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FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of September, 2007

Commission File Number: 001-13240

Empresa Nacional de Electricidad S.A.

National Electricity Co of Chile Inc

(Translation of Registrant’s Name into English)

Santa Rosa 76
Santiago, Chile
(562) 6309000

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  [X]   Form 40-F  [   ]

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes    [  ]      No    [X]

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes    [  ]      No    [X]

Indicate by check mark whether by furnishing the information
contained in this Form, the Registrant 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]

If “Yes” is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): N/A



 

September 10, 2007

Mr Guillermo Larraín R.
Superintendent of Securities and Insurance
Santiago

 

  ESSENTIAL FACT

 

Dear Sir,

      In accordance with clauses 9 and 10 of the Securities Market Law 18,045 and General Rule No.30 of the Superintendency, I advise you the following as material information:

     On Friday, September 7, 2007, the Arbitration Tribunal of the International Chamber of Commerce, hearing the proceedings brought by Endesa Chile against YPF S.A. for damages caused by non-compliance with the natural-gas supply contract signed between the parties for the Tal Tal plant located in Chile’s 2nd Region, deriving from the lack of an export permit for its second unit, was informed of the agreement reached by the parties to terminate these proceedings.

     This was the result of the current natural-gas supply contract for that plant having been amended and such amendment having been approved by the Argentine regulatory authority.

Yours sincerely,

    Rafael Mateo Alcalá
  Chief Executive Officer

SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, 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:    /s/ RAFAEL MATEO A.  
     
   
     
  Rafael Mateo A.
           
      Chief Executive Officer    
           
           
           
Dated: September 10, 2007          
     
   

 

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.