Operations

The Aguas Group is implementing the Water Efficiency Plan with the objective of limiting unaccounted-for water. This considers the physical transformation of the distribution network and the incorporation of new technologies, which began to be applied gradually and are being developed until the expected objectives are achieved. Among the main projects carried out in this plan are:

• Physical transformation and sensorization of the network
• Search for leaks in the network
• Incorporation of the AQUADAVANCED system for monitoring and segmentation of networks
• Back office and monitoring in the Control Center
• Reduction of losses in Large Pipelines
• Technologies for network intervention without supply cut-off
• Reduction of losses in Large Pipelines
• Reduction of losses in Large Pipelines
• Technologies for network intervention without supply cut-off

With these new technologies and other measures, Aguas Andinas aims to recover 70 billion liters of water per year, which is equivalent to the annual consumption of 1,490,000 people.

For more information on Unaccounted Water, we invite you to visit the following website. (https://www.siss.gob.cl/586/articles-17553_Recurso_1.pdf)

The agreement establishes guidelines for joint work that will seek to sustainably manage the water of the First Section of the Maipo basin. This includes important new investments by Aguas Andinas; an improvement to the current infrastructure based on an accurate, cooperative and professional long-term diagnosis; the reuse of the resource with treated water from the Biofactories and a more efficient master management plan so that future solutions come from different sectors.

The collaboration agreement with the Canal Owners' Associations is in operation, and thus the Board of Directors of the Supervisory Board of the First Section of the Maipo River has coordinated water transfers during the winter period, ensuring sufficient reserves in the El Yeso Reservoir to face a new summer season. This agreement establishes guidelines for a joint work that will seek to sustainably manage the water of the First Section of the Maipo basin, which has been fundamental to maintain the reservoir at its current levels.

For more information on the agreement with the Canal Users Associations, we invite you to review the following document. (https://www.aguasandinasinversionistas.cl/~/media/Files/A/Aguas-IR-v2/documents/es/convenio-asoc-de-canalistas-y-aa.pdf)

The application of the circular economy model is one of the main levers used by the company to collaborate with the mitigation and adaptation of the climate crisis, because it maximizes water efficiency and also provides a use for the by-products of the water treatment and sanitation processes. It also promotes partnerships and collaborative work with other stakeholders involved in water management in the concession area.

For more information on Aguas Andinas' business model and circularity, we invite you to review.

(https://www.aguasandinasinversionistas.cl/~/media/Files/A/Aguas-IR-v2/annual-reports/en/reporte-integrado-2022-english-30-05-23.pdf#page=43&zoom=100,0,0)

The company quantifies its greenhouse gas (GHG) emissions for the stages of production, transportation and distribution of drinking water, wastewater collection and treatment, and in non-productive buildings, which are verified by a third party in accordance with the guidelines of the GHG Protocol standard and the ISAE 3410 standard, Assurance Engagements on Greenhouse Gas Statements.

For more information on the carbon footprint of Aguas Andinas, we invite you to review. (https://www.aguasandinasinversionistas.cl/~/media/Files/A/Aguas-IR-v2/annual-reports/en/reporte-integrado-2022-english-30-05-23.pdf#page=47&zoom=100,0,0)

For the company it is essential that drinking water and sanitation services are accessible to all its customers, regardless of their economic situation. For this reason, before applying cuts in supply due to delinquency, it offers a series of facilities to regularize overdue debts, in addition to providing guidance in applying for state aid. Since the COVID-19 pandemic, the company has redoubled its efforts to ensure that both its agreements and tax subsidies reach the maximum number of people, as well as continuing to offer payment alternatives of last resort.

On the other hand, with the entry into force of Law 21,423, and after two years without being able to do so, in 2022 basic service companies recovered the power to suspend services for delinquency. Despite the high levels of debt accumulated during the pandemic - customers with more than four overdue accounts increased from 100,000 to 200,000 - Aguas Andinas decided that it will apply this extreme measure with the utmost prudence, empathizing with a macroeconomic environment that hits the finances of many households in the country. In this regard, it has strengthened the dissemination of regularization alternatives and dialogue with delinquent users, which has resulted in the signing of a significant number of agreements.

For more information about Delinquency, we invite you to review. (https://www.aguasandinasinversionistas.cl/~/media/Files/A/Aguas-IR-v2/annual-reports/en/reporte-integrado-2022-english-30-05-23.pdf#page=76&zoom=100,0,0)

Tariffs are set every five years through a process involving the company and the regulator. This process is carried out objectively according to a technical model that considers the determination of the total long-term cost of a model company. The procedure also contemplates updates linked to variations of polynomials integrated by the CPI, IPBI and IPPIM indexes.

The current tariff in Santiago is one of the lowest of all the country's regional capitals, according to data from the SISS. This is achieved without the help of state subsidies.

For more information on the tariff process that governs Aguas Andinas, we invite you to review (https://www.siss.gob.cl/586/articles-19743_recurso_1.pdf)

Most of the water consumed by the inhabitants of Santiago comes from the Maipo and Mapocho rivers, important water sources in the Metropolitan Region that originate in the Andes Mountains and have high levels of purity. In view of the decrease in these flows in recent years, raw water is also increasingly being extracted from subway aquifers.

Water purification is carried out in several plants with state-of-the-art technology and processes focused on hydraulic efficiency.

The company has regulation tanks and an extensive subway network to carry drinking water to its customers, ensuring adequate pressure and continuous supply. In Greater Santiago, it has more than 300 tanks, with a capacity of more than 1.3 million m3, which gives the system a high degree of autonomy. Meanwhile, the distribution network reaches a length that triples the length of Chile.

For more information about the technologies and processes we use, we invite you to review. (https://www.aguasandinasinversionistas.cl/en/our-business/our-operations)