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| **  ****  REGISTRATION STATEMENT PURSUANT TO    SECTION 12(b) OR 12(g) OF THE** |
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| **THE SECURITIES EXCHANGE ACT OF 1934**                                                             |
| **OR**                                                                                              |
| **  ****  ANNUAL REPORT PURSUANT TO SECTION 13 OR    15(d) OF THE**             |
| **SECURITIES EXCHANGE ACT OF 1934**                                                                 |
| **For the fiscal year ended December 31, 2002**                                                     |
| **OR**                                                                                              |
| **  ****  TRANSITION REPORT PURSUANT TO SECTION 13    OR 15(d) OF THE**         |
| **SECURITIES EXCHANGE ACT OF 1934**                                                                 |
| **For the transition period from __________    to __________**                                      |
| **Commission file number 1-13240**                                                                  |

| **EMPRESA    NACIONAL DE ELECTRICIDAD S.A.**                                           |
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| (Exact name of Registrant as specified in its charter)                                 |
|                                                                                   |   |   |
| **NATIONAL ELECTRICITY COMPANY OF CHILE, INC.**                                        |   | **CHILE** |
| (Translation    of Registrant’s name into English)                                |   | (Jurisdiction    of incorporation or organization) |
|                                                                                   |   |   |
| **Santa Rosa 76, Santiago, Chile**                                                     |
| **Telephone No. (562) 630-9000**                                                       |
| (Address of principal executive offices)                                               |
|                                                                                   |
| **Securities registered or to be registered pursuant to Section 12(b)    of the Act:** |
|                                                                                   |
| **Title of Each Class**                                                                |   | **Name of each exchange on which registered** |
| American Depositary Shares                                                             |   | New York Stock Exchange |
| Shares                                                                                 |   | New York Stock Exchange* |

| US$150,000,000 | 7.200% | Notes due 2006 |
|----------------|--------|----------------|
| US$230,000,000 | 7.875% | Notes due 2027 |
| US$220,000,000 | 7.325% | Notes due 2037 |
| US$200,000,000 | 8.125% | Notes due 2097 |
| US$400,000,000 | 7.750% | Notes due 2008 |
| US$400,000,000 | 8.502% | Notes due 2009 |

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|                             | **Page**                                                                        |
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|                             |                                                                                 |
| Introduction                     | 1                                                                               |
| Financial Information            | 1                                                                               |
| Technical Terms                  | 2                                                                               |
| Calculation of Economic Interest | 2                                                                               |
| Forward-Looking Statements       | 2                                                                               |
| Part    I                        |                                                                            |
| Item 1.                          | Identity    of Directors, Senior Management and Advisers                        | 4 |
| Item 2.                          | Offer    Statistics and Expected Timetable                                      | 4 |
| Item 3.                          | Key    Information                                                              | 4 |
| Item 4.                          | Information    on the Company                                                   | 17 |
| Item 5.                          | Operating    and Financial Review and Prospects                                 | 62 |
| Item 6.                          | Directors,    Senior Management and Employees                                   | 83 |
| Item 7.                          | Major    Shareholders and Related Party Transactions                            | 88 |
| Item 8.                          | Financial    Information                                                        | 90 |
| Item 9.                          | The    Offer and Listing.                                                       | 96 |
| Item 10.                         | Additional Information                                                          | 98 |
| Item 11.                         | Quantitative and Qualitative Disclosures    About Market Risk                   | 114 |
| Item 12.                         | Description of Securities Other than Equity    Securities                       | 117 |
| Part II                          |                                                                            |
| Item 13.                         | Defaults, Dividend Arrearages and    Delinquencies                              | 118 |
| Item 14.                         | Material Modifications to the Rights of    Security Holders and Use of Proceeds | 118 |
| Item 15.                         | Controls and Procedures                                                         | 118 |
| Item 16.                         | Reserved                                                                        | 118 |
| Part III                         |                                                                            |
| Item 17.                         | Financial Statements.                                                           | 119 |
| Item 18.                         | Financial Statements.                                                           | 119 |
| Item 19.                         | Exhibits.                                                                       | 119 |

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|  •control,    directly or indirectly, more than a 50% voting interest in such company; or    •nominate or    have the power to nominate a majority of the board of directors of such    company if we control 50% or less of the voting interest of such company. Endesa-Chile  consolidates all its operational Chilean subsidiaries.  In Argentina, Endesa-Chile consolidates the  hydroelectric company *Hidroeléctrica El Chocón S.A.*(“El Chocón”)  and thermoelectric company *Central Costanera S.A* (“Costanera”)*.*  In Colombia, Endesa-Chile consolidates  generation companies*Hidroeléctrica Betania S.A.*(“Betania”)and  *Emgesa  S.A. E.S.P.*(“Emgesa”).   Endesa-Chile also consolidates the hydroelectric company *Centrais  Eléctricas Cachoeira Dourada S.A.* (“Cachoeira Dourada”) in Brazil  and the generation company *Edegel S.A.*(“Edegel”) in Peru.  Due to consolidating adjustments, financial  data reported by us relating to our consolidated subsidiaries may be materially  different from that reported by our consolidated subsidiaries on a stand-alone  basis. **Back to Contents** For the  convenience of the reader, this annual report contains translations of certain  Chilean peso amounts into US dollars at specified rates.  Unless otherwise indicated, the US dollar  equivalent for information in Chilean pesos is based on the Observed Exchange  Rate, as defined in “Item 3. Key Information—A.  Selected Financial Data—Exchange Rates.”  The Federal Reserve Bank of New York does  not report a noon buying rate for Chilean pesos.  No representation is made that the Chilean peso or US dollar  amounts shown in this annual report could have been or could be converted into  US dollars or Chilean pesos, as the case may be, at such rate or at any other  rate.  See “Item 3. Key Information—A.  Selected Financial Data—Exchange Rates.” **Technical  Terms** As used  throughout, references to “GW” and “GWh” are to gigawatts and gigawatt hours,  respectively, references to “MW” and “MWh” are to megawatts and megawatt hours,  respectively, references to “kW” and “kWh” are to kilowatts and kilowatt-hours,  respectively, and references to “kV” are to kilovolts.  Unless otherwise indicated, statistics  provided throughout this annual report with respect to electricity generation  facilities are expressed in MW, in the case of the installed capacity of such  facilities, and in GWh, in the case of the aggregate annual electricity  production of such facilities.  One GW =  1,000 MW, and one MW = 1,000 kW.   Statistics relating to aggregate annual electricity production are  expressed in GWh and are based on a year of 8,760 hours.  Statistics relating to installed capacity  and production of the electricityindustry do not include electricity of  self-generators.  Statistics relating to  our production do not include electricity consumed by us.   Energy losses  are calculated on a rolling twelve month basis by:  •subtracting    the number of GWh of energy sold from the aggregate GWh of energy purchased    and self-generated within a given twelve-month period; and     •calculating    the percentage that the resulting quantity bears to the aggregate number of    GWh of energy purchased and self-generated within the same twelve-month    period. **Calculation  of Economic Interest** References are  made throughout this annual report to the “economic interest” of Endesa-Chile  in its subsidiaries or related companies.   In circumstances where the Company does not own its interest in a  subsidiary or related company directly, the economic interest of Endesa-Chile  in such ultimate subsidiary or related company is calculated by multiplying the  percentage ownership interest of the Company in a directly held subsidiary or  related company by the percentage ownership interest of any entity in the chain  of ownership of such ultimate subsidiary or related company.  For example, if Endesa-Chile owns 60% of a  directly held subsidiary and that subsidiary owns 40% of a related company,  Endesa-Chile’s economic ownership interest in such related company would be  24%. Enersis S.A.  (“Enersis”), a holding company engaged in generation, transmission and  distribution of electricity in Chile, Argentina, Brazil, Colombia and Peru,  beneficially owned as of the date of this annual report, directly or  indirectly, 60% of Endesa Chile’s outstanding capital stock.   **Forward-Looking  Statements** This annual  report contains statements that are or may constitute forward-looking  statements.  These statements appear  throughout this annual report and include statements regarding our intent,  belief or current expectations, including but not limited to any statements  concerning:   •our capital    investment program;    •our    Financial and Economic Strengthening Plan;    •trends    affecting our financial condition or results of operations;    •our dividend    policy;    •the future    impact of competition and regulation; 2**Back to Contents**  •political    and economic conditions in the countries in which we or our related companies    operate or may operate in the future;    •any    statements preceded by, followed by or that include the words “believes,”    “expects,” “predicts,” “anticipates,” “intends,” “estimates,” “should,” “may”    or similar expressions; and     •other    statements contained or incorporated by reference in this annual report    regarding matters that are not historical facts.  Because such  statements are subject to risks and uncertainties, actual results may differ  materially from those expressed or implied by such forward-looking  statements.  Factors that could cause  actual results to differ materially include, but are not limited to:  •our ability    to implement proposed capital expenditures, including our ability to arrange    financing where required;    •the nature    and extent of future competition in our principal markets;    •political,    economic and demographic developments in the emerging market countries of    Latin America where we conduct a large portion of our business; and    •the factors    discussed below under “Risk Factors.” You should not  place undue reliance on such statements, which speak only as of the date that  they were made.  Our independent public  accountants have not examined or compiled the forward-looking statements, and,  accordingly, do not provide any assurance with respect to such statements.  You should consider these cautionary statements  together with any written or oral forward-looking statements that we may issue  in the future.  We do not undertake any  obligation to release publicly any revisions to forward-looking statements  contained in this annual report to reflect later events or circumstances or to  reflect the occurrence of unanticipated events. For all these  forward-looking statements, we claim the protection of the safe harbor for  forward-looking statements contained in the Private Securities Litigation  Reform Act of 1995. 3**Back to Contents** **PART  I** **Item 1.****Identity of Directors, Senior Management and Advisers** Not  applicable. **Item 2.****Offer Statistics and Expected Timetable** Not  applicable. **Item 3.****Key Information** **A.****Selected financial data.** The following  summary of consolidated selected financial and operating data should be read in  conjunction with, and is qualified in its entirety by reference to, the  Company’s audited consolidated financial statements, included elsewhere in this  annual report.  The audited consolidated  financial statements are prepared in accordance with Chilean GAAP and the rules  of the SVS, which together differ in certain important respects from US  GAAP.  Note 34 to the audited  consolidated financial statements provides a description of the principal differences  between Chilean GAAP and US GAAP and a reconciliation to US GAAP of net income  and total shareholders’ equity for the periods and as of the dates therein  indicated.  Financial data as of or for  each of the five years ended December 31, 2002 in the following table have been  restated in constant Chilean pesos as of December 31, 2002. All data,  except ratios and operating data, are in millions.  For the convenience of the reader, this annual report contains  translations of certain Chilean peso amounts into US dollars at specified  rates.  Unless otherwise indicated, the  US dollar equivalent for information in Chilean pesos is based on the Observed  Exchange Rate.  The Observed Exchange  Rate reported by the Central Bank for December 31, 2002 was Ch$718.61 per  US$1.00.  Similarly, all data presented  in US dollars, as of for the year ended December 31, 2002 are translated at the  Observed Exchange Rate of Ch$718.61 per US$1.00.  The Federal Reserve Bank of New York does not report a noon  buying rate for Chilean pesos.  No  representation is made that the Chilean peso or US dollar amounts shown in this  annual report could have been or could be converted into US dollars or Chilean  pesos, at such rate or at any other rate. For more information concerning historical exchange rates, see  “—Exchange Rates” below. In 2000, we  sold our electricity transmission company, Transelec, and as a result this  company ceased to be reflected in our financial statements as of and for the  year ended December 31, 2000.  Our other  principal operating subsidiaries we consolidated prior to 1998.  All companies have been consolidated  according to Chilean GAAP. The  information detailed in the following table includes changes in certain  accounting policies for the five years ended and as of December 31, 2002, which  affect the comparability presented below. Beginning January 1, 2000, the  Company adopted new accounting policies concerning the accounting for deferred  taxes in accordance with a new Chilean accounting system.  See “Item 5. Operating and Financial Review  and Prospects—Critical Accounting Policies—Income and Deferred Taxes.” 4**Back to Contents**   **As of or    for the year ended December 31,**      **1998** **1999** **2000** **2001** **2002** **2002**           **(Restated for general price-level    changes and expressed in millions of constant Ch$ as of    December 31, 2002, except ratios and operating data)** **(millions of US$)(1)** CONSOLIDATED INCOME STATEMENT DATA                   **Chilean GAAP:**                   Revenues from operations  925,845  957,319  937,650  1,045,280  938,099  1,305  Cost of    operations  (550,482) (721,818) (637,296) (662,608) (555,586) (773)Administrative    and selling expenses  (43,225) (49,563) (33,425) (34,696) (36,289) (50)Operating    income  332,139  185,939  266,929  347,976  346,224  482  Equity in    income (losses) of related companies, net  343  1,775  678  (9,947) 8,570  12  Goodwill    amortization  (6,361) (7,008) (7,245) (8,269) (108,562) (151)Interest    (expense) income, net  (156,024) (194,131) (237,484) (216,732) (197,554) (275)Price-level    restatement (2)  (26,936) (92,372) (3,730) (10,167) 3,555  5  Other    non-operating income (expense), net  (7,860) (58,888) 211,705  (2,684) (19,436) (27)Income  before income taxes, minority interest    and  negative goodwill amortization  135,301  (164,687) 230,853  100,177  32,797  46  Income taxes  (29,886) (34,036) (88,484) (39,912) (70,628) (98)Extraordinary    loss  —  —  —  —  (10,930) (15)Minority    interest  (86,054) (34,905) (68,581) (34,016) (46,478) (65)Amortization    of negative goodwill  32,177  37,128  41,137  45,911  85,920  120  Net income    (loss)  51,537  (196,499) 114,925  72,160  (9,319) (13)Net income    (loss) per share  6.10  (23.26) 14.01  8.80  (1.14) — Net income    (loss) per ADS (3)  183.02  (697.81) 420.35  263.94  (34.09) — Dividends    accrued per share (4)  2.33  —  1.01  0.97  —  — Dividends    accrued per ADS in US$(3) (4) (5)  0.12  —  0.04  0.04  —  — Weighted    average shares outstanding (million)  8,202  8,202  8,202  8,202  8,202    **US GAAP:**  |
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