Good day, ladies and gentlemen. Welcome to Enel Chile's second quarter and first half 2026 results conference call. My name is Carmen. I'll be your operator for today. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Please submit your written questions via the webcast chat. Please be advised that today's conference is being recorded. During this call, we may make statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include Enel Chile S.A.'s current expectations, intentions, plans, beliefs, or projections. Forward-looking statements are based on management's current assumptions and expectations, do not guarantee future performance, and involve risks and uncertainties. Actual results may differ materially from those anticipated in the forward-looking statements as a result of various factors. These factors are described in Enel Chile's press release on its second quarter and first half 2026 results. In the presentation accompanying this conference call, please refer to Enel Chile's annual report on Form 20-F for the risk factors. You may access our second quarter and first half 2026 results press release and presentation on our website, www.enel.cl, in the investor section, and our 20-F on the SEC's website, www.sec.gov. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of their dates. Enel Chile undertakes no obligation to update these forward-looking statements or to disclose any development, as a result of which these forward-looking statements become inaccurate, except as required by law. I would now like to turn the presentation over to Ms. Isabela Klemes, Head of Investor Relations of Enel Chile. Please proceed.
Good afternoon. Welcome to Enel Chile's 2026 second quarter and first half results presentation. Thank you for taking the time to join us today. My name is Isabela Klemes. I'm the Head of Investor Relations. Joining me today are our CEO, Gianluca Palumbo, and our CFO, Simone Conticelli. Our presentation and related financial information are available on our website, www.enel.cl, in the investor section, as well as through our investor app. In addition, a replay of the call will soon be available. At the end of this presentation, there will be an opportunity to ask questions via webcast chat through the Ask a Question link. Media participants are connected in listening mode. Gianluca will begin by covering the key highlights of the period, our portfolio management actions, and recent regulatory developments. Simone will provide an overview of our business, economic, and financial performance. Thank you for your attention. I will now hand the call over to Gianluca.
Thank you, Isabela. Good afternoon, everyone, and thank you for joining us today. Let me start with the main highlights of the period. First, let me turn to portfolio management. During the first half of 2026, hydro generation was lower than last year, reflecting weaker rainfall conditions across the system, despite a strong El Niño expectation. This impact was partially offset by higher renewable generation, availability of Argentina gas, and active portfolio optimization initiatives, helping us maintain operational flexibility and support our supply commitments. Looking at our medium-term strategy, we continue to advance our portfolio diversification initiatives. Construction of our battery energy storage projects remains on track with approximately 0.5 GW currently under construction. In addition, we signed a new renewable PPA buy that will provide greater flexibility to our supply portfolio, strengthen diversification, and support long-term value creation. Let's now move to the country and regulatory context. During the quarter, the Electricity Tariff Protection Bill was approved by both the Chamber of Deputies and the Senate. The bill includes a securitization mechanism to address the VAD 2020-2024 tariff settlement process, providing greater visibility on the recovery of regulatory receivables. At the same time, the proposal extends the VAD 2024-2028 regulatory period through 2030, aiming to prevent delays in upcoming tariff review cycles. In addition, the initiative established a dedicated framework to plan investments aimed at enhancing the quality of service for customers by strengthening network resilience. This is an increasingly relevant topic considering the challenges faced by the electricity system in recent years. Finally, let me turn to business performance. Despite a more challenging operating environment in the quarter, our first half's results remained resilient, supported by active portfolio management and diversification initiatives. We also maintained a sound liquidity position, allowing us to support our CapEx plan while providing financial flexibility. In the next slide, we will go deeper into each of these areas and provide further details on the key drivers behind these results. Throughout the presentation, we will discuss each of these topics in greater detail and explain the main drivers behind our operation and financial performance. Let's now move to slide four, where I will provide more detail on our sourcing strategy, hydrological conditions, and the progress of our battery energy storage projects. Let me begin with our hydro generation. Hydro generation during the first half was below last year's level, as shown on the left-hand side of the slide. This was due to poor rainfall recorded year to date, even though observations from specialized entities indicate that Pacific Ocean conditions have transitioned into El Niño conditions and are continuing to intensify. For 2026, our hydro generation outlook remains at around 10.7 TWh, reflecting an expected recovery in the second half of the year. Over the past few weeks, we have seen a significant improvement in hydrological conditions, together with encouraging snow accumulation levels. As a result, we are increasingly confident that our hydro generation target is achievable. Moving now to gas and thermal activities. In thermal generation, we continue to optimize our fuel management strategy, adapting our sourcing and generation portfolio to evolving system conditions. As a result, thermal generation increased by 5% year-over-year, reaching 3.6 TWh during the first half of 2026. As you already know, we secured an Argentina firm gas supply agreement covering fixed volumes from January 2026 through April 2027, strengthening fuel availability during the period. During the first half of the year, lower hydro availability and safety operational requirements across the power system increased the need for thermal generation. To support system reliability, security of supply, and cost efficiency, we also secured additional short-term LNG volumes for the second half of 2026. In parallel, we will continue to advance our LNG portfolio optimization strategy, further strengthening flexibility across our sourcing portfolio. Let me now comment on our sourcing agreements. We continue to strengthen our commercial sourcing portfolio through a new long-term buy PPA. This contract will add up to 1 TWh per year of non-solar energy, starting in the second half of 2026. The agreement has a duration of 15 years and will further enhance supply diversification, while supporting long-term customer demand. This agreement is an example of our flexible make-or-buy strategy. As we have consistently highlighted, we remain focused on capturing opportunistic and value-accretive sourcing solutions that enhance portfolio diversification and strengthen the value proposition that we offer to our customers. Finally, let me focus on our projects under construction. We continue to advance our BESS projects. Las Salinas, Valle del Sol, and Azabache represent a combined capacity of more than 450 MW, reinforcing system flexibility and supporting greater renewable integration across our portfolio. Overall, our active portfolio management approach and diversified sourcing strategy continue to strengthen security of supply, improve cost efficiency and operational resilience, and support our operational commitments. Now let's move to slide five, where we will review our generation mix and energy balance. Let me now turn to our generation mix and energy balance. As shown on the left-hand side of the slide, net electricity generation decreased compared to the first half of 2025, mainly reflecting lower hydro generation during the period. Hydro generation declined by approximately 1.1 TWh, reflecting weaker hydrological conditions throughout the first half of the year. This impact was partially offset by higher generation from renewable sources, as well as a stronger contribution from our efficient gas-fired combined cycle plants. Moving now to energy balance. Physical energy sales remained broadly stable during the first half of 2026. Our diversified sourcing portfolio allowed us to maintain a solid commercial position, with total sales reaching 14.8 TWh, broadly in line with the 15.1 TWh recorded in the same period last year. The difference compared to the previous year was driven by a decrease in free market sales, partially reflecting lower demand, mainly from mining customers, among others. During the period, lower hydro generation was offset through a combination of higher thermal generation, strong renewable output, and portfolio management initiatives. On our portfolio mix, the flexibility of our portfolio continues to be one of the key strengths. Although hydro generation was lower, the contribution from combined cycle generation increased from 2.9 TWh to 3.2 TWh, while renewable generation increased from 2.7 TWh to 3.0 TWh. As a result, 67% of our production remained emission-free, demonstrating the resilience and diversification of our generation portfolio. Regarding spot performance and energy purchases, during the first half of the year, we increased our net spot market purchases mainly during non-solar hours, while purchases from third parties remained at a level similar to those recorded in the first half of 2025. Now I would like to move to slide six, where I will discuss the latest developments related to the regulatory framework for the distribution business. Let me turn to the latest regulatory developments affecting the distribution business, particularly the Electricity Tariff Protection Bill. During July, the bill received final approval from both chambers of Congress and was sent to the President for promulgation, representing an important step toward addressing pending regulatory matters in the distribution sector. The proposal is relevant for three main reasons. First, it addresses the VAD 2020-2024 settlement. Second, it extends the current tariff cycle by two years to establish a VAD 2024-2030. Third, it creates a dedicated framework to support grid resilience investments aimed at increasing the quality of services. Regarding the VAD 2020-2024 settlement, the bill establishes a mechanism to normalize and recover outstanding regulatory balances accumulated in recent years. This mechanism is expected to help distribution companies monetize regulatory receivables over time, while avoiding an immediate impact on regulated customers. For Enel Chile, this process is expected to result in an estimated cash inflow of approximately $70 million, improving visibility of future cash recovery. Moving now to the VAD 2024-2030 tariff framework. The proposal extends the VAD 2024-2028 tariff period through 2030, aiming to prevent delays in upcoming tariff review cycles. For the time being, several implementation details remain under discussion as the legislative and administrative process continues. We look forward to providing further updates and greater clarity as those discussions progress, including during our upcoming quarterly earnings call. Finally, regarding resilience investments. The bill also introduces a dedicated framework to support investments aimed at strengthening grid resilience by improving quality of service. This is particularly important given the increasing need to reinforce distribution networks and improve the system's ability to respond to extreme weather events and operational contingencies. The proposal is a step in the right direction, although key implementation details remain to be defined. Overall, we see these regulatory developments as a positive for the distribution business, because they provide greater tariff certainty, enhance visibility on regulatory receivables, and support future investments in grid resilience. With this, I will now hand over the presentation to Simone.
Many thanks, Gianluca, and good afternoon, everyone. Let me start with our key financial highlights of the period. As shown on the slide, in the first half of 2026, EBITDA reached $685 million, up 4% year-on-year, driven mainly by stronger gross margin performance in our integrated business, while second quarter EBITDA was lower than last year, reflecting weaker hydrology and lower gas sales. Net income reached $272 million in the first half, increasing 11% year-on-year, while second quarter net income grew 54%, supported by lower depreciation, amortization, and impairment expenses, as well as lower financial expenses. Cash generation remained particularly strong. First half FFO increased 24% to nearly $500 million, while second quarter FFO increased 28%, demonstrating the resilience of our business and the discipline of our cash management. We will go into more detail later in the presentation. Let's move to the next slide to talk about the investment made during the quarter. During the first half of 2026, we invested $328 million, more than doubling our CapEx versus last year. Our capital allocation remained highly focused. Nearly two-thirds of total investment were directed to renewables and BESS, while around 22% was invested in strengthening and modernizing the distribution network. The remaining investments were allocated to maintaining the reliability and availability of our thermal fleet. Let me provide some additional details on our investment allocation. In the renewable segment, our investments were focused on the development of BESS projects, in line with the objectives set out in our strategic plan, the optimization of hydro facility performance, and the improvement of fleet availability. In the thermal segment, the priority continues to be the maintenance and performance enhancement of the power plant fleet. Regarding grids, we continued advancing on the resilience program to strengthen the distribution network and ensure service continuity and readiness. Looking at the CapEx breakdown by nature: first, development CapEx, equal to $196 million, represented 60% of the total spending and was mainly allocated to BESS, which accounted for 80% of that spending, network investments representing 13%, mainly related to reliability, quality of services, and digitalization, and hydro plants, which represent 5%, mainly driven by performance enhancement projects. Second, asset management CapEx totaled $102 million, accounting for 31% of total CapEx, mainly allocated to the maintenance of Atacama, Quintero, and San Isidro CCGTs, the maintenance of renewable fleet aimed at ensuring plant availability, and activities for corrective maintenance and digitalization of grids. Finally, customer CapEx totaled $30 million, mainly invested in low and medium voltage connection projects and initiatives to support load increases. Now, let me walk you through the key drivers behind our EBITDA performance during the second quarter of 2026. Our EBITDA reached $262 million in the second quarter 2026, a decrease of $32 million compared to the second quarter 2025. The variation is mainly explained by the following factors. Starting with PPA sales, we have a negative impact of $14 million, mainly due to the expiration of old high-price regulated contracts. Moving to sourcing, we recorded a positive impact of $5 million, mostly thanks to optimization of regasification costs, energy and transmission resettlements from previous periods, and commodity hedges. These effects were partially offset by a higher volume of spot market purchases, mostly due to weaker hydrological conditions. On the other hand, we recorded a $36 million reduction of the gas margin, reflecting the high impact of gas trading and optimization activity in the second quarter of 2025. Turning to grids and other, the $14 million positive variance is due to the one-off effect in personnel costs recognized in the second quarter 2025 related to the incentivized early retirement plan, and the optimization of the O&M processes of our renewable facilities. These effects were partially offset by the reduction of grids results, reflecting 2025 positive effects from previous year remuneration recovery. Now let's move on to the next slide to review the EBITDA evolution during the first half of this year. As shown on the slide, EBITDA increased from $659 million to $685 million, despite ongoing challenges in the energy market. Starting with the integrated business, we recorded an increase of $38 million, mainly due to gas optimization initiatives led by the agreement with Shell that contributed more than $100 million to EBITDA growth, demonstrating our ability to unlock value from our gas portfolio under volatile market conditions. Lower natural gas costs impacted positively our variable thermal production cost and lower spot energy purchase costs. These positive impacts were partially offset by the expiration of old high-price regulated contracts and the net impact of transmission cost settlements. Moving to grids, we recorded a decrease of $12 million, mainly due to the positive one-off insurance provision recovery and other one-off positive effects recorded in 2025. The increased maintenance activity aimed at strengthening the resilience and security of the grids partially offset an increase in grids margin, which was also supported by favorable foreign exchange rate effects. Now let's move on to the next slide to review the net income evolution. In the first half of 2026, our net income amounted to $272 million, an increase of 11% compared to last year's figure, mainly explained by, first, the already illustrated EBITDA improvement by $26 million. Second, the decrease of depreciation, amortization, impairment, and bad debt expenses by $38 million, mainly due to positive effects from impairment charges recorded during the first half of 2025, along with the recovery of value from certain generation assets previously impaired, partially offset by higher depreciation and amortization associated with the commissioning of new renewable generation capacity. Third, the negative variation of $34 million in the financial result, mainly explained by negative foreign exchange differences and lower capitalization in the generation business. Finally, the increase of income taxes by $5 million, mostly due to the improved results. Focusing on the quarter, net income improved by $38 million, mainly as a result of lower depreciation, amortization, and impairment expenses by $52 million, driven by impairment-related effects on generation assets across comparable quarters, and lower financial expenses by $17 million, thanks to positive foreign exchange effects and increased interest capitalization related to the advancement of BESS projects, partially offset by a $32 million reduction in EBITDA, largely due to lower PPA sales and gas trading performance. Now moving to the next slide, let's analyze the FFO composition. In the first half of 2026, FFO reached $499 million as a result of the following factors. First, EBITDA totaled $685 million, as previously explained. Second, we recorded $32 million of PEC receivables. Third, net working capital decreased by $43 million, mainly due to positive effects of payment optimization related to development CapEx, partially offset by seasonality of energy payments and the increase in Enel Distribución receivable. Fourth, financial expenses amounted to $141 million, also including the settlement of hedging derivatives. Finally, income tax payments amounted to $120 million, mainly related to the generation business. Moving to the comparison with the results of the first half of 2025, 2026 FFO was $96 million higher, mainly thanks to the EBITDA increase of $26 million, a decrease of PEC receivable recovery by $237 million, largely explained by the factoring transaction related to PEC 3 executed in April 2025. The positive net working capital variation of $300 million was mostly due to higher commercial debt related to newly developed capacity and the positive effects of energy payment optimization. The higher financial expenses of $59 million and the lower income tax payment of $66 million, net of the negative impact from higher monthly payment tax rates in the generation business, also contributed. Now let's take a look at our liquidity and leverage position. Our gross debt reached $3.8 billion at the end of June 2026, decreasing by 1.4% compared to the gross amount as of December 2025. This reduction was mainly driven by $150 million of debt amortization related to inertial debt, partially offset by a $15 million drawdown under the CAF credit facility to support net working capital needs, and $9 million of additional IFRS 16 lease liabilities. The average term of our debt maturities decreased from 5.8 years recorded in December 2025 to 5.5 years by the end of June 2026, and the portion at a fixed rate was 85% of the total debt. The average cost of our debt reached 4.9% as of June 2026, in line with December 2025. Regarding liquidity, we are in a comfortable position to support our capital needs for the upcoming months and cope with next year maturities. As of June 2026, we have available committed credit lines for $640 million and cash and equivalents of $276 million. Thank you all for your attention. I will pass the floor to Gianluca for the closing remarks.
Thank you, Simone. To conclude, our first half 2026 results once again demonstrate the value of our diversified generation and distribution platform. Despite less favorable hydrological conditions, our results remain resilient, supported by disciplined portfolio management, increased renewable generation, and greater fuel flexibility. Second, recent regulatory developments represent an important step for the distribution business. Approval of the Electricity Tariff Protection Bill supports ongoing efforts to address tariff settlements and establish a framework for future network modernization and resilience investments. In addition, despite the intense winter weather conditions, our grid operations have remained resilient and performed in line with expectations. Our execution to date confirms that we are on the right track, supported by enhanced operational readiness and a strong focus on service continuity. We will provide a more comprehensive update on our performance during the Q3 call once the season concludes. As Chile continues to advance toward a more electrified and sustainable economy, we remain well positioned to support this transformation through our integrated presence across generation, distribution, and energy infrastructure. Finally, our strong liquidity position, robust cash generation, and disciplined capital allocation continue to underpin our growth strategy. These strengths allow us to advance key initiatives aimed at strengthening our commercial platform and sourcing portfolio, including battery energy storage projects and new long-term power purchase agreements. At the same time, we will maintain financial discipline and preserve balance sheet strength. Looking ahead, we remain focused on execution, operational excellence, and long-term value creation, supported by a flexible portfolio and a solid financial position. Thank you for your attention. I will now hand it over to Isabela for the Q&A session.
Thank you, Gianluca. Let's move on to the Q&A section. We will be taking questions via chat through the webcast. The Q&A session is open. Well, thank you very much for all the questions you have submitted to us. Since a few topics are common, received from both analysts and also via email, I'm going to start with these common questions. I will try to group them together for ease of the discussion. Any remaining details on these topics will be covered as we move through our Q&A session. Our first question is coming from several analysts, including Andrew McCarthy from LarrainVial and Fernan Gonzalez from BTG. I'm joining the question. Could you provide an update on the recently approved Electricity Tariff Protection Bill and its implications for the distribution business? In particular, how should investors think about the VAD 2020-2024 settlement, the extension of the current tariff cycle through 2030, and the new framework to support investments aimed at improving service quality and grid resilience? Also, Andrew is requesting if we have any projects ready to submit in terms of the resilience investments. Gianluca, please.
Thank you for the question. I would like to take a few extra moments on these topics, considering that for us it is one of the most significant regulatory developments for the Chilean distribution sector in recent years. From our perspective, there are three key elements. First, the VAD 2020-2024 settlement. The bill established a mechanism to address pending balances from the previous tariff period, improving visibility on the recovery of the regulatory receivables accumulated in recent years. For Enel Distribución, this represents approximately $65 million to $70 million. Subject to the final implementation process, we currently expect the securitization and factoring process to be completed by the end of this year or in early 2027. The second key element is the extension of the tariff cycle. The bill extends the current VAD period through 2030. While we are still assessing some of the implementation details, we believe this should bring greater regulatory predictability and help us avoid new tariff settlement delays. The third key element, and probably most importantly looking ahead, is the new investment framework for service quality. There is broad consensus across the sector that improving service quality requires a clear mechanism to recognize the investment needed to strengthen and modernize the distribution network. The new framework moves in that direction, opening a potential path to support future investment in grid resilience and service quality, but subject to regulatory approval and tariff recognition. Concluding, while several implementation details still need to be defined, we clearly view this as a positive development for the industry. For now, we don't have any specific project to share with you; we are working on it.
Okay. Thank you, Gianluca. Now let's go to the second question, which is also from several analysts. Gianluca, this is for you. How is Enel Chile evolving its portfolio and sourcing strategy to capture future growth opportunities while maintaining flexibility in an increasingly complex power market? In particular, how do battery storage, long-term energy contracts, and portfolio optimization contribute to managing volatility, supporting your commercial growth and creating value?
We are evolving our portfolio to add flexibility, improve resilience, and capture new growth in a more volatile power market like we experienced in recent months. First, battery storage, or BESS, is now a key part of the portfolio. It helps us capture more value from renewables, reduce curtailment, shift energy to higher-value hours, and add flexibility while making the system more resilient. Second, long-term contracts remain a key pillar of our commercial strategy. They provide customer stability and help us manage spot market volatility, while a diversified sourcing structure lets us adapt to market conditions and customer demand. Finally, portfolio optimization ties it all together. By combining renewables, storage, thermal flexibility, and contract management, we manage price volatility, optimize sourcing, and support growth. The goal is not only to protect margins, but to create extra value from the flexibility in our portfolio.
Thank you, Gianluca. Another question from Andrew McCarthy from LarrainVial and Fernan Gonzalez from BTG Pactual. Could you elaborate on the recently announced long-term PPA purchase? What is the strategic rationale behind this agreement, and does it imply any change in Enel Chile's growth strategy, particularly regarding the development of BESS, Gianluca?
This agreement is fully consistent with our long-term strategy and should not be interpreted as a change in direction. First, it strengthens our portfolio diversification. Second, it enhances our sourcing flexibility, and supports future customer demand. More importantly, it reflects our disciplined make-or-buy approach, under which we continuously assess both organic and contracting opportunities in order to optimize value creation and risk management. To be clear, this agreement does not imply any change in our BESS strategy. Our battery storage projects continue to progress according to plan and remain a key pillar of our growth strategy, supporting renewable integration, system flexibility, and portfolio resilience. Overall, this is another example of our disciplined execution, keeping us on the right track.
Okay. Thank you, Gianluca. Now, another question from Andrew McCarthy at LarrainVial, for Simone. More details on the hydro generation expected for 2026. We have seen weaker hydrological conditions than initially expected this year. Is Enel Chile's full-year hydro guidance at risk, or will the recent rainfall over the last week sustain your projections?
Thank you, Andrew. Let me provide some color on our budget. The budget is composed of two parts. For the first five months, we included a very dry scenario because we were coming from a very dry year and have been conservative. For the second part of the year, starting from June, we are considering a neutral scenario in the budget. We set the hydro production at the level of the average production over the last 13 years. So far, until May, we were well in line with our budget. The rain arrived with a little delay, starting from the 10th of July. Now we are comfortable confirming our guidance for hydro production because we expect a neutral year. Current forecasts indicate the year could be neutral or even wet. We are confident in our budget.
Thank you, Simone. We are receiving more questions on hydro estimates and also gas. Simone, this is for you. Given weaker hydrological conditions, evolving system reliability requirements, and tighter gas availability from Argentina during the winter season, how comfortable are you with your fuel position for the remainder of 2026? Do you have sufficient gas secured to support thermal generation requirements? Should we expect any additional fuel sourcing or portfolio optimization initiatives during the second half of the year?
Regarding our sourcing strategy, specifically gas, we try not to depend on just one source of gas. We prepared last year and have two groups of contracts: some contracts for natural gas from Argentina and the historical contract with Shell for LNG. Our LNG contracts are firm in terms of transportation volumes at fixed price. This core part of the portfolio can fuel our thermal power plants. Our strategy is to continue adjusting the portfolio based on the evolution of the environment. This week, we closed a contract for the delivery of another cargo of LNG that will be delivered in the second half of 2026. Based on this, and other activities we can put in place if needed, we are very confident we can fulfill our needs both in a base scenario and in a stressed one.
Thank you, Simone. We have a question from Alessandro Di Vito from Mediobanca. First, can the company confirm its 2026 guidance?
Looking at the first half results, it was a quite tough period in terms of external input: a very dry season with some issues for the system related to gas. Also, prices went up in the latter part of the half. Nevertheless, our results for the period were well in line with, or even a little better than, expected. This proves the resilience of our portfolio and our preparation. Looking ahead, we can confirm our guidance. We have no element to change our guidance for the remainder of the year. We are focused on managing our operating activities during the coming season.
Thank you, Simone. Another question from Isabella Pacheco at Bank of America. How do you expect El Niño to impact your operations and financial results this year? Could you give more color on how it has affected Enel Chile in the past and any contingencies, measures, or initiatives you are taking?
We have discussed hydrology and our budget. El Niño as a phenomenon is not included in our budget as an extra hydrology assumption. Considering the current situation, we could see a positive surprise in production in the latter part of the year, but we are not counting on that in our guidance. From an operational point of view, we are well prepared to manage intense phenomena. Meteorologists indicate El Niño is likely to peak in the last quarter of the year. We have already shown our preparation during the first half in both distribution and generation areas, and we are ready to manage potentially intense conditions in the second part of the year.
Okay. Thank you, Simone. Now going to a question from Fernan Gonzalez at BTG. Would you be willing to voluntarily renegotiate regulated PPAs with the CNE? If so, under which terms?
It's a bit early to discuss our posture on this new piece of regulation. We are waiting for the operative deployment of the regulation and are monitoring how it will evolve.
Okay, thank you. We are receiving more questions. Another from Alessandro Di Vito: Can you remind us the total stock of PEC receivables and the updated trajectory of the recovery?
Regarding the PEC receivables: the last PEC to be recovered is PEC 1, which will be recovered through the tariff. The deadline to recover all the receivables is the end of 2027. This year we opened with a stock of approximately $100 million. So far, we have recovered part of this. We expect to recover roughly $40 million during this year and the remaining $60 million next year.
Thank you. Another question from Alessandro requests granularity on returns observed on batteries in Chile and the evolution of unitary CapEx for battery packs. Gianluca?
Thank you. We are not disclosing specific returns for battery projects as this is strategically sensitive. That said, in terms of CapEx, we consider an average of approximately $0.9 million per megawatt, though each technology and project is affected by commodity prices and global conditions. Batteries remain a very attractive opportunity in Chile because they improve portfolio flexibility, allow us to capture value from intra-day price spreads, reduce renewable curtailment, and optimize the use of our renewable generation fleet. Batteries are a strategic part of our growth and flexibility strategy, and we continue to see compelling opportunities supported by improving technology economics and the needs of the Chilean power system.
Okay. Thank you, Gianluca. Another question about gas: do you see any risk related to lower gas supply in Chile?
We do not see a risk related to gas supply, given our contract structure. We cannot disclose further contractual details due to strategic reasons.
Moving on, a question from Jay Samani at Scotiabank: Any insights on why you are seeing lower demand from mining companies given copper prices? Does the decline in free customer sales change management's confidence in capturing incremental demand from mining companies? Simone?
Regarding the lower mining consumption, we do not see it as a structural phenomenon—rather, it is some adjustments by specific customers for very specific reasons. Mining is an important sales segment for us. Our sales portfolio is diversified across many types of customers, and we consider it resilient in case some segment reduces consumption temporarily.
As we do not have any further questions, I would like to conclude this results conference call. Let me remind you that the investor relations team remains available to address any questions you may have. Thank you for your attention, and we look forward to seeing you soon again. Bye-bye.
This concludes our conference. Thank you for participating, and you may now disconnect.