Andrés Kuhlmann

CLEAN ENERGY FOR THE FUTURE OF MANKIND

"The future of mankind will be much more intensive in the use of clean, accessible and competitive electrical energy. Transelec is part of that future."

01 -------------- TRANSELEC AT A GLANCE

We are the leading power transmission company in Chile. We transmit the electrical energy that lights the homes of 98% of the population living between Arica and Chiloé.

Our business is the transmission of electrical energy from power generation sources to cities, towns and industrial zones. Energy is then received by substations, where it is converted to low voltage for distribution to end users.

We own and operate most of the power transmission facilities making up the National Power Grid

VALUES

2017 FIGURES

9,648km

of power transmission lines are owned by Transelec, which is equivalent to the distance between Santiago and Quebec, (Canada).

61

Substations between Arica and Chiloé.

58%

market share in the National Power Grid.

THE ELECTRICITY ROUTE

Power generation

Chile uses water, natural gas, oil, wind, the sun and biomass as energy sources for power generation, among others. This is the first rung of the electricity market.

The Power Transmission System

The power transmission system enables energy to be transmitted by means of transmission lines, towers and substations that connect electricity producers and end consumers throughout the country. The National Electricity Coordinator (NEC) was created 1 January 2017 and its purpose is to coordinate different companies participating in the market and to ensure power supply for end consumers.

Distribution

The power distribution network was mainly designed to transport and supply power from distribution substations to end users. These companies operate as public service distribution concessions and are required to provide services with regulated tariffs.

¿CÓMO FUNCIONA EN CHILE EL SISTEMA ELÉCTRICO?

02 -------------- CHALLENGES AND FOCUS

Sustainability is an integral part of our business and one of the five strategic pillars in our Value Creation Strategy.

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Transelec's commitment to sustainable development and operational excellence for the power transmission system is part of the daily work of its collaborators. 

This commitment is made in the Company's Sustainability Policy and is summarized in six fundamental principles.

SUSTAINABILITY POLITICS


Security and Life

Environment

Communities

Integrity

Colaboration

Service

INNOVATION MANAGEMENT

Innovation was declared to be the transforming engine for generating new value at Transelec. This conviction is evidenced by existence of the INNOVA Program and the Innovation Model.

35

35 projects in the portfolio at different stages of development.

100

Active participation of over 100 collaborators.

10

10 active sessions and 16 workshops hosted.

03 -------------- SUSTAINABILITY FOCAL POINTS

The most important issues.

In order to determine the most important issues to be reported, Transelec conducted a formal Materiality Analysis process involving the Company’s General Manager and all Vice-presidencies.

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CORPORATE GOVERNANCE AND ETHICS

We have implemented organizational mechanisms at Board of Directors and executive levels to discuss issues related to integrity and corporate governance and to monitor progress in this regard.

The Corporate Governance Committee has been operating in the Board of Director since 2016 in order to direct our management in this regard.

We have a Code of Ethics and a Code of Conduct, Crime Prevention Model, Compliance Program, Compliance Officer and an Ethics Hotline based on a web platform to handle questions and claims.

The monthly Flash Report is used to report our economic, operational and sustainability performance to the Board of Directors.

66%

of our collaborators received anti-corruption policy and procedure training in 2017.

Training

Talks, training sessions and online "ethics dilemma games" are part of the tools we use to train our collaborators.



CODE OF ETHICS AND ETHICS HOTLINE


CRIME PREVENTION MODEL


COMPLIANCE PROGRAM AND COMPLIANCE OFFICER


TRAINING PROGRAM
TRAINING PROGRAM

Reliable power transmission for our customers and society

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What happens when there’s no electrical energy? In addition to domestic problems, this generates safety and communication risks, among many others. Power transmission system reliability is essential and will be even more important for tomorrow’s society that will go all in for this type of energy.

The Connecting Conversations Cycle

Resilience to natural disasters

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500 people participated in the resilience to natural disasters section of the Connecting Conversations Cycles

EDITORIAL
Article

Rodrigo López, Vice-president of Operations.

Digital transformation for power transmission.

The power industry is going through breakneck changes at a global level and our country is no exception to the rule. These changes must be understood as the result of different technologies coming together in the business models of so-called utility companies.

A safe and uninterrupted power supply for society and our customers is threatened by more frequent climatic emergencies, challenging us to create and innovate in terms of our service offer.

8

electricity risks while fighting forest fires training workshops

35

electricity risks while fighting forest fires training workshops

OUR PEOPLE

Commitment to the well-being and commitment of our people

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Tomorrow’s society is counting on electrical energy. Are we prepared to address this challenge? Are we developing human capacity to operate increasingly more automated systems? Do we have the skills to adapt to the ongoing technological and cultural changes in store?

For the sixteenth year in a row, there were no accidents with fatal consequences in 2017.

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358 providers of goods and services have worked with us over the last three years.

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100% of our contractors have completed occupational health and training programs.

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25 years with no strikes.

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529 collaborators.

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5,000 contractors.

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EDITORIAL
Article

Claudio Aravena, Vice-president of Human Resources

Human capital challenges for the future.

The way people relate to work has changed radically. Although our parents considered staying in one place to be a privilege, this is unheard of for current generations. Professionals are presently looking for much more than a good salary or stability, which means that companies must generate new talent attraction and retention strategies.

THE ENVIRONMENT AND SURROUNDING AREA

Respect for the environment and social surroundings

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Our high-voltage transmission lines span throughout Chile, from the northern desert to forests of the south and also pass through inhabited zones. Connecting with the environment and designing routes with these spaces in mind is highly important. We at Transelec believe that power transmission projects can be developed with minimal socio-enviromental impacts.

We design our power transmission projects focusing on minimizing socio-environmental impact, evaluating possible impacts while building, operating and closing our facilities.

#ITakeCare
#IRecycle
#IMove



are the three behaviors highlighted by the ConSuma Conciencia Program in 2017.
EDITORIAL
Article

David Noe - Vice-president of Corporate Affairs and Sustainability.

Sustainability crossroads

A country cannot develop without reconciling economic growth with the welfare of its inhabitants and care of its surrounding area.

AvesChile

is the alliance that enables us to prevent incidents involving birds and transmission lines.

64%

We have connencted 64% of the megawatts (MW) produced by renewable energy over the last 5 years.

NEIGHBORING COMMUNITIES

Our presence in and contribution to the development of local communities

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Tomorrow’s society requires a real commitment by all of its participants in order to reconcile economic growth with the well-being of its inhabitants. Aware of this pressing need, Transelec’s influence in the territory means a real opportunity for the development and well-being of communities where we operate.

Our relations model and strategy for citizen participation and obtaining social licences for projects are essential for harmonious development with our neighboring communities.

The Play More and Growing Together programs seek to create positive associations and contribute to community development.

A social contribution with innovation

The Coronel Sustainable Neighborhood

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The Coronel Sustainable Neighborhood

is a social contribution icon with innovation.


25 hectares

were donated by Transelec in order to create low-cost housing with superior quality and energy efficiency standards.

We operate throughout almost all of Chile and we actively relate with communities neighboring our facilities, seeking to make a real contribution to their development and welfare.

2,706

residents from 20 neighboring communities were benefited by social investment projects

5,000

students have been benefited by our Energy Education programs