Energy Alert – September 2020

Two draft amendments are published for COES technical procedures 20 and 25

On Wednesday, September 23, 2020, the Resolutions of the Board of Directors of OSINERGMIN No. 152-2020-OS/CD and No. 153-2020-OS/CD were published in the Official Gazette “El Peruano”, by which it is arranged to publish on the OSINERGMIN Website the draft resolutions by which the Technical Procedures of the COES No. 20 “Entrance, Amendment and Removal of Facilities in the SEIN” (hereinafter “PR-20″) and No. 25 “Determination of the Unavailability, Presence and Incentive Factors to the Availability of Power Plants and Generation Units” (hereinafter “PR-25″) are amended.

I. ON AMENDMENTS TO THE PR-20

The proposed amendments to the PR-20 may be summarized as follows:

• Complete amendment from numeral 1 to 16 and from Annex No. 2 to No. 7. Only Annex No. 1 of the PR-20 shall remain in force.
• Amendments to the Purpose of the Procedure. First, it is proposed that the PR-20 determines only the requirements and processes to be followed for the integration, amendment or removal of electrical facilities from the SEIN. Second, it is proposed that this procedure establishes the conditions for approval of the suspension, in addition to the initiation and termination of the commercial operation of units.

The Scope of the Procedure is extended to the Transmission Systems whose facilities are limited to those that serve exclusively Free Users and/or Distribution Companies; to the Generation Plants; to the demand of Free Users; to the relevant increases of existing demand of Free Users connected to the previously indicated Transmission Systems; to the Generation Plants and free Users’ demand with power equal or higher than 20 MW; to the RER Generation Plants with power lower than 20 MW; and, to the distributor’s Complementary Transmission Systems (SCT) facilities when determined by the COES.  The new electrical facilities not considered shall not be subject to the PR-20 Procedure as long as the COES validates that they do not affect the facilities of other Agents.

• The Certificate of Integration of Transmission Facilities in the SEIN is eliminated as a product of the PR-20 Procedure. The definitions of Technical File, Project Manager, Coordinate Protections and Non- Coordinate Protections are added.
• The Obligations of the COES, the Third Parties Involved and the Owners of Facilities and/or Project Managers are specified, and in the case of the latter, the obligation to inform the COES about the occurrence of the causes for the termination of the EPO Certificate of Compliance is added; any situation that causes the unavailability of the facilities (including force majeure requests); and, about the initiation of a procedure for the waiver or expiration of the concession or cancellation of the authorization of any of its facilities connected to the SEIN.
• The Procedure for the Compliance of the Pre-Operativity Study (numeral 9) is specified and reformulated; the Procedure for the Compliance of the Operativity Study (numeral 10). The Procedure for the Compliance of the Integration of Facilities to SEIN (numeral 11) is established in a very detailed way instead of the Connection of Facilities to SEIN.
• The Commercial Operation is required, since the Procedure for granting the Compliance for the Start of Commercial Operation of Generation Units or Plants is established (numeral 12). The Integration and the conclusion are joined in a single procedure, as well as the Commercial Operation is added (numeral 13).
• The Procedure to grant the compliance of the removal of facilities from the SEIN is specified (numeral 14). The Provisions associated to the Transmission Regulations are omitted and seven (7) Complementary Provisions and three (3) Transitory Provisions are established.

II. ON AMENDMENTS TO THE PR-25

The proposed amendments to the PR-25 may be summarized as follows:

• A distinction is made between the obligations of Plants or Generation Units that operate with natural gas and those that have the possibility of storing natural gas.
• The general considerations for the determination of partial and total unavailability of the Plants or Generation Units are specified, providing that any Generation Unit that is reconverted to be of the dual type (also operate with an alternative fuel) shall not be considered as a unit that lacks history.
• The Procedure to determine the hours of partial unavailability is amended, so that some formulas are changed and clarifications are made with respect to the values that these comprise.
• The Procedure to determine the Insured Power for Electric Transportation and Insured Power for Fuel Transportation is established, in which a formula is required to calculate the Insured Power for Electric Transportation and a different one to calculate the Insured Power for Fuel Transportation (Appendix E).
• The formula to calculate the Incentive Factor for the Availability of the Generation Units is amended, since the Insured Power of the day, the effective Power, the Insured Power for Fuel Transportation and for Electric Transportation of the day are included in this calculation.
• Finally, a Final Provision is added which provides that failure to comply with the obligations set forth in this procedure must be informed to OSINERGMIN in order to initiate the corresponding Administrative Penalty Procedure.

Finally, we must point out that both draft resolutions that provide for the amendment of Technical Procedures PR-20 and PR-25 have a period of forty-five (45) calendar days, from the day of their publication, for those interested to submit comments, opinions and/or suggestions in writing to the OSINERGMIN Tariff Regulation Management.

For further information, please contact Verónica Sattler (vsattler@estudiorodrigo.com); Alejandro Manayalle (amanayalle@estudiorodrigo.com); Eduardo Ramos (eramos@estudiorodrigo.com) and Álvaro Klauer (aklauer@estudiorodrigo.com)