Who we are

01

Transelec

Transelec is the leading provider of high voltage systems in Chile, with nearly
10,000 kilometers of transmission lines and nearly sixty 500 kV and 220 kV
substations between the Arica and Parinacota Region and the Los Lagos Region.

We are the leading power transmission company in Chile. We transmit the power
that lights the homes of 98% of Chile’s population between Arica and Chiloé, with
a 58% share in the National Power Grid.

Transelec is owned by a consortium comprised by the Canadian funds Canada
Pension Plan Investment Board (CPP), British Columbia Investment Management
Corp, (bcIMC) and Public Sector Pension Investment Board (PSP), and by the
company China Southern Power Grid International (CSGI).

02

Our People

Transelec is a specialized company with over 500 collaborators who are make essential contributions in order to attain the high quality standards required by the industry and meet an increasing variety of challenges. Each collaborator receives an average 5.5 hours of training per month (figures as of 31 December 2018).
We promote a high-performance culture and a good working environment. For the fifth year in a row, we were assessed by the OHI (Organization Health Index) and scored 80 points, placing us in the upper decile for this evaluation at a global level for the second year in a row.

In addition to our own collaborators, we provide employment for over 3,000 contracting company workers, who are included in our safety and training programs featuring a preventive focus.

Employment Indicators

  • 538

    NUMBER OF COLLABORATORS

  • 74%

    PERCENTAGE OF UNIONIZATION

  • 18%

    PERCENTAGE OF UNIONIZATION

  • 529

    NUMBER OF COLLABORATORS

  • 69%

    PERCENTAGE OF UNIONIZATION

  • 19%

    PERCENTAGE OF UNIONIZATION

  • 509

    NUMBER OF COLLABORATORS

  • 65%

    PERCENTAGE OF UNIONIZATION

  • 17%

    PERCENTAGE OF WOMEN

With a track record spanning over 60 years in the industry, Transelec makes all of its know-how and experience in design, construction, operation and maintenance of power transmission facilities available for the country’s development.

Go from left to right to view each milestone by year.

  1. The company was founded in 1943, when CORFO created the National Electricity Company (ENDESA).

  2. 50 years later, in 1993, the company's Power Transmission Division became the subsidiary Compañía Nacional de Transmisión Eléctrica S.A., which subsequently became Transelec S.A.

  3. All Transelec shares were purchased by the Canadian company Hydro-Québec in 2000, making the SIC power grid fully independent.

  4. In 2003, Transelec was incorporated into the Far North Interconnected System, SING, with the purchase of 924 kilometers of 220 kV transmission lines.

  5. The entire company was purchased by a consortium comprised of Canadian investment and pension funds.

  6. In 2009 Transelec implemented better technology, such as the Statcom system that increases maximum transmission capacity, and pioneered the contribution of power from a non-conventional renewable energy (NCRE) source into the SIC power grid.

  7. Transelec finished construction of the Caserones power transmission system for Minera Lumina Copper Chile in 2012, a highly complex mining project located at over 4,000 meters above sea level.

  8. In October 2014 Transelec opened its National Transmission Operation Center (CNOT) in Cerro Navia, which connected control centers and enabled a single, direct relationship with the CDECs.

  9. Transelec incorporated the company Conselsur in Peru by purchasing power transmission assets owned by Edegel and Chinango.

  10. China Southern Power Grid International finalized the purchase of a 27.79% stake in Transelec in March 2018. Ever since, the company’s ownership has been shared by the
    aforementioned Chinese company and the Canadian funds Canadian Pension Plan
    Investment Board (CPP), British Columbia Investment Management Corp. (bcIMC) and
    Public Sector Pension Investment Board (PSP).

  11. The 2x220 kV Lo Aguirre – Cerro Navia transmission line was commissioned, the first linein the National Power Grid to have an underground section.

04

The System

Chile has a National Power Grid that connects the country between Arica and Chiloé, as well as the Aysén and Magallanes power grids. Transelec has a 58% stake in the National Power Grid.

Power is transported using high voltage transmission lines, which connect power generation sources to cities and industrial and mining users. Power is received by substations there and then converted to low voltage for distribution to end users.

Transelec is responsible for providing an uninterrupted power supply to the people of Chile and thus contributes to improving their quality of life and the country’s development.

05

Business Model

06

Corporate Government

  • 1. Brenda Eaton

    Chair of the Board

  • 2. Richard Cacchione

    Director

  • 3. Rui Han

    Director

  • 4. Alejandro Jadresic Marinovic

    Director

  • Board of Directors as of

    April, 2019

  • 5. Alfredo Ergas Segal

    Director

  • 6. Blas Tomic Errázuriz

    Director

  • 7. Mario Valcarce Durán

    Director

  • 8. Patricia Nuñez Figueroa

    Director

  • 9. Juan Benabarre Benaiges

    Director

  • 1. Claudio Aravena Vallejo

    People and Organization vice-president

  • 2. David Noe Scheinwald

    Corporate affairs and sustainability vice-president

  • 3. Andrés Kuhlmann Jahn

    Chief Executive Officer

  • 4. Arturo Le Blanc Cerda

    Regulatory and Legal Affairs Vice-president

  • 5. Alexandros Semertzakis Pandolfi

    Engineering and project development vice-president

  • 6. Sebastián Fernández Cox

    Business development vice-president

  • 7. Francisco Castro Crichton

    Chief financial officer

  • 8. Rodrigo López Vergara

    Chief operating officer

In March 2018, Brookfield Asset Management (BAM) sells its stake in Transelec to the chinese company Southern Power Grid International (CSG). The Transelec property is now composed of Canadian Pension Plan Investment Board (CPP), British Columbia Investment Management Corp. (bcIMC), Public Sector Pension Investment Board (PSP) and China Southern Power Grid International (CSG), who place their great financial strength and operational experience at the service of the country’s growth needs.

 

The profit sharing policy states that during a specific fiscal year, the Board of Directors aims to distribute 100% of the net profits reported as dividends, considering the company’s financial situation, commitments made by Transelec when the company issued bonds on the national and international markets, and considering the impacts of implementing IFRS.

No dividend may be declared if it would prevent the company from meeting its financial commitments.

With respect to a specific fiscal year, the Board of Directors may consider it appropriate to declare temporary dividends that could be distributed depending on conditions at the time. Overall temporary dividends shall not exceed 75% of the company’s profit that can be distributed for the current fiscal year according to the latest forecast available.

Our shareholders have created several committees in order to be kept informed regarding important issues and thus support the company at all levels.

Audit Committee

Creation of an Audit Committee was approved in April 2007. This committee is different from the committee indicated in the Corporations Law, whose duties include, among others, reviewing the company’s audit reports, balance sheets and other financial statements, and internal systems. The Transelec Audit Committee is comprised of four directors, who are appointed by the Board of Directors and serve for a terms two years, after which they may be re-elected. The Committee will elect a chairman from among its members and a secretary, who may be one of its members or the secretary of the Board of Directors.

Investor Advisory Committee

The Investor Advisory Committee is comprised of directors and senior executives. Its mission is to improve information submitted to the Board of Directors regarding the company’s different projects oportunities and thus facilitate decision making by the Board of Directors.

Corporate Reputation and Regulatory Committee

The Corporate Reputation and Regulatory Committee is comprised of company directors and executives. It meets twice per semester to review the Corporate Reputation and Regulatory Strategy, which will be executed in keeping with the main legal and regulatory amendments made in the power and environmental sectors, and to lead tariff setting processes for the national and zone power transmission systems.

Finance Commitee

The Finance Committee is made up of company directors and executives. It meets periodically to review the company’s financial strategy and to provide consultancy and approve different proposals that are important for the financial activities being executed by Transelec.

Human Resources Committee

The Human Resources Committee is comprised of company directors and executives. It meets at least once per year to review issues related to the people who make up the Transelec team. The issues reviewed include the revision of financial KPIs, which are the basis of the current variable bonus pyramidal structure at the company, as well as other issues related to the development of people, training, etc.

Operations Committee

The purpose of this Committee is to offer the Transelec Administration the opportunity to discuss issues of operations in detail with members of the Board. It is responsible for the supervision of health and safety programs stablished from Transelec’s recommendations on KPIs for health, safety and operation.

Corporate Governance Committee

The Corporate Governance Committee is comprised of Company directors and executives who meet twice per year to propose and nominate members of the Board of Directors and to evaluate their management. In addition, their mandate includes examination and evaluation of Transelec corporate governance guidelines and making recommendations regarding these to the Board of Directors.

Other Committees

Coordination Committees: these involve the different Transelec vice-presidencies and are held regularly in order to coordinate the most important issues for the company:

  • Executive Committee
  • Business Committee
  • Projects Committee
  • Operational Excellence and Results Committee
  • Regulatory Agenda
  • Innovation Committee

Integral management system committee: This committee has as it mission discuss about safety and ocupational security, envirinmental matters, and quality issues.

  • 1. Brenda Eaton

    Chair of the Board

  • 2. Richard Cacchione

    Director

  • 3. Rui Han

    Director

  • 4. Alejandro Jadresic Marinovic

    Director

  • Board of Directors as of

    April, 2019

  • 5. Alfredo Ergas Segal

    Director

  • 6. Blas Tomic Errázuriz

    Director

  • 7. Mario Valcarce Durán

    Director

  • 8. Patricia Nuñez Figueroa

    Director

  • 9. Juan Benabarre Benaiges

    Director

  • 1. Claudio Aravena Vallejo

    People and Organization vice-president

  • 2. David Noe Scheinwald

    Corporate affairs and sustainability vice-president

  • 3. Andrés Kuhlmann Jahn

    Chief Executive Officer

  • 4. Arturo Le Blanc Cerda

    Regulatory and Legal Affairs Vice-president

  • 5. Alexandros Semertzakis Pandolfi

    Engineering and project development vice-president

  • 6. Sebastián Fernández Cox

    Business development vice-president

  • 7. Francisco Castro Crichton

    Chief financial officer

  • 8. Rodrigo López Vergara

    Chief operating officer

In March 2018, Brookfield Asset Management (BAM) sells its stake in Transelec to the chinese company Southern Power Grid International (CSG). The Transelec property is now composed of Canadian Pension Plan Investment Board (CPP), British Columbia Investment Management Corp. (bcIMC), Public Sector Pension Investment Board (PSP) and China Southern Power Grid International (CSG), who place their great financial strength and operational experience at the service of the country’s growth needs.

 

The profit sharing policy states that during a specific fiscal year, the Board of Directors aims to distribute 100% of the net profits reported as dividends, considering the company’s financial situation, commitments made by Transelec when the company issued bonds on the national and international markets, and considering the impacts of implementing IFRS.

No dividend may be declared if it would prevent the company from meeting its financial commitments.

With respect to a specific fiscal year, the Board of Directors may consider it appropriate to declare temporary dividends that could be distributed depending on conditions at the time. Overall temporary dividends shall not exceed 75% of the company’s profit that can be distributed for the current fiscal year according to the latest forecast available.

Our shareholders have created several committees in order to be kept informed regarding important issues and thus support the company at all levels.

Audit Committee

Creation of an Audit Committee was approved in April 2007. This committee is different from the committee indicated in the Corporations Law, whose duties include, among others, reviewing the company’s audit reports, balance sheets and other financial statements, and internal systems. The Transelec Audit Committee is comprised of four directors, who are appointed by the Board of Directors and serve for a terms two years, after which they may be re-elected. The Committee will elect a chairman from among its members and a secretary, who may be one of its members or the secretary of the Board of Directors.

Investor Advisory Committee

The Investor Advisory Committee is comprised of directors and senior executives. Its mission is to improve information submitted to the Board of Directors regarding the company’s different projects oportunities and thus facilitate decision making by the Board of Directors.

Corporate Reputation and Regulatory Committee

The Corporate Reputation and Regulatory Committee is comprised of company directors and executives. It meets twice per semester to review the Corporate Reputation and Regulatory Strategy, which will be executed in keeping with the main legal and regulatory amendments made in the power and environmental sectors, and to lead tariff setting processes for the national and zone power transmission systems.

Finance Commitee

The Finance Committee is made up of company directors and executives. It meets periodically to review the company’s financial strategy and to provide consultancy and approve different proposals that are important for the financial activities being executed by Transelec.

Human Resources Committee

The Human Resources Committee is comprised of company directors and executives. It meets at least once per year to review issues related to the people who make up the Transelec team. The issues reviewed include the revision of financial KPIs, which are the basis of the current variable bonus pyramidal structure at the company, as well as other issues related to the development of people, training, etc.

Operations Committee

The purpose of this Committee is to offer the Transelec Administration the opportunity to discuss issues of operations in detail with members of the Board. It is responsible for the supervision of health and safety programs stablished from Transelec’s recommendations on KPIs for health, safety and operation.

Corporate Governance Committee

The Corporate Governance Committee is comprised of Company directors and executives who meet twice per year to propose and nominate members of the Board of Directors and to evaluate their management. In addition, their mandate includes examination and evaluation of Transelec corporate governance guidelines and making recommendations regarding these to the Board of Directors.

Other Committees

Coordination Committees: these involve the different Transelec vice-presidencies and are held regularly in order to coordinate the most important issues for the company:

  • Executive Committee
  • Business Committee
  • Projects Committee
  • Operational Excellence and Results Committee
  • Regulatory Agenda
  • Innovation Committee

Integral management system committee: This committee has as it mission discuss about safety and ocupational security, envirinmental matters, and quality issues.

07

Innovation

Innovation has been declared to be the transforming engine that generates new value for Transelec.

By means of an internal program and thanks to a specific area provided for setting objectives and formulating methodologies and systems, the company is making headway in the development of organizational capacities and pro-innovation culture.

This was all achieved thanks to a strategic planning process started in 2015 in order to incorporate innovation into the business strategy and install a management model based on a balanced projects portfolio.

We are incorporating intelligence and technology in order to improve our processes, as well as asset management and maintenance, placing innovation at the service of the company’s growth, productivity and service quality.