Rodrigo Mora

Rodrigo Mora asked about the specific measures Enel Chile is implementing to tackle the rising energy losses within its distribution business.

Answer

CFO Simone Conticelli acknowledged that energy losses are currently above 6% due to tariff increases and changes in customer habits. He outlined measures including increased recovery activities, flexible payment plans for customers, deployment of smart expansion tools to localize losses, and collaboration with regulators to find supportive regulatory changes.

Rodrigo Mora asked about the amount Enel Chile must return to customers due to a CNE miscalculation in the H1 2026 report, the outstanding debt owed to Enel Distribution Chile from the VAD 2020-2025 freeze, the company's LNG and Argentinian gas strategy for 2026, an update on 2025 generation CAPEX, and measures to address increasing energy losses in distribution.

Answer

CFO Simone Conticelli explained that the CNE miscalculation impact is estimated between $40 million and $45 million, mainly affecting financial costs, to be accrued in 2025 and paid back in H1 2026. For the VAD 2020-2024 freeze, the outstanding amount is around $50 million-$55 million, with settlement expected by mid-2026 or potentially earlier. Regarding gas strategy, Enel Chile will continue using its long-term LNG contract (30-32 TWh/year) in 2026 and is currently negotiating a new Argentinian gas contract. For generation CAPEX, a delay in BESS projects shifted their COD to 2027, but Q4 will see $150 million-$160 million in HGP and generation investments, including at least $50 million for BESS, alongside continued thermal fleet investment. To address energy losses, which are currently above 6%, the company is increasing recovery activities, offering flexible payment plans, using smart expansion tools, and collaborating with regulators for policy changes.

Rodrigo Mora of Moneda Asset Management asked for more details on the announced BESS program, an update on wind farm projects, a breakdown of the incentivized retirement plan costs, and an explanation for lower generation from certain renewable assets.

Answer

CEO Gianluca Palumbo detailed the BESS investment as approximately $400 million for 453 MW (4-hour duration) with a 2027 COD, and noted wind projects have a later COD. CFO Simone Conticelli explained the retirement plan costs were split between generation and distribution. He added that lower solar output was due to anticipated maintenance (covered by insurance) and lower geothermal output was due to natural well evolution, with an intervention planned by year-end.

Rodrigo Mora of Moneda Asset Management requested more details on the announced BESS program, including battery duration and schedule, and asked for an update on the new wind farm projects from the strategic plan. He also asked about the retirement plan and underperforming renewable assets.

Answer

CEO Gianluca Palumbo detailed a ~$400M investment in 453 MW of 4-hour BESS projects with a 2027 COD, noting wind projects have a later timeline. CFO Simone Conticelli added that the retirement plan impacts all segments and that lower renewable output was due to insured maintenance (solar) and a natural well evolution (geothermal) with a fix planned.

Rodrigo Mora of Moneda Asset Management questioned the terms of Argentinian gas contracts, the EBITDA outlook for the distribution business, and the status of a potential sale of solar assets.

Answer

CEO Giuseppe Turchiarelli confirmed that 2025 gas contracts include take-or-pay clauses that have been easily met. CFO Simone Conticelli reaffirmed the cumulative 2025-2027 EBITDA guidance for Enel Distribution remains between $0.4 billion and $0.5 billion. Regarding asset sales, Turchiarelli noted that while the company constantly evaluates opportunities to rotate assets, there was no specific news to announce at the time.