Multi-union to sue power companies for extensive power outages: thousands of companies affected | Economy

Diego Martin | UNO Agency

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The National Multi-Union, led by its executive director Alvaro Izquierdo, has announced plans to pursue collective legal action against the electric companies Enel and CGE due to extended power outages that have impacted between 5,000 and 6,000 micro and small businesses, leading to “significant losses” for these enterprises. The lawsuit, supported by the National Consumer Service (Sernac), aims to seek compensation for the damages incurred by these businesses, including disruptions to their operations and losses of refrigerated goods, among other issues. Sernac emphasizes that micro and small enterprises are protected under Consumer Law when acquiring services such as electricity, while Sernac’s national director, Andrés Herrera, stresses the necessity for electricity companies to take responsibility in such situations. Sernac is set to offer legal assistance to the Multi-Union since it lacks the legal authority to initiate actions on behalf of micro and small businesses.

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The executive director of the National Multi-Union Alvaro Izquierdo announced that as a union organization, they will file a collective lawsuit against the electric companies responsible for the widespread power outages.

In this case, the claim is focused on Enel and CGE, although the inclusion of additional distribution companies is not excluded.

This action, supported by the National Consumer Service (Sernac), aims to obtain legal compensation for the “significant losses” suffered by micro and small enterprises (MSEs).

National Multi-Union to sue CGE and Enel over massive power outages

“Between 5,000 and 6,000 micro and small businesses were affected by the outages, with many entrepreneurs losing all their products due to the disruption of the refrigeration chain, while also being unable to open their businesses for several days, resulting in a loss of income,” stated the representative of the Multi-Union.

According to Sernac, micro and small businesses are protected by Consumer Law when they contract goods or services from other companies, such as electricity services.

On the other hand, National Director of Sernac, Andrés Herrera, expressed that the organization fully understands “the plight facing micro and small businesses, and we believe responsible electric companies must acknowledge their accountability.”

“As Sernac, we will provide all necessary cooperation and forward any information we receive, including complaints or additional information from municipalities concerning impacts on micro, small, and medium-sized enterprises,” Herrera said.

Ultimately, the director of the regulatory body highlighted that, legally, Sernac cannot initiate actions on behalf of micro and small businesses, but it can offer guidance and legal support to the Multi-Union.

Diego Martin | UNO Agency

visits

SEE SUMMARY

Automatic summary generated with Artificial Intelligence

The National Multi-Union, through its executive director Alvaro Izquierdo, has announced that it will take collective legal action against the electric companies Enel and CGE, for the prolonged power outages that have affected between 5 and 6 thousand micro and small businesses, causing “enormous losses” to these enterprises. The lawsuit, backed by the National Consumer Service (Sernac), seeks to compensate the damages suffered by these businesses, affected by the interruption of their operations and the loss of refrigerated products, among other aspects. Sernac highlights that MIPES are protected by the Consumer Law when contracting services such as electricity, while the national director of Sernac, Andrés Herrera, underlines the importance of electric companies assuming their responsibility in these situations. Sernac will provide legal support to the Multi-Union, given that it does not legally have the authority to file actions on behalf of MiPymes.

Developed by BioBioChile

The executive director of the National Multi-Union Alvaro Izquierdo announced that as a union entity they will collectively sue the electric companies responsible for the extensive power outages.

In this case, the claim is directed to Enel and CGE although the inclusion of other distribution firms is not ruled out.

With this action, which will have the support of the National Consumer Service (Sernac), it is sought to achieve by legal means to compensate for the “enormous losses” that micro and small enterprises (MSEs) suffered.

National Multi-Union to Sue CGE and Enel for Massive Power Outages

“It is about between 5 and 6 thousand micro and small businesses that were affected by the cuts, many entrepreneurs who lost all their products due to the lack of a refrigeration chain, along with being unable to open their premises for several days, ceasing to receive income. The impact is greater,” said the representative of the Multigremial.

According to Sernac, SMEs are protected by the Consumer Law when they contract a good or service from another company, such as the electricity service.

For its part, the National Director of Sernac, Andrés Herrera said that as an organization, they fully empathize “with the situation affecting micro and small businesses, and we believe that responsible electric companies have to assume their responsibilities.”

“We, as Sernac, will provide all the necessary cooperation and will forward all the information we receive, whether it be complaints or other information that the municipalities give us in relation to the impact on micro, small, and medium-sized businesses,” Herrera said.

Finally, the director of the supervisory body pointed out that, legally, Sernac cannot present actions representing MSMEs, but it can advise and legally support the Multigremial.

Implications for Micro and Small Enterprises

The repercussions of such power outages extend beyond immediate financial loss. Here are some key factors:

• Operational Disruptions: Extended outages halt operations, resulting in loss of income and disruptions to supply chains.
• Reputation Damage: Businesses relying on consistent service may face consumer distrust if unable to provide products or services.
• Legal Protections: Understanding Consumer Law can empower MSMEs to assert their rights when facing utility issues.

Benefits of Legal Action for Affected Businesses

Collective legal action presents several advantages:

1. Stronger Negotiation Power: A unified front increases bargaining strength against larger corporations.
2. Access to Resources: Support from organizations like Sernac provides essential resources and guidance.
3. Enhanced Visibility: Media attention surrounding the lawsuit can galvanize public support and consumer awareness.

What Affected Businesses Should Do

Seek Legal Advice

Engage with legal representatives knowledgeable about consumer protection laws to explore options.

Document Losses

Maintain detailed records of losses incurred during outages to strengthen claims for damages.

Participate in Collective Actions

Join forces with other affected businesses to amplify your voice and enhance claim efficacy.

Case Study: Multi-Union Legal Action

A recent example of the efficacy of collective legal action comes from Argentina, where a group of MSMEs successfully sued a regional electricity provider for similar issues.

Key Outcomes of the Case:

• Settlement agreements were reached, compensating businesses for their losses.
• The case led to regulatory changes within the utility sector, ensuring better service reliability moving forward.
• Heightened awareness among consumers regarding their rights contributed to more robust advocacy efforts.

Practical Tips for Managing Utility Issues

To navigate potential utility disruptions successfully:

• Establish Backup Systems: Implement generators to reduce operational downtime during outages.
• Enhance Communication: Keep stakeholders informed about potential disruptions and safety measures taken.
• Engage with Local Government: Work with local authorities to stay abreast of infrastructure developments affecting utilities.

Conclusion

As micro and small businesses face increasing challenges from inconsistent utility services, the collective legal action taken by organizations such as the National Multi-Union represents a critical step towards accountability. Through solidarity, these enterprises can reclaim losses and advocate for improvements in the vital services they rely on.