Internal documents from Enel's audits reveal that the transnational company provided, on more than one occasion and in the midst of emergencies, openly erroneous data about its affected clients to "save" money.
“There are companies, like Enel, that have sought to save money when there are people who are still without electricity in their homes.”
With those words, Chilean President Gabriel Boric intensified La Moneda's criticism against electricity distribution companies, the same ones that keep more than 100,000 homes without supply in Chile for a week.
The Head of State focused precisely on Enel. And although the energy giant claimed to have used “all” its resources, internal documents from the Superintendency of Electricity and Fuels (SEC) seem to agree with the President.
And, on at least two occasions, the supervisory body has charged the company for the same non-compliance: providing “manifestly erroneous information” regarding the number of people affected in the midst of emergencies. In the opinion of the SEC, this modus operandi allowed Enel to save money in full contingency.
All of this contrasts with the large profits reported by the company itself. Only in the first six months of this year, for example, they accumulated profits of 250 billion pesos (US$ 264 million). An increase of 120% compared to the first half of 2023.
Today, once again, the numbers provided by the transnational are in question.
THE ENEL PARADOX
In the midst of the chaos caused by the last mega-power outage, the SEC rushed this Monday to announce million-dollar fines against the energy distributor for an almost identical episode, although with a much smaller impact, that occurred in May of this year. anus.
This is a monetary penalty of almost $4 billion (US$4.2 million), for not restoring the service within the deadlines established by law and—as stated—for unjustifiably providing data that did not adjust to the reality of the situation. affected customers.
For the first reason, the agency issued a fine of 20 thousand UTM. That is, about $1,318 million (US$ 1.3 million). While for the second, the most serious according to the SEC, they established a punishment of 40 thousand UTM. About $2,636 million (US$ 2.7 million). All, despite Enel's allegations, from where they tried to invalidate the data that the SEC used to formulate the charges against them.
The problem? Paradoxically, they themselves were the ones who provided that information to the oversight body.
COPY-PASTE
In the action brought specifically over the delay in replacement, the SEC argued that at least 1,655 homes were without power for longer than the law allows.
Some customers had to endure more than 32 hours without power. The same story is repeated today: in the Metropolitan region alone, more than 50 thousand homes are in the same condition after a week without solutions.
But there was more. Regarding the second cause, classified as “serious in nature,” the SEC concluded that in the May episode the distributor did not accurately disclose the real number of homes without power.
And, without justified reason, Enel copied and pasted for each commune exactly the same number of supposedly affected users.
“In this form it can be seen that at 5:00 p.m., 6:00 p.m., and 7:00 p.m. on May 7, 2024, the number of affected clients in all communes is the same, which does not correspond to reality, "It can be concluded that the company has provided manifestly erroneous information," reads the resolution.
In relation to this point, in its defenses, the company did not deny that its data was incorrect and alleged that these should be understood "as provisional and subject to subsequent corrections and/or clarifications."
Thus, they added that "the information delivered online (...) must be considered merely illustrative and referential, without it being understood as definitive for other purposes, such as a formulation of charges."
THE REPEATED LETTER
As can be seen from the latest sanction against Enel, the firm had already argued that the data provided during the emergency should not be taken literally.
It happened in 2017, when they brought up three letters sent between 2015 and 2016 by the distributors' union association. In all of them, the companies tried to establish that online information should be understood as provisional.
However, at that time the SEC was also blunt, since the regulations were clear: anyone who provides false, incomplete or manifestly erroneous data will be sanctioned.
On that occasion, the inspector's fine reached 20 thousand UTM. This sanction was appealed by Enel. First before the SEC itself, managing to reduce it by half. Not happy with the discount, they then appealed to ordinary justice.
This is how the Court of Appeals of Santiago reduced the fine to 6 thousand UTM. However, the SEC fought back. He filed an appeal before the highest court in the country.
However, finally the Third Chamber of the Supreme Court confirmed, in August 2021, the sanction of 10 thousand UTM equivalent to about $522 million (US$ 552,323) on that date, destroying Enel's arguments that they should not be considered the reports from the Online Interruptions platform as reliable data.
QUOTE ON THE COIN: A MISCOUNT
“If customers do not call us, we do not have the possibility of knowing that they are without supply,” said Víctor Tavera, general manager of Enel Distribución, on Tuesday. The executive became the visible face of the company in the midst of one of its worst crises.
His statements on TVN opened a new flank due to the figures provided by the firm in this latest emergency. The same numbers that have been questioned by mayors of the affected communes, who affirm that the figures simply do not add up. The diagnosis is shared in La Moneda.
According to BBCL Investiga sources, company executives arrived on Friday, August 2, to one of the first meetings with the Executive, without a clear projection of how they would restore the service.
According to those consulted, in Senapred they had to enable a space for the representatives of the transnational company to draw up the accounts to establish a commitment with the Government that - to this day - remains unfulfilled. “They were given half an hour, an hour, to come to an agreement,” says one of those present.
And even worse, this Tuesday Enel representatives arrived at a new meeting, this time in La Moneda, with incorrect figures. “They had to include 20,000 users without electricity who had been left out of the sum due to 'human error,'” says one of those familiar with the case. This, after a high government authority was forced to warn them that their numbers , again, they didn't fit.
ECONOMIC BENEFITS
As in 2017, Enel's new allegations for what happened in May of this year were dismissed out of hand by the SEC.
In fact, the state department told him that his claims lacked “any basis”, since “it is imperative that electrical companies provide timely, complete and truthful information.”
The above, since "the purpose of its compilation is to inform the corresponding authorities about the status of the distribution systems (...) so that the measures deemed necessary can be adopted."
“It is of vital importance for the quality of service that users receive that they are given precise information about the situations they are faced with and about the deadlines, actions and measures that are being implemented, all in full accordance with the obligation of the concessionaire companies to provide a continuous, safe and quality service,” states the SEC resolution.
And although the institution did not detect any fraudulent actions by Enel, the distribution was emphatic in the resolution communicated this Monday: the company obtained “economic benefits” due to the erroneous reports of the affected users.
“The company has obtained an economic benefit in the situation analyzed, due to the savings caused by efforts or investments that Enel Distribución Chile SA stopped making and whose deficiencies led to the incorrect treatment of the corresponding information,” the resolution details.
Simply put, according to BBCL Investiga sources, the company has not spent the money it is obliged to disburse to comply with the law.
For example, to know in real time how many users are without power during an emergency; to execute preventive actions; or to deploy the necessary number of crews dedicated to restoring the service.
The Executive is aware that the State “does not have enough muscle” to collect, on the ground, reliable information about the cuts.
Hence the importance of distributors reporting accurate data from the first minute and not depending on telephone calls from customers, who are ultimately left defenseless in the midst of the crisis.
There are numerous messages sent to Radio Bío Bío or shared on social networks that report automated responses by Enel with erroneous information. Criticism points to the dehumanization of the client-company relationship.
MILLIONAIRE PROFITS
Thus, after the episodes in 2017 and May 2024, Enel again this week came under scrutiny by the SEC for lack of transparency.
This Monday and Tuesday, the supervisory body filed four new charges against him. The reasons? Not pruning trees adjacent to their electrical networks, poor customer service, delay in restoring service and… not providing requested information about the recovery plan.
Sanctions and emergencies aside, Enel's finances contrast with its gloomy communication present.
This is evident in the data corresponding to the first half of 2024, a period where its profits rose above $250 billion (US$264 million). As reported by the DF, the figures represent a 120% increase in profits compared to the first half of 2023.
This, the energy giant explained, was fundamentally the result of “a more efficient generation mix and higher energy sales, partially offset by a lower level of gas sales during the current year.”
Particularly in the Distribution and Networks segment, the aforementioned media points out, its operating income grew almost 30% this first semester compared to the same period last year.
The above, the firm detailed, as a consequence “essentially of higher energy sales associated with higher physical sales and a higher average sales price expressed in pesos, explained in large part by indexation of contracts and application of the latest tariff decree.”
Consulted by BBCL Investiga , Enel was not available for this article. “We cannot refer to the issue,” they expressed from the company.
Of course, in their last public statement they stressed that "all the company's resources have been at the service of the contingency, completely focused on restoring supply to each of those affected as soon as possible."
