...High Electricity Costs: Chilean corporates will continue to suffer due to electricity costs that are among the highest in the region, despite falling hydrocarbon prices in 2015. Prices are pressured by rising demand, decreased investments in the sector, and low hydrology levels. Additional obstacles faced by electric corporates include social opposition to power plants and the lack of approvals or significant delays during the permitting process. Uncertainty from Government Measures: Market uncertainty has increased in the last 12 months due to government actions. Large investment decisions have been negatively affected by several factors, including recent reforms that increased corporate taxes, new taxes on carbon emissions, changes to the public bidding processes for energy supply contracts with regulated clients and additional regulations expected on natural gas distribution. Weak Investment Environment: Dramatically lower prices in the medium term are highly unlikely. The government's...
