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On behalf of Transelec's Board of Directors, I am pleased to present our Annual Report for the year 2021, which reflects the company's performance over the past year.

In the midst of a pandemic still raging throughout the world and a year after the vaccination process started in Chile, Transelec and its personnel continue to work, day-in and day-out, to ensure service quality in these difficult times. We have implemented strict sanitary protocols for asset construction and operations to ensure the health of all our personnel. The commitment of our personnel has been of vital importance to the essential service we provide to the country.

Transelec looks optimistically to the future of Chile. We will continue to operate and build a strong transmission grid that serves the country’s energy needs reliably and sustainably. Since 2011, Transelec has increased the value of its system by 50% to almost US$4.2 billion. We look forward to continuing to grow and invest to support Chile’s growth and create a virtuous cycle of improvement.

In December we announced the intention of Andres Kuhlmann, our CEO for more than 15 years, to retire from Transelec in 2022. We are very confident that we will identify a great leader for the future of the company, but we also know that we will miss Andres.

Finally, I want to thank everyone at Transelec for their dedication and effort. We achieved our proposed goals for 2021, and provided the country with a transmission service meeting outstanding reliability standards, an essential aspect for the well-being of Chile´s population today and into the future.

Scott Lawrence
Chairman of the Board of Directors

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The Company
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Transelec is Chile's leading electricity transmission company. The company supports a wide range of regulated and dedicated customers throughout the country in the electricity, mining and industrial sectors, who count on the support and excellence of Transelec's integrated transmission solutions.

Transelec is a major player in the transmission of electricity in the national power system from Arica to Chiloé. The company develops and operates an electrical infrastructure that allows it to supply 98 percent of Chile's population with electricity.


EXCELLENCE inspires us to be the leading power transmission company in the country on a daily basis.

Those working at the company have the ability, attitude and commitment to exceed performance expectations, adding value to each of our activities and stages in the production process.

We put excellence at the service of our shareholders, clients, regulatory authorities and the community, responding to market requirements, building trust, contributing to the development of our company and the country, identifying opportunities for improvement, and committing to implement it in our operations and to support the professional and personal development of employees.


RESPECT for people, communities and the environment are the foundation of all our relationships, on a personal and professional level.

We always act with respect and consideration for others.

We promote the ability to listen, and to understand and consider the perspectives of others, with respect to the diversity in our team. We execute appropriate work practices, in compliance with the company's policies.


COMMITMENT to the company's achievements makes that they are also ours. We are committed to the objectives and achievements of the company we are proud to belong to, taking responsibility for our decisions and their results.

We are also committed to meeting the company's financial, operational and social challenges, as well as safety requirements for our operations, taking care of people, facilities, services and the environment.

We consider all members of our organization, their families, the local community and society in general, in order to contribute to sustainable human development while increasing the value of our company and our contribution to society.


INTEGRITY is the foundation of our actions and decisions.

We act ethically and are honest and transparent in our relationships with co-workers, shareholders, authorities, clients, suppliers and the community.

We are consistent with our values, generating trust among the members of the organization and credibility with the rest of society. We will consistently respond to commitments made to ensure that our company's objectives are met.

Corporate Government
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Audit Committee

The auditors' reports, financial statements and the annual audit plan are reviewed. The implementation and certification of the Crime Prevention Model is supervised.

Investment Advisory Committee

The Company's various project opportunities are presented and the investment returns per project, bidding strategy, risk mitigation and other relevant factors are recommended to the Board of Directors.

Finance Committee

It is responsible for reviewing the Company's financial strategy. It analyzes issues such as financing, hedging, risk management, dividend distributions, tax issues and projections, among others.

Regulatory and Corporate Reputation Committee

It is in charge of reviewing the Regulatory and Corporate Reputation Strategy, as well as leading the tariff processes of the regulated Transmission Systems.

People and Organization Committee

It meets at least once a year to review the KPIs of the incentive scheme, as well as people development and training issues, among others.

Operations Committee

Its role is to discuss operational issues with members of the Board of Directors, which also includes oversight of the Company's health and safety programs.

Corporate Governance Committee

Its mandate is to propose and nominate the members of the Board of Directors, as well as to evaluate their management, approve manuals, and evaluate Transelec's corporate governance guidelines.

Other Committees

The Coordination Committees involve the different VPs of Transelec and are held periodically. They include the Executive, Business, Projects, Ethics, IT and Procurement Committees, among others.

The Business
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As of December 31, 2021, the Company has US$4,170 million in transmission assets in the country. Transelec is the main electricity transmission company in Chile, being part of the National, Zonal and Dedicated systems. Thus, Transelec has regulated (National and Zonal) and non-regulated (Dedicated) facilities.

At Transelec, we transport and deliver the electrical energy necessary for the operation of the energy market. Our slogan "uniting Chile with energy" summarizes our main objective, where we unite our clients, allowing them to inject or receive electrical energy from the system. These customers are generators and end customers (through electricity distributors, industrial and mining customers). We are the link between generation and the demand that our inhabitants need every day, the main provider of energy transmission services in the electric system, and we play an important role in the country's energy development. The electricity market has undergone important changes in recent years, and Transelec's commitment to Chile's energy future remains intact because we believe in energy as an engine of economic and social development with high impact for the country.

Market share as of December 31, 2021

Transelec is an important player in the country's transmission system, as a pioneer and leading company, with significant knowledge and expertise. Given the transmission market remuneration system, the Company receives revenues as a return on assets representing its installed transmission capacity, so market share is not a relevant factor. However, Transelec has the following participation in transmission lines according to the different voltage levels, where its important presence can be seen in operational high voltage lines, especially in 154kV and 220 kV:

Investment value (VI)

The current regulatory framework establishes mechanisms for calculating and publishing the valuation of investments at market prices of transmission companies, information that is used for service pricing.

The valuation of Transelec's transmission facilities, as of December 31, 2021, amounts to US$ 4,170 million.

The Operation
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Transelec's main objective is to deliver a superior quality service with high safety standards. Transelec is a public service company, strongly committed to its customers and to the optimal management of its assets. Therefore, the Company has its own personnel and highly qualified contractors, as well as technological resources and processes based on risk models.

In 2021, we formally began the implementation of an Asset Management System based on the international standard ISO 55001, a relevant milestone and a key initiative for the development and evolution of the way we manage assets at Transelec.

Transelec's National Transmission Operation Center (CNOT) plays a fundamental role in ensuring service continuity. The CNOT concentrates in a single site the monitoring and remote operation of our assets distributed throughout the country, in normal and post-contingency conditions, through a team of highly qualified operators. highly qualified operators.

Quality of service

One of the fundamental strategic pillars of Transelec's strategy is to provide a high quality service and each of the actions developed by Transelec are aimed in that direction. The maintenance of our assets, as well as their modernization and the timely response of our teams to attend incidents in the network are the main levers that allow us to improve our service to the end customer.

SAIDI TRANSELEC: It is an indicator that measures the time that a locality was without electricity supply and, through it, we measure Transelec's impact on the end customer in the 13 most critical points of the system, chosen for their historical performance or for the vulnerability of their topology.

HIE: High impact events consider all power supply interruptions for end customers greater than 30 MWh. This value was determined as the threshold indicating that 15% of outages generate 80% of impacts on end customers over the last 5 years.

Occupational Health and Safety Indicators 2021

The following indicators are part of the Electrical Safety Program based on the NFPA 70-E standard, which aims to maintain a high safety standard in the company, starting from a cultural transformation.

Environment and Communities
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Our business, energy transmission, plays a key role in society and has the potential to generate impacts on the environment as our power lines cross diverse territories and ecosystems. A culture of prevention is key to minimizing our social and environmental impacts.

The potential environmental impacts of our activity vary according to the stages of the business and many of these potential impacts can be minimized or avoided during the design stage.

Transelec sets its environmental and community objectives and goals through the Integrated Management System Committee. This committee is made up of the different areas of the company and is based on the ISO 9.001, ISO 45.001 and ISO 14.001 standards.

Transelec has a community relations and social investment area. This area is in charge of designing and implementing the community relations and social investment strategy on an annual basis. Our objective is to build relationships of trust with the communities surrounding existing infrastructure and new projects.

The negative impact of Covid-19 led us to deepen our plan to help neighboring communities, which can be summarized in the following numbers:

Our People
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Transelec has always considered its employees as the key to the Company's development. During the pandemic, this undoubtedly became even more evident. Considering the impact of the pandemic, the Company took all necessary and known measures to protect the health and integrity of our teams.

Regarding the professional development of our employees, the Company periodically implements training programs to enhance the knowledge, competencies and new skills necessary to maintain the existing high standards of professional quality and adapt to the changing demands of the environment and the organization.

During the year 2021 we have worked to continue promoting good labor relations, which in fact have been highlighted in previous years through various awards. The main focus of this work is the open-door policy with the company's two unions.

The future of work at Transelec

In 2021 we started the Future of Work Project at Transelec, which created an open listening channel for the entire organization, designed to assess the organization's needs and expectations regarding the possibility of flexibility and a new way of working after the pandemic. One of the outcomes of this process was the design of a flexibility matrix for each position. This information was used to start the transition process towards the adaptable organization model that become permanent starting in 2022.

In keeping with the way of working indicated in the Future of Work, we determined a series of actions for implementing and sustaining a permanent flexible model. These include workplace implementation assignments, permanent remote work assignments, lunch allowance renewal and ergonomic recommendation monitoring, all of which is accompanied by a robust communications plan to prepare this huge cultural change.

Our staff

Transelec’s staff came to 592 people as of December 31st, 2021. Over 96% of these workers are technically or professionally specialized, proving that the Company is highly knowledge intensive, in line with the service quality it requires. 71% of our Company’s personnel are employed in Operations, Engineering and Project Development.

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The regulatory changes made in Chile in 2004 protect both revenue and margins for power companies such as Transelec. This is mainly due to the industry's current tariff structure, which provides a good level of certainty and low risk by generating revenue and margins stemming from a 100% take or pay structure, without any transported volume risk.

Performance Indicators

Liquidity - Considering positive results in 2021, Transelec has a solid liquidity level, mainly due to:

i. The availability of its Revolving Credit Facility.
ii. Partial reinvestment of its own cash generation, which will enable the company to finance its future investment plans, as well as the reassessment following the tariff revision process.
iii. The availability of its debt service reserve.
iv. The firm commitment of its shareholders to invest or reinvest in the Company when necessary.

Income Evolution and EBITDA

Given that the company has practically all of its transmission revenues guaranteed and are of the "take or pay" type (where the installed transmission capacity is remunerated, regardless of how much electricity is consumed), Transelec has been able to maintain stable results over time, with 2021 being no exception. This, together with a low volatility in the transmission cost structure, has allowed the company to maintain a good Ebitda margin over time.