When there is a power outage in the United States, it is the legal duty of the electric company to handle and fix the situation with due diligence. Similarly in Chile, companies that provide electricity must perform annual maintenance and have an adequate repair plan in the face of a power failure.
Laws like these exist to hold corporations accountable for potential corporate negligence. However, companies like Enel have still failed to comply with legal guidelines.
What's happening?
According to Reuters, the Chilean government fined Enel, an Italian electricity distributor, $19 million. During the Southern Hemisphere's winter season in August, heavy storms led to extensive power outages. In some cases, these outages lasted up to 15 days.
Enel's $19 million fine is over four infractions from August 2024. Reuters reported that the company's reaction to the outages did not follow through with the proper measures an electric company must take in the face of such widespread failure.
The electric company did not maintain its infrastructure, did not have a system to receive consumer outage reports, did not hand over information to the government, and took too long to restore power.
While Enel advertises itself as an environmentally conscious and sustainable power source, the long-lasting outages were harmful to the affected individuals and had environmental consequences.
Why is corporate negligence important?
Enel's website says, "Our 'Build the future through sustainable power' strategy accelerates innovation, sustainability, and boosts transformation." Power outages lasting up to 15 days, however, do not build a sustainable future.
This is considered greenwashing, as while Enel presents itself as an eco-friendly electric company, its negligence in handling its 2024 power outages proves its advertised values are for show. In the face of a power outage, backup generators the public must use contribute to poor air quality, food is often wasted, and water quality could worsen.
Corporate negligence such as this also plays a role in wildfire outbreaks. The changing climate is outwardly to blame for wildfires such as those in California, but inadequate infrastructure maintenance among utility companies does not do much to help. Sparks from aging equipment and uninsulated power lines can ignite vegetation, causing a wildfire.
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Definitely 👍 What's being done about corporate negligence?
All across the world, there are guidelines in place to enforce sustainable corporate behavior. Guidelines and laws keep corporations in check to ensure a healthier environment for current and future generations.
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By just holding Enel responsible for its failure to protect and supply its consumers with electricity, the Chilean government sent a message to all corporations that corporate negligence is a crime.
Energy Minister Diego Pardow said, "We hope that not just Enel, but all companies, see that they need to comply with regulations and understand that in Chile nobody is above the law."
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