population now has access to electricity, has happened in the last 15 years, following the establishment of a National Program for Rural Electrification (REP) administered by the National Fund for Regional Development. Under this Fund, there is tripartite funding of the capital costs of rural connections: users pay 10%, companies 20% and the state provides the remaining 70%, with users expected to pay for running costs. Service quality Interruption frequency and duration In 2002, the average number of interruptions per subscriber was 9.8, while the total duration of interruptions per subscriber was 11.5 hours in 2005. Both numbers are below the weighted averages of 13 interruptions and 14 hours for the LAC region. Distribution and transmission losses Distribution losses in 2005 were 6.52%, down from 8% a decade before and well below the 13.5% LAC average. Responsibilities in the electricity sector Policy and regulation The National Energy Commission (CNE), created in 1978 to advise on long-term strategies, is responsible for advising the Minister of Economy on electricity policy and for setting of regulated distribution charges. The Energy Superintendence (SEC) is responsible for supervising compliance with laws, regulations and technical standards for generation, production, storage, transportation and distribution of liquid fuels, gas and electricity. In turn, the Minister of Energy formally imposes the regulated tariffs and retains control over the issuing of rationing decrees during periods of drought when there is a shortage of hydro-electric generation capacity. Further responsibilities in the electricity sector are also held by the Superintendence of Secure Values (SVS), which is in charge of taxation, as well as directly by the regions and municipalities. Generation, transmission and distribution Since the privatization of the Chilean electricity sector in 1980, all generation, transmission and distribution activities have been in private hands. There are 26 companies that participate in generation, although three main economic clusters control the sector: Enel group, AES Andes and Tractebel (Colbún). The situation is similar in the distribution sector, with approximately 25 companies, in which the major companies include CGE Distribución S.A., Chilectra S.A., Chilquinta Energía S.A., and Inversiones Eléctricas del Sur S.A. (Grupo SAESA). In transmission, there are 5 players. In the Central Interconnected System (SIC), the most important player is Transelec, a pure transmission company which controls almost the entire transmission grid that serves the SIC. In the other interconnected systems, the large companies generation or the large clients are the owners of the