system. Tariffs, cost recovery and subsidies Tariffs In 2005, the average residential tariff was US$0.109/(kWh), while the average industrial tariff was US$0.0805/(kWh). These tariffs are very close to the LAC weighted averages of US$0.115 for residential consumers and 0.107 for industrial customers. Subsidies Electricity subsidies in Chile aim to temper the impact of rising electricity tariffs on the poorest sectors of the population. In June 2005, Law 20,040 established an electricity subsidy for poor Chilean families. As mandated by the law, the subsidy will be triggered when electricity tariffs for residential, urban or rural users face an increase equal to or above 5% during a period equal to or below six months. This measure was first applied between June 2005 and March 2006, when it targeted 40% of the total population (about 1,250,000 families). The subsidy was triggered a second time from February to March 2007, when it benefited 32,000 clients in the Second and Third Regions of the country. More recently, the government has announced a new application of the subsidy to benefit an estimated 1,000,000 households between December 2007 and March 2008. The total amount of the subsidy (US$33 million) will triple the resources committed in previous campaigns and is a response to rising electricity prices caused by the increasing use of diesel as a substitute for natural gas and the low precipitations of 2007, which have hindered hydropower generation. Investment and financing Investment requirements in electricity generation, transmission and distribution over the period to 2030 are estimated to be between US$38–49 billion. Summary of private participation in the electricity sector As a result of the 1982 reform of the electricity sector, 100% of generation, transmission and distribution activities in Chile are in the hands of private companies. Enel group (5223 MW ; 32,8%), AES Andes (2642 MW 16,6%), Colbún (2591 MW, 16,3%) and Engie (1856 MW ; 11,6%) control the largest part generation sector, in which a total of 26 companies participate. The distribution sector, with about 25 companies, is also dominated by four main groups: CGE Distribución S.A., Chilectra S.A., Chilquinta Energía S.A., and Inversiones Eléctricas del Sur S.A.(Grupo SAESA). As for transmission, Transelec is the largest owner of the transmission grid, followed by CGE transmission. There are some minor exceptions to the 100% private production of electricity, such as the case of the Chilean Air Force providing power for the Chilean installations in Antarctica. Electricity