In its latest report, the consulting firm linked to Hugh Rudnick points out that there are risks in the State being in charge of these processes.
Systep: bids for distribution companies should be in the hands of the CDECs and not in the hands of the CNE
Having a government organization determining the guidelines of the bidding procedure entails certain risks, such as exposure to the political cycle and the dual role of regulator and market operator.” This is the categorical comment of the consulting firm Systep, linked to the electrical expert Hugh Rudnick, in its latest monthly report.
This is in view of the criticism – led by Colbún – that ENAP’s entry into the electricity generation business requires a clear separation of roles to prevent the state from being both judge and party in these bids.
According to Systep, a potential candidate to fulfill this role would be the new Independent Coordinator of the National Electric System (CISEN), formulated in the Transmission bill presented in August.
This body replaces the two CDECs of the major electricity systems, the SIC and the SING, also considering that from 2018 both systems will operate together.
“CISEN, or specifically a directorate belonging to it, could exercise the role of bidding entity, complementing its role as market operator. In this way, CISEN would be incorporated into the bid design process, considering that the projection of demand and market conditions are parameters that could be accurately evaluated by this body, by continuously analyzing the market,” adds the consultant’s September report.
“Finally, the political cost that a bidding process may entail does not justify assigning to a government institution the conduct of a bidding process, which seeks to confer certainty to all its participants,” it concludes.
