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Oil & Gas Alert – September 2023

ALERT – OIL AND GAS

Application of the Promotion Mechanism set forth in the Natural Gas Distribution Regulations for the connection of residential consumers in the middle, lower middle and lower socioeconomic strata according to the Stratified Plan at block level by household per capita income, developed by INEI, and enact other provisions

 

By means of Ministerial Resolution N° 352-2023-MINEM/DM (“Resolution”), published on September 9, 2023 in the Official Gazette “El Peruano”, the application of the Promotion Mechanism regulated in Article 112a of the Sole Ordered Text of the Natural Gas Distribution Regulations by Duct Network was ordered, approved by Supreme Decree N° 040-2008-EM, (“Mechanism”) to the connection of residential consumers of the middle, lower middle and low socioeconomic levels according to the Stratified Plan at block level by household per capita income developed by the National Institute of Statistics and Informatics – INEI.

As established in Article 112a, the promotion for the connection of residential consumers will apply to certain geographical areas located in the concession, or for certain socioeconomic levels, as established by the Ministry of Energy and Mines. Such promotion will cover at most the cost of the connection, i.e., the connection fee and the cost of the connection of a typical residence.

On the other hand, the Resolution: (i) modified some criteria for the determination of the application of the Mechanism, in order to achieve a greater social impact in the areas where natural gas massification projects are developed, and (ii) provided that, notwithstanding their socioeconomic level, the Mechanism is applied to all residential consumers in the regions of Apurímac, Ayacucho, Cusco, Huancavelica, Junín, Puno and Ucayali included in the Universal Energy Access Plan 2023-2027, approved by Ministerial Resolution N° 053-2023-MINEM/DM, which to date do not have access to the distribution service.

This, in order to achieve the greatest social impact in the areas where natural gas massification projects are developed.

For further information, please contact Jorge Pérez-Taiman (jpereztaiman@estudiorodrigo.com), Carolina Noriega (cnoriega@estudiorodrigo.com), Piero Scarafone (pscarafone@estudiorodrigo.com).