CLOSE

LAWYERS

SEARCH BY ALPHABETICAL ORDER

SEE ALL LAWYERS
CLOSE

PRACTICE AREAS

Transport and Communications Alert – March 2019

ALERT – TRANSPORT

PUBLICATION FOR COMMENTS OF PROJECT OF GENERAL REGULATIONS FOR SUPERVISORY BOARD FOR INVESTMENT IN PUBLIC TRANSPORT INFRASTRUCTURE (OSITRAN) RATES

On February 28, 2019, Resolution 0009-2019-CD-OSITRAN was published in El Peruano Official Gazette, where the publication for comments of the project of General Regulations for Rates of the Supervisory Board for Investment in Public Transport Infrastructure – OSITRAN (“RETA”) was authorized, as well as their corresponding Exhibits and Statement of Reasons.

The resolution grants a term of twenty (20) business days from its publication for the interested parties to submit comments or suggestions to the project, whether in writing or by e-mail sent to info@ositran.gob.pe.

Below are the main modifications contained in the project:

– It proposes to adjust the purpose and scope of the RETA, including expressly that it contemplates rate-related provisions, including rate readjustment, as well as provisions for application of discounts or special offers that are supplied by the provider entities as part of their commercial policies.

– It incorporates definitions of the terms “Price,” “Surcharge,” “User” and “Intermediate User.” Furthermore, it proposes to modify the definitions of the terms “Rate” and “End User.”

– Regarding the minimum content of the requests for commencement of the rate procedures, the requirement to submit the power of attorney of the legal representative of the provider entity and submit other information that could be necessary depending on the methodology used to prepare the rate proposal is eliminated.

– It proposes to develop the procedure for rate deregulation in a chapter different from that of the procedures for rate setting and review.

– It formulates that to determine the existence of competition conditions in the provision of a service, the relevant market, where such service is provided, should be defined previously.

– It incorporates provisions related to the Rate and Price Regulations of the provider entities with the obligation to have such document under their concession contract. In that regard, mainly: (i) it has minimum information that such regulations must contain; (ii) it establishes that port entities should submit their regulations in the term established in their concession contract or, otherwise, not later one (1) day after their application; and (iii) it stipulates that the modifications to these regulations should be communicated to OSITRAN not later than one (1) day before the application of the modification.

– It proposes that the anticipated regulation for rate procedures initiated officially, which refers to not being able to modify the original proposal or propose alternative methodologies to the one submitted at the beginning of the procedure once the rate proposal is published, is also applicable to the procedures initiated at the request of a party.

– It establishes the rules for rounding up of decimal figures when calculating rates, which will be applied by extension to the respective concession contracts.

– It proposes to eliminate the requirement that the resolution to initiate the rate setting or review procedure must specify the methodology that will be used during the procedure.

– Regarding the rate review mechanism by price-cap regulation or “RPI-X,” the details of the aspects related to formulas applicable to rate review by the productivity factor and the service cost methodology will be removed from Exhibit 2 to the RETA.

– It will reduce the term for the effectiveness of discounts and special offers that are applied by provider entities to a term of five (5) days from when they are communicated to OSITRAN and published for the information of users. In the case of prices, it proposes that they can become effective on the same day when they are communicated to the regulator and are published for the information of users.

– Within the framework of the verification work by the Management of Regulation and Economic Studies, it would specify that such management may make observations to the rate schedule of the Provider Entity before it becomes effective or thereafter.

– It proposes to eliminate the obligation to publish modifications to the rate schedule in widely-circulated newspapers, maintaining the obligation that the entities publish the rate schedule and its modifications on their website, commercial offices and facilities, as well as in the collection offices located in their infrastructure locations.

– It formulates that the surcharges charged by the provider entities and conditions for their application are incorporated in their respective rate schedules and are informed to the users ten (10) days before they become effective.

For more information, please contact Verónica Sattler (vsattler@estudiorodrigo.com) and/or Alejandro Manayalle (amanayalle@estudiorodrigo.com).