Public Services Alert – January 2020

Approval of regulatory contribution rates of OSINERGMIN for the Period 2020-2022

Through Supreme Decree N° 199-2019-PCM and Supreme Decree N° 200-2019-PCM published in the Official Gazette “El Peruano” the regulatory contribution rates of the Supervisory Board for Investment in Energy and Mining (“OSINERGMIN”) for the Period 2020-2022 were approved.

The main aspects of the abovementioned regulations are described below:

1. Regulatory contributions from companies and entities of the Energy Sector.-

• Electricity Subsector: The Regulatory Contribution from energy generation, transmission and distribution concessionaires and companies that exclusively carry out authorized energy generation activities will be calculated on the basis of their monthly invoicing value entered in the Register of Sales and Income corresponding to the operations with third parties and directly related to the regulated, supervised or controlled activity, after deducting the General Sales Tax (“IGV”) and the Municipal Tax (“IPM”) and applying the percentages shown in the historical comparison chart below for the Period 2020-2022:

• Hydrocarbon Subsector:

(i )The regulatory contribution from the Hydrocarbon Subsector companies and entities that carry out fuel import and/or production activities, including liquefied petroleum gases and natural gas, will be calculated on the basis of the monthly invoicing value entered in the Register of Sales and Income, after deducting the IGV and IPM and applying the percentages shown in the historical comparison chart below for the Period 2020-2022:

(ii) The regulatory contribution from Hydrocarbon Subsector companies and entities, and concessionaires in charge of the transportation of hydrocarbons through pipelines and distribution of natural gas through pipeline networks, is calculated on the basis of the monthly invoicing value entered in the Register of Sales and Income, corresponding to the goods and services related to the concession, after deducting the IGV and IPM and applying the percentages shown in the historical comparison chart below for the Period 2020-2022:

2. Regulatory contributions from companies and entities of the Mining Sector.- The regulatory contribution will be calculated on the basis of the monthly invoicing value entered in the Register of Sales and Income, corresponding to the activities directly related to the supervisory and control scope of OSINERGMIN, deducting the IGV and IPM and applying a percentage of 14% for the Period 2020-2022.

Thus, the following historical variation has occurred: