunities for all
individuals, ensuring that they are treated equitably and
valued for their uniqueness. In addition, it emphasizes
the preservation of biodiversity and the environment,
as well as the rights of indigenous/original peoples,
local communities, and the communities in which it
operates.
The policy principles have been established by
assessing their significance to business operations and
relationships. The results informed this assessment of
consultations with pertinent stakeholders, including
individuals within our organization, suppliers, human
rights experts, think tanks, NGOs, and other companies,
in line with the UN Global Compact Guide for Business:
how to develop a human rights policy.
Enel Chile’s commitment aligns with the "United
Nations Guiding Principles on Business and Human
Rights: Implementing the United Nations Framework
for
Protect,
Respect
and
Remedy."
Engaging
stakeholders is essential for fulfilling the obligation to
uphold human rights. This includes actively listening
to them through various processes and incorporating
their perspectives into the decision-making. This
commitment is reflected in community management,
collaborative transition strategies, and materiality
processes, among other initiatives.
The
Company’s
organizational
and
corporate
governance model is founded on principles of
transparency and accountability. It establishes a
governance framework that clearly delineates the
tasks and responsibilities of the primary bodies
involved in our corporate governance. Incorporating
this
commitment
across
all
pertinent
internal
functions and processes is essential for preventing
and addressing adverse effects on human rights while
also promoting decent work, inclusive economic
growth, and sustainable development.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Value and ethics pillars
93
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Relationship with our Human Rights Stakeholders
Supplier Relations
Enel Chile requires our suppliers to ensure quality
while adopting best practices in human rights, working
conditions, safety, environmental responsibility, and
data protection. Our purchasing processes promote
sustainable
development,
social
stability,
free
competition, equal treatment, non-discrimination,
transparency, efficiency, and compliance with local
laws. All procurement product categories are initially
assessed for risk based on integrity and environmental,
social, and economic criteria.
Community Outreach
Enel
Chile's
commitment
reflects
a
deep
understanding of how its operations impact the
communities it serves and the importance of fostering
responsible relationships within a framework of
unwavering respect for human rights. It recognizes
the interdependence among the overall well-being of
the community, economic and social development,
and individual welfare. Therefore, it is dedicated to
sustainable investments and the promotion of cultural,
social, and economic initiatives that benefit both local
and national communities. This includes advancing
social inclusion through education, training, and
access to energy.
The Company encourages all stakeholders it interacts
with to respect cultural, social, and economic
diversity. It reaffirms its commitment to the United
Nations Declaration on the Rights of Indigenous
Peoples, particularly focusing on vulnerable groups
and contexts affected by conflict and heightened
risk. The Company is committed to ensuring that all
stakeholders, including indigenous communities, are
engaged in the development of initiatives, as it believes
that community participation is essential throughout
the process.
Value and ethics pillars
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
HUMAN RIGHTS POLICY
STATUTE OF THE
PERSON
FISCAL
STRATEGY
H
U
M
A
N
RI
G
H
T
S
P
O
LI
C
Y
Cybersecurity
Digital accessibility
Harassment
Diversity and inclusion
Remuneration
Health and well-being
Additional on-site check
Stop Work
Reporting Policy
Code of Ethics
Zero tolerance plan
for corruption
Anti-bribery
Global Compliance
Program
Environment and
biodiversity
Suppliers
Customers
Communities
Enel People
94
Customer Relations
Enel Chile is committed to providing a fair energy
transition through innovative and inclusive services.
We strive to respond appropriately and promptly to
the suggestions and complaints of our customers
and
consumer
associations,
utilizing
various
communication methods such as telephone service,
virtual branches, and phone assistance, among others.
Moreover, we encourage our products and services to
be accessible to everyone and never compromise the
safety and well-being of our customers as much as
reasonably foreseeable.
The Company is motivated to maintain inclusive
and
respectful
institutional
and
commercial
communications. We respect confidentiality and the
right to privacy, and we are committed to using the
information and data of our employees, customers,
and other stakeholders correctly.
Enel People Relations
The Company is committed to respecting and
promoting globally recognized labor rights. This
entails rejecting harmful behaviors like modern
slavery, forced labor, and human trafficking. It also
entails encouraging diversity, inclusiveness, and equal
chances for employees, ensuring that all persons are
treated fairly and recognized for their uniqueness.
Human Rights Training
[GRI 412-1]
Human rights training and awareness processes
for workers, suppliers, and contractors are key to
incorporating respect for human rights into the
operations. In 2024, we carried out more than 283
hours of training for workers on human rights issues,
covering more than 99% of the employees.
Human Rights Due Diligence
Since 2016, the due diligence process has been
systematically refined into three-year cycles and
aligned with international standards. This helps
identify areas for improvement and create action
plans for integrating policies across Enel Group. Enel
Chile's human rights due diligence ensures meaningful
stakeholder
engagement
and
commitment
to
advancing human rights in its operations and value
chain.
This approach covers the countries and territories
where we operate, along with our diverse business
lines and corporate functions, such as supply chain
management, our communities, and our customers.
This process entails the systematic identification,
prevention, mitigation, and accounting for potential
negative impacts stemming from the Company's
operations. It considers the primary stakeholders
who may be affected, including local communities,
Indigenous peoples, migrants, women, employees,
contractors, suppliers, and customers, among others.
We
analyzed
the
country's
circumstances
by
consulting relevant stakeholders and experts across
various sectors. This helps us understand the context
in which the Company operates regarding human
rights and identify the primary hazards associated
with the business.
In order to assess the effects, we analyzed the
operational processes and the policies implemented in
the human rights sector. Furthermore, we evaluate our
organizational and control systems to determine the
actual and potential consequences of the Company’s
operations. This is accomplished on three separate
levels:
• Conducting a gap analysis
• Stakeholder interviews
• Plant analysis (sites)
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Value and ethics pillars
95
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Once situations related to human rights are detected,
they are corroborated and validated with the relevant
areas. Subsequently, they are classified as "afflictions"
or "risks" in human rights, for which a plan is defined
that identifies preventive and corrective actions,
promoting continuous improvement in various areas
of the Company. This allows for the early detection of
risks and opportunities, a crucial activity to anticipate
and mitigate negative impacts and promote a more
sustainable environment. All preventive and corrective
actions are monitored during the execution of the
Action Plan until the cycle is completed.
This due diligence strategy benefits the Company
in terms of risk management. It contributes to more
inclusive and human rights-respecting development,
ensuring that progress is aligned with the values of
responsibility and transparency.
Due Diligence Results in 2024
Representatives of various stakeholders, including
communities, clients, suppliers, institutions, workers,
unions, contractors, and subcontractors, identified the
primary human rights-related issues during the Due
Diligence process initiated in 2024.
The
eight-month
process
involved
integrating
various technologies, including solar, geothermal,
wind, hydroelectric, and open and combined thermal
cycles. Infrastructure, grids, markets, and retail were
all considered in the distribution line. Moreover, the
perspective of transversal areas and the facilities
currently under construction or expansion was also
incorporated.
In 2024, the Company conducted 279 surveys
and interviews, 80% more than the number of
consultations carried out during the previous cycle.
Value and ethics pillars
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Country risk
assessment
Context analysis
Context analysis
in Chile
in Chile
Gap analysis
Gap analysis
Stakeholder Interviews
Stakeholder Interviews
Analysis of Power
Analysis of Power
Plants (sites)
Plants (sites)
Definition of preventive and
Definition of preventive and
corrective actions
corrective actions
Enel impact assessment in
Chile
Plan of action
Monitoring plan
Action Plan Monitoring
Communication of the
process and results
96
The mechanisms we implemented offered a more
extensive comprehension of the general perceptions
regarding potential non-compliance and compliance
with the twelve commitments of the Human Rights
Policy.
This process identified eight findings related to human
rights commitments, of which 16 were classified as
risks and two as impacts. These results were presented
to the Management Committee to inform them about
the main findings. The following are the due diligence
results by Company:
Efforts are underway with the relevant departments
to develop prevention and mitigation strategies for
inclusion in the Action Plan. All commitments outlined
in this document will be monitored to ensure their
implementation and adherence to the established
agreements. Based on the findings identified during
this cycle, the company will evaluate updating its risk
matrix.
Access to Redress
Enel Chile consistently monitors the impact of its business activities on stakeholders and, when necessary, is
dedicated to providing appropriate redress. The Company ensures access to redress through complaint
mechanisms that enable individuals, both within and outside the company, to report issues and receive meaningful
responses. In line with the third pillar of the United Nations Guiding Principles, several channels for accessing
remedies have been established:
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Value and ethics pillars
CROSS
GRIDS
MARKET
RETAIL
NDE
POWER GENERATION
TOTAL
HYDRO
THERMO
OIL GAS
WIND
SOLAR
GEOTHERMAL
PROJ.
CONSTRUCTION
2
0
2
0
0
0
0
0
0
0
0
CROSS
GRIDS
MARKET
RETAIL
NDE
POWER GENERATION
TOTAL
HYDRO
THERMO
OIL GAS
WIND
SOLAR
GEOTHERMAL
PROJ.
CONSTRUCTION
16
6
2
0
0
1
2
3
1
0
1
97
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Assisting Communities
Main channels for reporting access to redress
A whistleblowing channel is available for both internal
and external stakeholders. Complaints are managed in
accordance with the Human Rights Policy, specifically
in the section titled "Management of complaints
and claims from stakeholders." For additional details,
consult the section on Corporate Ethics' Values and
Pillars.
The Company has various processes and tools
accessible to the communities in the areas influenced
by its activities. Individuals wishing to contact Enel
Chile can do so through local channels, such as the
company's local team or the designated representative,
or, in the case of isolated rural communities, through
local leaders who periodically gather complaints.
Value and ethics pillars
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
STAKEHOLDERS
COMPLAINT OR DENUNCIATION MECHANISMS
Open to anyone and
any Stakeholder
Enel’s ethics channel allows anonymous and confidential reporting.
Communities
Dedicated contact person, toll-free phone numbers with processes and
tools available to communities in the area of influence of the operations.
Customers
Specific channels for resolving and preventing complaints(via email,
website, toll-free number)
Who can submit
a complaint or a claim?
Any person affected or
related to the project
(define ages with the
community)
Family groups,
associations,
organizations
What types of
complaints and claims
can be registered?
Everything related to
Enel
Actions, activities,
projects or programs of
company responsibility
Current or previous
processes
Who can I file a
complaint or claim
with?
Sustainability Team
Other Enel staff, who
will listen to your
questions and refer you
to the right person
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
Valores y pilares éticos
99
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Tax Transparency
Enel Chile adheres to the Enel Group's Tax Strategy.
This approach relies on a framework of principles
and guidelines rooted in the values of transparency
and legality in tax management. It also takes on the
responsibility of promoting awareness and adherence
to these standards. The Board of Directors of Enel
Chile has approved this strategy to ensure consistent
taxation management across all subsidiaries of the
Company.
Compliance
The Company follows the principle of legality by
promptly applying tax laws to ensure that the relevant
tax rules or regime are fully respected. Similarly, Enel
Chile avoids participating in domestic or cross-border
activities that involve creating artificial structures
solely to gain unfair tax benefits, especially when such
actions contradict the purpose or principles of the
applicable tax regulations system.
Related business transactions
All intercompany transactions follow a transfer pricing
policy, which the Enel Group has adopted in line with
the arm's length principle, the international standard
established by the OECD Model Tax Convention.
By establishing intercompany relationships based on
market prices and conditions, the Enel Group ensures
the generation of value in the locations where it
operates. The Group advises that members enter into
agreements with local tax authorities concerning the
establishment of transfer pricing methods, allocation
of profits and losses to permanent establishments, and
application of rules on cross-border flows between
the Enel Group’s companies to minimize tax risks and
comply with applicable regulations.
For business-to-business financial transactions, the
Enel Group has implemented a centralized financing
model for its subsidiaries. This model requires the
Group's two financial companies, Enel Finance
International (EFI) and Enel Finance América (EFA), to
consolidate part of the treasury and financial market
activities, serving as the primary point of reference in
managing the financial or liquidity needs arising from
the operating entities. In the transactions that Enel
Chile has or may have 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 mandated by International
Financial Reporting Standards (IFRS No. 13).
Tax Transparency
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
100
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 uses only widely applicable tax incentives
available to most taxpayers who carry out the same
operation or economic activity, provided that their use
is in line with the intention of the legislator, respecting
all specific regulations and also taking care that the
incentives are in line with the industrial and operational
objectives and are consistent with the economic
substance of the investments.
Tax governance
Enel Chile's Tax Affairs Management is responsible for
implementing the company's tax strategy. It oversees
compliance, planning, and monitoring in this area at
the local level.
The Company has also adopted a set of rules,
procedures, and standards that form part of the Enel
Group's broader system of organization and control.
These apply at both the Group and local levels of
each subsidiary. The documents are published on
the Company’s Intranet and are accessible to all
employees. They establish the general rules of conduct
applicable in tax matters for the development of their
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
Enel Chile has established a Tax Control Framework
(TCF) to provide clear and consistent guidelines for
effectively managing tax risk within the Company.
This framework outlines the methodological norms
for evaluating, controlling, and managing tax risk
in accordance with the principles and procedures
defined in the tax strategy.
The TCF aims to identify sources of tax risk that may
arise, with the framework focused on compliance with
regulations in this area. It maps the corresponding
processes and activities, identifies potential risk
events, and associates control measures. Among the
control measures to reduce uncertainty regarding tax
positions and, consequently, tax risk are the following:
the formation of an internal analysis committee,
consultations with external advisors, and early
discussions with the tax authority to clarify the correct
interpretation of tax regulations. This is conducted
periodically, and its results are communicated to the
relevant social functions and bodies to determine the
most effective way to mitigate these risks.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Tax Transparency
101
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Some figures (*)
Figures in Ch$ million
2024
Revenue from sales to third parties
3,947,104
Income from intra-group transactions with other tax jurisdictions
30,499
Pre-tax profit/loss
225,972
Tangible assets other than cash and cash equivalents
7,825,472
Income tax paid
201,994
Income tax accrued
68,269
(*) The figures consider the companies that make up Enel Chile's consolidation perimeter.
Transparent relations with tax authorities and all our Stakeholders
Enel Chile promotes transparency and integrity in
our interactions with tax authorities, stakeholders,
and third parties. This commitment allows us to
concentrate on engaging with and managing the tax
concerns of a diverse array of stakeholders. We adopt
a collaborative approach with all relevant institutions
and associations to ensure the effectiveness of the
tax system by pursuing collaboration agreements
with the tax authority in jurisdictions where regulatory
frameworks permit and are accessible.
Since 2018, it has published annually the Total Tax
Contribution Report, available on the Company's
website, which can be found at the following link:
https://www.enel.cl/es/sostenibilidad/nuestro-
compromiso/transparencia-fiscal-y-reporte.html.
Enel Chile provides internal channels to report
potential tax-related infractions. The Code of Ethics
outlines the framework under which the Company
operates, including specific provisions to promote
effective implementation and requirements necessary
for adhering to the tax strategy.
Dialogues, responsible tax practices, and future tax legislation
Enel Chile is committed to fostering responsible tax
discussions and practices and making substantial
contributions to public tax policies that support the
development of future tax legislation. This is achieved
through active participation in sectoral organizations
and guilds and utilizing the tools provided by current
legislation that enable us to collaborate in the
development and creation of new tax policies and
regulations.
Permanent training
Enel Chile encourages continuous training in tax sustainability and compliance across all levels, including the
company's management bodies.
Tax Transparency
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
103
CHAPTER 3
Strategy and
RISK MANAGEMENT
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
105
STRATEGY AND
RISK MANAGEMENT
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 accomplish this objective, the Company
concentrates on two primary areas: the
decarbonization of the energy matrix in Chile
and the increase in electrification in users'
ultimate consumption.
Integrating Sustainability into the
Business
Enel Chile incorporates the expectations of its
stakeholders into the company's strategy, which
was identified during the materiality process.
Risk Management
Understanding the economic, environmental,
and social factors is crucial for identifying the
external and internal elements that may pose
potential risks to the company's business.
106
1
https://www.coordinador.cl/wp-content/uploads/2025/01/CEN_Informe_Mensual_SEN_ene25.pdf
2
National Energy Commission, Annual Report 2023.
Market context
Chile has formally stated its commitment to CO2
neutrality by 2050 and is a signatory to the Paris
Agreement. Decarbonization and electrification are
anticipated to serve as pivotal factors in achieving
net-zero objectives. The evolution of energy demand
is expected to be closely associated with the potential
integration of electricity within the country's overall
energy consumption framework. In this context, it is
essential to underline the nation's current electric
mobility policy, which includes the Santiago public
transit system and the infrastructure for charging
stations—both of which Enel Chile supported and
developed in collaboration with its key partners.
The market scenario has faced significant challenges
in recent years, influenced by factors such as the
Russia- Ukraine conflict, accelerated adverse effects
of climate change, and ongoing inflationary pressures,
among other variables. The factors above have directly
influenced the energy sector in Chile, resulting in
various challenges as well as new opportunities.
Among the identified challenges, the impact of climate
change is particularly notable, presenting as extreme
events that have emerged in unprecedented forms.
This is especially evident in the central-southern
region of the country, where significant occurrences
of extreme winds and precipitation were recorded,
notably in August 2024.
The country's energy agenda is broad, considering
not only the issues related to meeting long-term
national commitments on climate change but also
some necessary structural reforms in the short term to
ensure the system's balance. For example, the energy
storage framework and the review of the short-term
system operation are necessary to continue replacing
oil and coal thermal plants with renewable energies and
batteries. Similarly, the modernization of distribution
systems is required to ensure operational continuity in
cases of critical climate events, which could begin to
materialize more frequently in the coming years. In this
matter, there is consensus in the Chilean market that
there is an opportunity to update the regulatory model.
The change in customer needs and the investments
required to meet the demand for electrification are
fundamental, and Enel Chile prioritizes them.
An attractive growth opportunity
The country has extraordinary potential for renewable
sources. According to the National Energy Policy
and the government's Net Zero commitment, it is
estimated that 80% of the installed capacity will be
renewable by 2030. At the end of December 2024,
the National Electric System (SEN) recorded 36,778
MW of installed capacity (considering 995 MW in
projects with a commissioning period), of which 66%
corresponds to renewable energies1.
Chilean energy demand is expected to increase by 41%
between 2023 and 20352, highlighting the need for
robust, upgradable, and accessible energy solutions
and a distribution reform to improve the grid's quality
and resilience.
The country is strengthening its position as a leader in
the clean energy sector within the region, supported
by its geographical features, which offer significant
potential for renewable energy and storage capacity.
This, along with the global demand for clean energy,
will enable Chile to become a competitive and
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Market context
107
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
1
Generators of Chile, Bulletin December 2024 (www.generadoras.cl).
influential player in the renewable energy industry in
the years ahead.
By December 2024, renewable energies accounted
for 79% of the monthly generation in the electrical
matrix, with daily peaks of up to 95% participation.
The main contributions came from hydropower, which
accounted for 34% of the country's total generation,
followed by solar energy with 28% and wind energy
with 14%1.
Currently, Enel Chile has a market share of 24% in
terms of installed electric generation capacity and
45% in terms of energy sales.
This environment is demanding not only a paradigm
shift but also generating challenges for the industry,
and the Company is seizing opportunities to continue
growing and to keep sustainability at the core of its
strategy, such as partnerships with municipalities
and private companies in the electrification of
their operational fleets. The changing trends in the
behavior of young customers and new requirements
from large customers regarding their demands for
clean energy and sustainable energy services are a
growing opportunity for Enel Chile, which can provide
an integrated service offering of renewable energy,
electrification, and electromobility.
Market context
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
108
[NCG 461 – 4.2]
Enel Chile’s Strategy
Long-term strategy
The Enel Chile Group has a clearly defined long-term
ambition: zero CO2 emissions by 2040. To achieve this,
we focus on two main areas.
1. Decarbonize Chile's energy matrix by constructing
new renewable energy plants and energy storage
systems (BESS) in addition to disconnecting the
thermal capacity from the system; and
2. Increase
the
electrification
of
end-user
consumption
Given that electrification is fundamental to achieving
the "zero emissions" ambition, the Company has
developed and strengthened a commercial offering
focused on customer needs, understanding their
requirements and directing efforts towards them.
The
integrated
supply
approach
enables
the
provision of electricity from renewable sources and
comprehensive services to customers, helping them
achieve their climate goals, efficiency requirements,
and reliable supply. Electrification is crucial in this
process, and grids will also play a significant role. With
respect to end consumers, including both households
and cities, the Company has been developing a diverse
array of products to facilitate the concept of circular
cities, thus enriching their customers’ lives.
Enel Chile updates its strategy every year for the
upcoming three-year period. The new Strategic Plan
2025-2027 was published on November 21, 2024, and
is described below.
Strategic plan 2025-2027
The company’s strategy is based on three pillars announced in 2023, which have been included in the new plan.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
1
Resiliency, flexibility and value
generation. The Company’s
investments will focus on the
best opportunities in terms
of risk and return,
maintaining a flexible
approach.
2
Efficiency and effectiveness
remain the Group’s objectives,
aiming to enhance cash
generation and capital
productivity.
3
Financial and environmental
sustainability remains at the core
while the financial structure is being
strengthened
109
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Company strategy update
Over the last five years, the group has established a
comprehensive growth strategy focused on increasing
renewable energy generation capacity and expanding
its distribution grids. The forthcoming strategy is
outlined to boost the return on investments, sustain
growth, and generate additional value over the coming
years.
To maintain stable profit margins, the Company is
implementing a more optimized trading strategy
aimed at reducing exposure to the spot market.
This strategy is designed to uphold financial stability
through a conservative and risk-mitigating approach.
Targeted investments are currently being allocated
to the most promising renewable energy initiatives
to maximize returns and contribute to a sustainable
future. Customers are increasingly aware of the critical
necessity for decarbonization, leading to heightened
expectations for renewable energy solutions and
efficiency improvements. In response to market
demands, the Company is implementing an integrated
range that transcends traditional commodities,
delivering comprehensive solutions tailored to meet
customers’ needs.
In distribution, they continue to advocate for
reforming distribution and modernizing the regulatory
framework to enhance the resilience of assets against
adverse climatic conditions. This will help them
optimize the value of their distribution grids, fully
satisfy their customers' needs, and guarantee long-
term sustainability.
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Investments and management actions will continue to pursue value creation
and de-risking
A more optimized
commercial strategy
Reducing exposure to
the spot market while
maintaining stable profit
margins
Strategic selection
of renewable
investments
Selecting the most
promising and profitable
renewable energy
projects
Focus on integrated
offerings
Focusing on climate-
aware clients that are
demanding renewable
energy and efficiency
services
Pursuing the
optimization of
distribution value
Advocating for
distribution reform
to enhance asset
resilience and
value through
regulatory framework
improvements
A
B
Risk-return profile optimization to enhance value creation
110
The update to the business strategy aims to achieve
the same profitability while optimizing the necessary
investments to reach these goals, all supported by its
assets and a diversified supply strategy.
Compared to the last year of the previous plan, a
reduction in total sales volumes can be observed while
maintaining the margin. This is possible due to the
optimization of their portfolio management strategy.
By leveraging the updated vision of greater availability
and more competitive natural gas prices, along with
the additional deployment of BESS projects in the
Chilean system, the Company can significantly reduce
its purchases in the spot market, especially during
nighttime hours when spot prices are expected to be
higher than before the plan.
Indeed, due to more competitive natural gas prices
(including both Argentine natural gas and LNG),
supported by more efficient combined cycle plants,
a higher thermal dispatch is anticipated compared
to the previous plan for 2026. This can be seen in
the expected reduction of around 7 US$/MWh in its
"Variable Thermal Cost," which will enable increased
dispatch during the night in the North and, primarily, in
the central region of the country.
Furthermore, it has been decided to optimize energy
purchases from third parties, taking into account
the projected energy sales, self-generation, and
particularly thermal dispatch due to appealing gas
prices and spot prices.
However, if competitive opportunities remain visible,
the Company will continue pursuing sales with more
favorable prices to boost its portfolio. Enel Chile
continually monitors market conditions to maximize
the value extracted from the portfolio.
Given all these factors, the generation business's
EBITDA/sales (MWh) is projected to increase by 19% by
2026 compared to the previous plan. This improvement
is attributed to new contracts signed, better pricing,
and lower average supply costs resulting from
optimizing their operations portfolio.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
46.0
2026E
New plan
38.7
2026E
Old plan
Update the commercial strategy to de-risk and optimize the
portfolio value
A
SALES Gx
(TWh)
SOURCING
(TWh)
EBITDA GX / SALES Gx
(USD/MWh)
30.3
21.5
8.7
2026E
New plan
33.4
25.5
7.9
2026E
Old plan
-9%
+19%
Regulated sales
Free market sales
Net spot
Own production(1) /
Sales Gx (%)
2026E
Old plan
Net spot
PPA buy
Renewables
Thermal
2026E
New plan
64%
65
26
67
20
79%
Avg. sourcing
(USD/MWh)(2)
(1) Own production includes renewable, BESS and thermal production.
33.4
6.6
5.3
21.5
30.3
3.0
3.4
23.8
(3.6)
(1.9)
0.4
2.0
Avg. Price PPA2
(USD/MWh)
PPA buy
Own production1
Commercial strategy permits the reduction of short-position, delivering steady margins with lower risk
(2) Average PPAs price includes only energy on regulated and free market sales.
111
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
In recent years, the PPA portfolio has shifted towards
the free market segment, backed by a mix of
diversified and efficient renewable generation. This
strategy has reinforced the Company's standing in
robust and profitable sectors, including mining and
other industrial customers.
In 2024 and 2025, several regulated contracts will
expire, including the 2008 auction at the end of 2024
and those from 2006 and 2013 at the end of 2025. This
expiration is expected to lead to a decrease in their
average contracted portfolio, which will be partially
offset by the regulated auction awarded in April of this
year, with a 20-year PPA beginning in 2027, along with
new PPAs signed in the free market in recent years
that have seen a revaluation since 2023, making them
more profitable than the regulated auctions.
Furthermore, the product and service offerings
beyond electricity are included, with the integrated
offering providing a competitive advantage for Enel
Chile, assisting customers in navigating electrification
and decarbonization.
The robustness of the Company's portfolio is based
on its long-term structure, with an average duration
of 14 years. This ensures a significant level of stable
and recurring revenues and EBITDA in the forthcoming
years.
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Higher average duration: 14 years
Geographic strategy
selected to reduce prices
exposure
Avg. PricePPA
(USD/MWh)
PV(1)
(MWp)
Demand
response(1)
(MWh)
14%
5%
81%
Commercial strategy was reviewed to enhance resilience, balance
risk-return and the value of services
SALES Gx
(TWh)
PPAs GEOGRAPHIC LOCATION
PPAs BY RESIDUAL DURATION
72
67
7.4
10.2
6.6
9.0
A
2025-2027
North
Regulated sales
2028-2033
Center
Free market
sales
>2033
South
2024
2027E
2024
2025E
2026E
2027E
33.4
30.6
30.3
31.4
Enel X main products
2024
2027E
B2B
Integrated offering
22%
20%
15%
58%
22%
63%
58%
42%
70%
30%
(1) Cumulative figures.
112
Hydrology plays a key part in the supply strategy. Despite the high precipitation in the last two years, the new
strategic plan uses a conservative forecast based on the average hydroelectric generation of the last decade,
around 10.7 TWh per year.
(IN BILLIONS OF US$)
Impact
Sensitivity for the 2025-2027 period
Hydrology
10%
~ 200
-10%
~ (200)
Hydrological Sensitivity
The gas portfolio offers flexibility and competitive
supply prices, supported by the long-term LNG supply
contract. This contract, along with agreements with
Argentine gas suppliers, enables the operation of
efficient combined cycle plants and participation in
the gas trade.
In this regard, Enel Chile has secured firm contracts
with Argentine suppliers for all of 2025. These
agreements guarantee the supply of Argentine gas
to northern Chile, utilizing the GasAtacama pipeline to
provide a regular supply to the Atacama plant and the
central region of the country.
By strategically managing the supply portfolio, the
Company expects greater coverage through its own
generation, including BESS technology during non-
solar hours. This cautious approach, combined with
natural gas capacity, minimizes purchases in the spot
market during non-solar hours. By 2027, the aim is to
significantly cut nighttime purchases, leveraging PPA
profiles and diversifying the supply portfolio as an
effective risk mitigation strategy.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
Sourcing strategy continues to bring flexibility and diversification,
reducing the short position
HYDRO GENERATION
(TWh)
GAS SUPPLY SOURCING
ENERGY SOURCING
(TWh)
A
2020
2021
2022
2023
2024
Avg. 10
years1
9.7
7.7
9.8
12.2
13.7
10.7
North Zone
Mejillones LNG
Terminal
Quintero LNG
Terminal
Center Zone
Argentine
natural gas
Gas Atacama
gas pipeline
operative
(Argentina)
NEW
3.6
5.1
4.9
6.0
13.7
3.6
3.6
5.5
7.9
10.8
3.6
3.6
3.6
1.3
2.3
2024
2027E
2024
2027E
High volatility push for a realistic
assumption using the average
hydrology of the last 10 years
Flexible fleet and enough LNG
and Argentine gas to backbone
sales strategy
Hydro
REN & BESS Thermal
PPAs buy
Net Spot
Solar hours
NonSolar Hours
Net Spot
(1) Considers 2015-2024E.
10.6 TWh
Avg. 5 years
33.4
31.4
113
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Additionally, by the end of 2027, 0.6 GW of renewable
installed capacity will be added, increasing the total
installed capacity to 9.4 GW, which includes batteries.
This will raise the renewable share to 80%, enhancing
flexibility, profitability, and competitiveness.
The
investment
plan
for
the
period
totals
approximately US$1.4 billion, with US$0.8 billion
allocated to BESS and wind farms. As previously
indicated, the projected CAPEX amounts are being
reduced, margins are being maintained, and stable
profitability for shareholders is being sustained.
This updated strategy has created a more balanced
portfolio
that
aligns
with
market
conditions,
safeguarding the Company against potential shifts
in price trends, new investment expenses, and
regulatory changes.
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
3%
7%
1%
29%
60%
Selective investments in renewables to support profitability, continue
focusing on BESS and Wind
TOTAL GENERATION CAPEX
(USD bn)
DEVELOPMENT CAPEX BY
TECHNOLOGY
ADDITIONAL CAPACITY
(GW)
A
2024-26
Old plan
2025-27
New plan
2024
Additional
capacity
2027E
8.9
0.6
9.4
Solar & Geo
Wind
Hydro
BESS
Others(1)
Development
Management
1.9
0.5
1.4
1.4
0.6
0.8
-28%
6.9
0.1
0.5
7.5
Total renewables
capacity
(GW)
2025-27
0.8 USD bn
(1) Others include thermal and trading capex
114
In the distribution sector, a strong regulatory framework
plays a crucial role in drawing essential investments for
the transition and enhancing resilience to the growing
occurrence of climate change events.
Regulatory frameworks should consider various
aspects, including appropriate remuneration rates
and incentives for service quality and grid reliability.
Consequently, there has been a push for Chile to
implement these changes swiftly. While this is not yet a
reality in Chile, a business case has been developed for
the distribution subsidiary, where EBITDA generation
will be allocated as an investment. The investment plan
for 2025-2027 includes utilizing almost all the EBITDA
despite the regulatory discrepancies with the market
reality. Most of the funds will be directed toward
strengthening electrical conductors, acquiring new
remote-control equipment, enhancing transformer
capacity, and reconfiguring medium voltage lines.
The Enel Chile Group is willing to invest more
and implement a resilience plan if an appropriate
regulatory model and adequate remuneration are
established. The Company is prepared and possesses
the experience and resources to do so.
Regarding the review of distribution tariffs, the final
regulatory decree for the 2020-2024 cycle was
published at the beginning of June this year without
the approval of the Comptroller's Office. The decree
with the reasoning taken should be published during
the first months of 2025 so that the SEC can instruct
the process of re-liquidation of rates for the period
between November 2020 and May 2024.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
Capex optimization in distribution to address market evolution while
waiting for a new regulatory framework
DISTRIBUTION TARIFF
REVIEW PROCESS
GROSS CAPEX
MAIN KPIs
B
Quality, resiliency
& digitalization
6% Returns
(real terms post tax)
VAD 2024-2028
(estimated timeline)
VNR = 2.1 bn USD
(Dec 2022)
37%
33%
19%
17%
48%
46%
2024-26
0.3 USD bn
2025-27
0.4 USD bn
Energy
distributed(1)
(TWh)
SAIDI(2)
(min)
End users
(millones)
Remote control
equipment
(000´)
15.6
122
2.3
3.4
14.7
150.3
2.2
2.9
2024
2027E
Old plan
New plan
(1) Data only for Enel Distribución Chile concession area.
Grids management
Connections
(2) SAIDI average LTM (Last Twelve Months). Does not include data related to the unforeseen and irresistible weather event of August 2024, due to
the fact that Enel Distribución Chile S.A. has a pending appeal on the Santiago Court of Appeals regarding the force majeure claims.
Initiation study
Consultant final
report
(Q1 2025)
Enel Dx comments
Preliminary
Regulator technical
report
(Q2 2025)
Enel Dx comments
Final Regulator
technical report(H2
2025)
Expert panel
Final report
(Q1 2026)
115
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Regarding
the
2024-2028
tariff
process,
the
preliminary technical report from the consultant was
received in September. A committee reviewed this
report, and the final version is expected by the end
of 2024. Following the consultant's final report, it is
estimated that between March and April 2025, the
regulator will publish the preliminary technical report
for this new cycle. An improvement in remuneration
is anticipated for this new process, considering the
newly approved Replacement New Value (VNR) and
all the economic and technical assumptions from
December 2022 that are included in the report.
2025-2027 Investment plan
An investment strategy of approximately US$1.8 billion
has been allocated for the years 2025-2027.
During this period, Enel Chile shall prioritize the
following:
• The consolidation of its renewable energy portfolio;
• the strengthening of their resilience; and finally
• the optimization of grid operations.
This investment plan includes US$1.4 billion in the
generation business, representing nearly 75%, which
will significantly contribute to developing BESS,
continuing with the strategy presented last year.
Additionally, an investment of approximately US$400
million is anticipated for the distribution segment,
consistent with:
• The current EBITDA contribution
• The current regulatory model.
However,
the
allocated
investments
are
more
significant than the figures of the previous plan and
focus on enhancing the resilience of both Low —and
Medium-Voltage grids while guaranteeing service
quality for customers.
[NCG 461 - 4.3]
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Investment plan designed to enhance the resiliency and performance of
portfolio
CUMULATED GROSS CAPEX
39%
12%
2%
15%
23%
49%
32%
27%
2025-27
1.8 USD bn
2025-27
1.8 USD bn
Development
Customers
Management
Renewable
BESS
Thermal
Grids
Others (1)
Grids
Capex focused on optimizing
grids operation and new clients’
connections
Integrated Business
Consolidation of renewables
growth; mature pipeline for
potential new opportunities
Asset management capex
focused on hydro and thermal
fleet reliance and efficiency
(1) Others include Enel X, trading and services capex.
116
2025-2027 Financial objectives
As a result of all the above, the Company's Board of
Directors, in a session held on November 15, 2024,
approved Enel’s Chile 2025- 2027 Strategic Plan.
The macro elements of the Strategic Plan foresee
an accumulated EBITDA of approximately US$4.4
to US$4.6 billion and an accumulated CAPEX of
approximately US$1.8 billion for the 2025-2027
triennium.
Considering that the contents of the aforementioned
Strategic Plan are based on hypothetical projections
that may or may not come true in the future, its effects
cannot be determined at this date.
Concerning shareholder remuneration, Enel Chile
has confirmed the dividend payout ratio of the
previous plan, maintaining a minimum ratio of 50%
while ensuring the Company's financial sustainability.
This plan will be discussed in further detail with all
shareholders during the April Annual Shareholders'
Meetings.
The Company is convinced that this dividend policy
will allow it to continue with its sustainable strategy,
maintain an adequate financial position, and create
long-term value.
To visualize the time horizons, refer to the Annex "Time
Horizons".
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
2024
Adjusted (1)
2025E
2026E
2027E
EBITDA
(USD bn)
1.4
1.3-1.5
1.4-1.6
1.4-1.6
Net income
(USD bn)
0.6
0.5-0.7
0.5-0.7
0.5-0.7
Dividend payout
(%)
Min 50%
Min 50%
Min 50%
Min 50%
(1) Excludes the noncash effect of the functional currency one-off.
117
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Integrating Sustainability into the Business Model
Enel Chile, as part of the Enel Group, seeks to enhance
the Company's resilience, flexibility, and shared value
creation through improved effectiveness and efficiency
of resources that bolster the Company's financial and
environmental sustainability. These three pillars serve
as the guidelines for the evaluation at the end of 2024
and support the strategy for the 2025-2027 period:
1. Profitability, flexibility, and resilience are prioritized
by implementing a highly selective approach to
capital allocation, aiming to optimize the risk/return
profile.
2. Efficiency
and
effectiveness
serve
as
the
fundamental forces propelling operations forward.
3. Financial and environmental sustainability: Enel
Chile aims to create value by addressing the
challenges posed by climate change.
This is how Enel Chile is committed to leading with a
comprehensive approach that combines profitability,
efficiency, and sustainability, thus promoting a
prosperous and responsible future for the Company
and its stakeholders.
2025-2027 Sustainability plan
In alignment with the strategy and considering the
outcomes of stakeholder engagement and materiality
analysis, Enel Chile establishes its Sustainability Plan.
This initiative focuses on meeting the business's
operational
responsibilities
and
commitments
while aligning with the United Nations' Sustainable
Development Goals. It is structured around specific
objectives within short-, medium-, and long-term
timelines, ensuring the Company's commitment
remains transparent and subject to verification.
Annually, these objectives go through a thorough
review and revision process that ensures alignment
with strategic guidelines, evaluates progress, and
integrates best practices. After a detailed analysis
of the context and relevant issues, the Company
determines its strategic direction by embedding
sustainability management into its operations and
throughout the value chain. The challenges outlined in
the Sustainability Plan are assessed each year by the
Board of Directors and provide a strategic framework
to meet stakeholders’ expectations and the market.
The Sustainability Plan addresses macro issues that
are mutually interconnected. Thus, a fundamental
pillar of Enel Chile’s commitment lies in its ambition to
reach zero emissions by 2040. This objective is based
on a sustainable business model that promotes the
development of generation from renewable sources,
supported by the security and reliability of the grid,
and oriented towards the clean electrification of
energy uses by customers. The Company promotes
the energy transition through the decarbonization
of electricity generation, the modernization and
digitalization of distribution grids, and the promotion
of electrification in the different energy uses.
Innovation, digitalization, the circular economy, and
sustainable finance serve as fundamental components
that propel and enhance Enel Chile’s growth. These
elements are integrated comprehensively, reinforcing
all strategic dimensions of the Company. This
approach aligns with a sustainable development
trajectory that honors both nature and human rights.
A robust governance framework underpins this
strategy, ensuring that stakeholders experience the
implementation of principles such as transparency,
equity, and integrity. This creates long-term value,
facilitating their growth and enabling them to navigate
challenges effectively.
[NCG 461 - 3.1 ii]
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
118
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
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
ambition
Zero emissions
119
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
ZERO EMISSIONS AMBITION
Reduction of Scope 1 GHG Emissions
Intensity Related to Power Generation
94 gCO2eq/kWh at the end of 2024
Redefined as the estimated range of CO2
Emissions by 2027
105-135 gCO2eq/kWh in 2027
For 2027, unlike in previous years, the
company establishes a forecast- rather
than a target- of how the company's CO2
emissions will be by the end of that year.
These emissions may range between 105 and
135 gCO2eq/kWh. This change allows for a
better estimate of the variables impacting the
company's operation, such as the variability
of hydrology and the centralized dispatch of
thermal generation by the National Electricity
Coordinator (CEN), which Enel Chile does
not directly control. Additionally, the national
energy transition requires the intensive use
of gas-fired thermal power plants to facilitate
the
disconnection
of
coal-fired
power
plants from the national electricity system,
thereby helping to reduce CO2 emissions
at the system level. Furthermore, updated
assumptions are included, such as the limited
development of renewable energy and energy
storage projects by third parties, along with
the potential increased demand for energy
from new players, including data centers.
This approach reinforces the company's
commitment to sustainability, transparency in
communication with the market, and support
for the country's energy transition.
At the heart of Enel Chile's commitment lies the ambition for zero emissions by 2040,
a roadmap aligned with the Paris Agreement's goals of limiting the average global
temperature increase to below 1.5°C compared to pre-industrial levels. This includes
targets certified by the Science Based Targets Initiative (SBTi), which addresses both
the direct emissions generated by the company's plants and the indirect emissions
produced upstream by suppliers and downstream by customers. To achieve this
ambitious goal, the company will not offset emissions but will focus on enhancing new
renewable capacity and hybridizing renewables with storage solutions.
The company is leading the energy transition by decarbonizing power generation,
digitalizing the distribution grid, and electrifying various uses. These efforts present an
opportunity for value creation and for achieving the goals of the Paris Agreement and
the Sustainable Development Goals defined by the UN more quickly. Additionally, the
company advocates for a just transition in accordance with the principles outlined in
the Just Transition Guidelines of the International Labour Organization (ILO), fostering
ongoing dialogue with its stakeholders: Enel workers, suppliers, communities, and
customers. Furthermore, a well-managed transition, besides advancing climate action,
can help mitigate related socio-economic impacts while promoting growth and
reducing inequalities.
PEOPLE
46% Women in Succession Plan1 Target
Applies at the Managerial Level in 2027
In Chile, people are at the center of the organization, benefiting from their well-
being, motivation, sense of responsibility, active participation, and entrepreneurial
spirit. Additionally, continuous learning is encouraged through programs designed to
enhance existing skills (upskilling) and acquire new ones (reskilling), thereby allowing
access to more advanced career paths.
Special attention is also given to the individuals involved in the decarbonization process,
with a commitment to fostering an inclusive work environment that promotes diversity
and individual talent. This environment enables everyone to feel acknowledged,
regardless of race, ethnicity, religion, gender, age, sexual orientation, or ability.
SUPPLIERS
Suppliers are essential partners for Enel Chile in advancing sustainability and
transforming the energy system, requiring changes and development in how we
operate and supply goods and services. Suppliers are expected not only to meet
necessary quality standards and comply with applicable laws and regulations but also to
commit to adopting best practices in governance, ethics, human rights, health, safety,
and environmental stewardship. Enel Chile collaborates with its suppliers to maximize
the economic, productive, social, and environmental benefits of this transition. It strives
to establish sustainable, innovative, and circular processes to reduce the impact of its
activities.
1
Target applies at the managerial level.
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
120
COMMUNITIES
938,000 beneficiaries during the 2024-2030
period; cumulative value for the country2
Responsible community relations are a crucial element in facilitating all sustainability
activities. A deep understanding of the context in which Enel Chile operates enables
the integration of sustainability into its business, creating synergies between the
company's needs and those of the local environment throughout the value chain. This
is accomplished through adopting models that enhance and promote collaboration
with communities, generating efficiencies and positive impacts from social, economic,
and environmental perspectives.
CUSTOMERS
Customers play an active role in the energy transition by becoming more aware of
their consumption choices, implementing efficiency measures, and exploring available
options for electrification and decarbonization. Enel aims to enhance your experience
by prioritizing care and active listening to better understand your needs and foster
loyalty while leveraging digital technology for effective interaction. Enhancing
customer loyalty requires high-quality, personalized service that improves the unique
characteristics of the region in which the company operates and provides solutions
that effectively address local needs.
NATURAL CAPITAL
The fight against climate change cannot be separated from the commitment to
conserving natural capital, which is increasingly affected by its impact on biodiversity
and ecosystems. Enel Chile reaffirms its dedication to promoting the protection
of natural capital by setting specific goals for reducing impacts, restoring habitats
affected by its activities, and sharing opportunities and benefits related to ecosystem
services with the communities it engages with.
HUMAN RIGHTS
Implement the blended training program for
at least 55% of Enel Chile's current workforce
and its subsidiaries by 2027.
In all its activities, Enel Chile is dedicated to upholding human rights through an
integrated and comprehensive approach that addresses the needs of stakeholders
throughout the entire value chain.
Protecting the health and safety of individuals and suppliers is a shared responsibility
at all levels, reflecting a continuous effort to prevent accidents and enhance care in
every situation.
At the core of all the company's activities is robust governance that ensures
stakeholders benefit from a set of principles, including transparency, fairness, and
integrity, which support Enel's business model and its daily implementation.
2
Accumulated value for the country.
Regarding the new Sustainability Plan 2025-2027, the ESG STATEMENT is available, detailing the connection
between the material issues identified in the Materiality process, the themes of the Sustainability Plan, and the
United Nations Sustainable Development Goals, to which these objectives directly contribute.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
121
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Stakeholders, Materiality analysis, and main results in 2024
Enel Chile and its subsidiaries recognize the
importance of understanding and incorporating the
expectations of its stakeholders into the company’s
purpose. It is crucial to thoroughly understand how
the activities influence various stakeholders and the
surrounding environment, as this enables us to identify,
evaluate, and manage both financial and non-financial
impacts resulting from the operations. This alignment
enhances our relationship with various stakeholders
and informs both strategic and operational decisions,
ensuring that our actions align with the needs and
aspirations of those involved.
The Company's Board of Directors establishes
the framework for developing and maintaining
relationships with its stakeholders, placing these
groups at the center of our sustainable business
model. To identify and prioritize relevant issues, we
have implemented a methodology that reflects our
commitment to the energy transition, addressing
aspects such as health and safety, risks associated with
climate change, and the promotion of diversity and
inclusion. Each year, Enel Chile conducts a materiality
analysis involving the main stakeholders, with results
and work plans approved by the Board of Directors.
The Company also has specific dialogue procedures
and channels to relate with shareholders, managed by
the specialist area dedicated to their attention, and
a press release policy that guides interactions with
the media, thus ensuring effective and transparent
communication.
Materiality Analysis Framework1
Enel Chile and its subsidiaries conduct an annual
process in collaboration with their parent company.
This process involves the identification, evaluation,
definition, and prioritization of issues related to
environmental, social, and governance aspects,
considering General Character Norms NCG No. 461
and NCG No. 519. The Regulation mandates that
companies disclose information that could potentially
influence the decisions of investors, i.e., information
deemed to affect their financial results.
In 2024, the Double Materiality phase has been
prioritized as a method that enables a more thorough
understanding of how the Company's operations
affect various stakeholders and the environment.
This method not only identifies and evaluates
financial impacts but also considers the non-financial
effects of actions, thereby facilitating more effective
management of responsibilities and contributing to
sustainability development.
Stakeholder participation in the double
materiality process
Stakeholder engagement is a crucial lever for
creating long-term shared value and pursuing a just,
responsible, and sustainable transition. Enel Chile
fosters ongoing, active, and open dialogue with its
stakeholders through various listening initiatives to
understand their perspectives on environmental,
social, and governance issues.
Specifically, involving stakeholders in the Double
Materiality analysis process helps us shape the
objectives outlined in sustainability planning. It
supports "primary users" in their decision-making
processes, ensuring quality and consistency in
relationships.
Stakeholder engagement occurs in three dimensions:
the reference context in which the company operates,
ESG priorities, and the evaluation of IRO impacts, risks,
and opportunities.
The stakeholder engagement process and the double
materiality analysis, updated annually, are the subjects
of in-depth discussions with each of the Enel Group's
operations in Chile within the framework of the
preparation of the business strategy and the three-
year sustainability work plan, whose requirements and
compliance are monitored periodically and updated
annually.
1
At the time of publishing this report, the Materiality Analysis process has not been verified by an independent third party.
[NCG 461 - 3.1 iv; 6.1 v; 6.3]
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
122
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
An engagement initiative (focus group, survey, textual analysis, etc.) could involve several categories of stakeholders
ENGAGEMENT INITIATIVES
MATERIAL TOPICS
•
•
•
•
Evaluation of the IROs (Impacts,
Risks and Opporunities) by
internal and external stakeholders
through the perspective of:
IMPACT MATERIALITY
FINANCIAL MATERIALITY
DOUBLE MATERIALITY
e-mia
Engagement - Material &
impacts analysis
UNDERSTANDING
THE CONTEXT
Identification of the topics and
of ESG Megatrends
Identification of stakeholders
Assignment of relevance
to stakeholders
IDENTIFICATION OF
POTENTIALLY
MATERIAL IMPACTS,
RISKS AND
OPPORTUNITIES
(IROs)
Assignment of priorities
of satisfaction and of
impact to topics on the
par of stakeholders
IN
TE
RN
AL
A
ND
E
XT
ER
NA
L
ST
AK
EH
OL
DE
RS
F
I
N
A
N
C
I
A
L
C
O
M
P
A
N
Y
I
M
P
A
C
T
M
A
T
E
R
I
A
L
I
T
Y
M
A
T
E
R
I
A
L
I
T
Y
E
N
V
I
R
O
N
M
E
N
T
A
N
D
P
E
O
P
L
E
AN
AL
YS
IS
O
N
TH
E M
AI
N
ES
G
TO
PI
CS
AN
AL
YS
IS
OF
T
HE
M
AI
N E
SG
M
EG
AT
RE
ND
S
PRIORITY ESG
TOPICS
IN
TE
RN
AL
A
ND
E
XT
ER
NA
L S
TA
KE
HO
LD
ER
S
FINANCIAL
COMMUNITY
INSTITUTIONS
SUPPLIERS
ENEL PEOPLE
CUSTOMERS
CIVIL SOCIETY AND
LOCAL AND GLOBAL
COMMUNITIES
BUSINESSES AND TRADE
ASSOCIATIONS
MEDIA
I
N
I
T
I
A
T
I
V
E
S
·
I
N
I
T
I
A
T
I
V
E
S
·
I
N
I
T
I
A
T
I
V
E
S
·
I
N
I
T
I
A
T
I
V
E
S
·
I
N
I
T
I
A
T
I
V
E
S
·
I
N
I
T
I
A
T
I
V
E
S
·
I
N
I
T
I
A
T
I
V
E
S
·
123
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Estrategia de Enel Chile
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
124
1. Context Analysis
In 2024, a global analysis of the key current and
future ESG megatrends was conducted to evaluate
the economic, social, and environmental challenges
present in the external context of the company's
operations and to identify risks, mitigate impacts, and
capitalize on opportunities. This analysis will permit
the Company to formulate both international and local
strategic actions within the current complex scenario
characterized by the emergence of new production
and consumption models influenced by ongoing
technological and demographic shifts, as well as
evolving economic and geopolitical factor dynamics.
An analysis of the global sustainability landscape
was carried out, focusing on the Energy Utilities
sector. This process led to the identification of 13
significant global ESG megatrends: climate change,
digital revolution, geopolitical instability, resource
conservation, sustainable supply chains, economic
changes, urbanization, people's health and well-
being, inclusion and equality, responsible governance,
shifts in consumer needs, the future of work, and the
generation gap. The current issues will not only shape
the present but will also manifest in future economic,
social, and environmental aspects of sustainable
development, frequently creating synergies that
amplify their effects.
To understand the relevance of the 13 global ESG
megatrends, the Enel Group initiated an activity to
engage stakeholders and experts worldwide. They
were asked to evaluate the importance of each
megatrend across three-time horizons- the present,
2030, and 2050- through a specific questionnaire.
The global results of this analysis confirm three global
ESG megatrends as the most significant and relevant:
• Climate change
• The digital revolution
• Geopolitical instability
Climate change, with the continuous increase and
decline of extreme events, underscores the urgency
of acting to counteract the environmental emergency
and the social phenomena associated with it.
The digital revolution, accelerated by adopting
technological innovations such as artificial intelligence
and IoT (Internet of Things), brings with it new
opportunities and also risks or challenges, such as
computer security, increasing inequalities with the
consequent income disparity, or increased energy
consumption due to the proliferation of data centers.
Furthermore, it has become clear that the current
global context is strongly influenced by the geopolitical
situation, which entails potential risks related to
economic and energy stability and the supply of
critical raw materials.
2. Stakeholder engagement to identify
ESG priorities
The activity aims to examine priorities in ESG issues
from the stakeholders' perspective. The stakeholders
are divided into eight categories, which are further
organized into three levels of characterization to
ensure their representativeness:
• Companies and industry associations
• Customers
• Financial Community
• Institutions
• Civil society and local communities
• Media
• Enel people
• Suppliers
Once the list of stakeholders was defined, the relevance
assignment process was implemented to identify the
"key stakeholders" according to the primary reference
standard in the field (AA1000 Stakeholder Participation
Standard - AA1000SES). The relevance of each
category was evaluated through surveys sent by the
dedicated computer system, "e-mia®: Engagement-
materiality & impact analysis," also involving each of
Enel's leadership teams in the Américas that relate
to each category of stakeholders, according to the
following parameters:
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
125
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
• Dependence: the financial dependence of the
stakeholder on the Company
• Influence: the influence of stakeholders on the
organization's strategic decision-making process
• Urgency: those stakeholders who need immediate
attention from the organization in relation to
financial, economic, social, and environmental issues
In 2024, the key affected Enel Chile stakeholders are, in
order of relevance:
1. Enel People
2. Suppliers and Contractors
3. Customers
4. Media
5. Institutions
6. Financial Community
7. Business Community
8. Civil Society and local and global communities
To identify the material issues that these stakeholders
prioritize, the list of ESG issues was revised to reflect
new ESG megatrends emerging from the analysis of
the external context and various internal factors:
• The
issues
of
most
significant
interest
to
sustainability rating agencies
• Local regulation standards and international best
practices in ESG matters
• Strategic orientation, value chain mapping, and
sector-specific issues
The 2024 ESG issues were categorized into four
groups (environmental, social, governance, and cross-
cutting ESG) and outlined at three levels (Level I, Level
II, and Level III), reflecting some updates from the
previous year in accordance with the standards. This
classification allowed external stakeholders to engage
in the ESG assessment process by evaluating priorities.
The activity involved initiatives aimed at engaging
external stakeholders and covering the operational
perimeter of Enel Chile and its subsidiaries. This
included dedicated surveys launched in 2023 and
conducted biannually, customer satisfaction surveys,
questionnaires from sustainability rating agencies,
customer complaints, interactions with analysts and
investors, collaborations with representative and
sector associations, institutional relations at both
national and local levels, and monitoring of media
interactions. Enel Chile also emphasizes the local
human rights due diligence process it implements
as part of evaluating its commercial and operational
relationships with stakeholders. This process enables
the identification, prevention, and mitigation of
potential negative impacts on human rights, ensuring
that its business interactions align with principles of
responsibility and respect. Through a proactive and
collaborative approach, the company is committed
to fostering an environment that prioritizes the rights
and well-being of all relevant stakeholders, which
allows them to expand information in the mentioned
section/chapter.
The activities of collecting, adding, and processing
data and information related to the initiatives of
listening to external stakeholders are managed through
the e-mia® system that helps share best practices
for stakeholder participation and monitoring within
the Group, in line with the Company's organizational
model.
The main Level I priorities attributed by the Group's
stakeholders are:
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
126
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
RELEVANCE
CHANNELS AND TYPE OF
COMMUNICATION AND
PARTICIPATION
AVERAGE
ENGAGEMENT
FREQUENCY BY
CHANNEL/TYPE
PRIORITY ISSUES FOR
STAKEHOLDERS
RESPONSE
TO STAKEHOLDER
EXPECTATIONS THROUGH
THE CHAPTERS OF THIS
REPORT
5.01
ENEL PEOPLE
Whistleblowing channel
Continuous
• Health and safety
• Economic value creation
• Customer focus
• Health and safety
• Enel Chile business
• Enel Chile strategy
Survey
Semiannual
Cognitive interviews
Semiannual
Forums
Monthly
Working groups
Monthly
Intranet
Continuous
Newsletter
Continuous
Business magazine
Semiannual
4.66
SUPPLIERS AND
CONTRACTORS
Whistleblowing channel
Continuous
• Digital transformation
• Corporate conduct and
ethics
• Customer focus
• Enel Chile business
• Governance
• Enel Chile strategy
Web channel
Continuous
Direct contact
Daily
Forums
Monthly
Working groups
Monthly
Dedicated meetings
Semiannual
4.09
CUSTOMERS
Agents
Daily
• Customer focus
• Digital transformation
• Climate change
• Enel Chile strategy
• Enel Chile business
• Zero emissions ambition
Mobile app
Continuous
Web channel
Continuous
Forums
Weekly
Working groups
Monthly
Enel Stores & Commercial Offices
Continuous
Social media
Continuous
Survey
Monthly
3.99
MEDIA
Enel Investor app
Continuous
• Innovation and
sustainability
• Health and safety
• Commitment to the local
and global communities
• Enel Chile business
• Health and safety
• Community Engagement
Press releases
Weekly
Direct contact
Daily
Dedicated meetings
Weekly
Roadshow
Continuous
Social media
4 times a year
3.95
INSTITUTIONS
Whistleblowing channel
Continuous
• Water resource
management
• Biodiversity and ecosystem
preservation
• Sustainable supply chain
• Community Engagement
• Zero emissions ambition
• Enel Chile business
Web channel
Continuous
Press releases
Weekly
Direct contact
Daily
Social media
Continuous
3.92
FINANCIAL
COMMUNITY
Movil app
Continuous
• Sound governance
• Climate change
• Air, water and soil quality
• Governance
• Zero emissions ambition
• Protection and
development of natural
capital
Enel investor app
Continuous
Web channel
Continuous
Direct contact
Continuous
Dedicated meetings
Continuous
Investor Day
once a year
Roadshow
4 times a year
RELEVANCE
PARAMETERS:
Dependence: importance of
Stakeholder Relationship
Influence: Importance of
relationship for the company
Tension: estate of the relationship
with the stakeholder.
127
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
RELEVANCE
CHANNELS AND TYPE OF
COMMUNICATION AND
PARTICIPATION
AVERAGE
ENGAGEMENT
FREQUENCY BY
CHANNEL/TYPE
PRIORITY ISSUES FOR
STAKEHOLDERS
RESPONSE
TO STAKEHOLDER
EXPECTATIONS THROUGH
THE CHAPTERS OF THIS
REPORT
3.30
BUSINESS
COMMUNITY
Direct contact
Continuous
• Sound governance
• Climate change
• Air, water and soil quality
• Governance
• Zero emissions ambition
• Protection and
development of natural
capital
Forum
Monthly
Working groups
Monthly
3.23
CIVIL SOCIETY
AND LOCAL AND
GLOBAL
COMMUNITIES
Whistleblowing channel
Continuous
• Commitment to the local
and global communities
• Climate change
• Resilient grids
• Governance
• Zero emissions ambition
• Enel Chile business
Web channel
Continuous
Press releases
Weekly
Direct contact
Continuous
Social media
Continuous
RELEVANCE
PARAMETERS:
Dependence: importance of
Stakeholder Relationship
Influence: Importance of
relationship for the company
Tension: estate of the relationship
with the stakeholder.
Prioritization of issues by stakeholders
To determine external stakeholders' priority issues, the Company uses direct surveys, which were carried out
biannually in 2023 and have enabled it to identify the priority of each material issue for each group. The results
obtained offer a comprehensive view of the company's stakeholders' expectations and allow the determination of
the key issues on which the company should focus its strategy and its results report.
* The communication channels and average frequency of participation are the same as those of Enel Chile.
[GRI 2-16; 2-29]
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
128
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
Business
community
Civil Society and
Local and Global
Communities
Customers
Financial
Community
Institutions
Media
Our People
Suppliers and
contractors
Digital
transformation
Fair Corporate
Conduct
Customer
Commitment
Health and Safety
Climate change
Economic value
creation
People Management,
Diversity & Inclusion
Good governance
Water resources
management
Air, water, and soil
quality
Innovation and
sustainability
(Innovability)
Electrification of
uses
Sustainable supply
chain
Waste
Resilient grids
Circular economy
Governance and
defense of Nature
and climate
Preservation of
biodiversity and
ecosystems
Participation of local
and global
communities
Priority values
4.1 to 5.0
Priority values
2.6 to 4.0
Priority values
1.0 to 2.5
129
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
At the same time, Enel Chile supports this evaluation
by analyzing stakeholder satisfaction regarding the
identified material issues.
Evaluation of the priorities of the issues
in the business strategy
Based on the results of the materiality analysis, the
Priorities Matrix is developed to reflect the relationship
between the importance of material issues for both
stakeholders and the Company. This matrix serves
as the input for Enel Chile to define the targets in the
Triennial Sustainability Plan, which is presented and
approved by the Board of Directors to guide decision-
making and ensure the fulfillment of the company's
actions. This ensures that, in addition to responding
to stakeholders' expectations, the objectives of the
Sustainability Plan and its annual updates are clearly
defined. The outcome of this process is reflected in
the following materiality matrix, initiated in 2023 with
biannual validity and specifically linked to the 2030
Agenda. Furthermore, for the 2024 term, the Double
Materiality stage was updated in the materiality
analysis, resulting in the following table of primary
material issues, which also serves as crucial input for
defining the new Sustainability Plan that outlines the
ESG objectives for the next three years.
The priority issues for the company and its stakeholders include occupational health and safety, economic value
creation, good governance, and the electrification of energy use.
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Priority of issues for interest groups
Priority of topics in company strategies
5.0
4.0
3.0
4.0
5.0
Creation of economic value
Good government
Commitment to the customer
Electrication of uses
Climate change
Digital transformation
Resilient grids
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
130
3. Stakeholder engagement to assess IRO
impacts, risks, and opportunities
Stakeholders participate in this process to express their
viewpoints on the impacts, risks, and opportunities
(IRO) related to the Company's pertinent issues within
their areas of expertise.
Surveys distributed through the e-mia® system
engaged
various
categories
of
stakeholders,
encouraging them to evaluate the impacts, risks,
and opportunities associated with the IRO, focusing
on their likelihood of occurrence and significance.
Specifically:
• The assessment of the impacts generated by the
company was provided by key stakeholders (Enel,
people, customers, institutions, suppliers, and civil
society, which is considered a leading player within
the context in which the company operates.
• The assessment of risks and opportunities was
provided by the primary users (financial community)
through the Investor Relations function.
The stakeholder participation results confirm the
material issues arising from implementing the Double
Materiality analysis process, which can be found in the
Double Materiality results table for Enel Chile.
Double Materiality - Results
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
PRIORITY
ESG TOPICS
DOUBLE MATERIALITY ANALYSIS
MATERIAL TOPICS
FINANCIAL
MATERIALITY
IMPACT
MATERIALITY
F
I
N
A
N
C
I
A
L
C
O
M
P
A
N
Y
I
M
P
A
C
T
M
A
T
E
R
I
A
L
I
T
Y
E
N
V
I
R
O
N
M
E
N
T
A
N
D
P
E
O
P
L
E
M
A
T
E
R
I
A
L
I
T
Y
e-mia
Engagement - Material &
impacts analysis
MATERIAL RISKS
AND OPPORTUNITIES
POSITIVE AND
NEGATIVE MATERIAL
IMPACTS
Identification and
assessment of risks
and opporunities
related to ESG topics
arising from the
external environment,
which affect or could
affect, positively
(opporunities)/negativ
ely (risks), the
Company‘s financial
position, results of
operations and cash
flows, access to
finance or cost of
capital in the shor,
medium or long term.
Identification and
assessment of impacts
(actual and/or potential,
positive and/or
negative) generated by
the Company on the
economy, the
environment and
people, taking into
account possible
violations of human
rights, in the shor,
medium and long term.
N
E
G
A
TI
V
E
IM
P
A
C
T
S
P
O
SI
TI
V
E
IM
P
A
C
T
S
O
P
P
O
R
T
U
NI
TI
E
S
RI
S
K
S
IN
TE
R
N
A
L
A
N
D
E
X
TE
RN
A
L
S
T
A
K
E
H
O
L
D
E
R
S
131
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Identification of Potential Material IROs
This activity leads to the definition of the list of
potentially material IROs related to environmental,
social, and governance issues, as well as to entity-
specific issues (i.e., specific to the sector to which the
company belongs and representative of the facts and
circumstances in which it operates). In this way, Enel
has identified potentially significant impacts, risks, and
opportunities (IROs) related to sustainability issues.
This consideration involves analyzing global ESG
megatrends, understanding the context in which the
company operates—including its business activities
and relationships—and prioritizing the concerns of
external stakeholders, all aligned with human rights
due diligence1. Furthermore, the company's internal
stakeholders contribute to the definition of the list
of potentially material IROs, as they manage the
relationship with external stakeholders and are aware
of the potential impacts, risks, and opportunities that
could affect or be affected by the organization.
IRO Evaluation
The list of potential material IROs was submitted
to the evaluation of relevant internal and external
stakeholders, also involving Enel Chile's "subsidiaries",
with the aim of establishing the material impacts – the
so-called impact materiality – and the material risks
and opportunities – the so-called financial materiality.
Impact materiality
Impact materiality analysis involves assessing the
Company's effects on the economy, the environment,
and people. This includes impacts related to the
Company's operations, as well as those from the
upstream and downstream value chain, its products
and services, and its commercial relationships.
Internal and external stakeholders, each in their area
of competence, evaluated the impacts within the
e-mia computer system. Based on the regulations'
parameters, a workflow of questions was implemented,
allowing a final score to be obtained for each impact.
Financial Materiality
The analysis of financial materiality involves evaluating
the risks and opportunities related to ESG issues
that arise from the external context. These factors
can positively (as opportunities) or negatively (as
risks) affect the Company's equity-financial situation,
economic results, financial flows, access to financing,
or the cost of capital in the short, medium, or long
term.
This information is particularly relevant to primary
users of financial information because, if omitted or
misrepresented, it could reasonably influence their
investment decisions.
Internal
stakeholders,
each
in
their
area
of
competence, assessed risks and opportunities within
the e-mia computer system. Based on the regulations'
requirements, a question workflow was implemented,
allowing a final score to be obtained for each impact.
Material issues
To evaluate the significance of impacts, risks, and
opportunities, along with relevant ESG issues,
appropriate quantitative and qualitative thresholds
are established based on the final values derived from
the assessment of all potentially significant IROs.
These thresholds incorporate both the likelihood of
occurrence and the extent of positive and negative
impacts, as well as the potential occurrence and
the scale of the financial implications of risks and
opportunities.
The results consider the point of view of external
stakeholders (for this last aspect, see the chapter
"Stakeholder participation in the double materiality
process").
1
For more details, see the chapter "Human Rights Due Diligence Process".
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
132
Material issue
Material issue
Level 3
Impact Description
Actual /
Potential
Time horizon
Impact
Management
SDG
GRI
Impact on
Human
Rights
Material issue
Target
Own workforce
Skills and
performance
Valuing the talent of Enel
people with the aim of
recognizing individual
capabilities and supporting
performance evaluation
Current
People-
centricity
-
Average
training hours
per capita
Own workforce
Education and
training
Promote the development
of new skills and/or
new functional roles for
the company and for
employability through
the implementation of
new specific professional
qualification programs (e.g.,
courses for data scientists,
sustainability specialists, etc.)
Current
People-
centricity
404
Succession
plan for women
in management
positions
Own workforce
Education and
training
Increased job security and
employee dignity through
greater employment
opportunities, development
and training programs
(e.g., internal mobility, job
shadowing, coaching,
knowledge sharing)
Current
n/a1
People-
centricity
401;
404
Succession
plan for women
in management
positions
Own workforce
Work-life
balance
Improving the quality of life
and well-being of workers
by improving work-life
balance and psychophysical
well-being
Current
People-
centricity
401
Listen to
People - % of
people satisfied
with their well-
being (General
Well-being
Index - Global)
Own workforce
Welfare
Increased ability to
attract talent and reduce
employee turnover by
implementing hiring policies,
compensation, and benefits
programs
Current
People-
centricity
401;
404
Succession
plan for women
in management
positions
Affected
communities
Support for
families and
local services
Contribution to reducing
health problems in local
communities through
coordination with local
health authorities
Current
See chapter
of
403
Projects for
communities
(millions of
beneficiaries)
Enel Chile’s double materiality results table:
Materiality of Impact
Positive impacts 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
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
133
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Material issue
Material issue
Level 3
Impact Description
Actual /
Potential
Time horizon
Impact
Management
SDG
GRI
Impact on
Human
Rights
Material issue
Target
Circular
economy
and waste
management
Reuse, Recycling
Commitment to materials
management through
circularity improvement
programs to reduce waste
generation throughout the
entire life cycle
Current
n/a
Protection
and
development
of natural
capital
306
Reduction
of the total
weight of waste
generated
(O&M)
Own workforce
Education and
training
Support for the just energy
transition through the
implementation of employee
upskilling and retraining
programs due to the closure
of traditional generation
plants.
Current
n/a
People-
centricity
401;
404
Retraining and
Upskilling -
Promote and
plan retraining
and upskilling
programs for
Enel employees
to support
the energy
transition.
n/a: External stakeholder groups did not evaluate temporal horizon
Negative impacts generated
Material issue
Material issue
Level 3
Impact Description
Actual /
Potential
Time horizon
Impact
Management
SDG
GRI
Impact on
Human
Rights
Material issue
Target
Resilient grids
Grid
maintenance
Decreased reliability of
the distribution grid (QoS
- quality of service) due to
delays in maintenance and
delayed investments (i.e.,
plant outage management,
opportunity to act in the
field, non-anticipation of
extreme events)
Current
Enel Chile's
business and
management
2024
-
SAIDI
SAIFI
Circular
economy
and waste
management
Design an asset
or product to
extend its useful
life
Reduced availability of
raw materials due to the
Company's failure to
implement circular economy
practices - Designing an
asset or product to extend
its useful life
Current
Protection
and
development
of natural
capital
301
Reduction
of the total
weight of waste
generated
(O&M)
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
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
134
Financial Materiality
Opportunities
Material issue
Material issue
Level 3
Impact Description
Actual /
Potential
Time horizon
Impact
Management
SDG
GRI
Impact on
Human
Rights
Material issue
Target
Contamination
Protection,
monitoring, and
rehabilitation of
soil, subsoil, and
groundwater
Reputational and economic
advantages are derived
from the achievement of
environmental pollution
reduction and soil
rehabilitation objectives for
direct and indirect activities
(e.g., ESG objectives,
simplified authorization
procedures to reduce
the impact on public
health, reduced costs of
administrative and litigation
procedures, lower safety and
restoration burdens)
Potential
Protection
and
development
of natural
capital
Commitment
to biodiversity
conservation: No
net loss (NNL)
of biodiversity
in new
infrastructure by
2030
Risks
Material issue
Material issue
Level 3
Impact Description
Actual /
Potential
Time horizon
Impact
Management
SDG
GRI
Impact on
Human
Rights
Material issue
Target
Consumers and
end users
Fee affordability
and payment
flexibility
Increase in the number of
vulnerable customers and
energy poverty due to the
increase in the price of
electricity
Potential
Enel Chile's
business and
management
2024
Projects for
communities
(millions of
beneficiaries)
The impact model is essential for the Company, as
it allows for the identification of material issues and
the management of both hazards and opportunities.
Identifying priority sustainability issues improves
impact management by considering strategic
priorities
and
stakeholder
perspectives.
The
assessment guides the identification of both the
impacts generated and those suffered, serving as
the foundation for defining the objectives in the
strategic plan and the sustainability plan, which
contribute to the various divisions of the business.
The results of the materiality analysis are essential
for the Company as they aim to identify, prevent, and
mitigate both potential and actual negative impacts.
This process is not only limited to identifying
relevant issues but is also effectively communicated
throughout the organization.
The dissemination of the results from the materiality
analysis is integrated into key processes, such as
the development of the Industrial Business Plan,
the Triennial Sustainability Plan by Country, and
Investor Day. These strategies demonstrate the
adoption of concrete measures to address the
identified material topics (IROs). In this context,
the country's Three-Year Sustainability Plan, which
is updated annually, allows for the incorporation
of new challenges, lessons learned, and increased
demands based on the local context.
This plan covers the industrial objectives of the
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
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Strategy
135
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
various companies within the group and their
business units, indicating that the sustainability
plan is regularly supervised and monitored by the
Company's board of directors and subsidiaries.
Additionally, each chapter of this document outlines
the material issues identified in the materiality
analysis for 2023 and 2024, providing a clear
framework for how the Company manages and
addresses these issues.
In this way, the materiality analysis serves as a key
element in decision-making, aiding the planning
of interactions with stakeholders and defining
priorities in alignment with their expectations. In
the "GRI Materiality" section, the list of material
topics is presented alongside their respective GRI
references, which serve as indicators for monitoring
and management.
Enel Chile’s Strategy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
Gestión de riesgos
137
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Risk management
Enel Chile views risk management as a crucial
component in shaping its business strategy and
embedding sustainability across the value chain.
The Company faces various risks in its industrial
and commercial operations. If these risks are not
adequately monitored, managed, and mitigated, they
could significantly affect the group's performance
and financial standing. Therefore, understanding the
context is crucial for identifying both external and
internal factors that may present potential risks at
every business area and level within the Company1.
In this regard, in line with the architecture of the
Internal Control and Risk Management System
(ICRMS), Enel Chile has adopted a risk governance
model based on a series of "pillars" described below,
as well as a uniform risk taxonomy (referred to as the
"Risk Catalog") that facilitates its management and
organic representation.
The risk governance model
Governance pillars
Enel Chile, as part of the Enel Group, has adopted
a reference framework for risk governance that
establishes specific management, monitoring, control,
and reporting mechanisms for each identified risk
category.
The Enel Group's risk governance model aligns with
leading national and international risk management
practices and is based on the following principles:
The model is organized into three defense lines for risk management, monitoring, and control activities,
adhering to the principle of segregation of duties in the primary areas related to significant risks.
1
In the Risk Factors and Strategy sections, the main contextual aspects that could materialize and affect the Company's results are addressed.
Defense Lines
1
[NCG 461 - 3.6 i; iii]
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Group Risk
Committee
Board of
Directors
Risk Appetite
Framework
Risk
Policies
Reporting
system
Defense
Lines
3
5
1
6
4
2
138
The Board of Directors is responsible for monitoring and controlling the primary risks associated with the
Company and its subsidiaries, including any risks that may affect sustainability from a medium- or long-term
perspective, and determining how these risks align with the established strategic objectives.
The parent company of Enel Chile, Enel S.p.A., has implemented the Risk Committee, which was created at
the executive level and is chaired by the CEO of the Enel Group. It is responsible for the strategic direction
and supervision of risk management through:
• the analysis of the primary exposures and risks;
• the adoption of specific risk policies applicable to Enel Chile in order to identify roles and responsibilities
in the management, monitoring, and control of risks, respecting the principle of organizational separation
between the areas responsible for management and the areas responsible for monitoring and controlling
risks;
• the approval of operational limits, authorizing, when necessary and appropriate, exceptions to these limits
in specific circumstances or needs; and
• the definition of risk response strategies.
The Enel Group's Risk Committee meets four times a year and may also be convened, when deemed necessary,
by the Enel Group's CEO, who is responsible for the Risk Control unit, located within the Administration,
Finance and Control function.
At the local level, Enel Chile has established a Risk Executive Committee at the executive level, chaired by
the Company's General Manager. This committee is primarily responsible for the following: (i) the approval
and deployment of Risk Policies proposed by the Risk Control Unit for adoption within Enel Chile; (ii) defining
and approving risk appetite levels for the quantitative limits and thresholds suggested by the Risk Control
Unit, while ensuring that operations and indicators are monitored appropriately within these limits; (iii)
authorizing any exceedance of risk limits and thresholds, if applicable; (iv) defining risk response strategies,
identifying actions to propose following extraordinary or significant operations, or in situations of particular
complexity or criticality, as well as new risk mitigation instruments; (v) analyzing key findings and overseeing
risk management and control.
The Executive Risk Committee of Enel Chile Group generally meets at least twice a year and can be convened,
when deemed necessary, by the Company's CEO and the head of the Risk Control Unit.
The coordination between the Executive Risk Committee of Enel Chile and the Enel Group’s Risk Committee
fosters timely communication with the Enel Group's senior management regarding information and
mitigation strategies for the most significant exposures, alongside the local implementation of the guidelines
and strategy defined at the Group level.
Enel Group's Risk Committee
2
Board of Directors
3
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
139
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Corporate policies and procedures are established based on specific approval processes that engage the
relevant business structures. They detail the distribution of responsibilities, coordination mechanisms, and
essential risk management activities.
Risk Appetite Framework
4
Corporate policies and procedures are established based on specific approval processes that engage the
relevant business structures. They detail the distribution of responsibilities, coordination mechanisms, and
essential risk management activities.
Specific and regular information flows on risk exposures and metrics enable the Group's senior management
and corporate bodies to maintain an integrated view of the principal risk exposures at a global level for each
business line or geographical area, both current and future.
Risk policies
5
Reporting system
6
Risk Landscape ENEL© Group: The Group, based on
risk governance and following the ISO 31000:2018
international risk management standards, constantly
monitors risks thanks to a monitoring process
supported by a data visualization tool (e-Risk
Landscape©). This system collects and organizes the
contributions of the Group's different geographies
and business lines, categorizing them according to the
definition of the Risk Catalogue adopted by the Group.
The monitoring and control process involves assigning
metrics based on the likelihood of risk events and
the size of the potential economic-financial impact,
providing the Group's Senior Management with a
dynamically updated view of the Group's risk profile,
its management, and mitigation actions.
As of December 31, 2024, Enel Chile was monitoring
nearly 60 risks, none of which were identified as TOP
Risks, meaning they had a probability value above
average and potential economic impacts exceeding
100 million euros.
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Impact
LIKELIHOOD
140
Internal Control and Risk Management System
Enel Chile’s Internal Control and Risk Management
System (ICRMS) integrates the necessary standards
and procedures for identifying, measuring, managing,
and overseeing key corporate risks. Additionally, it
helps maintain asset value, optimize the efficiency
and effectiveness of business processes, ensure the
reliability of financial reporting, and comply with laws,
regulations, bylaws, and internal procedures.
The ICRMS is integral to the Company. It facilitates
decision-making that aligns with risk appetite
while ensuring effective communication and a
comprehensive understanding of risks, regulations,
and corporate values. The system provides a
comprehensive traceability of activities related to
risk identification, assessment, management, and
monitoring.
The ICRMS considers the recommendations outlined
in the Corporate Governance Code and aligns
with the Internal Controls—Integrated Framework
model established by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO
Report). This model sets a globally recognized standard
for analyzing and assessing the ICRMS's effectiveness.
Three-Line defense model
Enel Chile’s ICRMS is aligned with international
standards. It follows a methodology based on the
three-line defense model, which segregates functions.
0
1
2
3
4
5
0
1
2
3
4
5
t
c
a
p
m
I
LIKELIHOOD
IMPACT and LIKELIHOOD Matrix
Macro-Category
Compliance
Financial
Operational
Strategic
The ENEL © Group Risk Landscape allows 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
Ploted
area
5.0
1.0
5.0
[NCG 461 - 3.6 iv; v; vi]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
141
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
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
execute risk control procedures on a
constant day-to-day basis.
• Identify, evaluate, control, and mitigate
risks, guiding 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
greatest
extent
possible,
management
and
supervision
controls should be established to
ensure compliance with the outlined
procedures, as well as to detect control
gaps,
inadequate
processes,
and
unexpected events in a timely manner.
• Implement controls in accordance with
the guidelines and limits approved by
the Board of Directors of Enel Chile.
Functions:
• Define the methodologies and tools
that help identify, measure, and control
risks.
• Every year, submit the limits and
thresholds of commodity and financial
risks for the approval of Enel Chile's
Executive Risk Committee.
• Periodically monitor limits on financial
risk metrics of commodities, credit, and
counterpart.
• Process or deny requests for exceptions
in the transfer of the established risk
limits (waivers).
• Report monthly to Enel Chile’s CEO
and main managers the Risk Review,
which includes a summary of the
Company's main risks, whose impacts,
probabilities, and action plans are
monitored and updated periodically,
following the guidelines of the ISO
31000:2018 standard. It also reports on
the performance of the leading Key Risk
Indicators (KRI) monitoring.
• Support risk owners in identifying and
evaluating risks, defining risk mitigation
plans, following up on these plans,
and proposing corrective actions if
necessary.
• Review and monitor the main risks
regularly and analyze the impact of
relevant operations on them.
• In accordance with the risk mapping
processes, report the risk map and
mitigation measures to the Enel Chile
Board of Directors quarterly and to the
Executive Risk Committee regularly.
• It informs Enel Chile's Board of Directors
every two months of a specific risk
(or issue associated with risks) that
strategically affects the Company's
business.
• Promote and plan training for the
Company's
pertinent
personnel
regarding the policies, procedures,
controls, and regulations or internal
bodies of standards implemented for
risk management.
Functions:
• Prepare the annual Audit Plan, which is
presented and approved by the Board
of Directors. It is based on a structured
analysis and identification process of the
main risks.
• Monitor
the
functioning
and
effectiveness of the SCIGR.
• Control specific corporate functions or
operations when it deems it appropriate
or at the request of the Board of Directors.
• Reports directly to the Board of Directors;
it is not responsible for or dependent on
any operational area.
• Prepare
periodic
reports
containing
adequate information on their actions
and procedures for risk control and
management
and
compliance
with
established plans.
• Report the result of the activity carried
out to the corporate bodies as provided
for in the local regulations in force and the
applicable foreign regulations (as is the
case of the Sarbanes-Oxley Act, of 2002,
and the complementary regulations of
the Securities and Exchange Commission
and the New York Stock Exchange of the
United States of America), relating to
the implementation of the internal audit
scheme and the whistleblowing channel.
Also, to account for the ISO 37001
International Certification, on the Anti-
Bribery Management System.
• Review, as part of the Audit Plan, the
design and operation of the information
systems' internal control system.
• Monitor
the
implementation
and
effectiveness of the Compliance Program
inherent to the criminal risks for the legal
entity, in accordance with the provisions
of the applicable regulations, such as Law
No. 20,393 on Criminal Liability of Legal
Entities, which establishes the Crime
Prevention Model (MPD), and Law No.
21,595 on Economic Crimes, and other
elements of the Program.
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
142
Enel Chile has chosen to strengthen the role of
the Board of Directors as the primary corporate
governance entity responsible for overseeing risk
management and control. Within this context, the Risk
Control Chile sector failed to submit a report to the
Directors' Committee by the end of 2024.
Risk control and management policy
Enel Chile’s Control and Management Policy outlines
fundamental
principles
and
a
comprehensive
framework for controlling and managing risks that
could affect achieving business objectives. It ensures
that risks are systematically identified, analyzed,
evaluated, managed, communicated, and controlled
within established risk levels. This Policy, which is
reviewed and approved annually by Enel Chile’s Board
of Directors, outlines the decisions that define the
acceptable parameters for the levels of risk associated
with the business segments in which the Company
operates.
The objectives of the Policy are to create a framework
for controlling and managing risks, outline the mission
and functions of the associated bodies, and establish
regulations to prevent and address these risks. This
Policy is applicable to all employees of the Company
and is compulsory, irrespective of their job functions
or positions held. The statement encompasses
entities that possess 100% of the share capital, either
directly or indirectly, and where the regulations of that
organization are directly applicable. In companies
where Enel Chile has control, whether through direct
or indirect shareholding, actions will be coordinated
according to this Policy.
Main ICRMS entities and functions
The Board of Directors and the Executive Team are the
primary internal bodies served by the lines of defense.
They are ideally positioned to ensure that the risk
model is integrated into the Company's control and
management processes.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
143
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Governing body
Roles
Board of Directors
It supports the company's sustainability purpose, vision, strategy, and long-term integration. This body is
responsible for monitoring and managing the main risks associated with the company's operations and its
subsidiaries, assessing the degree of alignment of these risks with the objectives set forth in the Strategic
Plan.
Among other functions, it approves the SCIGR guidelines, evaluates its performance, approves the Audit
Plan based on a structured analysis process to identify the principal risks, reviews the reports of actions and
management control procedures, and examines the main strategic risks associated with the Company at
least quarterly.
In this area, the board's functions align with the Risk Policy, ISO 31000:2018, internal procedures, and external
regulations to ensure business continuity.
Executive Risk
Committee
The objective is to outline the framework and procedures of risk governance designed to identify, measure,
oversee, and communicate all relevant risks to the Board of Directors. This includes strategic, compliance,
financial, operational, technological, digital, governance, and cultural risks faced by the Company, among
others. Additionally, it will evaluate the effectiveness of risk control and mitigation tools.
Crisis Committee
It aims to ensure clarity, speed, and efficiency in decision-making. Additionally, it integrates both internal
and external communication functions to manage any event that could jeopardize people's safety, the
continuity of public and business services, environmental care, asset protection, and the company's image
and reputation.
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 serves as the Second Line of Defense, tasked with monitoring established risk limits
or thresholds, proposing risk policies, conducting periodic reviews and ongoing evaluations, and reporting
significant 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 ICRMS's
structure and functionality and for developing an independent and objective assurance and consultation
activity designed to add value and improve the Company's operations.
Risk Manager/ Risk
Owner
This unit within the organization is tasked with overseeing the Company’s risk management processes. This
typically aligns with the company's operational domains, encompassing both business and support functions.
The Risk Management function is tailored to the unique requirements of each line of business or corporate
area. They are accountable for overseeing risk management within their specific domain of expertise.
Comparably, they need to establish risk controls that ensure adherence to the guidelines and limits set forth
by the Risk Control area.
Internal Control of
Corporate Information
The Company has established an internal control system for corporate information that aims to provide
reasonable assurance regarding the reliability of both financial and non-financial information in the
preparation of financial statements. This system reduces risks linked to the rigorous implementation of all
procedures and standards 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, NCG No. 461 and NCG No. 519 of the
Chilean 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.
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
144
Risk classification
The Enel Group maintains a risk catalog that acts as
a fundamental reference for all sectors involved in
risk management and monitoring activities. The use
of a standardized language improves the ability to
map and thoroughly represent risks, permitting the
identification of those that affect the processes and
functions of the organizational units responsible for
their management.
The Risk Catalog organizes risks into six macro
categories, which include, as shown below, strategic
risks, financial and operational risks, compliance risks,
risks related to governance and culture, and digital
technology risks. At the end of 2024, the Company
had 37 subcategories in its Risk Catalog, consistent
with the Enel Group document.
The following is a description of the list of individual risks currently identified and classified within the six macro
categories mentioned above:
[NCG 461 - 3.6 ii. a]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
Financial
• Capital structure
adequacy and access
to financing
• Commodity
• Credit and
counterparty
• Exchange rate
• Interest rate
• Liquidity
Governance and culture
• Corporate culture and
ethics
• Corporate governance
• Stakeholder engagement
Operational
• Asset protection
• Business interruption
• Customer needs and
satisfaction
• Environment
• Health and safety
• Intellectual property
• People and organization
• Process efficiency
• Purchasing, logistics, and
supply chain
• Service quality management
Digital technology
• Cybersecurity
• Digitalization
• IT Effectiveness
• Service continuity
Compliance
• Accounting compliance
• Antitrust and consumer
rights compliance
• Corruption
• Data protection
• External disclosure
• Financial regulation
compliance
• Tax compliance
• Compliance with other laws
and regulations
Strategic
• Climate change
• Competitive landscape
• Innovation
• Legislative and regulatory
development
• Macroeconomic and
geopolitical trends
• Strategic planning and
capital allocation
RISKS
145
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
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 issues
risks.
Competitive landscape
There is a risk of ineffective identification, evaluation, and monitoring
of market trends that could affect the Group's competitive positioning,
growth, and profitability.
Innovation
Risk of ineffective development, implementation, and dissemination
of innovative solutions due to insufficient technological exploration or
inaccurate or incomplete analyses of uncertainty, complexity, sustainability,
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 evaluating regulatory exposures
arising from new strategic and business initiatives.
Macroeconomic and geopolitical
trends
The risk of ineffective identification, evaluation, and monitoring of global
economic-financial, political, and social trends and developments in
monetary, fiscal, and trade policies.
Strategic Planning & Capital
Allocation
Ineffective strategic planning and capital allocation processes are at risk
from inconsistent scenarios, the inability to capture emerging trends, and
the inability to quickly manage significant changes, which can negatively
influence the decision-making process.
Governance &
Culture
Corporate Culture & Ethics
Risks arising from (i) inadequate integration of the ethical principles
defined by the Group into the Company's processes and activities; (ii)
failure to adopt and implement effective policies and procedures to ensure
compliance with the principles of diversity and equal opportunity; and (iii)
failure to sanction actions by employees and managers that conflict 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 with key stakeholders regarding Enel's
strategic positioning on sustainability and financial goals due to a lack of
understanding, anticipation, or alignment with their expectations, which
may not be adequately integrated into the Group's strategic planning
processes for business and sustainability, potentially harming its reputation
and competitiveness.
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
146
Category
Risk
Definition
Digital
technology
Cybersecurity
Risk of cyberattacks and theft of sensitive or mass data related to the
Company and customers, attributable to the lack of grid security, 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)
provide access to various sources of financing, and (iii) achieve objectives
related to the cost of debt.
Commodities
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 & Counterpart
Risk of: (i) the counterpart's inability to meet its contractual payment or
delivery obligations, (ii) the counterpart's credit impairment or default,
(iii) significant exposure to a single counterpart (concentration in a single
entity), or (iv) to counterparts operating in the same sector or belonging to
the same geographic area (sectoral/geographic concentration).
Exchange Rate
Risk of adverse changes in exchange rates that negatively impact (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 fluctuations in interest rates affecting net finance charges
and fair value adjustments of interest rate-sensitive financial assets and
liabilities.
Liquidity
Risk of failing to meet 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).
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
147
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
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 & 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 & 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 & Organization
The Group may face risks related to its organizational structures or internal
capabilities due to ineffective training programs, poor incentive systems,
inadequate rotation planning, or difficulties in effective recruitment 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, & 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 third parties or internal service providers failing to meet agreed
service levels.
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
148
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 & Consumer Rights
Compliance
Risk of breaching antitrust and consumer rights laws and regulations.
Corruption
Risk of intentional incorrect or corrupt conduct carried out by people
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 disseminating 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 violating international, national, or local laws and regulations in
areas not yet covered by other types of risk (e.g., concerning electricity,
distribution, generation, procurement, permitting, and securities markets).
This risk analysis encompasses the Company's primary
suppliers, who are assessed based on various criteria,
including their sustainability risk (environmental, social,
governance, and business relevance), their country,
sector, and the commodities or services they provide.
The
Company's
integrated
business
strategy
incorporates environmental, social, and governance
(ESG) risks as essential components of the risk
management framework and matrix. The following
references
are
particularly
noteworthy
in
the
identification process:
• 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 incorporation of ESG factors, we
have developed systematic processes across the
entire Enel Group. These processes involve a thorough
examination of the sustainability context, prioritization
and impact assessment for the Company and its
stakeholders,
strategic
sustainability
planning,
execution of targeted actions to achieve sustainability
goals, comprehensive reporting, and oversight of ESG
and sustainability metrics, along with the management
of key national and international indicators.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
149
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Strategic Risks
The risks detailed in this section are as follows:
Legislative and regulatory development
Enel Chile operates in the electricity generation
and distribution sector in Chile, where the markets
are regulated. In this context, changes in operating
norms, as well as the regulations and obligations that
characterize them, impact 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
strengthened its relationships with local regulators by
adopting a transparent, collaborative, and proactive
approach to address and reduce sources of instability
in the legislative and regulatory framework.
Macroeconomic and geopolitical trends
Enel Chile's operations require it to consider and assess
the so-called "Country Risk," which encompasses
macroeconomic, financial, institutional, social, and
climate-related risks, as well as those specific to
the energy sector. These factors could significantly
adversely affect both revenue streams and the value
of its corporate assets.
Enel Chile adheres to the Enel Group's Open Country
Risk quantitative assessment model, designed to
accurately monitor the risk levels of the countries
within its scope. This model goes beyond the traditional
definition of country risk, which primarily focuses on
a government's ability to repay its debt obligations.
Instead, it provides a broader overview of the various
risk factors that can impact a country. The model is
divided into four components of risk: economic,
institutional, political, social, and energy factors.
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Strategic risks
• Legislative and regulatory development
• Macroeconomic and geopolitical trends
• Strategic risks and opportunities
associated with climate change
• Competitive landscape
• Strategic planning and capital allocation
150
More specifically, the Open Country Risk model
aims to measure the country's economic resilience,
the effectiveness of domestic policies, and the
vulnerabilities of its banking and corporate systems
that could indicate potential systemic crises. It
also evaluates the nation’s attractiveness regarding
economic growth and quantifies extreme weather
events as a source of environmental and economic
stress (economic factors). Additionally, the model
assesses the strength of the country's institutions
and the political context (institutional and political
factors), conducts an in-depth analysis of social
phenomena to measure levels of well-being, inclusion,
and social progress (social factors), and examines the
effectiveness of the energy system along with its role
in the energy transition process. All of these elements
are crucial for evaluating investment sustainability in
the medium and long term (energy factors).
In particular, the analysis of the energy transition
process includes predictive assessments of the
country's actions, considering the weight of renewable
energies, electrification, and the sustainability of the
energy system, fundamental elements for estimating
growth and attraction in the medium and long term.
Strategic risks and opportunities related to climate change
Climate change and the energy transition can impact
the activities of the Enel Chile Group, affecting
strategic, industrial planning and investments. Enel
Chile develops short-, medium-, and long-term
scenarios related to the energy transition and climate
change. The risks and opportunities associated with the
evolution of these scenarios are identified, for example,
concerning technological and market dynamics,
regulatory changes, and physical phenomena, such
as the effects of acute and chronic climate events on
assets and the value chain. For a detailed review of
the risks and opportunities related to climate change,
refer to the Zero Emissions Ambition section of this
Integrated Annual Report.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
Economic factors
Political and
institutional factors
Energy factors
Social factors
151
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Competitive landscape
The competitive landscape analysis is a fundamental
component of the contextual analysis in which Enel
Chile operates and shapes its business ambitions.
The risks associated with evolving market trends
are also mitigated through regular monitoring of
competitors' industrial and financial performances.
The evaluation activity is conducted through a
framework that aims to (i) identify the most relevant
competitors and peers, (ii) analyze their results,
key business drivers, and strategic and industrial
objectives, and (iii) understand their current and
potential outcomes positioning.
The process of identifying benchmark companies
is updated regularly to ensure the timely collection
of information, KPIs, and valuable indicators for the
Group's positioning and strategic planning activities
in Chile.
Specifically, the comparative evaluation of competitors'
strategic and industrial plans is particularly important
for assessing potential risks arising from possible
changes in the competitive landscape and, most
importantly,
providing
economic
and
industrial
benchmark elements to help enhance Enel Chile's
performance.
Strategic planning and capital allocation
The Strategic Plan of Enel Chile is accompanied by
an analysis of the associated risks and opportunities.
The identification of risks and opportunities within the
Group's strategic and industrial planning process in
Chile is designed to improve the risk-return profile.
Although the strategy behind the Plan includes an
analysis and verification phase of the variables and
strategic risk factors, assumptions about future
scenarios or events remain that may not be validated
or may not occur as anticipated, depending on
factors outside the administration's control. These
developments can be observed as both increases and
decreases.
The Enel Chile Strategic Plan has received approval
from the Board of Directors. Following this, a matrix
outlining the risks and opportunities associated with
the Company's strategic positioning is introduced.
This matrix is also shared with the Enel Chile Executive
Risk Committee. Specifically, it highlights risk factors,
including
macroeconomic
conditions,
energy
variables, regulatory frameworks, the variability of
renewable resources, and key risks pertinent to the
strategy.
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
152
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 note that these risks arise from
illegal activities such as corruption and lobbying
by employees or contractors, as well as from anti-
competitive practices. Enel Chile has established an
Internal Control and Risk Management System based
on the standards and procedures that enable it to
mitigate these risks.
Risks related to human rights violations are assessed
through annual due diligence conducted across Enel
Chile's value chain and all functions. This due diligence
process results in action plans that address identified
vulnerabilities or areas of impact.
Digital technology Risks
The risks detailed in this section are as follows:
[NCG 461 - 3.6 ii. b]
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. In this
context, it is evident that cyber risk must be managed
without hesitation and in an integrated manner. In
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
Governance and culture risks
• Corporate governance
• Corporate culture and ethics
• Stakeholder commitment
Digital technology risks
• Cybersecurity
• Digitalization
• IT Effectiveness
• Service continuity
153
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
summary, technological transformation could not
exist without significant attention to cybersecurity.
To manage cybersecurity risk, Enel Chile, as part
of the Enel Group, has established a Cybersecurity
operating model along with the corresponding
Process Framework. The operational model explicitly
defines roles and responsibilities for implementing the
framework processes. It also provides an ad hoc support
unit at the Holding level, which is overseen by the CISO
(Chief Information Security Officer) and integrated
into a matrix aligning with the Group's business areas.
Enel Chile has adopted a holistic governance model
concerning cybersecurity that encompasses the
sectors of IT (Information Technology), OT (Operational
Technology), and IoT (Internet of Things). This framework
relies on senior management's commitment, global
strategic direction, and participation from all business
areas, along with dedicated units for designing
and implementing IT, OT, and IoT systems, thereby
establishing a robust foundation for the complete
integration of technologies, processes, and people.
The Framework is founded on two essential principles:
the "risk-based approach" and "security by design."
The first principle establishes that risk assessment is
a prerequisite for strategic decisions and the secure
development and maintenance of all the organization's
assets. The second principle ensures the adoption
of cybersecurity practices from the outset and
throughout the entire lifecycle of solutions, services,
and infrastructures across all domains, specifically
IT, OT, and IoT. Within the context of the framework's
implementation, the methodology for cyber risk
management has been defined and is applicable to
all IT, OT, and IoT environments. This methodology
includes the necessary phases for conducting risk
analysis and determining the corresponding mitigation
plan in alignment with established cybersecurity
objectives. To effectively balance the benefits gained
from operating IT/OT/IoT systems with the risks they
may pose, making well-informed, risk-based decisions
is crucial.
Enel Chile strives to use and leverage the best
technologies in the market. At the same time, it acts
on the human factor through initiatives aimed at
strengthening employees' awareness and knowledge
of cybersecurity, its risks, and threats, making them the
first line of corporate defense. Similarly, the framework
addresses regulatory and normative 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 Company has also created its own Cyber
Emergency Response Team (CERT) to proactively
respond to and manage any cybersecurity-related
incidents. Additionally, since 2019, and to mitigate
exposure not only with technical countermeasures,
the Group has been purchasing insurance for risks
related to cybersecurity.
To measure the potential impacts of cyber risk in
economic and financial terms, the Enel Group has
developed the Cyber Value-at-Risk methodology
(Cyber V@R Enel Group©), which is in the process of
evolution, to calculate the Value-at-Risk in different
attack scenarios.
Digitalization, IT efficiency, and service continuity
Enel Chile has been digitally transforming its entire
value chain management by developing new business
models, digitizing processes, integrating systems, and
implementing innovative technology. As a result of
this digital transformation, Enel Chile's operations are
becoming increasingly vulnerable to risks associated
with the IT systems implemented across the Company.
This vulnerability 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
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
154
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:
As mentioned earlier, the internal control and risk
management
system
(ICRMS)
defines
policies
that establish roles and responsibilities for risk
management, monitoring, and control processes. It
adheres to the principle of organizational separation
between the structures responsible for management
and those tasked with monitoring and controlling risks.
The governance of financial risks also includes defining
an operational limits system for each risk, which is
periodically monitored by the units responsible for risk
control. The operational limits system provides support
for decision-making and aims to achieve objectives.
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
successfully mitigating associated risks.
Regarding artificial intelligence, the Enel Group,
including Enel Chile, is evaluating opportunities to
integrate AI across all business areas to enhance
operational efficiency, optimize energy resource
management,
and
develop
new,
increasingly
sustainable solutions. Given the rapid development
of AI technologies and an uncertain regulatory
landscape, it will be crucial to successfully identify
and mitigate each associated risk. The management
of energy resources and the development of new,
increasingly sustainable solutions are essential. The
misuse of AI by employees or external vendors, its
involvement in cyberattacks, or unexpected behaviors
and decisions from AI could compromise computer
systems, operations, and confidential information,
potentially leading to further security risks and other
unpredictable outcomes. Any of these events could
negatively impact the business, operational results,
financial standing, and reputation.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
Financial risks
• Interest rate
• Exchange rate
• Commodities
• Credit and counterparty
• Liquidity
155
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Interest rate risk
Variations in interest rates can lead to unexpected
changes in net financial charges or the value of
financial assets and liabilities measured at fair value.
The exposure to interest rate risk primarily arises from
the variability of financing conditions when incurring
new debt and from the variability of cash flows tied
to the interest generated by the variable rate debt
portion.
Depending on the Group's estimates and the objectives
of the debt structure, Enel Chile conducts hedging
operations by contracting derivatives that mitigate
these risks. Risk control through specific processes
and indicators allows limiting potential adverse
financial impacts while simultaneously optimizing the
debt structure with an adequate degree of flexibility.
Exchange type risk
Due to geographical diversification, market access
for issuing debt instruments, and operations in
commodities, Enel Chile faces the risk that fluctuations
in exchange rates between its functional currency and
other currencies may result in unexpected variations
in its economic and financial figures. The potential
effects of exchange rate risk are reflected in:
• Costs and revenues denominated in foreign
currency with respect to the moment when the
price conditions were defined or the investment
decision was made (economic risk);
• Revaluations or adjustments to the fair value of
financial assets and liabilities sensitive to exchange
rates (transaction risk);
• Consolidation of subsidiary companies that have
different accounting currencies (conversion risk).
To mitigate exchange rate risk, Enel Chile's hedging
policy aims to maintain a balance between flows
indexed to United States dollars and, if applicable, local
currencies, alongside the levels of assets and liabilities
in that currency. The goal is to minimize the exposure
of these flows to exchange rate fluctuations.
The instruments currently used to comply with the
policy correspond to currency swaps and exchange
rate forwards.
In 2024, the Boards of Directors of Enel Chile,
Enel Generación Chile S.A., and Empresa Eléctrica
Pehuenche S.A. agreed to change these companies'
functional currency from Chilean pesos to United
States dollars, effective January 1, 2025, as the
U.S. dollar will significantly influence the economic
environment in which each operates.
Commodity risk
Enel Chile operates in energy markets and, as a result,
faces the risk of incurring economic or financial
losses due to unfavorable shifts in commodity prices
(price risk) or fluctuations in volume, such as changes
in demand, hydrology, or the unavailability of raw
materials (volume risk).
To address this exposure, Enel Chile has created a
margin stabilization strategy, utilizing physical or
financial forward contracts for both revenues and
costs. This strategy incorporates derivatives, sales to
end customers, or fuel procurement.
Enel Chile has also established a formal procedure
that includes measuring residual commodity risk
and specifying a limit for the maximum acceptable
risk based on measurement and control processes.
Additionally, it implements a hedging strategy using
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
156
derivatives in regulated markets. The commodity risk
control process helps limit the impact of unexpected
changes in market prices on margins while ensuring
an adequate level of flexibility to take advantage of
market opportunities.
Credit & counterpart risk
Enel Chile's commercial, financial, and commodity
transactions expose it to credit risk; specifically, the
possibility that a deterioration in the solvency of
counterparties or failure to meet contractual payment
obligations could result in interruptions of incoming
cash flows and increased collection costs (liquidation
risk), as well as reduced revenue flows from replacing
original transactions with similar ones conducted
under unfavorable market conditions (substitution
risk).
The control process is based on specific risk indicators
and, where possible, limits and safeguards so 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. 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 sells and assigns accounts receivable
rights, resulting in the complete write-off of the
corresponding assets. Finally, regarding financial and
commodity transactions, risk mitigation is pursued
through portfolio diversification (favoring counterparts
with a high credit rating) and by adopting specific
standardized contractual frameworks that include risk
mitigation clauses (e.g., clearing arrangements).
Liquidity risk
Liquidity risk refers to the risk that Enel Chile, despite
being solvent, may not be able to meet its obligations
on time. It may only do so under unfavorable economic
conditions for the company, or it might encounter
restrictions on liquidating assets, resulting in losses.
This situation could arise from tensions or systemic
crises, such as credit contraction or a sovereign debt
crisis, or shifts in market perception regarding its risk.
Enel Chile upholds a liquidity policy that involves
securing long-term credit facilities and making
temporary financial investments, keeping amounts
sufficient to meet projected needs based on the
circumstances and expectations regarding debt and
capital markets.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
157
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Compliance risk
The risks detailed in this section are as follows:
[NCG 461 - 3.6 ii. b]
[NCG 461 - 3.6 ii. c]
Personal data protection
In the era of digitalization and globalization, Enel's
business strategy has focused on accelerating the
transformation toward a business model based on
digital platforms. It employs a customer-centric
approach that utilizes information and personal data
throughout the entire value chain.
Enel Chile serves over two million customers and directly
employs more than two thousand people, along with a
substantial number of contractors. Consequently, the
Group's new business model necessitates managing
an increasing volume of personal data to achieve the
economic and business results outlined in its strategic
plan 2025-2027.
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 specific processes
and the subsequent economic or financial losses, and
finally, exposure to reputational damage.
To effectively manage and mitigate this risk, Enel
Chile, as part of the Enel Group, has established a
global personal data governance model by assigning
roles across all levels of the organization, including
the designation of Data Protection Delegates (DPD) at
both international and country levels.
Digital compliance tools are also used to map
applications and processes and manage risks affecting
the protection of personal data in compliance with
specific local regulations in this area.
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.
Risks related to antitrust regulation
They are risks related 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, in
this way, prevent them from happening.
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
• Personal data protection
• Compliance with antitrust regulations
• Compliance with tax regulations
Compliance risks
158
Operational risks
The risks detailed in this section are as follows:
Health and safety
Establishing a strong and sustainable safety
culture shared by all members of the organization
is a strategic objective. Therefore, Enel Chile
is committed to defining and implementing
progressively
healthier
and
safer
processes,
conditions,
and
work
environments
for
its
employees, collaborating companies, customers,
and the external communities it interacts with daily.
The company promotes ongoing improvement
of the safety culture through dedicated training
programs.
The primary health and safety risks that Enel Chile
staff and contractor companies face are linked to
conducting operational activities at the facilities and
assets of the Enel Group in Chile, as well as on public
roads in connection with the distribution grids.
Similarly, risks arise during activities we perform
directly at customer facilities. These risks can vary
or even change in response to economic and social
trends, as well as the introduction of digitalization
into processes and operational activities. Another
health and safety risk stems from non-compliance
with existing laws, regulations, and standards that
affect the health and safety of individuals, which
can result in administrative or judicial penalties and,
consequently, economic, financial, and reputational
consequences.
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
[NCG 461 - 3.6 ii. d;e]
Risks related to compliance with tax regulations
The Board of Directors of Enel Spa defines the Enel
Group's tax strategy and ensures its implementation
throughout the Group. This includes the role and
responsibility of promoting a corporate culture rooted
in the values of honesty, integrity, and the principle
of legality. Enel Chile, like all other entities within
the Group, must adhere to the principle of legality
by promptly applying the tax laws of its operating
jurisdiction. This ensures that the spirit and intent
of the relevant norm or regulation are respected,
avoiding actions and transactions that create purely
artificial constructs that do not reflect the economic
reality and from which undue tax advantages could be
reasonably expected.
For a detailed review of compliance with tax regulations,
please refer to the Tax Transparency section of this
Integrated Annual Report.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
Operational risks
• Health and safety
• Environment
• Procurement, logistics, and supply chain
• People and organization
159
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
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.
From an operational standpoint, health and safety
risks are specifically assessed at each site or
business asset based on the activities performed
by workers, the conditions of the workplace, and
external environmental factors. This evaluation
allows for the identification of prevention and
protection measures for workplace safety and the
planning of their implementation, improvement, and
control to verify their effectiveness and efficiency.
Enel Chile views contractor companies as partners
who share the essential principles of health and
safety. Their workers are regarded on par with
internal employees regarding the implementation
of these principles and the management of health
and safety concerns in the workplace. Therefore,
safety is integrated into the hiring processes. The
performance of the companies is monitored both
in the preventive phase, through the qualification
system, and in the contract execution phase, through
numerous control processes and tools such as the
Contractor Assessment (analysis of the organization,
processes, and methods of work carried out on the
contracting companies in the qualification phase or
in cases where problems arise or low scores in the
evaluation of indicators) or the Evaluation Groups
(periodic cross-functional meetings, distributed
across all lines and geographies of the Enel Group,
which allow for the assessment of suppliers' safety
performance and the decision of consequence
management actions).
In addition to procedural and operational aspects,
another critical factor in the proper management
of health and safety risks is related to training,
awareness, and information activities for individuals.
To promote the growth of technical competencies
and the safety culture, support change processes,
and quickly respond to business needs, the Enel
Group in Chile has a structured training management
process that aims to transform knowledge into
competencies and, therefore, into behaviors.
Additionally, Enel Chile systematically promotes
informing and raising awareness among staff
through various corporate channels, including
intranet news, informational emails, newsletters,
and magazines. The company periodically conducts
surveys to gather feedback from colleagues on
improving processes or communication initiatives
designed to raise awareness of compliance with
safety procedures. This effort also aims to create
moments for collective reflection on the dynamics
and causes behind serious or fatal accidents.
Enel Chile’s structured health management system
is based on prevention and protection measures. It
also plays a role in developing a corporate culture
aimed at promoting the psychophysical health and
organizational well-being of workers, as well as
helping to balance personal and professional life.
Moreover, for Enel Chile's operations, consumer
health and safety risks are managed by considering
the nature of the products and services offered by
the company. These risks include accidents related
to the electrical grid, as well as issues arising from
prolonged power outages, informal constructions,
and cable thefts, among other challenges. In light
of this reality, the company adopts a proactive
stance. It maintains open communication with the
communities, aiming to strengthen connections
with the population and promote well-being, safety,
and awareness in the areas where it operates.
This approach is crucial for spreading and
embracing safe electrical energy practices, enabling
customers and communities to understand and
adopt preventive measures that reduce the risk of
accidents. Through this, the Company reiterates
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
160
its dedication to safety and sustainability, fostering
safer and more resilient environments in the regions
it serves.
Finally, Enel Chile is also committed to external
exchanges with the energy sector’s top national
players through participation in inter-company
tables defined to share, with a continuous
improvement perspective, best practices in Health
and Safety, both in terms of operational processes
and innovative initiatives.
The 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 demands, authorities have
implemented
more
stringent
environmental
regulations concerning the development of new
industrial initiatives and, in the most significant
industries, by encouraging or mandating the phase-
out of technologies that are no longer deemed
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.
The analysis of environmental risks associated with
Enel Chile's activities has been conducted through an
integrated and multifunctional approach based on the
results from the materiality analysis of impacts and
dependencies. This assessment has facilitated the
identification of key operational, economic-financial,
social, and environmental risks linked to various
activities and technologies, including risks related
to ecosystem transformation and biodiversity loss,
depletion of natural resources—particularly the risk of
water scarcity—and contamination of environmental
matrices resulting from pollutant emissions and
sustainable waste management.
Alongside
operational
risks,
reputational
and
transitional risks resulting from possible changes in
the regulatory, technological, or market frameworks,
as well as the related opportunities, have also been
evaluated. Enel Chile is committed to preventing and
reducing environmental impacts and risks.
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 ecological
consequences, damage to reputation, and litigation.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
161
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Procurement, logistics & supply chain
The
procurement
processes
and
the
related
governance documents form a structured system of
rules and control points that align the achievement of
the business's economic objectives with full compliance
with the fundamental principles established in the
Code of Ethics, the Enel Global Compliance Program,
the Zero Tolerance for Corruption Plan and the Human
Rights Policy, without renouncing the promotion of
sustainable economic development initiatives.
From the procurement process perspective, various
units employ the bidding instrument, thereby ensuring
maximum competition and equal access opportunities
for all operators who satisfy the technical, economic,
financial, environmental, safety, human rights, legal,
and ethical criteria.
Concerning
the
risk
governance
system,
the
Procurement Unit emphasizes the use of metrics
that show the level of risk before and after mitigation
actions to implement precautionary measures that
reduce uncertainty to an acceptable level or mitigate
potential impacts across all business, technological,
and geographical domains.
Supply chain risk management is monitored by
calculating an aggregate risk index for each supplier
based on specific indicators, including the probability
of insolvency, the concentration of contracts among
individual suppliers or industrial groups, the supplier's
dependence on Enel Chile, the performance index
on the correction of behaviors in bidding, quality,
punctuality, and sustainability in contract execution,
country risk, and so forth. Thresholds are established
to guide the definition of the procurement strategy,
negotiation, and awarding of a bid, enabling informed
decisions regarding risk and potential benefit.
Furthermore, the geopolitical situation of the country is
also monitored in relation to our material supply chain
to manage market volatility in the supply chain. This is
done to adopt the most appropriate strategies, such
as diversifying supply sources, to avoid supply chain
disruptions and mitigate risks generated by market
shortages, logistical issues, and activity interruptions.
People and organization
The profound social, economic, demographic, and
cultural transformations of today's world, ranging
from the energy transition to digitalization processes,
technological innovation, and the rapid spread of
Artificial Intelligence, significantly affect the work
environment. These changes renew existing paradigms
and impose substantial cultural and organizational
shifts that demand new skills and professional
competencies. To address this change, it's essential to
take an inclusive approach, centering the individual in
their social and labor contexts, equipped with the right
tools to navigate this monumental transformation.
Organizations must increasingly move towards new
models of work and agile, flexible, and sustainable
business practices throughout the entire value chain.
It is also essential to adopt policies that improve the
diversity and talents of each individual, understanding
that the contribution of the individual represents a
critical element in the creation of widespread and
shared value.
The central role of people, ongoing listening, sharing,
and enhancing individuals' entrepreneurial initiatives
and integration are key actions that guide how the
company operates and thrives.
Thanks to an increasingly efficient and agile
organization, human capital management and people-
centricity play a key role in the implementation of the
industrial strategy of the Enel Group in Chile, acting as
an enabling factor and related to specific objectives.
The main ones are: the constant development of skills
and competencies, through the promotion of reskilling
and upskilling programs for people; the development
of models for evaluating organizational climate and
job performance; the dissemination and rigorous
evaluation of diversity and inclusion policies in all the
Risk management
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
162
Risk Training
Enel Chile is deeply committed to risk management
and fostering a risk management culture among all
its employees. This is why, in 2024, the Company's
Directors participated in a Training Program that
covered
various
issues,
including
cyberattacks,
action courses, and the management of criminal risk
prevention. Furthermore, the Directors went through
an induction process where they were provided with
detailed information about the principal risks and
opportunities facing Enel Chile1.
On July 17, 2024, Enel Chile held the induction for its
Directors and Executives under the framework of
Law No. 21,595 on Economic Crimes. Legal experts
provided insights on the updates proposed by this law,
the associated risks, events that could be classified
as crimes under it, and its potential impact on the
Company. For a detailed review of the training sessions
conducted in 2024, see section [1]: Communication
and training- effectiveness of the Compliance
Program in this Integrated Annual Report.
1
https://www.enel.cl/content/dam/enel-cl/inversionistas/enel-chile/gobierno-corporativo/formacion-directorio/calendario-formacion-direc-
tores-enel-chile-2024.pdf.
[NCG 461 - 3.6 viii]
countries where the Group operates, as well as an
inclusive organizational culture based on the principles
of non-discrimination and equal opportunities, key
factors for attracting and retaining talent.
Enel Chile, as part of the Enel Group, is committed
to strengthening the resilience and flexibility of
organizational
models
through
simplifying
and
developing the organizational model, with constant
attention to designing clear responsibilities for the
involved actors and a procedural system with global
governance and controls, process digitalization, and a
data-driven approach. All of this is aimed at enhancing
the effectiveness, responsibility, and autonomy of
individuals and teams by bolstering the processes of
empowering people and promoting an entrepreneurial
mindset that appreciates talents, attitudes, and
aspirations. The hybrid work model, together with the
encouragement of internal mobility and the adoption
of innovative and flexible approaches, are tools
designed to facilitate this evolution of organizational
culture rooted in trust, innovation, proactivity, respect,
and flexibility.
In line with this strategy, social dialogue is evolving
towards a model that increasingly emphasizes
the centrality of the individual. For example, the
Enel Group and the unions have signed a "People
Charter," an innovative protocol focused on the well-
being, engagement, motivation, and participation
of individuals, the principles of which have also
been adopted and implemented in other countries
worldwide where the Group operates. Similarly, in
Chile, people charters were signed. This commitment
also seeks to create roles within the organization that
act as "ambassadors" to promote the adoption of
shared models and behaviors centered on sustaining
relationships.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk management
163
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Zero emissions ambition
Enel Chile, as part of the Enel Group, has set itself
the ambition of zero emissions by 2040, opting
for a business model aligned with the objective of
not exceeding the temperature increase of 1.5°C
compared to pre-industrial levels.
These goals are part of the Enel Group's commitment
to the "Business Ambition for 1.5⁰C" campaign,
promoted by the United Nations and other institutions,
of which it is a part, and in line with the criteria and
recommendations of the Science Based Targets
initiative (SBTi).
The Company began investing in renewable energy a
decade ago, allowing them to shut down all of their
coal-fired plants. Being the first conventional electric
company in the country to achieve this.
Achieving these goals requires Enel Chile to take
a multidimensional view of the business with
the involvement of its entire value chain in the
decarbonization process, beyond the generation
line. According to the study on Costs and Benefits
of the Energy Sector prepared by the Association of
Generators, with its investments in the digitalization of
the grid and in the infrastructures necessary for the
electrification of consumption in industries, cities and
communities, the electrification of consumption will
rise to a rate of 54% by 2050.
Immersed precisely in the era of electrification, Enel
Chile offers services through Enel X, advancing
towards the objectives declared by Chile at COP26 to
achieve electromobility by 2035 and carbon neutrality
by 2050, which are complemented by a circular
economy roadmap.
Its strategy is in itself the Company's climate action,
[NCG 461 - 3.1 ii]
Zero emissions ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
ZERO EMISSIONS AMBITION
94 gCO2eq/kWh
Specific CO2 emissions
(Scope 1) from generation
78 %
Installed capacity of renewable
sources
97 %
CAPEX for development by
renewable technology 2025-2027
164
building, together with the energy transition, the path
to achieve the global goals defined in the 17 Sustainable
Development Goals (SDGs). In particular, with SDG 7
(affordable and clean energy), by increasing renewable
energy generation, with SDG 9 (industry, innovation
and infrastructure), investing in a digitalised network
that is functional to the electrification of consumption,
and with SDG 11 (sustainable cities and communities),
involving citizens, institutions and industries in the
replacement of fossil fuels with electricity for their
consumption.
The energy transition and electrification consist, for
the electricity sector, of the climate actions to which
SDG 13 aims and which we lead in all its dimensions in
the country.
Engaging stakeholders in climate action
The impacts of climate change affect businesses
and society, modifying biodiversity and ecosystem
functions. The race that began a few years ago to
repair this situation generated a cross-cutting call to
institutions, companies, citizens and communities, as
relevant parts of an organic transformation capable of
offsetting the effects of climate change. On the basis of
this call, the Company began a transformation aimed
at a clean energy matrix, the modernisation of the
electricity grid and the electrification of consumption.
Environmental sustainability and climate action are
at the heart of Enel Chile's strategic objectives. They
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 ensure greater
transparency in communications and relationships,
they report performance following the international
standards Global Reporting Initiative (GRI), Sustainability
Accounting Standards Board (SASB) and 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,
and is considered in the planning and development
of the strategy.
• Due diligence on human rights: 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 the remediation or
mitigation plans.
• Risk matrix: climate risks, evaluated qualitatively
and quantitatively, are integrated into the business
risk matrix.
• Community engagement: investments are made
in initiatives that lead communities to be part of the
just energy transition through the implementation
of renewable energy models and nature-based or
circular economy solutions.
• Sustainability indicators for the supply chain:
Sustainability factors are incorporated into bidding
processes, providing incentives for suppliers that
take action to minimize environmental impacts
and contribute to the Company's objectives
regarding decontamination and electrification of
consumption.
• Internal communication: Internal events are
promoted, mostly on virtual platforms, to address
topics related to energy transition, sustainable
business, the circular economy, and climate change.
• Presentations and meetings with investors:
Through the Investor Day, concrete actions to
advance
toward
low-carbon
economies
are
announced. Progress is also reported quarterly.
• Board of Directors' Committee: Sustainability
initiatives are addressed, including those dedicated
to climate change.
• Reporting to the Board of Directors: The
Sustainability Plan and progress reports, including
climate action indicators, are presented quarterly.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emissions ambition
165
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
• Social media communication: Strengthening
our commitment to the digital society by using social
media to raise public awareness on issues related
to climate change, including decarbonization,
renewable energy development, water management,
the circular economy, electrification, and electric
mobility.
Climate change policy advocacy
Enel Chile shares the principles, commitments and
guidelines of its parent company Enel S.p.A. regarding
policies, regulations and participation in partnerships
in order to promote issues related to the energy
transition and climate change at the national and global
levels. To this end, global perspectives are developed
and aligned at the Enel Group level, providing position
papers on climate policies. These documents serve as
a guide for the Company's local interaction, as well as
for regulatory discussion and relations with institutions
and stakeholders in the climate action debate.
Position on climate-related frameworks, policies, and partnerships
As the climate challenge becomes more evident and
the need for all actors to work together to address
solutions and opportunities around this issue becomes
clearer, global, regional and national policy expands
and evolves in its regulatory frameworks. In view of
this, we adhere to the following guidelines:
Zero emissions ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
166
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, which lead to the mitigation of greenhouse gas
emissions and the goal of carbon neutrality by 2050, assumed by the State of Chile.
Long-Term Climate
Strategy (LTCS)1
The Company is committed to continuing its electrification programmes, increasing the production of
renewable energies, such as green hydrogen, and incorporating energy storage systems. On the other
hand, it promotes the conservation of natural spaces and carbon sequestration, through environmental
investment in alternatives for the management of ecosystem services.
Nationally Determined
Contribution (NDC)
Enel Chile is part of the wood-burning stove replacement program aimed at reducing black carbon in the
country's most polluted cities, which contributes to the mitigation objective of the NDC, which, in turn, is
aligned with the ECLP. The Company's contribution also materialized through the closure of the operation
of the coal-fired plants and the conservation of marine and terrestrial biodiversity, in collaboration with the
San Ignacio del Huinay Foundation.
Just Transition Strategy
Enel Chile set a precedent by bringing forward the definitive closure of its last coal-fired plant, positioning
the Company as the first company in the country to definitively eliminate coal from its energy matrix and
continue its path as the main renewable energy operator.
Energy 2050: Chile's
Energy Policy
Enel Chile's objectives are to maintain and enhance its development portfolio based on large-scale
renewable sources, with a focus on solar and wind energy. Likewise, the Company continues to develop
green hydrogen opportunities and with the process of electrification of energy uses, advocating for a
resilient electricity system in generation, transmission and distribution.
Chile's Energy Efficiency
Law
The culture of energy efficiency is promoted in the country, promoting the constant development of Enel's
services and the rational use of energy. Currently, energy efficiency projects are being promoted, such as
the implementation of LED luminaires.
Law No. 20,920:
Extended Producer
Responsibility (REP)
Enel Chile is analysing the opportunities to valorise waste and the feasibility of generating 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), which does not exclude the contribution to achieving the rest of the Goals. The commitment to the
SDGs is the result of 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,
ensuring that they incorporate the perspective of the business sector.
Global Pact
Enel Chile is committed to integrating the Ten Principles of the Global pact into its strategy, culture and the
Company's daily actions, as well as to getting involved in collaborative projects that contribute to the SDGs.
In addition, it will communicate these commitments to stakeholders and the general public.
1
This strategy is subject to modifications in its process of citizen and/or parliamentary participation. It must be validated every time the LMCC
enters into force with its respective regulations.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emissions ambition
167
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Governance for climate change
Enel Chile's corporate governance defines specific tasks and responsibilities in its structure to ensure that climate
change-related risks and opportunities are considered in all relevant business decision-making processes.
Corporate governance
Among the main functions of its different bodies are:
Directory
• Examine and approve the company's strategy, including the annual budget
and business plan, with the aim of directing investments towards low-emission
economies, promoting a sustainable business model that generates long-term
value.
• To guide and assess the suitability of the Internal Control and Risk Management
System (ICMS), defining the nature and level of risk compatible with the strategic
objectives of the Company and the Group, including those related to climate
change.
• Address climate-related issues, reflected in the Company's strategies and
operations.
• During 2024, the Board of Directors addressed issues related to climate change,
reflected in the strategies and actions implemented in 10 of its 12 sessions held,
in particular during: (i) the review and approval of the Company's Business Plan; (ii)
the definition of the remuneration policy for 2024; (iii) the review of the content
of the Sustainability Report for the 2022 financial year and the Integrated Report
according to NCG No. 30 of the Financial Market Commission, for the same year.
In addition, issues related to this topic were discussed as part of the studies
dedicated to operations linked to the decarbonization strategy, as well as in
relation to the activities of dialogue with investors.
• Advise the Board of Directors on the evaluation and decision-making related
to sustainability, the performance of the sustainability plan, including any issue
related to climate change, biodiversity and circular economy, as well as the
Company's interaction with stakeholders.
• Examine and analyse the climate objectives and the articulation of the contents
published in the Sustainability Report, issuing a prior opinion to the board of
directors.
Directors Committee
[NCG 461 - 3.2 vii]
Zero emissions ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
168
General Manager
• Define a sustainable business model, through the identification of a strategy
aimed at guiding the energy transition towards a low-carbon model.
• Manage business activities related to Enel's commitment to climate action.
• To report to the Board of Directors on the actions taken in the exercise of its
powers, including business activities aligned with the Company's commitment
to address climate change.
• Manage the management of business risks, including those related to climate
change.
Structure
The Company has a team of managers with specific
responsibilities in the management of climate change
risks and opportunities that fall within their area of
expertise. Its main functions are:
• Consolidate the analysis of the scenario and the
management of the strategic and financial planning
process, aimed at promoting a sustainable business
model, placing climate action at the centre of the
strategy.
• Develop activities related to avoiding or minimizing
the environmental risks and 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
the
advancement
of
technologies that facilitate the energy transition
and aim at better adaptation to climate change.
• Promote decarbonization and guide the energy
transition towards a low-carbon business model
within the areas of its responsibility.
For the approval of investments, committees operate
by business lines and also at the level of the Enel
Group. The latter is chaired by the CEO, who is tasked
with ensuring that all investments are aligned with
the corporate commitment to promote a low-carbon
business model and achieve decarbonization by 2040.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emissions ambition
169
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Climate change incentive system
The Enel Group's Remuneration Policy includes several
mechanisms with the aim of moving towards the
energy transition, in particular: short-term variable
remuneration (MBO) that may include objectives
related to the specific function of each manager.
For example, it can incorporate renewable energy
development goals for managers within the generation
business line, or related to energy transition solutions
within Enel X.
Climate change and long-term scenarios
Enel Chile pursues transparency in its disclosure
related to the impacts of climate change and works
to demonstrate to its stakeholders that climate
change is being addressed diligently and decisively, in
accordance with the guidelines and requirements of
the most recent disclosure standards.
The Enel Group was one of the first utilities to adopt
the recommendations of the TCFD (Task Force on
Climate related Financial Disclosures) and integrate the
"Guidelines on climate-related reporting" published
by the European Commission in June 2019 which,
together with the sustainability reporting standards,
such as the Global Reporting Initiative (GRI) and the
CSRD Corporate Sustainability Reporting Directive,
constitute a framework for the dissemination of
climate change issues by the Group
Scenario analysis
The analysis of the context, the evolution of trends and
the energy transition process is a fundamental input
for the definition of the Group's corporate strategy.
Enel Chile carries out this analysis through:
• Identification and analysis of short-, medium-
and long-term trends to develop a complete
picture of how ongoing structural forces and
macro trends influence the speed of the transition
and the expected impacts on the energy sector
and, in particular, on the businesses in which Enel
Chile operates. The analysis of the context, with
the identification and analysis of the main external
trends and dynamics related to the energy transition,
the competitive landscape and the business
environment, represent a reference base to guide
the positioning of the business and the definition of
macro trends relevant to the materiality analysis.
• Benchmarking of external energy scenarios,
which includes an in-depth assessment of the
reports available at global, regional and local levels,
with a specific focus on the countries in which the
Group is present with the aim of comparing the
main triggers of the energy transition and their
potential impacts.
The main drivers of the transition:
electrification and renewable energies
Analysis of global scenarios shows a strong consensus
among energy analysts on the main drivers for
achieving climate goals: the end-use electrification
process and the increase in electricity generation from
renewable sources, both in the medium and long term.
In scenarios compatible with stabilising the increase in
global average temperature within +1.5°C.
Zero emissions ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
170
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
Increase in temperature
Source: Internal data elaboration based on 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
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emissions ambition
171
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Energy and climate transition scenarios
Scenario-supported
strategic
planning
helps
improve business decisions, maximize opportunities,
and mitigate risk, promoting greater organizational
flexibility and adaptability. That is why Enel Chile
develops
an
approach
based
on
alternative
scenarios, defined on the basis of key uncertainties,
such as the achievement of the objectives of the
Paris Agreement.
Enel defines energy transition and physical climate
transition scenarios that are consistent with each
other:
• Energy transition scenario analyses the evolution
of energy production and consumption, considering
factors such as commodity prices, technologies,
climate and energy policies, and social dynamics.
• Physical climate scenario: estimation of the
future evolution of the climate, based on climate
model simulations that project variables such as
temperature, precipitation and wind, in relation to
different levels of greenhouse gas emissions and
other long-term climate events.
To assess the effects of energy and physical
transition phenomena on the energy system, the
Group uses models that, for the main countries in
which it operates, describe the energy system in
detail, taking into account technological, socio-
economic, political and regulatory specificities. The
acquisition and processing of the data needed to
define the scenarios, together with the selection
of the appropriate methodologies and metrics to
interpret complex phenomena, require accurate
analysis and the use of advanced models, as well as
dialogue with external experts.
The adoption of energy and physical transition
scenarios, and their integration into business
processes, takes into account the guidelines defined
by the TCFD and the requirements derived from
the CSRD directive, which is an enabling factor for
the assessment of risks and opportunities related
to climate change. The process that translates the
phenomena of the scenarios into useful information
for industrial and strategic decisions can be
summarized in five steps:
FIVE STEPS
1
2
3
4
5
1 Identification of trends and factors imporant to the
business (e.g., electrification of demand, heat waves,
etc.)
Development of connectors between climatic and
transition scenarios and operating variables
Identification of risks and
opporunities
Calculation of business impacts (e.g.,
changes in results, losses, investments)
Strategic actions: definition and implementation
(e.g., capital allocation, resilience plans)
2
3
4
5
IMPACT
ASSESSMENT
Zero emissions ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
172
Energy transition scenarios
The energy transition scenario describes how
energy production and consumption may evolve in a
geopolitical, macroeconomic, regulatory, competitive
context and in accordance with available technological
alternatives. Each scenario corresponds to a trend in
greenhouse gas emissions and a possible increase in
temperature by the end of the century compared to
pre-industrial values.
Business planning assumes as a baseline the long-
term achievement of the minimum goal of the Paris
Agreement, i.e. limiting the increase in global average
temperature to less than 2°C compared to pre-
industrial levels. This scenario does not contemplate
the achievement of Net Zero at the global level by
2050, due to the slowness of the energy transition at
the local level with respect to some variables.
With regard to full compliance with the Paris Agreement,
i.e. stabilising the global average temperature within
+1.5°C, uncertainties persist about the possibility that
some countries will continue on inertial trajectories,
without promptly adopting effective measures to
reduce their emissions, delaying the decarbonisation
process towards net zero emissions by 2050. However,
the Enel Chile Group operates with such a business
model that it has defined strategic guidelines in line
with the maximum ambition of the Paris Agreement
objectives, consistent with an increase in the global
average temperature of 1.5 °C by 2100, as certified by
the Science-Based Targets initiative (SBTi). Enel Chile
has set a 2040 target to reach zero direct emissions
(scope 1), with zero-emissions electricity generation
and retail sales (scope 3).
To assess the risks and opportunities related to the
energy transition, compared to the baseline scenario,
alternative scenarios have been defined according to
the degree of climate ambition assumed at global and
local level:
• A "Slower Transition" scenario, built on the
assumption of a slower energy transition, with less
development of some variables, such as renewable
capacity and electric mobility, and which is more
affected by the slowdown observable in the short
term in some geographies.
• An "Accelerated Transition" scenario, characterised
by an increase in ambition compared to the baseline
scenario, in particular with regard to variables such
as: authorisation processes or increased economic
support mechanisms for renewable plants that
accelerate the commissioning of facilities; or a
greater uptake of electricity technologies leading to
faster electrification.
For the main countries in which it operates, the Group
has adopted models for scenario development. The
definition of transition scenarios through internal
modelling is motivated by the need to have greater
geographical and operational flexibility for the main
variables that impact Enel Chile's business. These
models, in fact, estimate the variables relevant to the
Group's activities, optimising the costs of the system
and respecting long-term CO2 emission limitations in
line with the Paris Agreement and national strategies.
They also take into account short- and medium-term
national policies, market dynamics, and the diffusion
of country-specific technologies.
For the rest of the countries of interest, the main
variables of the scenario are determined through
statistical analyses on internal and external data,
based on scenarios aligned with the objectives of the
Paris Agreement provided by accredited national and
international organizations and suppliers.
The assumptions on commodity price trends
introduced in the baseline scenario are consistent
with the external scenarios that achieve the objectives
of the Paris Agreement. In particular, sustained
growth in the price of CO2 is expected for 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, price tensions are expected to ease further
in the coming years in light of a realignment between
global supply and demand. Finally, the price of oil is
expected to stabilize gradually, with demand peaking
around 2030.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emissions ambition
173
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Brent ($/bl)
2024(2)
2030
Enel CHILE Stage
80
~74
Benchmark medio (1)
~82
Maximum Benchmark
~89
Minimum Reference
~70
API2 ($/ton)
2024(2)
2030
Enel Stage
112
~83
Benchmark medio (1)
~85
Maximum Benchmark
~110
Minimum Reference
~75
CO2 EU – ETS (€/ton)
2024(2)
2030
Enel Stage
65
~117
Benchmark medio (1)
~ 125
Maximum Benchmark
~150
Minimum Reference
~100
TTF (€/MWh)
2024(2)
2030
Enel CHILE Stage
35
~30
Benchmark medio (1)
~26
Maximum Benchmark
~35
Minimum Reference
~20
(1)
Source: IEA, BNEF, S&P, Enerdata. Note: The scenarios used as benchmarks have been published at different times of the year and may not be
up to date with the latest market dynamics.
(2) Consumptive.
On the other hand, the Accelerated Transition
scenarios predict a faster decline in demand for
fossil fuels, which translates into lower prices for
these commodities by 2030. In the event of a slower
transition, fuel demand will peak more gradually,
supporting energy commodity prices.
Physical climate scenario
Within the framework described above, the scenarios
have been developed in a way that pursues coherence
in their energy and climate transition context. In
scenarios, the role of change is increasingly important
and produces effects not only in terms of the
economy's transition to net zero, but also in terms of
physical impacts, which can be classified into:
• Acute events, i.e. short-lived, but particularly
intense events, such as floods, hurricanes, etc., with
potential impacts on assets (e.g. business damage
and disruptions).
• Chronic phenomena
related
to
structural
changes in climate, such as trends in temperature
increase, sea level rise, etc., which can lead to
constant changes in plant production and changes
in electricity consumption in the residential and
commercial sectors.
These phenomena are analysed in their future-
oriented behaviour, selecting the best available data, at
different resolutions, and from the results of historical
climate models, which serve as input for impact
assessments in the Group, including biodiversity and
value chain analyses.
Among the climate projections produced by the IPCC
on1 a global scale, the Group has selected three, which
are in line with those considered in the last IPCC report
in the framework of the sixth assessment cycle (AR6).
These scenarios are associated with emission patterns
linked to a level of the so-called "Representative
Concentration Pathway" (PCR), each of which is linked
to one of the five scenarios defined by the scientific
community as "Shared Socioeconomic Trajectories"
(SSP), which include general assumptions such as
population and urbanization, among others. The three
physical scenarios considered by the Group are as
follows:
• SSP1-RCP 2.6: compatible with a global warming
range of less than 2°C, compared to pre-industrial
levels (1850-1900), by 2100 (the IPCC projects
~+1.8°C on average compared to the period
1
Intergovernmental Panel on Climate Change (IPCC)
Zero emissions ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
174
1850-1900); in different analyses that consider
both physical and transition variables, the Group
associates the SSP1-RCP 2.6 scenario with the
Baseline and Accelerated Transition scenarios.
• SSP2-RCP 4.5: Compatible with an intermediate
scenario, where an average temperature increases of
approximately 2.7°C is expected by 2100, compared
to the period 1850-1900. In analyses that consider
both physical variables and transition variables, it is
associated with the slowest transition scenario.
• SSP5-RCP 8.5: compatible with a scenario in
which no particular measures are implemented to
combat climate change. In this scenario, a global
temperature increases of approximately +4.4 °C is
estimated by 2100 compared to pre-industrial levels.
The Panel considers RCP 8.5 to be the worst-case
scenario for climate, used to assess the effects of
physical phenomena in a particularly strong climate
change context, but which is currently considered
unlikely.
The Group analyses the impact of global climate
scenarios at the local level, collaborating with
specialized suppliers, both academics and experts
from public institutions or private companies. Among
the active partnerships, a collaboration is underway
with the Department of Earth Sciences of the
International Centre for Theoretical Physics (ICTP) in
Trieste. As part of this collaboration, high-resolution
climate projections (~12 Km - ~100 Km) and a time
horizon of 2020-2050 are provided for all the Group's
main operational areas1. The analyses include variables
such as temperature, precipitation, wind gusts and
solar radiation, using a set of regional climate models2
to ensure their robustness.
Given the complexity of some phenomena, which
depend to a large extent on the characteristics of the
territory, the Group also resorts to the use of Natural
Hazard maps in addition to climate scenarios provided
by external providers. This tool allows us to obtain, with
high spatial resolution, the return times of a series of
events, such as storms, hurricanes and floods. The
use of these maps based on historical data is widely
established in the Group, not only for the simulation of
climate scenarios, but also for other activities such as
insurance strategies.
Finally, the Group has acquired the skills and tools
to autonomously obtain and process the raw results
published by the scientific community, in order to
have a global and high-level vision of the long-term
evolution of the climate variables of interest. These
sources are the results of the CMIP63 and CORDEX4
climate and regional models, framed in the World
Climate Research Programme (WCRP) and the
"Coupled Modelling Working Group" (WGCM).
1
Climate projections mainly cover the RCP 2.6 and RCP 8.5 scenarios. RCP 4.5 is also provided when available, which is otherwise derived from
other scenarios through pattern scaling.
2
The number of models used varies depending on the CPR scenario.
3
https://www.wcrp-climate.org/wgcm-cmip/wgcm-cmip6
4
https://cordex.org/
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emissions ambition
175
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
In-depth analysis: Climate change is a current reality
Climate change is already producing an increase in the frequency and intensity of extreme weather events,
such as heat waves, heavy rainfall, tropical storms, and wildfires. Climate attribution studies, which look at
how changes in the global climate affect specific events, clearly demonstrate that warming caused by human
activity is already contributing significantly to the worsening of such phenomena. A study1 consolidating
the results of studies conducted on 750 of the world's most impactful events shows that, overall, 83% of
extreme events are influenced by climate change. Impacts such as more destructive floods, damage to
infrastructure due to stronger storms and hurricanes, and the increasing frequency of droughts and heat
waves, are mainly related to rising global temperatures and altering precipitation patterns.
Warming oceans and increased evaporation have also fuelled extreme events such as typhoons and cyclones,
which have become commonplace in previously marginally affected areas such as the Mediterranean, as well
as being more powerful and destructive than in the past.
In South America, climate change, exacerbated by "El Niño", has caused enormous effects: just think that
since 1970, the days characterized by extreme heat, drought and the high risk of fires have tripled in some
areas of the continent. Chile has experienced the worst drought in decades, with some regions experiencing
a reduction in rainfall of up to 70% compared to the historical average2: this has led to a huge increase in
wildfires with severe repercussions on critical infrastructure3.
Since 2000, globally, climate-related disasters have caused more than $3.6 trillion in direct economic
damage. It is estimated that annual losses caused by climate risks, in the event of inaction, could reach
$560-610 billion globally by 2035, with a possible increase to 1.1 billion dollars by 2055, depending on the
emissions scenario.
It is essential to integrate this evidence into corporate and government policies, combining climate change
mitigation efforts with adaptation plans to manage risks to infrastructure resilience and community safety.
1
How climate change affects extreme weather events around the world https://interactive.carbonbrief.org/attribution-studies/index.html
2
Center for Climate Science and Resilience of Chile https://www.cr2.cl/crisis-hidrica-en-coquimbo-especialistas-plantean-medidas-para-en-
frentar-la-emergencia-regional-prensa-uchile/
3
World Weather Attribution https://www.worldweatherattribution.org/despite-known-coastal-cooling-trend-risk-of-deadly-wildfires-in-cen-
tral-chile-increasing-with-changing-land-management-in-a-warming-climate/
Zero emissions ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
176
Strategy to address climate change
Enel Chile has defined as a long-term goal to achieve
zero CO2 emissions by 2040, and for this it is working
on two axes; one, the decarbonisation of our energy
matrix with the construction of new renewable
power plants, disconnecting thermal capacity from
the system; and on the other hand, increasing the
electrification of users' final consumption as an
essential driver to achieve its objective.
With this ambition, the Company has strengthened its
commercial offering, adopting an integrated approach
that allows us to sell renewable electricity and services
to support the climate ambitions, efficiency needs and
reliable sourcing of its customers.
For the end consumer, households and cities, Enel
Chile has developed a wide range of products to move
towards circular cities with a view to facilitating and
improving the quality of life of their inhabitants.
The 2025-2027 Strategic Plan, presented in November
2024, consists of three pillars, with financial and
environmental sustainability at its core, along with the
acceleration of the energy transition and sustainable
growth, all with the goal of creating tangible value for
shareholders, customers, the company, people, and
the environment. This plan includes investments of
approximately US$1.8 billion.
Generation
US$1.4 billion, equivalent to 78% of the total investment
plan, will be allocated to generation projects. Of this,
approximately US$0.8 billion will be used to develop
renewable projects using different technologies in line
with the country's commitment to decarbonizing the
country.
Enel Chile has fulfilled its commitment to decarbonizing
its grid and has become the first company to abandon
coal as a source of electricity generation in Chile. It has
made progress in decarbonizing the energy matrix and
in promoting the development of a diverse portfolio of
renewable projects, including wind farms and battery
storage units.
TOTAL INVESTMENT PLAN 2025-2027
15%
CUMULATED GROSS CAPEX
2%
23%
32%
27%
1.8 USD bn
Renewable
BESS
Thermal
Distribution and grids
Others1
1 Others include Enel X, trading and services Capex
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emissions ambition
177
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Distribution and grids
Distribution grids play a central role in the energy transition as a facilitator of electrification. Therefore, approximately
23% of CAPEX for the period 2025-2027 will be allocated to strengthening the resilience of both the low- and
medium-voltage grids and ensuring service quality for their customers.
Quality, resiliency
& digitalization
Distribution and Grids management
Connections
33%
19%
48%
0.4 USD bn
DISTRIBUTION AND GRIDS CAPEX
3%
7%
1%
29%
60%
43%
57%
GENERATION CAPEX
TOTAL CAPEX
DEVELOPMENT CAPEX BY
TECHNOLOGY
ADDITIONAL CAPACITY
(GW)
2024
Additional
capacity
2027E
8.9
0.6
9.4
Solar & Geo
Wind
Hydro
BESS
Others1
Development
Management
6.9
0.1
0.5
7.5
Total renewable
capacity
(GW)
USD 0.8 bn
USD 0.8 bn
USD 0.6 bn
USD 1.4 bn
Zero emissions ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
178
New services for electrification
To accelerate electrification in the country's various
productive segments and sectors, investments
will also be allocated to consolidate the portfolio
of new products and advanced energy solutions,
such as charging infrastructure, electric buses, and
efficient lighting, among others. This aims to facilitate
customers' journey toward a more sustainable
and energy-efficient model, combining traditional
offerings with services based on technological
developments.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
1. Cumulative figures.
Enel X main products
2024
2027 E
2024
2027 E
DEMAND RESPONSE1 (MW)
PV1 (MWp)
6.6 (MWp)
9.0 (MWp)
7.4 (MWp)
10.2 (MWp)
179
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Identifying and managing risks and opportunities
The energy transition and climate change will have
effects on the Group's activities through two main
macro-categories
of
risks/opportunities:
those
derived from the evolution of transition scenarios, and
those derived from the evolution of physical climatic
variables.
In relation to the energy transition process, there are
risks and opportunities related to the evolution of the
legislative and regulatory context, technological and
competitive development trends, consumer behaviour
and the consequent market dynamics.
Physical climate risks are further divided into acute
(extreme events) and chronic: the former are linked to
the occurrence of extreme weather conditions; the
latter are linked to gradual but structural changes in
climatic conditions.
The effects of the risks and opportunities of the
transition and climate change can be assessed over
three-time horizons:
• Short-medium term (1-3 years) in which
analyses are based on sensitivity scenarios built
on the basis of the Strategic Plan presented to the
markets at Capital Market Day 2024
• Medium term (4-10 years) in which the effects of
the energy transition emerge in a more tangible way
• Long term (more than 10 years) in which, in
addition to the most obvious effects of the transition,
chronic changes in the climate will be appreciated.
The table below summarizes the main sources of
risk and opportunity with the potential effects on the
business.
Stage
phenomena
Horizonte
temporal
Description
Management methods
Transition
The short term
(1-3 years)
Timeliness: Timely and effective new policies
and regulations (e.g., simplified permitting
procedures, pricing and CO2 emission policies,
and market design reviews) to accelerate the
energy transition and the development of
related technologies.
The Group maximises opportunities thanks to
a business integrated into the development
of renewals, the effort of the distribution
and retail sales grids and the geographical
positioning, which allows it to take advantage
of the opportunities of the transition in the
countries in which it operates. In addition,
the Enel Group uses transition scenarios
for
strategic
assessments,
including
an
Accelerated Transition scenario
Transition
The medium
term (4 - 10
years)
Risk:
Inadequate
or
late
policies
and
regulations
by
public
institutions
in
supporting the energy transition, which
aggravate
bureaucracy
and
delays
in
authorisation processes, causing a slowdown
in technological development.
The Group reduces risk exposure through
its integrated position in generation, grids
and retail, and its geographical positioning,
which minimises local political risk. In addition,
the Enel Group uses transition scenarios
for strategic assessments, including a slow
transition scenario.
Sharp physique
The short term
(1-3 years)
Risk/opportunity: weather and climate events
that are particularly extreme in intensity, which
can damage assets or reduce operations and
have effects on the value chain.
The group adopts best practices to achieve
the fastest operational return and invests in
resilience (e.g. in the case of Italy). In addition,
global
insurance
programs
are
defined,
supported
by
maintenance
prevention
activities
and
internal
risk
management
policies. Finally, climate change scenarios are
integrated into assessments of operational
assets and new projects.
Sharp physique
Medium (4 – 10
years) and long
term (more than
10 years)
Risk/opportunity: increase or decrease in
production from renewable sources and
demand for electricity as a result of structural
changes in resource availability and increase
or decrease in electricity demand due to
temperature variation.
The Group's geographical and technological
diversification ensures that the impacts of
the variation of a single variable are mitigated
at a global level. The Group adopts a number
of practices such as weather forecasting,
real-time monitoring of plants and long-
term climate scenarios in the planning and
evaluation processes of new projects
Key risks and opportunities related to climate change
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
180
It then examines the main sources of risks and
opportunities identified from the evolution of
transition
scenarios
and
physical
variables,
operational best practices for the management of
weather and climate events, and qualitative and
quantitative impact assessments conducted to date.
The process of disclosing risks and opportunities
related to climate change is gradual and incremental,
in line with the recommendations of the TCFD,
the European Corporate Sustainability Reporting
Directive (CSRD) and in line with evolving reporting
standards.
Enel's resilience to the energy transition and
climate change
Climate change, technological developments, policies,
and macroeconomic and geopolitical factors require
resilient business strategies that are able to cope with
external shocks and seize new opportunities.
The strategy aimed at complete decarbonisation and
the energy transition makes the Group resilient to risks
and maximises opportunities for the development of
renewable generation, infrastructure and enabling
technologies,
also
thanks
to
its
geographical
positioning in countries with an integrated presence.
The Enel Group promotes and enables the transition,
preparing to take advantage of all opportunities.
Climate change, technological developments, policies,
and macroeconomic and geopolitical factors require
resilient business strategies that are able to cope
with external shocks and take advantage of new
opportunities with flexibility. Integrating alternative
energy transition and climate change scenarios into
planning is key to helping guide strategy
The use of long-term climate scenarios allows the
development of adaptation plans for the Group's
portfolio of assets and activities and is also part of the
inputs to the analysis activities focused on biodiversity.
Climate scenarios provide high-level indications
(such as comparable country risk indices) and high-
resolution data for analysing physical impacts at
individual sites. By combining climate analysis with
asset vulnerability assessment, it is possible to identify
priorities for intervention and define adaptation plans.
The approach applies to both the existing portfolio and
new investments. More details on new investments
are provided in the section "Including the impacts of
climate change in the evaluation of new projects".
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
Integration of
scenarios
On a high level (e.g., open
country risk, energy
system evolution)
Specific site (e.g.,
high-resolution climate
data)
Vulnerability
assessment
Vulnerability analysis to
quantify the risk at asset
level (new and existing
investments)
Priority
identification
Definition of adaptation
priorities at local level,
and of the main risks and
adaptation actions at the
national level
Adaptation
plan ore
Defining long-term
adaptation plans to
increase resilience
181
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Opportunities and risks of the energy
transition
The energy transition represents an opportunity
for the Group to generate value and consolidate its
leadership in the sector. The Strategic Plan is firmly
geared towards long-term growth, in line with the
Paris Agreement. In fact, the Group focuses on the
development and management of infrastructures that
allow the transition, such as distribution grids, and on
the progressive increase in generation from renewable
sources and the electrification of final consumption.
The external context highlights the potential for
new initiatives related to policies and regulations in
the field of renewable energies, grids and end-use
electrification, which the Group's strategy can exploit
thanks to geographical and business diversification. In
addition, in order to take advantage of opportunities
and minimize risks, strategic choices are accompanied
by
analysis
through
scenarios
and
sensitivity,
which reinforces the ability to respond flexibly and
resiliently to changes in the economic, regulatory and
technological context.
The energy transition can affect the Group in several
ways, including:
Variables impacted by
the energy transition
• Policies and regulations: legislation, market design and regulatory
frameworks, including those relating to CO2 emissions, with implications for the
speed of decarbonisation trends, in particular with regard to the penetration
of renewable energy. The electrification of consumption and the need for
investments in grids.
• Market: Market dynamics, such as those related to the volatility of raw material
prices and the consumption preferences of end customers, can influence
the shift towards more efficient electricity technologies and the growth of
renewables and PPAs. Material price volatility and slowdowns/disruptions pose
the risk of an increase in prices and the availability of some transition materials
• Technologies: Introduction and development of new technologies such as
electric vehicles, storage, demand response, and electrolysers, which can lead
to changes in consumption patterns. Data centre development, with a relative
increase in electricity demand and the need for connections.
• Products and services: As end-uses become increasingly electrified, the
penetration of electric technologies is growing, as is the opportunity to provide
bundled services and products, and mobility-related demand for electricity is
increasing.
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
182
To quantify the risks and opportunities arising
from the energy transition, the transition scenarios
described in the "Energy transition scenarios"
section have been taken into account. In Enel Chile's
baseline scenario, the progressive electrification
of final energy consumption, particularly in the
transport and residential sectors, leads to an
increase in electricity consumption and thus a
growth in electricity demand. accompanied by an
increase in the share of renewable energy in the
electricity and energy mix.
Next, the effects of the Slow Transition and
Accelerated Transition scenarios on the variables
that can have the greatest impact on the business
were identified: electricity demand, influenced by
the electrification dynamics of consumption, and
the electricity generation mix. With reference to the
electrification of consumption, the slower transition
scenario foresees lower penetration rates of
electric technologies, in particular electric cars and
heat pumps, resulting in a decrease in electricity
demand compared to the baseline scenario,
which is estimated to have a limited impact on the
*Benchmark to 2030
Advantage
Disadvantage
Scenario phenomenon
Description
Time horizon
Description of impacts
Transition
Risk/opportunity:
Greater/lesser penetration
of renewable energies
Medium
Assessment of the impact of a different degree
of renewable energy penetration on additional
capacity compared to two alternative
transition scenarios to the reference scenario
Transition
Risk/opportunity:
Greater/lesser degree
of electrification of
consumption
Medium
Assessment of the impact of a different
degree of electrification of consumption with
respect to the average unitary consumption on
electricity demand, considering two alternative
scenarios of transition to the reference
scenario
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
183
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
commodities retail business. At the same time,
lower electricity demand would lead to less room for
renewable capacity development, with impacts on
the generation business, partially offset by higher
electricity prices compared to a scenario with more
renewable energy sources.
In the Accelerated Transition scenario, stricter
transition targets and more competitive electricity
technologies are assumed compared to the Baseline
scenario. This translates into increased electricity
demand and renewable capacity.
All scenarios see an increasingly important role for
grids, with an increase in distributed generation,
storage, electric charging infrastructure and the
rate of electrification of consumption. This increase
is most evident in the accelerated scenario. This will
lead to a decentralization of extraction/injection
points, increased electricity demand and average
power required, variability of energy flows, which
will require dynamic and flexible grid management.
GBL interested
(icon)
Perimeter
Quantification -
Type of impact
Advantage/
Disadvantage
Quantification - range
<100 €mln
100-300
€mln
>300 €mln
Global generation
Chile
Ebitda/year*
Advantage
Disadvantage
Global Enel X Retail
Global Grids
Chile
Ebitda/year*
Advanatge
Disadvantage
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
184
Value chain transition risk
The energy transition is transforming the value
chains of integrated public services, impacting the
supply of raw materials and materials.
The decarbonisation process progressively reduces
dependence on fossil fuels, in particular gas, with
a consequent reduction in the risk to continuity of
supply. Enel's decarbonization strategy reduces the
impact of any risks related to the volatility of fossil
raw material prices, ensuring greater long-term
stability.
The growing adoption of renewable technologies,
such as solar and wind, requires large volumes of
metals and minerals, such as aluminium, copper,
polysilicon and lithium. The high geographic
concentration of some of the assets exposes
utilities to geopolitical risks, such as supply chain
disruptions and price fluctuations. To mitigate the
transition risks associated with the materials supply
chain, Enel adopts strategies to diversify sources and
suppliers and adopts a strategy aimed at circularity,
favouring the use of recycled materials, extending
the useful life and recovery of materials. This
improves resilience, reduces costs and accelerates
the energy transition.
The energy transition brings various benefits for
the end consumer and for society. Increasing
electrification, supported by the growth of renewable
generation (clean electrification) is the most
effective measure for the decarbonization process.
The electrification of end-uses makes it possible
to save energy and therefore reduce total energy
costs for consumers, which helps to reduce end-
customer spending. For example, the most efficient
model of medium-sized electric car uses about
half the primary energy compared to an equivalent
vehicle with an internal combustion engine, while
heat pumps consume less than 25% of the energy
used by gas boilers (IEA, Energy Efficiency 2024). In
addition to the economic benefits, electrification
of consumption offers customers environmental
and social benefits, such as improved air quality
through reduced local emissions and the ability to
self-produce energy.
Risk Identification, assessment and management of risks in
relation to physical phenomena
Regarding the risks and opportunities associated with
the physical variables, and taking as a reference the
scenarios of the Intergovernmental Panel on Climate
Change (IPCC), the trend of the following variables and
the associated operational and industrial phenomena
are evaluated, as potential risks and opportunities.
Chronic physical changes represent
both risks and opportunities
Based on the climate scenarios developed in
collaboration with the ICTP of Trieste, material variations
between 2030 and 2050 begin to be observed. In
practice, although 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 the average reference
values are already changing. Instead, this is established
over a longer time horizon, with probability intervals
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
185
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Variables Affected
by Chronic Physical
Changes
• Electricity demand: change in the average level of temperatures with effect on
the potential increase and/or reduction of electricity needs.
• Thermoelectric production: variation in the level and average temperatures of
seas and rivers with effects on thermoelectric production.
• Hydroelectric production: change in the average level of precipitation
and snowfall and temperatures with potential increase and/or decrease in
hydroelectric production.
• Solar production: change in the average level of solar radiation, temperature
and rainfall with potential increase and/or decrease in solar production.
• Wind production: effect for the variation of the average wind level
• Value chain: change in average rainfall level with potential supply chain impacts
Regarding electricity demand, the impact of the
increase in temperature due to climate change was
evaluated, along with the contribution of the Energy
Transition, which is prevalent in all scenarios. The
calculation was made using models that describe
the energy system at the country level, taking into
account temperature variations, through indicators
that represent the energy needs for cooling
(Degrees Days of Cooling) and heating (Degrees
Days of Heating), and the technical, socioeconomic,
political and regulatory specificities of each country
(Energy System Model).
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
High
Low
Not relevant
Rain/snow
Wind
Solar radiation
Sea level
Air temperature
River/sea
temperature
Thermal
Solar
Wind
Hydro
Storage
Geothermal
Grids
Enel X
Value chain
Priority
PRIORITY
CHRONIC EVENTS I IMPACT MATRIX 2024
186
On the other hand, in the value chain, Enel has
launched an analysis on the risk of climate events,
identifying the perimeter potentially most impacted
by climate change (see box: "physical risk of acute and
chronic events in the value chain").
The table below shows the relevant chronic phenomena
based on the specificities of each activity, including
GRIDS and Enel X Global Retail, also associating a
priority.
Analysis of the chronic climate change
impact on renewable generation
To calculate the impact of the chronic effects of
climate change on the production of the Group's
assets, a series of ad hoc functions have been
constructed for each renewable technology (wind,
solar and hydropower) and plant, which associate, with
each variation of climatic variables (e.g. temperature,
irradiation, wind speed, precipitation), probable
changes in terms of the electricity production of the
plants in our portfolio.
To calibrate these "linkage" functions, we start from
the historical data of the meteorological-climatic
variables1 and the internal references of the observed
1
Historical data from ISPRA (Higher Institute for Environmental Protection and Research) and ERA5 data from ECMWF (European Centre for
Medium-Range Weather Forecasts)
*Benchmark to 2030
Advantage
Disadvantage
Scenario phenomenon
Description
Time horizon
Description of impacts
Chronic physical
Risk/opportunity:
Greater or lesser
renewable production
Medium
Renewable energy production is influenced by
the availability of resources, whose fluctuations
can have an impact on the business. While no
structural changes are expected in the short
term, to assess the results sensitivity of the
Group, sensibility assessment were performed,
considering historical weather volatility and
productivity variations relative to different
climate scenarios.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
187
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
2
Historical data from ISPRA (Higher Institute for Environmental Protection and Research) and ERA5 data from ECMWF (European Centre for
Medium-Range Weather Forecasts)
productive energy of our plant fleet. In this way,
link functions were obtained that respond to the
specific characteristics of each plant and renewable
technology, which were used to calculate the effects
of climate change on production.
To calibrate these functions, we start from the historical
data of the meteorological and climatic variables2
and from the internal references of the observed
productive energy of our fleet of plants. In this way,
link functions were obtained that respond to the
specific characteristics of each plant and renewable
technology, which were used to calculate the effects
of climate change on production.
Depending on the characteristics of the country,
a reduction in the energy produced can lead to
imbalances in the field of supply that must be
compensated by buying the missing volumes in
the market to feed the commercial strategy or by a
reduction in the volumes sold. Conversely, higher
renewable production leads to a possible reduction in
the purchase of volumes in the market, or to higher
sales. Significant chronic effects on production are
observed in the medium and long term. The effects on
the business were calculated using the chronic climate
impacts on production in the worst-case scenario RCP
8.5 for the negative side, while the positive side was
estimated using the value of the uncertainty interval
around the average of RCP 2.6 corresponding to the
lowest level of climate change. The following table
shows the results of this analysis:
GBL interested
(icon)
Perimeter
Quantification
-Type of impact
Advantage/
Disadvantage
Quantification - range
<100 €mln
100-300
€mln
>300 €mln
Global generation
Chile
Ebitda/year*
Advantage
Disadvantage
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
188
Acute physical changes: risk and
opportunity sources
The risks associated with acute physical phenomena
(extreme events) are assessed both in the short
term and in the medium-long term, using scenarios
(CPR 2.6, 4.5 and 8.5) to assess possible variations in
frequency and intensity.
Regarding the vulnerabilities of assets within the
portfolio and supply chain, a table has been defined,
in order of priority, in collaboration with the Group's
Global Business Lines, with the main extreme events
relevant to the different technologies, as is done for
chronic phenomena:
Regarding to the lighting phenomenon, Enel Chile
has begun to evaluate the priority of the different
technologies. Therefore, in order to understand the
possible impacts on the Business, we start from this
matrix to carry out, where necessary and possible, ad
hoc analyses in order of priority.
Managing the risk of short-term extreme
events
In the short term (1-3 years), the Group, in addition
to risk assessments, implements actions aimed
at reducing the impacts that the business may
suffer as a result of extreme catastrophic events.
In this sense, two main types of actions can be
distinguished: the definition of effective insurance
coverage and the various activities of adaptation to
climate change, linked to the prevention of damage
that could arise from extreme events.
The general characteristics of these actions are
illustrated below, and in the case of adaptation
activities for harm prevention and mitigation,
specific reference will be made to Global Business
Lines.
Impacts of acute physical events on the
Group
The Enel Group has a broadly diversified portfolio in
terms of technologies, geographical distribution and
asset size and, as a result, the portfolio's exposure
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
ACUTE EVENTS I IMPACT MATRIX 2024
High
Low
Not relevant
Heatwaves
Flooding/ heavy
precipitation
Heavy snow /
Icing
Hail
Windstorm
Wildfires
Thermal
Solar
Wind
Hydro
Storage
Geothermal
Grids
Enel X
Value Chain
Under
assessment
Priority
PRIORITY
189
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
to natural risks is also diversified. Empirical evidence
reports negligible repercussions of these risks, as
shown by data for the last 5 years. Considering the
most significant events, defined as events with a
gross impact > €10 million, the cumulative value of the
gross impact amounts to ~€140 million, representing
less than 0.06% of the Group's insured values in 2023,
equivalent to ~€220 billion
Insurance
The Group annually defines global insurance programs
for its businesses, present in the different countries in
which it operates. The two main programmes, in terms
of breadth of coverage and volumes, are as:
• The Property Damage and Business Interruption
Insurance Program relates to property damage
to assets and resulting business interruption.
Therefore, in addition to the cost of rebuilding the
asset (or parts thereof), economic losses due to its
inactivity in terms of electricity production and/or
distribution are also compensated, within the limits
and conditions defined in the policies.
• The
Civil
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 the
Group's assets and business.
Based on an effective risk assessment, including
extreme natural events related to climate change,
it is possible to define appropriate insurance
limits and conditions in coverage policies. Despite
significant impacts on the business, the Group has
shown resilience thanks to the captive company's
broad coverage limits and a strong reinsurance
structure.
In addition to insurance coverage, the Group attaches
great importance to the prevention of the maintenance
of energy production and distribution assets. These
activities not only mitigate the impacts of extreme
events, including natural catastrophe risks, but also
optimize risk financing and reduce the costs of global
programs.
The Group's strategy integrates adaptive management
and insurance measures, such as limiting the increase
in insurance premiums through risk retention and
internal transfer policies that incentivise the most
virtuous Business Lines. Finally, ex-post analyses of
events allow for improved processes and practices to
mitigate future similar impacts.
Acute Event Risk Index (AERI) –
Assessment of future risk evolution to
prioritize adaptation actions
The in-house developed Acute Event Risk Index
(AERI) provides a concise indication of the change
in risk due to acute weather events for renewable
plants. In particular, it shows the proportion of
installed capacity that will be located in areas of
greater or lesser climate risk depending on the
increase in the expected hazard due to global
warming in the period 2030-2050 compared to the
historical period1.
AERI considers the Group's hydroelectric, solar
and wind assets (EGP and Enel X) and includes
plants that have entered into operation until 2023.
It is constructed from the climate metrics and the
approach followed for the preliminary screening
and therefore this index provides a synthetic
representation of the screening carried out for
each asset and relevant physical phenomenon. The
aim is to identify the plants that will be subject to
more intense climate change in order to define
the priorities for the detailed analyses needed to
identify the adaptation actions to be implemented.
The AERI Group value for each risk category is
calculated by aggregating the results by asset.
The latter are obtained by considering the relevant
phenomena for which the level of future climate
change is calculated and subsequently, through an
appropriate weighting, a risk class is assigned (high,
medium, low, very low). As shown in the figure below,
in RCP 2.6, 88% of the Enel Group's total capacity
analysed is associated with low or very low risk:
plants in these two categories should not be subject
to significant climate changes in this scenario,
compared to the already known hazard values.
Therefore, for these assets, the criteria adopted, and
the actions already implemented remain adequate
1
With AERI, the Group's plants are assumed to be resilient to the extreme events observed in the past.
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
190
and detailed analyses will be given lower priority. In
any case, the analyses will be continuously updated
and refined to ensure that the expected climate
change is monitored at all plants. Approximately 10%
of the capacity, meanwhile, is located in medium-
risk areas. This means that the situation of the
assets must be analysed continuously to prioritize
deeper analysis and higher-resolution data in
order to define the need for adaptation to specific
phenomena. Finally, 2% of the total capacity is
located in areas classified as high risk for climate
change: for these plants, a detailed analysis is a
priority to identify possible adaptation measures.
The index was also estimated for CPR 8.5, which is used as a stress test. In the worst-case scenario, the percentages
of high- and medium-risk assets increase, reaching 4% and 22% of the total capacity analysed, respectively. The
remaining 74% are located in areas characterized by low and very low climate risk.
Acute Event Risk Index (AERI) assessed at the group level for RCP scenario 2.6
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
10%
2%
11%
High
Medium
Very low
Low
77%
GROUPING OF THE GROUP’S INSTALLED CAPACITY (%) INTO DIFFERENT
CLIMATE CHANGE RISK CATEGORIES (RCP 2.6 SCENARIO)
191
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Climate change adaptation activities
The Group implements climate change adaptation
solutions in accordance with a global approach
that acts by assessing potential impacts in order to
properly calibrate the measures needed to improve
the capacity to respond to adverse events, such as
Response Management, and increase the resilience
of the business, such as Resilience Measures, thus
reducing the risk of future negative impacts of adverse
events.
Adaptation solutions can include both actions,
policies and best practices implemented in the short
term, as well as long-term decisions. In the case of
new investments, in line with the general approach,
measures can also be taken already at the design and
construction stage, to reduce the impact of climate
risks from the design, as described in the paragraph
"Inclusion of climate change impacts in the evaluation
of new projects".
The following table shows a summary of the type
of actions that Enel implements. The following
paragraphs describe some activities in more detail.
Line of business
A. Resilience measures: improving the resilience
of assets
B. Response management: management of
adverse events
Generation
Existing assets
1. Guidelines for risk assessment and design of
hydraulic technology.
2. "Lessons learned feedback" processes from
O&M to E&C and BD.
3. Policy No. 1289 Enel Green Power and Thermal
Generation Climate Change Risk Assessment
Nuevos activos
In addition to what has been done for existing
assets:1-Climate Change Risk Assessment in line
with the new Policy No. 1289 Enel Green Power
and Thermal Generation Climate Change Risk
Assessment
Existing assets
1. Management of incidents and critical events.
2. Site-specific emergency management plans
and procedures.
3. Specific tools for predicting imminent extreme
events and bad weather alerts
Distribution and grids
Existing assets and new construction
1. Guidelines for the definition of plans to increase
network resilience (e.g. "Network Resilience
Improvement Plan" E-distribution)
2. Strategies and Guidelines on Risk Prevention
actions in the distribution network.
Existing assets
1. Strategies and Guidelines on Preparedness,
Response and Recovery Actions in the
distribution network
2. Global Guidelines for Emergency and Critical
Event Management
3. Risk prevention and preparedness measures in
the event of fires in electrical installations (lines,
transformers, etc.)
Enel X
Existing assets
1. Preliminary analysis of the impacts of climate
change in the medium and long term.
Existing assets
1. Enel X critical event management.
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
192
Enel Chile has also completed a project dedicated
to the construction of a catalogue of practical
intervention actions, aimed at improving the resilience
of assets and their ability to respond to the possible
effects of climate change.
This catalogue includes specific actions for each
of the significant events reported in the matrices
of the significant phenomena identified, for each
geographical area of interest to the Group and
differentiated according to the different technologies
of the assets owned in these areas. The list of possible
adaptation measures is maintained and updated
cyclically in the light of emerging needs and further
analysis.
The catalogue is an important element that captures
possible adaptation options, from which it is possible
to make estimates of costs and benefits related to
applications in specific sites and identify the best
actions to take.
How security activities contribute to the preventive
management of vulnerabilities
As part of the adaptation activities carried out, the
Group is implementing an innovative model for
vulnerability analysis and management, aimed at
preventing crises and helping to reduce physical,
operational and reputational risks, containing Enel's
exposure to potential threats and economic impacts.
This model favours the preventive approach, to identify
and mitigate risks before they become real crises or
emergencies.
A key aspect of this approach is the promotion of
shared emergency management, with the synergistic
participation of all relevant institutional and business
actors, including the strengthening of public-private
relations, through the provision of memorandums of
understanding with local authorities, police forces
and other agencies providing essential services. This
cooperation system allows for smoother emergency
management,
favouring
a
rapid
exchange
of
information and more effective coordination during
critical phases. In addition, the security function
carries out continuous education and training
activities to develop awareness and skills for crisis
management, including climate change. In the
context of this collaborative strategy, joint crisis drills,
conducted in collaboration with police forces and civil
protection, are essential to test response capacity on
the ground and refine procedures to ensure timeliness
and efficiency.
The other pillar of this model is the introduction of a
maximum level of "early warning" as an intermediate
phase before the activation of extraordinary crisis
management measures, to monitor the evolution
of risk situations and quickly activate intervention
procedures. In the event of maximum pre-alert, a crisis
operations room is activated, which will be located
in one of the responsible public administrations,
which acts as a coordination centre for all
emergency management activities. By centralizing
communications and decisions, you can ensure
efficiency and speed of response to events that may
compromise the security of critical infrastructure and
essential services.
Resilience in generation
In terms of power generation, over time the Group has
carried out specific interventions at specific sites and
has established ad hoc management activities and
processes.
Among the actions in specific sites, in recent years we
have mentioned, for example:
• Weather forecasts, both for the monitoring of
renewable resources and extreme events, also
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
193
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
with alert services for the protection of people and
property.
• Improvement of the cooling water management
systems of some plants to compensate for
phenomena derived from the lowering of rivers,
such as the Po River in Italy.
• Specific
technological
interventions
("Misting
Systems")
to
improve
incoming
airflow
and
compensate for the reduction in power due to the
increase in ambient temperature in the CCGTs.
• Installation of drainage pumps, raising of the
embankment, periodic cleaning of the canals and
interventions to strengthen the land adjacent to the
plants with respect to landslides and mitigate flood
risks.
• Advanced asset health monitoring. Periodic re-
evaluation of flood scenarios for hydroelectric
plants through numerical simulations. The scenarios
developed are managed with mitigation actions and
interventions in civil works, dams and intake works.
• Verification of possible climatic trends of the
main design parameters to be considered in the
dimensioning of systems and specific civil works
(e.g. rainfall assessments in the design of drainage
systems in solar plants).
• Estimation of extreme wind speeds using up-to-
date databases containing the historical records
and trajectories of hurricanes and tropical storms,
resulting in the selection of the most suitable wind
turbine technology.
In addition, in order to react quickly to adverse events,
specific procedures for emergency management are
adopted, with real-time communication protocols,
planning and management of all activities to restore
operations quickly. Standard checklists are also used
to assess damage and ensure a safe return to service
at all plants as soon as possible. To minimize the
impacts of climate phenomena, a feedback process
of lessons learned is implemented, regulated by the
existing operating model and directed by the technical
functions, thus influencing future projects.
The analysis of future climate impacts to identify
adaptation needs: in the Generation business line,
based on the mapping of relevant phenomena
worldwide, analyses of acute and chronic climate risks
are carried out annually to estimate the medium and
long-term future impact on the Group's generation
plants. In particular, the analysis of acute events is
carried out in two phases:
• Preliminary hazard and exposure screening for all
hydropower, wind and solar plants with the aim of
classifying the existing fleet, considering specific
vulnerabilities and identifying the plants with the
highest risk on which detailed analysis can be
performed.
• Detailed analysis of the plants found to be most
at risk, allowing for future identification of any
adaptation actions to prevent impacts such as
direct damage and loss of production.
The detailed analysis has been developed to take
into account climate projections and all information
about the site and the asset, in order to identify
the assets exposed to the relevant phenomenon.
Among the analyses carried out, for example, we
mention the study of intense rainfall, functional to
identify interventions such as hydraulic mitigation
actions or interventions on support structures in
the case of solar panels. The studies also cover
heat and cold waves, for example, in the case of
solar and wind power plants. In addition, the risk of
fire and windstorms is also analysed, with respect
to which the results have shown a high resilience
by design, especially of wind farms. Overall, the
detailed analysis of the existing fleet identified a
limited number of high-risk, long-term assets. The
methodologies developed contribute to improving
resilience (e.g. with adaptive designs) and the
management of residual risks and emergencies.
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
194
Network resilience at the centre of Enel's strategy
The Enel Grids business line, following the Group's
guidelines mentioned above in the section "Main risks
and opportunities related to climate change", has issued
a specific policy (Climate Change Risk Assessment) in
order to provide the general criteria, methodology and
requirements adopted for the identification, analysis
and assessment of risks related to Climate Change, in
relation to assets under management and activities
carried out. in order to monitor the risk and the actions
to be taken to mitigate its impacts.
To deal with extreme weather events, it has adopted
an approach called "4R" that aims to ensure an
innovative strategy for the resilience of distribution
grids, and which, in an appropriate policy, defines the
measures to be taken both in the preparation phase
of an emergency in the network and for a sudden
restoration of the service ex post. when weather
events have caused damage to assets and/or power
outages.
The 4R strategy is divided into four phases:
1. Risk prevention: includes actions that reduce
the probability of losing network elements due
to an event and/or minimize its effects, i.e. both
interventions aimed at increasing the robustness of
the infrastructure and maintenance interventions.
The choice of technical solutions to increase
resilience is guided by a catalogue that identifies
the best intervention by climate and geographical
event.
2. Preparedness: includes all interventions aimed at
improving the timeliness with which a potentially
critical event is identified, ensuring coordination
with Civil Protection and local institutions, as well as
preparing the necessary resources once there has
been an interruption in the network.
3. Answer: Corresponds to the phase in which the
operational capacity to deal with an emergency
in the event of an extreme event is evaluated,
directly related to the ability to mobilize operational
resources in the field and the possibility of
performing
refuelling
manoeuvres
remotely
through resistant backup links.
4. Recovery: this is the last phase, in which the
aim is to return the network, as soon as possible,
to normal operating conditions, in cases where
the extreme weather event has caused service
interruptions despite all the resilience measures
previously adopted.
Following this approach, the business line has
developed several Policies on specific actions aimed
at addressing the various aspects and risks inherent
to climate change, in particular, we cite as an example:
• Guidelines for Emergency Preparedness, Response
and Recovery actions, policy related to the last three
phases of the 4R approach described above.
• TRisk Prevention and Preparedness Measures
In the event of forest fires affecting electrical
installations, a policy dedicated to fire risk defines
an integrated emergency management approach
applied to the phenomenon of forest fires.
• Implementation of weather prediction systems,
monitoring of the state of the network and
evaluation of the impact of climate phenomena,
the preparation of operational plans including prior
agreements for the mobilization of extraordinary
resources and the organization of exercises.
The analysis of future climate impacts to identify
adaptation needs: The grids, based on the mapping of
relevant phenomena worldwide, monitor the trend of
the most critical phenomena in the different countries
of presence, and analyse the future impact of climate
change on the network in the medium and long term.
To this end, priority analyses are identified, from which
detailed analyses have been carried out for specific
phenomena and geographies, such as:
• Heavy rains/windstorms: a first analysis was
carried out in Chile on the impacts of windstorms
in the concession area in Santiago de Chile,
which revealed the persistence of the monitored
phenomenon for future planning of interventions to
strengthen the air network.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
195
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Adaptation activities – Enel X
In order to cope with extreme weather events, Enel
X's GR Business Line continued its work to estimate
the potential impacts of physical phenomena in order
to define related actions to adapt to climate change,
through a more detailed identification of climate risks
and solutions capable of making assets more resilient.
For the assets owned, which represent a minority
stake, impact analyses continue and group insurance
policies on damage due to catastrophic events are
foreseen.
In addition, through marketing intelligence initiatives,
Enel X Global Retail is assessing the short-, medium-
and long-term needs of customers to offer new
solutions and services. The current context, in fact,
allows it to explore business opportunities related to
climate change to integrate them into its offer and
enrich the value proposition to customers to support
them in raising awareness of the climate risks of their
assets with the aim of increasing their resilience.
In this regard, Enel X Global Retail provides the Enel
X NBS Biodiversity Handbook and the Enel X Urban
Biodiversity Scoring Model, two tools to mitigate
global warming that allow the integration of the most
appropriate Nature-Based Solutions (NBS) for each
business solution and assess their positive impact on
the climate, natural resources and human experience
through a wide set of scientific indicators.
To this end, Enel X Global Retail uses the Group's
catalogue of adaptation actions, which provides for
specific intervention measures for its technologies,
aimed at improving the resilience of assets and their
ability to respond to the possible effects of climate
change. The catalogue is an important element that
captures adaptation options, from which it is possible
to carry out analyses of avoided costs and risks in
relation to applications in specific sites. Regarding the
PV assets owned by the Business Line, the impacts of
relevant acute events (such as floods and windstorms,
among others) and the cost-benefits of adaptation
actions were assessed using climate projections up to
2050.
Physical risk from acute and chronic events in the Value Chain
Climate change is a challenge for the entire value
chain, affecting all stages, from production to final
consumption, including distribution. As mentioned
above, Enel carefully assesses the physical risk of
weather events to its operations. However, potentially
significant impacts are also seen in the supply
chain, where more intense and frequent extreme
weather events can compromise the transportation,
supplies, and operations of production sites. Events
such as the severe drought in the Panama Canal
(2023-2024) and the consequent reduction in daily
transits have shown how weather conditions can
affect logistics and the distribution of goods
Enel has launched an analysis of the climate risk
associated with the main supply chains, such as
those for photovoltaic modules, wind turbines,
stationary batteries, cables, transformers and
chargers for mobility, and those for raw materials,
such as gas and coal, analysing production sites and
major shopping centres, such as the Panama Canal.
Information on the logistics chain and production
sites of the Group's suppliers and component
manufacturers was overlaid on climate analyses
for a preliminary risk assessment by identifying the
most exposed areas. Climate indicators, calculated
from data from a set of global CMIP6 models for the
three CPR reference scenarios, were used for these
analyses. These assessments will be progressively
expanded and improved.
For all future scenarios in the period 2030-2050
compared to the historical reference (1990-2020),
the average number of days per year with heat
waves will tend to increase. This increase will be most
intense in mainland China, where several production
sites related to the PV and battery chain are located,
and in some areas of South America, in particular in
Brazil and Colombia, where some production plants
for the cable and transformer chain are located.
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
196
For the other phenomena (droughts, floods,
frosts), the climate data of the RCP scenarios
show heterogeneous variations in the different
regions. In the southern area of China, where many
production sites are located, and in the production
areas of South America, increases in heavy rainfall
are expected in the RCP 2.6 scenario. By contrast,
for factories in northern China, India and Brazil, a
reduction in chronic rainfall is expected.
As far as the Panama Canal is concerned, the
number of consecutive days of drought will increase
in the 2.6 PCR scenario and, more significantly, also
in the 8.5 PCR scenario compared to the historical
reference period.
Enel adopts specific strategies that help mitigate
risks, such as supplier diversification and the
application of standard contractual clauses that
include the stipulation of insurance contracts,
guarantees and the management of force majeure
events. To date, Enel has not experienced significant
direct damage to its supply chains due to weather
events, although these events may have led to delays
in deliveries.
Inclusion of climate change impacts in the evaluation
of new projects
Many activities related to the evaluation and
implementation of new projects can benefit from
climate analyses, both general and site-specific, which
the Group is beginning to integrate with those already
considered in the evaluation of new projects, including:
• Preliminary studies: in this phase, climate data
offer preliminary screenings, through the analysis
of specific climate phenomena, such as those
shown above in the analysis of physical scenarios
and summarized in indicators such as the Acute
Event Risk Index. These data provide a preliminary
measure of the most relevant phenomena in the
area, among those identified as being of interest to
each technology.
• Estimation of expected productivity: climate
scenarios are integrated to assess how climate
change will change the availability of the renewable
resource at the specific site. In the paragraph
"Analysis of the impact of chronic climate change on
renewable generation", the approach applied to the
generation portfolio is described, which is the same
as that used for new investments.
• Environmental impact analysis: The Group has
begun to integrate, in the set of documentation
produced for the new plants, the Climate Change
Risk Assessment, which contains a representation
of the main physical phenomena and their expected
change in the area.
• Resilient design: as described, among the
activities for adaptation to climate change, those
aimed at the design of resilient assets by design
are of great importance; the Group is expanding
existing analyses based on historical data already
in use, in order to increase the resilience of future
assets, including all adaptation actions that may be
necessary during the life of the project.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
197
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
[NCG 461 - 9.2]
Policies related to climate change mitigation and adaptation
In order to facilitate the proper identification and
management of climate change-related risks and
opportunities, a Group policy outlining common
guidelines for assessing climate change-related risks
and opportunities was published in 2021. The "Climate
Change Risks and Opportunities" policy defines a
shared approach to integrating climate change and
energy transition issues into the Group's processes
and activities, thus informing industrial and strategic
decisions to enhance business resilience and the
creation of long-term sustainable value, in line with
the adaptation and mitigation strategy. In fact,
they pursue climate change mitigation goals, with
a decarbonization strategy, focused on renewable
energy, electrification, and enabling technologies in
combination with an adaptation strategy, integrating
business processes to reduce and manage risks and
seize opportunities.
The main steps to integrate climate analysis into
processes and activities, outlined in the Policy, are as
follows:
• Prioritization of phenomena and analysis of
scenarios. These activities include the identification
of physical and transition phenomena relevant to
the Group and the consequent development of the
scenarios to be considered, processed through the
analysis and processing of data from internal and
external sources. For the identified phenomena,
functions can be developed that link scenarios
(e.g., data on change in renewable resources) with
business operations (e.g., change in expected
producibility).
• Impact assessment. It includes all the analyses
and activities necessary to quantify the effects
at the operational, economic and financial levels,
depending on the processes in which they are
integrated (e.g. design of new buildings, or evaluation
of operational performance, etc.).
• Operational and strategic actions. Information from
the above activities is integrated into the processes,
informing the Group's business decisions and
activities. Some examples of activities and processes
that benefit from it are capital allocation, e.g. for
the evaluation of investments in existing assets or
new projects, the definition of resilience plans, risk
management and financing activities, Engineering
and Business Development activities.
Emissions
The carbon footprint at Enel Chile was 3,814 thousand
tCO2eq, which represents a reduction of 21%
compared to 2023. This reduction is mainly due to the
decrease in direct emissions, driven by an increase in
energy generation from renewable sources and the
elimination of coal from Enel Chile's energy matrix.
There has also been a decrease in indirect emissions,
especially in scope 3 emissions linked to sales to end
customers.
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
198
Scope 1 direct emissions (1)
2,376 thousand tCO2eq (24% less than in 2023). 62.3% of total GHG emissions.
Scope 2 direct emissions (2)
3.01 thousand tCO2eq (36% less than in 2023), which represents 0.1% of total GHG emissions.
Scope 3 direct emissions (3)
1,435 thousand tCO2eq (14% less than in 2023) and constitutes 37.6% of total greenhouse
gas (GHG) emissions. These emissions are broken down into those from the supply chain, gas
transportation, business trips, posting of workers, and end-users of the electricity market.
The Company has set itself the goal of reaching zero
emissions by 2040, aligning with the Enel Group's
strategy. This ambition reflects its commitment to the
country's environmental and social goals, as well as to
the expectations of its shareholders and stakeholders.
In addition, intermediate emission reduction targets
have been established that respond to the reality of
the market.
This effort will be supported by the incorporation
of new renewable capacity, the use of gas-fired
generation to meet the country's short-term needs,
helping to decommission coal-fired capacity from the
system, and addressing the variability of renewable
generation while promoting electrification.
(1) For the Inventory of Total Scope 1 Direct Emissions, in accordance with the GHG Protocol standard, emissions from thermal plants are
considered.
(2) Emissions by location are equal to those by market, based on the factors considered. It should be noted that the calculation criteria were
updated in 2023. Likewise, for the emission factors, the latest information available from the authority is being considered instead of those
previously considered by Enerdata.
(3) New categories for indirect Scope 3 emissions have been incorporated and updated, including business travel, personnel transportation, and
investments. For the calculation of emissions from sales to customers, the local authority's emission factor is used (http://energiaabierta.cl/
visualizaciones/factor-de-emision-sic-sing/).
Note: The methodology and calculation for Scope 1, 2, and 3 emissions are described in Policy No. 1081: Definition and Method of GHG
Emissions Calculation.
As of the date of this publication, the Carbon Footprint calculation for both Enel S.p.A. Holding and Enel Chile is being verified by an independent
third party. Emissions are calculated and verified according to the guidelines set forth in the GHG Protocol.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
ACCELERATING CARBON NEUTRALITY SUPPORTED BY
ELECTRIFICATION AND RENEWABLES
2024
2027
Enel Group
2040
SCOPE 1
GENERATION (1)
94
[105-135]
0
(gCO2e/kWh)
CO2
Zero emissions
ambition by
2040
CO2
No carbon remover
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 this publication, the Carbon Footprint calculation for both Enel S.p.A. Holding and Enel Chile is being verified by an
independent third party. Emissions are calculated and verified according to the guidelines set out in the GHG Protocol.
> Coal-free energy mix from october 2022
> Deployment of renewable energy
> Innovation and new technologies (H2, storage) mitigator of
the impact of climate change
> Deployment of renewable energies
199
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Enel Chile reaffirms its commitment to the fight against
climate change by leading the energy transition
towards zero emissions. As part of the Business
Ambition for 1.5°C campaign, the Company has set a
goal of reaching zero emissions by 2040, aligning with
the global goal of limiting temperature rise to 1.5°C.
Within the framework of this ambition, Enel Chile has
worked in close coordination with the authorities and
various stakeholders to close all its coal-fired power
plants, which implies significant investments in the
digitalization of the grid and in infrastructures for the
electrification of consumption in industries, cities and
communities.
Through its businesses, the Company offers services
that accelerate the decarbonization of the energy
matrix and its customers, by increasing the generation
of renewable energies, its presence in the energy
matrix, and distribution to our customers, as well as
through efficient and sustainable energy solutions
for various segments, including public institutions,
companies, etc. industries and households. In addition,
electromobility is promoted as part of the strategy
to achieve carbon neutrality established by Chile at
COP26 and complemented by the country's circular
economy roadmap.
This climate strategy also contributes to the
Sustainable Development Goals (SDGs), highlighting
SDG 7, by increasing renewable energy generation; SDG
9, through investments in digitalised infrastructure;
SDG 11, by involving society in the substitution of
fossil fuels for electricity and the modernization of
cities; and SDG 13, by leading the energy transition
and electrification in the country.
Specifies NOx, SO2, Particulate
Matter and SF6
[GRI 305-7| EU-120a.1]
Over the years, the company has implemented
technological optimizations and practices of high
international level with the aim of improving the
emissions performance of its thermoelectric plants.
This process has taken into account the local context,
the regulatory framework and the operational aspects
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
2017 (1)
2022
2023
2024
2030 (3)
2040 zero
emissions
332
238
133
99
73
0
Base line
Base line
Enel Group
Goal
Chile goal
INTENSITY OF SCOPE 1
AND 3 GHG EMISSIONS
RELATIVE TO INTEGRATED POWER
(gCO2eq/kWh)
INTENSITY OF SCOPE 1
GHG EMISSIONS RELATED
TO POWER GENERATION
(gCO2eq/kWh)
-27%
(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 this publication, the Carbon Footprint calculation for both Enel S.p.A. Holding and Enel Chile is being verified by an
independent third party. Emissions are calculated and verified according to the guidelines set out in the GHG Protocol.
2017 (1)
2022
2023
2024
2027
2030 (3)
2040 zero
emissions
365
216
128
94
105-135
72
0
-27%
Intensity Scope 1 and 3 relative to
the integrated power of Chile
Intensity Scope 1 energy
generation Chile
Enel Group S.p.A. Chile
Enel Group
Goal
200
of each technology. The main focus is on emissions
associated with thermal energy production, including
sulphur oxides (SO2), nitrogen oxides (NOx), and
particulate matter (PM).
During 2024 there was a 51% reduction for SO2
compared to the previous year, PM a 65% reduction
compared to the previous year while NOx emissions
showed a reduction of 26%.
The fluctuation in SF6 emissions is mainly attributed to
the increase in the number of electrical maintenance
operations performed at thermal power plants during
2023.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Zero emission ambition
Enel Group S.p.A. Chile
Enel Group S.p.A. Chile
Base line
2017
2022
2023
2024
Enel Group
2030 goal
Base line
2017
2022
2023
2024
Enel Group
2030 goal
2022
2023
2024
Base line
2017
2022
2023
2024
Enel Group
2030 goal
0.0055
0.006
0.003
0.005
0.001
0.002
0.05
0.005
0.36
0.15
1.43
0.16
0.0063
0.36
0.168
0.073
0.054
0.16
SO2 EMISSION INTENSITY
(g/kWh)
MP EMISSION INTENSITY
(g/kWh)
SF6(1) EMISSION
(ton eq)
NOx EMISSION INTENSITY
(g/kWh)
-90%
MP Emissions intensity
Chile
SF6 Emissions intensity
Chile
SO2 Emissions intensity
Chile
NOx Emissions intensity
Chile
(1) The fluctuation in SF6 emissions is mainly attributed to the increase in the number of electrical maintenance operations performed at thermal
power plants during 2023.
201
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Metrics and Targets
The main operational and environmental metrics and targets related to climate change risks and opportunities are
available in the various sections of this report. The following summary is presented below:
Zero emission ambition
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
2024
Goal
2027
SAIDI (minutes)
150.3
122
Total losses (%)
5.8%
5.4%
2024
Goal
2026
Charging points
(thousands)
3.6
4.1
Smart lighting
(thousands)
356
432
2024
Goal
2027
Renewable capacity (%)
78%
79%
Renewable generation (%)
80%
77%
DISTRIBUTION AND GRIDS
ENEL X
2024
Goal
2027
CO2
Intensity of direct
emissions generation
(gCO2eq/MWh)2
94
105
to 135
Water Extraction Intensity
(l/MWh)
0.14
0.18 (*)
GENERATION
* Enel Group goal
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
203
CHAPTER 4
Enel Chile's
Business and
MANAGEMENT 2024
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
205
ENEL CHILE'S BUSINESS AND
MANAGEMENT 2024
4.
ENEL CHILE'S
BUSINESS AND
MANAGEMENT 2024
Generation Business
Enel Chile has improved its diverse generation
portfolio, becoming more robust and
emphasizing renewable energy, which
constitutes 78% of its total operating capacity.
Distribution and Grids Business
The subsidiary Enel Distribución Chile is among
the country's leading electricity distribution
companies, recognized for its extensive
customer base, distribution infrastructure, and
energy sales volume.
Enel X Chile
Enel X promotes electrification within the
residential sector and the country’s different
productive sectors, leading Chile's energy
transformation and turning cities into smart and
sustainable places.
206
Enel Chile’s
business model
Enel Chile's business model has been designed to
align with the Group's strategic objectives, including
the commitments made to address climate change.
The business model outlines how the Company's
corporate units, which are connected to the core
businesses such as generation, distribution, grids, and
other companies involved in the transformation and
expansion of the electricity market, should operate to
fully capitalize on the potential advantages offered by
the key trends in the sector, particularly those related
to the energy and digital transitions, potentially also
expediting its implementation.
The primary purpose of assigning specific roles to
central corporate units is to guarantee their ability to
effectively manage and mitigate the risks associated
with the dynamic changes taking place in the energy
industry.
Generation
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 78% 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 manage its assets more efficiently and effectively, thus improving
their performance and the design of new plants.
Distribution and Grids
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 across 33 areas of the Metropolitan Region districts.
The Enel Chile Group guarantees reliable energy supply and service quality to
communities by developing and operating resilient, flexible grids. This is achieved
through robust grids, advanced technology, and digital innovation while ensuring
adequate returns on investment and cash generation.
[NCG 461 - 6.1 i]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Enel Chile’s Business Model
207
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Enel X Chile
Enel Chile promotes electrification through its subsidiary, Enel X Chile. It offers new
energy products and services beyond essential products, maximizes customer
value, innovates and develops the services offered, and manages their entire life
cycle.
The rapid progress of the energy transition has led to constant evolution among
customers. In response to this scenario, Enel Chile aims to anticipate their needs.
To achieve this, the Company implements technological advancements using a
carbon-free solutions approach and explores new applications of electricity.
E-mobility is a prime example; in this area, the Company and various partners
promote different initiatives to support electrification and decontamination of
cities.
Operating Segments
Regarding the presentation of financial information,
Enel Chile has defined two operating segments,
pursuant to the criteria established by the International
Financial Reporting Standards (IFRS). These segments,
identified by adopting a "top-down" approach, are:
• Generation Segment
• Distribution and Grids Segment
Each operating segment generates distinct financial
information, which is aggregated into a combined set
of data for the Generation Business and another for
the Distribution and Grids Business at the segment
level that must be reported.
Enel Chile’s Business Model
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
208
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 (from 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 maintain a distributed
generation park throughout the National Electric
System (hereinafter "SEN"). As of December 2024,
Enel Chile's total net installed capacity reached 8,869
MW, with 78% derived from renewable energy sources.
Specifically, this includes 3,665 MW from hydroelectric
generation units, 1,965 MW from thermal power
plants powered by gas or oil, 2,051 MW from solar
plants, 903 MW from wind generation units, 83 MW
from geothermal capacity, and 203 MW from battery
energy storage systems (BESS).
In 2024, the consolidated net electricity production
reached 24,639 GWh, while the electricity sales of
Enel Chile and its subsidiaries reached 35,974 GWh.
This represents a 9.5% increase in sales, reflecting the
consolidation of the Company's marketing plan.
[NCG 461 - 6.1 ii]
[NCG 461 - 6.2 i]
Generation
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
GENERATION
35.97 TWh
Energy
Sold(1)
32.97 TWh in 2023
Variation +9.5%
78 %
Renewable
generation
77 % in 2023
Variation +1 p.p.
8.87 GW
Net installed
Capacity
8.48 GW in 2023
Variation +4.6%
(1) Considers sales to free, regulated and spot market customers.
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
209
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
210
1
Tarapacá TG
20 MW
2
Atacama
716 MW
3
Taltal
241 MW
4
Eólica Taltal
106 MW
5
Sierra Gorda Este
112 MW
6
Finis Terrae III
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 II
380 MW
28 Quintero
236 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 Don Humbero
81 MW
35 Don Humbero BESS
67 MW
36 El Manzano BESS
67 MW
37 Rapel
377 MW
38 Sauzal
80 MW
39 Sauzalito
11 MW
40 PMGD El Sharon
3 MW
41 PMGD Rinconada Alcones
10 MW
42 PMGD Valera
3 MW
43 PMGD Graneros
3 MW
44 PMGD Bandurrias
3 MW
PERÚ
BOLIVIA
ARGENTINA
1
2 - 16
17 - 19
20 - 25
26- 28
29 - 36
37 - 44
45- 58
60-64
65-71
72-73
59
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
211
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
45 Los Cóndores
153 MW
46 Pehuenche
570 MW
47 Cipreses
106 MW
48 Curillinque
89 MW
49 Isla
70 MW
50 Loma Alta
40 MW
51 Ojos de Agua
9 MW
52 PMGD Piduco
3 MW
53 PMGD San Camilo
3 MW
54 PMGD Maintencillo
3 MW
55 PMGD Hijuelas 4
3 MW
56 PMGD Don Rodrigo
5 MW
57 PMGD Caracoles
3 MW
58 PMGD Cabimas ( Ex Curimachi)
11 MW
59 PMGD Dadinco
3 MW
60 La Cabaña
106 MW
61 La Cabaña BESS
34 MW
62 Parque Eólico Renaico
88 MW
63 Renaico II
144 MW
64 Rihue BESS
34 MW
65 Eólica Los Buenos Aires
24 MW
66 Abanico
93 MW
67 Antuco
320 MW
68 Palmucho
34 MW
69 Pangue
466 MW
70 El Toro
449 MW
71 Ralco
689 MW
72 Pilmaiquén
41 MW
73 Pullinque
51 MW
BESS
Geothermal
Solar
Hydroelectric
Wind
Thermal
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
212
Installed capacity, generation, and sales of energy by Enel Chile and subsidiaries
Net installed capacity (MW)(1)
2024
2023
Enel Generación Chile
5,620
5,478
Enel Green Power Chile
3,249
3,000
Total
8,869
8,478
Generation (GWh) (2)
2024
2023
Enel Generación Chile
18,313
18,110
Enel Green Power Chile
6,325
6,012
Total
24,638
24,122
Purchase (GWh)
2024
2023
Enel Generación Chile (3)
16,910
14,250
Enel Green Power Chile
1,694
1,587
Total
18,604
15.837
Sales (GWh)
2024
2023
Enel Generación Chile
32,838
30,385
Enel Green Power Chile
557
486
Spot market sales
2,579
1,975
Total
35,974
32,846
(3) Considers 7,319 GWh of purchases from Enel Generación Chile to EGP Chile made in 2023.
(1)
Net installed capacity, or net power, corresponds to the difference between gross power and energy consumption by auxiliary services. Auxi-
liary consumption is understood as all energy consumptions associated with the operation of the generating unit, without which the optimal
operation of the unit is not possible.
(2) Corresponds to total generation, minus own consumption and transmission losses.
Main generation competitors
Share by Installed Capacity as of 31.12.2024 (1)
Business Groups
Installed Capacity (MW)
Share
COLBUN (2)
4,340
11.8%
AES Chile
3,408
9.2%
ENGIE
2,902
7.9%
(1) Does not include BESS Systems
(2) Consider the Horizonte wind farm (still under construction) of 810 MW
[NCG 461 - 6.1 ii]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
213
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Operational and commercial scenario
In 2024, the Company faced a positive hydrological
setting, similar to the previous year, with an excess
likelihood of over 50%. In terms of the international
context, commodity prices have fallen since 2023.
In the electric sector, energy production had a notable
availability index at the national level, which is especially
important because electricity is essential for economic
development and everyday life. This is mainly due to
companies' efforts to maintain a high availability index
of generation sources and transportation grids, as well
as the high level of technology implemented in this
sector, both by the companies and agents participating
in this market and by the National Electric Coordinator
in the operation of the electrical system. This helped
the Company to efficiently and in a structured manner
control the production and supply at all times.
Continuing with the issue of the country's electricity
production, it's important to note that the effort
to develop new renewable generation plants is
progressing steadily. In this context, by the end of
2024, the National Energy Commission (NEC) expects
to report approximately 16,464 MW of capacity from
unconventional renewable energy sources (NCRE) in
operation, along with around 5,300 MW of projects
already declared under construction, primarily solar
projects, followed by wind farms and, to a lesser
extent, hydroelectric and biomass plants projects.
The development of this newly installed capacity
presents an excellent opportunity for Enel Chile,
as the Company has played a significant role in
promoting renewable energy sources in the country
through EGP Chile. Furthermore, the Company
maintains the primary reservoirs in the southern
region, which help address the intermittency of
the NCRE generators within the electrical system.
Additionally, it operates combined cycle gas
plants in the central zone that support the reliable
and safe functioning of the SEN. Moreover, the
contracts Enel Generación Chile has with EGP Chile
and Empresa Eléctrica de Pehuenche accounted
for approximately 24% of their sales from low-
cost energy production in 2024. All of this enables
the Company to enjoy distinct advantages when
competing in the customer market.
Simultaneously, the decarbonization process of the
country's energy matrix commenced in 2019 with
the decommissioning of three coal units totaling 328
MW, including the 158 MW Tarapacá plant operated
by Enel Generación Chile. This continued in 2020
with the removal of the 114 MW Ventanas 1 coal plant
in Puchuncaví, Valparaíso Region, and the 128 MW
Bocamina I plant also from Enel Generación Chile.
In 2022, an additional total of 617 MW was retired,
including Bocamina II with 350 MW, again from Enel
Generación Chile. In 2023, the Chilean electrical
system continued the decarbonization process
with the removal of the Ventanas 2 unit, totaling
208 MW. Finally, in 2024, the two Nueva Tocopilla
(formerly Norgener) units with a total of 276 MW were
disconnected from the system.
This
decarbonization
process
reduced
the
contribution of coal to national electricity generation
from 23.1% in 2022 to only 15.5% in 2024. This
reduction in fossil fuel-based generation has been
partially replaced by non-conventional renewable
energy generation (NCRE), increasing its contribution
from 31% in 2022 to 37% in 2024, totaling 69%
renewable energy in the country in 2024. This
process of migration toward clean and renewable
energy sources has been led by Enel Chile, which
contributes 35% of renewable energy and 20% of
NCRE generation, making it the leading renewable
energy generator in the country.
In 2024, the Company submitted bids in the regulated
customer supply tender process (NEC Tender 2023/01)
for 3.6 TWh/year, initially planned for December
2023, postponed to April 2024 due to significant
updates in the expected amount of future regulated
consumption. Enel Generación Chile was awarded
100% of the energy from this tender, thus marking one
of the most significant milestones of the 2024 fiscal
year.
In the previous tender (NEC Auction 2022/01), the
demand was partially awarded to new renewable
projects from third parties, resulting in an award
percentage of less than 20% of the bids. In the
past three processes (2016, 2017, and 2021), Enel
Generación Chile held a majority share, with total
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
214
annual awarded energy nearing 7.1 TWh/year. Amidst
intense competition in the regulated customer
segment, the Company's commercial management
over the last three years has concentrated on the free
customer market, where it has successfully secured a
substantial volume of supply contracts through both
bidding and bilateral negotiations in the medium
and long term. This strategy has allowed it to expand
and diversify its commercial portfolio under highly
favorable conditions.
Another noteworthy milestone is Law No. 21.185,
known
as
"Transitional
Mechanism
for
the
Stabilization of Electricity Prices for Customers
Subject
to
Tariff
Regulation,"
published
on
November 2, 2019. This solution can be considered
relatively adequate compared to other alternatives
envisioned to meet social demands and counteract
the expected electricity rate increases during the
social crisis of October 2018. The law includes a
temporary freeze on increases in regulated tariffs
for active supply contracts, using a capped price
known as PEC (equal to the price of Decree 20 T of
2018) as a reference.
However, given the constant commodity price increase
and the dollar exchange rate in 2022, the total amount
for the mechanism’s credit limit was quickly reached.
For this reason, the Customer Protection Mechanism
(MPC) was established under Law No. 21.472. It
stabilizes the regulated rate for customers who
consume up to 500 kWh/month and permits gradual
semiannual adjustments for inflation.
The mechanism under Law No. 21,472 includes a
temporary fund of US$1.8 billion until 2032. This fund
aims to pay generating companies the difference
between the contract price and the stabilized rate
(it also incorporates excess balances from Law No.
21,185 generated after reaching the initial limit)
through a new instrument known as the Payment
Document. This document is issued monthly by
the Ministry of Finance to the generators. It is
denominated in US dollars, adjustable, with interest
(TMC + 25 Pb), transferable, with a maximum maturity
date of December 2032, and carries a state guarantee.
The fund is financed through a charge applied to all
demand with consumption greater than 350 kWh/
month (Tariff Stabilization Fund) and an additional
charge (MPC Charge), if necessary, to ensure the full
payment of the fund by December 2032. As outlined,
Law No. 21,472 protects the Company, facilitating
the acquisition of payment documents that can be
transferred with the corresponding interest.
In 2023, the maximum amount contemplated
under Law No. 21,472 was reached. As a result, the
government has been developing a bill since the end
of 2023 to modify the current legislation, allowing for a
quicker update of regulated tariffs for end customers
to ensure payment of outstanding balances to the
generators.
The
Company
has
also
implemented
some
mitigation mechanisms, such as factoring in
these tariff credits and diversifying the customer
portfolio, thanks to the increase in free customer
contracts in recent years.
This indicates that, despite the harsh conditions of
the current year, it can be confirmed that Enel Chile,
as in previous years, effectively adapts its operational
management to varying circumstances, whether
unfavorable, as is the case now, or favorable. This
means that the company is capable of consistently
maintaining a high level of performance and a clear
leadership position within the national electric
industry. This conclusion is based on several
factors that align in favor of the company and merit
highlighting, such as:
I.
It has a large-capacity technologically diversified
and sustainable generating park within its
operations, mainly composed of hydroelectric,
renewable, and efficient thermal plants, which
provides the Company with a high competitiveness
level in production, with low average operating
costs.
II.
Its generation facilities are fully aligned with the
principles of high availability and sustainability, as
its production processes and maintenance and
modernization policies fully meet the technical
and environmental requirements stipulated by
electrical and environmental standards.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
215
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
III. Its commercial policy is conceived consistently
with the production characteristics of its
generating park and renewable energy purchase
agreements. It is 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 low
exposure to production and market risks.
IV. Enel Chile prioritizes innovation in its business
line, allowing the Company to constantly adapt
to the new market challenges. A clear example of
this has been the restructuring of the generation
business model (subsidiaries Enel Green Power
Chile and Enel Generación Chile), which allows
the Group to sustain its future growth and
competitiveness in this industry.
Regarding production and market risk, the main
factors included in risk management are:
I.
Hydrological variability, whose risk is covered
thanks to a continuous analysis and design of the
optimal volume of contractable energy.
II.
Commodity variability, mainly fuel prices, directly
affects Enel Chile's costs of thermal production
and the indexing of the selling prices of some
supply contracts.
III. Currency variability risk, essentially the price of
the dollar, which affects the Company's revenues.
Regarding the risks above, the Company utilizes
financial instruments to hedge against commodities
(primarily coal, natural gas, and oil) and the dollar,
coordinating these efforts with its parent Company in
Italy.
Hydrological condition
Given the significant participation of hydroelectric
plants in Enel Generación Chile’s generation park, it is
relevant to analyze in detail the hydrological condition
recorded in each period because it has a direct impact
on the Company's margin results.
The El Niño phenomenon has been observed since
mid-2023. It began to decline in 2024, reaching neutral
conditions in the second half of that year. In Chile, this
is associated with increased rainfall, which largely
explains the hydrological conditions observed in 2024.
2024 followed a humid 2023, leading to a typical thaw
at the beginning of 2024. This situation deteriorated
until early June, a month that recorded significant
precipitation, which continued, though with lesser
intensity, throughout the remainder of the winter. This
led to substantial snow accumulation, which increased
water flows during the fourth quarter of the year due
to the spring thaw.
In annual terms, although 2024 recorded lower
precipitation compared to 2023, the flows at the
beginning of 2024 were more substantial due to
the melting of the previous year's precipitation. As a
result, on an annual basis, the tributaries in 2024 were
very similar to those registered in 2023, reaching an
exceedance probability close to 50%, according to
statistics covering the last 60 years. This made 2024
the second-best hydrological year in the previous 15
years, surpassed only by 2023.
Generation and supply costs
Regarding the SEN, the system’s gross generation
reached 85.5 TWh in 2024, representing a 2.2%
growth compared to 2023. At the same time, the
contributions to the total generation were around
32% from hydroelectric generation (27 TWh), 30%
from thermal generation (26 TWh), mainly coal
(15.5%), followed by natural gas (14.4%). Approximately
37% of the total generation corresponded to non-
conventional renewables (32 TWh): solar (22%), wind
(13%), biomass (2.3%), and geothermal (0.4%).
Enel Chile’s electricity production was 24.6 TWh, 2.1%
more than the value obtained in 2023, representing a
29% share of the total SEN generation. Its hydroelectric
contribution was around 13.7 TWh, representing a
12% increase compared to the 12.2 TWh of 2023. This
hydroelectric generation represented a 51% share
of the SEN's hydroelectric generation. Enel Chile's
thermal generation decreased from 6.2 TWh in 2023
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
216
to 4.9 TWh in 2024, which accounted for a 20.9%
drop. Self-production with NCRE (wind, solar, and
geothermal) reached 6.0 TWh in 2024, an increase of
5.8% compared to the 5.7 TWh obtained in 2023.
In 2024, average fuel prices decreased compared
to 2023. In the case of coal, its contribution to the
system's generation decreased compared to 2022
due to the greater availability of other resources. Its
average price, according to statistics managed by
the electrical authority, declined by nearly 23%, from
an average annual value of 171 US$/Ton in 2023 to an
average price of 132 US$/Ton in 2024. In the case of
natural gas, although Enel Chile's purchase prices are
confidential, generally representative parameters of
the variation of this fuel in the Company's long-term
LNG contracts are Henry Hub, which had an average
17% decrease (from 2.7 to 2.3 USD/MMBTU), and Brent,
which had a 2% decline (from 82.6 to 80.8 USD/bbl).
The latter also affects liquid fuels, which had a low
share in SEN generation during the period.
This decrease in fuel costs, along with favorable
hydrology and increased generation from renewable
plants, reduced marginal costs compared to 2023.
Liquid natural gas (LNG)
In 2024, Enel Chile used 300 MMm3 of LNG through
its subsidiary Enel Generación Chile for its generation
and commercialization requirements in the central
zone, representing a 41% decrease compared to 2023.
This is mainly explained by the greater availability of
Argentinean gas and the lower generation of natural
gas, given the hydrological scenario.
Argentine natural gas was available throughout 2024.
In that year, Enel Generación Chile managed various
supply agreements with a diverse supplier portfolio,
facilitating the delivery of 855 MMm³ of Argentine
gas to the central region, representing 48% of its total
gas requirements in Chile (including electricity and
supplies to customers) and 74% of the total natural gas
used for generation in the central region.
In 2024, the active management of the LNG and GNA
supply portfolio continued, optimizing the supply mix.
This approach helped achieve the milestone of selling
LNG at the Quintero terminal and executing other
trading actions that led to significant outcomes for
the Group.
The construction of the Mejillones LNG Terminal and
the administration of LNG and GN contracts improved
scheduling in the northern region of the country. This
enhancement allowed for the delivery of over 599
MMm3 to the Atacama and Taltal plants and industrial
customers in northern areas, solidifying a significant
presence in that part of the country.
Regarding the LNG commercialization by trucks, 2024
further reaffirmed the Company’s market position with
a sale volume of 126 MMm3 and ensured that Enel
Generación Chile remains a significant player in this
industry.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
217
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
[NCG 461 - 6.2 ii]
Commercial performance
Solid commercial strategy
In 2024, Enel Chile's commercial actions, through its
subsidiaries Enel Generación Chile and EGP Chile,
aligned with the Company's commercial policy. This
policy includes the joint pursuit of several goals:
maintaining industry leadership, effectively managing
the Company's risk and profitability in the context of
current supply and competitive conditions, ensuring
customer loyalty, attracting more new customers,
increasing the energy sold in line with the latest market
conditions, and achieving greater efficiency in internal
commercial management.
Regarding contract management with customers,
2024 was a significant year for establishing Enel's
medium- and long-term portfolio. Enel Generación
Chile signed supply contracts for free customers
totaling approximately 1.2 TWh per year with various
durations,
structurally
enhancing
the
excellent
contract curve the Company achieved in previous
years.
In the large customer segment, the Company signed
agreements and new electricity supply contracts
with major free wholesalers, mining companies, and
industrial customers, totaling approximately 0.55
TWh/year with terms ranging from 4 to 6 years.
Similarly, the trend in the Chilean electricity market
continued, characterized by a significant number of
smaller customers who had the option to migrate to the
regulated market but chose to remain free customers,
in line with the powers granted by electrical regulations.
Enel Chile effectively capitalized on this situation, as its
subsidiary Enel Generación Chile entered into supply
contracts directly with a substantial number of smaller
free customers, totaling 0.7 TWh/year, with average
terms exceeding four years.
A significant milestone in commercial management for
2024 was the outcome achieved by Enel Generación
Chile in the tender to supply customers subject to
price regulation in 2023. The award occurred in May
2024, granting Enel Generación Chile 100% of the
tendered volume, which totals 3.6 TWh/year beginning
in 2027 (1.5 TWh) and 2028 (2.1 TWh), with a duration
of 20 years.
All of the above reflects Enel Generación Chile’s solid
commercial position and robust long-term portfolio.
Outstanding initiatives in the
generation segment
Water resource management for generation
customers
In a scenario marked by water scarcity, the resource's
use has been managed efficiently and harmoniously.
In
2024,
connections
with
communities
and
relevant authorities in the watersheds associated
with the operation of Enel Generación plants were
strengthened to align resource use among the various
stakeholders. Agreements have been established
with the Corporation for the Development and
Protection of the Rapel Reservoir (Codepra) and with
the Surveillance Boards of Maule and Biobío, among
others.
Participation in the gas business
Just like the previous year, 2024 was a year of high
activity in the gas business, both in terms of generation
and trading actions.
The refueling of a ship initially intended for the central
region of the country was organized alongside the
procurement of extra volumes, permitting the total
demand of the northern region to be met. This method
reduces diesel consumption and keeps the electrical
system's operating costs in check.
The optimization of the supply portfolio helped
generate trading actions by using the surpluses from
the LNG contract. The Company successfully placed
these volumes in the international market, achieving a
positive integrated margin. This approach allowed for
the capture of the available spot margin in the market
throughout 2024, amounting to a total equivalent
volume exceeding 130 MMm3.
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
218
Distribution and Grids
Enel Chile participates in electric power distribution
through its subsidiary, Enel Distribución Chile, one
of the largest electricity distribution companies in
the country in terms of the number of regulated
customers, distribution assets, and energy sales. It
operates within a concession area of 2,105 km², under
an indefinite concession granted by the Government
of Chile, transmitting and distributing electricity across
33 municipalities in the Metropolitan Region, which
includes the territory of its subsidiary, Enel Colina S.A.
[NCG 461 - 6.2 i]
Integrated supply and renewable supply
In commercial management with free customers,
the
Company
successfully
implemented
an
integrated offering of services provided by other
Enel business lines in Chile. This includes electric
mobility solutions, self-consumption photovoltaic
installations at industrial customer facilities, and
other advisory and energy management services.
Similarly, energy sales to free customers have risen
through Power Purchase Agreements (PPAs) and the
provision of renewable energy certificates, enabling
customers to fully trace the renewable origin of
their consumption through certificates that meet
the international I-REC standard.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
DISTRIBUTION AND GRIDS
5.8 %
Energy
Losses
5.3 % in 2023
Variation +0.4 p.p.
14.8 TWh
Distributed
Energy (1)
14.4 TWh in 2023
Variation +3.2%
1.3 times
SAIFI(2)
1.25 times in 2023
Variation +4%
2.16 million
End
users
2.13 million in 2023
Variation +1.5%
1)
Energy distributed within and outside the concession area.
2)
The values presented do not include information related to the August 2024 weather event, as it is currently pending litigation without a final
ruling.
219
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
CONCESSION AREA OF ENEL DISTRIBUCION CHILE
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.
Quilicura
25.
Quinta Normal
26.
Recoleta
27.
Renca
28.
San Joaquín
29.
San Miguel
30.
San Ramón
31.
Santiago
32.
Til Til
33.
Vitacura
Enel Colina S.A.
[NCG 461 - 6.2 ii]
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
220
Enel Distribución Chile's concession area has a high
consumption density. 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 guarantee compliance with the regulations
outlined in Law No. 21.194, also known as the "Short
Distribution Law," the Company implemented specific
measures.
These
actions
involved
segmenting
assets within Enel Distribución Chile, which led to
the establishment of a new Company named Enel
Transmisión Chile on January 1, 2021. The latter
was tasked with managing the assets and liabilities
associated with the electric power transmission
segment, which includes lines and substations.
Concurrently, Enel Distribución Chile concentrated
exclusively on the electricity distribution business.
Enel Chile successfully finalized the transaction on
December 9, 2022, transferring its entire ownership
of Enel Transmisión Chile to Grupo Saesa, which
constitutes 99.09% of the stock.
In 2024, the Company provided electric power service
to more than 2.2 million customers, a 1.5% increase
compared to 2023. The same year, we sold 14,673
GWh of energy, considering sales both within and
outside the concession area, which represented a 2%
increase compared to 2023, mainly due to higher sales
in the residential segment.
Enel Distribución Chile owns medium and low-voltage (MV/LV) lines totaling 5,741 km and 12,263 km, respectively.
Regarding distribution transformers, the Company reached an installed capacity of 5,364 MVA, equal to 22,628
of its transformers.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
NUMBER OF CUSTOMERS BY
SEGMENT
VOLUME SALES BY
CUSTOMER SEGMENT
Residential
Commercial
Others
Tolls
Industrial
2,162,606
customers
14,810
GWh
0.5%
2.2%
0.1%
4.6%
7.3%
89.9%
14.9%
39.3%
3.8%
37.4%
221
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Indicator
Unit of Measure
Dec-24
Dec-23
Evolution SAIDI (1) (3)
Minutes
150.3
120.7
Evolution SAIFI (2) (3)
Times
1.3
1.24
(1) SAIDI: System Average Interruption Duration Index or Average Interruption Time per user in a given period.
(2) SAIFI: System Average Interruption Frequency Index or Average Interruption Frequency per user in a given period.
(3) The values presented do not include information regarding the climatic event of August 2024, as it is currently undergoing judicial review
without a definitive resolution.
[NCG 461 - 6.1 ii]
Distribution and grid competitors
The distribution segment pertains to electrical
installations designed to provide electricity to end
customers. It operates without competition in its
industrial sector, functioning as a natural monopoly and
adhering to specific industrial regulations, including
antitrust laws. Distribution companies function within
a framework of public service concessions, carrying
the responsibility to serve all customers and deliver
electricity to those under regulated tariffs.
Electricity service management
Service quality
The Superintendence of Electricity and Fuels (SEC)
supervises electricity supply quality using metrics
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
the advancement of the required electrification of
consumption.
Additionally, local operating instructions and a global
policy regulate Enel Distribución Chile, which is part
of the Enel Group. These documents outline the
processes, framework, and key factors to consider
when determining the approved indicators for 2023
and 2024.
The Average Interruption Time per Customer (SAIDI3)
indicator was 150.3 minutes in 2024, which is 25%
higher than in 2023, when it reached 120.7 minutes.
This increase is primarily due to the severe emergency
plans enacted in May and August, resulting from a
significantly harsher and rainier climate compared to
the previous year. Precipitation levels exceeded normal
by 27%, and winds in August surpassed 120 km/h in
the Santiago basin.
The Average Interruption Frequency per Customer
(SAIFI3) indicator reached 1.3 times in 2024, 4.8%
higher than the 1.24 achieved in 2023.
District limits are set according to the regulatory
indicators outlined in the "Technical Standard of Quality
of Service for Distribution Systems" (published in 2019
and modified in 2024). These limits, determined by the
district's population density, must not be exceeded.
Enel Distribución Chile has implemented investment
plans to ensure that districts and indicators comply
with current regulations. These plans can be adjusted
to meet new needs that may arise throughout the year,
such as unexpected weather conditions, regulatory
requirements, and other factors, aiming to optimize
and prioritize the quality of service for as many
customers as possible.
However, despite all the measures taken due to the
climatic event that took place the previous August3,
out of the 33 municipalities in the concession area,
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
222
at least 19 exceeded the normative indicators in
SAIDI, and one municipality exceeded the normative
indicator in SAIFI. The others will depend on the final
resolution of the judicial process.
Quality plan
The Company’s strategic planning revolves around
quality of service. To achieve this, it implements a range
of programs grounded in operational excellence, which
is 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:
The annual maintenance plan (AMP) for MV/LV
involves scheduled maintenance conducted yearly
on infrastructure that includes medium-voltage lines,
distribution transformers, and both overhead and
underground low-voltage grids. This is performed
according to the periodicity and scope criteria set by
the Company based on the type of installation. Overall
compliance with the plan during 2024 was 98%.
The global compliance with the plan during 2024
reached 98%. The main activities consist of:
• Comprehensive
inspection
of
feeders
with
technology.
• Comprehensive
inspection
of
feeders
with
technology.
• Extensive pruning of trees near medium- and low-
voltage line grids.
• Resolution of network defects to avoid failures.
• Infrared thermography on medium and low voltage
grids.
• Maintenance of telecontrol equipment.
Medium voltage (MV) quality projects
involve
formulating a sequence of initiatives focused on
medium voltage installations (feeders) that experience
recurrent power interruptions or incidents during the
previous year. This situation poses a risk of exceeding
the SAIDI or SAIFI indicators outlined in the Technical
Distribution Standard, or that, in the last year, they
experienced repeated power outages and incidents.
To ensure quality, projects were developed on over 53
distribution feeders within the concession area, where
the supply quality indicators surpassed the expected
limits. Last year's failures were analyzed individually to
reach a comprehensive quality solution. Additionally,
the plan for installing remote-controlled equipment, a
vital component of the strategy for service quality and
operational efficiency, is included.
Additionally, the plan for installing remotely controlled
equipment serves as a fundamental pillar in the
strategy for service quality and operational efficiency.
The project entails the installation of 111 remotely
controlled devices, which are designed to enhance
flexibility between feeders and minimize the impact
of events on customer service continuity and quality
indicators.
Additionally, 53.3 km of the medium voltage
distribution network was improved, with 16.1 km of
the network reinforced and 37.2 km of new grid added.
Low-voltage (LV) quality projects aim to improve the
quality of service of low-voltage distribution grids,
especially to renew and optimize the existing grid with
new technologies. Their purpose is to minimize failures
and improve the quality of supply indicators. Among
the main initiatives, the following are particularly
notable:
• LV grid renovation plan: Low-voltage bare grids
will be replaced with pre-assembled protected
conductors of the Calpe type, totaling 1.3 km of
reinforcement and extension grids. This will improve
service continuity and decrease failures in areas
with significant tree presence.
• The electricity grid channeling plan with
• metrogas network interaction Within the
framework specified in SEC Official Instruction
No. 14.228/2018, in which the Superintendency of
Electricity and Fuels directs Enel Distribución Chile
and Metrogas to collaborate in the mitigation of
the risk stemming from the interaction of electrical
and gas grids, the Company committed to replacing
approximately 36 km of low-voltage underground
grids installed directly in the ground with new grids
installed in the ducts.
In 2024, a milestone was reached in managing
underground grids, emphasizing the inspection of 7.8
kilometers using advanced technology that facilitated
more efficient risk detection and resolution. This
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
223
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
bolstered strategic coordination and collaborative
efforts in addressing special projects, aligning with
the company's commitment to safety and quality of
service, particularly in the municipalities that make
up the Historic Center of Santiago: Independencia,
Recoleta, Estación Central, Cerro Navia, and Santiago.
The tree management plan, which is part of the annual
maintenance plan, aims to permanently increase
coverage to enhance service quality, preventing
supply interruptions caused by falling branches or
trees contacting distribution grids. In 2024, 72,922
tree management points were carried out, with an
expenditure of Ch$3,128 million.
Center for operational excellence (CEO)
The
Center
for
Operational
Excellence
(CEO)
reaffirmed its commitment to technical training and
certification, enhancing the standards of safety,
quality, and sustainability in the electrical sector. In
2024, specialized courses, along with continuous
training programs, were offered to develop workers'
competencies.
New
strategic
alliances
were
established, enabling the expansion of educational
outreach and strengthening the training of technical
teams from various government agencies across
different municipalities.
The CEO expanded its impact on technical education
by visiting schools in various municipalities, providing
students with the chance to learn about and
experience a real electric distribution environment
through the program "Network of Training for the
Future." Additionally, technical seminars and teaching
internships were developed. The involvement of
key institutions such as SOFOFA, Chile Dual, and SK
Capacitación strengthened the connection between
the productive sector and technical training.
As part of its commitment to sustainability, it
inaugurated an environmental space at its facilities.
In Chile, there is no legal obligation to certify technical
competencies
or
to
have
specialized
training
centers in Grids. The CEO turned this limitation
into an opportunity to elevate technical standards
by acknowledging the experience of their workers
through a proprietary certification model called
"Habilitation," achieving 92% coverage of operational
staff and aligning with international best practices.
Additionally, in 2024, significant progress was made in
gender equity, marked by a 17% increase in women's
participation in the CEO's training programs.
Netbilling
In 2024, we experienced a significant increase in the
demand for Netbilling applications, exceeding records
from previous years. This led to a historic number of
customers connected to the grids. As a Company,
we have adapted to the process established by
the Ministry of Energy, complying with the current
Netbilling Technical Standard. Additionally, we align
with the "National Energy Efficiency Plan 2022-2026,"
which promotes the integration of renewable energy
sources and sets key objectives for 2026, 2030, and
2050.
Customer connection
In 2024, 1,434 customers associated with Netbilling
were connected, while in 2023, we managed to connect
723, marking a 90% growth over 2023. 2024 marks
a milestone in the number of Netbilling customers,
given that it was a year with the highest number of
connected customers, reaching an accumulated total
of 5,039 units with a 13,730-kW installed capacity. In
the first quarter, the massive Casa Solar II project was
carried out, which involved connecting more than 320
customers with government funding.
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
224
Netbilling customer connection
The Netbilling process is directly supervised by the
Superintendency of Electricity and Fuels (SEC). All
income related to various requests must be recorded
in the Distributed Generation (GDA) portal. In the first
quarter of 2024, the connection for the massive Casa
Solar II project, featuring more than 320 connections,
was completed.
This reflects an increase in individual connections.
Over the last four years, the Netbilling process has
demonstrated a steady rise in service demand.
Connection
Requests
(CR)
and
Connection
Notifications (CN) have been the most sought-after
requests, representing a key component in the
process's operation.
Below, we present a summary of the accumulated
demand behavior from 2021 to 2024. The data
indicates that 90% of the processes depend on
CR and CN, which means that the majority of the
workload is concentrated in these requests, both at
the commercial and operational levels.
We can identify a trend of increasing demand for the
service from 2021 onwards. 2024 marked a milestone
with 7,149 requests submitted to the GDA portal, 46%
above the requests submitted in 2023. The analyzed
data shows the total number of requests handled by
our team without distinguishing whether the process
is accepted or rejected.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
TOTAL CONNECTED CUSTOMERS
21
216
311
334
369
1,078
723
1,434
474
79
2021
2022
2023
2024
ANNUAL DEMAND BY TYPE OF APPLICATION
Connection
Notification
Request for
Information
Declaration of
Conformity
Connection
Request
3,266
2,218
3,363
609
3,145
1,654
1,495
2,143
225
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Seasonality and resource distribution
The period from 2021 to 2024 was documented in
the two main processes (CR and CN). Identifying
these seasonal patterns helped us manage resources
according to service demand. In the analyzed data,
it's important to note that the 2024 results primarily
consist of individual projects and the large-scale Casa
Solar II project. This means that the increase in demand
is mainly attributed to individual processes that are
neither financed nor subsidized by the government.
Rising electricity prices drive the surge in demand
for the service, decreased subsidies for electricity
payments from the government, climate factors, and
media promotion of this energy type.
Connection requests
The total number of CRs logged in 2024 was 3,145, while
the CRs logged in 2023 totaled 2,143, representing
a 47% increase between the two years. Seasonality
presents a period of low demand (dip) from February
to June each year, which can be attributed to external
factors mainly associated with the weather and the
end of the summer period. The peak of requests of
this type occurs in August and December.
Connection notifications
They exhibit behavior characterized by two distinct seasonal periods, with demand beginning to rise in September
and tapering off in March each year. In 2024, a total of 3,266 CN were recorded, while 2,218 CN were logged in
2023, resulting in a 47% increase compared to the previous year.
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
1
2
3
4
5
6
7
8
9
10
11
12
600
500
400
300
200
100
0
Valley period
Peak period
TOTAL CONNECTION REQUESTS REGISTERED ON THE GDA PORTAL
Connection
Notification 2021
Connection
Notification 2022
Connection
Notification 2023
Connection
Notification 2024
226
Energy loss
Over the past three years, energy demand has
consistently grown, with a 3.33% increase in 2024
compared to 2023 (15,538 GWh versus 15,034 GWh,
respectively). This increase applies to both regulated
and toll customers.
In the regulated segment, residential customers
accounted for 37.3% of energy consumption, followed
by the commercial category with 14.3%. Toll customers
consumed 34.5% of the Company’s energy demand in
2024.
Despite the challenges the Company faced in 2024,
Enel Distribución Chile upheld its commitment to
continuously improving its processes and initiatives
aimed at reducing loss levels. The Company executed
targeted reading plans, tracked effectiveness
indicators, and progressed in the installation of
remotely
managed
measuring
equipment
for
high-consumption customers, thereby improving
measuring accuracy and control. Additionally,
targeted inspections for customers at high risk
of theft continued, allowing for the detection
and resolution of critical cases. At the same time,
strategies were developed to streamline workflows
and improve efficiency in managing administrative
losses,
showcasing
Enel's
commitment
to
sustainability and operational excellence.
In 2024, 102,802 inspections were conducted,
achieving a 14.3% effectiveness rate in detecting
on-site anomalies. These efforts led to the recovery
of 94.9 GWh of energy, surpassing the target
set at the beginning of the year by 16.4%. This
accomplishment helped alleviate the impact of a
particularly challenging electricity market during
this period.
Significant progress was made in implementing
robust
technical
measures,
highlighting
the
intervention of 2,449 splices and the upgrade of
distribution grids in various concession areas. These
initiatives included the renewal of 5 transformers and
benefited 673 customers, reducing both technical
and non-technical losses while simultaneously
enhancing the quality of the electrical supply
provided.
From a social perspective, the company electrified
329 homes located in campsites within the
concession area. Additionally, 630 connections that
previously operated as direct connections to the
distribution grid were regularized. These actions
helped mitigate the increase in the number of
customers with irregular connections while ensuring
the quality of the electrical supply for customers in
these areas.
Finally, following all the previously mentioned
activities, Enel Distribución Chile recorded a loss
indicator of 5.79%, an increase of 0.47% compared
to 2023. The physical losses for the year totaled 900
GWh. This increase stemmed from increased market
aggressiveness, driven by an unfavorable tariff
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
Valley period
Peak period
Peak period
Connection
Notification 2021
Connection
Notification 2022
Connection
Notification 2023
Connection
Notification 2024
TOTAL CONNECTION NOTIFICATIONS REGISTERED ON THE GDA PORTAL
1
2
3
4
5
6
7
8
9
10
11
12
600
500
400
300
200
100
0
227
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
environment that caused customer dissatisfaction,
affecting the relationship between customers and
the Company during on-site operations. Despite
these challenges, the Company remained dedicated
to implementing corrective measures to mitigate
the long-term impacts of these issues. The chart
below illustrates the trend of losses over the past
decade.
Measuring park
The process of electrifying customer consumption is
directly linked to reducing the use of fossil fuels, which
in turn decreases the greenhouse gas emissions that
contribute to the climate change we experience daily.
For this electrification process to be effective and for
customers to manage their consumption optimally,
it is necessary to digitalize the grid in response to
the challenges faced by electric power distribution,
where smart metering serves as the initial step in this
transformation.
By the end of 2024, the number of smart meters
installed
for
the
customers
reached
356,183.
Together with grid digitization, the installation of smart
meters allows for remote operations, which benefits
customers, the regulator, and the Company. Other
benefits associated with the electrification of energy
consumption in general include increased control and
knowledge of energy consumption, the integration of
renewable energy sources, and improved electrical
grid security. Furthermore, the use of smart meters
might encourage innovation in the energy sector,
allowing energy companies to give new services and
solutions to customers.
At the same time, and in anticipation of compliance
with the Technical Standard for Quality of Distribution
Services in December 2024, the Company began
renewing 769 electricity meters in the homes
of
electro-dependent
patients
under
home
hospitalization. The new measuring equipment will
communicate online with our systems, permitting us
to monitor the status of the supply and detect any
potential failures in the household's electrical service.
Tariff composition and payment
flexibility
Electricity distribution companies operate under a
concession regime, ensuring service is provided to
all customers. The applicable tariff depends on the
connected power. There are two types of fees:
1. Tariffs for regulated customers:
for
those
customers with a connected power of less than
5,000 kW.
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
2016
2017
2018
2019
2020
2021
2022
2023
2024
EVOLUTION OF ENERGY LOSSES
(%)
5.20%
5.21%
5.14%
5.32%
5.79%
5.00%
5.24%
4.99%
5.10%
228
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 grid.
The electricity supply tariff for regulated customers is
made up of three components:
Given the regulatory context that has kept rates
free from increases since 2019, the Company aims
to achieve efficiency in distribution, which allows
for maintaining the quality and security of supply
within the tariff framework to enhance affordability
for customers. These efforts are supported by an
investment plan in the generation business line,
through which the use of renewable technologies is
accelerated, and various alternatives to ensure supply
continuity in a more economical manner are explored
while also promoting progress toward zero emissions.
Customer centricity
Placing customers at the center of management is
becoming increasingly important as their behaviors
and habits evolve. People are becoming more active
in terms of increasing electricity use and participation
in their solutions, which requires greater, more agile,
and more straightforward interactions, as well as
increased adaptability to their needs. To manage these
changes, we must understand our customers and how
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
FEE COMPOSITION AND PAYMENT FLEXIBILITY
Generation
Transmission
Distribution
74%
Cost of contracts with
generating companies,
determined from the tenders
carried out by the authority
10%
Cost for the use of the
electricity transportation system
(electric transmission lines and
substations)
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 Experts and the strip
study established by article 93
of the General Law of Electrical
Services.
229
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Global Customer Operation
they engage with the Company's distribution grid,
including what energy means to them and what types
of demands it fulfills. It is crucial to understand what
features each kind of customer values and what their
satisfaction parameters are.
Enel Chile's commitments to its
customers
Thanks to a cleaner and more sustainable generation
system, coupled with a more resilient, digitalized,
and
intelligent
distribution
grid,
the
energy
transition will benefit many people. Chile presents
a growth opportunity, as there is a significant gap in
electrification and customer preference for 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.
Electronic billing
Just like in 2023, in 2024, the Company carried out
customer subscription campaigns to send bills or
invoices via email. Currently, bills are available on
the website and through direct communication with
customers. These campaigns were coordinated
with the Customer Care team, which promoted the
subscription to electronic bills across all service
channels. The main campaign was the Digital
Transformation, which enrolled 132 thousand new
customers.
As of the end of December 2024, the number of
customers subscribed to digital billing reached
860,000 households, marking a 25% increase
compared to December 2023 and representing 40%
of the total customer base.
Tenders
In 2024, the relevant department planned, drafted,
and awarded a three-year contract for the mass
document delivery service. Supplier Helpbank
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
3
Collection
and recovery
4
Customer
service
Customer
centricity
2
Billing
1
Customer
Activation
230
(*) The satisfaction survey is carried out with a statistically representative sample, the results of which have a confidence level of 99%.
secured 100% of the service after the Procurement
team assessed the bids.
Meanwhile, a call was made to contracting companies
interested in the Business Process Outsourcing
(BPO) services for Billing and Written Response. After
receiving the technical and economic proposals and
holding meetings with each interested party, the
process of standardizing the offers is now complete.
The objective is to award the contract during the first
quarter of 2025.
Tariff update
The normalization of controlled power supply rates
occurred in 2024 after not being revised since 2019
for several reasons. In this regard, the Ministry of
Energy issued decrees for the average knot price (AKP)
for the first and second semesters of 2024, along with
the value-added distribution (VAD) decree covering
the 2020–2024 four-year period. This resulted in a
significant increase in billing for residential customers
(+50%).
VAD reassessment
Published in the Official Gazette in June, Decree 5T
issued by the Ministry of Energy establishes the
tariff formulas applicable to energy supply that are
subject to regulated rates and implemented by the
distribution concessionary companies for the four
years of 2020-2024. This decree alters the component
of the electricity rates related to distribution. However,
a recalculation of this component is scheduled for
2025, which will be valid for forty months and will affect
every Enel Distribución customer.
Electricity subsidy
October commenced with the rollout of the electricity
subsidy for the second half of 2024. Customers taking
advantage of this government initiative observed
a reduction in their electricity bills for the month,
intended to help offset the impact of rising energy
rates. In total, 286,930 customers benefited from this
subsidy.
Customer satisfaction survey
In 2024, customer satisfaction reached 63%, which
represents a 1-point decrease compared to 2023.
In 2024, the service provided by Enel is viewed more
positively overall compared to 2023, when customers
mainly appreciated the absence of power outages.
In terms of negative aspects, customers highlight
energy prices and problem resolution times, with the
latter now being a significant factor in their service
evaluation.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
RESIDENTIAL CUSTOMER SATISFACTION
67%
62%
66%
62%
64%
63%
2019
2020
2021
2022
2023
2024
231
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Credit and collection management
Digitalization of collection
In 2024, the Company focused on promoting digital
collection channels.
In 2020, the share of payments processed through
digital channels stood at 74.4%, rising to 77.4% in 2021.
In the subsequent years, 2022 and 2023, it increased
to 78.5% and 79.3%, and finally, in 2024, it reached
80.4%. Growth in the last two years has been slower,
as this group of customers remains firmly attached to
face-to-face payment methods.
Customers prefer external digital portals where they
can access various banking and collection platforms,
such as Servipag, Sencillito, Unired, and others.
Following these is the Enel website, which provides
direct banking links from major banks. AutoPay
remains below 9%. Lastly, external face-to-face
channels account for about 19%.
Commercial operations
In
2024,
debt
collection
and
regularization
management encountered challenges due to tariff
increases related to VAD and PEC. Regarding the
distribution of collection actions, over 39 million
were assigned in 2024, marking a 25% increase
from 2023, with total recoveries reaching Ch$738
billion, which is 59% higher than the previous year.
The collection strategy emphasized intensifying
actions by customers, directing collection efforts
based on customer segments and seniority, with
cut-off notifications and agreement offers as key
components. In terms of supply cuts, 410,000 actions
were taken, recovering Ch$60 billion, reflecting a 3%
increase compared to 2023.
Customer support
App improvements
While in 2023, the Company's efforts concentrated
on adding new functionalities to the app and aligning
it as much as possible with the web, in 2024, our
work centered on improving and ensuring good
performance of both old and new flows as well as
promoting its use as a mechanism to manage the
energy account easily from anywhere.
In addition to the foregoing, one of the most significant
improvements to the app was the addition of the
Banco Estado button, which consolidated payment
as the primary transaction, as this bank has the most
checking accounts in Chile.
Based on the previously indicated improvements and
innovations, significant achievements were realized in
three areas:
• Downloads: 233,700, 63% higher than in 2023.
• Logins: 2.2 million, up by 143% from the prior year. It
is worth noting that in 2022, the app accounted for
only 29% of total logins to the private area (between
web and app); in 2023, this percentage increased to
45%; and in 2024, it closed at 58%, demonstrating
not only that the app has ceased to be a secondary
channel but has also become the preferred channel
for customers.
• The monthly average of transactions was 69,700,
which is 90% higher than in 2023. This fact not
only proves that the efforts to encourage the use
of the application were successful, but it also
demonstrates that the application is a helpful
method for customers, allowing for increasing self-
service and migration away from analog channels.
Web improvements
In 2024, the website improvements focused on
providing timely and comprehensive information
to customers regarding the re-billing process and
rate increases. In this context, the following was
implemented:
• Explanatory landing page on the variation of rates,
the breakdown of electricity bills, and how to
implement energy efficiency actions to reduce their
impacts.
• Landing page for inquiries about the electricity
subsidy, where customers not only inquire about
their eligibility for the subsidy but also learn the
amount to be subsidized and the month in which
this amount will be applied to their bill.
• A new section for rate re-calculation in the private
area of the website, where once the customers
start being re-calculated, details such as the
installments, the amount, and the re-calculation
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
232
interest can be found.
Although the website is much older and more
established than the app, based on the above
and thanks to the constant monitoring of channel
performance, in 2024, there was a 36% increase in
visits and a 32% increase in logins compared to the
closing results of 2023.
WhatsApp is one of the channels
customers prefer.
Just like the website, the volume of WhatsApp
interactions has been stable since 2022. However, it
is important to emphasize the remarkable increase
in self-service on this channel, which rose from
70% at the end of 2023 to 86% at the end of 2024
(16 percentage points higher). This statistic not
only illustrates that the WhatsApp bot meets the
majority of customers' basic needs but also that it
successfully addresses their requirements on the
first contact without the need for a human agent.
This was clearly demonstrated during the crisis in
August 2024 due to the climate emergency, when
the bot was the most utilized channel by customers
for reporting emergency cases.
IVR natural language
In 2024, Natural Language IVR technology (Interactive
Voice Response) reached a significant milestone,
successfully automating 56% of the calls received at
the Call Center.
Throughout this period, the system identified more
than 73% of customers through their RUT and supply
number, requiring only the confirmation of the
customer's address and municipality. This solution
has proven its versatility by adapting to various
scenarios and challenges presented within the
Company, particularly excelling in its ability to manage
emergencies, an aspect that gained greater relevance
in 2024 compared to previous years. This facilitated
increased customer self-service and optimized
current features and system grammar to better
connect with users.
Thanks to its advanced voice recognition technology,
the Natural Language IVR understands customer
requests in natural language, which improves the
user experience and reduces response times.
Since its implementation, this technology has managed
over 8 million interactions, significantly contributing to
the improvement of the customer experience through
this channel. In the last quarter of the year, a 71%
approval rate was recorded regarding the system's
resolution capacity, 68% in ease of navigation, and
65% in the perception of a satisfactory experience.
Moreover, it distinguished itself by providing priority
service to electro-dependent customers, automatically
recognizing their registered numbers to guarantee
immediate and prioritized support. If a customer calls
from an unregistered number, the system detects
their RUT or customer number, facilitating a direct
referral to specialized executives.
Throughout
2024,
the
Natural
Language
IVR
continued to operate specifically for the Enel Colina
subsidiary, permitting customers in the Colina district
to perform online self-service both in emergencies
and to manage commercial requests related to
their account or bill. Additionally, the identification
of electro-dependent customers was implemented,
allowing for their quick transfer to a specialized
platform where they are recognized through their
phone number, RUT, or registered electro-dependent
customer number.
Operation optimization
Cloud contact center
By the end of 2022, the Cloud Contact Center project
was successfully implemented, consolidating the
operating models of call centers in four countries
where the Enel Group operates: Argentina, Chile,
Colombia, and Peru. This project marked a significant
milestone in the region, as it not only centralized the
technological infrastructure for the telephone channel
but also achieved the convergence of contractual
models for supplier management by adapting
contracts from local tenders to a unified contractual
environment.
This project began operations in early 2023, initiating
an optimization phase that included payment models,
service quality, and training methods. To enhance
resource management efficiency, call projections and
service executive sizes were refined.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
233
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Quality indicators have improved significantly due
to better processes, structural adjustments, and
innovative training programs in the company's three
call centers. The ongoing goal is to elevate the
quality of customer service, with a focus on specific
requirements.
The introduction of a central hub in Colombia
responsible for handling simple calls has led to cost
savings and improvements in the Company's key
performance indicators (KPIs). A systematic global
plan facilitated the standardization of processes and
systems, resulting in analytical synergies among the
four participating countries. The future strategy aims
to continue optimizing the customer service channel,
leading to the development of new comprehensive
operations and processes that enhance customer
service.
Optimizing the face-to-face channel
In 2024, the in-person channel continued to undergo
restructuring,
remodeling,
optimization,
and
digitalization, 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: We expanded customers' self-service
possibilities by developing new functionalities in
the self-service totems, implementing web self-
consultation in each branch, and encouraging
self-service through Google My Business; this had
a positive impact on reducing queues and waiting
times and improving satisfaction.
• Digitalization: We took several measures at
commercial offices to encourage customers to
go digital, including migrating certain services to
channels such as the web, apps, and WhatsApp.
Some of these approaches included installing
posters with QR codes, nonstop videos on screens,
advertisements via email, a digital host, and
incentives to encourage enrollment in the virtual
branch and subscription to electronic bills.
• Optimization:
The
Company
launched
two
significant 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.
In 2024, the 100% electric mobile office increased its
service points from 3 to 8, allowing us to get closer
to customers, respond to their inquiries, and provide
solutions to their needs efficiently and sustainably.
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
234
• The work accomplished in 2024 enabled the Company to offer improved service and experiences to its
in-person channel customers, as evidenced by the significant enhancement in service indicators. Among
the main indicators are the following:
• Service level: on average, 88% of customers were serviced in less than 15 minutes during 2024, versus
83% during 2023.
• Waiting time: customers waited an average of 7.7 minutes to be attended to during 2024, versus 11.2
minutes during 2023.
• Satisfaction survey (post-care): the result from 2023 remains the same, so, on average, 95% of
customers report being satisfied with the service in commercial offices during 2024.
• Self-service: on average, 55% of customers who go to Commercial Offices use self-care channels
during 2024, versus 45% during 2023.
Differentiated care for customers with
special needs
In relation 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.
In 2024, in collaboration with the sustainability
department, efforts are being made to enhance
the in-person service conditions for customers
with
special
needs.
These
efforts
include
implementing on-screen audio announcements
for service numbers in commercial offices, as well
as proposing a signage architecture project that
involves signage at preferential counters, at the
beginning and end of stairs, on self-service kiosks,
on swing doors indicating the direction they should
open (Pull-Push) and establishing tactile pathways
on the floors.
By 2025, we anticipate completing all the signage
projects that started in 2024.
Service for electro-dependent customers
Enel Distribución Chile is committed to providing
personalized and always accessible service to electro-
dependent customers. As of the end of 2024, 2,589
electro-dependent customers were registered. They
all have access to dedicated priority service when they
need assistance, thanks to the automatic recognition
of the phone number registered in the company's
systems. If customers reach out through a different
phone number, their customer number is recognized,
allowing for a direct referral to specialized executives.
Promoting responsible and efficient use
of energy
• Energy management platforms for free
customers: The Company provides web platforms
for free or non-regulated customers, enabling them
to manage energy in their facilities, monitor their
energy performance, achieve their energy efficiency
goals, and develop policies or strategies to reduce
consumption costs.
• Energy Management System: It focuses on
large consumers who implement energy efficiency
measures. This platform centralizes facility energy
consumption, permitting customers to quickly and
wisely understand their energy performance in real
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
235
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Enel X
time. This helps define guidelines and management
strategies to reduce consumption. Consequently,
users utilize their energy more efficiently. To date,
there are 25 connected customers.
• Demand management incentive: a program
aimed at companies with the capacity to manage
electrical consumption, seeking to achieve savings
on their energy tariff and rewarding the shift of
consumption from nighttime use to daytime. It
allows for a better use of the renewable energy
available in the National Electric System.
The energy transition is an ongoing process
involving various participants: citizens, communities,
companies,
institutions,
local
authorities,
and
governments. It represents a paradigm shift aimed at
creating more sustainable cities to enhance people's
quality of life from economic, social, and environmental
perspectives.
Electrification contributes to many aspects of our
lives, from reducing 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 (hereafter referred to as "Enel X"), has focused
its efforts on replacing polluting energy sources with
the extensive use of electricity in both the public and
private sectors. It offers various solutions that facilitate
the electrification of homes, industrial processes,
corporate fleets, and public transportation.
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
ENEL X
1) Cumulative figures.
(2) Includes electric buses supplied, managed, and operated by Enel X.
(3) Charging points for public, private, and operated electric buses.
(4) Includes assistance services, air conditioning, and photovoltaic panels.
(5) Includes all electric buses, charging points through Enel X, all-electric buildings, and air conditioning/heating sold.
2,296 units
Electric buses (1,2)
2,195 units in 2023
Variation +5%
355 thousand
Public
lighting (1)
367 thousand in 2023
Variation -3%
820 TWh
Electrification (5)
(TWh accumulated since 2019)
601.01 TWh in 2023
Variation +36%
3,213 units
Charging points (1,3)
2,804 units in 2023
Variation +15%
26,074 units
Heating
replacement (1)
21,575 units in 2023
Variation +21%
58 thousand
E-Home services(3)
82 thousand in 2023
Variation -29%
236
Enel X, enabler of circularity
Enel X has emerged as a leading Company in energy
efficiency solutions, becoming the primary enabler for
widespread public electric mobility in the country. At
the same time, it has successfully established itself as
a "strategic partner" for various customer segments,
including businesses, homeowners, 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. The
company capitalizes on technological development
to create value in an era of profound changes and
transformations, creating innovative, digital, and
specific products for people, companies, and cities.
The Company created new policies to develop and
implement projects that incorporate the circular
economy into their processes. This guarantees their
sustainability and enhances the product and service
portfolio that Enel X provides to its customers.
In line with its strategic principles, the Enel Chile Group
has promoted the acceleration of city electrification
through its business lines: electrifying transport
for the public sector, industries, and households;
implementing new Full Electric projects; and making
significant progress in replacing wood-burning stoves
with inverter air equipment for homes. Similarly, it
has completed energy efficiency projects to support
customers in mitigating their carbon footprint,
ventured into new industrial sectors, and adopted new
business models.
Enel X Chile and the current context
The year 2024 was eventful for Chile's energy
transformation, characterized by the implementation
of several regulations governing the electrical
sector, which support more sustainable and efficient
models. Enel X Chile, in collaboration with the Group's
subsidiary companies, developed an integrated range
of sustainable energy solutions suitable for diverse
productive
sectors,
industries,
institutions,
and
families, addressing the country's challenges.
One of the most significant regulatory developments
was the approval of the Tariff Normalization Law (Law
21,667), which gradually unfroze energy tariffs that
had not been adjusted since 2019. This tariff liberation
resulted in higher energy costs, creating a scenario
of new incentives and enabling the adoption of more
efficient and sustainable technologies, such as solar
energy.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
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 opportunities.
For the Cities
The Company makes cities more
liveable, assessing circularity
and boosting it with smart
lighting and energy efficiency.
For the People
The Company makes homes
smarter, more comfortable and
sustainable; punctuate its
circularity.
237
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
At the same time, by the end of 2024, a new regulation
reduced the consumption requirement for free
customers of businesses with a consumption equal to
or greater than 300 kW and the ability to negotiate
their energy supply directly. This change provides them
access to individualized pricing, improved contract
conditions, and specialized support, enabling them to
optimize energy usage and reduce operating costs.
Undoubtedly, this regulation has created opportunities
for a new segment of companies. These companies
can now access fully renewable energy and stable
long-term prices while enhancing their energy
offerings through the implementation of energy
efficiency solutions for their facilities.
This integrated offer model allows customers to
combine energy contracts with innovative solutions
and personalized advice, enabling various industries
and institutions to optimize their consumption and
reduce costs.
As part of its commitment to advancing electromobility
in Chile, Enel X remains a key player by participating
annually in the Public-Private Agreement signed by the
Ministry of Energy. This initiative aims to promote the
widespread adoption of technology across all sectors,
both public and private, connecting more companies
and institutions in the national effort to achieve carbon
neutrality by 2050. In 2024, our initiatives included
deploying new public and private charging stations
and implementing electric fleets in strategic sectors,
such as urban transportation and mining.
Throughout the year, Enel X has increased its
collaboration with the government and the private
sector, permitting us to develop flexible financing
options that promote sustainable technologies. At
the same time, we continue to work on smart city
projects, integrating sustainable infrastructure and
urban furnishings, efficient lighting, and charging
stations for electric vehicles, progressing towards an
environmentally responsible city model.
With a clear vision for the future, Enel X positions
itself as a strategic partner to facilitate Chile's energy
transition. It provides solutions tailored to the country's
objectives and the needs of various industrial,
commercial, and residential sectors, contributing to
the development of a more responsible, inclusive, and
sustainable society.
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
238
Principal projects in 2024
Enel X and Enel Generación present "Integrated Offer" model
The Energy Efficiency Law for large consumers now serves as a robust
incentive for those transitioning toward technological reconversion and the
decarbonization of their operations. By implementing advanced technologies
that provide significant savings and operational efficiencies, large companies
can better achieve these objectives, which involve increasing the possible
consumption electrification.
In this context, Enel Generación and Enel X showcased the advantages of
the Integrated Offer model. This model permits electro-intensive industries
and institutions to conduct their production processes more efficiently
and sustainably. It provides access to green energy supply contracts, solar
photovoltaic solutions, and energy audits. It incorporates efficient technologies
such as LED lighting, heat pumps, photovoltaic systems, electromobility, and
upgraded electrical infrastructure.
Electromobility and green mining: a new step towards sustainability
To promote electromobility in the mining sector, Enel X, in collaboration with
Codelco and BTG Pactual, has introduced 95 fully electric buses to transport
staff members from the state-owned copper mines at the Nuevo Salvador and
Radomiro Tomic operations, situated in the Atacama and Antofagasta regions,
respectively. This initiative enables nearly 1,500 workers to benefit from zero-
emission transportation in the mining sector.
Similarly, as part of this initiative aimed at accelerating processes related to
the energy transition and promoting green mining, two electric terminals
were launched in the Atacama Region, each equipped with eight chargers
and a total capacity of 150 kW. Additionally, another electric terminal was set
up in the Antofagasta Region with 17 charging points of the same capacity.
This new infrastructure guarantees the energy supply for the new fleets,
expediting Codelco's energy transition and reinforcing the decarbonization of
its processes.
Sustainability and innovation in the agro-industrial sector
As part of our large-scale agreement with Geofrut, we implemented six
renewable energy projects in their production plants, installing a total of 2.2
MWp of capacity. This significantly improves energy efficiency and reduces
their energy costs. Additionally, thanks to these projects, we will contribute
to reducing approximately 1,504 tons of CO2e from the environment, which is
equivalent to planting 3,760 trees. This initiative reinforces our commitment to
creating a more sustainable future for the agro-industrial sector.
E-Industries
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
239
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Grupo Lampa photovoltaic Project
We collaborated with Grupo Lampa to inaugurate a photovoltaic project at one
of their processing facilities in Colina. This initiative will allow them to offset
93% of their energy consumption. The photovoltaic system, which spans 1,202
m², consists of 340 solar modules, each generating 600 Wp. It employs state-
of-the-art technology to generate an estimated 321 MWh of energy annually,
thereby preventing the emission of approximately 119 tons of CO2e, equivalent
to the carbon dioxide absorbed by 300 trees.
Solar carport in MTS
Enel X implemented a pioneering project in the central building of the MTS
Railway Network, which involved installing a solar biodiverse parking lot, also
known as a Sustainable Biocarport. This facility can accommodate 20 vehicles
and two simple charging points for electric vehicles. Additionally, it incorporates
a photovoltaic solar system with a power of 17 kWp, consisting of 38 high-
efficiency panels and an elevated vegetation area, which creates a biodiverse
and innovative space within its facilities, located in the Cerrillos district.
Part of the project also includes installing a rooftop photovoltaic solar plant
with a capacity of 280 kWp, which will deliver an estimated annual energy
generation of 406.27 MWh.
Gourmet Photovoltaic Project (Good Food S.A.)
Enel X implemented a photovoltaic system project at the Gourmet plant of
Good Food S.A., located in the Peñaflor district. The project, which is part of
the integrated offer model that we deliver jointly with Enel Generación, will
allow Good Food to create efficiencies in its operating costs by combining
electricity supply with a solar photovoltaic system with high-efficiency 550 Wp
panels, reaching an installed capacity of 59.4 kWp.
This initiative will also allow Good Food to project an annual energy generation
of around 85 MWh while also contributing to an estimated reduction of 37 tons
of CO2e per year, equivalent to the positive impact of planting 92 trees.
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
240
428 new electric buses for public transportation in the Metropolitan Region
In partnership with the Metropolitan Public Transport Board, the Ministry
of Transport and Communications, and the Government of Chile, we have
integrated 428 new electric buses into the Metropolitan Region's public
transport system.
Thanks to these vehicles, over 280,000 people will receive a more comfortable,
accessible, and environmentally friendly service weekly. The residents of Maipú,
San Bernardo, El Bosque, La Cisterna, and La Pintana will now have access to
sustainable public transportation that incorporates cutting-edge technologies
such as Wi-Fi, surveillance cameras, and air conditioning.
Promoting Electro-mobility in Rancagua
In collaboration with the Government of Chile, the Regional Government of
O'Higgins, and Cabal Transporte, ten new electric buses were integrated into
Rancagua's public transportation system. These vehicles joined Line 500,
commonly known as the february 25 Buses, which also features a new electric
terminal constructed by Enel X, equipped with three 150 kW chargers.
This infrastructure allows for efficient energy supply to the new electric buses,
providing citizens with cleaner and more sustainable public transportation.
Launch of electro-terminal in La Serena – Coquimbo
In collaboration with the Ministry of Transport and Telecommunications of Chile
and the key authorities of the Coquimbo Region, the Company launched the
new La Serena - Coquimbo Electro-terminal, marking a significant milestone
in expanding electromobility to the country’s regions.
This state-of-the-art electric terminal features 42 electric buses and 11 Enel X
chargers, aimed at reducing pollutant emissions while providing comfortable
and efficient transportation services that will benefit more than 8,000 families
in their daily commutes, offering amenities such as Wi-Fi, air conditioning, and
GPS, reaffirming our commitment to the country's carbon neutrality goals.
New LED streetlights for Temuco.
In collaboration with the Municipality of Temuco and Grupo Sinec, we took a
significant step towards a brighter and more sustainable future for the city of
Temuco by implementing a project to replace over 36,000 sodium streetlights
with modern LED streetlights.
The project included an advanced remote management system in key areas
of the city, allowing real-time monitoring of streetlight status. This ensures
E-City
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
241
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
optimal operation, enhances energy efficiency, and reduces CO2e emissions
in the environment.
Security and connectivity for Ñuble
In collaboration with the Ñuble Regional Government and Security and
Technology Services S.A., we have launched the "Security Cameras for the
Ñuble Region” project. This initiative involves installing 209 surveillance
cameras across 21 municipalities and implementing 84 free Wi-Fi hotspots in
public areas.
Furthermore, as part of our efforts to improve public safety, we will establish
real-time monitoring rooms and a control center linked to the Carabineros
Communications Center and the PDI.
More than 26,000 wood stoves were replaced with air conditioning.
The replacement of wood stoves with inverter air conditioning is implemented
in homes at no cost to families. It is funded by various companies through an
emissions offset mechanism to neutralize their operations.
Since 2017, Enel X has carried out this project, completing 26,076 replacements,
which has contributed to preventing 527 tons of PM2.5 from being emitted
into the environment, directly aiding in the reduction of particulate matter
emissions resulting from the residential combustion of wood stoves.
In 2024, 4,499 stoves were replaced, accounting for 90 tons of PM2.5 removed
from the environment. This accomplishment directly supports the elimination
of wood use in the country while also promoting the decontamination of cities.
Promoting renewable energy use in the residential sector.
Together with Siena Inmobiliaria, we signed an agreement to incorporate
renewable energy into the real estate development of the Canquén Norte
Condominium project, located in the Piedra Roja sector of Chicureo, Colina.
The project involves installing photovoltaic solar panels on the 15 homes in the
new phase of the condominium. This initiative will promote sustainability and
energy generation for self-consumption, and it is expected that each home
will achieve energy savings of 20% to 30%.
E-Home
Description of Enel Chile's Business
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
242
Electrification challenges
The electrification of cities is no longer just a
trend but rather a conviction shared by various
public
and
commercial
stakeholders.
There
is
widespread agreement that electric solutions for
urban development, encompassing the industrial,
commercial, and residential sectors, not only advance
sustainability but also address specific challenges. They
aid in industry decontamination and decarbonization,
thus making a meaningful contribution to climate
action.
The increasing use of electromobility, not only in public
transportation but also in people’s preferences for
environmentally friendly transport options, highlights
a significant paradigm shift. This trend mirrors how
people choose to heat their homes, dispelling the
myth that electric heating is costly while promoting it
as the cleanest and most efficient heating choice on
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.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Description of Enel Chile's Business
243
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Performance of
the Enel Chile Group
EBITDA BY BUSINESS SEGMENT
(in millions of Ch$)
2024
2023
Variation
Variation %
EBITDA Generation Segment
722,688
991,587
(268,899)
(27.12%)
EBITDA Distribution & Grids Segment
60,469
92,378
(31,909)
(34.54%)
Consolidation adjustments and other business activities
(61,995)
(45,007)
(16,988)
37.75%
Total Consolidated EBITDA ENEL CHILE
721,162
1,038,958
(317,796)
(30.59%)
Operating income decreased by 9.0% to Ch$3,987,135
million as of December 2024, primarily explained
by the extraordinary effect of the discontinuation
of accounting hedges associated with revenues
directly linked to the evolution of the US dollar,
amounting to Ch$620,164 million, and a lower level
of gas marketing during the period, both within the
Generation Business.
As of December 2024, procurement and service costs
amounted to Ch$2,905,569 million, reflecting a 3.0%
decrease compared to December 2023, primarily due
to reduced fuel consumption costs in the Generation
Segment.
As a result of the above, the Company’s EBITDA fell
by 30.6%, totaling Ch$721,162 million as of December
2024.
EBITDA Generation Segment
EBITDA GENERATION SEGMENT
(in millions of Ch$)
2024
2023
Variation
Variation %
Operating Income
2,784,385
3,276,387
(492,002)
(15.02%)
Operating Costs
(1,845,817)
(2,077,671)
231,854
(11.16%)
Staff costs
(52,907)
(60,883)
7,976
(13.10%)
Other expenses by nature
(162,973)
(146,246)
(16,727)
11.44%
EBITDA Generation Segment
722,688
991,587
(268,899)
(27.12%)
• Operating income decreased by 15.0% to Ch$
2,784,385 million as of December 2024, primarily
due to the extraordinary impact of discontinued
accounting hedges related to revenues directly tied
to fluctuations in the US dollar, amounting to Ch$
620,164 million, along with a reduced level of gas
marketing during the period.
• Supply and service costs amounted to Ch$ 1,845,817
million as of December 2024, representing a
decrease of 11.2%, mainly due to lower costs for fuel
consumption and gas marketing compared to 2023.
• Considering the above, the EBITDA of the Generation
Segment amounted to Ch$722,668 million as of
December 2024, representing a 27.1% decrease
compared to the previous year.
Performance of the Enel Chile Group
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
244
EBITDA Distribution and Grids Segment
EBITDA DISTRIBUTION AND GRIDS SEGMENT
(in millions of Ch$)
2024
2023
Variation
Variation %
Operating Income
1,641,410
1,511,619
129,791
8.59%
Operating Costs
(1,467,109)
(1,321,193)
(145,916)
11.04%
Staff costs
(29,386)
(26,534)
(2,852)
10.75%
Other expenses by nature
(84,446)
(71,514)
(12,932)
18.08%
EBITDA Distribution & Grids Segment
60,469
92,378
(31,909)
(34.54%)
• Operating income rose by 8.6% compared to 2023,
reaching a value of Ch$ 1,641,410 million, primarily
due to increased energy sales, partly attributed to
higher physical sales.
• Supply and service costs totaled Ch$ 1,467,109
million as of December 2024, representing an 11.0%
increase compared to the previous year, primarily
attributed to higher energy purchase costs.
• As a result of the above, the EBITDA of the
Distribution and Grids business reached Ch$60,469
million as of December 2024, which is 34.5% lower
than the level recorded in 2023.
Economic Value Generated and Distributed
to stakeholders
The economic value generated and distributed directly by Enel Chile provides a good indication of how the Group
creates wealth for all stakeholders.
Figures in Ch$ million
2024
2023
Economic Value Generated (EVG)
Directly generated economic value
4,073,539
4,742,049
Operating income
3,987,135
4,380,246
Non-operating income
86,404
361,803
Economic Value Distributed(EVD)
Directly distributed economic value
4,227,569
4,463,629
Operating costs
3,491,779
3,454,896
Wages and social benefits for workers
123,204
133,159
Payments to capital providers
577,657
648,662
Financial expenses
232,584
247,068
Dividend Payment
345,073
401,594
Government Payments
34,929
226,912
Economic Value Retained (EVR)
EVR = EVG - EVD
(154,030)
278,420
Payments to the government include those made in Chile, where the Company primarily operates, and in Argentina
for the Enel Generación Chile branch in Jujuy. Neither of these countries is a tax haven. Enel Chile supports the
development of local economies through tax payments.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Performance of the Enel Chile Group
245
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Customer concentration by business segment
Generation segment
Enel Chile has two customers whose sales in 2024 individually accounted for 10% or more of consolidated ordinary
revenues in the generation segment. These customers are Compañía General de Electricidad S.A. and Enel
Distribución Chile S.A. (a subsidiary of Enel Chile, which is part of the distribution and grids segment).
Distribution & grids segment
Enel Chile's customer portfolio in this business segment is adequately diverse, with none accounting for more than
10% of the consolidated ordinary revenues.
[NCG 461 - 6.2 iv]
Performance of the Enel Chile Group
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
246
Structure and regulatory
framework of the
electricity industry
Industry overview & structure
The Chilean electricity market consists of four
categories of local agents: generators, transmitters,
distributors, and large customers. The industry's
three business segments—generation, transmission,
and distribution—must operate interdependently to
provide electricity to end customers at the lowest
possible cost while adhering to the quality and safety
standards required by industry regulations.
Chile's electricity sector is physically divided into three
main grids: SEN (Sistema Eléctrico Nacional), which
stretches from Arica in northern Chile to Chiloé in
southern Chile, and two smaller isolated grids (Aysén
and Magallanes).
The following table shows the relationships between
the different agents in the Chilean electricity market:
[NCG 461 - 6.1 iii]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Structure and regulatory framework of the electricity industry
247
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Generation
Generators supply electricity to end customers
through lines and substations owned by transmission
and distribution companies. The generation segment
operates in a competitive market, enabling generators
to sell their power to unregulated customers and
other generation companies via contracts at freely
negotiated prices. They can also sell to distribution
companies to provide regulated customers with power
through contracts governed by tenders established by
the authorities.
Transmission
Transmission companies own power lines and
substations
with
voltages
exceeding
23
kV,
transporting electricity from generators to distribution
or consumption centers. They charge a regulated fee
for access to their facilities. The transmission sector
operates as a natural monopoly and is governed by
specific industry regulations, including antitrust laws.
Tariffs are regulated, and access must be open and
guaranteed under non-discriminatory terms.
Structure and regulatory framework of the electricity industry
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Generators
Spot Managed
by the 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
248
Distribution
Distribution companies provide electricity to end
customers via an electrical infrastructure of less than
23 kV. The distribution segment functions as a natural
monopoly and is subject to specific industry regulations,
including antitrust laws. The electricity grid allows for
open access, and distribution tariffs are regulated.
Distribution companies must supply electricity to
regulated customers within their concession area at
predetermined prices. According to Law No. 21,194
("Distribution Tariff Law"), distribution companies are
prohibited from entering into new electricity supply
contracts with non-regulated customers.
Concessions
Hydroelectric
generation
requires
concessions
granted by authorities to operate indefinitely. However,
other technologies for electricity generation do not
need these concessions. Chile's Ministry of Energy
issues distribution concessions for indefinite periods
and grants the right to use public land for constructing
distribution lines. Distribution companies must provide
electricity to all customers who request service within
their concession area. A concession can be declared
void if the quality of service fails to meet the specific
minimum standards set by the regulator.
Customers
The Company classifies customers based on their
demand as either regulated or non-regulated.
Regulated customers have a connected capacity
of up to 5,000 kW, while non-regulated customers
have a connected capacity exceeding 5,000 kW.
Customers with a connected capacity between 500
kW and 5,000 kW can choose to be either regulated
or non-regulated, depending on the applicable pricing
regime. However, they must remain in their selected
category for a minimum of four years.
Limits to integration and concentration
The antitrust legislation established in Decree with
Force of Law ("DFL") 211 (amended in 2016 by Law
No. 20,945) and the rules applicable to the electricity
industry established in DFL 4 ("Electricity Law") and
Law No. 20,018 (General Law on Electricity Services)
have established the criteria to avoid economic
concentration and abusive market practices in
Chile. Companies can participate in different market
segments (generation, distribution, transmission) so
that they are adequately separated from an accounting
and corporate perspective. Companies must also
comply with the conditions set out in Resolution No.
667/2002 and the Distribution Tariff Law, which are
discussed below.
The transmission sector is subject to the strictest
restrictions,
mainly
due
to
its
open-access
requirements. The Electricity Law establishes that the
companies that own the National Transmission System
("NTS") cannot carry out activities in the generation or
distribution segment. The owners of the NTS must
be limited liability corporations. Individual holdings in
the NTS by companies operating in another segment
of electricity or non-regulated customers may not
exceed, directly or indirectly, 8% of the total investment
value of the NTS. Furthermore, the aggregate share of
all these agents in the NTS cannot exceed 40% of the
total value of the investment.
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
boost transparency related to the Company and its
subsidiaries through Resolution No. 667/2002 issued
by the Free Competition Tribunal.
Resolution No. 667/2002 establishes that Enel Chile
must keep its generation and distribution segments
separate and manage them as independent business
units. Enel Chile, Enel Generación, and Enel Distribución
are registered with the CMF. They must remain subject
to their regulatory authority and comply with the
regulations applicable to listed corporations, even
if any of these companies lose such description.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Structure and regulatory framework of the electricity industry
249
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
The members of Enel Chile’s Board of Directors and
its subsidiaries 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 can sell to distribution
companies, unregulated end customers, or other
generation companies through contracts. They
meet their contractual sales needs with dispatched
electricity, whether produced in-house or purchased
from other generation companies on the spot market
or through contracts. These companies balance their
contractual obligations by trading deficit and surplus
electricity at the spot market price, which is set every
hour by the NE based on the lowest cost of production
of the last dispatched kWh.
Customers subject to the unregulated pricing
regime can negotiate their electricity supply with
suppliers. However, they must pay a regulated fee to
use the transmission and distribution grid. Regulated
customers with residential generation units can
sell their surplus energy 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 surplus energy, both in aggregate and
individually.
Water rights
All Companies established in Chile must pay an annual
fee for unused water rights. License fees already paid
can be recovered through monthly tax credits, starting
from the project's start date associated with the water
rights. The maximum license entitlements that can be
recovered are those paid eight years before the start
date.
Electricity Sector Laws
Private sector companies played a significant role in
developing the Chilean electricity industry from the
beginning. However, there was a period of government
nationalization between 1970 and 1973. In the 1980s,
the Electricity Law brought about a reorganization of
the sector, opening up opportunities for private sector
involvement. The industry is currently governed by
Law No. 20,018 and its amendments, which fall under
the Electricity Law, DFL 4 Reformed. This law was
published in 2006 by the Ministry of Economy, along
with its respective regulations included in Supreme
Decree D.S. No. 327/1998.
Chile
has
actively
promoted
Non-Conventional
Renewable Energy ("NCRE") since 2008. NCRE includes
wind, solar, geothermal, biomass, ocean (movement
of tides, waves, currents, and thermal gradient of the
ocean) electricity, and mini-hydropower plants with
less than 20 MW capacity.
Law No. 20,698 (2013) mandated a 20% obligatory
share of non-conventional renewable energy (NCRE)
sources in total contracted electricity sales for 2025.
However, this requirement was extended to contracts
signed between 2007 and 2013, which set a target of
10% for 2024.
Structure and regulatory framework of the electricity industry
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
250
[NCG 461 - 6.1 iv]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Structure and regulatory framework of the electricity industry
Main regulatory authorities
Entities responsible for establishing
policies
The Ministry of Energy is the primary regulatory
authority in the Chilean energy industry. It
establishes and coordinates plans, policies, and
standards for the sector's effective operation and
development in Chile.
Regulatory office and oversight body
The National Energy Commission (NEC) oversees
the approval of annual transmission expansion
plans, manages the indicative plan for building new
electricity generation facilities, and recommends
regulated tariffs to the Ministry of Energy for approval.
The Superintendency (Regulator) of Electricity and
Fuels inspects and monitors compliance with laws,
standards, regulations, and technical criteria applicable
to the generation, transmission, and distribution of
electricity, as well as liquid fuels and gas, and reports
to the Ministry of Energy.
Remuneration and tariffs
Remuneration of generators
To reduce operating costs, the NEC implements an
efficiency criterion that generally requires the lowest
available cost producer to meet demand at all times.
As a result, for any specific level of demand, the
appropriate supply is provided at the lowest feasible
production cost, known as marginal cost, available in
the system. This marginal cost per hour represents
the price at which generators trade energy on the
spot market, using both their injections (sales) and
withdrawals (purchases) to balance the sales of
their contracted customers with their production as
determined by the NEC.
Transmission tariffs
The remuneration for existing national and territorial
transmission facilities is determined through a tariff-
setting process that takes place every four years and is
regulated by Law No. 20,936. This process establishes
the annual transmission value, which factors in efficient
operation and maintenance costs. It also includes a
yearly assessment of investments based on a discount
rate set by the authorities every four years (at least 7%
after taxes) and the useful life of the facilities.
The
current
regulation
defines
transmission
remuneration as the total of tariff revenues and
revenues from usage charges received by the
System operator
The National Electrical Coordinator (NEC) acts as a
centralized dispatch center, ensuring the efficient
operation of the SEN. It highlights cost-effectiveness
and carefully monitors the quality of service offered
by generation and transmission companies. The NEC
calculates market balances (both energy injections
and withdrawals), transfers between generating
companies, and the hourly marginal cost, which
represents the price at which energy transfers happen
in the spot market. However, the NEC does not
determine rates for generation capacity; it establishes
the prices.
The NEC carefully plans and manages each generating
Company's energy production, considering various
factors such as marginal costs, maximum capacity,
statistical data, maintenance schedules, and power
plant water conditions. This comprehensive approach
ensures efficient operation even in challenging
circumstances, including drought-prone weather
that affects hydroelectric plants. However, it does not
consider the role of power plants in guaranteeing the
safety of the entire system.
251
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Structure and regulatory framework of the electricity industry
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
transmission system, which the NEC specifies as $/
kWh. Revenue is calculated semi-annually. The rate-
setting process for the period 2020-2023 concluded
in February 2023 and is retroactively effective from 1
January 2020.
Regarding the tariff-setting process for the 2024-
2027 period, the NEC recently published the final
technical report on the classification of transmission
facilities. The process should be completed in 2025.
Distribution tariffs
The Distribution Tariff Act set new limits on
investment returns for distribution companies. The
tariffs charged by these companies to regulated end
customers are established every four years. Tariffs
comprise the total cost of electricity purchased by
the distribution company, a transmission charge,
and the value added of electricity distribution (VAD),
enabling distribution companies to recover their
investment and operating costs, including a legally
mandated return on investment. The transmission
tariff represents the price paid for the transmission
and transformation of electricity. As of 2021, the law
also prohibits distribution companies from operating
in other sectors or industries.
The VAD is based on the so-called "efficient model
enterprise" within a typical distribution area ("TDA").
The NEC determines the VAD of each TDA. With the
resulting VAD, preliminary rates are tested to guarantee
an aggregate industry rate of return between 6%
and 8%. However, the Distribution Rates Law states
that each distributor's after-tax rate of return must
be between three percentage points below and two
percentage points above the rate of return calculated
by the NEC. A distribution Company's real return on
investment depends on its actual performance in
relation to the standards chosen by the NEC for the
efficient model Company. The tariff system allows a
higher return to distribution companies that are more
efficient than the model Company.
The regulation of electricity establishes tariff
equality mechanisms for electricity services. Law
No. 20,928 establishes that the maximum rate
distribution companies can charge residential
customers must not exceed the average national
rate by more than 10%. The differences arising
from applying this mechanism are progressively
absorbed by the rest of the customers subject to
regulated prices below the average above, except
for those residential users whose average monthly
energy consumption in the previous calendar year is
less than or equal to 200 kWh.
The process of setting distribution value-added tariffs
for 2020-2024 concluded in July 2024 and is effective
retroactively, starting on November 4, 2020.
Environmental regulations
Chile has numerous laws, regulations, and local
ordinances addressing environmental issues. These
include rules regarding waste disposal (such as the
discharge of liquid industrial waste), the establishment
of industries in locations that could 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
Standard issued in 1997 and amended in 2001. This law
establishes a general framework to regulate the right
to live in a pollution-free environment, the protection
of the environment, the preservation of nature, and
the conservation of environmental heritage.
On September 10, 2014, Law No. 20,780 was enacted
to establish 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
incur a charge of US $0.10 per ton, multiplied by a
formula based on the population of the municipality
where the generation plant is located. This results in
252
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Structure and regulatory framework of the electricity industry
additional fees of US $0.90 per ton for PM emissions,
US $0.01 per ton for SO2 emissions, and US $0.025
per ton for NOx emissions. This tax took effect in
2018, and the amount owed is calculated based on
the emissions from the previous year. All thermal
power plants of Enel Generación have established
methodologies to measure emissions and pay the
relevant taxes in accordance with the requirements of
the Superintendency of the Environment of Chile.
On June 13, 2022, Law No. 21,455 (Framework Law on
Climate Change) was enacted. The law mandates that
Chile achieve carbon neutrality and climate resilience
by 2050, with the possibility of advancing this timeline
if conditions permit. To tackle climate change, the law
outlines specific actions for 17 executive departments,
along with permissions and obligations at regional and
local levels. It also establishes the Long-Term Climate
Strategy, a roadmap that outlines how the country
will fulfill its commitments through concrete actions
over the next 30 years. Furthermore, it requires the
development of sectoral mitigation and adaptation
plans with clearly defined measures and actions to
achieve these objectives. On December 13, 2024,
the Ministry of Energy published the Climate Change
Mitigation and Adaptation Plan for Energy. This plan
contains 15 key actions and 13 concrete measures,
divided
into
three
main
concepts
(mitigation,
adaptation, integration, and means of implementation).
253
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Investments and
financial situation
Analysis of Enel Chile’s structure and financial
situation
Net financial debt
Millions of US$
2024
2023
Variation
Gross debt
3,931
4,408
(11%)
Cash
385
642
(40%)
Total net financial debt
3,546
3,765
(6%)
Investments and financial situation
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Net financial debt was US$3,546 billion as of
December 31, 2024, decreasing by US$219 million
compared to the previous year. This variation is mainly
explained by higher amortizations of intercompany and
third-party debt, totaling US$752 million; a decrease in
lease liabilities (IFRS 16), totaling US$11 million; and a
cash reduction of US$257 million, offset by new debt
disbursements reaching US$286 million.
Enel Chile's consolidated gross financial debt reached
US$3,931 billion, with an average life of six years. This
debt is mainly composed of:
2.5 times1
Financial Debt Net/EBITDA
3.0 times in 2023
US$ 3,546 million
Net Financial
Debt
US$ 3,765 million in 2023
31 %
Sustainable
Finance
About the total debt
23 % in 2023
1) Excludes the negative accounting effect of the change in the functional currency
254
US$ billions
2024
2027
Proportion of sustainable finance
31%
48%
• US$1,183 millions of related debts.
• US$1 billion corresponding to the Yankee Bond,
effective since June 12, 2018, for 10 years.
• US$930 million corresponding to debts with third
parties
• US$261 million corresponding to EGP Chile's debt
consolidated in the Enel Chile group since April
2018.
• International and local bonds at Enel Generación
Chile.
Enel Chile's available liquidity is broken down into the
following factors:
• Cash and cash equivalent: US$385 million
• Available committed credit lines: US$690 million, of
which US$340 million corresponds to committed
credit lines available between related companies.
The average cost of debt in December 2024 rose to
5.0% from 4.9% in December 2023.
Sustainable finance
At Enel Chile, sustainable finance is a key component
in creating value. The sustainable financing arranged
in 2024 enabled the Company to achieve an SDG-
linked debt of US$1,230 billion by the end of the fiscal
year, encompassing both credit lines and loans, which
corresponds to 31% of the total debt.
The Group's financial instruments and transactions
related to SDG-linked debt have an interest rate
associated with achieving a greenhouse gas emissions
reduction indicator CO2.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Investments and financial situation
Enel Chile’s current sustainable financing
APRIL 2021
DECEMBER 2021
AUGUST 2022
SEPTEMBER 2022
MAY 2024
Loan for
US$300 million
Loan for US$150
million
Line of credit for
US$294 million
Line of credit for
US$200 million
Loan for US$286
million
Enel Finance
International NV
(EFI)
255
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Investments and financial situation
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
MOST IMPORTANT 2024 TRANSACTIONS
Enel Chile S.A.
•
Revolving Credit Facility (RCF) in dollars for US$200
million contracted with Enel Finance International N.V.
(EFI).
Enel Chile S.A.
•
RCF Amortization with EFI 290 for US$200 million.
•
Contracted a committed revolving credit line with EFI
for US$700.
•
Contracted a committed revolving credit facility with
DNB Bank ASA & Citibank for an amount of US$150
million.
•
Contracted a committed credit revolving line with EFI
for $50.
Enel Chile S.A.
•
Withdrawal of all RCF with EFI 290 for US$290 million
with a one-month term.
•
Withdrawal of the entire RCF with EFI 200 for US$200
million with a one-month term.
•
Withdrawal of RCF 700 with EFI for US$300 million with a
one-month term.
•
RCF 50 drawdown with SMBC for US$50 million with a
one-month term.
Enel Generación S.A.
•
Amortization of Yankee Bond for US$400 million
contracted on April 15, 2014, in accordance with the
termination date established in the contract.
Enel Chile S.A.
•
Amortization of RCF with EFI 700 for US$100 million.
•
Contracted a loan with Citibank N.A., London for US$286
million
•
Closing of the US$100 million credit facility with EFI in
accordance with the maturity date established in the
agreement.
Enel Chile S.A
•
RCF amortization with EFI 700 for US$80 million. This line
was closed ahead of time on 7 November 2024.
•
RCF amortization with SMBC 50 for US$50 million. This
line was closed ahead of time on 30 December 2024
Enel Chile S.A
•
Loan Amortization with EFI 644 for US$80.5 million.
•
It contracted a committed revolving line of credit with
Corporación Andina de Fomento (CAF) for US$200
million. As of December 31, 2024, this line will be 100%
available
Enel Chile S.A
•
RCF amortization with EFI 700 for US$70 million.
•
RCF withdrawal with DNB Bank for US$100 million for a
one-month term.
Enel Chile S.A
•
RCF amortization with EFI 290 for US$290 million.
•
RCF amortization with EFI 200 for US$200 million. This
line was closed ahead of time on 30 December 2024.
•
RCF amortization with EFI 50 for US$50 million.
•
RCF amortization with DNB Bank for US$150 million.
Enel Chile S.A
•
RCF withdrawal with DNB Bank for US$50 million with a
one-month term.
•
RCF withdrawal with EFI for US$50 million for a one-
month term
Enel Chile S.A.
•
Amortization of SURCA 2019 with BBVA for US$100
million.
•
Closing US$50 million credit facility with EFI in
accordance with the maturity date established in the
agreement.
•
RCF amortization with EFI 700 for US$50 million.
•
Amortization of the SDG-linked loan with Santander for
US$50 million, according to the date established in the
agreement.
March
May
August
October
June
February
April
September
December
July
256
1
Excludes the negative accounting effect due to the change of the functional currency
Financial condition
Liquidity
At the end of 2024, Enel Chile had fully available
committed credit lines totaling US$690 million, of
which US$340 million corresponded to committed
credit lines available among related parties.
Similarly, the total SDG-linked debt reached US$1,230
billion, including both credit lines and loans, which is
31% of the total debt.
In addition to liquidity instruments, the Company and
its subsidiaries ended fiscal year 2024 with available
cash of US$385 million.
Debt
The consolidated gross financial debt of Enel Chile
reached US$3.931 million, with an average life of six
years. This debt is mainly composed of:
• US$1,183 million in debts with related parties
• US$1,000 million, corresponding to the Yankee
Bond, in effect since June 12, 2018, for 10 years.
• US$930 million in debts with third parties
• US$261 million corresponding to the debt of EGP
Chile consolidated in the Enel Chile Group since
April 2018.
• International and local bonds in Enel Generación
Chile.
Consolidated net financial debt at the end of 2024
amounted to US$3,546 million, with which the Net
Debt/EBITDA ratio stood at 2.5 times1
Hedging Policy
Exchange rate
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.
At the end of 2024, 93% of the consolidated financial
debt is denominated in US dollars or converted to
them 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 2024, the consolidated level
of fixed debt over the total financial debt was 89%.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Investments and financial situation
257
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
International Rating
Enel Chile
S&P
Fitch Ratings
Corporate
BBB / Stable
BBB+ / Stable
Clasificación local
Enel Chile
Feller Rate
Fitch Ratings
Shares
1st class, Level 2
1st class, Level 1
Bonds
AA / Stable
AA+ / Stable
Risk rating
The main risk rating developments that took place in
2024 are highlighted below:
Feller Rate
On June 27, 2024, it was reported that Enel Chile upheld
the risk rating issued by Feller Rate, which it first
received in 2017 when a national scale rating of "AA"
was assigned. At the time, the Feller Rate maintained
a stable outlook, considering the strong position
of the Company's generating portfolio, satisfactory
operational and geographic diversification, robust
financial structure, effective commercial policy,
successful execution of its investment plan, and
strategy to divest non-strategic assets.
Fitch Ratings
On December 17, 2024, Fitch Ratings confirmed Enel
Chile's international and national ratings at "BBB+" and
"AA+(cl)," respectively, maintaining a Stable outlook for
both. Additionally, the agency confirmed the rating of
the shares as "First Class Level 1(cl)."
Standard & Poor’s
On December 9, 2024, Standard & Poor’s confirmed
the international risk rating of Enel Chile S.A. at "BBB,"
maintaining a Stable outlook.
The Company's ratings are based on Enel Chile
S.A.'s diversified asset portfolio, credit parameters,
commercial policy, appropriate debt composition,
investment plan, and adequate liquidity profile.
Investments and financial situation
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
258
Billions of Ch$
2025-2027 (2)
2024 (3)
2023
Investment (1)
1,590
684
637
(3) Capital expenditures incurred in 2023 and 2024 were financed on the basis of internal fund generation or financing.
(1) CAPEX figures represent actual payments for each year, excluding forward-looking statements.
(2) On November 15, 2024, the company's Board of Directors approved an investment plan totaling $1.8 billion, approximate values in Chilean
pesos.
[NCG 461 - 4.3]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Investments and financial situation
Principal investments
Incorporating sustainability into projects and plants
The Company’s strategic plan involves an investment
of approximately US$1.8 billion for the 2025-2027
period. Our goal is to position ourselves as national
leaders in the electricity sector, focusing primarily
on
increasing
renewable
capacity,
increasing
digitalization, and improving grid resilience while also
pushing forward new uses for clean energy. As a result,
we expect to increase the installed renewable capacity
by approximately 1.0 GW by 2027 compared to 2023.
Enel Chile's investment plan is designed to be
flexible enough to take advantage of any potential
development opportunities. This approach enables
the Company to optimize its strategic objectives
and maximize profitability for its shareholders. Our
investment priorities in the generation and distribution
sectors emphasize developing environmentally and
socially responsible projects. We conduct thorough
studies for both new projects and existing facilities to
ensure reliable energy supply levels.
Enel Chile oversees the Group's financing strategy to
ensure optimal debt management at the consolidated
level. Subsidiaries develop their capital investment
plans, financed through internal funds or intercompany
financing. One of our Company's key objectives is to
prioritize investments that generate 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 2025 and 2027 and
those of the Enel Chile Group in 2024 and 2023.
Investments
Generation Segment
Current investment priorities include developing
hydroelectric and non-conventional renewable energy
(NCRE) projects. Enel Chile's principal investments
in generation will focus on reaching 9.4 GW by 2027,
of which 7.5 GW will be renewable capacity, for which
there is a portfolio of projects under construction and
development as detailed below:
Solar power plants
PMDG (33 MW of power).
Wind power plants
Talinay III (77 MW of power), and PMGD (30 MW of
power).
BESS
Storage units complement projects in operation, such
as Valle del Sol (+152 MW), Azabache (+100 MW), and
others (200 MW).
259
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Investments and financial situation
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Relevant investments in 2024, 2023, and
2022
Capital investments in the last three years were mainly
related to:
1. The 153 MW Los Cóndores project.
2. The expansion of installed capacity will reach a total
of 9.4 GW net at the end of 2027, which considers a
growth of 1.0 GW compared to the end of 2023 and
0.6 GW compared to the end of 2024.
3. Maintenance of existing installed capacity.
The capital investments in the Los Cóndores project
and NCRE's projects (solar, wind, and BESS) were
financed with company funds or financial debt, as
appropriate to the Company's needs.
Distribution and Grids Segment
In 2024, Enel Distribución Chile and its subsidiary
invested a total of Ch$123 billion, primarily to support
the organic growth of customers, service quality,
safety, and information systems. Of this amount,
Ch$55 billion was allocated to maintenance needs,
Ch$10 billion to growth investments, and Ch$58 billion
to connectivity activities.
In 2024, a total of Ch$58.9 billion was invested in
upgrading Medium-Voltage (MV) and Low-Voltage (LV)
grids, facilitating the connection of new residential
customers, large customers, and real estate projects.
Additionally, Ch$4.3 billion was invested in grid
relocation at the request of municipalities and for new
projects and roadwork.
To improve the quality of supply, the Company invested
Ch$7.7 billion, reinforcing feeders according to a
quality plan in MV and LV. Additionally, Ch$6.4 billion
was invested in the construction and reinforcement
of new feeders to increase distribution capacity.
Work was done on the automation of the MV grid by
incorporating 103 new remotely controlled devices,
which are intended to improve flexibility between
feeders and minimize the impact of events that affect
service continuity.
The Company invested nearly Ch$11.4 billion in
technical and financial systems, focusing on process
digitalization.
Approximately Ch$17.8 billion was spent on financing
corrective maintenance works for the grids related
to tasks in transmission line facilities, interconnection
substations, and power substations. A series of
actions aimed at enhancing grid technologies were
also funded.
To meet regulatory compliance, Ch$2.3 billion was
invested in legal adjustments for standardizing grids
and substations.
Ch$4.3 billion was invested in the Smart Meters
project, which is characterized by a strong focus on
the installation of concentrators.
Additionally, investments totaling Ch$2.9 billion were
directed toward anti-theft measures, including grid
shielding by installing Ananda and Tortuga boxes,
technical measures, and grid reinforcements.
Finally, Ch$7.0 billion was invested in response to the
severe weather event in August 2024, with Ch$5.6
billion allocated for the emergency plan and Ch$1.4
billion for reconstruction.
Incorporating sustainability into projects and plants
Tackling
climate
change
requires
solid
short-
term actions. To do that, Enel Chile promotes the
development of renewable energies.
The Company applies management models in the
different stages of its plants' life cycle, from their design
to their closure, allowing comprehensive management
of their impacts according to their characteristics and
context.
260
1
BESS (Battery Energy Storage System).
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Investments and financial situation
Principal projects
Projects commercially implemented in
2024
EGP Chile
Don Humberto Solar Project and BESS1
The Don Humberto solar project is located in the
Metropolitan Region and has a net installed capacity
of 80 MW. It includes an energy storage system
(BESS) with a storage capacity of 67 MW. The land has
been secured, and environmental approval has been
obtained.
The total investment was approximately US$145
million. Construction began in 2023, and the project
reached the stage of a commercial operation in the
fourth quarter of 2024.
Water
People and territory
Energy and emissions
Biodiversity
Materials
Comprehensive management of the main impacts generated by
business activities
ASSET LIFE CYCLE AND VALUE CHAIN
Engineering and
Construction
Operation and
Maintenance
Sustainable
Plant
Sustainable
Design & Construction Site
Dismantling
Sustainable
Decomm
Business
Development
Tools for the sustainability of projects from their
design
Enhance the sustainable
performance of assets
in operation and their
creation of value for the
territory where they are
inserted
Manage closure and
sustainable reconversion
of plants
261
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Investments and financial situation
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
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, consisting of 162,000 monocrystalline bifacial
photovoltaic modules and 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 is connected to the El Manzano
substation via a 6.3 km medium-voltage transmission
line.
The total investment was approximately US$158
million. Construction of the project began during the
first quarter of 2023. The PV plant reached commercial
operation in the first quarter of 2024, and the BESS
reached commercial operation in the third and fourth
quarters of 2024, respectively.
La Cabaña Wind Project and BESS
The La Cabaña wind project is located in the Araucanía
Region of southern Chile. It has a net installed capacity
of 106 MW and includes a BESS with a storage capacity
of 69 MW. The project is connected to the national
system through the Renaico wind farm substation.
The total investment was approximately US$223
million. Construction began in 2022. The wind farm
reached commercial operation in the first quarter of
2024, and the BESS I and BESS II reached commercial
operation in the third quarter of 2024.
Las Salinas Solar Project (formerly known as
Sierra Gorda Solar Project)
The Sierra Gorda solar project is located in Sierra
Gorda, near Calama, in the region of Antofagasta in
northern Chile. The solar photovoltaic 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 within the existing Sierra
Gorda wind farm owned by EGP Chile. The project has
five main areas for the PV modules within the wind
farm and a separate space for the medium-voltage/
high-voltage substation. It consists of 461,000
monocrystalline bifacial photovoltaic modules with a
solar tracking system. The project will be connected
to the Centinela substation located 19 km from the
solar plant, in the Centinela substation owned by Red
Eléctrica Chile.
The total investment was approximately US$283
million. Construction began in 2021, and the project
reached commercial operation in the third quarter of
2024.
PMGD Solar Project (Pataguas)
The PMGD Pataguas project is located near Melipilla in
the Metropolitan Region. The plant has a net installed
capacity of 10 MW and is connected to the Bajo
Melipilla substation.
The total investment was approximately US$10 million.
Construction began in 2023, and the project reached
commercial operation in the second quarter of 2024.
Projects with additional capacity
reached in 2024
EGP Chile
PMGD Solar Projects
The 7 PMGD projects are situated in central Chile, with
the plants boasting a total installed capacity of 29
MW. The total approved investment is approximately
US$28 million, nearly all of which had been incurred
by December 31, 2024. Construction commenced in
2023, and the projects were connected to the grid
that same year, contributing an additional 29 MW of
installed capacity. These projects are anticipated to
start commercial operations in 2025.
Enel Generación Chile
Los Cóndores Hydroelectric Project
The Los Cóndores project is located in the Maule
Region, in the San Clemente area, in central Chile. It
consists of a 153 MW run-of-the-river hydroelectric
plant with two vertical Pelton water turbine units that
will use water from the Laguna del Maule reservoir
through a pressure tunnel. The plant's construction
and
commissioning
tests
were
completed
in
December 2024. The power plant is connected to the
SEN at the Ancoa substation (220 kV) via an 87 km
transmission line.
262
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Investments and financial situation
The total approved investment is approximately US$1.2
billion, of which approximately all had been incurred
as of December 31, 2024. The project was connected
to the grid in the fourth quarter of 2024 and reached
commercial operation in the first quarter of 2025.
Rapel Hydroelectric Repowering Project
The Rapel Hydroelectric repowering project is being
carried out within the current Rapel plant, which has
375 MW of net installed capacity and is located in the
O'Higgins Region in central Chile. Rapel is a reservoir-
based hydroelectric power plant with five vertical
Francis turbine units that use water from the Rapel
River.
The project consists of replacing two turbines (Unit
3 and Unit 4) installed in 1968 with an efficiency of
less than 85%. The turbines will have a new hydraulic
design, offering higher efficiency (>92%) and increasing
net installed capacity by 2 MW (1 MW for each unit).
The total approved investment is approximately US$12
million, of which approximately US$10 million had
been incurred until December 31, 2024. The project
is expected to reach additional capacity and be
completed in 2025.
Projects under construction in 2024
EGP Chile
PMGD Solar Projects
Six new PMGD solar plants, with a total net installed
capacity of 33 MW, are currently being built in central
Chile.
The total investment approved for the six projects is
approximately US$30 million, of which roughly US$21
million had been incurred as of December 31, 2024.
Construction of the six projects began in 2024, and
they are expected to reach commercial operation in
2025.
Enel Generación Chile
Pangue Hydroelectric Modernization Project
The Pangue hydroelectric modernization project is
being carried out within the existing 466 MW power
plant in the Biobío Region of central Chile. Pangue is
a reservoir-based hydroelectric plant with two vertical
Francis turbine units that use water from the Biobío
dam.
The project involves replacing a turbine (Unit 1) with
a modern design that will improve efficiency and
reliability and require less maintenance. The new
turbine is expected to generate an additional 54 GWh
of power per year.
The total approved investment is approximately US$22
million, of which some US$7 million had been incurred
as of December 31, 2024. Work on the project site is
expected to begin in 2025, and the project will reach
an additional capacity in 2026.
Improvement of the San Isidro Power Plant
The San Isidro Power Plant is a combined-cycle
plant in the Valparaíso Region of central Chile. It has
two combined-cycle units (Unit 1 and Unit 2), which
are 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 recovering 15 MW for each
unit within the approved environmental permit.
The total approved investment is approximately US$26
million, of which approximately US$8 million had been
incurred as of December 31, 2024. The project started
in 2022, and Unit 2 reached an additional capacity
in 2023. Work on Unit 1 has been postponed and is
expected to reach additional capacity in 2025.
San Isidro Emissions Reduction
The San Isidro plant is a combined cycle plant located
in the Valparaíso Region in central Chile. It recently
obtained a new environmental permit to extend its
operational useful life until 2040. The project in Unit 2
will help the plant comply with the new emission limits
approved by the environmental permit, which also
allows the net installed capacity to be increased from
740 MW to 780 MW of gross installed capacity.
263
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Investments and financial situation
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
The project consists of installing a DeNOx selective
catalytic reduction (SCR) system in Unit 2, which
operates with a <25% ammonia solution injected
into the flue gases upstream of the SCR blocks. The
ammonia solution will be provided by trucks and stored
in dedicated tanks within a new building specially
designed for this purpose. The project is expected to
reduce NOx emissions from flue gases to 10 mg/Nm3
(with natural gas combustion), complying with the new
environmental permit.
The total approved investment is approximately US$30
million, of which some US$6 million had been incurred
as of December 31, 2024. The project started in 2024,
and we expect it to conclude in 2026.
Projects in development in 2024
The following projects are currently under evaluation
for development and are classified as "in development."
Each project will be decided on whether to proceed
based
on
anticipated
commercial
and
other
opportunities in the coming years, future tender
prices needed to meet the energy requirements of
the regulated market, and negotiations with existing
or potential non-regulated customers.
EGP Chile
BESS Modernization
The Company is planning to incorporate BESS storage
capacity at existing renewable generation plants,
including Azabache, Guachoi, Las Salinas (formerly
known as Sierra Gorda), Sol de Lila, and Valle del Sol,
with an aggregate storage capacity of 457 MW. The
BESS will be installed at each plant's existing project
site and connected to the grid using infrastructure.
Environmental approvals for each BESS are being
processed.
The
estimated
total
investment
is
approximately US$500 million, of which about US$1
million had been incurred by December 31, 2024. The
projects are expected to reach commercial operation
by the end of 2027 at the latest.
Cerro Los Loros Wind Farm and BESS
The Cerro Los Loros wind farm is located 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. It consists of 9 wind turbines
with a net installed capacity of approximately 7.8
MW each. The project will be built on approximately
1,900 hectares and connected to the grid through
the Talinay Oriente substation (220 kV). The land has
been secured, and environmental approval is being
processed.
The estimated total investment is approximately
US$150 million, of which around US$1 million had
been incurred by December 31, 2024. Construction is
expected to begin in the first quarter of 2026, and the
project is anticipated to reach commercial operation
by the end of 2027 at the latest.
Ovejera Sur Wind Project
The Ovejera Sur wind project is located in La Unión, in
the Los Ríos Region. It has a net installed capacity of
156 MW and consists of 20 wind turbines. The project
will be built on approximately 5,500 hectares and
connected to the grid through the new Pichirropulli
substation (220 kV). The land has been secured, and
environmental approvals are being processed.
The total estimated investment stands at approximately
US$220 million, with around US$1 million incurred by
December 31, 2024. Construction is anticipated to
commence in 2025, and the project is projected to
begin commercial operations by the end of 2027.
264
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Investments and financial situation
Investment and financing policy
The Ordinary Shareholders' Meeting, held on April 29, 2024, approved the Investment and Financing Policy for the
fiscal year 2024 as outlined below:
Investment policy
Investment areas
Enel Chile S.A. will make investments, as authorized
by its bylaws, that can enhance its commitment to
sustainable development through a business model
that creates long-term value while addressing
business aspects in a sustainable, innovative, and
circular manner. These investments will be developed
in the following areas:
I.
Contributions for investment or establishing a
subsidiary or related companies whose activities
are associated with energy in any form or supply of
public services, or whose primary input is energy;
II.
Investments involving the acquisition, operation,
construction, leasing, administration, marketing,
and disposal of various types of real estate, either
directly or through subsidiaries 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, 2024;
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,
2024, 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
To manage the investment areas in line with Enel
Chile's corporate purpose, the following procedure will
be implemented whenever possible:
I.
The shareholder meetings of the subsidiary and
affiliated companies will propose the appointment
of directors in accordance with Enel Chile's level of
participation. Ideally, these individuals should be
selected from the pool of directors or executives
of the Company or its subsidiaries, ensuring full
compliance with the Executive Committee’s
Resolution 667/2002.
II.
Subsidiaries will receive guidance 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.
265
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Investments and financial situation
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Financing policy
Financing and maximum debt level
The financing policy aims to ensure sustainable growth
financing by pursuing optimal funding alternatives and
prioritizing sustainable financing in accordance with
the Group's strategy. Likewise, the goal is to maintain
an Investment Grade rating to continue accessing
financial resources at a competitive cost and 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, 2024.
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 limits have
been previously 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
related to the specified essential assets.
Essential Assets permitting the
Company’s business operations
Maintaining control of Enel Generación Chile S.A.,
Enel Distribución Chile S.A., Enel X Chile S.p.A., and
Enel Green Power Chile S.A. (or its legal successor)
is essential for Enel Chile's operational effectiveness.
This control is achieved by holding a majority of shares
or by establishing shareholder pacts or agreements.
266
Protection and development
of natural capital
Preserving
natural
capital
and
biodiversity
is
essential in the Company's operational planning and
management. The objective is to promote sustainable
economic growth in the communities Enel Chile
serves and strengthen the Company’s position as
a leader in the energy market. The Enel Chile Group
incorporates the risks and opportunities assessment
related to natural resources into the Company's
decision-making processes and governance.
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
adheres to the Principles of Mitigation Hierarchy
throughout all project phases to avoid, minimize, and
restore impacts on natural habitats or threatened,
endemic, or restricted habitats and species.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
24%
Reduction of direct
greenhouse gas emissions
(Scope 1) with respect to
2023
14
Biodiversity projects at
operation sites
24%
Decrease in specific NOX
emissions respect to 2023
0.14 l/kWh
Water extraction intensity
(representing a 23%
decrease compared to
2023)
267
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
The Group’s
commitments
• Prohibition of entering 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.
Responsible management of water resources
Enel Chile adopts an integrated approach to optimally
managing and protecting water resources. Water plays a
crucial role in electricity generation, especially in thermal
power production, although the gradual transition to
renewables, particularly solar and wind, is decreasing the
Company's net water consumption.
• Preserving water quality: Optimal management
is concerned not only with the amount of water used
but also with the quality of the water after it has been
used in energy generation, whether in the turbines
or cooling operations. Water utilized in operations
is returned with the same quality as it enters the
energy generation process. Furthermore, following
treatment, discharges from the sanitary systems
are released into bodies of water while respecting
and complying with the quality and parameter
limitations defined in national regulations, as well as
the sanitary permits assigned for the operation. In
certain circumstances, treated water is recycled for
various uses, such as road dust control or irrigation.
• Strategic goals: Enel Chile continuously monitors
all its production sites located in water-stressed
areas to ensure that water resources can be
managed efficiently.
The Company's water management includes the
following analyses, aiming to ensure more efficient
resource management across all territories where it
operates, particularly in areas experiencing water stress:
• Mapping of production sites in water-stressed areas:
Identifying stress sites, taking into consideration the
criteria recommended by GRI 303 (2018) referred to
the World Resources Institute "Aqueduct Water Risk
Atlas."
• Identifying "critical" production sites located in
water-stressed areas that supply fresh water for the
Company's process needs.
• Permanent verification of the water management
methods used in the plants to minimize consumption
and maximize extraction from lower-value sources.
Total water extraction for 2024 was 4,055 million m3;
total water extraction from all water-stressed areas
accounted for 86.5% of the total. The production of fossil
fuel-produced energy during the last decade is due to
the extreme drought conditions that affect the country’s
central area.
Finally, in 2024, the Company obtained the Environmental
Qualification Resolution for the "Operational Continuity
of the Atacama Thermal Power Plant" project, which, in
addition to extending the plant's useful life, commits to
the implementation of passive filters for the seawater
adduction system. This device allows seawater used
for the plant's cooling system to enter at a low speed,
preventing the capture of smaller organisms and
significantly improving the management of impacts
associated with the use of water resources.
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
268
Pollutants and Residues
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
Management of the environment
The Enel Chile Group is dedicated to preserving
biodiversity, ecosystems, and natural resources.
To achieve this, it implements specific measures
throughout the entire value chain using a methodology
that identifies, manages, controls, and continuously
monitors environmental factors.
The Company has an organizational structure with high
standards and procedures that ensure the protection,
reduction, and mitigation of potential negative
impacts. The Integrated Management System (IMS),
a consolidated tool within the Company's processes,
enables the management of environmental variables
through performance indicators for reportability,
traceability, and transparency. These indicators
undergo annual audits.
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 2024, 20 Internal Audits were conducted, along with
the External Recertification Audit of the ISO 9001,
ISO 14001, and ISO 45001 standards, a process that
concluded without any identified Non-Conformities.
A
central
HSEQ
department—"Health,
Safety,
Environment, and Quality"—reports to the CEO and
is responsible for guiding, coordinating, and defining
the Environmental Policy supported by the transversal
HSEQ departments 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 to protect the climate.
Finally, 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.
Air quality
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
Pollutants
Enel Chile adopts the best
available techniques to reduce
pollutants
Waste reduction
Constant commitment to
reducing waste production, as
well as dening new methods of
reuse, recycling and recovery
from the perspective of a
circular economy
269
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Generation Segment
Before starting any new project, the Company conducts
environmental impact studies that thoroughly assess
the potential effects on ecosystems. The aim is to
avoid operating in areas with significant biodiversity
and to 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
country's legal and regulatory requirements and the
Company's voluntary environmental commitments,
which are communicated in the Environmental
Qualification Resolutions of each Project.
2024 Performance
In 2024, the environmental management area in the
generation business focused on implementing three
main concepts:
Regarding regulatory compliance, the 2024 work plans
continued to monitor internal commitments related
to environmental issues, adhering to the Company's
standards.
This
aligns
with
its
environmental
sustainability policies and ensures compliance with
the commitments outlined in the Environmental
Qualification Resolutions (RCA) for operational plants
and applicable environmental legislation.
Another central aspect of regulatory compliance
involves the activities related to the timely submission
of reportable information to the authorities, including
the RETC Reports (Registry of Emissions and Transfers
of Pollutants from the Ministry of the Environment) for
the Plants in the Operational stage and the Reports
Associated with RCA Commitments (Environmental
Qualification Resolutions), among others.
The
environmental
programs
developed
aim
to raise awareness about various issues, mainly
focusing
on
biodiversity
protection,
"reduction
of
water
consumption,"
"waste
management,"
and "dissemination of national and international
environmental commemorations." The primary goal
of these programs is to foster ongoing awareness
regarding respect and care for the environment
through activities designed for both internal staff
members and collaborators.
In 2024, the monitoring of environmental performance
across all facilities, the management of environmental
monitoring contracts, and the execution of strategic
environmental projects continued alongside support
for the various initiatives promoted by the Company
on a global scale through work and advice. Additionally,
the Company carried out KPIs related to environmental
events, as well as the completion of environmental
evaluations and inspections, along with the processes
to qualify suppliers in the environmental sector.
ACTIVITIES RELATED
TO REGULATORY
COMPLIANCE
DEVELOPMENT OF
ENVIRNMENTAL
PROGRAMS
OTHER ENVIRONMENTAL
MONITORING
PROCEDURES
270
Projects linked to
biodiversity
HSEQ's environmental area continued to develop a biodiversity program called
"Nature in Our Plants," aimed at promoting and safeguarding the biodiversity
surrounding the generating plants while showcasing the initiatives fostered by the
Company in this sector. Here are some of the most critical activities.
• Environment Restoration: In 2024, all actions initiated in 2019 continued in
collaboration with Foresta Nativa at the University of Concepción. These efforts
aim to transform the Bocamina thermoelectric plant ash dump into a native forest,
employing science and technology. The project covers an area of 10 hectares
and seeks to replicate a coastal Mediterranean sclerophyll forest, a reference
ecosystem that disappeared approximately 200 years ago in the region. So far,
the results are promising, with signs of soil recovery and improvements in the
water cycle, as well as vegetation.
• Research: In 2024, the Company continued the project to survey the arthropod
community in the La Escuadra property. This project, developed in partnership
with the University of La Serena, resulted in two scientific publications that
describe the Urophonius trewanke scorpion and the Pseudocleobis escuadra
spider, both new species to science.
• Development: In 2019, the Company began working with the local Company
Myotis Chile S.P.A.,. In 2024, the work continued, allowing the development of
Telebat, the first system in the world capable of automatic and continuous
remote sensing of bat activity in a wind farm. Now, the challenge is to develop a
deterrent system, which will be integrated into Telebat, allowing the evaluation in
real time of both the bat colony’s activity and the performance of the equipment.
• Dissemination: training through talks; dissemination of biannual newsletters
(EnelBioData) that systematize information on biodiversity associated with
plants in operation, allowing the establishment of indicators, evaluation of
trends, identification of critical points, promotion of good practices, and, above
all, dissemination of knowledge in an accessible format and language. Similarly,
the definition of flag species of flora and fauna that represent biodiversity was
developed alongside a logo that accompanied presentations, wallpapers, and
other forms of dissemination.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
Main projects and activities
As part of environmental management, some of the main projects and activities carried out by the Company in
2024 are detailed below.
271
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
In 2024, the Company continued to implement a waste management program
called "Zero Waste,” aiming to reduce waste generation by 89% and enhance
recovery to minimize the amount of waste sent to final disposal by 2030.
Alongside this program, the following activities are worth mentioning.
• Environment Week: In June, to commemorate International Environment Day,
the Company organized various activities across all lines of business, including
a recycling and orchard workshop to raise awareness among participants and
convey the concepts, goals, and importance of effective waste management to
minimize waste generation and boost recovery. Additionally, several generation
plants provided thermal cups to replace disposable ones, thus reducing the
production of this type of waste.
• Training: In 2024, the Company organized various training activities, including
hazardous waste management, the Extended Producer Responsibility Law (REP
Law), and internal waste management procedures. Nine training days were held,
involving 62 EGP&TGx employees and 315 contractors. Concepts related to
proper waste management were reinforced, covering regulatory aspects linked
to the sanitary authorizations needed for storage sites, transportation, and final
disposal locations, as well as maximum storage durations and reports submitted
to local authorities.
• Implementation of the REP Law: After signing the agreement with the Great
Management System Gransic ReSimple in 2024, the Company issued a monthly
report on the recycling of containers and packaging (plastics, aluminum, paper,
and cardboard) pertaining to the REP Law. This information helps achieve the
recovery goals set by the Ministry of the Environment, which advocates for
producers' recycling.
• Participation in the Expanded Battery Operating Committee: In 2024,
Enel's involvement in the Expanded Operating Committee for preparing the
Supreme Decree that establishes battery collection and recovery goals was
officially confirmed, a process led by the Ministry of the Environment.
• Local initiatives: In 2024, thermal and hydraulic power plants adopted
composting practices to reduce the organic waste generated at their facilities.
Additionally, some operational plants run a cigarette butt recycling program
that recovers a portion of the plastic from the filters to convert it into a new
sustainable material for the industry. This initiative lessens the impact of this
type of waste, which often pollutes the environment.
• Implementation of the Waste Recovery Program: In 2024, approximately
44 tons of non-hazardous industrial waste were recovered, and the recovery
of metal waste doubled compared to the previous year. Waste management
across all operating plants focuses on continuously searching for waste
recovery alternatives, with implementation handled by authorized managers for
this activity.
Waste management
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
272
Water management
• In 2024, the Company maintained the WAVE (Water Value Enhancement)
program, which aims to reduce water consumption throughout the electricity
production process and make the most efficient use of the resource in all
plants. The supervision/review of consumption is carried out on a quarterly
basis, and a specific target has been defined per plant that is applicable to
thermal and solar power plants. Electricity generation is related to water
consumption, and an annual accumulated value is generated. To contribute
to this goal, solar plants have implemented the dry panel cleaning process,
alternating it with wet cleaning. Some plants have implemented a system
called Tracker Night Parking, which permits the use of camanchaca water, a
particular humidity condition in the northern part of the country, specifically in
the Atacama Desert.
The primary focus of the work is the San Isidro Thermoelectric Power Plant,
which consumes the most water. As part of the project guaranteeing the
plant's operational continuity until 2040, the Company has committed to
optimizing water resources, significantly reducing groundwater consumption,
and preventing the discharge of liquid waste into the Aconcagua River.
Compliance with the Emission Standard
for thermoelectric power plants
In August 2024, the Superintendence of the
Environment (SMA- Spanish acronym) published
compliance verification reports for the 2022 annual
period regarding the limits established in Supreme
Decree No. 13/11 on Emission Standards for
thermoelectric power plants. In this context, 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 the
"Thermoelectric Power Plants System."
Green tax
In 2024, the Company paid the tax established for
sources producing PM, NOx, SO2, and CO2 emissions
from thermoelectric plants. The quantification of
emissions for the green tax payment was carried
out according to the methodology approved by the
SMA. In 2023, US$15,513,031 was paid in April 2024.
This year's payment represents 60% of the amount
from the same period last year, a change attributed
to the cessation of operations at the Bocamina Plant
and the exclusion of tax payments for the Huasco
and Tarapacá plants. Additionally, due to a regulatory
change, emissions from generator sets have been
included in the tax payment for the first time.
Finally, for the first time in the country, Enel Generación
Chile, with support from Enel X, achieved the first
emission offset under Chile's Emission Offset System
framework. This initiative involved a formal request to
the Superintendency of the Environment (SMA) to offset
83,271 tons of CO2 for the Quintero Thermoelectric
Power Plant. To accomplish this, emission reduction
certificates were obtained from Hidromaule S.A.
This achievement made the Enel Group a pioneer in
operating the new Chilean Emission Compensation
System, exploring the potential to create a new
product or service for Enel Group's customers in Chile
as part of the integrated offering.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
273
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Main projects and activities
To guarantee effective environmental management in the Company's operations,
control significant environmental aspects, minimize environmental impacts, and
comply with current regulations, the following activities were carried out in 2024:
• A total of 3,038 environmental inspections were conducted on activities
and facilities, reviewing aspects such as documentation (environmental
procedures and permits), emergency management, workplace safety, water
and soil protection, waste management, hazardous substance management,
atmospheric emissions, noise, and biodiversity. Deviations were reported and
monitored as non-conformities within the integrated management system.
• Three Extra Checks on Site (ECoS) environmental audits were conducted on
Enel's operating units (P&M, Chacabuco, and Cordillera) and three environmental
assessments on contractor companies (Clever Group, Dominion, and Lari). These
audits were performed by the environmental team within the technical line
company. The scope of these audits includes a documentary review and on-site
observation of their implementation to verify environmental legal compliance,
Operational Control
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Distribution & grids segment
Enel Distribución strives to significantly contribute to
the city's sustainable growth by implementing tangible
initiatives that promote a culture of circularity, actively
reduce carbon emissions, and protect biodiversity
alongside its operations.
The company is responsible for identifying, monitoring,
and managing potential environmental consequences
arising from its electric power distribution operations.
Environmental
emergencies,
waste
generation,
pollution, dust, and gas emissions are key components
of the monitoring that results from the operation of
grids and substations.
Environmental inspections are periodically conducted
on various construction, operation, and maintenance
activities, as well as the facilities and those of the
contractor companies. The aim is to verify compliance
with legal and environmental requirements as required
by the competent authorities and the Company's
environmental standards.
A significant milestone for environmental governance
within Enel Chile's distribution and grids segment is
the Environmental Improvement Committee, which
includes participation from General Management and
its first line. This committee reviews the progress of
the annual environmental plan and promotes projects
and actions aimed at enhancing the company's
environmental performance.
2024 Performance
In 2024, the Company organized its main focal points for action and environmental management activities based
on three pillars: operational control and regulatory compliance, environmental improvement plan, and leadership,
culture, and training.
OPERATIONAL
CONTROL AND
REGULATORY
COMPLIANCE
ENVIRONMENTAL
IMPROVEMENT PLAN
LEADERSHIP,
CULTURE AND
TRAINING
274
manage the impact of significant environmental aspects of operations to
minimize environmental risks, and assess procedures at the Enel Group level
and their operational implementation, identifying critical issues and areas for
improvement. The detected deviations were reported and monitored as non-
conformities within the integrated management system.
• The monthly monitoring of contracts classified as high and medium
environmental risk has improved, considering the permitting of contractor
companies' facilities. This permitting includes requirements such as the relevant
commercial license, a favorable health report, a qualified technical evaluation,
permits for the collection of both hazardous and non-hazardous waste as
appropriate, and environmental noise reports with a maximum validity of five
years. Additionally, the permitting process for activities has been incorporated,
emphasizing the need for authorizations related to the transport and disposal
of waste. Furthermore, the control over environmental reporting has been
enhanced to ensure compliance with deadlines and documentation while
improving the traceability of hazardous waste generated by operations.
• In 2024, we attended to and documented 88 environmental events, of which
37.5% were near misses (events that did not result in direct environmental impact,
such as the spillage of dielectric oil in a confined and impermeable area). The
remaining 62.5% accounted for minor incidents that were addressed promptly,
with immediate corrective actions taken (for example, cleaning the soil affected
by an oil spill to control and mitigate potential environmental impact).
To enhance the Company's environmental performance and address critical
environmental aspects, the following projects have been created:
• Asbestos: In 2024, steps were taken with the SEREMI of Health to revise the
sanitary resolutions that permitted the removal and proper disposal of fireproof
tapes containing asbestos found in underground chambers. A new inventory
was launched for older feeders that might have asbestos in the fireproof tapes.
Furthermore, the management of a storage facility for this hazardous waste was
initiated.
• SF6 gas: The management of MV equipment with SF6 removed from the
network has been finalized and documented. This includes the disposal or
recycling of recovered SF6 gas, which is ultimately handled by an authorized
company. The company ensures the traceability of the recovered gas and
monitors for possible leaks.
• Hazardous waste: A hazardous waste warehouse has been acquired, and its
storage permit is currently being managed.
Environmental
Improvement Plan
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
275
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
To raise environmental awareness and knowledge among all company personnel
and contractor companies, the following activities have been developed:
• Leadership is made visible by involving front-line employees in monitoring
environmental issues and the performance of contractor companies. This
involvement occurs through the Environmental Improvement Committee,
integrated safety and environmental briefings, evaluation groups, and
management walks.
• Environmental culture and training were reinforced through targeted programs
for crews and internal staff, monthly meetings with those responsible for
environmental issues in contractor companies, and biweekly activities aimed
at strengthening commitment to environmental concerns. These included
the "Committed to Health, Safety, and Environment" (internal) initiative and
the Weekly HSE Talks within contractor companies. Additionally, throughout
2024, integrated safety and environmental training was conducted to enhance
inspectors' skills in using the new inspection forms and the recently implemented
mobile application (E-Site Controller).
• Organization of a webinar on the Economic and Environmental Crimes Law,
hosted by the company Mejores Prácticas (Best Practices), aimed at enhancing
the understanding of all Enel Distribución internal staff about the implications of
this regulation in the business sector.
Similarly, projects were created that aimed to visibly drive the Company's cultural
shift toward achieving environmental goals:
• Waste management: A series of projects was implemented for the sustainable
management of non-hazardous waste generated by the distribution business's
operations, focusing on circular economy models, achieving a 99.8% recovery
rate, among which the following stand out:
• Poles removed from the grid. The development of the pole recycling pilot
project within Enel's daily operations led to 46% of all poles removed from the
network being sent to a final disposal site with sanitary authorization, allowing
for the recovery of the iron frames and concrete, which are used to manufacture
steel and recycled aggregates. Meanwhile, as the various poles were taken from
the network, they were transported to another authorized final disposal site for
backfilling.
• The Reverse Logistics Process facilitates recovery, traceability, and a circular
economy by reclaiming and reusing waste removed from the network during
expansion and maintenance activities, including materials such as copper,
aluminum, iron, and cardboard.
• Debris, earth, and stones. We also worked on recovering 100% of the earth
and stones, coining the concept of Backfilling.
• Urban Biodiversity—Phytosanitary Study of Urban Trees. Following the
extraordinary weather event in August 2024 in Santiago, 825 trees in six of the
city's most affected districts were examined to assess their phytosanitary status,
connection to the electrical infrastructure, and the damage sustained after the
storm.
Leadership, Culture, and
Training
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
276
Enel X Chile
For Enel X Chile (hereafter Enel X), the commitment
to protecting the environment arises from the belief
that mitigating risks and fostering responsible
behavior are vital to ensuring its well-being and that
of future generations. The battle against climate
change, environmental protection, and sustainable
development are crucial considerations in designing
Enel X's products and services in line with the principles
of the circular economy.
Each Enel X product or service must meet the
Company's circularity criteria, such as identifying
the origin of the materials, exhibiting greater
efficiency compared to similar products, permitting
the extension of their useful life through innovation,
and proposing increasingly circular and sustainable
solutions. The emphasis is always on incorporating
clean technologies into the market that significantly
reduce CO2 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 focuses on conveying this
message to on-site employees and has consequently
implemented six vital strategic principles:
One pertinent element concerning contractors'
environmental management was the necessity of
meeting fundamental environmental requirements
before commencing fieldwork, thereby ensuring
proper environmental management from the outset.
Similarly, efforts have been undertaken to reinforce the
requirements outlined in the Projects' Environmental
Management Plans, which are subject to ongoing
monitoring. In accordance with this work, on-site
environmental inspections continue, and efforts
are being made not only to increase the number of
inspections but also to improve their quality. To this
end, both internal and external staff members have
undergone additional environmental training and
onboarding. All of these activities aim to make the
contractors' environmental management a standout
feature of Enel X.
Main activities
During this period, several participatory activities
focused on environmental awareness were conducted,
including these:
Environmental
Awareness
• During Environment Week, the Company collaborated with different business
lines to organize activities on environmental issues under the tagline "If the earth
changes, we change too.
• Looking for additional ways to stimulate and impact awareness of environmental
and safety issues at work sites, a Podcast was produced, providing a forum for
discussion and reflection. Employees from contracting companies were invited to
share their experiences and learning in the field. This initiative seeks to reach more
individuals by addressing the issues in a straightforward manner.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
Environmental
awareness
Document
management Training
Reports and
indicators
Circular Economy
and Urban
Biodiversity
Environmental
management
of contractors
277
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Regarding
monitoring
environmental
variables,
particularly the Ministry of the Environment's Huella
Chile Program, we obtained the seal for identifying
and detailing our greenhouse gas emissions in 2022.
In 2023, we went one step further as we successfully
proved a reduction in our emissions.
In October 2024, the Ministry of the Environment
rewarded Enel X with a Reduction Certificate from
the Huella Chile 2024 Program. This award is given
as a consequence of lowering our carbon footprint.
As a result, the Company takes another step
ahead in this government program, which aims to
promote the calculation, reporting, and control of
greenhouse gas (GHG) emissions in public and private
sector organizations, proving its dedication to the
environment and sustainability.
Finally, to wrap up the work done in environmental
management at the end of the year, the Company
continued the initiative launched in 2021. Its goal is to
recognize the contractor companies that stood out
during the year for their progress and commitment to
Enel X's environmental policy and value the contractors'
environmental initiatives. This project is a significant
instrument for providing positive reinforcement to
partners in these areas.
Furthermore, Enel X has maintained its Environmental
Management System certification under the ISO
14.001 standard since 2020.
Innovation in the Generation Segment
Enel Chile identifies innovation as a key differentiator
that improves its competitive advantage within the
generation market. Consequently, the Company
seeks to maintain and strengthen its leading position
in this area by operating in a systematic, organized,
and cross-functional manner in alignment with the
Company's strategic plan.
In 2024, a primary emphasis was placed on the
integration of advanced technologies to facilitate
the energy transition process. This included the
use of robotics and digitalization to innovate
energy production methods. Key initiatives involved
harnessing the benefits of marine energy, hybridizing
energy production systems, and advancing the
generation of green hydrogen as an emerging energy
vector. The exploration of innovative technologies for
maintenance procedures was identified as a critical
area of focus.
Another challenge identified was the need to maintain
operational continuity by adopting innovative digital
and semi-automatic solutions for tasks that were
previously conducted in-person or manually.
[NCG 461 - 3.1 v]
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
278
Principal projects 2024
Direct Lithium Extraction & Geotérmica
This project aims to test new technologies for extracting low-concentration lithium from the brine of a
geothermal plant. This sustainable method of lithium extraction uses the same wells as the geothermal
plant. Before reinjecting the geothermal fluid, we will assess direct lithium extraction technology to adapt
and validate this approach. This will enhance the value of the fluid used for energy production and lithium
extraction for commercialization.
Test Bench Solar
New solar panel technologies are continually assessed and tested, especially in high-radiation regions like
Chile. This method employs standard approaches to evaluate the performance of various module types
and compare them with those from different suppliers to maximize energy output, thus improving the
operations and maintenance of solar plants.
Curtailment minimization
Enel, like other energy companies, has struggled to inject all its renewable energy generation due to
grid restrictions. The rapid growth of wind and solar plants has not kept pace with the grid's expansion,
resulting in energy being wasted when it cannot be delivered to the grid. This is why various initiatives are
underway to utilize the energy that cannot be fed into the grid by seeking new electrical consumption-
whether traditional or innovative- to capitalize on the reduction of renewable energies, based on
technological availability and the need to lower emissions in the respective industry.
Long Duration Storage Systems
Energy storage has gained significance in Chile and globally due to the rapid expansion of variable
renewable energy sources. The use of lithium batteries for storage has increased, but they face cost-
efficiency limitations, with typical storage durations of only 2 to 4 hours. Consequently, the Company has
been researching and testing new, non-lithium technologies for long-duration energy storage. Recent
advancements in energy storage using CO2 have emerged, enabling energy production through the
compression and expansion of CO2 via a steam turbine, facilitating energy delivery lasting 8 to 10 hours.
Comprehensive studies and analyses are underway to test this technology in Chile in the near future.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
279
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Innovation in the Distribution and Grids Segment
Most important activities and projects in
2024
In 2024, Enel Distribución Chile, as part of Enel Chile
and managed by the Network Business Opportunities
Development (NBOD) area, increased its commitment
to technical innovation and strategic engagement
with universities and public and private organizations.
These programs seek to establish Enel Distribución
as a pioneer in energy transformation with a positive
impact on sustainability, operational efficiency, and
community engagement.
In terms of electrification and climate change mitigation
initiatives, Enel Distribución Chile has increased its
strategic focus on projects that not only contribute
to the energy transition but also provide opportunities
for external financing through collaboration with
international organizations. One significant milestone
in 2024 was the agreement with the Development
Bank of Latin America and the Caribbean (CAF) to
establish a three-year revolving credit line (2024-
2027). This agreement, which is consistent with the
CAF's policy in Chile, seeks to promote projects
that encourage decarbonization, boost access to
renewable energy, and strengthen adaptation capacity
when confronting climate change. Enel Distribución
Chile, as part of Enel Chile, has structured specific
proposals to allocate these resources, highlighting
initiatives such as grid reinforcement and smart meter
development, electrification with renewable sources,
and grid digitalization, all of which contribute to
improving grid resilience, thereby consolidating the
Company's leadership in developing a resilient and
sustainable electrical system.
Below, we present the most important activities carried
out in 2024.
Alliance between Enel Distribución Chile and Adolfo Ibáñez University
Development of the VisionDERRED Project at Enel Distribución Chile
In 2024, Enel Distribución Chile, in collaboration with Adolfo Ibáñez University (UAI) and with funding
provided by the FONDEF program, made significant progress on the VisionDERRED project. This strategic
initiative aims to optimize the integration and operation of distributed energy resources (DER) in smart
electrical grids. This project aligns with sustainability, digitalization, and energy transition objectives,
improving the electrical system's resilience and maximizing the use of renewable energies.
VisionDERRED's primary purpose is to develop advanced solutions based on emerging technologies,
such as artificial intelligence (AI) and predictive models, to improve the DER’s interaction with distribution
grids. This approach permits us to optimize the use of these resources, guarantees grid stability, and
contributes to the decarbonization of the energy matrix.
Main Objectives of the VisionDERRED Project
1. Intelligent Monitoring: Implement an advanced system that allows real-time monitoring of the
performance of distributed energy resources, such as renewable generation and storage, providing key
data for their efficient operation.
2. Grid Optimization: Develop tools and methodologies to manage DERs in an integrated manner,
minimizing technical losses and maximizing grid flexibility.
3. Incorporating Renewable Energies: Encourage the use of distributed renewable sources, reducing
dependence on fossil fuels and promoting a sustainable energy transition.
[NCG 461 - 3.1 v]
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
280
4. Improving Grid Resilience: Ensure that the integration of DER increases the electrical system's
responsiveness to extreme weather events or high-demand conditions.
Proposed impact of the VisionDERRED Project in 2024
• Strengthening Operational Efficiency: VisionDERRED has helped identify opportunities to optimize
grid operation with high penetration of distributed resources, significantly improving the reliability of
the electricity supply.
• Reducing Technical Losses: The project's initial phases have yielded promising results, with a
projected reduction in technical losses due to better integration of distributed resources.
• Boosting Digitalization: The integration of advanced tools in VisionDERRED marks a vital step towards
modernizing Enel Distribución Chile's grids, consolidating its position as a leader in technological
innovation in the electric sector.
• Strategic Academic Collaboration: The partnership with Adolfo Ibáñez University has been essential
for integrating cutting-edge technologies and training professionals who specialize in operating
smart grids and distributed resources.
Related Projects in 2024
In addition to VisionDERRED, Enel Distribución Chile has developed complementary projects that
reiterate its commitment to innovation and sustainability:
1. Colina Digital: An emblematic pilot that completely digitized grid management, integrating
technologies such as digital twins and smart meters to optimize operations and improve supply
quality.
2. Virtual Energy Plant (PEV): This project connects distributed generation and energy storage in a
virtual system, increasing the electrical grid's flexibility and responsiveness in critical events.
Vision for the Future
The progress achieved in VisionDERRED in 2024 reaffirms Enel Distribución Chile's commitment to
innovation and the energy transition. By 2025, we expect to consolidate the developed tools and scale
their implementation nationwide, laying the foundations for more resilient, sustainable, and future-
oriented grids. This project represents a key pillar in Enel Distribución Chile's strategy to transform the
electric sector, leveraging digitalization and the integration of renewable energies as drivers of change.
Alliance between Enel Distribución Chile and Universidad San Sebastián
The development of projects focused on smart grids and energy sustainability marked a milestone in 2024.
• Project Design and Development of Smart Microgrids for the Electric Power Distribution System’s
Reliability: This project culminated in the installation of a pilot microgrid for PMGD in Lampa, integrated
with advanced technologies for frequency management, voltage control, and autonomous decision-
making during critical events. The system, supported by artificial intelligence, increased grid stability and
the participation of renewable sources.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
281
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Alliance between Enel Distribución Chile and Federico Santa María Technical
University (UTFSM)
The collaboration project with UTFSM and its High Voltage Laboratory continued to make significant
advances in applied innovation:
• Bio-Inspired Measuring System (BMS) Project: In its pilot phase, this bio-inspired measurement system
successfully monitored more than 50 critical transformers in the Enel Distribución grid in real time,
improving early fault detection. The full implementation is forecast for 2025, with expected results in
optimizing predictive maintenance and substantially reducing corrective costs.
Perspectives for 2025
Enel Distribución Chile, through NBOD, plans to scale these projects, expand the integration of advanced
technologies, and consolidate its leadership in energy innovation, reaffirming its contribution to a more resilient,
sustainable, and efficient grid.
These initiatives confirm Enel Distribución's commitment to operational excellence and its role as a driver of
technological development in the Chilean electric sector.
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
282
Digitalization
Enel Chile is undergoing a digital transformation of
its entire value chain management, developing new
business models, digitizing its processes, integrating
systems, and adopting new technologies.
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 aims to incorporate its digital solutions
into one of the three concepts:
• 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—Implement different digital solutions to
enhance the operation of the business, especially of
Enel X Chile, improving the product offer to the end
customer.
• Assets—Implement digital tools to build wind, solar,
and other non-conventional renewable energy
plants in their design, engineering, construction,
and plant life phases and optimize the management
and maintenance of generation plants and the
distribution grid.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
Assets
People
Cloud
Platform
Cybersecurity
Customer
DIGITAL IMPACT
DATA DRIVEN
283
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Cybersecurity
The Enel Group has established a comprehensive
cybersecurity action and management model that
encompasses all of its companies, including Enel Chile.
This initiative receives strong backing from senior
management and involves the active participation of
all corporate business areas along with the individuals
responsible for designing, managing, and operating
computer systems.
Enel Chile maintains a dedicated global cybersecurity
unit that operates under the direct oversight of the
Chief Information Officer (CIO) and is supervised by
the Chief Information Security Officer (CISO). This
team is responsible for overseeing, coordinating, and
controlling cybersecurity matters and developing
strategies, policies, and guidelines that align with
current regulations. This approach promotes swift
decision-making on a global scale pertinent to Enel
Chile, improving response times in an environment
where agility is crucial.
The cyber risk management model deployed by Enel
Chile incorporates risk analysis as a fundamental
component supporting all strategic decisions made
by the company. The cyber defense model employs a
standardized methodology applicable to all computer
systems. This approach enables the identification,
prioritization, and quantification of cybersecurity risks
associated with the use of 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, considering the proper mitigation measures
depending on the nature and magnitude of the risk.
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk-based
approach to
cybersecurity by
design
Cybersecurity
strategy
Cybersecurity risk
Assessment
Treatment of
cybersecurity risks
Cybersecurity
engineering, design
and implementation
Identity
management and
access control
Cybersecurity
awareness and
training
Cybersecurity
assurance
Reacting to
cyberemergencies
284
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 Group's members, i.e., workers, and assets
(plants, infrastructures, IT and OT Objects, and, in
general, any essential device for the Group's business).
When CERT identifies any information security risk
or incident, it assesses and categorizes it based on
its severity. If the incident escalates into a crisis that
jeopardizes business continuity, Company profitability,
or reputation, we promptly implement necessary
actions in line with established crisis management
and security emergency protocols. Incidents are
categorized using a specific impact matrix (Enel
Cyber Impact Matrix), rated on a scale from 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,
and so 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.
2024
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 customers and employees affected by Level 4 cybersecurity incidents.
Cybersecurity education, training, and awareness
The Group launched the first cybersecurity awareness
plan at the end of 2015. Today, it is a permanent and
ongoing initiative designed to foster a culture of
cybersecurity to enhance defense against threats and
attacks targeting human vectors.
The primary 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.
• Communicate and create campaigns to raise
cybersecurity concerns and awareness and respond
accordingly.
In 2024, Enel Chile conducted a series of training
activities and made several awareness events available
to employees to address cybersecurity issues.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
285
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Main 2024 initiatives
• Presentations were given throughout the year, concentrated in October (the
Company's designated cybersecurity month).
• Ongoing training through the Company's training platform.
• Simulation exercises for phishing campaigns and attacks on the Company's vital
infrastructure
Personal data protection
The European Union's General Data Protection
Regulation (GDPR) imposes compliance obligations
on the Enel Group by establishing a Data Protection
Office, which must ensure professional autonomy and
independence.
Although the aforementioned regulation does
not apply in Latin America, the Enel Group has
decided to elevate the standards of personal data
protection in each of its subsidiaries, exceeding
local regulations to ensure the rights and freedoms
of its customers, employees, suppliers, and all
others whose personal data the Company must
process for various reasons.
The recent amendment to the Chilean Law on the
Protection of Private Life (Law No. 19628) through Law
No. 21.719 introduces new regulations concerning
the protection and processing of personal data.
This amendment also establishes the Personal
Data Protection Agency, aligning the standards in
this domain with those of the European Union. The
upcoming law, set to take effect on December 1, 2026,
signifies a significant shift in the approach to the
matter in Chile. It is imperative to initiate preparations
for its implementation at this stage. The creation of a
data protection authority is an important milestone,
accompanied by a comprehensive framework for
infractions and sanctions. This framework delineates
the responsibilities of both data controllers and
processors, prioritizing the rights of data subjects.
Additionally, it includes regulations regulating the
international transfer of data, among other pertinent
issues.
Enel Chile continued its efforts in 2024 to implement
the compliance strategy established in previous
years, aimed at facilitating adherence to the new law's
requirements. This plan includes the appointment of a
Data Protection Officer (DPO) who will collaborate with
the holding DPO office. The DPO will report directly to
senior management in Chile through the Executive
Committee, which convenes monthly. Additionally,
the DPO will work with various management teams,
particularly those focused on cybersecurity and
information security, to establish the Security
Committee.
The DPO supports the CEOs of various Enel
companies in Chile and their operations, ensuring
that processes align with the principles of privacy
by design and by default. The DPO is responsible
for defining policies and operational instructions for
the proper protection of personal data processed
within the Group, including data protection in codes
of conduct and security measures regarding third
parties to whom Enel Chile entrusts the processing
of personal data. They oversee contractual design
to ensure that all company documentation includes
essential aspects of privacy. Additionally, the
DPO is responsible for raising awareness among
employees
about
the
importance
of
proper
personal data processing through training and
dissemination activities, and they manage security
incidents affecting personal data in conjunction with
cybersecurity and information security functions.
This function also serves as a point of contact for
managing claims and requests from data subjects,
Data Protection Authorities, and other market
participants.
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
286
The
personal
data
protection
compliance
plan outlines the assignment of functions and
responsibilities related to the management of
personal data and the application processing of
such data within the first and second lines of each
Company. It also includes a specially designed
register that encompasses all data processing
activities carried out by the Group and requires
periodic updates. It's important to note that
adherence to security and data protection policies
and controls applies to all employees and third-
party contractors of Enel Chile.
Data processing activities that pose more significant
risks are subject to an impact assessment regarding
the potential consequences of their breach on the
rights and freedoms of data subjects, an evaluation
carried out using methodologies aligned with
international standards.
Additionally, the Company has established channels
for personal data holders to exercise their rights,
which are fully developed to enhance and adapt to
the previously mentioned regulatory requirements.
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 as long as the
customer does not revoke their consent or object to
their data being processed for commercial purposes
in the second case.
• There were no complaints about breaches of
physical or cyber security rules or regulations.
• There were no substantiated complaints
about customer privacy violations nor
identified cases of leakage, theft, or loss of
customer data.
Circular Economy
In a global context where circularity barely reaches 7.2%
(Circularity Gap Report 2024), Enel adopts the circular
economy as a paradigm to rethink its development
model.
This
strategy
integrates
innovation,
competitiveness, and sustainability to tackle current
environmental and social challenges. It has been
systematically implemented within Enel over several
years, fostering collaboration and contributions from
external stakeholders.
Enel's strategy focuses on the reevaluation of the
business across the entire value chain, from design
and procurement, seeking not only environmental
and social benefits but also clear economic paybacks
through:
• New revenue through the recovery of asset and
material value and the development of new services
• Cost and risk reduction through redesign, the use of
circular inputs, and the preservation of asset value;
• Innovation is driven by the continuous improvements
demanded by the circular economy.
The circular economy at Enel is structured around five
fundamental pillars, which are integral to all of Enel's
activities in Chile, positioning it as a catalyst for its
sustainable business model:
Circular inputs: production and usage models based
on renewable inputs or inputs from previous life cycles
(reuse and recycling).
Product as a service: a business model in which
the customer purchases a service for a limited time
while the Company retains ownership of the product,
thereby maximizing the usage factor and the product's
lifespan.
Exchange platforms: shared use among multiple
users of products and goods.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
287
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Lifespan
extension:
design
and
management
approach of an asset or product aimed at extending
its lifespan, for example, through modular design, ease
of repair, and predictive maintenance.
End-of-life valorization: any solution aimed at
preserving the value of an asset at the end of its life
cycle through, in synergy with the other pillars, reuse,
regeneration, upcycling, or recycling.
This model aims to reduce natural resource
consumption and the associated environmental and
social impacts, strengthen business competitiveness
by decreasing dependence on virgin raw materials,
and mitigate geopolitical and price risks.
Since 2020, Enel Chile has been implementing a
specific action plan focused on managing cultural
change, driving the ecosystem, transforming the value
chain, and monitoring through circularity metrics.
In 2024, Enel Chile primarily focused its actions on the
following areas of work:
• Linkage and promotion of the ecosystem;
• Spaces for exchange and analysis with key
stakeholders
• Transformation of the value chain
• Circularity metrics.
Linkage to and promotion of the ecosystem
The circular approach is open by its very nature. It seeks 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.
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
E
X
T
E
N
SI
O
N
O
F
U
S
E
F
U
L
LI
F
E
P
R
O
D
U
C
T
A
S
A
S
E
R
V
I
C
E
S
U
S
T
AI
N
A
B
L
E
I
N
P
U
T
S
E
N
D
O
F
LI
F
E
V
A
L
U
A
TI
O
N
O
F
T
H
E
S
H
A
R
E
CI
R
C
U
L
A
R
D
E
SI
G
N
V
A
L
U
E
R
E
C
O
V
E
R
Y
IN
C
R
E
A
S
E
D
S
E
R
VI
C
E
LI
F
E
288
Main initiatives
• Photovoltaic module recycling studies: In collaboration with Fundación
Empresarial Eurochile, Enel Chile promoted various studies on module recycling
in 2022 and 2024. The studies addressed topics such as the technical challenges
of recycling, mapping and analysis of the value chain, and the identification of
key players. It also succeeded in convening and forming a working group with
potential interest in participating in the recycling module in Chile. The project
included technical visits and a mentoring process with European counterparts.
• Applications for public funds: Enel actively participates in various initiatives to
connect with public and private players. It aims to establish itself as a strategic
partner when applying for competitive funds and financing programs for
recycling and reuse projects. Through these strategic alliances, Enel mobilizes
technological and human resources, sharing its extensive experience and
expertise in the energy sector and in implementing sustainability projects. This
collaborative approach enables Enel not only to contribute its knowledge and
capabilities but also to benefit from the know-how and best practices of other
players in the ecosystem, thus maximizing the positive impact and scalability of
the projects implemented.
• Agreement with Universities: Enel, committed to the circular economy
and resource optimization, has signed an agreement with the University of
Antofagasta to address the challenge of degrading photovoltaic modules
in northern Chile. The collaboration aims to develop a semi-automated,
computationally intelligent system for inspecting discarded modules. This
project seeks to streamline and standardize the evaluation process, enabling
the identification of modules suitable for a second life before recycling, thereby
optimizing their value and contributing to the sustainability of the photovoltaic
industry in the region.
Opportunities for dialogue and analysis with key stakeholders
To promote the comprehensive and sustainable
management of photovoltaic panel waste, Enel
developed a dual strategy that included dialogue
with the government to establish a robust regulatory
framework and engagement with key players in waste
recovery management.
• Opportunities for dialogue and collaboration:
In 2024, Enel actively participated in roundtable
discussions with authorities to promote its strategy
and experience in the circular economy, placing
special emphasis on the recycling of photovoltaic
panels and its connections to health, customs,
and environmental legislation. These dialogue
opportunities aim to contribute to building a
robust regulatory framework that supports the
implementation of sustainable waste management
solutions in accordance with the principles of the
REP Law (Extended Producer Responsibility) and its
regulations.
• WEEE market-based strategy: In 2024, Enel
prioritized dialogue with relevant stakeholders
in managing and recovering Waste Electrical
and Electronic Equipment (WEEE), particularly
concerning photovoltaic modules, as part of its
commitment to the circular economy. These
strategic conversations provided us with detailed
insights into the national-level capacities, strategies,
and plans of companies in the sector and the
secondary market for raw materials, fostering a
valuable exchange of information to develop a
comprehensive approach in this area.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
289
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Transformation of the value chain
Enel Chile is transforming its approach to building a
sustainable value chain by integrating the principles of
the circular economy at every stage, from procurement
to end-of-life management of its assets. This strategy
promotes the adoption of practices that optimize
resource use and minimize environmental impacts,
aiming for circularity in every phase of the life cycle.
In this context, the acquisition of products and services
prioritizes circularity with the goal of maximizing
resource reuse, recycling, and valorization.
Some of the highlighted initiatives and projects are:
Distribution and Grids Enel Chile, through its subsidiary Enel Distribución Chile, has established a global action plan to reduce
emissions by 55% by 2030, halve the consumption of virgin materials, and generate economic benefits such
as savings or new revenues. In 2024, this strategy was executed through the organization of the following
activities.
Sustainable Infrastructure
This model aims to develop a new distribution infrastructure that reduces material consumption, minimizes
waste generation, and lessens impacts on the community and environment. In this context, a comprehensive
community relations program and the integration of sustainable initiatives have been applied in several
critical grid construction projects. These initiatives include using concrete with artificial aggregates (slag)
and photocatalytic additives, installing concrete posts made with recycled aggregates, and researching
sustainable materials for filling trenches in the construction of underground lines.
Grid Mining
Enel Distribución Chile aims to increase the value of disused materials through a Grid Mining approach, in
which most metal is recovered via a reverse logistics system and subsequently sold in the market. The efforts
from previous years continue to maximize the recovery of transformers, conductors, and medium- and low-
voltage cables, as well as other metallic materials. This is achieved by collaborating with suppliers to ensure a
traceable and sustainable closure of the materials cycle. As a result, it has been possible to recover over 700
tons of materials from the grid, including cables, conductors, transformers, and metal scrap.
Social circular economy
In line with the principles of the circular economy, the Company incorporates sustainable inputs and new
life cycles into community project management, constantly seeking to create a positive impact on people,
territories, and the environment. In 2024, nearly 2 tons of wood from Enel Chile operations and other local
players were revalued to supply the "Let's add energy for climate action" and "renewable energy workshop
in critical areas" projects. Technical capacities were also installed to develop green jobs for a local circular
economy.
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
290
Generation
NewLife Program
Similar to previous years, the NewLife program has continued, remaining a key initiative for Enel Chile. The
program focuses on reusing and valorizing disused equipment, materials, and supplies from Enel Generación's
various assets. In addition to optimizing internal resources, NewLife aims to give these elements a "new life,"
thereby extending their useful life cycle and minimizing waste generation. This approach aligns with the
principles of the circular economy by promoting resource efficiency and reducing the need to extract new
raw materials.
The program operates in three main phases:
Preliminary analysis: Each country's Operation and Maintenance Improvement (OMI) area prepares an
exhaustive study of every plant’s warehouse and equipment, classifying and prioritizing them according to
criteria such as their residual life, possible alternative uses, and potential destinations.
Development of opportunities: Through innovation and teamwork, we identify new opportunities to valorize
equipment and spare parts, creating and registering ideas in an opportunity matrix.
Management and monitoring: Identified opportunities are managed and monitored. Depending on each item's
viability and value, this may include reuse within the Company, sale to third parties, donation to institutions, or
treatment as scrap.
Valorization of coal-fired power plant assets:
Enel Generación Chile has demonstrated that the closure of coal-fired power plants can create economic and
environmental value. In light of the closure of its Tarapacá and Bocamina plants, the company has identified
several innovative strategies to optimize existing assets. These strategies include analyzing land and facility
purchase agreements, reusing equipment in other operations, establishing new businesses based on existing
infrastructure, and managing waste efficiently. These actions have not only enabled the recovery of economic
resources but have also contributed to environmental sustainability by minimizing the impact of dismantling
and promoting a circular economy. The case of Enel Chile sets a significant precedent for the energy industry,
illustrating that it is feasible to merge the transition to cleaner energy sources with effective and sustainable
practices.
Enel X
Wood Stove Replacement Program with Inverter Air Conditioning Equipment
Since 2017, Enel X has participated in replacing wood-burning stoves with inverter air conditioning. This
initiative is part of the "Replacement of Wood-Burning Stoves with Electricity" project developed by the
Center for the Environment and Energy of Sofofa. The project employs an emissions offsetting method where
different companies fund spare parts to neutralize their operations. As a result, selected families benefit from
free replacements for their home heating systems.
Since the program's launch in 2017 and continuing until the end of 2024, Enel X has made a total of 26,074
replacements. This effort has resulted in the removal of 527 tons of PM2.5 and 63,988 tons of CO2e. Additionally,
in partnership with Aza—Sustainable Steel, 2,340 tons of scrap metal have been recycled from wood-burning
stoves.
In 2024, 4,499 new replacements were executed, removing 90 tons of PM2.5 from the environment. This
achievement directly contributes to the eradication of firewood usage in the country, thereby promoting the
decontamination of cities.
This program directly addresses environmental and social issues while also contributing to health beneficiaries.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Protection and development of natural capital
291
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Circularity metrics
Enel has incorporated the circular economy into its strategy from the outset, meticulously assessing the
environmental and economic benefits of each initiative. The outcomes of the projects in 2024, outlined below,
serve as a clear example of how it is reshaping the business model to create economic value while reducing
environmental impact.
Business segment
Virgin input avoided (ton)
Recovered materials (ton)
Emissions
Avoided (ton CO2e)
Generation
-
900
-
Distribution and grids
160
705
-
Enel (Replacement Program)
-
405
8,098.20
The circular economy is a fundamental pillar of our business strategy, as it allows us to optimize operational
efficiency and reduce costs. By minimizing the consumption of non-renewable resources and maximizing
the lifespan of materials, we are making a positive impact on our financial and environmental outcomes. This
transition towards a more circular model not only allows us to mitigate risks but also positions Enel Chile as a more
competitive and sustainable Company in the long term.
Protection and development of natural capital
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
292
People centricity
People management and development at Enel Chile
Over the years, Enel Chile's business has evolved
alongside social changes. To navigate this transition,
the Company has promoted a cultural evolution
focusing on its most valuable assets, its people,
especially its workers. This cultural evolution centers on
a virtuous triangle of well-being, driven by motivation
and aimed at promoting sustainable, 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
keywords 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 initiated a change
of pace in collaboration with its employees, starting
with a new cultural approach centered on emotional
transition. Enel Chile adopted the Soft Leadership
model to better position the Company for this new
scenario. Gentleness, defined as genuine attention
and interest in the needs of others, provides the
opportunity to create a virtuous mechanism for
fostering relationships based on listening and dialogue.
This aims to build and maintain a work environment
where motivation and well-being drive productivity
and sustainability.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
293
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Workforce
As of December 31, 2024, Enel Chile's consolidated workforce totaled 1,952 individuals, a decrease of 125
employees compared to the end of 2023. This indicates the result of balancing new hires and departures during
the period.
People's well-being
Promoting and maintaining personal well-being, both
at work and in private life, improves the sense of
belonging and makes work more sustainable. With this
in mind, the Enel Group defined a Global Well-being
Program that involves a diverse and multicultural team
aimed at all the employees that make up the Group
around the world and represent both a physical and
digital experience. This program is based on eight
concepts that have an impact on overall satisfaction,
considering people-centricity:
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
1,952 People
Total number of
workers
2,077 In 2023
WORKFORCE
Gender
Age
491 women
515 in 2023
1,461 men
1,562 in 2023
1,317
between 30 and 50
years old
605
› 50 years old
30
‹30 years old
294
Dialogue with workers
The new workplace climate survey, "Inside Enel,"
was established to clearly and objectively assess
individuals' levels of satisfaction, motivation, and well-
being and highlight areas for development in the work
environment in 2024.
Maternity leave and parenting program
Enel Chile currently lacks a policy that provides a
rest period longer than the legally required duration
after childbirth, upon a judicial granting of custody or
personal care as a protective measure, or during the
adoption request process involving the personal care
of a minor. Consequently, there is no formal definition
specifying the duration in days for this concept.
However, the Company has implemented a Parenting
Program designed to promote a culture that values
both fatherhood and motherhood while embracing
the diversity of family structures. The program offers
nutritional guidance for parents throughout pregnancy
and the breastfeeding phase, along with educational
resources on various topics related to parenthood,
such as breastfeeding, emotional management, and
new family dynamics, among others. This document
outlines the primary procedures and advantages
associated with this timeframe.
This program also provides permits for parents to
accompany their children to medical check-ups for up
to six months after birth.
Enel Chile grants employees who become parents a
benefit in addition to the five days of postnatal leave
legally in force1. This benefit 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. Furthermore, they are
given a gift to welcome the new family member.
1
In accordance with Article 195 of the Labor Code in Chile, the female worker is entitled to maternity leave of six weeks before childbirth and 12
weeks after childbirth. The father, in turn, is entitled to a paid leave of five days upon the birth of a child, which he may use at his discretion from
the moment of birth. This leave may be taken continuously or distributed over the first month following the birth. Regarding parental postnatal
leave, according to the provisions of Article 197 bis of the Labor Code, the worker is entitled to 12 weeks of full-time leave or 18 weeks if she
returns to work part-time. This leave can be transferred to the father, allowing for a maximum of six weeks of full-time leave or a maximum of
12 weeks of part-time leave.
[NCG 461 - 5.7]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
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
Cultural
Feel motivated
withgrowth and learning
Ethical
Sense of value, meaning
and purpose
Protection
Feeling safe and
protected from
undesirable events
Economic
Sense of satisfaction
with their economic
situation
295
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
4.8.1.2.3 Benefits
The Enel Chile Group has a benefits plan for its
employees and their families. However, due to
the number of unions involved with Enel Chile, we
currently lack a Benefits Policy. Instead, the Enel
Group provides a benefits plan for employees across
its companies, which includes extensive advantages
for their families. Among the most significant and
valued are:
Benefit
Detail
Type of employment
relationship
Supplemental Health
Insurance
It includes, but is not limited to, 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 provides access to the following benefits: Direct payment by the
Company for benefits related to an inability to work on the regular payday,
eliminating the need to complete the Isapre collection procedures.
Medical Checking Account: a loan with special terms for co-payments or
a portion of health expenses not covered by Isapres.
People with an indefinite,
fixed-term contract
Supplemental
Allowance for Work
Disability
The Company pays full monthly remuneration to employees on leave
due to their inability to work, covering amounts not reimbursed by Social
Security Health Institutions, provided that the remuneration exceeds
the taxable limit. Additionally, for medical leave of 10 days or fewer, the
Company pays the remuneration for the first three days.
People with an indefinite,
fixed-term contract
Financial support
Enel Chile provides benefits to different groups, including financial
assistance for parents of school-aged children through loans for higher
education, scholarships, school bonuses, and incentives for students
based on their academic performance.
People with an indefinite,
fixed-term contract
Activities aimed at
promoting physical care
and well-being
The Company launched a program to encourage the development of
healthy habits, fitness, and well-being through the Gympass smartphone
app. Enel employees can access a variety of activities, including online
group fitness classes and personal training, as well as gyms nationwide.
They can also utilize additional apps that enhance nutrition and sleep
quality, promote meditation, and help manage personal finances. This
service is available to employees and their close contacts at a discounted
rate.
Other activities comprise annual preventive examinations, follow-up
care and medical advice post-examination, nutritional counseling,
and communication campaigns related to disease prevention and
immunization campaigns.
People with an indefinite,
fixed-term contract
Recreational and social
connection activities
The Enel Chile Group offers options for employees and their families
that foster social interaction and enhance commitment and corporate
identity. The company also provides individual psychological support to all
Enel Chile employees and their families to assist with various personal or
work-related issues. Additionally, employees can use the stadium facilities
for family recreation and team-building events.
People with an indefinite,
fixed-term contract
[NCG 461 - 5.8 iv]
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
296
Benefit
Detail
Type of employment
relationship
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
In 2024, the Company implemented initiatives focused on worker health
and safety. Preventive examinations and medical monitoring occurred
throughout the year. Additionally, campaigns promoting worker health
and influenza vaccinations were launched.
People with an indefinite,
fixed-term contract
Global Wellbeing Program
In 2024, Enel Chile employees could access the Global Wellbeing Program,
which aims to support and encourage individuals to take charge of their
well-being through tools that allow them to improve their level of well-
being and balance between work and family life. 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 climate transition strategy requires new skills.
It is essential to consistently provide training to
employees to enhance their abilities and performance
in their current roles. Furthermore, implementing
an upskilling strategy will help develop training and
empowerment programs to refine existing skills.
Conversely, reskilling strategies will enable individuals
to acquire new skills and competencies for different
positions.
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 2024, the Company trained 1,918 people. 109,789
hours of training were delivered, with an average
of 57 hours per worker. For more details about our
employees’ average training hours by gender and job
category, see Chapter 6, "Main Indicators."
In line with its commitment, Enel Chile incurred costs
related to training and development activities totaling
Ch$175.4 million in 2024, representing 0.004% of the
annual consolidated ordinary activity income.
[NCG 461 - 3.1 vii; 5.8 i; iv]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
297
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Program
Subjects covered in the program
Number of program
participants
Leadership Academy
The program aims to equip new leaders with the tools and knowledge
they need to effectively fulfill their roles and tackle new challenges.
25
Mentoring Program
A program aimed at empowering women in leadership roles through one-
on-one mentoring sessions conducted by Company managers.
19
Language Program
The program aims to improve oral comprehension and expression,
develop reading and writing skills, and expand vocabulary in the various
languages studied.
78
Women's Leadership
Program
To boost, develop, and showcase women's leadership skills, organizational
competencies, and networking abilities while supporting their career
advancement in competitive, traditionally male-dominated fields.
14
Skills Catalog
Catalogue with Soft Skills training for the Company's people.
247
Awareness - Diversity &
Inclusion
The program aims to raise awareness of diversity and inclusion issues
across the entire Company.
1,263
Business in Action
The program seeks to share knowledge about the diverse businesses of
various companies with their employees.
1,045
Global "Enel Journey"
Program
The program aimed to promote a concrete vision of the business by
closely experiencing Enel's operating facilities with the aim of developing
an entrepreneurial mindset.
52
Growth Academy
The goal is to share relevant knowledge across various areas through
development plans that address specific needs, achieving standardized
results aligned with the Company's strategic values and objectives.
128
Campaign – Karin’s Law
Training focused on raising awareness of the changes to Law No. 21,643
regarding sexual harassment, workplace harassment, and workplace
violence, along with its prevention measures.
2,054
NERC-CIP Campaign SEN
NERC CIP is a set of standards designed to maintain and enhance the
reliability of the Bulk Electric System (BES). The purpose of CIP standards is
to safeguard critical infrastructure elements essential for the dependable
operation of this system.
1,746
Personal development programs
Enel's strategy is based on caring for and concentrating
on the people who are the protagonists of change,
challenges, and results. Its fundamental pillars are
Sustainability, Flexibility, Resilience, Effectiveness, and
Efficiency.
The OFE evaluation program evolved in 2024 into
a Performance Management system that supports
reward mechanisms, promotes talent appreciation,
evaluates achieved goals, assesses adherence to
corporate values and behaviors, and maintains a focus
on self-empowerment through feedback exchange.
The new process allows for an annual moment of direct
and exclusive conversation between managers and
team members to evaluate the results and behaviors
adopted and is based on two dimensions:
• The average evaluation of professional goals, by
60%
• The average evaluation of the five values (converted
into behaviors) by 40%.
To promote and develop individuality, we have
implemented three development paths.
• Coaching: a process where a coach accompanies
a coachee on a path of discovery and development
of one's potential and competencies to achieve the
objectives identified by the coachee 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.
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
298
• Job
shadowing:
a
voluntary
process
of
accompanying
and
exchanging
experiences
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 grids and
contacts within the Company.
Internal mobility
In 2024, the Company promoted internal job mobility,
which not only captured the immense diversity and
richness of Enel Chile's employees' experiences
but also fostered openness to new professional
challenges, facilitated skill development, and created
increasingly horizontal programs. Internal candidates
filled ninety percent of the positions.
Succession and handover plan
The objective of the Succession Plan is to guarantee
the uninterrupted flow of talented individuals, their
expertise, and their abilities to lead and oversee the
company's operations effectively. This procedure
aims to foster and promote the growth of possible
candidates for senior management roles.
In 2024, the plan has been reformulated and now
consists of two semiannual waves to account for
the imminent organizational changes. The program's
selection criteria have been retained, aiming to
promote greater inclusivity and value diversity,
ensuring gender equity among successors. As in
previous years, it extends the search target to broaden
the possibilities of finding successors for management
positions.
Diversity and inclusion
For Enel Chile, inclusion, well-being, commitment,
and value creation are essential for engaging with
its employees. The company believes that respecting
and promoting the principles of non-discrimination,
equal opportunity, and inclusion are core values in its
operations, fostering an inclusive work environment
where every individual can realize their potential and
maximize their contributions.
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 desire 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
[NCG 461 - 3.6 x]
[NCG 461 - 3.1 vi]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
299
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
recognized human rights in the scope of its commercial
relations and requires contractors, suppliers, and
business partners to adopt them.
In recent years, the Company has intensified its efforts
to raise awareness and cultivate a culture of inclusion
at all levels and in all areas within the organization
through communication campaigns and local and
global events focused on various topics. Among the
most significant initiatives undertaken in 2024 are
actions designed to create a systemic impact on
different aspects of the gender gap and the inclusion
of individuals with disabilities, as well as initiatives
addressing cultural diversity and raising awareness of
inclusion issues.
In particular, the main initiatives developed in 2024
were:
• Providing educational spaces on diversity and
inclusion, with a gender and disability focus.
• Commemorating and disseminating the most
important anniversaries associated with diversity
and inclusion.
• Maintaining spaces on the Intranet dedicated to
Diversity and Inclusion issues by the Company.
Promoting a culture of inclusion at Enel Chile also
involves setting and measuring objectives. This
approach is summarized in an action plan measured
through a broad set of KPIs subject to commitments
approved by the Company's management. These
commitments include balancing the percentage
of women in hiring processes, increasing the
representation of women in senior and middle
management, and promoting projects for the
inclusion of employees with disabilities at all stages of
their work careers.
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,
by 2024, there is a 22% representation. Actions to
value the contribution of women throughout the
organization, and not only in management positions,
have also continued. 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 field of disability, Enel Chile offers equipment,
services, work methods, and various initiatives to
foster an inclusive work environment and relationship
culture for everyone, ensuring full autonomy at work
regardless of disability status.
The Company carries out a series of initiatives that
seek to eradicate possible prejudices regarding
people with disabilities (PeSD) in 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 people
with disabilities are as follows:
People with disabilities (*)
2024
2023
2022
2021
Enel Chile and its subsidiaries
10
11
13
14
(*) For more in-depth information, please refer to “Principal Indicators” in Chapter 6.
The Enel Group has publicly committed to taking action on disability by joining the global "Valuable 500" initiative.
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
300
Pay equity
Although Enel Chile lacks a documented gender
equality policy at the end of the 2024 financial year,
in accordance with the UN Sustainable Development
Goals, specifically SDG 5, the Company is committed
to implementing a policy of equitable compensation
for all its employees.
The Company periodically conducts a salary review
of its workers, using a methodology that assesses
positions to determine their relative value based on
importance and contribution to the organization’s
interests. This approach allows for an objective
comparison of salaries with the labor market reference,
taking into account both gender and peer equity
criteria. As part of the Company's commitment to
equitable compensation among its workers, although
there are no specific salary equity goals, the company
has allocated a budget specifically for women, which
is utilized for this purpose in the salary review process.
Internally, the Company measures the wage gap using
the Equal Remuneration Ratio (ERR), which divides the
average theoretical total annual income of women by
the average theoretical total yearly income of men.
Right to trade union representation and collective bargaining
The Company establishes fair and favorable working
conditions for its employees in accordance with
current legal regulations through collective contracts
and instruments arising from collective bargaining
processes between the unions and the Company.
Collective bargaining is a tool validated by both parties,
facilitating collaboration, emphasizing the positive
social impact on the organization, and showcasing
the good practices it promotes regarding freedom of
association and fairness 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
2024, 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
include a comprehensive outline of the procedures for
reporting workplace harassment, sexual harassment,
and other complaints and the associated investigation
processes.
[NCG - 5.4.1]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
84%
Average
86 % in 2023
85%
Median
91 % in 2023
WAGE GAP
(*) For more details, see Chapter 6 Main Indicators
301
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
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 addressed by the current collective
agreements include benefits and conditions related
to work, such as productivity bonuses, overtime,
Christmas bonuses, and welfare benefits related to
health, education, food, and vacations.
In 2024, 81% of workers were unionized under
collective agreements. Employees at Enel Chile
and its subsidiaries have the freedom to associate
collectively, being part of one of the existing unions at
each company.
% Covered by Company
2024
Enel Chile (1)
75%
Enel X Chile
85%
Enel Generación Chile and subsidiary
77%
Enel Green Power Chile and its subsidiaries
84%
Enel Distribución Chile and subsidiaries
93%
Total
81%
(1) It considers the employees of the parent Company, Enel Chile, plus a worker of Enel Mobility Chile Spa.
[NCG 461 - 5.6]
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Health & safety
Enel Chile considers people's health, safety, and
psychological and physical integrity to be the most
valuable assets to protect in all aspects of life. From
this perspective, Enel Chile is committed to fostering
a strong health and safety culture that encourages all
its operations to raise awareness of risks and promote
responsible behavior while carrying out work activities
with quality, preventing accidents, and safeguarding
the health of everyone who works with and for Enel
Chile.
The goal is to achieve "Zero Accidents" for the
Company's workers and contractors. To reach this
objective, safety culture is consistently promoted,
and a work plan centered on four concepts has been
established: operational control, digitalization and
process analysis, culture and training, and safety
culture. Each decision prioritizes the protection of
people's health, always using a preventive approach
that seeks to minimize risks.
Enel Chile implements the Stop Work policy to align
with the Enel group's global goal of Zero Accidents.
Both workers and contractors must immediately cease
any work that may jeopardize their own or others'
health and safety or harm the environment. This policy
exemplifies the Safety-First principle, and to ensure its
full effectiveness, it is clearly stated that anyone who
practices it in good faith will not face sanctions for any
reason.
Risk matrices are emphasized as a tool for identifying,
evaluating, and prioritizing risks that may arise
in a process, service, or any aspect impacting an
organization's objectives. This tool is updated annually
or as necessary to review new activities.
302
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
Health & safety governance
Enel Chile has a Health, Safety, Environment, and
Quality (HSEQ) department that supervises, guides,
coordinates, and promotes the Company’s best
practices and reports directly to the CEO.
It features a management system that emphasizes
hazard identification, both qualitative and quantitative
risk assessment, planning and implementation of
preventive and protective measures, verification
of their effectiveness, execution of any corrective
actions, and preparation of operational teams.
Health & safety risk management
In terms of incident detection, analysis, and
management,
the
Group
follows
Policy 106—
Classification,
communication,
analysis,
and
reporting of incidents. This policy 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 has a Critical Event policy that aims to
provide a set of guidelines for the integrated process of
identifying possible emergency scenarios, preventive
action plans, assessment, and management of
workplace emergencies under Enel's full responsibility
and control, both industrial and civil, that affect:
• Health and safety of Enel staff and contractors
• The environment and local communities
• Assets, operations, and/or business continuity of
the Enel Group
The purpose is to implement immediate and effective
preparedness and response measures, considering
both exogenous and endogenous threats, and to
ensure coordination between HSEQ, Security, and
the relevant functions in charge of Operation and
Maintenance, Engineering and Construction, and Site
Services.
The Company has also implemented a security
process for staff members traveling abroad, providing
them with information about their destination country
and conditions that may pose risks to their health and
safety.
0.1
Accident Rate
0.0
Fatality
Rate
0.0
Rate of
Occupational
Diseases
51.0
Average days lost
per accident
(*) At the Enel Group level, the Company’s goals are always focused on Zero Accidents. This includes the monthly average of workers hired
directly by Enel Chile and its subsidiaries.
303
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
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.
Every year, various initiatives are implemented
for all employees to promote a culture of safety,
including webinars, campaigns, and training sessions.
This year, the one focused on safety monitors in
Cardiopulmonary Resuscitation and the essential use
of the Defibrillator stood out, achieving 100% approval
from attendees.
It has a Joint Committee recognized by the Achs
Administrative Body as a Certified Committee
that supports safety efforts not only in accident
investigations but also as an entity that continually
promotes a safety culture among its workers.
There are several committees in which executives from
different management levels of Enel Chile participate.
Their mission is to monitor initiatives and projects
related to employee health and safety at the national
level, tailored to each line of business. These include a
joint committee and a psychosocial and occupational
risk committee. The joint committee, which represents
all its workers, supports safety efforts not only by
investigating accidents but also by continuously
promoting a culture of safety among employees.
This committee achieved certification granted by the
Administrative Agencies by fully complying with the
proposed functions and programs.
Digitalization of safety management
The Company implemented a new digital platform for
security management within the Enel Group in Chile
known as "Sage." This system enables operational
controls, allows the uploading of documents for
personnel, equipment, and vehicles necessary for the
operation, ensures compliance with the current legal
framework, and facilitates monitoring and reporting
processes online through a mobile application,
which enhances the efficiency and rigor of various
methods. In 2024, Gestión Contractor was introduced
to streamline the labor accreditation of workers and
ensure compliance with social laws by contractor
companies. It automates and centralizes essential
processes, such as document verification and pension
payment tracking, promoting transparency and
minimizing legal risks in subcontracting.
The Company also has several corporate digital tools
to register evidence, action plans, and monitoring,
allowing quick access to data to generate reports,
analyses, lessons learned, and best practices, both
internally and with other countries of the Enel Group.
Physical security
In the context of private security in Chile, there are
regulations that set forth security measures and
standards for the protection of private facilities.
This regulatory framework is based on Decree Law
No. 3,607, "Regulations on the Operation of Private
Guards," Law No. 19,303, "Obligations of Entities in
Matters of Private Security," Decree Law No. 1,122
"Minimum Security Measures for Companies," Decree
Law No. 1,773 "Operation of Private Security Guards,"
Decree Law No. 867 "New Standards for Individuals
and Companies Receiving Private Security Services"
from 2017, along with the recent disclosure of the new
Law No. 21,659 regarding Private Security.
Nerc Cip Sen: The companies of the National Electric
System must comply with the Cybersecurity standard,
which consists of adapting the international CIP
(Critical Infrastructure Protection) regulations from
NERC (North American Electric Reliability) to the reality
of Chile.
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
304
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.
This year, the Culture Sight survey was conducted
to understand security perceptions across the
organization's operations. This is a crucial step in
proactively mitigating risks and prioritizing actions.
It facilitated assessments of both Enel's internal and
external employees. The process helps systematically
measure the maturity of the organization's safety
culture and identify key indicators of strengths,
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. Here, we present the most important.
• The "Risk Prevention in the Work Commute" campaign aims to educate workers on preventive measures they
should adopt when using various modes of transportation. Additionally, it promotes the use of the Bike Hub
located in the new Enel Corporate Building facilities.
• The Environment Campaign "Recycling and Climate Change" included activities carried out during Safety Week
that engaged the entire Enel Chile Group. This initiative reinforced the proper use of recycling dispensers and
raised awareness about the climate changes happening worldwide, emphasizing the contributions individuals
can make.
• The "Health Promotion" campaign features various talks, including highlights on Breast Cancer/Panic Crisis and
Heart Month.
• The "Summer Plan" campaign includes activities designed to reinforce and create environments that promote
safety and health, focusing on employees’ needs. These include UV exposure, high temperatures, and New
Year's Eve parties.
• The "Energy in Motion, Health at Every Step" campaign promotes worker health by encouraging physical activity
and healthy eating through various initiatives.
• The "Never Let Go" campaign promotes the proper use of fall arrest safety equipment.
Promoting health and well-being
Concerning safety, health is also essential to Enel Chile's
commitment to growth and individual well-being.
The Company has established a structured health
management system based on preventive and
protective measures. It is dedicated to fostering
a corporate culture that promotes psychological
well-being, organizational health, and work-life balance.
To this end, the Company encourages initiatives
designed to improve the quality of a typical workday
in terms of physical and emotional well-being; creates
awareness campaigns to advocate for a healthy
lifestyle; sponsors screening programs focused on
disease prevention; and facilitates access to medical
and healthcare services, support for individuals with
disabilities, and specific preventive medicine initiatives.
weaknesses,
and
risks.
Our
strengths
include
commitment, awareness of hazards, reports, and
research. Opportunities for improvement include
accountability, communication, and support resources.
We need to focus on enhancing communication and
increasing our visibility in the field to highlight the
various activities we undertake across different lines
of business.
The Company offers periodic safety talks for both
internal and external personnel, offering clear and
direct guidelines on safety, health, and environmental
care. These discussions enhance knowledge for better
development of daily activities, particularly in the area.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
305
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
The Company consistently promotes the well-being of
its workers by emphasizing preventive medicine. Each
person can opt for annual preventive examinations to
detect diseases early and maintain health.
Additionally, the Company has a medical team on-site
at the Corporate Building to provide primary care for
staff and Contractor Companies. It also encourages
physical activity through active breaks and offers
voluntary medical follow-ups for its personnel, among
other initiatives.
Main activities
Most important initiatives in 2024
• Health and safety work plan for 2024-2025 with the Mutual de Seguridad and the Chilean
Safety Association: An agreement was signed with the Mutual to establish a work methodology that
complies with the occupational health and safety requirements enforced at the facilities, thereby ensuring
the protection of employees within the Enel Chile Group.
• Training and emergency drill: Several training sessions were conducted to familiarize employees with
the new emergency plan for the corporate building. In September, a drill was also held to outline actions
aimed at mitigating risks to individuals and infrastructure across various business units, thereby helping
to ensure operational continuity.
• Health and Safety Week: During the week of April 22, various activities were held to reflect on and
prevent accidents and reinforce the commitment to protecting the well-being of all workers and their
families.
• Environment Week: Under the slogan "If the Earth changes, so do we," the Company conducted various
activities alongside the business initiatives to emphasize the importance of protecting the planet.
• Active Breaks: Active work breaks are brief moments of rest during the working day. They consist of
mobility exercises, muscle toning, and/or mild aerobic exercises. They take place in the corporate building
and the distribution facilities.
• CPR and AED Course: In October, a CPR and AED course was conducted for Corporate Building
Emergency Monitors. The CPR course was also accessible to all Enel Group employees in Chile, with
optional registration available on various dates.
Responsible Community Relations
Enel Chile's commitment to community development
is part of the Creating Shared Value (CSV) policy, which
defines the Company's engagement model with the
communities. This model embraces an inclusive,
participatory approach that promotes respect for
human rights and facilitates collaborative actions
that genuinely address the priorities and needs of
the communities. Its objective is to create long-term
value for all stakeholders, to minimize environmental
and social risks and impacts, and, at the same time, to
generate value for the Company and the country. The
Company builds a business model grounded in strong
and enduring relationships with communities where
sustainability fosters progress. This model creates
profitable solutions, addresses social needs, fosters
mutually beneficial relationships with stakeholders,
and generates long-term value, enabling all parties to
contribute to resilient and equitable development.
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
306
Creating Shared Value Model
The CSV model is based on three pillars:
• Make the value chains of the business lines
sustainable, minimizing the use of natural resources
and maximizing the value created for the community.
• Develop sustainable and inclusive products and
services derived from the social needs of customers
and communities.
• Expand
the
ecosystem
of
partnerships
and
collaborations to continuously seek out ideas and
talent.
This perspective provides for the alignment of the
Company's aims with the priorities of stakeholders,
as well as local anchoring and acceptability, which
enables the business's sustainability over time. To
implement the CSV model, a comprehensive and
rigorous process for supporting assets and projects is
used, which consists of five phases:
Community engagement policy and procedures
Enel Chile's commitment to social sustainability
is evident in all its activities. It is reflected in the
Sustainability and Community Engagement Policy,
which applies to all local operations featuring
community engagement programs.
To implement this policy, the Company has processes
and
procedures
that
continuously
guide
the
relationship. The procedures governing community
engagement are as follows:
• The CSV Process Definition and Management
outlines how to design, execute, monitor, and
evaluate various sustainability plans across different
territories.
• Stakeholder engagement: principles and criteria
for relationships with various local stakeholders.
• Generating
agreements:
governs
the
formalization of agreements between the Company
and the community engaged in the operations or
projects of Enel Chile and its subsidiaries.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
1
2
3
4
5
CSV
METHODOLOGY
Context analysis. Identification of key factors related
to socioeconomic and environmental aspects of global and
local communities, with special attention to potential
impacts on human rights.
Dialogue with stakeholders. Identification and
prioritization of key stakeholders. Gathering their needs
throughout the different stages of the value chain.
Risk and opportunity analysis. Analysis of local
priorities. Identifying priority issues for stakeholders,
carried out using specific tools.
CSV Plan. Definition of an action plan aligned with the
identified priority issues and their impact, utilizing the local
network to find solutions and potential partners.
Execution of the CSV plan. Implementation of the
actions defined in the CSV Plan in collaboration, if
necessary, with strategic partners, monitoring, reporting,
and value enhancement.
1
2
3
4
5
307
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
• Control,
monitoring,
and
execution
of
agreements and RCA Human Environment
Obligations:
This
framework
organizes
the
activities of control and oversight of the accords.
• Donations: Guidelines for conducting activities
related to the granting and management of
donations, ensuring their alignment with the
corporate strategy for sustainable development.
• Human Rights Management System: This
section defines roles and responsibilities and
describes the process of implementing due
diligence for this system.
• The Project Portfolio Management (PPM)
system defines the key performance indicators
(KPIs) and the method for calculating impacts
based on the characteristics of various social and
environmental investment initiatives.
Lines of work in community
engagement and main community-
based projects
To identify and define sustainability actions, the
Company considers the national scenario, its primary
risks across various territories, and the significant
social challenges within the country: multidimensional
poverty, energy vulnerability, and the climate crisis.
Work lines have been established to adapt to each
region's unique realities and align with the United
Nations’ Sustainable Development Goals (SDGs). This
framework also promotes respectful dialogue with all
local stakeholders, acknowledging them as essential
participants in implementing its initiatives.
The company's sustainability projects include both
voluntary initiatives and those related to compliance
with environmental licenses, regulations, and other
binding requirements. The Company promotes,
manages, supports, and/or finances these initiatives.
They are designed to respond to the needs of the
environment, generating a positive impact on the
society in which they operate. This approach reinforces
its strategic commitment to developing "responsible
relationships with communities" and allows it to
address the critical factors identified in the materiality
matrix.
The total number of beneficiaries of the different
projects implemented in 2024 is 74,419.
The beneficiaries for each business line (Enel
Generación and Enel Green Power; Enel Distribución
and Enel X) and by Sustainable Development Goals
(SDGs).
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
GLOBAL GUIDELINES
PROCEDURES
OPERATIONAL INSTRUCTIONS
Generation of
agreements
Human rights
management
system
Control, Follow-up
and execution of
agreements and
RCA Obligations
Human
Environment
Stakeholders
Engagement
Donations
CSV Process Definition and Management
PPM System
308
Business Lines
Beneficiaries by project
Enel Generación and Enel Green Power
49,023
Enel Distribution
7,200
Enel X
18,196
Other
-
Total
74,419
SDG
Beneficiaries by project
SDG 4
6,453
SDG 7
33,252
SDG 8
16,384
Other SDGs
18,330
Total
74,419
The key projects undertaken in 2024 by the Sustainability
Unit for Enel Generation, Enel Green Power, Enel
Distribution, and Enel X are detailed below:
Relevant projects in the Enel Green
Power and Enel Generación perimeter
Inca Gold Astronomical Enhancement
In line with its commitment to creating shared value
and adhering to the obligations established during
the environmental approval process of the Guanchoi
photovoltaic project in the Atacama region, Enel
launched the "Educating from Science" program in
2024. This initiative, developed in collaboration with the
More Science More Dreams Corporation, revitalized the
Inca de Oro Observatory, positioning it as a regional
benchmark
in
scientific
dissemination.
Through
workshops,
talks,
and
astronomical
observation
activities, more than 1,000 people benefited from the
promotion of scientific vocation, sustainable tourism,
and local development, aligning with SDG 8 and 9 on
promoting sustainable tourism. By activating this unique
space, Enel Chile not only fulfilled its environmental
commitment but also made a positive impact on
the community, strengthening its connection to the
territory and contributing to the development of a
scientific culture in the region.
Inauguration of the Quepuca Ralco School
Thanks to a productive dialogue and a shared learning
process that began in 2017, Enel Chile and the Mapuche
Pehuenche community of Quepuca Ralco reached
a historic agreement, which led to the opening of
the Ñebun Degiñ Pehuen School in 2024. This jointly
designed educational establishment marks a milestone
and ushers in a new phase in the relationship between
both stakeholders, signifying a fresh start in the pursuit
of sustainable and equitable solutions. The school,
showcasing architecture that reflects the Mapuche
worldview and accommodating 120 students, directly
benefits four indigenous communities in the area,
reinforcing their cultural identity and providing
developmental opportunities for future generations.
This project exemplifies how dialogue and collaboration
can transform challenges into opportunities and
promote a more just and equitable future.
Innovability Til Til; El Manzano and Don
Humberto PV Plants
Innovability Tiltil marks a significant milestone in
our commitment to sustainable development and
exemplifies how we uphold the obligations outlined
in
environmental
qualification
resolutions.
The
implementation of innovative energy solutions has
substantially improved the quality of life for over 2,500
people in the communities surrounding our Til Til solar
plants. This project focuses on providing efficient
alternatives for distributed generation and installing
public lighting. It aids in revitalizing public spaces,
enhancing security, and promoting renewable energy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
309
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
as part of the country's energy transition process.
Furthermore, it has helped strengthen connections
with local communities, demonstrating that generating
shared value and positively impacting the environment
is feasible.
Relevant projects in the 2024 Enel X
perimeter
Inclusive Care Program
In 2024, the Sustainability area launched the "Inclusive
Customer Service” Program for the Enel X and Market
sectors, aiming to enhance the customer experience
by making it more accessible and inclusive, with special
attention to individuals who may be in vulnerable
situations due to their circumstances. This program
features a range of tools and activities to make sure that
customer interactions are straightforward, respectful,
welcoming, and inclusive.
The program developed organizational guidelines, and
both internal and external employees received training
to ensure that anyone who interacted with Enel had a
positive experience.
More than 500 workers and contractors from the Enel X
and Market perimeters took part in the program.
The Program’s results and main milestones in 2024
were:
• Customer
experience
analysis
focusing
on
vulnerable customers: a survey designed expressly
and applied—987 responses to the study 1 final
satisfaction report.
• Slow shopping initiatives, inclusive store/office
design, service channels, and methodologies for
vulnerable customers:
• 1 report on accessibility conditions for commercial
offices
• 1 Global Guidelines Document
• 1 digital guide
• 4 video capsules
• 1 mobile electrical office
• Payment agreements (debts)
• New and improved inclusive products and services.
• Market: Social agreements
• Enel X: Alliances with financial partners to provide
benefits to vulnerable customers
• Specific training on slow shopping techniques
and methodologies to build an inclusive customer
relationship (e.g., dedicated to vulnerable customers).
• 212 Enel X, Market and Sustainability employees
trained
• 385 Enel X, Market, and Sustainability employees
trained
• 44 total hours of training
• 22 training sessions
Electrical training network for the future
The "Electrical Training Network for the Future" Program,
in collaboration with SOFOFA and Chile Dual, provides
technical training for students in electricity-focused
high schools. The program aims to enhance students'
skills and knowledge and create job opportunities for
those who choose to work in the electrical field after
graduation.
In 2024, a total of 163 students were trained at three
technical high schools: Ignacio Domeyko Bicentennial
High School in Recoleta, Manuel Plaza Reyes
Bicentennial High School in Lampa, and Liceo Industrial
Benjamín Franklin in Quinta Normal.
This year, the project’s fourth version was implemented,
featuring the first edition of four training modules that
include specific content about Enel X operations. These
modules cover the following subjects: public lighting,
air conditioning and refrigeration, electromobility, and
distributed generation.
The training took place at Enel's Center of Operational
Excellence (CEO), which has specialized equipment for
studying medium-, high-, and low-voltage lines in both
overhead and underground grids, as well as in Enel X's
operational matters while adhering to all quality and
safety standards. The on-the-ground technical training
was directed by 15 workers from the Enel Distribución
crews and collaborating companies, along with 17
Enel X workers and collaborators, who dedicated their
time and knowledge to train the participating students
thoroughly.
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
310
A critical milestone in reducing the gender gap in this
technical area is the involvement of 20 young women
who were encouraged to pursue job opportunities as
part of a fair and inclusive transition.
In 2024, a third school (Benjamin Franklin Industrial
High School) was added to the program, and 46 more
students were trained than the previous year.
Relevant projects in 2024 Enel
Distribución perimeter
Energy inclusion
The Company delivered and finalized the third version
of the Energy Inclusion Program in collaboration
with the EBP Company. Initiated in 2023, this project
is located in the town of Aurora de Chile within the
Cerro Navia district and has reached 57 homes. The
program successfully implemented improvements in
energy efficiency for vulnerable households through a
living lab model. Under this model, the energy poverty
status of the beneficiaries was evaluated to design and
implement the most appropriate measures for each
family. These measures include the installation of solar
thermal panels, replacing gas stoves with electric ones,
updating refrigerators, and enhancing the safety of
their electrical systems. Overall, the project is projected
to save families around 6 million pesos and prevent
the emission of 11.3 tons of CO2e per year due to the
installed technologies.
Conversations with the community
Over the past year, three community conversations
have created a platform for active and constructive
dialogue with diverse communities. They promote
citizen participation and foster a positive impact in the
environmental sector, the responsible use of energy,
and electrical safety.
The Energy Efficiency workshops provided practical
tools to improve energy efficiency at home, offering
insights into electricity distribution and responsible
consumption habits. Simultaneously, the program
highlighted the prevention of electrical hazards through
essential safety guidelines for both home and workplace
settings. This was a vital initiative aimed at educating
consumers on the safe management of energy and
preventing
accidents.
Ultimately,
environmental
education incorporated climate change workshops and
hands-on community composting activities. In these
settings, we examined the impacts of climate change,
the significance of recycling, and the production of
worm humus, all while fostering the transformation
of the Company's materials into compost bins. This
initiative promotes the adoption of circular economy
practices within the community.
In 2024, 3,830 individuals participated in 130 activities
across 24 districts and 113 organizations, continually
employing a participatory and educational approach
in which communities not only receive information but
also share experiences, concerns, and solutions. This
collective effort has raised awareness, empowered
individuals to care for the environment and safety,
fostered a closer and more collaborative relationship,
and established the foundations for a community culture
focused on sustainability and collective well-being.
Consequently, the project enhances collaboration and
strengthens the ongoing bond with people living in the
concession area, creating a channel for active listening
and
participation
while
enthusiastically
involving
communities in initiatives that prioritize people in the
development of the distribution grids.
Training Programs
Training new professionals in the electricity sector is
crucial to address the energy transition challenges.
In this regard, in collaboration with Santo Tomás
Continuing Education, the "Energy with Local Strength"
project this year included a new professional training
course on "Maintenance of Low Voltage Underground
Grids." Twenty-six people increased their knowledge in
this area through 60 hours of theoretical and 20 hours
of practical instruction, guided by university instructors
and technical staff from our Center for Operational
Excellence teams. Additionally, the Company offered
labor scholarship programs in partnership with SENCE,
which trained 53 individuals on various issues related to
electricity and entrepreneurship.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
311
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
A sustainable supply chain
Enel Chile continues to integrate sustainability into its
Supply Chain strategy by incorporating environmental,
social, and governance aspects to create shared value
with its suppliers.
The performance of the Company’s suppliers must
not only guarantee necessary quality standards
but also demonstrate a commitment to adopting
best practices regarding 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 that fully respects 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.
In addition to complying with local legislation,
procurement
processes
rely
on
criteria
that
encourage sustainable development and uphold the
principles of free competition, equal treatment, non-
discrimination, and transparency. This is achieved
through explicit references to codes of conduct,
including the Group's Human Rights Policy, Code
of Ethics, Zero Tolerance for Corruption Plan, and
Global Compliance Programs. The selection of the
best partners and the implementation of contracts
that adhere to the highest sustainability standards are
accomplished by analyzing and monitoring the entire
procurement process.
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
SUSTAINABILITY AND INNOVATION IN THE PROCUREMENT
PROCESS – SUPPLIERS AND CONTRACTORS
Supplier
qualification
All dimensions of sustainability
are evaluated: health and safety,
environment and human rights.
Bidding and
contracting process
Inclusion of sustainability factors and
incentives:
•
Human Rights Clauses
•
Carbon footprint target
•
Material passport
•
Incentive factors for: renewable
energy mix; low carbon
transportation materials recovery;
etc
Supplier
Performance
Management (SPM)
The evaluation of suppliers’
performance also based on
sustainability dimensions.
Innovation
Innovation challenges open to
suppliers to promote sustainable
impact
Qualified suppliers
evaluated for their
sustainability
performance (%)
2024
100%
312
Supplier management & 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.
(Enel
Operating Procedure OP 1147).
Supplier Qualification
The
Company
incorporates
sustainability
into
its supply chain through the Global Supplier
Qualification
System,
which
enables
accurate
evaluation of companies interested in participating in
tender processes. This system identifies sustainability
risk factors in the sourcing process by mapping
the risk levels of various purchasing groups or
categories. This process defines a framework to
evaluate compliance with various multidimensional
requirements, including technical, financial (eco-
financial/financial risk), legal (reputational and labor
compliance), environmental, occupational health and
safety, and human rights assessments by suppliers of
goods and services.
Supplier reputational assessment is conducted by
verifying national and international restrictive lists.
For the sustainability assessment, the questionnaires
cover occupational health and safety, environmental
standards, and human rights criteria in relation to
the purchasing category and their associated risk
levels. Additionally, an audit is performed for high-risk
purchasing categories at the supplier's facilities.
Human rights are mainly 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,
both
significant
and
non-significant.
Suppliers
must continually meet the outlined requirements
throughout their qualification period. This process
enables an accurate assessment of the competencies
and capabilities of the companies working with Enel
Chile and its subsidiaries through an objective and
transparent approach that adheres to the standards
set by the Group.
As of December 31, 2024, the Company evaluated
100% of qualified suppliers on social, environmental,
and safety aspects. Approximately 563 suppliers
had active contracts, and the total number of active
qualified companies was 489.
Suppliers qualified according to sustainability criteria
2024
2023
Variation
Qualified Suppliers
no.
4,684
2,898
62%
National
no.
1,061
1,609
-34%
Foreign
no.
3,623
1,289
181%
Evaluated under sustainability criteria
%
100
100
0.0%
Coverage of awarded contracts (*)
%
99
99
0.4%
(*) This is calculated by dividing the total number of contracts awarded to qualified suppliers by the total number of contracts awarded. In 2024,
62% of the total amount was awarded to National Suppliers and 38% to Foreign Suppliers.
[NCG 461 - 7.2]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
313
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Tenders and hiring processes
Enel Chile has implemented a structured process to
define sustainability requirements and reward factors
(K) that consider certifications and environmental,
social, and circular economy aspects. This aligns
with its commitment to integrating sustainability
parameters into 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 clauses that
prioritize sustainability. These clauses emphasize the
importance of adhering to human rights and fulfilling
ethical and social responsibilities. Enel Chile and its
subsidiaries have incorporated the General Terms
and Conditions, emphasizing a sustainable business
model. They highlight environmental, social, and
economic sustainability and innovation as core values
within their corporate culture. The Company has also
established a development system focused on shared
value creation.
In 2024, 46% of the contracts awarded by Procurement
in Chile were granted to small and medium-sized
enterprises (SMEs).
Monitoring Systems
The Company conducts regular monitoring activities
to identify and resolve supplier issues. This includes
assessing
their
compliance
with
qualification
requirements and contractual conditions, regardless
of whether they currently have an active contract with
us.
• Reputation monitoring: We apply continuous
open-source monitoring to detect any potential
risks to our reputation, especially regarding
environmental crimes and human rights violations.
Reports are also collected through the whistleblower
channel, which is accessible to all stakeholders in
multiple languages.
• Document monitoring:
We
guarantee
the
accuracy and validity of legal documents, such as
Company incorporations and powers of attorney,
while adhering to the specific legal requirements of
each country in which it operates.
• Contractor
safety
assessment:
Additional
verification during the qualification and execution
phases of the contract for procurement families
with medium to high risk in health, safety, and
environment is essential. The objective is to identify
areas for HSE improvement and establish corrective
plans when necessary.
For suppliers with an active contract, the following
monitoring areas are added apart from the systems
already described:
• Health, safety, and environmental monitoring
while delivering the service: Evaluation and
monitoring of supplier performance through on-
site
inspections
to
identify
non-conformities
and potential risks with respect to contractual
commitments, technical standards, and legislative
requirements. The main objective is to prevent
accidents, injuries, diseases, and events that may
affect the environment.
• Supplier Performance Management (SPM):
monitoring based on the objective and systematic
collection of data and information related to the
performance (punctuality and quality) of the service
under the contract.
• The supplier evaluation considers the different
elements monitored and is the responsibility of the
specific committees. The committee is composed of
representatives from the procurement area and the
Business Lines.
The Qualification Committee accepts and/or rejects
qualification
requests
and
evaluates
possible
suspensions.
The Integrity Committee meets when critical problems
may affect the supplier's reputation, evaluating
possible actions or sanctions. In 2024, the committee
met nine times.
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
314
Supplier Performance Management
(SPM)
The Company closely evaluates and monitors supplier
performance at every stage of the procurement
process. The Supplier Performance Management
(SPM) tool serves this purpose. Its primary goal is to
provide timely and objective feedback on suppliers'
performance. The feedback process not only involves
identifying areas for improvement but also recognizing
suppliers with exceptional 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, including quality, punctuality, health and
safety, environment, human rights, innovation, and
collaboration. The Supplier Performance Index (SPI)
is determined by combining these indicators into a
weighted average.
The different business lines guarantee effective
supplier management, with the support of health,
safety, and environmental 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 & Rate and Damascus.
When performance is poor, specific actions that impact
the rating and contract, including modifications to the
rating duration, suspensions, further investigations,
or improvement strategies, are implemented. When
issues occur, a collaborative action plan can be
created and continuously monitored.
Consequence Management is a structured and formal
process wherein actions are determined based on
evaluations of each supplier. Its goal is to recognize
outstanding
performance
while
enhancing
the
performance of suppliers with unsatisfactory results.
In 2024, the company held five Consequence
Management Committees in Chile with 52 suppliers.
Of these, 18 were given action plans to improve their
performance, while six suppliers received letters of
merit recognition.
Circular procurement strategy
Enel Chile considers the circular economy integral to
its business model, creating competitiveness through
innovation and sustainability. In this context, the
Company adopted the Circular Procurement Strategy,
which emphasizes collaborating with suppliers that
offer goods or services, minimizing environmental
impact and waste generation throughout their life
cycle, and aligning with the Group's principles.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
315
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
To implement this strategy, the Company has
developed innovative tools and methods that enhance
material tracking and assess their impact throughout
the entire value chain. This comprehensive approach
aims to encourage suppliers to maximize resource
utilization by adopting efficient recycling and recovery
practices at the end of a product's lifespan, leading to
lower emissions.
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
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 participating in the
tender).
Definition of
metrics and impacts
EDP Program-Material
Passport
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.
Purchase works, goods and services with the aim of reducing environmental
impacts andwaste 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
1
2
3
Less Impacts
/
Cost savings
/
Risk reductions
/
Local supply chain
316
Subcontracting policy
Enel Chile has outlined a clear vision for strategic
areas concerning contracting and subcontracting.
The Company acknowledges the significance of
each participant in the service value chain. It has
implemented policies that demonstrate a strong
commitment to respecting human rights, diversity,
and inclusion and adhering to current regulations and
legislation1.
Enel Chile guarantees adherence to national laws by
establishing policies and standards. It has implemented
a Contracting and Subcontracting Policy that upholds
integrity and transparency principles. This policy
aligns with other crucial guidelines, including the Zero
Tolerance for Corruption Plan, the Code of Ethics,
the Human Rights Policy, and the Just Transition
Framework Plan.
The Company encourages and promotes the correct
performance of its work in the companies integrated
into its services value chain. It also strengthens
unrestricted compliance with obligations related to
human rights, labor, and social security, the latter of
which is defined in the Labor Code.
Furthermore, Enel Chile promotes service chain
management with commitments that support the
development of its various suppliers and contractors,
addressing not only economic and financial aspects
but also social responsibility and workplace conditions.
In this regard, the Company has implemented
programs for suppliers and contractors to cultivate
their competencies and skills for mutual benefit.
The Company conducts awareness-raising and control
activities in line with its strategic policies, implemented
across various services, including work sites, projects,
and any jobs or activities that necessitate 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, and they are carried out on a
permanent or regular basis.
For Enel Chile, health and safety are strategic
priorities. Therefore, these elements are incorporated
into the bidding and contracting processes and
are continuously monitored through the Supplier
Performance Management (SPM) system. This system
allows the Company to assess and evaluate the
performance of its suppliers and contractors.
1
Labor Code and Law No. 20,123 regulating work under Subcontracting and Temporary Services Regime
[NCG 461 - 5.9]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
317
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Principal contractor initiatives in 2024
Annual Training Plan and Work Environment for Contractors
Through Contractor Management, Enel Chile plans, develops, and implements training activities for
contractors across all business lines. In 2024, the company held 11 training programs with the participation
of 2,662 workers, of whom 30% were women. Various programs focused on updating and enhancing
knowledge in key areas such as safety, risk prevention, self-care, inclusion, empathy, Law 21.643 (Karin),
and ethical conduct. One of the most significant programs was "Meaningful Work," which aimed to help
workers find purpose and value in their contributions at work while acknowledging the impact of their
tasks on the organization, regardless of their role.
The most relevant cross-cutting program includes:
1. Law No. 21,643 (Karin): This Chilean regulation establishes a legal framework to prevent and address
workplace harassment, sexual harassment, and violence at work, aiming to provide safe and harassment-
free workplaces. Its purpose is to make sure that all workers understand their rights and boundaries in
labor relations.
2. Inclusive Customer Service: Enel's initiative focuses on diversity and inclusion. It trains participants
in concepts and tools to provide inclusive customer service to internal and external customers. The
modules cover topics such as inclusive communication, accessibility, unconscious biases, and specific
attention to diverse groups, including people with disabilities, the elderly, and sexual and cultural
diversity.
3. Customer Empathy: This program aims to enhance the customer experience, which is in line with the
global strategy of customer centricity. It empowers workers to adopt behaviors and attitudes that
promote high-quality, customer-focused service.
Moreover, in 2024, the Company launched the Labor Climate and Engagement Program, engaging 4,183
individuals from 92 contractor companies nationwide. Its main goal is to enhance the work experience for
employees in these companies.
The program comprises several stages: measuring and analyzing data, delivering results, providing advice,
developing an action plan, and conducting follow-ups. These activities aim to maintain and improve work
environment indicators, focusing on the well-being and job satisfaction of workers.
As part of the work environment program, the company offered specialized interventions to support
contractor companies in critical and emerging situations, including emotional containment, violence,
complaints, and mistreatment. Throughout the year, various interventions were implemented across
business lines, utilizing methodologies such as coaching, motivational talks, and workshops focused on
crisis management, planning, and service awareness. These activities primarily targeted supervisors, with
191 contractor workers participating, including those providing services from Colombia.
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
318
Suppliers and human rights
The Company monitors and evaluates compliance
with its Human Rights Policy principles throughout the
contract term with third parties. In the context of the
Climate and Employment Engagement program, the
measurement tool identifies companies' behaviors in
the following areas:
• 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 established a
payment policy for domestic and foreign suppliers
who provide goods and/or services to the Group's
companies. This policy adheres to Law No. 19,983,
which "Regulates the Transfer and Grants Executive
Merit to Invoice Copies," and Law No. 21,131, also
known as the "30-Day Payment Law." Payments are
processed weekly to ensure compliance with these
requirements. This policy does not cover certain
documents
with
specific
payment
conditions,
including fuel, import and/or customs duties, basic
services,
wages,
social
security
contributions,
taxes, debt service, and financial expenses. Special
attention must be paid to documents associated
with spot energy purchases (National Electricity
Coordinator), power, single charge, tolls, transmission,
and all operations related to energy trading. These
documents necessitate careful compliance with the
regulations of the electricity market.
The Company aims to pay national suppliers within
a maximum of 30 calendar days. For international
suppliers, payments will follow established schedules
while respecting the conditions agreed upon in each
contract.
Agreements with exceptional payment
terms
In 2024, Enel Chile and its subsidiaries maintained 79
agreements with suppliers recorded in the Registry of
Agreements with Exceptional Payment Terms (more
than 30 days) held by the Ministry of Economy, of
which 62 were registered during the same year.
Supplier payment
Enel Chile contracted 443 level 1 suppliers in 2024,
of which 413 were classified as critical level 1. These
suppliers, defined as those with contracts exceeding
25,000 euros and having been qualified, accounted for
96.3% of our level 1 supplier expenditure. The Company
maintains strategic relationships with these suppliers
and collaborates to meet sustainability and quality
standards, as these suppliers are vital for operations,
providing essential materials and services that directly
influence production. Payments to suppliers for goods
and services totaled Ch$4,509,722 million, with 59%
allocated to the Generation Segment, 38% to the
Distribution Segment, and 2% to others.
These payments are made to both national and foreign
suppliers (due to the difficulty of sourcing products
domestically, including fuels, gas, coal, solar panels,
turbines, and high-voltage cables, among others).
Critical level 1 suppliers were evaluated in 2024,
including assessments in the qualification, bidding,
and contract award phases.
[NCG 461 - 7.1]
[NCG 461 - 7.1 v]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
People centricity
319
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Supplier concentration
Generation segment: The primary suppliers in Enel
Chile's generation business pertain to electricity,
transportation costs, fuel, and the acquisition of
property, plant, and equipment. GNL Chile S.A.
represented over 10% of the segment's total purchases
in 2024.
Distribution and Grids Segment: The primary suppliers
in Enel Chile's distribution and grid operations consist
of those involved in electricity purchases, electricity
transportation
costs,
and
property,
plant,
and
equipment acquisitions. Enel Generación Chile S.A. (a
subsidiary of Enel Chile, part of the generation sector)
accounted for over 10% of the total purchases in this
segment in 2024.
[NCG 461 - 6.2 iii]
People centricity
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
321
CHAPTER 5
Other Corporate
INFORMATION
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
323
OTHER CORPORATE
INFORMATION
5.
OTHER
CORPORATE
INFORMATION
Articles of incorporation of the
Company
Information on shares and other
securities
Risk Factors
Subsidiaries, associates, and joint
ventures
324
Articles of incorporation
of the company
Incorporation of the Company
Enel Chile S.A., formerly known as Enersis Chile S.A.,
emerged from a corporate restructuring that began in
April 2015 within the former Enersis S.A. This company
oversaw the generation, transmission, and distribution
sectors 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 phase of the restructuring plan, spinning off
Enersis S.A. and establishing Enersis Chile S.A. as the
exclusive entity to oversee 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.
On October 4, 2016, the shareholders of Enersis Chile
S.A. approved the Company's name change to Enel
Chile S.A. This decision was documented in a public
deed issued on October 18, 2016, by Mr. Iván Torrealba
Acevedo at the Notary Office of Santiago. The extract
was registered in the Commercial Registry of the
Santiago Land and Property Registrar on page 79,330
No. 42,809 for 2016 and published in the Official
Gazette on October 28, 2016.
On December 20, 2017, the Company's shareholders
approved an amendment to its bylaws. These
amendments reflect the resolutions regarding the
merger of Enel Green Power Latin America S.A. with
Enel Chile, along with its capital increase and other
resolutions discussed during the meeting. The articles
pertaining to its capital and corporate purpose were
revised to align with the latest developments in
information and communications technology. These
changes were made in accordance with 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 in Santiago. This information was registered in
the Santiago Land and Property Registrar, specifically
on page 1154 No. 629, for 2018. It was also 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
comply with current legislation and regulations. The
changes include appointing an external audit firm,
updating the summons process, and substituting
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 also updated at the same meeting.
On April 26, 2023, the Extraordinary Shareholders'
Meeting of Enel Chile S.A. approved an amendment
to the bylaws, modifying Article Four to allow for the
supply of services to third parties.
On April 29, 2024,
during
the
Extraordinary
Shareholders' Meeting of Enel Chile S.A., the
amendment to Article Four of the bylaws was approved,
clarifying that the Company's purpose is to invest in
companies engaging in the activities described in that
article.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Articles of incorporation of the company
325
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
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 goods
related to information and telecommunications
technologies such as software, hardware, licenses,
computer developments and, in general, any 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. To fulfill its primary 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 related companies, subsidiaries, and
affiliates with the financial resources necessary
to
operate
their
businesses.
Additionally,
provide subsidiaries, affiliates, and unrelated
third parties with management services, as
well as economic, commercial, technical, and
legal advice, along with any other services
that appear beneficial for their performance.
Alongside its primary purpose and always 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.
Articles of incorporation of the company
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
326
Summary of significant
or relevant events
The following summarizes the significant and relevant
events disclosed by Enel Chile S.A. in 2024, as well
as those that occurred before or after the annual
period and were reported prior to the publication
of this Integrated Annual Report 2024. These events
may significantly affect the Company's business
development, financial statements, or securities or
may have such an effect in the future.
Assets or stock packages, acquisition
or disposal
On July 12, 2023, Enel Chile announced that it
had entered into a contract titled "Stock Purchase
Agreement," under which Enel Chile agreed to sell
to Sonnedix Chile Arcadia S.p.A and Sonnedix Chile
Arcadia Generación S.p.A. All the shares it holds in its
subsidiary Arcadia Generación Solar S.A., representing
99.99% of the latter's capital. Sonnedix Chile Arcadia
S.p.A and Sonnedix Chile Arcadia Generación S.p.A are
companies controlled by Sonnedix.
Arcadia Generación Solar S.A. operates and owns a
portfolio of 416 MW of generation through four solar
plants: Diego de Almagro, Carrera Pinto, Pampa Solar
Norte, and Domeyko.
The execution of the Purchase and Sale and the
subsequent transfer of shares owned by Enel Chile,
issued by Arcadia Generación Solar S.A., was subject
to certain typical conditions precedent for this type of
operation. Among these is the approval by the National
Economic Legal Counselor’s Office of the relevant
concentration operation as per Legislative Decree No.
211 of 1973.
The sale price totaled approximately US$550 million
for 99.99% of the capital of Arcadia Generación Solar
S.A., owned by Enel Chile. This price may be adjusted
according to the stipulations in the sale agreement.
The execution of the sale is expected to positively
impact Enel Chile's consolidated net result by
approximately US$110 million in 2023. This transaction
will lead to the loss of control and deconsolidation of
Arcadia Generación Solar S.A., which will no longer be
a subsidiary of Enel Chile.
The execution of the aforementioned Sale and
Purchase agreement involved terminating the reserved
nature of the agreements established by the Board of
Directors of Enel Chile regarding this matter, along
with the essential confidential information submitted
to the CMF on September 29, 2022, and October 28,
2022.
Changes to Management
On January 25, 2024, Enel Chile S.A. notified the
CMF of a significant event: the resignation of its CEO,
Fabrizio Barderi, who will remain in his position until
February 29, 2024, when the Company's financial
statements for the 2023 fiscal year will be approved.
On February 28, 2024, Enel Chile S.A. informed the
CMF in a significant event that the Board of Directors
appointed Giuseppe Turchiarelli as the new provisional
CEO, a position he will begin starting March 1, 2024.
On April 29, 2024, Enel Chile S.A. informed the CMF
in a significant event that the Board of Directors
appointed Mr. Giuseppe Turchiarelli Enel Chile S.A.’s
CEO on a permanent basis, effective May 1, 2024.
[NCG 461 - 10]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Summary of significant or relevant events
327
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Dividend distribution
On November 23, 2023, Enel Chile reported a
significant event: during the Board meeting held on that
date, the Directors agreed to distribute a provisional
dividend of $0.597814049050883 per share, charged
to the results of the 2023 financial year, to be paid on
January 26, 2024. This amount represents 15% of the
Company's net profits as of September 30, 2023, as
determined by the Company's financial statements
on that date. Additionally, in accordance with CMF
Circular No. 660 of 1986, Form No. 1 was attached,
providing information regarding the final dividend.
On February 28, 2024, Enel Chile S.A. informed the
CMF in a significant event that the Board of Directors
agreed to propose to the Ordinary Shareholders'
Meeting, to be held on April 29, 2024, the distribution
of a final dividend of $316,727,887,639, equivalent to
50% of the net profits for the 2023 financial year. After
deducting the provisional dividend paid in January
2024, the final amount to be distributed would be
$275,379,148,009, which represents a dividend of
$3.981391572477360 per share. Additionally, an
extraordinary shareholders' meeting was scheduled to
take place immediately following the ordinary meeting,
which will also take place on April 29, 2024.
On April 29, 2024, Enel Chile S.A. informed the CMF in
a significant event that, at the Ordinary Shareholders'
Meeting held on the same day, the distribution of
a final dividend of $275,379,148,009, equivalent to
$3.981391572477360 per share, was approved after
deducting the provisional dividend. The payment was
made on May 29, 2024.
On November 15, 2024, Enel Chile S.A. informed the
CMF of a significant event: the Board of Directors
approved the distribution of a provisional dividend of
$0.906706901652358 per share, equivalent to 15% of
net earnings as of September 30, 2024. The payment
was made on January 24, 2025.
Election of a new Board of Directors
On April 29, 2024, Enel Chile S.A. informed the CMF
of a significant event at the Ordinary Shareholders'
Meeting held on the same date: the election of a new
Board of Directors for a three-year term, consisting
of Marcelo Castillo Agurto, María Teresa Vial Álamos,
Pablo Cabrera Gaete, Isabella Alessio, Monica Girardi,
Salvatore Bernabei, and Pablo Cruz Olivos. Marcelo
Castillo Agurto was elected Chairman, with Domingo
Valdés Prieto as Secretary. María Teresa Vial Álamos
was appointed Chairman of the Directors' Committee,
and Domingo Valdés Prieto was also appointed as
Secretary.
Capital increase Enel X Way Chile S.p.A.
On July 24, 2024, Enel Chile S.A. informed the CMF
of a significant event: its Board of Directors approved
a capital increase of $5,100,559,662 in its affiliate
Enel X Way Chile S.p.A., raising its stake from 49% to
62.5%. Consequently, the shareholding of the other
shareholder, Enel X Way s.r.l., will be diluted. Once this
increase is duly subscribed, Enel Chile will become
the parent Company of Enel X Way Chile S.p.A.,
consolidating its assets and liabilities.
New Policy on Regular Transactions
with Related Parties
On July 24, 2024, Enel Chile S.A. informed the CMF in
a significant event that its Board of Directors approved
a new Regular Operations Policy with Related Parties,
previously endorsed by the Directors' Committee. This
policy is available to shareholders at the Company's
offices and on its website.
Functional Currency Exchange
On November 7, 2024, Enel Chile S.A. informed the
CMF of a significant event in which the Board of
Directors approved changing the functional currency
from Chilean pesos to U.S. dollars, effective January
1, 2025, due to the impact of this currency on its
economic environment. This change, aligned with
international standards, is a response to the fact that
its subsidiaries, Enel Generación Chile and Pehuenche,
will also adopt the dollar as their functional currency.
Additionally, the dividend policy was modified to
propose a future dividend to offset an estimated
net accounting loss of $450 million resulting from
the discontinuation of exchange rate hedges, which
does not affect cash. The Extraordinary Shareholders'
Summary of significant or relevant events
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
328
Meeting in 2025 must approve the statutory
adjustment regarding the currency in which the share
capital is expressed.
2025-2027 Strategic Plan
On November 15, 2024, Enel Chile S.A. reported to the
CMF as a significant event that its Board of Directors
approved the 2025-2027 Strategic Plan, which
anticipates a cumulative EBITDA of between US$4.4
billion and US$4.6 billion and a cumulative CAPEX of
US$1.8 billion. A presentation on this plan was offered
on November 21 and made available to investors,
shareholders, and the general public through the
Company's website.
Subsequent Fact
On February 26, 2025, Enel Chile S.A. informed the CMF
in a significant event that the Board of Directors agreed
to propose to the next Ordinary Shareholders' Meeting
the distribution of a final dividend of $72,556,076,401,
which represents 50% of the net profits of 2024. After
discounting the provisional dividend for January 2025,
the final amount to be distributed in May 2025 would
be $9,842,281,607, equivalent to $0.1423 per share.
Additionally, a proposed dividend of $221,042,199,313
will be introduced to offset an accounting loss
related to the functional currency exchange of Enel
Generación Chile S.A., amounting to $3.1958 per
share. The Ordinary Shareholders' Meeting will take
place on April 28, 2025, followed by an Extraordinary
Meeting on the same day.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Summary of significant or relevant events
329
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Information on shares
and other securities
Macroeconomic context
In 2024, the world economy experienced a moderate
recovery, contending with volatility and uncertainty
tied to various economic and geopolitical tensions.
The conflicts between Russia and Ukraine, along
with trade tensions in Asia, created uncertainty in
international markets, affecting investment flows
and the confidence of economic participants. This
exacerbated the rise in energy and transportation
costs, prompting the central banks of several countries
to maintain restrictive monetary policies in order to
control inflation.
Global economic growth reached 3.2% in 2024,
according to estimates from the International
Monetary Fund (IMF), while global inflation moderated
compared to previous periods, closing at an annual
rate of 5.9%. The U.S. economy, meanwhile, led growth
among major developed economies, benefiting from
more dynamic private consumption and a more
expansionary fiscal policy. In contrast, China faced
challenges stemming from its real estate market and
fiscal stimulus measures. At the same time, Asian and
Latin American economies benefited from increased
demand for raw materials and technology products.
At the national level, Chile exhibited a gradual recovery,
with a growth of Gross Domestic Product (GDP) of
approximately 2.6% in 2024, driven by the reactivation
of key sectors such as mining, construction, and
manufacturing. This recovery was supported by stable
external demand, particularly for mining exports.
Meanwhile, private consumption remained weak due
to high interest rates and uncertainty in the labor
market, coupled with expectations that persist in a
pessimistic outlook for the short and medium term.
Inflation in Chile continued its downward trajectory,
closing the year at 4.5%, which is close to the target set
by the Central Bank of Chile. This behavior allowed the
Monetary Policy Rate (MPR) to be gradually reduced to
5% in December 2024, partially alleviating pressures
on financial loans and favoring consumption toward
the end of the year.
In the stock market, the IPSA index registered a
recovery compared to last year, closing 2024 with a
return of 8%, fueled by the dynamism of companies
in the energy sector and the rise in investment in local
assets.
Enel Chile's share price exhibited a relatively stable
trend compared to 2023, showing a variation of 0.9%
in value. This performance was influenced by several
factors, including favorable hydrology in 2024, the
launch of new renewable projects, and extraordinary
weather events. Moreover, the diversification of Enel
Chile's energy portfolio, which includes the operation
of energy storage systems (BESS) associated with
new
renewable
generation
projects,
bolstered
the company's reputation in the financial market,
improving its competitive position against the
challenges expected in 2025.
Information on shares and other securities
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
330
Statistics on share prices
Variation
2024
2023
Accrued 2023-2024
ENELCHILE
0.9%
46.2%
47.5%
IPSA
8.3%
17.8%
27.5%
New York Stock Exchange (NYSE)
The following table shows the variation of Enel Chile's ADS listed on the NYSE (ENIC) and the Dow Jones Industrial
and Dow Jones Utilities indices over the past two years:
Variation
2024
2023
Accrued 2023-2024
ENIC
-12.0%
44.0%
26.7%
Down Jones Industrial
13.0%
13.7%
28.4%
Down Jones Utilities
11.5%
-8.9%
1.7%
Stock Exchange transactions
Below are detailed last year’s quarterly transactions carried out on the exchanges where Enel Chile's stock is listed,
both in Chile through the Santiago Stock Exchange and the Electronic Stock Exchange of Chile and in the United
States through the New York Stock Exchange (NYSE).
Santiago Stock Exchange
In 2024, 20,901 million shares, equivalent to Ch$1,111,749 million, were traded on the Santiago Stock Exchange.
The closing price of the stock in December 2024 was Ch$ 57.50.
Period
Units
Amount (Ch$)
Average price (Ch$)
2024
1st quarter 2024
4,264,695,926
238,052,629,441
55.82
2nd quarter 2024
4,351,694,743
241,923,872,273
55.59
3rd quarter 2024
6,218,812,930
310,083,905,999
49.86
4th quarter 2024
6,065,856,730
321,688,925,848
53.03
Total 2024
20,901,060,329
1,111,749,333,561
53.19
2023
1st quarter 2023
2,754,487,006
104,597,176,064
37.97
2nd quarter 2023
6,207,813,943
295,703,435,588
47.63
3rd quarter 2023
6,701,044,870
382,274,979,402
57.05
4th quarter 2023
4,005,100,592
220,925,349,195
55.16
Total 2023
19,668,446,411
1,003,500,940,249
51.02
Santiago Stock Exchange
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 past two years:
[NCG 461 - 2.3.4 iii b]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Information on shares and other securities
331
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Period
Units
Amount (Ch$)
Average price (Ch$)
2022
1st quarter 2022
6,511,954,236
178,361,077,368
27.39
2nd quarter 2022
7,220,382,065
161,311,854,612
22.34
3rd quarter 2022
9,141,681,318
260,757,865,488
28.52
4th quarter 2022
4,837,023,434
171,511,055,151
35.46
Total 2022
27,711,041,053
771,941,852,619
27.86
Period
Units
Amount (Ch$)
Average price (Ch$)
2024
1st quarter 2024
237,203,211
13,380,833,472
56.41
2nd quarter 2024
309,664,782
17,297,705,051
55.86
3rd quarter 2024
265,247,474
13,395,824,055
50.50
4th quarter 2024
309,800,811
16,368,414,349
52.84
Total 2024
1,121,916,278
60,442,776,927
53.87
2023
1st quarter 2023
350,196,326
13,287,599,319
37.94
2nd quarter 2023
539,003,038
25,904,030,325
48.06
3rd quarter 2023
852,394,342
47,638,609,731
55.89
4th quarter 2023
300,027,501
16,838,670,215
56.12
Total 2023
2,041,621,207
103,668,909,590
50.78
2022
1st quarter 2022
2,111,064,635
58,680,059,489
27.8
2nd quarter 2022
515,183,159
11,500,412,504
22.32
3rd quarter 2022
642,926,195
18,212,444,137
28.33
4th quarter 2022
395,608,976
14,131,187,160
35.72
Total 2022
3,664,782,965
102,524,103,290
27.98
Chilean Electronic Exchange
1,121 million shares were traded on the Electronic Stock Exchange of Chile in 2024, totaling Ch$60,442 million.
The closing price of the stock in December of the fiscal year was Ch$56.59.
New York Stock Exchange (NYSE)
The company's shares started trading on the New York Stock Exchange (NYSE) on April 27, 2016. An American
Depositary Share (ADS) of Enel Chile represents 50 shares, and its ticker symbol is ENIC. Citibank N.A. serves as the
depositary bank, while Banco Santander Chile acts as the custodian in Chile.
In 2024, 107 million ADS were traded in the United States, amounting to US$308 million. The price of ADS closed
in December at US$2.88.
Chilean Electronic Exchange
Information on shares and other securities
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
332
Period
Units
Amount (Ch$)
Average price (Ch$)
2024
1st quarter 2024
38,480,459
113,006,693
2.94
2nd quarter 2024
20,637,658
60,522,788
2.93
3rd quarter 2024
27,735,858
76,229,020
2.75
4th quarter 2024
20,945,048
58,439,529
2.79
Total 2024
107,799,023
308,198,030
2.86
2023
1st quarter 2023
22,113,460
50,271,573
2.27
2nd quarter 2023
76,494,243
232,243,562
3.04
3rd quarter 2023
92,942,138
312,995,801
3.37
4th quarter 2023
50,880,579
157,805,336
3.10
Total 2023
242,430,420
753,316,272
3.11
2022
1st quarter 2022
64,091,455
113,684,796
1.77
2nd quarter 2022
45,677,006
61,771,895
1.35
3rd quarter 2022
30,815,879
46,751,647
1.52
4th quarter 2022
38,460,905
73,719,792
1.92
Total 2022
179,045,245
295,928,130
1.65
New York Stock Exchange (NYSE)
Millions of Chilean pesos M$
Debtor
Company
Name
Country
Debtor
Company
Name of the
Creditor
Country
Creditor
Entity
Currency
Type
Effective
Interest
Rate
Nominal
interest
rate
Type of
Amortization
Guarantee
As of 31.12.2024
Total
current
Total Non-
Current
Total
Enel
Generación
Chile S.A.
Chile
BNY Mellon -
First S-1 Issue
USA.
US$
8.00%
7.87%
At maturity
No
6,732
204,915
211,647
Enel
Generación
Chile S.A.
Chile
BNY Mellon -
First S-2 Issue
USA.
US$
8.80%
7.33%
At maturity
No
2,153
69,576
71,729
Enel
Generación
Chile S.A.
Chile
BNY Mellon -
First S-3 Issue
E.E.U.U.
US$
8.68%
8.13%
At maturity
No
1,363
34,892
36,255
Enel
Generación
Chile S.A.
Chile
Banco
Santander 317
H-Series
Chile
UF
7.17%
6.20%
Semiannual
No
8,426
23,528
31,954
Enel
Generación
Chile S.A.
Chile
Banco
Santander 522
M-Series
Chile
UF
4.85%
4.75%
Semiannual
No
35,289
139,202
174,491
Enel Chile S.A.
Chile
BNY Mellon -
Unique
E.E.U.U.
US$
5.24%
4.88%
At maturity
No
2,564
985,628
988,192
Total
56,527
1,457,741
1,514,268
Other issued securities
Unsecured obligations with the public as of December 31, 2024:
*
As of December 31, 2024, and 2023, there are no secured obligations to the Public.
[NCG 461 - 2.3.5]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Information on shares and other securities
333
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Dividends
Dividend Distribution Charged to 2024 Profits
The Company's Board of Directors, during a meeting
on February 28, 2024, approved the Dividend Policy
and the related procedure for Enel Chile S.A.’s payment
of dividends for the 2024 financial year, which was
reported to shareholders at the Ordinary Shareholders'
Meeting on April 29, 2024. The policy stipulates that the
Board of Directors intended to distribute a provisional
dividend amounting to 15% of profits as of September
30, 2024, as reflected in the consolidated Financial
Statements for that date. This dividend is scheduled
for payment in January 2025. Additionally, there is an
intention to propose this distribution at the Ordinary
Shareholders' Meeting, which is to be convened
within the first four months of 2025. The proposal is
to allocate a final dividend corresponding to 50% of
the profits generated in 2024. The final dividend will
be defined by the Ordinary Shareholders' Meeting
scheduled for the first quarter of 2025. Adherence
to the specified program regarding dividends was
contingent upon the actual profits achieved alongside
the outcomes reflected in the periodic projections
made by the Company.
Additionally, it relied on the absence of particular
unexpected events within the relevant year that
might affect the previously mentioned projections, as
applicable.
On November 15, 2024, it was reported that based on
the financial results of Enel Chile S.A., a provisional
dividend of 15% of Enel Chile's accumulated net profits
as of September 30, 2024, would be distributed in
January 2025.
On November 7, 2024, the Board of Directors reached
a consensus to amend the Dividend Policy for 2024.
This modification involves the potential distribution
of any necessary dividends to uphold the previously
established payout ratio of 50%, which would have
been maintained had the accounting loss from the
functional currency exchange not been applied. The
eventual dividend will be evaluated at the end of the
financial year and will be presented for approval during
the meeting scheduled for the first four months of
2025. In light of the considerations above, during the
Board of Directors' meeting held on February 26, 2025,
a unanimous vote recommended the distribution
of a final dividend of $72,556,076,401 along with a
potential additional dividend of $221,042,199,313.
Dividend Policy 2025 and 2026
The Board of Directors will distribute a provisional
dividend, charged to the accumulated earnings up to
September 30, 2025, of up to 15% of these, as shown
in the Financial Statements of Enel Chile S.A. as of that
date, to be paid in January 2026.
The Board of Directors plans to present a proposal at
the Ordinary Shareholders' Meeting, scheduled for the
first four months of 2026, to allocate a final dividend
amounting to 50% of the profits produced in 2025.
The final dividend will be determined by the Ordinary
Shareholders' Meeting, scheduled to take place within
the first four months of 2026.
Adherence to the program above will depend on the
actual profits achieved and the outcomes reflected in
the periodic projections prepared by the Company.
Additionally, compliance will depend on the absence
of specific unforeseen conditions during the relevant
year that may affect the stated projections, as
applicable.
[NCG 461 - 2.3.4 ii]
Dividends
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
334
The
Board
of
Directors
will
provide
timely
communication regarding its dividend policy for 2026
upon approval.
Pursuant to Article 38 of the Bylaws, the Ordinary
Meeting is tasked with deciding on the Board of
Directors' proposal. This proposal will outline the
dividend amount to be distributed for the 2026
financial year, which is mandated to be no less than
30% of the net profits for that year unless there is a
unanimous agreement among the issued shares.
Should there be no accumulated losses, the Board of
Directors has the authority to distribute provisional
dividends throughout the year based on the profits
generated during that fiscal period.
Dividend payment procedure
For the payment of dividends, whether provisional or
final, and to prevent their improper collection, Enel
Chile S.A. outlines the following options:
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. The withdrawal of virtual checks can be made at
any branch of Banco de Crédito e Inversiones (BCI)
nationwide or at designated locations that will be
specified in the notification published regarding
the payment of dividends. If the virtual check is not
withdrawn, the nominee may collect the nominal
check at the offices of DCV Registros S.A., which
administers the shareholders' registry for Enel Chile
S.A.
Bank checking or savings accounts can be from any
location within the country for these purposes.
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 these deposits
for security reasons. If the accounts specified by the
shareholders are challenged, either during a prior
verification process or for any other reason, the
dividend will be paid in accordance with the modality
described in point No. 3 above. Simultaneously, the
Company has adopted and will continue to implement
all necessary security measures required by the
dividend payment process to protect the interests of
both the shareholders and Enel Chile S.A.
Dividends paid
Distributable profit for the 2024 financial year
The distributable profit for the 2024 financial year is as follows:
Distributable profit for the 2024 financial year
Millions of Ch$
Profit for the year (*)
145,112
Distributable profit
145,112
(*) Attributable to the parent company
[NCG 461 - 2.3.4 iii a]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Dividends
335
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Dividends distributed
The following table shows the dividends per share paid over the past few years:
Dividends distributed
Dividend No.
Type of dividend
Closing date of
the shareholder
register
Payment Date
Ch$ per
share
Dividend amount
paid in thousand
Ch$
% of net
profits
Charged to
year
8
Provisional
25-1-2020
31-1-2020
0.44723
30,933,437
30%
2019
9
Final
20-5-2020
27-5-2020
2.12182
57,912,645
9
Occasional
20-5-2020
27-5-2020
1.66096
88,846,081
-
(1)
10
Occasional
22-5-2021
28-5-2021
3.07740
212,853,281
-
(2)
11
Provisional
22-1-2022
28-1-2022
0.10497
7,260,512
30%
2021
12
Final
20-5-2022
27-5-2022
0.26437
18,285,678
13
Provisional
21-1-2023
27-1-2022
0.32409
22,416,356
30%
2022
14
Final
20-5-2023
26-5-2023
5.10663
353,208,322
15
Provisional
20-1-2024
26-1-2024
0.59781
41,348,740
50%
2023
16
Final
23-5-2024
29-5-2024
3.98139
275,379,148
17
Provisional
18-1-2025
24-1-2025
0.90671
62,713,795
50%
2024
(1) The Ordinary Shareholders' Meeting held on April 29, 2020, resolved to distribute mandatory minimum dividends (final No. 9), charged to the
profits of the 2019 financial year. In addition, to offset the impairment losses recorded by the subsidiary Enel Generación Chile during 2019, the
distribution of a potential dividend charged to the retained earnings of previous years was approved.
(2) The Ordinary Shareholders' Meeting held on April 28, 2021, resolved to distribute a dividend from the retained earnings of previous years to
offset the impairment losses recorded by the subsidiary Enel Generación Chile in 2020.
Dividends
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
336
Annual management report
of the Directors’ Committee
At the beginning of the 2024 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 the Financial Expert of this
corporate body. On April 29, 2024, after the Ordinary
Shareholders' Meeting held on the same day, said
entity appointed the directors Mrs. María Teresa Vial
Álamos, Mr. Pablo Cabrera Gaete, and Mr. Pablo Cruz
Olivos as members of the Directors' Committee,
pursuant to Law No. 18,046 on Corporations and the
Sarbanes-Oxley Act. At the same time, the Company's
Directors' Committee, in an ordinary session held on
April 29, 2024, appointed Ms. María Teresa Vial Álamos
as Chairperson of said body.
The Directors’ Committee met twelve times during
2024 in full compliance with the obligations set forth
in Article 50 bis of Law No. 18,046, the Sarbanes
Oxley Act of the United States of America, and other
applicable regulations.
In
2024,
the
Directors’
Committee
addressed
the matters within its sphere of competence, as
summarized below:
1. Financial Statements
In an ordinary session held on February 28, 2024, the
Company's Consolidated Financial Statements as of
December 31, 2023, its Notes, Income Statements,
and Significant events, as well as the Reports of the
External Auditors and the Auditors on the subject,
were declared examined.
In an ordinary meeting held on April 29, 2024, the
Directors’ Committee declared that the Company's
Consolidated Financial Statements as of March 31,
2024, its Notes, Income Statements, Significant
Events, and the Report on Related Party Transactions
had been examined.
In an ordinary meeting held on July 23, 2024, the
Directors’ Committee declared that the Company's
consolidated financial statements as of June 30, 2024,
its Notes, Reasoned Analysis, Income Statements,
and Significant Events, as well as the opinion of the
External Auditors issued "without qualification" had
been examined.
In an ordinary meeting held on October 29, 2024,
the Directors’ Committee declared the Company's
consolidated financial statements as of September 30,
2024, its Notes, Income Statements, and Significant
Events examined.
2. Analysis of fees for services provided by
external auditors in 2024
During the ordinary session held on January 25, 2024,
the Directors’ Committee agreed to declare the fees
paid for services rendered by external auditors during
the 2024 fiscal year as reviewed.
3. Non-recurrent services provided by
External Auditors
During the ordinary session held on January 25, 2024,
an analysis was conducted regarding the services to
be provided by external auditors, specifically those
that fall outside of regular external audits. It was
concluded that these services do not compromise the
technical suitability or the independence of judgment
of the external audit firms involved in delivering these
services. This document aligns with Section 202 of
the Sarbanes-Oxley Act, Article 242, final clause, of
Law No. 18,045, Securities Market Law, as well as the
Regulations of the Board of Directors.
[NCG 461 - 3.3 iv]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Annual management report of the Directors’ Committee
337
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
4. External Auditors’ Review of NCG
Matters No. 461 CMF.
In an ordinary meeting held on February 28, 2024, the
Directors’ Committee declared that the presentation
made by the company's External Auditors had been
examined concerning the voluntary matters of good
corporate governance outlined in numeral 1 d) of
General Rule No. 385 of the CMF, now repealed, and
that, according to the provisions of General Rule No.
461, the Company has decided to continue abiding.
5. External Auditors Supervision and
Evaluation
In an ordinary meeting held on February 28, 2024, the
Directors' Committee agreed to rate the work carried
out during the 2023 financial year as satisfactory by
the Company's External Auditors, KPMG Auditores
Consultores Limitada.
6. External auditors’ Report on Bank Draft
and Money Brokerage.
In an ordinary meeting held on February 28, 2024,
the Directors’ Committee acknowledged that it
had formally and explicitly recognized the Report
on Money Brokerage, Bank Drafting, and Securities
Intermediation, prepared by the External Auditors of
Enel Chile S.A., KPMG Auditores Consultores Limitada.
7. Self-Evaluation Report on the Financial
Reporting Internal Control System.
In an ordinary meeting held on February 28, 2024,
the Directors’ Committee agreed to declare the
self-assessment report on the internal control
system examined, providing an account of the self-
assessment process conducted during the 2023
financial year, its results, the deficiencies identified,
and the actions needed for plans.
8. Directors’ Committee’s Budget
On February 28, 2024, during an ordinary meeting
session, the Directors’ Committee approved the
proposal for the Directors’ Committee Budget for the
2024 fiscal year, amounting to 10,000 UF to cover the
expenses and operations of the Directors’ Committee
and its advisors. Additionally, the Directors' Committee
decided to submit this budget proposal to the Board
of Directors. If the Board chooses, it may then present
it to the Company's Ordinary Shareholders' Meeting
for a final decision on the matter in accordance with
its authority.
9. Form 20-F (Securities and Exchange
Commission) of the United States of
America.
In an ordinary meeting on April 29, 2024, the
Directors’ Committee unanimously declared that it
had examined the financial statements under IFRS
incorporated in Form 20-F so that they 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 February 28, 2024,
the Directors’ Committee examined the transaction
with related parties consisting of structuring and
obtaining new financing, in accordance with the
following terms and conditions: (i) Total amount:
US$200 million, plus expenses, commissions and
taxes; (ii) Counterparts: Enel Finance International
NV (for up to US$50 million) and a group of
financial institutions that were requested to
quote and have submitted bids at the interest rate
indicated below; (iii) Currency: Dollars; (iv) Maturity:
up to 36 months; (v) indicative rate: SOFR + 100
bps; (vi) "up-front fee": 50 bps; (vii) "Commitment
fee" (% on margin): 30%; (viii) warranty: none;
(ix) Legislation: law of New York, Italy and/or the
countries determined in the credit agreement. If
required, promissory notes governed by Chilean
law will be granted.
• In an ordinary meeting held on February 28,
2024, the Directors’ Committee declared that the
transaction with a related party consisting of the
signing of a contract for the supply of Microsoft
software licenses and services between Enel Chile
Annual management report of the Directors’ Committee
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
338
S.A., as the recipient, and Enel Global Services SRL
had been examined.
• In an ordinary meeting held on February 28, 2024,
the Directors’ Committee declared that it had
examined the transaction with a related party
involving the signing of contracts for the supply
of staff services between Enel Chile S.A. and the
following subsidiaries or affiliated companies:
Enel Generación Chile S.A., Enel Green Power
Chile S.A., Empresa Eléctrica Pehuenche S.A., and
Enel Américas S.A receivers.
• In an ordinary meeting held on March 27, 2024,
the Directors’ Committee declared that the
transactions with related parties consisting of the
modification and updating of the contract for the
supply of staff services between Enel Chile S.A., as
a supplier, and the following subsidiaries or related
companies had been examined: Enel Distribución
Chile S.A., Enel X Chile S.p.A., Enel Mobility Chile
S.p.A., and Enel X Way Chile S.p.A., as recipients.
• In an ordinary meeting held on March 27, 2024,
the Directors’ Committee declared that the
transaction with related parties consisting of
the signing of a contract for the supply of staff
services between Enel Chile S.A., as supplier, and
Enel Generación Piura S.A., as recipient, had been
examined.
• In an ordinary meeting held on March 27, 2024, the
Directors’ Committee declared the transaction
with related parties consisting of structuring and
obtaining new financing under the following terms
and conditions: (i) Total amount: US$700 million;
(ii) counterpart: Enel Finance International (EFI); (iii)
Currency: dollars; (iv) Maturity: Up to 2 years; (v)
All-in spread + up-front cost: Term-SOFR + 145;
(vi) Warranties: None; and (vii) Legislation: Italian.
If required, promissory notes governed by Chilean
law will be granted.
• In an ordinary meeting held on May 28, 2024,
the Directors’ Committee declared that the
transaction with related parties consisting of
signing the regulated electricity supply contract
and connection works with Enel Distribución Chile
S.A. had been examined.
• In an ordinary meeting held on June 25, 2024,
the Directors’ Committee declared that the
transactions with related parties consisting of the
respective modifications of two contracts for the
supply of ICT computer services between Enel
Chile S.A., as a supplier and Enel Generación Chile
S.A. and Enel Green Power Chile S.A. had been
examined.
• In a routine meeting held on July 23, 2024,
the Directors’ Committee announced that the
transaction involving a centralized cash agreement
between Enel Chile S.A. and Enel X Way Chile S.p.A.
had been reviewed and will be approved by the
Company's Board of Directors once the Company is
legally established. This agreement will need to be
updated periodically according to the procedure
previously approved by the Board of Directors.
Additionally, the method to establish the interest
rate applicable to structured loans, which was
previously approved by the Board of Directors, will
also be applicable.
• In an ordinary meeting held on July 23, 2024, the
Directors’ Committee declared that the transaction
with a related party, consisting of a framework
agreement for the purchase and installation of
electric chargers between Enel Chile S.A. as the
buyer and Enel X Way Chile S.p.A. as the seller and
installer, for an approximate amount of nine million
pesos per charger and its installation, had been
examined, along with an annual automatic renewal.
This framework agreement will be used for up to 50
shippers, provided the quotations do not vary by
more than 20%.
• In an ordinary meeting held on August 27, 2024,
the Directors’ Committee declared that the
transaction with related parties, which involved
signing a customer contract between Enel Chile
S.A. as the buyer and the related company Enel
Generación Chile S.A. as the supplier, for an
approximate amount of US$560,383, had been
examined for 18 months from September 1,
without automatic renewal.
11. Proposal of Private Risk Rating
Agencies
In an ordinary meeting held on February 28, 2024,
the Directors’ Committee agreed to propose to
the Company's Board of Directors the firms Feller
Rate Clasificadora de Riesgo Limitada and Fitch
Chile Clasificadora de Riesgo Limitada as private
national risk rating agencies, and Fitch Ratings and
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Annual management report of the Directors’ Committee
339
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Standard & Poor's International Rating Services
to be suggested at the respective shareholders'
meeting as private international risk classifiers for
the 2024 financial year.
12. Proposal of External Auditors.
In an ordinary meeting held on March 27, 2024, the
Directors' Committee agreed to propose to the Board
of Directors that KPMG Auditores Consultores Limitada
be nominated as the external auditor for Enel Chile
S.A. for the 2024 financial year based on the following
grounds: (i) KPMG's proposal is the most competitive
according to the technical and economic evaluation
conducted; (ii) it has high qualifications in terms of
available resources and experience in the electricity
sector; (iii) it ranks among the four most significant
auditing firms both nationally and internationally; (iv) it
is the auditor with the highest level of synergy for Enel
Chile S.A., as KPMG is also the external auditor for Enel
S.p.A., the controller of Enel Chile S.A. Additionally, the
following order of priority was established: (i) KPMG
Auditores Consultores Limitada, (ii) Forvis Mazars
Auditores Consultores Limitada, (iii) Grant Thornton
Chile Auditoría y Servicios Limitada, and (iv) PKF Chile
Auditores Consultores Ltda.
13. Ordinary External Audit Contract.
In an ordinary meeting held on May 28, 2024, the
Directors' Committee declared examined the contract
to be signed between Enel Chile S.A. and the external
auditors KPMG Auditores Consultores Limitada.
14. Remuneration system and
compensation plan for the Company's
managers, senior executives, and
employees.
In an ordinary meeting held on June 25, 2024, the
Directors’ Committee declared that the compensation
systems and compensation plan of the Company's
managers, senior executives, and employees had been
examined.
15. Presentations on sustainability.
In an ordinary meeting held on May 28, 2024; June 25,
2024; September 27, 2024; and November 15, 2024,
the Directors' Committee agreed to officially note
that it had formally acknowledged the Company's
presentation on sustainability matters.
16. Complaints presented through the
Ethics Channel.
In ordinary meetings held on June 25, 2024, and
December 17, 2024, the Directors’ Committee
expressed its opinions on the complaints presented,
providing directives for each and confirming what
had been resolved by said body. The Chairman of the
Directors’ Committee will be responsible for convening
an extraordinary session if the Committee deems a
complaint warrants it.
17. Statement on Routine Operations
Policy.
In an ordinary meeting held on July 23, 2024, the
Directors' Committee agreed to declare the update of
the Company's Regular Operations Policy examined
and to rule favorably on the new text.
Expenses of Enel Chile S.A.’s Directors’
Committee
The Directors' Committee did not use the operating
expenses
budget
approved
by
the
Ordinary
Shareholders' Meeting on April 29, 2024.
Annual management report of the Directors’ Committee
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
340
Risk factors
[NCG 461 - 6.2 viii]
Significant risks related to Enel Chile's business
Enel Chile's operations are heavily reliant on
hydrological conditions. They are influenced by
droughts, floods, storms, ocean currents, and other
persistent changes in climate and meteorological
conditions resulting from climate change.
Enel Chile's businesses face significant medium-
and long-term risks due to the global challenge of
climate change. The generation industry has faced
challenges in the past and may encounter further
difficulties in the future due to dry hydrological
conditions. These conditions have significantly
impacted and could continue to affect the efficient
distribution of power from hydroelectric generation
facilities.
Chile's
consistently
below-average
hydrological conditions have adversely affected our
operations and results since 2007.
Chile's hydrological conditions are influenced by El
Niño and La Niña climate phenomena, which can bring
droughts or floods based on the impacted location.
El Niño has historically impacted hydrological
conditions in Chile, resulting in precipitation
shortfalls, high temperatures, and increased energy
prices in some years and abnormally heavy rainfall,
floods, and landslides in others.
In 2024, El Niño led to intense precipitation over
the fall and winter months, exceeding Chile's
usual reservoir levels and boosting hydropower
generation. However, overall hydrological conditions
in Chile remained exceptionally dry.
The Subsidiary, Enel Generación, signed agreements
with the Chilean government and local irrigators to
regulate water usage for hydroelectric generation
during periods of low water levels. However, if
drought conditions continue, the Company will
face. It may continue to face increased pressure
from the Chilean government or third parties to
restrict further water usage, which could materially
adversely affect the business and operating results.
The distribution business is also affected by
inclement weather. With extreme temperatures,
the electricity demand can increase significantly in
a short period, affecting the service and causing
service outages that have and could, in the future,
lead to fines for the distribution business. In
addition, with an increased severity and frequency of
extreme weather events, heavy rain or snowfall can
occur quickly and be accompanied by windstorms
and lightning. These events can damage power
distribution infrastructure and lead to outages.
As a result, depending on weather conditions, the
results obtained by the distribution business can
vary significantly from year to year.
On August 1 and 2, 2024, the Santiago Metropolitan
Region experienced a severe and unpredictable
storm with winds reaching up to 124 kilometers
per hour. This storm knocked down over 2,000
trees, 800 utility poles, and large branches, causing
significant damage to the overhead electricity
distribution grids. The extent of the damage was
comparable only to that which occurred during
the 2010 earthquake in Chile. The storm led to
widespread power outages across Enel Distribución
Chile's concession area. While Enel Distribución
Chile mobilized all available resources as required
[NCG 461 - 6.2 viii]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk Factors
341
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
by Chilean law and implemented special measures
to restore power to its customers as quickly as
possible, several areas in the concession region
were left without power for an extended duration,
in some cases exceeding 15 days. Consequently,
the Chilean government has initiated an ongoing
investigation to assess whether the actions taken
by Enel Distribución Chile met the requirements of
the concession, given that thousands of customers
experienced prolonged service outages after
the storm. Noncompliance with the concession
requirements could lead to the revocation and
termination of public service concessions. To date,
Enel Distribución Chile has not received any legal
notification regarding an administrative process
aimed at declaring the expiration of its public
service concessions for electricity distribution.
On January 22, 2025, the Superintendency of
Electricity and Fuels (SEC) fined Enel Distribución
Chile Ch$18.8 billion (US$19 million) for four
violations related to prolonged power outages
caused by the August 2024 storm: inadequate
maintenance of its infrastructure, delays in restoring
service, failure to provide timely information to the
government, and a lack of an adequate system for
receiving customer complaints and reporting power
outages. Subsequently, Enel Distribución Chile filed
an appeal requesting that the SEC reconsider the
charges and reduce the fine, which is still pending.
At the same time, on February 5, 2025, Enel
Distribución Chile announced an agreement with
the National Consumer Service to voluntarily
compensate more than 800,000 customers whose
service was affected by the storm that occurred on
August 1 and 2, 2024. If approved by the Chilean
courts, the total compensation will be Ch$17.1 billion
(US$17.6 million), and payment would start in June or
July 2025.
Operating costs also increase during these dry spells
when thermoelectric power plants are dispatched
more frequently, with operating costs higher
than those of their hydroelectric counterparts
to compensate for the shortfall in electricity
generation from reduced hydropower generation. In
addition, thermal power plants generate greenhouse
gas (GHG) emissions. Electricity may need to be
purchased on the spot market at a higher price to
meet the supplies the Company is contractually
bound to. Apart from increasing operating costs,
the cost of buying electricity under these conditions
has been and could be in the future higher than the
price at which it must sell the contracted electricity,
which would result in losses on these contracts.
For example, in 2022, prices in the spot market
reached all-time highs, leading to losses on specific
agreements.
Droughts also indirectly affect the performance of
thermoelectric power plants, mainly facilities that
use natural gas or diesel. Thermoelectric power
plants require water for cooling, and extreme
drought reduces water availability and increases
transportation costs. As a result, the Company
has had to purchase water from agricultural areas
that also suffer from water scarcity to operate the
thermoelectric power plants. These water purchases
have and may continue to increase operating costs
and would force Enel Chile to negotiate with local
communities. If these negotiations are unsuccessful,
the Company might not obtain the water needed to
operate its thermoelectric power plants.
It could take a long time for the Company to fully
recover from current or future droughts and their
effects on the Chilean regions where most of its
hydroelectric plants are located. It could not be
assured that hydrological conditions will recover
under pre-drought conditions or that any recovery
will occur at all. Climate change may increase the
likelihood of prolonged droughts that exacerbate
the risks described above, which would adversely
affect the business, operating results, and financial
condition.
Non-conventional renewable energy companies
also face potential physical, operational, and
financial risks associated with climate change
impacts.
The electricity produced by solar and wind generation
facilities relies heavily on climate-related factors
Risk Factors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
342
beyond hydrology, including appropriate solar and
wind conditions, which can be pretty variable even
under normal operating circumstances. Climate
change can also have long-term effects on wind
patterns and the amount of solar energy received
at a given solar installation, reducing or increasing
the production of electricity generated by these
installations. Although the Company bases its
business decisions for each renewable energy facility
on solar and wind studies, actual conditions may
not match the conclusions of these studies. Solar
and wind conditions can be negatively affected by
changes in weather patterns, including the potential
impact of climate change.
If renewable energy production falls below forecast
levels, the Company may need to dispatch electricity
from its backup thermoelectric power plants to
make up for the shortfall in electricity generation.
Thermoelectric power plants have higher operating
costs than their renewable energy facilities and
emit greenhouse gases (GHG). Additionally, the
Company has previously purchased and may have
to buy electricity on the spot market in the future
to fulfill its contractual obligations for solar and
wind generation facilities, which could come at
prices exceeding the contracted electricity sales
prices. This situation could lead to losses on these
contracts. Such impacts have already increased
future costs and could continue to cause losses,
adversely affecting the business, operating results,
and financial condition.
Enel Chile relies on the payments it receives from
its subsidiaries to fulfill its financial obligations.
To meet its payment obligations, the Company
depends on cash distributions such as dividends,
loans,
interest
payments,
capital
reductions,
and other allocations from subsidiaries. These
payments and disbursements are subject to
legal constraints, including dividend restrictions,
fiduciary responsibilities, contractual limitations,
and exchange controls imposed by local authorities.
The ability of Enel Chile's subsidiaries to distribute
dividends, repay debts, or make other payments to
Enel Chile is limited by the results of their business
activities. If any of the Company's subsidiaries have
cash needs that exceed their available funds, the
Company will be unable to obtain resources from
those subsidiaries. Insufficient cash flows from
subsidiaries may impede their ability to meet their
debt obligations, forcing them to seek waivers to
comply with certain debt covenants. Additionally,
these subsidiaries may require guarantees or
other contingency measures from Enel Chile as
shareholders to some extent.
The inability to obtain disbursements from the
subsidiaries described above could negatively
impact the business, operating results, and financial
condition.
The construction and operation of power plants
may face considerable delays or become halted,
leading to cost overruns or resistance from major
stakeholders. This could damage Enel Chile's
reputation and result in a loss of credibility.
Power plant projects might encounter delays in
securing permits from regulators, face shortages in
equipment and materials or labor, experience rising
costs, and be subject to construction setbacks,
strikes, accidents, or human error. Any of these
events could negatively impact the operating results
and financial condition.
Market conditions at the time of initial project
approval may differ significantly from those
present at the time of completion. In some
instances, such projects may become commercially
unviable. Variations in market conditions, including
projections of timelines and estimates of expenses
related to these projects, can result in cost overruns
and longer lead times than initially anticipated,
which, in turn, may negatively affect the business,
operating results, and financial conditions.
New projects can be developed in areas with complex
topographies, such as mountainsides, high altitudes,
or other locations with limited access. Furthermore,
due to the nature of some sites, additional risks may
be present in archaeological heritage areas. These
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk Factors
343
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
factors can also contribute to significant delays and
cost overruns.
The operation of thermoelectric power plants may
also affect the company's reputation with relevant
stakeholders due to greenhouse gas emissions
that could negatively affect the environment and
residents. Communities may have agendas and
perceptions that differ from the company’s views
and may be influenced by other stakeholders
or motivations outside the project. Therefore, if
the company fails to engage with the relevant
stakeholders, it could face their opposition, which
could harm its reputation and operations or lead to
the threat of lawsuits or legal action.
Enel Chile's reputation forms the foundation of its
relationship with key stakeholders and other relevant
market players. Any damage to this reputation could
exert significant pressure on regulatory authorities,
creditors, and other participants and ultimately lead
the company to abandon projects and operations.
This would cause the share price to decline and
compromise the ability to attract and retain
valuable employees. Any of these scenarios could
result in a loss of commercial capital gain in the
eyes of important players. If these sensitive issues
are not managed effectively, they could negatively
impact the business, operating results, and financial
condition.
Fluctuations in the market prices of certain
commodities, energy, and other factors affect
long-term electricity supply contracts.
Due to its commitment to long-term electricity sales
agreements, the company faces the risk of price
volatility in certain commodities. The generation
subsidiaries have significant obligations under these
contracts, which include pricing linked to various
commodities, exchange rates, inflation, and the
market price of electricity. Any adverse changes in
these factors may reduce the fees stipulated in these
contracts, thus negatively affecting the Company's
revenues, operating results, and financial condition.
The Company faces growing risks in the increasingly
liberalized distribution markets.
Eligible customers can choose regulated or non-
regulated tariffs within the distribution industry
based on specific criteria. They are required to notify
the change 12 months in advance and maintain the
new regime for a minimum of 4 years.
Since 2016, many consumers who voluntarily
opted to receive feed-in tariffs have shifted to
the non-feed-in tariff system due to lower rates.
These customers submit their electricity needs,
either independently or in collaboration with other
customers, under the non-regulated tariff system.
The regulated tariffs are currently higher than
the non-regulated tariffs due to the former being
established by contracts tendered in the past at
higher prices. Additionally, in November 2024, the
Ministry of Energy published Exempt Resolution No.
58, which lowers the minimum connected capacity
requirement for customers wishing to opt for
unregulated tariffs from 500 kW to 300 kW. This
change, combined with the reduction in market
prices, may lead to a decrease in the number of
customers selecting regulated tariffs. Customers
who switch to unregulated rates can also choose
an alternative energy provider, distinct from one of
the generating subsidiaries, which could negatively
impact the business, operating results, and financial
situation.
If third-party electricity transmission facilities,
pipeline infrastructure, or fuel supply contracts
do not provide adequate service, the Company's
delivery of electricity to its end customers may
become impossible.
Enel Chile depends on transmission systems owned
and operated by unrelated companies to deliver the
energy it sells. This reliance exposes the company
to various risks. If transmission is interrupted
or capacity is insufficient, selling and supplying
electricity may become impossible, particularly for
electricity generated by solar and wind farms, which
require more flexibility. If the power transmission
Risk Factors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
344
infrastructure in a region is inadequate, recovering
selling costs and utilities could be difficult.
Furthermore,
if
a
restrictive
rule
regarding
transmission prices is enacted, the transmission
companies involved may lack sufficient incentives to
invest in expanding their infrastructure. This could
negatively affect operations and financial results
or impede the ability to execute the pipeline of
projects under development.
The construction of new transmission lines may take
longer than in the past, primarily due to new social and
environmental requirements that create uncertainty
about project execution timelines. Consequently,
renewable energy generation projects are being
completed at a faster pace than new transmission
projects, resulting in a backlog of electricity that is
challenging to transmit through existing systems.
Additionally, thermal power plants connected to
natural gas pipelines may face shutdowns in the
case of significant disruptions to the pipeline.
Such shutdowns could compel the company to
purchase electricity at spot market prices, which
might exceed the fixed selling price contracted
with customers. Moreover, we may have to dispatch
electricity from our natural gas power plants using
LNG, which is transported on barges and is more
costly compared to natural gas transported from
Argentina via these pipelines, potentially increasing
our operating expenses. These scenarios could
negatively impact the business, operating results,
and financial situation.
Labor disputes, difficulties in achieving satisfactory
collective bargaining agreements with unionized
employees, or challenges in attracting, training,
and retaining key employees could negatively
affect the business, operating results, financial
condition, and reputation.
Enel Chile's business depends on attracting and
retaining many highly specialized employees, and a
large percentage of employees are union members
and have collective bargaining agreements that
must be renewed regularly. The business, financial
condition, and operating results could be adversely
affected if the Company fails to reach agreements
with any of the unions representing such employees
or if it enters into any collective bargaining agreement
that stipulates terms that are deemed unfavorable.
Chilean law provides legal mechanisms for courts
to impose collective bargaining agreements if the
parties fail to reach an agreement. Certain actions
such as strikes, work stoppages, or interruptions by
these unionized employees could adversely affect
the business, operations, financial condition, and
reputation.
The Company may also face a shortage of qualified
key personnel to the point where it cannot hire
new employees for vital positions. There are no
guarantees that it can attract, train, or retain key
staff members or that it can do so without incurring
costs or delays, which could adversely impact the
business, operational results, financial condition,
and reputation.
Disruptions or failures of information technology,
control, and communication systems, or external
attacks or invasions of these systems, could
adversely
affect
operations,
outcomes,
and
financial conditions.
The
industry
depends
on
the
continuous
operation of advanced information, control, and
communication technologies (IT systems) and grid
infrastructure. Enel Chile also utilizes IT systems
and related infrastructure to create, collect, use,
disclose, store, dispose of, or process sensitive
information, including company data, customer
data, and personal information about customers,
employees and their dependents, contractors,
shareholders, and others. IT systems are critical to
controlling and monitoring power plant operations,
maintaining generation and grid performance,
overseeing smart grids, managing billing processes
and
customer
service
platforms,
achieving
operating efficiency, and meeting service objectives
and standards in the generation and distribution
businesses. The operation of the generation system
depends not only on the physical interconnection of
the facilities with the infrastructure of the electricity
grids but also on the communication between
the various parties connected to this network.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk Factors
345
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
The reliance on IT systems to manage information
and communications between these parties has
increased significantly since the introduction of
smart meters and grids in Chile.
Generation and distribution facilities, IT systems,
operations technology systems (OT Systems),
and other infrastructure, along with information
processed in digital assets, may be impacted by
cybersecurity incidents, including those resulting
from human error. Cybersecurity incidents have
evolved dramatically in recent years, increasing
exponentially in both frequency and impact. The
industry is witnessing a rise in the volume and
sophistication of cybersecurity-related incidents
due
to
international
activist
organizations,
states, and individuals. These incidents can harm
businesses by limiting generation capabilities,
causing delays in the development and construction
of new facilities or capital improvement projects at
existing sites, disrupting customer operations, or
exposing them to various events that could increase
liability. Generation and distribution systems are
interconnected. Given the critical role of electricity
in modern society, widespread or prolonged
disruptions stemming from cybersecurity incidents
affecting the electricity transmission grid, grid
infrastructure, fuel sources, or the operations of
third-party service providers could have significant
socio-economic repercussions on households, vital
companies, and institutions, ultimately impacting
businesses negatively.
The business also requires the collection and
storage of personally identifiable information from
customers, employees, and shareholders, who
expect their privacy to be adequately protected.
Cybersecurity breaches may expose the Company
to the risk of loss or misuse of confidential and
proprietary information. Theft, loss, or significant
fraudulent use of information or any unauthorized
disclosure of personal or sensitive data can lead
to high costs for notifying and protecting affected
individuals. This could result in substantial litigation,
losses, liabilities, fines, or penalties, any of which
may materially and negatively affect your operating
results and reputation. You may also need to incur
considerable costs associated with government
actions in response to such intrusions or to
strengthen digital assets.
In
this
context,
effective
cybersecurity
risk
management requires a long-term strategy that
utilizes a proactive approach and iterative actions
taken over time. Addressing cyber risk with a
single initiative may not be an efficient or effective
strategy for managing and reducing cybersecurity-
related risks. Although the Enel Group has adopted
a "Cybersecurity Framework" to guide and manage
cybersecurity processes and has established its
Organizational Model for the implementation
of these processes, it may still be vulnerable to
cybersecurity incidents and other threats. These
potential incidents and associated regulatory
measures could lead to a significant reduction in
revenue and additional costs, including penalties,
third-party claims, repairs, heightened insurance
expenses, litigation, notifications, remediation,
security, and compliance costs.
The use of artificial intelligence ("AI") technology
poses risks to the business.
The Enel Group, including Enel Chile, is exploring
opportunities to integrate AI across all areas of
the business to enhance operational efficiency,
optimize energy resource management, and create
new, increasingly sustainable solutions. Given the
rapid evolution of AI technologies and an uncertain
regulatory landscape, it will be essential to identify
and mitigate each associated risk effectively. The
misuse of AI by employees or external providers, the
use of AI in a cyberattack, or unpredictable behaviors
and decision-making by AI could jeopardize IT
systems, operations, and confidential information,
potentially leading to additional security risks for
the systems and other unforeseen outcomes. Any of
these events could adversely impact the business,
operational results, financial status, and reputation.
The
Company
began
exploring
potential
future interest from investors, stakeholders,
and
regulatory
agencies
in
environmental,
sustainability, and governance ("ESG") practices
Risk Factors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
346
and commitments. Failing to disclose, adhere
to, or engage with ESG policies or commitments
could harm the company's reputation, investment
in common stock and ADS, or its ability to access
capital markets.
The objective is for power generation facilities
to achieve net-zero CO2 emissions (scope 1) by
2040 through reductions in carbon emissions. The
Company is continually assessing the operational
and financial feasibility of implementing more
aggressive measures to lower greenhouse gas
emissions. Our strategic plan to shift from fossil
fuel-based generation to renewable generation
that produces zero carbon emissions will help
us meet our goals for reducing CO2 emissions.
However, attaining these objectives depends on
various external factors, such as advancements
in relevant energy technologies and our ability to
execute the capital investment strategy. These
efforts may influence the operation of electricity-
generating units and create increased competition
and regulation, all of which could materially affect
operations and financial standing.
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 meet new ESG expectations could harm our
reputation, negatively impact our ability to attract
and retain customers and employees, and expose us
to legal and regulatory proceedings and increased
scrutiny from a variety of stakeholders. Some
stakeholders may disagree with our ESG-related
goals and commitments, which may adversely affect
our business, our reputation, and the pricing of our
securities.
The ability to effectively implement the strategic
plan,
which
includes
transitioning
generation
facilities and achieving CO2 emission reduction
targets,
can
influence
the
perceptions
and
actions of customers, investors, policymakers, and
regulators. If they hold or develop a negative view
of us due to increasing scrutiny of ESG practices or
failing to meet our stated ESG commitments, this
could result in higher costs related to regulatory
oversight and complicate companies' efforts to
secure regulatory agreements. An amplified focus
on activism related to ESG and similar issues can
create challenges in accessing capital, as investors
might choose to reallocate their resources or refrain
from committing capital based on their evaluation
of our ESG practices. Any of these outcomes could
negatively affect our reputation, investments in
securities, or access to capital markets, ultimately
affecting our operating results, financial position,
and liquidity.
The Company might struggle to make suitable
acquisitions
or
to
effectively
integrate
the
businesses we acquire.
On an ongoing basis, the Company conducts
mergers and evaluates acquisition prospects to
expand operations, which may enhance market
coverage
or
create
synergies
with
existing
businesses. However, it cannot guarantee that it will
be able to identify and acquire suitable companies
in the future. Acquiring and integrating independent
companies we do not control can be a complicated,
costly, and time-consuming process that may strain
resources and relationships with employees and
customers.
These mergers and acquisitions may ultimately
fail or not obtain the expected benefits, and they
may face delays or difficulties in integrating their
operations due to several factors, including:
• inconsistencies in rules, controls, procedures and
policies, company cultures, and remuneration
structures;
• difficulties
in
integrating
various
business-
specific procedures and operating systems, as
well as financial, accounting, information, and
other systems;
• complications
in
retaining
key
employees,
customers, and suppliers;
• unexpected transaction costs or failures to assess
value or adequately project potential benefits and
synergies; and
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk Factors
347
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
• distraction
of
managers
from
their
other
responsibilities.
Any of these risks arising in the integration
process could adversely affect revenues, expenses,
operating results, and financial standing.
Significant risks related to regulatory
matters
Government regulations can impact businesses, lead
to delays, obstruct the development of new projects,
or raise operating costs and capital investments.
Electrical
companies
are
subjected
to
strict
regulations, regular inspections, and audits. The fees
imposed on customers stem from a tariff-setting
process defined by regulators, which may impede
profitability. Additionally, the business is sensitive to
governmental decisions related to major rationing
policies during droughts or extended power outages,
along with regulatory shifts that could adversely affect
future operations and profit margins.
For example, amid the social crisis that began in
October 2019, the government enacted Law No.
21.185, which established a transition mechanism to
stabilize electricity prices for customers under the
regulated price system. This mechanism removes the
9.2% price increase that would have affected regulated
customers as of July 2019. It defers the price increase
for the sale of electricity under contracts between
generating companies and distributors that are set to
take effect before 2021.
The NEC implemented a financing program for price
stabilization, funded by companies in the generation
sector, including subsidiaries Enel Generación Chile
and EGP Chile, through accounts receivable from
differences between contractual rates and stabilized
rates. The stabilization fund's maximum amount of
$1.35 billion was reached ahead of schedule in January
2022.
In July 2022, Chile's Congress passed Law No. 21,472,
which complements Law No. 21,185 by creating a
new stabilization fund program and establishing a
transition mechanism to stabilize electricity prices
for customers under the regulated price system.
The mechanism aims to limit increases in electricity
bills for regulated customers during 2022, allowing
these increases to occur gradually over the next 10
years. Accounts receivable balances must be paid by
December 31, 2032, and are backed by a 100% tax
guarantee. The stabilization fund program established
by Law No. 21.472 reached its maximum amount of
US$1.8 billion in February of 2024.
In April 2024, Law No. 21,667 was enacted, which
prevents generating companies from accumulating
debt due to prices being stabilized under the regulated
price system. Under this law, tariffs for customers
subject to price regulation will be gradually adjusted to
reflect the actual costs of energy, allowing generating
companies to recover the balances accrued from the
price stabilization mechanisms established by Laws
No. 21,185 and No. 21,472.
Law No. 21,667 increases the stabilization fund
established under Law No. 21,472 to US$5.5 billion, of
which US$3.7 billion will receive a 30% fiscal guarantee.
These account receivable balances must be paid by
December 31, 2035, at the latest.
Due to the tariff increases implemented by Lex No.
21,667, the Chilean government proposed a new
electricity subsidy to protect the most vulnerable
customers. The Chamber of Deputies of the Chilean
Congress approved a bill to finance the subsidy,
which includes a temporary surcharge on the "green
tax, " paid by generating companies based on CO2
emissions measured from power plants from 2024 to
Risk Factors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
348
2026. The surcharge would be paid by the generating
companies during this period.
The application of the aforementioned laws increased
current and non-current accounts receivable, financial
income, and financial costs for the year ending
December 31, 2024.
Enel Chile's operating subsidiaries are also subject
to environmental regulations that, among other
requirements, mandate conducting environmental
impact studies for future projects and obtaining
construction and operating permits from local and
national regulatory agencies. Government authorities
may deny or delay approval of these permits until after
environmental impact studies have been completed,
sometimes unexpectedly. Environmental standards
regarding existing and future generation capacity
have become stricter and require more significant
capital investments. Any delay in complying with the
required emission standards may violate environmental
standards. Failure to certify the original application and
emission standards requirements at any given time for
such monitoring systems can lead to heavy penalties
and lawsuits for damages. The Company anticipates
that more restrictive emission limits will be established
in the future. It is also subject to an annual "green
tax" based on the previous year's greenhouse gas
emissions. These taxes could increase in the future
and discourage thermoelectric generation.
In May 2023, the Chilean Congress approved a
progressive increase in the minimum wage, which,
as of July 1, 2024, reached a total of $500,000
(approximately US$500) per month. Starting from
January 1, 2025, the minimum wage was adjusted
according to the consumer price index to $510,636
(approximately US$512) per month.
On January 29, 2025, the Chilean Congress approved
reforms to the Chilean pension fund system that,
among other things, would increase employer
contributions to employee pensions from 1.5% to
8.5% of the employee's monthly salary. While the
increases are expected to be implemented gradually
over 9 years, they could result in higher labor costs for
employers. Any increase in labor costs could have a
substantial adverse effect on the business, operating
results, and financial condition.
Proposed changes to the regulatory framework are
often submitted for consideration by legislators
and administrative authorities, and some changes,
if enacted, could significantly adversely affect the
business, operating results, and financial condition.
Enel Chile's business is exposed to the risks associated
with 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. The
subsidiary Enel Generación Chile signed an agreement
with the Chilean Ministry of Energy defining the process
of closing the coal-fired power plants: Tarapacá (158
MW), Bocamina I (128 MW), and Bocamina II (350
MW). The Tarapacá plant was shut down in December
2019, the Bocamina I plant in December 2020, and
the Bocamina II plant in September 2022, well ahead
of the planned deadline of 31 December 2040 for
the latter. As a result, the Company became the first
ever generation company in the Chilean power sector
to eliminate coal from its generation operations.
However, efforts to decarbonize the energy mix
by shutting down coal-fired power plants may be
insufficient if renewable energy projects are delayed
and do not come online as scheduled.
While the Chilean government's plan to reduce its
carbon footprint could override the Company's
sustainability strategy, implementing government
targets could put considerable pressure on the
Company and its ability to meet contractual obligations
by turning to other, cleaner energy sources. This, in
turn, can increase expenses, decrease profitability,
and limit the company's ability to fully meet electricity
demand.
Business and profitability could be negatively affected
if water rights are denied, if water concessions are
granted for a limited period, or if the cost of these
rights increases.
The Company holds water rights granted by the
General Water Directorate for the supply of water
from the rivers and lakes near the production facilities.
Under current law, these water rights are:
• Are of unlimited duration;
• Have absolute and unconditional property rights,
and
• Are not subject to further challenge. Chilean
generation companies must pay an annual fee for
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk Factors
349
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
unused water rights. New hydropower facilities are
required to obtain water rights, the terms of which
could affect the design, timeliness, or profitability of
a project.
Any revocation or limitation imposed on existing water
rights (including as a result of changes to the Chilean
constitution), granting additional water rights, the
duration of water concessions, or an increase in the
cost of water rights could adversely affect hydropower
development projects and profitability.
Climate change laws and regulations aimed at
limiting GHG emissions can pose potential business
and financial risks to the company.
Future climate change legislation and regulations
that restrict or regulate GHG emissions may increase
operating costs and negatively affect the business, its
operating results, and its financial condition. Adopting
and implementing any international treaty, legislation,
or regulation that imposes new or additional reporting
obligations or limits GHG emissions from operations
could lead to extra compliance costs and might
necessitate reducing or limiting GHG emissions linked
to operations. These stricter compliance standards,
such as net-zero emissions, may require higher levels
of investment in new, more efficient technologies.
Failure to control or delay the adoption of new
technologies could compromise the ability to adapt
to climate change and involve additional costs to
operate and maintain equipment and facilities, install
emission controls, or pay taxes and fees related to
GHG emissions, which could have a significant adverse
effect on the business operating, results, and financial
position.
Significant Chile-related risks and other
risks on a global scale
Economic fluctuations in Chile, along with certain
interventionist economic measures by government
authorities and political events or financial crises
both in Chile and globally, could impact the operating
results and financial condition, as well as the liquidity
and value of the securities.
All operations are based in Chile. Consequently,
consolidated income is influenced by the performance
of the Chilean economy. The company faces
exposure to political volatility and social unrest in
Chile due to challenges stemming from changing
economic conditions, regulatory policies, and laws
affecting foreign trade, manufacturing, development,
investments, and taxation.
For instance, in October 2024, the Chilean government
enacted tax reforms aimed at modernizing tax
administration, combating tax crimes and evasion,
addressing tax debts, and strengthening institutions
without increasing taxes on legitimate businesses.
The upcoming general and presidential elections
in November 2025 may create more significant
uncertainty regarding future monetary, fiscal, tax,
social, and other policies in Chile.
Any adverse events occurring in Chile, including
political events, financial or other crises, and changes
in foreign exchange control policies, regulations, and
taxes, may impair the ability to implement the business
plan and could adversely affect the operating results
and financial condition. Inflation, changes in interest
rates, devaluation, social instability, and other political,
economic, or diplomatic events could also reduce
profitability. Economic and market conditions in the
Chilean financial and capital markets may be affected
by international events, which in turn could adversely
impact the value of securities and access to the
capital market.
Political, financial, or other crises in any part of
the world can significantly affect Chile and may
negatively impact the Company's operations and
liquidity.
Chile is susceptible to external shocks that could
Risk Factors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
350
lead to significant economic difficulties and
hinder growth. If Chile faces lower-than-expected
economic growth or a recession, consumer demand
for electricity is likely to decline, and some customers
may struggle to pay their electricity bills, potentially
increasing bad debt. Any of these scenarios could
adversely impact operating results and contribute
to a financial crisis.
Financial and political events in other regions
could negatively impact the business as well. The
new presidential administration in the United
States has signaled several policy changes that
differ significantly from those of the previous
administration, potentially reshaping the global
political and economic landscape. President Trump
has imposed or threatened to impose higher tariffs
on most imports from Canada and Mexico, additional
tariffs on goods imported from China, tariffs on steel
and aluminum for all countries, and tariffs on auto
imports from the EU, among others. These tariffs
could provoke retaliation from other countries and
spark a trade war with protectionist measures by
the affected nations, which could disrupt global
foreign trade and heighten volatility in international
financial markets. Furthermore, instability in the
Middle East or any other major oil-producing region
could lead to higher fuel prices worldwide, which
would raise the operating costs of thermal power
plants and adversely impact operating results and
financial conditions. An international economic crisis
and its disruptive effects on the financial industry
could negatively influence the Company's ability to
secure new bank financing under the same historical
terms and conditions from which the Company has
benefited thus far.
Political events, financial crises, or other emergencies
could also limit access to capital markets in Chile
and international markets as sources of liquidity, or
they might increase the interest rates available to
the Company. Reduced liquidity could negatively
impact capital expenditures, long-term investments,
acquisitions, growth prospects, and the dividend
payment policy.
The Company is subject to the effects of armed
conflicts in other countries.
As long as armed conflicts continue in the world,
including those in Ukraine and the Middle East, such
as Gaza and the tensions between Israel and Iran,
global markets will operate in a state of economic
uncertainty, volatility, and disruption. In addition to
economic sanctions imposed on Russia and certain
Russian citizens and companies, these armed
conflicts could negatively affect the unpredictable
global economy. President Trump has recently
made several statements signaling a shift from the
previous administration's approach to U.S. foreign
policy regarding Ukraine, NATO, and Gaza, which may
have significant impacts on the global political and
economic landscape.
While Enel Chile does not engage in direct business
transactions with suppliers, customers, or lenders in
Russia or Ukraine, the Company's operational results
and financial condition may be influenced by (i) limited
access to financial markets, (ii) potential disruptions
in the global supply chain; (iii) volatility in the price
of commodities; and (iv) an increase in inflationary
pressures in Chile, which could increase the fees
charged to customers.
The effects of health crises, epidemics, or pandemics
at a global or regional level could negatively affect
operations and financial results.
A global or regional health crisis, epidemic,
pandemic, or similar outbreak in a region in which the
Company, its partners, customers, or key suppliers
operate could adversely affect the business. The
extent of the disruption would depend on a variety
of factors, including, but not limited to, the duration
and severity of the outbreak, government-imposed
restrictions on businesses and individuals, changes
in demand for products and services, supply chain
disruptions, and the health and safety of employees
and the communities in which the Company
operates. For example, measures imposed by the
Chilean government during the COVID-19 pandemic
temporarily disrupted business and operations,
decreased electricity demand, destabilized financial
markets, negatively obstructed the global supply
chain, and compromised the ability to generate
revenue.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk Factors
351
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
The potential impact of any future health crisis,
epidemic, or pandemic, as well as the measures that
governments and companies may take to control
such outbreaks, cannot be predicted and are beyond
the Company's control. It is possible that any future
outbreaks could adversely affect the business and
operating results.
Foreign exchange risks could adversely affect the
results and dollar value of dividends payable to ADS
holders.
Until December 31, 2024, the Company’s functional
currency was the Chilean peso, which has been subject
to devaluations and appreciations against the U.S.
dollar. As of January 1, 2025, the functional currency is
the U.S. dollar. However, because all operations are in
Chile, the operating subsidiaries generate revenue in
Chilean pesos.
The Company pays its dividends in Chilean pesos.
Although much of the consolidated debt and
operating cash flows are pegged to the U.S. dollar, the
Company is exposed to fluctuations of the Chilean
peso against the U.S. dollar due to time lags and other
limitations in pegging rates to the U.S. dollar. This
exposure can substantially decrease the value of the
cash it generates in U.S. dollars due to the devaluation
of the peso. Future volatility of the exchange rate of
the currency in which you receive income or incur
expenses may adversely affect the business, operating
results, and financial condition.
Risk Factors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
352
Significant risks related to the ownership
of shares and ADSs
The controlling shareholder of Enel Chile may
have significant influence over the company and
might have a different strategic vision regarding
development than the minority shareholders.
Enel SpA, the controlling shareholder, holds a beneficial
interest of 64.9% of the share capital as of the date
of this Report. Enel can determine the outcome of
almost all significant matters that require the vote
of a simple majority of shareholders under Law No.
18,046 ("Corporations Law"), such as the election of
the majority of board members and, subject to legal
and contractual restrictions, the dividend policy.
Enel also exerts significant influence over operations
and business strategy. Enel's interests could, in
some cases, deviate from the interests of minority
shareholders. Inevitable conflicts of interest affecting
Enel in these areas could be resolved in a manner that
is detached from the interests of the Company and
minority shareholders.
Chilean securities markets' relative illiquidity and
volatility could adversely affect the price of common
shares and ADSs.
Chilean stock markets are considerably smaller and
less liquid than the major stock markets in the United
States or other developed countries. The market's
illiquidity could affect shareholders' ability to sell their
securities or the ability of ADS holders to sell ordinary
shares withdrawn from the ADS program on Chilean
stock exchanges in the quantities, at the price, and at
the time they wish.
Lawsuits brought against the Company outside
of Chile or claims against it based on foreign legal
concepts may be unsuccessful.
All investments are located outside the United States.
All directors and senior executives reside outside
the United States, and most of their assets are also
located outside this country. If any investor were to
file a lawsuit in the United States against the directors
and officers of Enel Chile, it might be challenging for
that investor to send notifications of procedural acts
within the United States or to enforce a judgment
based on the civil liability provisions of U.S. federal
securities laws against them in U.S. courts or Chile.
Furthermore, it remains uncertain whether an action
concerning liability based solely on the provisions
of U.S. federal securities laws could be successfully
initiated in Chile.
General risk factors
The electricity industry faces risks from extreme
weather events linked to climate change, natural
disasters, catastrophic accidents, and acts of
terrorism, all of which can negatively affect
operations, results, and cash flow.
Major facilities include power generation plants and
distribution assets that are vulnerable to damage
from the increasing severity and frequency of
extreme weather events linked to climate change,
catastrophic accidents, natural disasters, and other
man-made crises, alongside protests, vandalism, riots,
and terrorism. Such a devastating event could lead
to prolonged unavailability of these assets, business
interruptions, significant revenue declines due to
reduced demand, or considerable additional costs
not covered by loss of earnings insurance, potentially
resulting in unplanned capital expenditures. There may
be delays between a major accident or catastrophic
event and the eventual reimbursement of insurance
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risk Factors
353
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
claims, which usually entail a deductible and are
subject to maximum claim limits.
Any catastrophic disruption to Chile's electrical assets
caused by natural or human action could significantly
affect operations, operating results, and financial
conditions.
The Company is subject to financing risks, such
as those related to raising funds for new projects
and capital investments and risks related to debt
refinancing.
A significant portion of financial debt is subject to (i)
financial covenants, (ii) obligations to do and not to
do, (iii) defaults, (iv) mandatory advance payments for
breach of contract, (v) change of control clauses in
the event of significant mergers and divestitures, (vi)
covenants on bankruptcy and insolvency proceedings,
and (vii) provisions on cross-defaults, which have
varying definitions, criteria, materiality and applicability
thresholds in relation to subsidiaries that could lead
to cross-compliance. Debt may also be immediately
payable in the event of bankruptcy or insolvency of a
major or significant subsidiary.
Prevailing market conditions at any time could hinder
access to capital markets or satisfy financial needs
for funding new projects. Additionally, the Company
might struggle to secure the necessary funds to finish
projects under development or construction. Likewise,
it may find it challenging to refinance its debt or obtain
refinancing on terms acceptable to the Company.
Without such refinancing, the Company might have
to liquidate assets at unfavorable prices to repay the
debt. Furthermore, it may be unable to sell the assets
at the right time or for high prices to generate the
income needed to meet these payments.
The inability to finance new projects or equity
investments or to refinance existing debt could
adversely affect the business, operating results, and
financial condition.
Regulatory authorities may impose fines, penalties,
or sanctions on Enel Chile's subsidiaries due to
operational failures or regulatory violations.
Utilities are subject to regulatory penalties for non-
compliance with existing regulations, including power
supply failures. Generation subsidiaries undergo
audits by local regulatory entities. The Company may
face fines, penalties, or financial repercussions when
the regulator holds it accountable for operational
failures that could impact the regular energy supply to
the system, including coordination issues. Regulations
establish a compensation rate for end customers when
power interruptions exceed the standard allowed
time due to events or failures affecting transmission
facilities.
The Company is involved in various litigations.
The Company is involved in several contentious
proceedings, including lawsuits and arbitrations,
which could result in adverse outcomes or monetary
penalties. Given the unpredictability of legal matters,
the Company lacks certainty about the most probable
outcome of these proceedings or the potential fines
associated with each litigation. Although Enel Chile
intends to defend its positions staunchly, it is possible
that the defense may not be successful and that
responding to these lawsuits and arbitrations will
divert resources and management’s attention from
daily operations.
Risk Factors
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
354
Properties and facilities
On April 1, 2024, Enel Chile and its subsidiaries
relocated their corporate offices from 76 Santa Rosa
Avenue in the Santiago district to Tower 2 of the MUT
complex (Tobalaba Urban Market) in the Las Condes
district, owned by Territoria Apoquindo S.A. This move
is under a lease agreement with a duration of seven
years. The previous corporate building was leased by
the subsidiary Enel Generación Chile S.A. to Territoria
Santa Rosa S.p.A. and has been returned to the owner
nearly in its entirety, with only the areas housing the
control centers remaining pending.
The Group's main properties and operating facilities by
operating segment are detailed below.
Generation Segment
Plant Name
Company
Use
Technology
Capacity
Net (MW)
Property Type
(land)
Location
Atacama
Enel Generación
Chile
Powerplant
CCGT
716
Own
Antofagasta, Antofagasta Region
San Isidro
Enel Generación
Chile
Powerplant
CCGT
372
Own
Quillota, Valparaíso Region
San Isidro 2
Enel Generación
Chile
Powerplant
CCGT
380
Own
Quillota, Valparaíso Region
Quintero
Enel Generación
Chile
Powerplant
O&G
236
Own
Quintero, Valparaíso Region
Taltal
Enel Generación
Chile
Powerplant
O&G
241
Own
Antofagasta, Antofagasta Region
Tarapacá TG
Enel Generación
Chile
Powerplant
O&G
20
Own
Iquique, Tarapacá Region
Canela I
Enel Generación
Chile
Powerplant
Wind
18
Own
District of Canela, Choapa Province
Region of Coquimbo
Canela II
Enel Generación
Chile
Powerplant
Wind
64
Own
District of Canela, Choapa Province,
Region of Coquimbo
La Cabaña
Enel Green Power
Chile
Powerplant
Wind
106
Leased
Districts of Angol, Renaico, and
Collipulli in the Province of Malleco,
La Araucanía Region and Mulchén
District in the Biobío Province,
Region of Biobío
Los Buenos
Aires
Enel Green Power
Chile
Powerplant
Wind
24
Leased
Los Angeles, Los Angeles District,
Bio Bio Region
Renaico
Enel Green Power
Chile
Powerplant
Wind
88
Servitude
Renaico District, La Araucanía
Region
Renaico 2
Enel Green Power
Chile
Powerplant
Wind
144
Leased
Renaico District, Araucanía Region
Sierra Gorda
Este
Enel Green Power
Chile
Powerplant
Wind
112
Concession
Sierra Gorda, Sierra Gorda District,
Antofagasta Region
Taltal
Enel Green Power
Chile
Powerplant
Wind
106
Concession
Antofagasta, Taltal District,
Antofagasta Region
Generation Segment
[NCG 461 - 6.4 i; iii]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Properties and facilities
355
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Plant Name
Company
Use
Technology
Capacity
Net (MW)
Property Type
(land)
Location
Talinay Oriente
Talinay Oriente Wind
Farm
Powerplant
Wind
90
Leased
Ovalle District, Coquimbo Region
Talinay Poniente
Enel Green Power
Chile
Powerplant
Wind
61
Leased
Ovalle District, Coquimbo Region
Valle de los
Vientos
Enel Green Power
Chile
Powerplant
Wind
90
Concession
Calama, Antofagasta Region
Cerro Pabellón
(1, 2 and 3)
Geotermal del Norte
Powerplant
Geothermal
83
Servitude
Ollague, Ollague District,
Antofagasta Region
Abanico
Enel Generación
Chile
Powerplant
Hydro-
electric
93
Own
Los Angeles, Biobío Region
Antuco
Enel Generación
Chile
Powerplant
Hydro-
electric
320
Own
Los Angeles, Biobío Region
Cipreses
Enel Generación
Chile
Powerplant
Hydro-
electric
106
Own
Talca, Maule Region
Curillinque
Pehuenche
Powerplant
Hydro-
electric
89
Own
Talca, Maule Region
El Toro
Enel Generación
Chile
Powerplant
Hydro-
electric
449
Own
Los Angeles, Biobío Region
Isla
Enel Generación
Chile
Powerplant
Hydro-
electric
70
Own
Talca, Maule Region
Loma Alta
Pehuenche
Powerplant
Hydro-
electric
40
Own
Talca, Maule Region
Los Molles
Enel Generación
Chile
Powerplant
Hydro-
electric
18
Own
Montepatria, Coquimbo Region
Ojos de Agua
Enel Generación
Chile
Powerplant
Hydro-
electric
9
Own
Cipreses River Valley, Maule Region
Palmucho
Enel Generación
Chile
Powerplant
Hydro-
electric
34
Own
Los Angeles, Biobío Region
Los Condores
Enel Generación
Chile
Powerplant
Hydro-
electric
153
Own
San Clemente, Maule Region
Pangue
Enel Generación
Chile
Powerplant
Hydro-
electric
466
Own
Los Angeles, Biobío Region
Pehuenche
Pehuenche
Powerplant
Hydro-
electric
570
Own
Talca, Maule Region
Pilmaiquén
Enel Green Power
Chile
Powerplant
Hydro-
electric
41
Own
Rio Bueno District, Los Ríos Region
Pullinque
Enel Green Power
Chile
Powerplant
Hydraulic
51
Own
Panguipulli District, Valdivia
Province, Los Ríos Region
Ralco
Enel Generación
Chile
Powerplant
Hydro-
electric
689
Own
Los Angeles, Biobío Region
Rapel
Enel Generación
Chile
Powerplant
Hydro-
electric
377
Own
Litueche, O'Higgins Region
Sauzal
Enel Generación
Chile
Powerplant
Hydro-
electric
80
Own
Machalí, O'Higgins Region
Sauzalito
Enel Generación
Chile
Powerplant
Hydro-
electric
11
Own
Machalí, O'Higgins Region
Azabache
Enel Green Power
Chile
Powerplant
Solar
61
Concession
Calama, Antofagasta Region
Campos del Sol
Enel Green Power
Chile
Powerplant
Solar
375
Concession
Copiapó, Atacama Region
Guanchoi (ex-
Campos del
Sol II)
Enel Green Power
Chile
Powerplant
Solar
398
Concession
Diego de Almagro District, Atacama
Region
Chañares
Enel Green Power
Chile
Powerplant
Solar
40
Concession
Diego de Almagro City, Atacama
Region
El Manzano
Enel Green Power
Chile
Powerplant
Solar
99
Leased
Til Til, Province of Chacabuco,
Metropolitan Region
Lalackama
Enel Green Power
Chile
Powerplant
Solar
60
Leased
Antofagasta, Antofagasta Region
Properties and facilities
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
356
Plant Name
Company
Use
Technology
Capacity
Net (MW)
Property Type
(land)
Location
Lalackama II
Enel Green Power
Chile
Powerplant
Solar
18
Leased
Antofagasta, Antofagasta Region
Las Salinas
Enel Green Power
Chile
Powerplant
Solar
205
Concession
Sierra Gorda District, Antofagasta
Province, Antofagasta Region.
Parque Solar
Finis Terrae
Enel Green Power
Chile
Powerplant
Solar
160
Concession
María Elena, Comuna María Elena,
Antofagasta Region
Parque Solar
Finis Terrae
Extensión
Enel Green Power
Chile
Powerplant
Solar
126
Concession
María Elena, Comuna María Elena,
Antofagasta Region
Finis Terrae 3
Enel Green Power
Chile
Powerplant
Solar
18
Concession
María Elena, Comuna María Elena,
Antofagasta Region
PMGD
Caracoles
Enel Green Power
Chile
Powerplant
Solar
3
Leased
Yerbas Buenas, Maule Region
PMGD Cabimas
( Ex Curimachi)
Enel Green Power
Chile
Powerplant
Solar
11
Leased
San Clemente District, Talca
Province, Maule Region
PMGD Dadinco
Enel Green Power
Chile
Powerplant
Solar
3
Leased
San Nicolás District, Ñuble Region
PMGD Don
Rodrigo
Enel Green Power
Chile
Powerplant
Solar
5
Leased
Talca District, Maule Region
PMGD El Sharon
Enel Green Power
Chile
Powerplant
Solar
3
Leased
Las Cabras District, O'Higgins
Region
PMGD La
Colonia
Enel Green Power
Chile
Powerplant
Solar
11
Leased
Buin, Metropolitan Region
PMGD Piduco
Enel Green Power
Chile
Powerplant
Solar
3
Leased
Talca, Maule Region
PMGD
Rinconada
Alcones
Enel Green Power
Chile
Powerplant
Solar
10
Leased
Rinconada de Alcones, O'Higgins
Region
PMGD San
Camilo
Enel Green Power
Chile
Powerplant
Solar
3
Leased
Molina, Maule Region
PMGD Valera
Enel Green Power
Chile
Powerplant
Solar
3
Leased
Coinco District, O'Higgins Region
PMGD
Bandurrias
Enel Green Power
Chile
Powerplant
Solar
3
Leased
Marchigue District, Cardenal
Caro Province, Libertador General
Bernardo O'Higgins Region
PMGD Graneros
Enel Green Power
Chile
Powerplant
Solar
3
Leased
Rancagua District, Cachapoal
Province, Libertador General
Bernardo O'Higgins Region
PMGD
Maintencillo
Enel Green Power
Chile
Powerplant
Solar
3
Leased
San Rafael District, Talca Province,
Maule Region
PMGD Patagua
Enel Green Power
Chile
Powerplant
Solar
10
Leased
Melipilla District, Melipilla Province,
Metropolitan Region
PMGD Doña
Rubena
Enel Green Power
Chile
Powerplant
Solar
3
Leased
Til Til District, Chacabuco Province
Metropolitan Region
PMGD Mora
Enel Green Power
Chile
Powerplant
Solar
3
Leased
Lo Chacón District, Melipilla
Province, Metropolitan Region
PMGD Hijuelas
4
Enel Green Power
Chile
Powerplant
Solar
3
Leased
Maule District, Talca Province, Maule
Region
Sol de Lila
Enel Green Power
Chile
Powerplant
Solar
161
Concession
Antofagasta, Antofagasta Region
Solar la Silla
Enel Green Power
Chile
Powerplant
Solar
2
Loan
La Higuera, Coquimbo Region
Valle del Sol
Enel Green Power
Chile
Powerplant
Solar
163
Concession
María Elena, Antofagasta Region
Don Humberto
Enel Green Power
Chile
Powerplant
Solar
81
Leased
Til Til District, Chacabuco Province,
Metropolitan Region
La Cabaña
BESS
Enel Generación
Chile
Storage Retrofit
BESS
34
Leased
Districts of Angol, Renaico, and
Collipulli in the Province of Malleco,
Araucanía Region
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Properties and facilities
357
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Distribution Segment
Name
Company
Use
Level
Type
Location
Colina
Enel Distribución Chile
Substation
MT/MT
Own
Santiago, Metropolitan Region
San Enrique
Enel Distribución Chile
Substation
MT/MT
Own
Las Condes, Metropolitan Region
Aeropuerto
Enel Distribución Chile
Substation
MT/MT
Own
Pudahuel, Metropolitan Region
Distribution Segment
Enel Distribución Chile has eight commercial offices,
all leased, located in the Metropolitan Region.
The electric distribution business in which Enel
Distribución Chile operates is governed by an indefinite
concession granted by the Government of Chile,
which strictly specifies the area in which it will provide
energy supply services. This concession encompasses
an area of 2,105 km², covering 33 municipalities in the
Metropolitan Region, including the territories of its
subsidiary, Enel Colina S.A.
Insurance
The Group and its consolidated entities have insurance
contracts that include all-risk, earthquake, and
machinery breakdown policies with a limit of €1,000
million (Ch$ 1,035,280 million), covering damages
resulting from business interruption. Additionally,
the Group holds Civil Liability insurance to address
third-party claims up to €400 million (Ch$414,112
million) when the claims arise from the failure of any
dams owned by the Company or its Subsidiaries,
as well as Environmental Civil Liability that protects
against lawsuits and damages to the environment for
€20 million (Ch$20,706 million).
Plant Name
Company
Use
Technology
Capacity
Net (MW)
Property Type
(land)
Location
Rihue BESS
Enel Green Power
Chile
Storage Retrofit
BESS
34
Leased
Negrete district, Bio Bio Region
Don Humberto
BESS
Enel Green Power
Chile
Storage Retrofit
BESS
67
Leased
Til Til District, Chacabuco Province,
Metropolitan Region
El Manzano
BESS
Enel Green Power
Chile
Storage Retrofit
BESS
67
Leaed
Til Til District, Chacabuco Province,
Metropolitan Region
Properties and facilities
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
358
Trademarks, patents,
and concessions
Trademarks
The Company has registered the "Enersis Chile" trademark for services, products, and commercial and industrial
establishments. Enel S.p.A. 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 uses of the name as mentioned above. The trademark "Enel
Chile" is officially registered.
Patents
Enel Chile does not own patents that might be important to its production processes.
Concessions
Enel Chile and its subsidiaries must participate in concessions with government agencies in the ordinary course of
their operations to develop the supply of electricity generation and distribution services. For more details on the
concessions, see the Properties and Facilities section of the Integrated Annual Report.
Others
Enel Chile currently does not have any franchises, royalties, or licenses that might be relevant to the Company’s
operations.
[NCG 461 - 6.2 v; vi; vii]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Trademarks, patents, and concessions
359
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Subsidiaries, associates,
and joint ventures
Enel Chile’s direct and indirect participation
Enel Chile’s direct and indirect participation
Company
Type
Business
Direct
Indirect
Total
% that this
investment
represents of the
individual assets
of the Parent
Company
Enel Distribución Chile S.A.
Subsidiary
Distribution
99.09%
-
99.09%
8.65%
Enel Colina S.A.
Subsidiary
Distribution
-
100.00%
100.00%
0.19%
Enel Generación Chile S.A.
Subsidiary
Generation
93.55%
-
93.55%
33.94%
Empresa Eléctrica
Pehuenche S.A.
Subsidiary
Generation
-
92.65%
92.65%
2.03%
Sociedad Agrícola de
Cameros Ltda.
Subsidiary
Other
57.50%
-
57.50%
0.04%
Enel X Chile S.p.A.
Subsidiary
Other
100.00%
-
100.00%
0.14%
Enel Green Power Chile S.A.
Subsidiary
Generation
99.99%
-
99.99%
13.20%
Geotérmica del Norte S.A.
Subsidiary
Generation
-
84.59%
84.59%
5.53%
Parque Talinay Oriente S.A.
Subsidiary
Generation
-
60.91%
60.91%
1.76%
Enel Mobility Chile S.p.A.
Subsidiary
Other
100.00%
-
100.00%
-0.01%
Enel X Way Chile S.p.A. (1)
Subsidiary
Other
62.46%
-
62.46%
0.10%
GNL Chile S.A.
Associated
Generation
-
33.33%
33.33%
0.43%
Energía Marina S.p.A.
Associated
Other
-
25.00%
25.00%
0.00%
HIF H2 S.p.A.
Joint Venture
Other
-
50.00%
50.00%
0.00%
(1) On August 1, 2024, Enel Chile subscribed to a capital increase in the company Enel X Way Chile S.p.A., which was fully contributed on August
23, 2024. This capital increase meant that Enel Chile increased its stake in Enel X Way Chile S.p.A. from 49% to 62.46%, taking control of the
company.
[NCG 461 - 6.5.1 v; vi; 6.5.2 ii; iv]
Subsidiaries, associates, and joint ventures
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
360
Enel Chile's corporate network
ENEL CH
ENEL GREEN POWER
CHILE S.A.
PARQUE EÓLICO
TALINAY ORIENTE S.A.
GEOTÉRMICA
DEL NORTE S.A.
ENERGÍA
MARINA S.p.A.
HIF H2 S.p.A.
SOC. AGRICOLA DE
CAMEROS LTDA.
ENEL DISTRIBUCIÓN
CHILE S.A.
ENEL COLINA S.A.
ENEL GEN
CHILE S.A
60.914232%
84.589809%
99.99109%
57.499962%
99.090782%
0.0002%
99.9998%
93.548092%
25%
50%
[NCG 461 - 6.5.1 x]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Subsidiaries, associates, and joint ventures
361
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
HILE S.A.
NERACIÓN
A
ENEL X WAY CHILE
S.p.A.
PEHUENCHE S.A.
GNL CHILE S.A.
ENEL
ARGENTINA S.A.
SUCURSAL
GASODUCTO ATACAMA
ARGENTINA S.A.
ENEL X CHILE
S.p.A.
ENEL MOBILITY
S.p.A.
92.647902%
33.333333%
62.45753%
100%
100%
0.079318%
100%
Subsidiaries, associates, and joint ventures
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
362
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 Corporations
Type of Company
Open Corporations
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 Til-Til, s/n, Til-Til, Chile
Address
Roger De Flor 2725, piso 10, Las Condes,
Santiago, Chile
Address
Roger De Flor 2725, piso 16, Las Condes,
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 to exploit
agricultural land.
Corporate purpose
The supply of public electricity distribution
services throughout the national territory,
along with essential activities that support
this service and contribute to achieving
this goal, shall be in accordance with the
relevant sectoral regulations.
Corporate purpose
The Company's primary purpose is to
leverage the production, transportation,
distribution, and supply of electricity. To
achieve this, it may obtain, acquire, and
utilize the respective concessions and
grants. Additionally, it aims to provide
consulting services across all areas and
specialties of engineering and business
management; to develop, design, build,
maintain, and operate civil or hydraulic
infrastructure directly related to public
works concessions; to manage the assets
that comprise its holdings; to make
investments; to develop projects; and to
conduct operations or activities in the
energy sector and in activities or products
directly related to energy. Furthermore, it
may invest in real estate and financial assets,
securities or bonds, rights in companies,
and
general
commercial
documents,
provided these are related to its corporate
purpose, allowing it to acquire, manage,
and dispose of them. In pursuing its
corporate objective, the Company may act
directly or through subsidiaries or affiliated
companies.
Activities carried out
Agricultural and real estate.
Activities carried out
Distribution of electrical energy.
Activities carried out
Electricity generation.
[NCG 461 - 6.5.1 i; ii; iii; iv; vii; viii; ix; 6.5.2 i; iii]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Subsidiaries, associates, and joint ventures
363
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
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
CEO
Hugo Álvarez de Araya Sanhueza
(1) Head of Real Estate Enel Chile S.A.
(2) Head of Finance & Insurance
(3) Head of Mergers & Acquisitions Enel
Chile S.A.
Board of Directors
Viviana Vitto
Maurizio Morrica
Riccardo Tosi
Senior executives
CEO
Victor Tavera Olivos (1)
Planning and Control Manager
Francisco Evans Miranda (2)
Legal Counsel
Horacio Aránguiz Pinto (3)
People and Organization Manager
William Espitia Otalora (4)
(1) Head of Infrastructure & Grids 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 & Grids Ch
Board of Directors
Julio Pellegrini Vial
Chairman
Cristiano Bussi
Giuseppe Conti
Donata Susca
Elisabetta Barberi
Senior executives
CEO
Maria Galainena De Carlos (1)
People and Organization Manager
Federica Caponera (2)
Administration,
Finance
and
Control
Manager
Carlos Rabi Rabi (3)
Legal Counsel
Natalia Fernández Sepúlveda (4)
Trading and 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 supply of services by
Enel Chile: supply of internal audit and
compliance control services; price: the
amount of UF per hour for the work
that Enel Chile personnel assign to the
contracted services.
Business Relations
Contract for the supply of services by
Enel Chile S.A.: comprehensive service
and management for administration,
security, contractor oversight, human
resources,
accounting,
taxation,
purchasing,
sustainability,
legal,
and
corporate services. Pricing: a monthly
fee determined in UF; this is a centralized
cash contract with Enel Chile S.A.
Business Relations
(i) The contract for services provided by
Enel Chile includes comprehensive service
and management such as administration,
security,
contractor
oversight,
human
resources management, accounting, tax,
procurement, and sustainability, among
other services; price: monthly amount
stated in development units (UF). (ii) The
agreement encompasses the supply of
legal, corporate, and consulting services by
Enel Chile; the price is the monthly amount
determined in UF. (iii) Centralized cash
agreement with Enel Chile S.A.
(*) On March 12, 2025, Mr. Víctor Tavera submitted his resignation from the position of General Manager of Distribution, effective from April 8,
2025. On March 26, 2025, the Board of Directors appointed Mónica Hodor as General Manager, effective from April 8, 2025.
Subsidiaries, associates, and joint ventures
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
364
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 Corporations
Type of company
Closed Corporations
Type of company
Open Corporations
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, oficina
1003, Santiago, Chile.
Address
Roger De Flor 2725, piso 13, Las Condes,
Santiago, Chile.
Telephone
(56 2) 2844 4280
Telephone
(562) 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 supply of electricity distribution as
utilities within the national territory, along
with activities essential for delivering
this service and those that support its
purpose, shall be in accordance with the
relevant sectoral regulations.
Corporate purpose
The purpose of the Company shall be: a)
to contract the services of the liquefied
natural gas (LNG) regasification company
GNL Quintero S.A. and to utilize all the
storage, processing, regasification, and
delivery capacities of natural gas and LNG
of the regasification terminal owned by
the Company, including its expansions,
if any, and any other matters stipulated
in the contracts that the Company signs
for this purpose regarding the use of
the regasification terminal; b) to acquire
and, where appropriate, import LNG
under LNG purchase agreements; c) to
supply, sell, and deliver 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, both in Chile and abroad,
or by virtue of other agreements for
this purpose, and to carry out exports
as well; d) to manage and coordinate
the scheduling and nomination of LNG
cargoes, along with the delivery of
natural gas and LNG among the various
customers; and e) to fulfill all its obligations
and demand compliance with all its rights
under the aforementioned contracts
and to coordinate all activities related to
them; and, in general, to conduct any type
of act or contract necessary, useful, or
convenient to achieve the stated purpose.
Corporate purpose
Generation, transportation, distribution, and
supply of electricity, along with acquiring
and enjoying the respective concessions
and licenses for these purposes. Without
limiting the generality of the foregoing,
the company’s purpose will also include,
as a priority until its completion, the
construction of a Hydroelectric Power Plant
in the area known as Pehuenche or Paso
Nevado, located in the Maule River basin,
Seventh Region. Furthermore, the company
may grant real and personal guarantees in
favor of third parties.
Activities carried out
Distribution of electrical energy.
Activities carried out
Import and marketing of natural gas.
Activities carried out
Electric Power Generation
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Subsidiaries, associates, and joint ventures
365
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
ENEL COLINA S.A.
GNL CHILE S.A.
EMPRESA ELÉCTRICA PEHUENCHE S.A.
Board of Directors
Francisco Evans Miranda (1)
Pablo Jofré Utreras (2)
Senior executives
CEO
Luis Fernando Roa Vargas
(1) Head of Industrial P&C Enel Grids Chile
(2) Head of Regulatory I&N and Market
Board of Directors
Klaus Lührmann Poblete
Gustavo Soto Rojas (1)
José Pablo Gómez Meza
Senior executives
CEO
Mario Camacho Acha
(1) Head of Commercialization & Trading
Chile
Board of Directors
Carlos Rabi Rabi (1)
Chairman
Natalia Fernández Sepúlveda (2)
Luis Alberto Vergara Adamides (3)
Carlo Carvallo Artigas (4)
Marcela Alejandra Arredondo Cárdenas
Senior executives
CEO
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 services provided by Enel
Chile: human resources administration,
recruitment
and
training,
internal
auditing, accounting, tax, and treasury.
Price: monthly amount stated in UF. (ii)
A centralized cash agreement with Enel
Chile S.A.
Business Relations
The company does not have commercial
relations with Enel Chile.
Business Relations
(i) Contract for services with Enel Chile,
covering Human Resources Administration,
Internal Audit, Accounting, Tax, Treasury
services, and legal services, among others,
by Enel Chile S.A. (ii) Contract for operation
and maintenance services between Enel
Generación Chile and Pehuenche.
Subsidiaries, associates, and joint ventures
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
366
ENEL GREEN POWER CHILE S.A.
ENEL X CHILE S.p.A.
GEOTÉRMICA DEL NORTE S.A.
Company name
Enel Green Power Chile S.A.
Company name
Enel X Chile S.p.A.
Company name
Geotérmica del Norte S.A.
Type of company
Closed Corporations
Type of company
Joint Stock Company
Type of company
Closed Corporations
TAX ID NUMBER
76.412.562-2
TAX ID NUMBER
76.924.079-9
TAX ID NUMBER
96.971.330-6
Address
Roger De Flor 2725, piso 15, Las Condes,
Santiago, Chile
Address
Roger De Flor 2725, piso 9, Las Condes,
Santiago, Chile
Address
Roger De Flor 2725, piso 11, Las Condes,
Santiago, Chile
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$2,837,737,149
Subscribed and paid-in capital
MUS$488.236
Corporate Purpose
(i)
The
generation,
transmission,
commercialization,
and
storage
of
electrical
energy
from
wind,
solar,
geothermal, or any other source of
non-conventional renewable energy, as
well as hydraulic energy, and generally
performing
all
activities
of
energy
service companies; (ii) the development,
production,
and
commercialization
of hydrogen, along with investment in
related projects; (iii) investment in energy
storage systems. The activities outlined in
paragraphs i), ii), and iii) may be conducted
directly by the Company or through
shared management or collaboration
with third parties, even as part of other
companies with the same or similar
goals. (iv) Investment in various types
of businesses, companies, movable or
immovable property, whether tangible or
intangible; (v) providing all kinds of advice
and services to third parties, related or not,
in financial, accounting, administrative,
commercial, legal, tax, and business
management, as well as any other activity
directly or indirectly related to the above
that the shareholders agree upon. (vi) The
purchase and sale, marketing, import, and
export of all kinds 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.
(viii)
Application,
management,
and
exploitation of all types of administrative
concessions
necessary
for
fulfilling
the
corporate
purpose,
particularly
concessions for the use of public land for
constructing, operating, and maintaining
wind, solar, or geothermal energy projects,
along with necessary and complementary
activities for exploiting said concessions.
In pursuing its corporate purpose, the
Company may operate directly or through
subsidiaries or joint ventures.
Corporate purpose
Develop,
implement,
and
market
innovative energy-related products and
services in Chile that leverage cutting-
edge technology and future trends.
To provide, either directly or indirectly,
these activities and products to all types
of individuals and organizations, as well as
to offer management services to various
legal entities; financial, commercial, and
technical legal advice; auditing; and,
generally, any necessary services to
enhance corporate performance.
In addition to its primary purpose, the
Company may invest in the following: first,
the acquisition, operation, construction,
leasing,
management,
intermediation,
marketing, and disposal of all types of
movable and immovable property; second,
various financial assets, including shares,
bonds, debentures, bills of exchange,
and, in general, all types of securities and
contributions to companies.
Corporate purpose
(i) The research and exploitation of
geothermal deposits in the First, Second,
and Third Regions of the country; (ii) The
commercialization, in any form, of all
products, by-products, and raw materials,
whether
processed,
semi-processed,
or
unprocessed,
arising
directly
or
indirectly from the above activities; (iii) The
generation, transmission, distribution, and
commercialization of electricity from any
source; and (iv) The Company may also
engage in any other activity related, directly
or indirectly, to the above that promotes
better utilization of the corporate structure.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Subsidiaries, associates, and joint ventures
367
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
ENEL GREEN POWER CHILE S.A.
ENEL X CHILE S.p.A.
GEOTÉRMICA DEL NORTE S.A.
Activities carried out
Power
generation
based
on
NCRE
sources.
Activities carried out
Marketing
of
electrical
goods
and
services.
Activities carried out
Generation,
distribution,
and
commercialization of electrical energy
from geothermal sources.
Management
Exercised by a sole director, as provided
for in the Company's bylaws.
Board of Directors
Fernando Meza Márques (1)
Claudia Navarrete Campos (2)
Ali Shakhtur Said (3)
Senior executives
CEO
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
Management
Exercised by a sole director, as provided
for in the Company's bylaws.
Senior executives
Sole Manager
Karla Zapata Oballe
Management
Exercised by a Board of Directors, pursuant
to Law on Public Limited Companies.
Board of Directors
Ali Shakhtur Said(1)
Chairman
Jorge Riquelme Hermosilla (2)
Lisandro Rojas
Francisco Arechaga Fernández (3)
Senior executives
CEO
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 for issuing
various guarantees (bank slips, standby
letters, corporate guarantees, etc.) by
Enel Chile S.A. in favor of the company.
(iii) Contract in which Enel Chile S.A.
provides services to the company in
areas such as security, general services,
human
resources
and
organization,
auditing, finance, communications, legal,
sustainability, and other aspects related
to the company's internal operations.
(iv) Contract for services between the
company and Enel Generación Chile S.A.,
under which the latter offers management
support, regulatory analysis, and energy
management services to the company.
(v) Contract for the supply of technical
services by Enel Green Power SpA.
Business Relations
(i) Contract for services supplied by Enel
Chile: global service and management,
security, human resources, accounting,
tax, purchasing, and insurance, among
other services. Price: monthly amount
specified in development units (UF).
(ii) Centralized cash agreement with
Enel Chile S.A. (iii) Service provision
contract with Enel Distribución Chile S.A.:
personnel costs, commercial processes,
staff, and legal services, among others. (iv)
Technical services agreement with Enel X
S.r.l. (v) Service provision agreement with
Enel X Brasil Gerenciamento de Energía
Ltda.
Business Relations
(i) Contract in which Enel Green Power
Chile
Ltda.
provides
the
Company
with
engineering
services,
technical
oversight
of
construction
activities,
contract
management,
purchasing,
external relations, sustainability, safety,
and environmental services, as well as
computer, accounting, financial, tax, legal,
and other essential staff and management
services
for
the
Company's
internal
operations. (ii) O&M Contract through
which Enel Generación Chile S.A. delivers
the operation and maintenance services
necessary to support the geothermal
plant's activities.
Subsidiaries, associates, and joint ventures
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
368
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 Corporations
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
Roger De Flor 2725, piso 11, Las Condes,
Santiago, Chile
Address
Roger De Flor 2725, piso 9, Las Condes,
Santiago, Chile
Address
Roger De Flor 2725, piso 6, Las Condes,
Santiago, Chile
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
$19.329.589.733
Subscribed and paid-in capital
M$504,094,780
Corporate purpose
Planning, development, and operation of
wind generation projects.
Corporate Purpose
The
development,
operation,
management, and marketing of goods
and
vehicles—excluding
trucks
and
buses—that operate fully or partially
on
electricity,
encompassing
the
management and control of energy
consumption and efficiency specifically
related to the electric mobility sector.
Additionally, the company may engage
in activities involving the management of
slow, fast, and ultra-fast electric charging
infrastructure,
both
integrated
and
non-integrated. This includes research,
promotion,
development,
design,
installation,
operation,
management,
and maintenance of public charging
infrastructure
for
electric
vehicles,
including those for aircraft and ships.
The operation of these infrastructures
for advertising purposes, along with
the design, promotion, development,
consulting, and marketing of public
charging infrastructure, will also form
part of the general management services
related to electric mobility, electric
vehicles,
and
their
recharging.
The
provision of services related to electric
vehicle charging, sustainable mobility,
and public charging infrastructure, as
well as smart charging services and
integration between electric vehicles
and the electricity grid, will also be
included. Furthermore, the company will
offer training services on e-mobility and
charging systems, after-sales services for
electric mobility, charging infrastructure,
smart charging, and charging systems,
including
warranty
management.
Leasing and renting fleets of electric
vehicles, excluding trucks and buses, will
be another focus, along with offering
management services and site searches
for charging points and technological
services associated with electric mobility.
Corporate purpose
The Company's purpose is: (i) to develop
and promote charging infrastructure for
fleets and electric vehicles, as well as to
conduct research, design, and testing
activities related to associated goods,
equipment, and facilities; (ii) to construct,
remodel, reconstruct, condition, acquire,
and develop all types of public or publicly
accessible charging infrastructure, along
with providing various services associated
with electric charging for electric vehicles,
including slow, fast, and ultra-fast charging,
whether integrated or non-integrated; (iii)
to install, operate, maintain, and manage
collections related to public or publicly
accessible
charging
infrastructure
for
fleets and electric vehicles, as well as smart
charging services and the integration
between electric vehicles and the electricity
grid; and (iv) to study, develop, manage,
and execute, whether on its own behalf
or on behalf of others, all kinds of real
estate businesses and activities aimed at
establishing public charging infrastructure
points and public access for electric
vehicles within the national territory. This
includes the acquisition, management,
leasing, or other forms of exploitation, for
itself or others, of all kinds of immovable
property, as well as buying and selling, with
or without resale agreements, and leasing,
with or without options to purchase, for
all kinds of such property, whether under
leasing, lease-back contracts, or any other
agreements or modalities.
Activities carried out
Wind power generation.
Activities carried out
Services
and
goods
related
to
electromobility.
Activities carried out
Public charging infrastructure.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Subsidiaries, associates, and joint ventures
369
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
PARQUE TALINAY ORIENTE S.A.
ENEL X WAY CHILE S.p.A.
Enel Mobility Chile S.p.A.
Board of Directors
Ali Shakhtur Said (1)
Fernando Meza Marques (2)
Andrés Assar Ramos (3)
Senior Executives
CEO
Ali Shakhtur Said
((1) Head of Legal Affairs Dev. South
America
(2) Head of Business Development Chile
(3)Head of BD Business Developers
Management
Exercised by a sole director, in accordance
with the provisions of the Company's
bylaws.
Senior Executives
Sole Manager
Jean Paul Zalaquett Falaha
Management
Exercised by a sole director, in accordance
with the provisions of the Company's
bylaws.
Senior Executives
Sole Manager
Karla Lucía Zapata Oballe
Business Relations
(i) Centralized cash agreement with
Enel Chile S.A. (ii) Contract for issuing
various types of guarantees (bank slips,
standby letters, corporate guarantees,
etc.) by Enel Chile S.A. for the company.
(iii) Service Provision Agreement with
Enel Chile S.A. covering security, general
services, human resources, organization,
auditing, finance, communications, legal,
sustainability, and other services related
to the company's internal operations. (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) Contract for the supply of
technical services by Enel Green Power
SpA.
Business Relations
(i) The service provision contract with Enel
Chile S.A. covers security, general services,
human
resources
and
organization,
auditing, finance, communications, legal
matters, sustainability, and other areas
related to the internal functioning of the
Company. (ii) CPO as a Service contract
with Enel Mobility Chile S.p. A. for services
associated
with
charger
operation,
charger installation, identifying locations
for
charger
deployment,
charger
maintenance, hardware support, data
processing, and more.
Business Relations
(i)
Centralized
cash
agreement
with
Enel Chile S.A. (ii) Service provision
agreement
with
Enel
Chile
S.A.
for
security,
general
services,
human
resources
and
organization,
auditing,
finance, communications, legal matters,
sustainability, and other aspects related to
the internal functioning of the company.
(iii) CPO as a Service contract with Enel X
Way Chile S.p.A. for services related to
charger operation, charger installation, site
scouting for charger deployment, charger
maintenance, hardware, data processing,
and so on.
No directors, General Managers, or senior executives of Enel Chile held these positions in subsidiaries or associated
companies during the 2024 period.
Subsidiaries, associates, and joint ventures
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
371
CHAPTER 6
Main
INDICATORS
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
373
MAIN
INDICATORS
6.
MAIN
INDICATORS
Compliance with legal and regulatory
requirements
Staff information
Board of Directors Structure
Sustainability indicators (SASB)
Other information
374
Legal and regulatory
compliance
Enforceable penalties
The number of enforceable penalties received by Enel Chile and its subsidiaries during the 2024 financial year is
listed below:
Enforceable sanctions by scope of application
Number of Sanctions
Amount in
thousands of Ch$
Customers (1)
4
3,048
Company Employees
1
4,037
Environmental
1
393,559
Free competition
-
-
Criminal Liability of Legal Entities (Law No. 20,393)
-
-
Total
6
400,664
(1) All correspond to sanctions within the scope of Law No. 19,496 on the Protection of Consumer Rights against Enel Distribución Chile S.A.
Procedures aimed at preventing and detecting
regulatory non-compliance
Related to customers
The Company has implemented a customer service
process that includes a set of protocols and operating
procedures to promptly address all customer queries,
requirements, and complaints. It aims to deliver
consistent service, regardless of the contact channel,
while respecting and often exceeding the provisions
of Law No. 19,496 on the Protection of Consumer
Rights. As a result, the service exceeds expectations
and enhances the customer experience. The focus
is on self-service as well as on providing executive
attention with solutions during the first contact.
Related to employees
The Company has established procedures to prevent
and detect violations of labor laws and regulations.
Its
internal
regulations
include
processes
for
handling complaints, conducting investigations, and
enforcing sanctions related to workplace and sexual
harassment, along with a channel for submitting
complaints through the Ethics Channel website.
Similarly, the People and Organization area maintains
regular communication with the Legal department
to assess and identify potential risks in this domain
and formulate appropriate actions. Additionally, the
People and Organization area has provided training to
employees on fundamental rights and their promotion
and prevention.
[NCG 461 - 8.1.1; 8.1.2; 8.1.3; 8.1.4; 8.1.5]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Legal and regulatory compliance
375
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Related to the environment
The
Company
applies
the
most
demanding
environmental standards, following its internal policy
on the matter. The strategy for complying with
environmental obligations has involved developing
environmental certification processes in generation
plants and identifying and constantly updating
applicable regulatory-environmental standards. In
this context, patterns associated with environmental
compliance have been generated, with a specific
unit that guarantees compliance with obligations and
permits, both internally and by the companies that
provide services to Enel Chile.
In this context, the Superintendency of the Environment
issued a final sanction during the 2024 fiscal year
related to file A-002-2018. The sanction involved
imposing a fine of $393,559,161 on Geotérmica del
Norte S.A., a subsidiary company. Conversely, it has
been reported that no sanctioning processes were
initiated against the company's projects during this
period. Consequently, no compliance programs or
repair plans have been presented or approved. Finally,
the Environmental Superintendency declared the
satisfactory execution of the following Compliance
Programs in 2024: (i) Rol F-005-2019, associated with
the Ralco Hydroelectric Plant of Enel Generación Chile
S.A.; and (ii) Rol D-076-2018, connected to the Renaico
Wind Farm of Enel Green Power Chile S.A. There were
no Repair Programs associated with the group's
companies.
Related to free competition
The Company has initiated a program approved by
the Board of Directors to ensure compliance with
antitrust regulations. This program includes internal
guidelines that outline the appropriate measures to
prevent any actions that threaten free competition.
It provides valuable information and training to the
Company's employees, encouraging them to promptly
identify and address potential risks. By doing so, they
can effectively avert any undesirable incidents. This
initiative establishes an active prevention program
tailored to the Company's needs and aligns with its
overall business strategies.
The program consists of several components that aim
to ensure compliance with regulations and promote
fair competition. These components include (A) Free
Competition Manual, which contains a description and
explanation of antitrust regulations; B) Guide to Risks
and Conduct, which includes 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)
Channel for consultations on free competition; D)
Annual training program on Free Competition for
the Company's workers; E) Procedure of behavior in
case of raids (Dawn Raids); and F) Internal control with
respect to the figure of interlocking (simultaneous
participation in relevant executive positions or director
in competing companies). These documents are
available to employees on the Company's Intranet
services.
Related to compliance and liability of legal
entities
The Company has implemented a crime prevention
model established under Law No. 20.393, which
defines the criminal liability of legal entities. This model
is known as the Criminal Risk Prevention Model. It has
been approved by senior management and adopted
and published on the Company's website. Additionally,
the Code of Ethics, the Criminal Risk Prevention
Model, the Enel Global Compliance Program, and the
Zero Tolerance for Corruption Plan are integral to the
control environment outlined by the Enel Group and
are accessible on the website. Enel Chile's Criminal
Risk Prevention Model was reviewed and updated
with the advice of a third-party expert, following the
implementation of Law No. 21.595 on Economic and
Environmental Crimes in August 2023 and the changes
introduced to Law No. 20,393.
Legal and regulatory compliance
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
376
Staff information
Diversity in the organization
Number of people by gender
Job category
Men
Women
Total
Senior Management
9
2
11
Management
27
7
34
Middle management
254
72
326
Operating Staff
52
1
53
Sales Force
19
6
25
Administrative Staff
12
35
47
Auxiliary Staff
-
-
-
Other Professionals
943
361
1,304
Other Technicians
145
7
152
Total
1,461
491
1,952
[NCG 461 - 5.1.1; 5.1.2; 5.1.3; 5.1.4; 5.1.5]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Staff information
377
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Job category
Argentinean
Brazilian
Chilean
Colombian
Peruvian
Italian
Spanish
Other
nationalities
Total
Senior Management
-
-
10
1
-
-
-
-
11
Men
-
-
8
1
-
-
-
-
9
Women
-
-
2
-
-
-
-
-
2
Management
-
1
30
1
1
-
-
1
34
Men
-
-
26
1
-
-
-
-
27
Women
-
1
4
-
1
-
-
1
7
Middle management
3
-
308
6
-
-
4
5
326
Men
2
-
245
1
-
-
4
2
254
Women
1
-
63
5
-
-
-
3
72
Operating staff
16
-
34
-
2
-
-
1
53
Men
15
-
34
-
2
-
-
1
52
Women
1
1
Sales Force
-
-
24
-
-
-
-
1
25
Men
-
-
18
-
-
-
-
1
19
Women
-
-
6
-
-
-
-
-
6
Administrative Staff
-
-
47
-
-
-
-
-
47
Men
-
-
12
-
-
-
-
-
12
Women
-
-
35
-
-
-
-
-
35
Auxiliary Staff
-
-
-
-
-
-
-
-
-
Men
-
-
-
-
-
-
-
-
-
Women
-
-
-
-
-
-
-
-
-
Other Professionals
9
3
1,210
12
3
3
2
62
1,304
Men
7
-
897
5
2
2
2
28
943
Women
2
3
313
7
1
1
-
34
361
Other Technicians
-
-
148
1
-
-
-
3
152
Men
-
-
142
1
-
-
-
2
145
Women
-
-
6
-
-
-
-
1
7
Total
28
4
1,811
21
6
3
6
73
1,952
Men
24
-
1,382
9
4
2
6
34
1,461
Women
4
4
429
12
2
1
-
39
491
Number of people by nationality
Staff information
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
378
Job category
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 old
Total
Senior Management
-
1
7
3
-
-
11
Men
-
1
5
3
-
-
9
Women
-
-
2
-
-
-
2
Management
-
3
12
17
2
-
34
Men
-
1
10
14
2
-
27
Women
-
2
2
3
-
-
7
Middle management
1
82
136
92
15
-
326
Men
1
54
101
84
14
-
254
Women
-
28
35
8
1
-
72
Operating Staff
-
19
23
10
1
-
53
Men
-
19
22
10
1
-
52
Women
-
-
1
-
-
1
Sales Force
2
11
8
3
1
-
25
Men
1
9
5
3
1
-
19
Women
1
2
3
-
-
-
6
Administrative Staff
2
2
10
22
11
-
47
Men
-
1
2
4
5
-
12
Women
2
1
8
18
6
-
35
Auiliary Staff
-
-
-
-
-
-
-
Men
-
-
-
-
-
-
-
Women
-
-
-
-
-
-
-
Other Professionals
24
439
485
270
85
1
1,304
Men
12
288
348
217
77
1
943
Women
12
151
137
53
8
-
361
Other Technicians
1
28
51
47
25
-
152
Men
1
27
48
45
24
-
145
Women
-
1
3
2
1
-
7
Total
30
585
732
464
140
1
1,952
Men
15
400
541
380
124
1
1,461
Women
15
185
191
84
16
-
491
Number of people by age range
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Staff information
379
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Number of people by seniority
Job category
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
1
-
3
1
6
11
Men
1
-
3
-
5
9
Women
-
-
-
1
1
2
Management
-
2
4
1
27
34
Men
-
1
2
1
23
27
Women
-
1
2
-
4
7
Middle management
21
35
30
41
199
326
Men
15
23
24
33
159
254
Women
6
12
6
8
40
72
Operating Staff
30
1
1
3
18
53
Men
30
-
1
3
18
52
Women
-
1
-
-
-
1
Sales Force
5
10
-
1
9
25
Men
4
8
-
-
7
19
Women
1
2
-
1
2
6
Administrative Staff
-
1
5
5
36
47
Men
-
-
2
1
9
12
Women
-
1
3
4
27
35
Auxiliary Staff
-
-
-
-
-
-
Men
-
-
-
-
-
-
Women
-
-
-
-
-
-
Other Professionals
196
298
140
93
577
1,304
Men
141
196
94
73
439
943
Women
55
102
46
20
138
361
Other Technicians
18
9
15
4
106
152
Men
17
8
14
4
102
145
Women
1
1
1
-
4
7
Total
271
356
198
149
978
1,952
Men
208
236
140
115
762
1,461
Women
63
120
58
34
216
491
Number of people with different capacities
Job category
Men
Women
Total
Senior Management
-
-
-
Management
-
-
-
Middle management
-
-
-
Operating Staff
-
-
Sales Force
-
-
-
Administrative Staff
-
-
Auxiliary Staff
-
-
-
Other Professionals
7
2
9
Other Technicians
-
1
1
Total
7
3
10
Staff information
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
380
Work adaptability
Type of working day
Type of contract
Men
Women
Total
Number
Percentage
Number
Percentage
Number
Percentage
Full-time
1,461
75%
491
25%
1,952
100%
Part-time
-
-
-
-
-
-
Total
1,461
75%
491
25%
1,952
100%
Type of Work Adaptability
Type of contract
Men
Women
Total
Number
Percentage
Number
Percentage
Number
Percentage
Full teleworking
2
0%
0
0%
2
0%
Full face-to-face
440
23%
37
2%
477
25%
Part-time teleworking
1,019
52%
454
23%
1,473
75%
Work adaptability agreements for people
with family responsibilities
0
0%
0
0%
0
0%
Time bands for caregivers up to 12 years
old
0
0%
0
0%
0
0%
Total
1,461
75%
491
25%
1,952
100%
Type of
contract
Indefinite term
Fixed Term
By piece of work
Fee-based
Total
Number
%
Number
%
Number
%
Number
%
Number
%
Men
1,461
74.8%
-
0%
-
0%
-
0%
1,461
74.8%
Women
491
25.2%
-
0%
-
0%
-
0%
491
25.2%
Total
1,952
100.0%
-
0%
-
0%
-
0%
1,952
100.0%
Type of contract
[NCG 461 - 5.2]
[NCG 461 - 5.3]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Staff information
381
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Salary gap
Job category
Average
Median
Senior Management
143%
140%
Management
97%
100%
Middle management
86%
85%
Operating Staff
n/a
n/a
Sales Force
84%
96%
Administrative Staff
124%
122%
Auxiliary Staff
n/a
n/a
Other professionals
83%
86%
Other Technicians
89%
86%
Total
84%
85%
(*) The calculation of the wage gap for 2024 was conducted as indicated by NCG 519. That is, the gross hourly wage for each category is con-
sidered, considering the workers active as of 12/31/2024. In the gross salary, I include all fixed and variable allowances, including base salary,
bonuses, allowances, and overtime, among others. Expatriates are excluded from the calculation, as the total gross salary is determined based
on the local market of the country of origin, and they receive additional benefits due to international mobility.
Training
Annual average training hours by gender and job category
Job category
Average Training hours
Men
Women
Total average
Senior Management
-
-
-
Management
56
52
55
Middle management
57
53
56
Operating Staff
74
-
74
Sales Force
-
-
-
Administrative Staff
-
-
-
Auxiliary Staff
-
-
-
Other professionals
57
59
57
Other Technicians
-
-
-
Average
57
58
57
[NCG 461 - 5.4.2]
[NCG 461 - 5.8 ii; iii]
Staff information
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
382
Maternity leave
Job category
Average days of maternity leave used
Men
Women
Post-natal 5 days
Post-natal parenting
Senior Management
-
-
-
Management
-
-
-
Middle management
7
-
159
Operating Staff
-
-
-
Sales Force
-
-
-
Administrative Staff
-
-
-
Auxiliar Staff
-
-
-
Other Professionals
6
-
134
Other Professionals
7
-
-
Average
7
-
147
Category
Definition
Postnatal maternal
Rights of working mothers to take twelve weeks off after childbirth
Postnatal parenting
The right of a working father to five days of paid leave from the employer for the birth of a son or
daughter
Postnatal parenting
The working mother has the right to twelve weeks of rest following the postnatal period, with up
to six weeks transferable to the father
Total number of trained staff members and the corresponding percentage compared
to the overall staff, categorized by gender and position
Job category
Training
Men
Women
Total
Number
Percentage
Number
Percentage
Number
Percentage
Senior Management
-
-
-
-
-
-
Management
33
2%
8
0.4%
41
2%
Middle management
245
13%
67
3%
312
16%
Operating Staff
37
2%
-
-
37
2%
Sales Force
-
-
-
-
-
-
Administrative Staff
-
-
-
-
-
-
Auxiliary Staff
-
-
-
-
-
-
Other Professionals
1,119
58%
409
21%
1,528
79%
Other Technicians
-
-
-
-
-
-
Total
1,434
75%
484
24%
1,918
99%
Note: Enel Chile's total workforce is 1,952, and all percentages calculated are relative to this figure.
[NCG 461 - 5.7]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Staff information
383
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Postnatal and Parental Leave
2024
Men
Women
Legal postnatal days
5
84
Legal parental postnatal days
The benefit is exchanged
by the mother for up to 42
days of full-time work or
up to 84 days of part-time
work
84 days if full-time or
126 days for half-time
reinstatement
Additional days to the ones established by law granted by the Company as
postnatal leave
1
-
People who used their postnatal leave
9
23
Percentage of people who used postnatal care out of the total number of
eligible people
100%
100%
Occupational safety
Occupational safety
2024
Metas 2024(*)
Accident rate
0.1
0
Fatality Rate
0.0
0
Rate of occupational diseases
0.0
0
Average days lost due to accidents
51.0
0
(*) At the Enel Group level, the Company’s goals are consistently focused on zero accidents. Consider the monthly average of workers hired
directly by Enel Chile and its subsidiaries.
[NCG 461 - 5.6]
Staff information
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
384
Board of Directors
Structure
Board of Directors Diversity
Number of people by gender
2024
Women
2
Men
4
Total
6
Number of people by age range
2024
Between 41 and 50 years old
2
Women
2
Men
-
Between 51 and 60 years old
3
Women
-
Men
3
Between 61 and 70 years old
-
Women
-
Men
-
Over 70 years of age
1
Women
-
Men
1
Total
6
Number of people by nationality
2024
Chilean
4
Women
1
Men
3
Italian
2
Women
1
Men
1
Total
6
Number of people by seniority in office
2024
Less than 3 years
3
Women
1
Men
2
Between 3 and 6 years
1
Women
1
Men
-
Over 6 and under 9 years
2
Women
-
Men
2
Between 9 and 12 years
-
Women
-
Men
-
More than 12 years
-
Women
-
Men
-
Total
6
[NCG 461 - 3.2 xiii a; b; c; d]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Board of Directors Structure
385
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Sustainability
indicators
SASB - Sustainability Accounting Standards Board
Enel Chile S.A. presents the disclosure of the
Sustainability Accounting Standards Board (SASB)
standards applicable to the Electric Companies and
Generators industrial sector.
The Board of Directors of the Company, during a
meeting on March 27, 2024, in compliance with
section 8.2 of General Rule No. 461 from the Chilean
Financial Market Commission (CMF) and following the
guidelines in section III. 2 of the Implementation and
Supervision Guide issued by the CMF in September
2022, exercised its administrative powers and
resolved to include the SASB standard for the Electric
Companies and Electric Generators sector in Enel
Chile's 2023 Integrated Annual Report, aligned with
the Sustainable Industry Classification System (SICS).
Additionally, on the same date, the Board of Directors
approved the accounting parameters for the industry,
documenting the reasons why some of these would
not be included in the 2023 Integrated Annual Report.
Scope of information
The information scope includes all subsidiary entities
that fall within Enel Chile's consolidation perimeter, as
detailed in the section on Subsidiaries, Associates, and
Joint Ventures in Chapter 5 of this Integrated Annual
Report. If any of these indicators exclude a subsidiary
company, this will be clearly stated.
[NCG 461 - 9.1]
Sustainability indicators
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
386
Emissions
Code
Accounting Parameter
Category
Unit of Measure
Answer
IF-EU-110a.1
Gross total scope 1 emissions
Quantitative
Metric
tons
(t)
CO2-e
2,376,147 ton CO2 equivalent
IF-EU-110a.1
Percentage
of
Scope
1
gross
emissions
covered
by
emission
limitation
regulations
Quantitative
Percentage (%)
100%
IF-EU-110a.1
Percentage
of
Scope
1
gross
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
2,555,653 ton CO2 equivalent
IF-EU-110a.3
Analysis of the long- and
short-term strategy or plan to
manage Scope 1 emissions,
emission reduction targets,
and analysis of the results
against those targets
Debate
and
analysis
Not applicable
Enel Chile has continued to progress in
dismantling its coal facilities, which were
closed in previous years, throughout 2024.
In this context, the Company reiterates
its commitment to the principles of a
just transition, which are in accordance
with global frameworks that address
issues such as climate change, human
rights, gender equity, labor standards,
and inclusive development. The social
repercussions
and
environmental
impacts that may arise during this
process necessitate special attention to
these principles.
Air quality
Code
Accounting Parameter
Category
Unit of Measure
Answer
IF-EU-120a.1
Emissions
into
the
atmosphere of the following
pollutants: 1) NOx (except
N2O), 2) SOx, 3) particulate
matter (PM10), 4) lead (Pb),
and 5) mercury (Hg)
Quantitative
Metric Ton
1) NOx: 1,331 ton
2) SOx: 35.2 ton
3) Particulate matter: 46.9 ton
4) Led (Pb): n/a
5) Mercury (Hg): 0.0 ton
IF-EU-120a.1
The percentage of each in or
near densely populated areas
Quantitative
Percentage (%)
1) NOx (except N2O): 73%
2) SOx: 52%
3) Particulate matter (PM10): 8.4%
4) Led (Pb): n/a
5) Mercury (Hg): 0%
(*) Considers 100% of the Enel Chile Group's thermal generation plants.
(**) For further details, see Chapter 3 Strategy and Risk Management of this Integrated Annual Report.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Sustainability indicators
387
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Water management
Code
Accounting Parameter
Category
Unit of Measure
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
Thousand cubic
meters (m³),
percent (%)
(1) Total water extracted: 4,055 thousand m³
(2) Total water consumed: 1,899 thousand m³
(3.1) Total percentage of water extraction in
water-stressed areas 86.5%
(3.2) Total percentage of water consumption
in water-stressed areas: 95 %
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
Debate and
analysis
n/a
The Company has focused its efforts on
developing effective water management
practices to optimize the use of this vital
resource. The prolonged drought has also
affected gas management, which has
become a recent priority. To address the
risks and opportunities related to climate
change, a Group policy was introduced
in 2021, which includes Enel Américas as
a subsidiary. This policy, titled "Climate
Change Risks and Opportunities, " outlines
standard guidelines for assessing such risks
and opportunities, promoting an integrated
approach to climate change and the energy
transition within the Group's activities. This
approach informs industrial and strategic
decisions, enhances business resilience, and
fosters long-term sustainable value creation
aligned with adaptation and mitigation
strategies.
Additionally, from 2022 to the present, the
Company has continued to implement the
WAVE (Water Value Enhancement) program,
which aims to reduce water consumption
throughout
the
electricity
production
process and maximize the resource's use in
all plants. Water consumption is monitored
quarterly, ensuring consistent and effective
oversight. This results in a 25% decrease in
water consumption compared to 2023.
In solar technology, other noteworthy
initiatives aimed at reducing water usage
in the panel washing process include: 1) Dry
cleaning of panels: tractors equipped with
special brushes are used for cleaning, thus
eliminating water consumption. 2) Night
parking tracker: This involves adjusting the
parking angle of the solar tracker from 0° to
45° during the night, from sunset to sunrise.
This position achieves two effects in Chile: i)
dust particles do not adhere to the module
due to the high inclination, and ii) humidity
in the Atacama Desert can reach up to 99%,
causing condensation and self-cleaning in
our solar plants.
Sustainability indicators
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
388
Coal ash management
Code
Accounting Parameter
Category
Unit of Measure
Answer
IF-EU-150a.1
Amount of waste produced
by coal combustion (RCC)
Quantitative
Metric tons (t)
0
IF-EU-150a.1
Recycled percentage
Quantitative
Percentage (%)
n/a
IF-EU-150a.2
Total number of coal-fired
waste
(RCC)
reservoirs,
broken
down
by
hazard
potential
classification
and
structural
integrity
assessment
Quantitative
Number
0
Access to energy
Code
Accounting Parameter
Category
Unit of Measure
Answer
IF-EU-240a.1
Average
Retail
Electric
Rate for (1) Residential, (2)
Commercial, and (3) Industrial
Customers
Quantitative
Velocity
Average Retail Electric Rate (CLP/kWh)(*)
• Residential customers: 170.6 ($CLP/kWh)
• Commercial customers: 116.2 ($CLP/
kWh)
• Industrial customers: 176.6 ($CLP/kWh)
• Others: 11.2 ($CLP/kWh)
IF-EU-240a.3
Number
of
residential
customer power outages due
to non-payment
Quantitative
Number
370,642
IF-EU-240a.3
Percentage
reconnected
within 30 days
Quantitative
Percentage (%)
84.1%
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Sustainability indicators
389
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
(*) The average electricity rate by customer segment is calculated based on energy consumption + other costs associated with electricity (dis-
tribution service, transportation, power consumed (when applicable), and fines), divided by the total energy sold. All values include VAT. For the
"Other" segment, only Toll customers are considered.
(**) For more details, see Law No. 21,185 (https://www.bcn.cl/leychile/navegar?idNorma=1138181&idParte=10065761) and Law No. 21,472 (https://
www.bcn.cl/leychile/navegar?idNorma=1179524).
Code
Accounting Parameter
Category
Unit of Measure
Answer
IF-EU-240a.4
Analysis
of
how
external
factors
affect
customers'
electricity
affordability,
including
the
economic
conditions of the service
area.
Debate and
analysis
n/a
Given
the
regulatory
context,
Enel
Distribución
Chile
aims
to
achieve
efficiency
levels
that
maintain
the
quality and security of supply within
the framework of tariff recognition,
contributing to greater affordability for
customers. The company is engaging with
regulators to secure affordable rates, not
only in distribution but also by promoting
the adoption of renewable technologies
and various alternatives that provide
supply continuity more economically than
fossil fuels while enabling progress toward
Net Zero. Furthermore, the authority
established the Stabilized Price for the
Regulated Customer, allowing rates to be
maintained without increases since the
end of 2019, thus advancing the benefits
of contracts from distribution companies
awarded at lower generation prices. Enel
Chile is firmly committed to modernizing
and improving the efficiency of its grids,
increasingly focusing on the interaction
between the group and its customers,
who are becoming both consumers and
producers of energy due to innovative
technologies and ongoing research into
smart grids.
In the coming years, electricity production
will increasingly shift away from large,
centralized generation plants toward a
variety of plants of different sizes. Thus,
grids will need to adapt to manage the
variable and decentralized nature of
renewable sources across multiple entry
points,
emphasizing
active
customer
participation and the resulting diffusion of
generation plants and self-consumption
facilities.
Sustainability indicators
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
390
Workforce health and safety
Code
Accounting Parameter
Category
Unit of Measure
Answer
IF-EU-320a.1
(1)
Total
Recordable
Incident Rate (TRIR) a) direct
employees
b)
contractor
employees
Quantitative
Frequency rate
a)TRIR: 0
b)TRIR: 1.6
IF-EU-320a.1
(2) Fatality rate a) direct
employees
b)
contractor
employees
Quantitative
Frequency rate
a) Mortality rate: 0
b) Mortality rate: 0
IF-EU-320a.1
(3) Near Miss frequency rate
(NMFR) a) direct employees b)
contractor employees
Quantitative
Frequency rate
a) NMFR: 0.2
b) NMFR: 1.6
Final use efficiency and demand
Code
Accounting Parameter
Category
Unit of Measure
Answer
IF-EU-420a.2
Percentage of electrical load
supplied with smart grid
technology
Quantitative
Percentage (%) per
megawatt-hour
(MWh)
8.46%
IF-EU-420a.3
Electricity
savings
by
customers,
thanks
to
efficiency measures, for each
market
Quantitative
Megawatt
hours
(MWh)
Not applicable locally; it corresponds to
U.S. regulation
Nuclear safety and emergency response
Code
Accounting Parameter
Category
Unit of Measure
Answer
IF-EU-540a.1
Total
number
of
nuclear
power units, broken down
by the "Stock Matrix" column
of the United States Nuclear
Regulatory
Commission
(NRC)
Quantitative
Number
This is not applicable; Enel Chile does not
own or operate any nuclear power units.
IF-EU-540a.2
Description of initiatives to
manage nuclear safety and
emergency preparedness
Debate and
analysis
n/a
This is not applicable; Enel Chile does not
own or operate any nuclear power units.
Electricity grid resistance
Code
Accounting Parameter
Category
Unit of Measure
Answer
IF-EU-550a.1
Number of incidents of non-
compliance 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) Customer Average Outage
Duration Index (CAIDI), which
includes days on which major
events occur
Quantitative
Minutes, number
SAIDI: 150.3 (Minutes)(*)(**)
SAIFI: 1.3 (Times)(*)(**)
CAIDI: 116.7 (*)(**)
(*) Values may change due to the approval process by the relevant regulatory authority. As of the date of this report's submission, this process has
not yet been completed.
(**) The values presented do not contain information related to the climatic event of August 2024, as it is under judicial proceedings without a final
resolution.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Sustainability indicators
391
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Activity parameters
Code
Accounting Parameter
Category
Unit of Measure
Answer
IF-EU-000.A
Number of (1) residential, (2)
commercial, and (3) industrial
customers served
Quantitative
Number
(1) Residential customers: 1,944,318
(2) Commercial customers: 158,100
(3) Industrial: 11,505
(4) Other: 46,862
(5) Tolls: 1,821
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 customers: 5,819,921 MWh
(2) Commercial customers: 2,213,018
MWh
(3) Industrial: 674,523 MWh
(4) Other: 568,041 MWh
(5) Tolls: 5,534,764 MWh
IF-EU-000.C
Length of transmission and
distribution lines
Quantitative
Kilometers (km)
Medium Voltage Distribution Lines: 5,741
km Low Voltage Distribution Lines: 12,263
km
IF-EU-000.D
(1)Total electricity generated,
(2)
percentage
by
main
energy source, (3) percentage
in regulated markets
Quantitative
Megawatt
hours (MWh),
Percentage (%)
(1)Total net production: 24,638,549
MWhEmissions-free production:
19,738,286 MWh
(2) Net production: Gas & Oil: 19.9%;
Water: 55.6%; Wind: 8.8%; Geothermal:
1.1%; Photovoltaic: 14.7%
(3) 0%
IF-EU-000.E
Total electricity purchased in
bulk
Quantitative
Megawatt hours
(MWh)
11,335,026 MWh (*)
(*) Corresponds to purchases made by the generation segment, which includes both operations carried out in the spot market and contract
purchases from other generators.
Note: As of the date of publication, it is in the process of verification.
Sustainability indicators
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
392
Other information
Supplier payment
Range
Company
National
Foreign
Number of
documents(1)
Amount (Ch$
million)
No. of
suppliers
Number of
documents(1)
Amount (Ch$
million)
No. of
suppliers
Up to 30
days
Empresa Eléctrica Pehuenche S.A.
3,789
22,423
425
2
696
2
Enel Chile S.A.
2,177
17,325
272
66
4,033
22
Enel Colina S.A.
769
1,384
52
-
-
-
Enel Distribución S.A.
23,588
969,719
668
43
11,159
8
Enel Generación Chile S.A.
31,785
2,196,769
1,457
104
118,886
14
Enel Green Power Chile S.A.
14,801
131,181
1,206
83
20,659
36
Enel Mobility Chile SpA
298
326
9
-
-
-
Enel X Chile S.p.A.
3,098
48,549
174
19
331
2
Geotérmica del Norte S.A.
6,589
23,324
718
12
223
2
Parque Talinay Oriente S.A.
6,082
2.4
672
7
499
3
Sociedad Agrícola De Cameros Ltda
4
11
3
-
-
-
Enel X Way Chile S.A.
910
3,599
83
10
1,251
4
Total
93,890
3,417,010
5,739
346
157,737
93
Between
31 and
60 days
Empresa Eléctrica Pehuenche S.A.
55
2,786
34
3
3,628
2
Enel Chile S.A.
492
9,326
118
35
821
13
Enel Colina S.A.
94
596
22
-
-
-
Enel Distribución S.A.
2,961
41,168
262
111
12,452
30
Enel Generación Chile S.A.
4,575
83,654
349
83
20,748
29
Enel Green Power Chile S.A.
1,536
35,355
334
103
9,163
41
Enel Mobility Chile SpA
227
132
9
-
-
-
Enel X Chile S.p.A.
600
11,396
111
4
156
3
Geotérmica del Norte S.A.
82
3,298
46
4
414
4
Parque Talinay Oriente S.A.
73
833
31
1
3
1
Sociedad Agrícola De Cameros Ltda
7
36
2
-
-
-
Enel X Way Chile S.A.
180
672
30
7
1,175
4
Total
10,882
189,252
1,348
351
48,560
127
More
than 60
days
Empresa Eléctrica Pehuenche S.A.
63
3,741
36
4
496
2
Enel Chile S.A.
207
10,807
45
33
3,488
7
Enel Colina S.A.
281
970
17
-
-
-
Enel Distribución S.A.
8,292
48,717
162
155
28,349
26
Enel Generación Chile S.A.
1,035
243,934
211
128
27,941
29
Enel Green Power Chile S.A.
951
214,477
189
147
150,173
28
Enel Mobility Chile SpA
18
21
5
-
-
-
Enel X Chile S.p.A.
115
2,319
44
17
2,083
5
Geotérmica del Norte S.A.
73
3,809
42
1
96
1
Parque Talinay Oriente S.A.
67
601
38
3
126
1
Sociedad Agrícola De Cameros Ltda
2
9
1
-
-
-
Enel X Way Chile S.A.
23
122
14
6
683
4
Total
11,127
529,527
804
494
213,435
103
Total
115,899
4,135,789
7,891
1,191
419,732
323
(1) Considers number of invoices, credit notes, and debit notes.
[NCG 461 - 7.1 i; ii; iii; iv]
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Other information
393
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Time horizons
Assets and infrastructure
Years of estimated useful life
Short term
Long term
Generation of plants and equipment:
Hydraulic power plants
Civil works
10
65
Electromechanical Equipment
10
45
Combined Cycle Power Plants
10
25
Renewable Power Plants
10
50
Wind Power Plants
10
60
Solar Power Plants
10
25
Geothermal Power Plants
10
40
Distribution Plants and Equipment:
Low and medium voltage network
10
50
Measurement and remote control equipment
10
50
Primary Substations
6
25
Natural Gas Transportation:
Gas pipelines
-
20
[NCG 461 – 4.1]
Other information
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
395
CHAPTER 7
ANNEXES
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
397
ANNEXES
7.
ANNEXES
Basic information about the Company
Policies, principles, and codes
Publication of Financial Statements
Disclaimer
NCG No. 461 and N° 519 contents index
TCFD Contents Index
398
Basic information
about 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, 2024, 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$12,639,254 million as of December 31, 2024. For the year,
the net result attributable to the Parent Company was Ch$145,112 million, with an operating result of Ch$373,059
million. At the end of the year, the Company directly employed 1,952 individuals through its subsidiaries in Chile
and the branch of Enel Generación Chile in Jujuy, Argentina.
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Basic information about the Company
399
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Name or company name
Enel Chile S.A.
Domicile
Santiago de Chile
Type of company
Open Stock Company
ID Number
76.536.353-5
Address
Roger de Flor N° 2527, Torre 2, Las Condes, Santiago, Chile
Zip code
833-009 Santiago de Chile
Phones
(56) 22353 4400
Box
1557, Santiago
Registration of the Securities Registry
Nº 1,139
External Auditors
KPMG Auditores Consultores Limitada
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
ENIC
Mnemonic at the New York Stock Exchange
(New York Stock Exchange: “NYSE”)
Banco Santander Chile
Bank custodian ADS program
Citibank N.A.
Depositary bank ADS program
Feller Rate Clasificadora de Riesgo Limitada
National Risk Rating agencies
Fitch Chile Clasificadora de Riesgo Limitada
Standard & Poor´s International Rating Services
Fitch Ratings
Basic information about the Company
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
400
Policies, principles,
and codes
Ethics, Integrity, Human Rights, and Diversity
Code of Ethics
Zero Tolerance for Corruption Plan
Global Corporate Criminal Liability Compliance Program
Criminal Risk Prevention Model
Antitrust Compliance Program
Human Rights Policy
Diversity and Inclusion Policy
Privacy and Data Protection Policy
Corporate Governance
Corporate Governance Practices
Protocol of Action in Dealing with Public Officials and Public Authorities
Protocol for the Acceptance and Offering of Gifts, Presents, and Favors
Induction Procedure for New Directors
Procedure for Permanent Training and Continuous Improvement of the Board of Directors
Procedure for Informing Shareholders of Candidate Director's Background
Habituality Policy
Tax Transparency and Reporting
Investor Relations Policy
Manual for the Management of Information of Interest to the Market
Incentive-Based Compensation Policy
Sustainability
Sustainability and Community Relations Policy
Environmental Policy
Biodiversity Policy
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Policies, principles, and codes
401
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
Publication of
Financial Statements
Enel Chile's audited consolidated financial statements as of December 31, 2024, were approved by its Board
of Directors at a meeting held on February 26, 2025, and 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=&tipoentida-
d=RVEMI&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-re-
sults/financial-statements/2024/Estados-Financieros-Enel-Chile-202412.pdf
[NCG 461 - 12]
Publication of Financial Statements
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
402
Disclaimer
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 2024, in compliance
with General Standard No. 461 and No. 519, issued by the Financial Market Commission:
Marcelo Castillo Agurto
Presidente
Isabella Alessio
Directora
Guiseppe Turchiarelli
Gerente General
Pablo Cabrera Gaete
Director
Salvatore Bernabei
Director
María Teresa Vial Álamos
Directora
Pablo Cruz Olivos
Director
Firmato da Pablo Cabrera
Firmato da Pablo Cruz
Firmato da
Salvatore Bernabei
Firmato da Isabella
Alessio
Firmato da María
Teresa Vial
Signed by Marcelo
Castillo Agurto
Signed by
Giuseppe
Turchiarelli
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
Disclaimer
Chairman of the board
Marcelo Castillo Agurto
Director
Isabella Alessio
Director
Salvatore Bernabei
Director
Pablo Cabrera Gaete
Director
Pablo Cruz Olivos
Director
María Teresa Vial Álamos
CEO
Guiseppe Turchiarelli
403
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
NCG No.461 and No.519 index
NCG Code
N°461
Requirement
Chapters
Sections
Page
2
Entity Profile
2.1
Mission, vision, purpose, and values
2. Governance
Value and ethics pillars
79
2.2
Historical Information
5. Other Corporate
Information
Historical information; Main
milestones 2024
34-35
2.3
Property
-
-
-
2.3.1
Control situation
2. Governance
Ownership and Control
Structure
42
2.3.2
Major changes in ownership or
control
2. Governance
Major changes in ownership
44
2.3.3
Identification of partners or majority
shareholders
2. Governance
Majority shareholders
43
2.3.4
Shares, their characteristics, and
rights
-
-
-
2.3.4 i.
Description of the series of shares
2. Governance
Ownership and Control
Structure
42
2.3.4 ii.
Dividend policy
5. Other Corporate
Information
Dividend policy 2025 and 2026
333-334
2.3.4 iii.
Statistical information
-
-
-
2.3.4 iii. a.
Dividends
5. Other Corporate
Information
Dividends paid
334-335
2.3.4 iii. b.
Exchange transactions
5. Other Corporate
Information
Statistical information on shares
330-332
2.3.4 iii. c.
Number of shareholders
2. Governance
Ownership and Control
Structure
42
2.3.5
Other Securities
5. Other Corporate
Information
Other securities issued
332
3
Corporate governance
3.1
Governance framework
-
-
-
3.1 i.
Proper functioning of Corporate
Governance
2. Governance
Governance framework
45
3.1 ii.
Sustainability approach in business
2. Governance
Governance framework
45-46
3. Strategy and risk
management
Integration of sustainability into
the business model; Zero-
emission ambition
117-120 ; 163-201
3.1 iii.
Detection and management of
conflicts of interest
2. Governance
Monitoring and control of
issues relevant to stakeholders;
Conflicts of interest
55;78
3.1 iv.
Stakeholder interests
2. Governance
Monitoring and control of issues
relevant to stakeholders;
55
3. Strategy and risk
management
Stakeholders, Materiality, and
Key Results 2024
121-135
3.1 v.
Promoting innovation
4. Enel Chile's business
and management 2024
Innovation in the Generation
segment, Innovation in the
Distribution segment
277-278;279-281
3.1 vi.
Reduction of organizational barriers
2. Governance
Governance Framework;
Training, detection, and
reduction of barriers
Organization of the Board of
Directors
45-46; 57
4. Enel Chile's business
and management 2024
Diversity and inclusion
298-299
NCG No.461 and No.519 index
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
404
NCG Code
N°461
Requirement
Chapters
Sections
Page
3.1 vii.
Identifying skills and knowledge
4. Enel Chile's business
and management 2024
Training & Development -
Training
296-298
3.1 vii.
Organization chart
2. Governance
Executive Team
64
3.2
Board of Directors
-
-
-
3.2 i.
Identification of Board Members
Board of Directors
Board of Directors
10-13
2. Governance
Composition and experience of
the Board of Directors
48-50
3.2 ii.
Income of Board Members
2. Governance
Remuneration of the Board of
Directors and Committee of
Directors
62-63
3.2 iii.
Expert Recruitment Policy
2. Governance
Hiring of Board Advisors
59
3.2 iv.
Board of Directors Knowledge Matrix
2. Governance
Board of Directors Experience
Matrix
50
3.2 v.
Induction procedures for new
members of the Board of Directors
2. Governance
Induction Procedure
55
3.2 vi.
Periodicity of meetings with Risks,
Internal Audit, and External Audit
2. Governance
Board Meetings
52-53
3.2 vii.
How to report on environmental,
social, and climate change matters
2. Governance
Monitoring climate change
risks; Monitoring and control of
issues relevant to stakeholders;
Monitoring of social issues
54-55
3. Strategy and risk
management
Governance for climate change
167 - 168
3.2 viii.
Field visits
2. Governance
Field visits
56
3.2 ix.
Board Evaluation
2. Governance
Evaluating the effectiveness of
the Board of Directors
-
3.2 ix. a.
Training Areas
2. Governance
Training, detection, and
reduction of organizational
barriers of the Board of
Directors
57
3.2 ix. b.
Detection and reduction of
organizational barriers
2. Governance
Training, detection, and
reduction of organizational
barriers of the Board of
Directors
57
3.2 ix. c.
Hiring of expert advice for evaluation
of the performance and functioning
of the Board of Directors
2. Governance
Evaluating the effectiveness of
the Board of Directors
56-57
3.2 x.
Minimum number of regular
meetings
2. Governance
Attendance at Board meetings
57-58
3.2 xi.
Change in its form of internal
organization and operation
2. Governance
Operational Continuity Plan
58
3.2 xii.a.b.c.d
Information system
2. Governance
Electronic dispatch and
information system
58
3.2 xiii.
Composition of the Board of
Directors
-
-
-
3.2 XIII. to.
Total number of directors
6. Main indicators
Composition of the Board of
Directors
384
3.2 XIII. b.
Number of directors by nationality
6. Main indicators
Composition of the Board of
Directors
384
3.2 XIII. c.
Number of directors by age range
6. Main indicators
Composition of the Board of
Directors
384
3.2 XIII. d.
Number of directors by seniority
6. Main indicators
Composition of the Board of
Directors
384
3.2 XIII. and.
Number of directors with disabilities
2. Governance
Board of Directors
48-49
3.2 XIII. f.
Gender pay gap
2. Governance
Board of Directors
48-49
3.3
Board Committees
-
-
-
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
NCG No.461 and No.519 index
405
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
NCG Code
N°461
Requirement
Chapters
Sections
Page
3.3 i.
Description of the Role and
Functions of the Directors'
Committee
2. Governance
Role of the Directors'
Committee
60
3.3 ii.
Identification of the members of the
Directors’ Committee
2. Governance
Composition of the Directors’
Committee
59
3.3 iii.
Income of the members of each
committee in comparative form
2. Governance
Remuneration of the Board of
Directors and Committee of
Directors
62-63
3.3 iv.
Identification of the main activities of
the Directors' Committee
5. Other Corporate
Information
Annual Management Report of
the Directors’ Committee
336-339
3.3 v.
Policies for the contracting of
advisory services and expenses of
the Committee of Directors
2. Governance
Policies for the Hiring of
Advisors of the Committee of
Directors
60-61
3.3 VI.
Frequency with which the Directors'
Committee meets with the Risk,
Internal Audit, and External Audit
units
2. Governance
Meetings of the Directors'
Committee
61
3.3 VII.
Periodicity with which each
committee reports to the Board of
Directors
2. Governance
Role of the Directors'
Committee
60
3.4
Senior executives
-
-
-
3.4 i.
Basic information about each
executive
2. Governance
Enel Chile's senior executives
65-67
3.4 ii.
Executive compensation in
comparative form
2. Governance
Compensation of senior
executives
69
3.4 iii.
Compensation plans or special
benefits
2. Governance
Incentive plans for managers
and senior executives
70
3.4 iv.
Percentage of ownership interest
in the issuer held by executives and
directors
2. Governance
Ownership in the Company of
Directors and Senior Officers
44
3.5
Adherence to national or
international codes
2. Governance
Governance framework
45
3.6
Risk Management
-
-
-
3.6 i.
Board Guidelines on Risk
Management Policies
3. Strategy and risk
management
The risk governance model
137-143
3.6 ii.
Risks and opportunities
3. Strategy and risk
management
Risk classification
-
3.6 ii. to.
Risks and opportunities inherent in
the entity's activities
3. Strategy and risk
management
Risk classification
144-162
3.6 ii. b.
Information about security risks
3. Strategy and risk
management
Digital technology risks:
Protection of personal data
152-154; 157
3.6 ii. c.
Risks related to free competition
3. Strategy and risk
management
Risks related to antitrust
regulation
157
3.6 ii. d.
Risks relating to the health and
safety of consumers
3. Strategy and risk
management
Operational risks
158-162
3.6 ii. and.
Other risks and opportunities arising
from the entity's operations
3. Strategy and risk
management
Operational risks
158-162
3.6 iii.
Risk detection and prioritization
3. Strategy and risk
management
The risk governance model
137-140
3.6 IV.
Role of the Board of Directors and
senior management in the detection,
evaluation, management, and
monitoring of risks
3. Strategy and risk
management
Internal Control and Risk
Management System
140-143
3.6 v.
Risk Management Unit
3. Strategy and risk
management
Internal Control and Risk
Management System
140-143
3.6 VI.
Internal Audit Unit
3. Strategy and risk
management
Internal Control and Risk
Management System
140-143
3.6 VII.
Code of Ethics
2. Governance
Code of Ethics
80
NCG No.461 and No.519 index
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
406
NCG Code
N°461
Requirement
Chapters
Sections
Page
3.6 VIII.
Information dissemination programs
and risk management training
3. Strategy and risk
management
Risk Training
162
3.6 IX.
Whistleblowing channel for staff,
shareholders, customers, and
suppliers
2. Governance
Ethical Channel
81-83
3.6 x.
Succession Plan Procedures
2. Governance
Procedure for the replacement
of the general manager and
principal executives;
68
4. Enel Chile's business
and management 2024
Succession and transfer plan
298
3.6 xi.
Procedures for Board Review of
Salary Structures
2. Governance
Review of Executive Team Salary
Structures
68
3.6 XII.
Procedures for Approval of Salary
Structures by Shareholders
2. Governance
Review of Executive Team Salary
Structures
68
3.6 XIII.
Crime prevention model according
to Law No. 20,393
2. Governance
Criminal Risk Prevention Model
85-86
3.7
Relationship with stakeholders and
the general public
-
-
-
3.7 i.
Stakeholder and media relations unit
2. Governance
Relationship between the
Company, shareholders, and the
general public
71-76
3.7 ii.
Continuous improvement procedure
in disclosure processes
2. Governance
Investor Relations
72
3.7 iii.
Procedure for shareholders to inform
themselves about the diversity of
capabilities of director candidates
2. Governance
Relationship between the
Company, shareholders, and the
general public
71-72
3.7 IV.
Remote voting mechanism for
shareholders
2. Governance
Relationship between the
Company, shareholders, and the
general public
71
4
Strategy
4.1
Time horizons
3. Strategy and risk
management
Time horizons
393
4.2
Strategic objectives
3. Strategy and risk
management
Enel Chile's strategy
108-116
4.3
Investment plans
3. Strategy and risk
management
Investment Plan 2025-2027
115
4. Enel Chile's business
and management 2024
Relevant investments associated
with the strategic plan
258-263
5
People
5.1
Staffing
-
-
-
5.1.1
Number of people by gender
6. Main indicators
Number of people by gender
376
5.1.2
Number of people by nationality
6. Main indicators
Number of people by nationality
377
5.1.3
Number of people by age range
6. Main indicators
Number of people by age range
378
5.1.4
Seniority
6. Main indicators
Number of people by seniority
379
5.1.5
Number of people with disabilities
6. Main indicators
Number of people with
disabilities
379
5.2
Labor formality
6. Main indicators
Labor formality
380
5.3
Work adaptability
6. Main indicators
Work adaptability
380
5.4
Pay equity by gender.
-
-
-
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
NCG No.461 and No.519 index
407
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
NCG Code
N°461
Requirement
Chapters
Sections
Page
5.4.1
Equity Policy
4. Enel Chile's business
and management 2024
Pay equity
300
5.4.2
Wage gap
6. Main indicators
Wage gap
381
5.5
Workplace and sexual harassment
and workplace violence
2. Governance
Workplace harassment, sexual
harassment, and violence at
work; Training 2024
82;90
5.6
Occupational safety
4. Enel Chile's business
and management 2024
Health and safety
301-305
6. Main indicators
Occupational safety
383
5.7
Postnatal leave
4. Enel Chile's business
and management 2024
Postnatal leave and parental
program
294
6. Main indicators
Postnatal
382-383
5.8
Training and benefits
-
-
-
5.8 i.
Total amount of resources allocated
to training
4. Enel Chile's business
and management 2024
Training and development
296
5.8 ii.
Total number of trained staff and
percentage by function category
6. Main indicators
Training and development
382
5.8 iii.
Average Annual Training Hours
6. Main indicators
Training
381
5.8 iv.
Identification of the subjects
addressed by the trainings
4. Enel Chile's business
and management 2024
Training and development
296
5.8 iv.
Description of benefits and
dependence on the employment
relationship
4. Enel Chile's business
and management 2024
Proceeds
295-296
5.9
Subcontracting Policy
4. Enel Chile's business
and management 2024
Subcontracting Policy
316
6
Business Model
6.1
Industrial sector
-
-
-
6.1 i.
Nature of the entity's products and/
or services
4. Enel Chile's business
and management 2024
Enel Chile's business model
206-207
6.1 ii.
Competition faced by the entity in
the industrial sector
4. Enel Chile's business
and management 2024
Main Generation Competitors;
Distribution and Network
Competitors
212;221
6.1 iii.
Legal framework that regulates the
industry
4. Enel Chile's business
and management 2024
Structure and regulatory
framework of the electricity
industry
246-252
6.1 IV.
Domestic or foreign regulatory
entities with supervisory powers
4. Enel Chile's business
and management 2024
Main regulatory authorities
250
6.1 v.
Main stakeholders that have been
identified
3. Strategy and risk
management
Stakeholders, Materiality, and
Key Results 2024
121-127
6.1 VI.
Affiliation with guilds, associations,
or organizations
2. Governance
Membership in guilds,
associations, and other
organizations
75
6.2
Business
-
-
-
6.2 i.
Main goods produced and/or
services provided and the main
markets
4. Enel Chile's business
and management 2024
Description of Enel Chile-
Generación's business;
Description of Enel Chile-
Generación's business;
208-217;218-235
6.2 ii.
Sales channels and distribution
methods
4. Enel Chile's business
and management 2024
Description of Enel Chile's
business
217-218;219-220
6.2 iii.
Number of suppliers individually
representing at least 10% of total
purchases
4. Enel Chile's business
and management 2024
Concentration of suppliers
319
6.2 iv.
Number of customers that
individually account for at least 10%
of the segment's revenue
4. Enel Chile's business
and management 2024
Concentration of customers by
business segment
245
NCG No.461 and No.519 index
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
408
NCG Code
N°461
Requirement
Chapters
Sections
Page
6.2 v.
Main trademarks used in the
marketing of goods and services
5. Other Corporate
Information
Trademarks, patents, and
concessions
358
6.2 VI.
Entity-owned patents
5. Other Corporate
Information
Trademarks, patents, and
concessions
358
6.2 VII.
Main licenses, franchises, royalties,
and/or concessions owned by the
entity
5. Other Corporate
Information
Trademarks, patents, and
concessions
358
6.2 VIII.
Other factors of the external
environment that were relevant to
the development of the entity's
business
5. Other Corporate
Information
Risk factors
340-353
6.3
Stakeholders
3. Strategy and risk
management
Stakeholders, Materiality, and
Key Results 2024
121-135
2. Governance
Membership in guilds,
associations, and other
organizations
75
6.4
Properties and facilities
-
-
-
6.4 i.
Most relevant features of the main
properties
5. Other Corporate
Information
Properties and facilities
354-357
6.4 ii.
Concession areas and/or land owned
(for natural resource extraction
companies)
N/A
N/A
Enel Chile
does not have
significant
operations
in the field of
natural resource
extraction.
6.4 iii.
Identify whether the entity owns or
leases such facilities
5. Other Corporate
Information
Properties and facilities
354-357
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 subsidiary and
associated companies
362-369
6.5.1 ii.
Subscribed and paid-in capital
5. Other Corporate
Information
Identification of subsidiary and
associated companies
362-369
6.5.1 iii.
Corporate purpose and clear
indication of the activity(s) carried
out
5. Other Corporate
Information
Identification of subsidiary and
associated companies
362-369
6.5.1 iv.
Name and surname of the director(s)
and the general manager
5. Other Corporate
Information
Identification of subsidiary and
associated companies
362-369
6.5.1 v.
Current percentage of participation
of the parent or investing entity in
the capital of the subsidiary and
changes
5. Other Corporate
Information
Enel Chile's direct and indirect
participation
359
6.5.1 VI.
Percentage represented by the
investment in each subsidiary or
associate over the total individual
assets of the parent company
5. Other Corporate
Information
Enel Chile's direct and indirect
participation
359
6.5.1 VII.
Identification of the director, general
manager, or main executives of the
parent company who hold positions
in the subsidiary
5. Other Corporate
Information
Identification of subsidiary and
associated companies
362-369
6.5.1 VIII.
Description of the business
relationships with the subsidiaries
during the year
5. Other Corporate
Information
Identification of subsidiary and
associated companies
362-369
6.5.1 IX.
Brief list of the acts and contracts
entered into with the subsidiaries
5. Other Corporate
Information
Identification of subsidiary and
associated companies
362-369
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
NCG No.461 and No.519 index
409
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes
NCG Code
N°461
Requirement
Chapters
Sections
Page
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
360-361
6.5.2
Investment in other companies
-
-
-
6.5.2 i.
Individualization of them and legal
nature
5. Other Corporate
Information
Identification of subsidiary and
associated companies
362-369
6.5.2 ii.
Participation percentage
5. Other Corporate
Information
Enel Chile's direct and indirect
participation
359
6.5.2 iii.
Description of the main activities
they carry out
5. Other Corporate
Information
Identification of subsidiary and
associated companies
362-369
6.5.2 iv.
Percentage of the company's total
individual assets represented by
these investments
5. Other Corporate
Information
Enel Chile's direct and indirect
participation
359
7
Supplier management
7.1
Supplier Payment Policy
4. Enel Chile's business
and management 2024
Supplier Payment Policy
318
7.1 i.
Number of Invoices Paid
6. Main indicators
Payment to suppliers
391
7.1 ii.
Total Amount
6. Main indicators
Payment to suppliers
391
7.1 iii.
Total Amount of Interest for Late
Payment of Invoices
6. Main indicators
Payment to suppliers
391
7.1 iv.
Number of Suppliers
6. Main indicators
Payment to suppliers
391
7.1 v.
Number of Agreements Registered
in the Register of Agreements with
Exceptional Payment Terms
4. Enel Chile's business
and management 2024
Agreements with exceptional
payment terms
318
7.2
Supplier Evaluation
4. Enel Chile's business
and management 2024
Supplier management and
qualification
312-314
8
Indicators
8.1
Legal and regulatory compliance
-
-
-
8.1.1
In relation to customers
6. Main indicators
Enforceable sanctions
374-375
8.1.2
In relation to its workers
6. Main indicators
Enforceable sanctions
374-375
8.1.3
Environmental
6. Main indicators
Enforceable sanctions
374-375
8.1.4
Free competition
6. Main indicators
Enforceable sanctions
374-375
8.1.5
Other
6. Main indicators
Enforceable sanctions
374-375
9
Sustainability Indicators by Industry
Type - SASB
9.1
SASB Metrics
6. Main indicators
Sustainability indicators
385-391
9.2
Independent verification
3. Strategy and risk
management
Emissions
197-200
10
Relevant or essential events
5. Other Corporate
Information
Summary of essential or
relevant facts
326-328
11
Shareholder and Directors’
Committee Comments
2. Governance
Summary of Comments and
Proposals from Shareholders
and the Directors' Committee
62
12
Financial Reporting
7. Annexes
Publication of Financial
Statements
401
NCG No.461 and No.519 index
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
410
TCFD context index
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.
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 2024
• 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. Metrics related to climate change used.
b. Reporting scope 1, 2, and 3 emissions.
c. Targets related to climate change.
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
INTEGRATED ANNUAL REPORT ENEL CHILE 2024
TCFD Context Index
Risultati economici per Settore primario (Linea di Business) e secondario (Area Geografica)
MEMORIA ANUAL INTEGRADA 2024 | ENEL CHILE
411
1. Enel Chile
Group
2. Governance
3. Strategy and Risk
Management
4. Enel Chile's Business
and Management in
2024
5. Other
Corporate
Information
6. Main
Indicators
7. Annexes