On July 7, 2023, Ministerial Resolution Nº 273-2023-MINEM/DM was published authorizing the publication of the draft “Supreme Decree that establishes the Prioritization Mechanism for the supply of natural gas to ensure the efficient generation of electricity in the SEIN in the event of an Extraordinary Situation” (“Draft Regulation”).
With this Normative Project, the Peruvian State seeks to address the extraordinary situation generated by the water deficit for hydroelectric generation, which caused the operation of diesel power plants and as a result, the increase of the Short-Term Market Marginal Costs. Taking into account that the drought situation may be a recurring event, MINEM has warned of the need to adopt extraordinary measures to ensure the timely and efficient supply of electricity, for which the operation of all available plants in the SEIN that use natural gas must be guaranteed.
Within this framework, the Draft Regulation establishes the rationing or prioritization mechanisms to adopt measures for the supply of natural gas to the domestic market in the event of a declaration of Emergency or Extraordinary Situation; the latter being understood as the affectation of the production of hydroelectric generation due to the decrease of the water resource that hinders or increases the costs of the operation of the SEIN.
Among the aspects regulated by the Draft Regulation are: (i) the conditions, procedure and obligations for the activation of the Prioritization Mechanism; (i) the obligation of the Producers, Concessionaires of Natural Gas Transportation by Ducts or Distributors of Natural Gas by Duct Network and the COES to report daily to OSINERGMIN the information referred to the volumes actually consumed; among others.
Interested parties may submit comments and/or suggestions to this Normative Project until July 17, 2023.
For further information, please contact Veronica Sattler (Vsattler@estudiorodrigo.com), Alejandro Manayalle (amanayalle@estudiorodrigo.com) and/or Margarett Matos (Mmatos@estudiorodrigo.com).
