Chile's National Energy Commission said Thursday it cut by 12.1% the average regulated electricity wholesale price, or node rate, generators charge distributors operating on the country's central electricity grid from November through April 2010.

This is the biggest drop in wholesale rates on the central electricity grid, or SIC, since October 1997, "which is obvioulsy very good news for consumers," Energy Minister Marcelo Tokman said.

The SIC, supplies some two-thirds of electricity to Chilean homes and industries.

As a result of the node rate cuts and other readjustments, residential electricity rates will fall an average 8.6% on the SIC grid, according to the minister.

The energy commission adjusts the node rate, a theoretical price for electricity charged to regulated customers, every six months. The prices are based on the exchange rate between the dollar and the peso, 10-year power demand projections, utilities' capital-spending plans, water reservoir levels, the prices of oil, coal and natural gas, and variations in the producer price index.

The commission also can re-adjust rates between these dates if any of the factors it takes into consideration vary more than 10% during the six-month period in which the regulated prices are valid.

The principal power companies supplying energy to the SIC grid are Empresa Nacional de Electricidad (EOC), AES Corp. (AES) through its Gener (GENER.SN) unit, and Colbun (COLBUN.SN).

-By Carolina Pica, Dow Jones Newswires; 56-2-820-4244; carolina.pica@dowjones.com