In Latin America Energy Summit:

Aela Energía analyzed the market of free customers

The company's commercial manager appreciated the opportunities and challenges of this trend, which is making the market more competitive.

18 octubre 2018

The migration of customers from the regulated electricity market to the free segment does not stop growing. In this context, the Commercial Manager of Aela Energía, Daniel Garrido, was invited to participate in the Latin America Energy Summit 2018, an event that took place in Santiago, to address the challenges and opportunities posed by the tendency of large consumers to seek supply directly from renewable source energy suppliers.

“The migration of regulated clients has made a great impact, not only in Chile’s large generators, but also in renewable generators like us,” said the executive, who highlighted that this transfer of customers is making the market more competitive.

“This will give more liquidity to the electricity market, where very long-term contracts predominate. Short-term PPAs should be easier to trade in this market, as is the case in Brazil. With the migration of small clients, Chile is being opened the opportunity to have a very liquid and deep market, with short and medium term contracts,” he explained.
In addition to discussing the advantages posed by this scenario, Daniel Garrido addressed the challenges.

“Having all free customers could be feasible in a very long term, because this requires a radical reform of the current market structure, which has an impact not only on customers, but on all investments. This must be studied carefully and planned properly and gradually, “said the expert of Aela Energía.

With regard to financing risks, the executive said that “it will all depend on how contract risks are mitigated.”