The National Economic Prosecutor’s Office noted that Chinese companies, grouped in the State Property Assets Administration and Supervision Commission (Sasac) of that country, participate in all phases of the electricity business in Chile.For this reason, the regulatory body announced that it will open an investigation to determine possible violations against economic competition. It all began when the sale of the Spanish power company CGE to the Chinese state-owned giant State Grid was announced, which will increase control of 51% of the electricity distribution in Chile actively, taking into account that it already had control of Chilquinta.Chinese companies are now involved in electricity generation, through Pacific Hydro and two other hydroelectric plants; transmission of electricity, as you own 27 per cent of Transelec; and now from the distribution of electricity, through CGE, the economic prosecutor, Ricardo Riasco, presented to the Lower House Economics Commission that possible monopoly actions, including the possible exclusion of new competitors, will be investigated. Fiasco noted that “not only will we review State Grid’s direct shares as an activity in any of our country’s three electricity sectors, but also any other Chinese-owned company that is controlled by Sasac.” This, to analyze “whether the operation substantially reduces or has the ability to substantially reduce competition in the markets; specifically whether it has the ability to increase prices to consumers, whether it has the potential to exclude competitors or to increase the risk of unlawful coordination between competitors.”
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