SANTIAGO -(Dow Jones)- Chilean energy prices for residents on the central SIC power grid will retroactively increase an average 1.2% from May, the government's National Energy Commission said Wednesday. Rising energy prices, fueled by strong crude oil prices, weigh heavily on the consumer price index. Chile imports nearly all the fossil fuels it consumes. The SIC grid provides power to more than 90% of Chilean homes, and covers an area from the northern city of Taltal to the southern island of Chiloe. For an average home consuming 150 kilowatt hours per month, electricity bills will increase to 18,189 Chilean pesos ($36.34), from CLP17,967. The 1.2% average price increase will be applied from May 1, the commission, locally known as CNE, said. Chile's Energy Ministry adjusts wholesale electricity rates every six months, resulting in increases or decreases in the price charged to regulated customers, including residential clients. The wholesale price, or node rate, is a theoretical price for electricity charged to regulated customers every six months. The prices are based on the exchange rate between the U.S. dollar and the peso; 10-year power demand projections; utilities' capital-spending plans; water reservoir levels; the price of oil, coal and natural gas; and variations in the producer price index. The main power companies supplying energy to the SIC grid are Empresa Nacional de Electricidad SA (EOC, ENDESA.SN), AES Corp. (AES) through its Gener SA (GENER.SN) unit, and Colbun SA (COLBUN.SN). -By Anthony Esposito, Dow Jones Newswires; 56-2-715-8929; anthony.esposito@dowjones.com
