Empresa Nacional de Electricidad S.A. - Chile Current Report on Form 6-K

May 2, 2001 Securities And Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 U.S.A. Attention:Filing Desk Re: Empresa Nacional de Electricidad S.A. - Chile Current Report on Form 6-K Empresa Nacional de Electricidad S.A. - Chile, a Corporation (Sociedad anónima abierta) organized under the laws of the Republic of Chile, hereby encloses for filing pursuant to the Securities Exchange Act of 1934, as amended, one manually executed and seven conformed copies of Registrant's Current Report on Form 6-K. By copy of this letter, we are also filing one manually executed copy of Form 6-K with the New York Stock Exchange, Inc. in accordance with the instructions to such Form. Attached is: 1. The Endesa-Chile s Press Release regarding the financial results as of March 31, 2001. Very truly yours, Mario Valcarce Durán Chief Financial Officer cc: New York Stock Exchange, Inc.

FOR IMMEDIATE RELEASE For further information contact: Jaime Montero, Giovano Suazo Nicole Salas / Patrick Kilhaney Investor Relations Citigate Dewe Rogerson Inc. Endesa Chile (212) 688-6840 (56-2) 634-2329 nicole.salas@citigatedr-ny.com gsuazo@endesa.cl patrick.kilhaney@citigatedr-ny.com ENDESA CHILE ANNOUNCES CONSOLIDATED RESULTS FOR FIRST QUARTER 2001. (Santiago, Chile, April 27, 2001) Endesa Chile (NYSE: EOC), today announced consolidated financial results for First Quarter 2001. All figures are in constant Chilean pesos and are in accordance with Chilean Generally Accepted Accounting Principles (GAAP) as required by Chilean authorities (FECU). March 2000 figures have been adjusted by the CPI variation year-to-year, equal to 3.8%. The consolidated financial statements of Endesa-Chile, for the period ended March 31, 2001, incorporate all of the Company s Chilean subsidiaries, as well as its Argentinean subsidiaries Hidroeléctrica El Chocón S.A.; Central Costanera S.A. and Central Buenos Aires; its Colombian subsidiaries Central Hidroeléctrica de Betania S.A. and EMGESA; its Brazilian subsidiary Centrais Elétricas Cachoeira Dourada S.A.; and its Peruvian subsidiary Edegel. Financial statements as of March 2001 do not include Transelec, a Chilean transmission company sold during Fourth Quarter 2000. Highlights for the period include When compared with First Quarter 2000 results, the results for First Quarter 2001 reflect the following: a) An improvement in the Company s operational performance of 18%. On a comparable basis b) A strong decrease in financial expenses of approximately Ch$ 7,256 million, mainly explained by the decrease in liabilities. c) A drop in sales and administration expenses of Ch$ 2,651 million, and b) A net negative effect of Ch$ 33,091 coming from price level restatement, and the impact of Chile s currency devaluation on exchange difference and income from forward contracts. Net income as of March 31, 2001 was Ch$ 4,628 million, compared with net income of Ch$ 24,204 million in the corresponding 2000 period. 1

Consolidated Income Statement (Chilean GAAP, million Ch$) Table 1 1Q 00 1Q 01 Var Chg % Operating Revenues 223,223 229,538 6,315 2.8% Operating Expenses (138,059) (144,724) (6,665) 4.8% Operating Margin 85,164 84,814 (349) (0.4%) SG&A (9,796) (7,145) 2,651 (27.1%) Operating Income 75,368 77,669 2,301 3.1% Net Financial Income (Expenses) (57,482) (50,508) 6,975 (12.1%) Interest Income 4,330 4,048 (282) (6.5%) Interest Expense (61,812) (54,555) 7,256 (11.7%) Net Income from Related Companies 9,032 (1,361) (10,393) (115.1%) Net other Non Operating Income (Expense) (48,590) 8,448 57,039 (117.4%) Other Non Operating Income 5,023 11,137 6,114 121.7% Other Non Operating Expenses (53,613) (2,689) 50,924 (95.0%) Positive Goodwill Amortization (1,550) (1,769) (219) 14.1% Price Level Restatement 25,874 5,769 (20,105) (77.7%) Exchange differences 42,221 (17,190) (59,411) (140.7%) Non Operating Income (30,495) (56,609) (26,115) 85.6% Net Income b. Taxes, Min Int and Neg Goodwill Amort 44,873 21,059 (23,813) 53.1% Income Tax (10,646) (10,352) 294 (2.8%) Minority Interest (18,684) (16,041) 2,643 (14.1%) Negative Goodwill Amortization 8,661 9,961 1,300 15.0% NET INCOME 24,204 4,628 (19,576) 80.9% 2

Consolidated Income Statement (Chilean GAAP, thousand US$) Table 1.1 1Q 00 1Q 01 Var Chg % Operating Revenues 375,183 385,797 10,614 2.8% Operating Expenses (232,044) (243,245) (11,202) 4.8% Operating Margin 143,139 142,552 (587) (0.4%) SG&A (16,465) (12,010) 4,455 (27.1%) Operating Income 126,675 130,542 3,868 3.1% Net Financial Income (Expenses) (96,613) (84,891) 11,722 (12.1%) Interest Income 7,277 6,804 (474) (6.5%) Interest Expense (103,891) (91,694) 12,196 (11.7%) Net Income from Related Companies 15,180 (2,287) (17,468) (115.1%) Net other Non Operating Income (Expense) (81,668) 14,200 95,868 (117.4%) Other Non Operating Income 8,442 18,719 10,276 121.7% Other Non Operating Expenses (90,110) (4,519) 85,592 (95.0%) Positive Goodwill Amortization (2,605) (2,973) (368) 14.1% Price Level Restatement 43,488 9,697 (33,792) (77.7%) Exchange differences 70,964 (28,892) (99,855) (140.7%) Non Operating Income (51,254) (95,147) (43,892) 85.6% Net Income b. Taxes, Min Int and Neg Goodwill Amort 75,420 35,396 (40,024) 53.1% Income Tax (17,893) (17,399) 494 (2.8%) Minority Interest (31,403) (26,961) 4,442 (14.1%) Negative Goodwill Amortization 14,557 16,743 2,185 15.0% NET INCOME 40,681 7,778 (32,903) 80.9% 3

Comparatives Consolidated Income Statement First Quarter 2000 Pro Forma without Transelec (Chilean GAAP, million Ch$) Table 1.2 1Q 00 1Q 01 Var Chg % (Without Transelec) Operating Revenues 220,575 229,538 8,962 4.1% Operating Expenses (144,773) (144,724) 49 (0.0%) Operating Margin 75,803 84,814 9,012 11.9% SG&A (9,988) (7,145) 2,843 (28.5%) Operating Income 65,814 77,669 11,854 18.0% Net Financial Income (Expenses) (53,456) (50,508) 2,948 (5.5%) Interest Income 8,159 4,048 (4,111) (50.4%) Interest Expense (61,615) (54,555) 7,059 (11.5%) Net Income from Related Companies 16,099 (1,361) (17,460) (108.5%) Net other Non Operating Income (Expense) (46,016) 8,448 54,464 (118.4%) Other Non Operating Income 4,861 11,137 6,276 129.1% Other Non Operating Expenses (50,877) (2,689) 48,188 (94.7%) Positive Goodwill Amortization (1,550) (1,769) (219) 14.1% Price Level Restatement + Exchange Differences 62,906 (11,420) (74,327) (118.2%) Non Operating Income (22,017) (56,609) (34,593) 157.1% Net Income b. Taxes, Min Int and Neg Goodwill Amort 43,798 21,059 (22,738) 51.9% Income Tax (9,571) (10,352) (781) 8.2% Minority Interest (18,684) (16,041) 2,643 (14.1%) Negative Goodwill Amortization 8,661 9,961 1,300 15.0% NET INCOME 24,204 4,628 (19,576) 80.9% 4

Comparatives Consolidated Income Statement First Quarter 2000 Pro Forma without Transelec (Chilean GAAP, thousand US$) Table 1.3 1Q 00 1Q 01 Var Chg % (Without Transelec) Operating Revenues 370,734 385,797 15,064 4.1% Operating Expenses (243,328) (243,245) 83 (0.0%) Operating Margin 127,406 142,552 15,146 11.9% SG&A (16,788) (12,010) 4,778 (28.5%) Operating Income 110,618 130,542 19,924 18.0% Net Financial Income (Expenses) (89,847) (84,891) 4,956 (5.5%) Interest Income 13,713 6,804 (6,909) (50.4%) Interest Expense (103,559) (91,694) 11,865 (11.5%) Net Income from Related Companies 27,058 (2,287) (29,346) (108.5%) Net other Non Operating Income (Expense) (77,342) 14,200 91,541 (118.4%) Other Non Operating Income 8,170 18,719 10,548 129.1% Other Non Operating Expenses (85,512) (4,519) 80,993 (94.7%) Positive Goodwill Amortization (2,605) (2,973) (368) 14.1% Price Level Restatement + Exchange Differences 105,730 (19,195) (124,925) (118.2%) Non Operating Income (37,005) (95,147) (58,142) 157.1% Net Inc b. Taxes, Min Int and Neg Goodwill Amort 73,613 35,396 (38,217) 51.9% Income Tax (16,086) (17,399) (1,313) 8.2% Minority Interest (31,403) (26,961) 4,442 (14.1%) Negative Goodwill Amortization 14,557 16,743 2,185 15.0% NET INCOME 40,681 7,778 (32,903) 80.9% 5

Main Events in the Period Sale of Infraestrutura 2000 At an extraordinary meeting of Endesa Chile s board meeting, held on April 17, 2001 agreed to sell, the Company agreed to sell 60% stake in Infraestructura 2000 to Obrascón Huarte Lain S.A. (OHL) for approximately US$ 59.4 million. Sale contracts for this transaction, which should be closed by December 31, 2001, will be signed once pre-conditions are met. Said preconditions include, among other things the obtaining of various relevant official authorizations. Once the sale is completed, Endesa-Chile will remove Infraestructura 2000 s debt from its Consolidated Balance Sheet (approximately US$ 174 million). In addition, the proceeds from the sale of the shares will also be applied to reduce debts. The operation will lead to a total debt reduction by Endesa-Chile of approximately US$ 233 million. Tariffs in Chile Regulated node price for the Interconnected Central System (SIC), were set at US$ 35.44 per MWh (monomic price at Alto Jahuel) by the National Energy Commission (NEC) on April 19, 2001. The figure is up 7.0% compared with the price set in October 2000 at US$ 33.10 per MWh. New Dividends Policy At the Shareholders Meeting held on April 2, 2001, a new dividend policy was a announced, which consists of in the distribution of 30% of net income after taxes and adjustments for the accounting effects of goodwill and negative goodwill. Reelection of Board of Directors At the same Shareholders meeting, all of the members of the Board of Directors were re-elected. In addition, at a extraordinary Board of Directors meeting, Mr. Pablo Yrarrázaval Valdés and Mr. Antonio Pareja Molina were appointed Chairman and Vice-Chairman respectively, thus maintaining their positions. Investments Relative to the Company s investments during the period, Endesa-Chile continued with the construction of the 570 MW Ralco hydroelectric power plant. Ralco s construction was 36.5% completed as of March 2001, which is line with its July 2003 start up.. In Brazil, the Company has continued the construction of a second interconnection line between Argentina and Brazil, which will be operated by Companhia de Interconexao Energetica (CIEN), a consortium in which Endesa Chile has a 45% participation. This second line is expected to begin commercial operations in 2002. 6

Operating Income Operating income in First Quarter 2001 totaled Ch$ 77,669 million, a 3.1% increase compared with the same period of 2000, and 18% if Transelec s operating income is excluded from consolidated operating income in First Quarter 2000. This increase was primarily due to an increase in operating income from operations in Chile, Colombia and Peru and is mainly explained by improved market conditions. This increases was partially offset by the decrease in operational results in Argentina and a smooth decrease in Brazil. In Argentina, operating income from Central Costanera totaled Ch$ 6,463 million in First Quarter 2001, a drop of 67.7% compared with the same period in 2000. The drop was basically due to a decrease in the average sale prices resulting from the expiration of contracts with distribution companies Edenor and Edesur. On the other hand, Hidroeléctrica El Chocón S.A. improved its operating income 91.4% from Ch$ 1,949 million in First Quarter 2000 to Ch$ 3,730 million in 2001. In Brazil, operational results at Cachoeira Dourada decreased 13.2% from Ch$ 7,027 million in First Quarter 2000 to Ch$ 6,097 million in First Quarter 2001. This increase was largely due to a variation in seasonal energy sales, which will be compensated during the remainder of the year, and a decrease in spot prices. In Chile, without considering the effect of Transelec in 2000, operating results increased 113% to Ch$ 21,485 million during First Quarter 2001. This increase was due to a 7.8% increase in physical sales, which was primarily the result of a 16.3% increase in hydroelectric production that resulted from higher water reservoir levels as well as a 14.5% increase in the average sale price of energy from First Quarter 2000. In Colombia, operating results at Betania, which are consolidated with Emgesa, increased 83% to Ch$ 25,466 million in First Quarter 2001 from Ch$ 13,918 million in the corresponding period of 2000. The increase was mainly due to a 13% growth in physical sales of energy due to higher contract sales, and a increase of 28,2% in the average sale prices due to restrictions in the transmission system. In Peru, Edegel also contributed to the increase in consolidated operating income, which increased 12.5% from Ch$ 12,672 million in First Quarter 2000 to Ch$ 14,428 million in the corresponding 2001 period. The increase was primarily due to a 24% increase in energy sales explained by higher energy production related to the new 182 MW hydroelectric capacity that started operations during 2000, partially compensated by a decrease in the average sale prices of 2.4%, due to lower regulated prices. 7

Non-operating Income Non-operating losses increased 85.6% to Ch$ 56.609 million in First Quarter 2001 from Ch$ 30.495 million in the same period of 2000. The increase was mainly the result of: A lower result coming from Exchange Difference. A loss in Price Level Restatement. A decrease in equity income from related companies. Partially offset by: Lower interest expenses, and Higher net other non operating income, due to profits in forward contracts. Interest income decreased 6.5% to Ch$ 4,048 million in First Quarter 2001 from Ch$ 4,330 million in 2000. This decrease is primarily attributable to lower cash balances at Central Costanera. Interest expense decreased 11.7% to Ch$ 54,555 million in First Quarter 2001 from Ch$ 61,812 million in 2000. The decrease in interest expense was primarily due to a decrease in the Market interest rate and a decrease in debt during the last quarter of 2000, related to the proceeds of the sale of Transelec. Net Income from related companies, decreased to Ch$ 1,361 million in 2001 from Ch$ 9,032 million in 2000, this is due to the extraordinary gains in monetary correction that these companies registered during First Quarter 2000. However, it is important to mention the improvement in the operating income of Gasatacama and Electrogas during First Quarter 2001, which increased 10% and 19%, respectively, when compared to First Quarter 2000. Other non-operating income totaled Ch$ 11,137 million in First Quarter 2001 compared with Ch$ 5,023 million in the same period of 2000, principally due to Ch$ 7,725 4 million gains from forward contracts. Goodwill amortization was Ch$ 1,769 million in First Quarter 2001, as compared with Ch$ 1,550 million for 2000. This increase is mainly explained by the depreciation of the Chilean peso in relation to the U.S. dollar in real terms. Other non-operating expenses decreased 95% to Ch$ 2,689 million in First Quarter 2001 from Ch$ 53,613 million in 2000. The decrease in other non-operating expenses was primarily due to a negative accounting effect from forward contracts during First Quarter 2000 mainly explained by revaluation of Chile s currency at the end of this period, and other non operating expenses related to tax provisions and operating expenses from previous years. The price-level restatement totaled Ch$ 5,769 million in First Quarter 2001 compared with Ch$ 25,874 million in the corresponding period of 2000, primarily due to the lower inflation rate of 0.1% during First Quarter 2001 compare with an inflation rate of 1.0% in the same period of 2000. Exchange Differences totaled result in a loss of Ch$ 17,190 million in First Quarter 2001 compared to a positive Ch$ 42,221 million mainly due to the 3.72% devaluation of the Chilean peso during First Quarter 2001 compared with 5.25% revaluation of Chile s currency during the same period of 2000. 8

Consolidated Balance Sheet Analysis The evolution of the key financial indicators has been as follows : Table 2 Assets (million Ch$) Mar-00 Mar-01 Mar 01-00 %Var 01-00 Current Assets 324,431 297,346 (27,085) (8.3%) Fixed Assets 5,087,639 5,078,590 (9,048) (0.2%) Other Assets 381,301 398,651 17,350 4.6% Total Assets 5,793,371 5,774,588 (18,783) (0.3%) Table 2.1 Assets (thousand US$) Mar-00 Mar-01 Mar 01-00 %Var 01-00 Current Assets 545,290 499,767 (45,523) (8.3%) Fixed Assets 8,551,085 8,535,877 (15,208) (0.2%) Other Assets 640,874 670,035 29,161 4.6% Total Assets 9,737,248 9,705,679 (31,569) (0.3%) The Company s total assets decreased Ch$ 18,783 million compared with First Quarter 2000 as a result of the exclusion of the Transelec assets, which was partially offset by the depreciation effect of the Chilean peso in relation to the U.S. dollar in real terms. Table 3 Liabilities(million Ch$) Mar-00 Mar-01 Mar 01-00 %Var 01-00 Current liabilities 661,984 517,577 (144,408) (21.8%) Long-term liabilities 2,769,684 2,670,595 (99,088) (3.6%) Minority interest 1,150,504 1,280,119 129,615 11.3% Equity 1,211,198 1,306,297 95,099 7.9% Total Liabilities 5,793,371 5,774,588 (18,783) (0.3%) Table 3.1 Liabilities(thousand US$) Mar-00 Mar-01 Mar 01-00 %Var 01-00 Current liabilities (*) 1,112,635 869,921 (242,714) (21.8%) Long-term liabilities (**) 4,655,165 4,488,622 (166,543) (3.6%) Minority interest 1,933,718 2,151,569 217,851 11.3% Equity 2,035,730 2,195,568 159,838 7.9% Total Liabilities 9,737,248 9,705,679 (31,569) (0.3%) Total liabilities decreased Ch$ 243,496 million, primarily due to the reduction of financial debt during the second half of 2000 related to proceeds from the sale of Transelec. Minority interest increased Ch$ 129,615 million. The increase is mainly explained by the depreciation of the Chilean peso in relation to the U.S. dollar in real terms. (*) Ch$ figures divided by March 2001 exchange rate of 1 US$ = 594.97 $. (**) Given that the Company s financial debt is mainly denominated in dollars, a more meaningful comparison is to calculate the amount considering the exchange rate of each period (1US$ = 502.22 in March 200 and 1US$ = 594.97 in Marc 2001). Doing this analysis the decrease from First Quarter 2000 to First Quarter 2001 is approximately US$ 1,200 million. 9

Equity increased Ch$ 95,099 in First Quarter 2001 compared to the same period of 2000. This increase is mainly explained by the Company s results booked as of December 2000. Table 4 Indicator Unit Mar-00 Mar-01 Mar 01-00 %Var 01-00 Liquidity Times 0.49 0.57 0.08 16.3% Acid ratio test * Times 0.35 0.38 0.03 8.6% Leverage ** Times 1.45 1.23 (0.22) (15.2%) Short-term debt % 19.30 16.20 (3.10) (16.1%) Long-term debt % 80.70 83.80 3.10 3.8% Working capital million Ch$ (337,553) (220,230) 117,323 (34.8%) Working capital thousands US$ (567,345) (370,154) 197,192 (34.8%) (*) Current assets net of inventories and pre-paid expenses (**) Compounds to the ratio = Total debt / (equity + minority interest) Endesa Chile s working capital increased Ch$ 117,323 in First Quarter 2001 compare with 2000, basically due to debt prepayments during the second half 2000. The Company s liquidity levels are considered normal for hydroelectric generators, considering current liabilities are the current portion of long term obligations for the next 12 months, and e current assets only consider accounts receivables for a month. The main input of hydro-facilities is water, and both snow and water reservoirs are not considered current assets in the accounting figures. It is also worth noting that the Company s main operating cost is depreciation, which does not impact cash flow. 10

Consolidated Balance Sheet (Chilean GAAP) Table 5 Million Ch$ Thousand US$ 1Q 00 1Q 01 1Q 00 1Q 01 CURRENT ASSETS Cash 4,851 5,478 8,154 9,207 Time Deposits 56,867 29,183 95,579 49,049 Marketable Securities 16 643 26 1,081 Accounts Receivable, net 73,805 106,618 124,048 179,198 Notes receivable 9,708 5,689 16,317 9,563 Other accounts receivable 15,038 18,783 25,276 31,569 Amounts due from related companies 68,960 30,555 115,905 51,355 Inventories,net 17,821 22,996 29,952 38,651 Income taxes recoverable 47,169 43,525 79,280 73,155 Prepaid expenses 5,253 6,543 8,829 10,997 Deferred income taxes 5,724 203 9,621 341 Other current assets 19,219 27,130 32,303 45,599 Total currrent assets 324,431 297,346 545,290 499,767 PROPERTY, PLANT AND EQUIPMENT Property 39,339 34,201 66,118 57,483 Buildings and Infraestructure 4,938,295 5,199,093 8,300,074 8,738,413 Plant and equipment 1,221,524 1,286,302 2,053,085 2,161,960 Other assets 247,843 67,080 416,563 112,745 Technical appraisal 537,878 584,998 904,042 983,239 Sub - Total 6,984,878 7,171,673 11,739,882 12,053,840 Acumulated depreciation 1,897,239 2,093,083 3,188,797 3,517,964 Total property, plant and equipment 5,087,639 5,078,590 8,551,085 8,535,877 OTHER ASSETS Investments in related companies 175,478 154,229 294,935 259,222 Investments in other companies 59,418 67,486 99,868 113,428 Positive Goodwill 104,838 112,564 176,206 189,193 Negative goodwill (186,352) (172,433) (313,213) (289,818) Long-term receivables 58,397 14,704 98,150 24,713 Amounts due from related companies 80,650 144,749 135,553 243,288 Deferred taxes 0 4,181 0 7,028 Intangibles 25,570 25,570 42,976 42,976 Accumulated amortization (1,864) (2,584) (3,133) (4,342) Others 65,167 50,183 109,531 84,345 Total other assets 381,301 398,651 640,874 670,035 TOTAL ASSETS 5,793,371 5,774,588 9,737,248 9,705,679 11

Consolidated Balance Sheet (Chilean GAAP) Table 5.1 LIABILITIES AND SHAREHOLDER'S EQUITY CURRENT LIABILITIES Million Ch$ Thousand US$ 1Q 00 1Q 01 1Q 00 1Q 01 Due to banks and financial institutions: Short Term 136,547 74,500 229,502 125,216 Current portion of long-term debt 172,607 179,951 290,111 302,454 Current portions of bonds payable 27,204 41,425 45,723 69,625 Current portion of other long-term debt 27,930 31,250 46,943 52,524 Dividends payable 72 62 121 104 Accounts payable and accrued expenses 48,724 55,859 81,893 93,885 Miscellaneous payables 38,217 5,414 64,234 9,099 Amounts payable to related companies 139,335 37,833 234,188 63,589 Provisions 14,531 23,914 24,424 40,193 Withholdings 9,832 10,445 16,526 17,556 Income Tax 28,502 44,686 47,905 75,107 Deferred Taxes 4,658 2,599 7,829 4,368 Other current liabilities 13,825 9,639 23,236 16,201 Total current liabilities 661,984 517,577 1,112,635 869,921 LONG-TERM LIABILITIES Due to banks and financial institutions 1,386,664 1,183,905 2,330,645 1,989,857 Bonds payable 1,080,280 1,229,461 1,815,689 2,066,425 Notes payable 173,426 170,199 291,487 286,063 Accounts payable 29,819 24,754 50,119 41,605 Amounts payable to related companies 36,053 18,328 60,597 30,805 Accrued expenses 20,636 23,632 34,685 39,720 Deferred taxes 7,408 17,081 12,451 28,710 Other long-term liabilities 35,396 3,235 59,493 5,437 Total Long-term liabilities 2,769,684 2,670,595 4,655,165 4,488,622 Minority interest 1,150,504 1,280,119 1,933,718 2,151,569 SHAREHOLDERS EQUITY Paid-in capital, no par value 980,447 980,136 1,647,894 1,647,370 Additional paid-in capital-share premium 192,327 192,266 323,255 323,152 Other reserves 54,479 64,278 91,565 108,036 Total Capital and Reserves 1,227,253 1,236,680 2,062,714 2,078,559 Accumulated surplus (deficit) during development period of certain subsidiaries 0 0 0 0 RETAINED EARNINGS Retained earnings 64,989 109,231 Retained Losses (40,259) (67,665) Net Income 24,204 4,628 40,681 7,778 Interim dividends 0 0 0 0 Total Retained Earnings (16,055) 69,617 (26,984) 117,009 Total Shareholder s Equity 1,211,198 1,306,297 2,035,730 2,195,568 TOTAL LIABILITIES AND SHAREHOLDER S EQUITY 5,793,371 5,774,588 9,737,248 9,705,679 12

Consolidated Cash Flow (Chilean GAAP) Table 6 Effective Cash Flow (million Ch$) Mar-00 Mar-01 Mar 01-00 %Var 01-00 Operating 100,738 82,109 (18,629) (18.5%) Financing (56,581) (104,554) (47,973) 84.8% Investment (60,819) 27,550 88,369 (145.3%) Net cash flow of the period (16,661) 5,106 21,767 130.6% Table 6.1 Effective Cash Flow (thousand US$) Mar-00 Mar-01 Mar 01-00 %Var 01-00 Operating 169,316 138,005 (31,311) (18.5%) Financing (95,098) (175,730) (80,632) 84.8% Investment (102,221) 46,305 148,526 (145.3%) Net cash flow of the period (28,004) 8,582 36,586 130.6% The variation in the composition of the cash flow during the period is basically explained by: a) Cash flow from operating activities which decreased 18.5% to Ch$ 82,109 million in First Quarter 2001, which mainly reflects the effect of the drop in Central Costanera s operating results in Argentina, and the exclusion of Transelec s operating results. b) Positive cash flow from investment activities of Ch$ 27,550 million, which was the result of gains in forward contracts and collections upon loans to related companies. c) Negative cash flow from financing activities of Ch$ 104,554 million primarily produced by a net decrease in liabilities. 13

Table 7 Consolidated Cash Flow (Chilean GAAP) Million Ch$ Thousand US$ 1Q 00 1Q 01 1Q 00 1Q 01 CASH FLOWS ORIGINATED FROM OPERATING ACTIVITIES Net income (loss) for the year 24,204 4,628 40,681 7,778 Charges (credits) which do not represent cash flows: Depreciation 43,644 43,756 73,355 73,544 Amortization of intangibles 5,172 1,546 8,694 2,598 Amortization of positive goodwill 1,550 1,769 2,605 2,973 Amortization of negative goodwill(less) (8,661) (9,961) (14,557) (16,743) (Profit) loss on sale of fixed assets 10 (13) 18 (22) (Profit) on sales of investments -.- -.- -.- -.- Accrued profit from related companies( less) (9,032) 1,361 (15,180) 2,287 Minority interest 18,684 16,041 31,403 26,961 Net, price-level restatement (25,874) (5,193) (43,488) (8,728) Net exchange difference (42,221) 16,613 (70,964) 27,923 Dividends received -.- -.- -.- -.- Other credits which do not represent cash flow 30,137 (2,065) 50,653 (3,470) Assets variations which affect cash flow: Decrease (increase) in marketable securities 15,685 (647) 26,363 (1,088) Decrease (increase) in receivable accounts 13,130 (24,918) 22,068 (41,880) Decrease (increase) in receivable accounts from related companies (42,851) 33,953 (72,022) 57,067 Decrease (increase) in inventories 1,340 (307) 2,252 (515) Decrease (increase) in other assets (4,185) (20,663) (7,034) (34,729) Liabilities variations which affect cash flow: Increase in current portion of long-term bank and other debt 22,621 (2,705) 38,020 (4,547) Increase in current portion of bonds payable 2,826 741 4,750 1,246 (Decrease) increase in dividends payable (2,599) (103) (4,369) (172) Decreace (increase) in accounts payable 4,505 6,942 7,572 11,668 Increase in accounts payable to related companies 34,869 16,537 58,606 27,795 Increase in accrued expenses and withholdings (410) (3,211) (690) (5,397) (Decrease) increase in other liabilities 18,194 8,007 30,579 13,458 NET POSITIVE CASH FLOW ORIGINATED FROM OPERATING ACTIVITIES 100,738 82,109 169,316 138,005 CASH FLOWS ORIGINATED FROM FINANCING ACTIVITIES Shares issued and suscribed -.- -.- -.- -.- Proceeds from loans wired 56,361 21,871 94,729 36,759 Proceeds from debt issuance 15,639 -.- 26,286 -.- Proceeds from others loans obtained from related companies 82,086 75,795 137,966 127,393 Proceeds from loans obtained from related companies -.- -.- -.- -.- Other sources of financing -.- -.- -.- -.- Dividends paid (202) (2,820) (339) (4,740) Loans, debt amortization (less) (100,803) (99,876) (169,426) (167,867) Issuance debt amortization(less) (44,809) (46,455) (75,312) (78,080) Amortization of loans obtained from related companies (54,085) (51,303) (90,904) (86,228) Other disbursements related to financing(less) (10,767) (1,765) (18,097) (2,966) NET (NEGATIVE) CASH FLOW ORIGINATED FROM FINANCING ACTIVITIES (56,581) (104,554) (95,098) (175,730) CASH FLOWS ORIGINATED FROM INVESTING ACTIVITIES Sale of fixed assets 1,401 28 2,354 47 Sale of Long-term investments -.- -.- -.- -.- Collection upon loans to related companies -.- 35,243 -.- 59,235 Other income on investments 2,403 8,347 4,039 14,030 Additions to fixed assets (less) (25,059) (14,600) (42,118) (24,539) Long-term investments(less) (5,092) -.- (8,559) -.- Other loans provided to related companies(less) -.- -.- -.- -.- Other investment disbursements(less) (34,471) (1,468) (57,937) (2,468) NET (NEGATIVE)CASH FLOW ORIGINATED FROM INVESTMENT ACTIVITIES (60,819) 27,550 (102,221) 46,305 NET POSITIVE CASH FLOW FOR THE PERIOD (16,661) 5,105 (28,004) 8,580 EFFECT OF PRICE-LEVEL RESTATEMENT UPON CASH AND CASH EQUIVALENT (2,398) 953 (4,031) 1,601 NET VARIATION OF CASH AND CASH EQUIVALENT (19,060) 6,058 (32,034) 10,182 INITIAL BALANCE OF CASH AND CASH EQUIVALENT 80,778 28,603 135,767 48,075 FINAL BALANCE OF CASH AND CASH EQUIVALENT 61,718 34,661 103,733 58,257 14

Business Information Main Operating Figures Table 8 Company GWh sold GWh sold 1Q 2000 1Q 2001 Dif 01-00 Var 01-00 Chilean Companies 4,258 4,590 332 7.80% Chocón 555 732 177 31.89% Costanera 3,881 1,834 (2,047) (52.74%) CBA 587 517 (70) (11.93%) Edegel 951 1,175 224 23.55% Betania 562 409 (153) (27.22%) Emgesa 2,662 3,221 559 21.00% Cachoeira 955 833 (122) (12.77%) Company GWh produced GWh produced 1Q 2000 1Q 2001 Dif 01-00 Var 01-00 Chilean Companies 3,554 3,853 299 8.41% Chocón 485 674 189 38.97% Costanera 2,097 1,584 (513) (24.46%) CBA 565 490 (75) (13.27%) Edegel 998 1,173 175 17.54% Betania 560 325 (235) (41.96%) Emgesa 1,658 1,989 331 19.96% Cachoeira 747 762 15 2.01% 15

Endesa Chile s Operating Income break down by country (Chilean GAAP) Table 9 Million Ch$ Thousand US$ 1Q 00 1Q 01 1Q 00 1Q 01 Chg % Operating Revenues 223,223 229,538 375,183 385,798 2.8% Energy sales Chocon 8,811 12,483 14,809 20,981 41.7% Costanera 69,124 37,075 116,181 62,313 (46.4%) Betania - Emgesa 37,211 53,923 62,543 90,632 44.9% Cachoeira 12,606 12,626 21,187 21,222 0.2% Edegel 18,783 22,616 31,569 38,012 20.4% Chile 65,657 81,008 110,353 136,155 23.4% Other revenues 11,032 9,806 18,542 16,482 (11.1%) Operating Expenses 138,059 144,724 232,044 243,245 4.8% Chocon 6,674 8,521 11,218 14,322 27.7% Costanera 46,854 29,806 78,751 50,097 (36.4%) Betania - Emgesa 22,292 27,507 37,468 46,233 23.4% Cachoeira 5,078 6,028 8,536 10,132 18.7% Edegel 5,500 7,417 9,245 12,465 34.8% Chile 51,660 65,444 86,828 109,996 26.7% Operating Margin 85,164 84,814 143,140 142,552-0.4% SG&A 9,796 7,146 16,465 12,011 (27.1%) Chocon 188 232 316 390 23.5% Costanera 2,268 806 3,811 1,355 (64.5%) Betania - Emgesa 1,001 950 1,682 1,597 (5.1%) Cachoeira 501 501 842 842 0.0% Edegel 611 1,192 1,026 2,003 95.2% Chile 5,229 3,465 8,788 5,824 (33.7%) Operating Income 75,368 77,669 126,675 130,543 3.1% 16

Endesa Chile s Ownership Structure, as of March 31, 2001 Total Shareholders : 33,255. Total Shares Outstanding: 8,201,754,580 Figure 1 Others 8.05% Individuals 8.51% Chilean Pension Funds 13.29% ADR's 10.18% Enersis 59.98% 17

Conference Call Invitation Endesa Chile is pleased to inform you that it will conduct a conference call to review its results for First Quarter 2001, on Friday, May 4, 2001, at 10 am (New York time). To participate, please call please dial (719) 457-2645 10 minutes prior to the call. A replay of the call will be made available one hour after the end of the live call. To access the replay, please dial (719) 457-0820 with PASSCODE: 408204. A live webcast of the conference call will also be available at the Company s website: www.endesa.cl. This Press Release contains statements that constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Endesa Chile and its management with respect to, among other things: (1) Endesa Chile s business plans; (2) Endesa Chile s cost-reduction plans; (3) trends affecting Endesa Chile s financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Endesa Chile s or its affiliates. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Endesa Chile s Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of their dates. Endesa Chile undertakes no obligation to release publicly the result of any revisions to these forward looking 18

SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 6-k REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of May, 2001 EMPRESA NACIONAL DE ELECTRICIDAD S.A. NATIONAL ELECTRICITY COMPANY OF CHILE INC. (Translation of Registrant's Name into English) Santa Rosa 76, Santiago, Chile ((562) 6309000) (Address of Principal Executive Offices) (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.) Yes X No (Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the commission pursuant to Rule 12g3-2 (b) under the Securities Exchange Act of 1934.) Yes No X

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. EMPRESA NACIONAL DE ELECTRICIDAD S.A. By: Mario Valcarce Durán Chief Financial Officer Date: May 2, 2001