Energy Alert – July 2020

Draft legislation – Amendment of the electrical regulatory framework

On July 18, Ministerial Resolution No. 175-2020-MINEM/DM was published in the Official Gazette «El Peruano», authorizing the pre-publication of the draft «Supreme Decree amending various provisions of the Electricity Subsector» (“the Draft»).

The Draft aims to amend various regulatory standards in the electricity sector, including:

• Regulation of the Electric Concessions Act: concession expiration procedure, regulation of “exceptional situation”, criteria for determining firm power, among others.
• Free Users Regulation: change of user status and oversight by OSINERGMIN.
• Regulation of the Renewable Energy Act: regulation applicable mainly to geothermal energy.
• Cogeneration Regulation: treatment of a qualified cogeneration plant without associated useful heat production.
• Transmission Regulations: binding drafts of the Transmission Plan.
• Reliability measures to the system (Supreme Decree No. 044-2014-EM): implementation of temporary measures.
• Tender Regulation: regulation on tenders less than 3 years in advance.

COES and OSINERGMIN shall draw up and adopt the relevant procedures.

Interested parties may send their comments and suggestions up to 30 working days from the publication of the Draft by electronic mail, with attention to the General Directorate of Electricity, to gcoello@minem.gob.pe. The Draft, including its Statement of Motives, may be reviewed at the following link.

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