Chile's National Consumer Service filed a class action lawsuit against the Chinese company after negotiations failed over insufficient compensation for more than 881,000 customers affected by power outages in August.
The difference in the response of Chile's electricity distributors to the collapse experienced last August with prolonged power outages became evident.
Italy's Enel has pledged $17.059 billion (US$ 17.9 million) in compensation for its 801,141 affected customers. Meanwhile, CGE, controlled by Chinese giant State Grid, offered just $8 billion (US$ 8.4 million) for 881,965 households, 53.1% less in total terms and with individual compensation of no more than $9,072 (US$ 9.55) per person, less than half that of its competitor.
The imbalance is even greater if the net amounts committed in the agreement with Sernac are considered.
That is, discounting payments made in accordance with the Electricity Law, as well as compensation for food, medicines and electrical appliances.
At this point, CGE's figure is drastically reduced to $3,025,717,745 (US$3.1 million), while Enel maintains $17,059,475,015 (US$17.9 million).
Under this metric, CGE's compensation was 82.3% lower than Enel's.
Although CGE had 10.1% more affected customers, the parameters that determined the agreement did not consider the duration of the outages, which in both cases reached up to 15 days.
CGE's offer also did not take into account damage to food, medicines and household appliances in the same proportion.
The difference with Enel is evident and was key in Sernac's decision to abandon the negotiation and take the case to court.
SERNAC JUDICIALIZES THE CONFLICT: THE INSUFFICIENT RESPONSE OF CGE
The class action lawsuit filed by Sernac in the 9th Civil Court of Santiago seeks not only greater compensation for affected customers in Valparaíso, Metropolitana, O'Higgins, Maule, Ñuble, Bío Bío and La Araucanía, but also the application of sanctions against CGE.
Between August 1 and 16, 2024, more than 881,000 households suffered prolonged power outages, interruptions and voltage fluctuations, affecting their daily lives. Added to this was the lack of clear and timely information from CGE, which left thousands of families without answers in the midst of the crisis.
The judicialisation of the conflict occurs in a context where Enel's compensation could still increase.
The Superintendency of Electricity and Fuels (SEC) has not yet ordered the Italian firm to pay the sector, which means that the gap with CGE could be even greater once the sanctioning process is completed.
The Chinese company's strategy, which opted for a low offer and fruitless dialogue with Sernac, ended up blowing up the negotiation.
Now, the company will have to face not only a class-action lawsuit, but also a potential damage to its image and a process that could lead to more severe sanctions.
