Energy Alert - October 2026
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Temporary Non-Application of Certain Quality Standards and Compensation Rules for Electricity Sector Interruptions Is Ordered in Response to Impacts Caused by the 2026-2027 El Niño Phenomenon
On October 16, 2026, Supreme Decree No. 020-2026-EM (“DS 020-2026”), was published, providing for the temporary non-application of certain provisions of the Technical Standard for the Quality of Electricity Services (“NTCSE”), the Technical Standard for the Quality of Rural Electricity Services (“NTCSER”), and Article 168 of the Regulation of the Electricity Concessions Law (“RLCE”), with respect to breaches of quality parameters and compensation for supply interruptions caused by damage to electricity infrastructure resulting from events associated with the 2026-2027 El Niño Phenomenon (“FEN 2026-2027").
The purpose of DS 020-2026 is to prioritize the recovery, rehabilitation, and restoration of electricity infrastructure affected by events associated with the FEN 2026-2027, and to help restore the continuity of the public electricity service. In particular, this decree provides the following:
- Temporary non-application of obligations relating to quality and compensation: The temporary non-application is ordered of the provisions of the NTCSE and the NTCSER concerning breaches of quality parameters, as well as the provisions of Article 168 of the RLCE concerning compensation for electricity supply interruptions, where such impacts result from events associated with the FEN 2026-2027.
- Conditions for availing of the exceptional regime: Temporary non-application applies only where the following conditions are met concurrently: (i) the damage to the electricity infrastructure occurs in the geographic areas covered by States of Emergency declared in connection with the FEN 2026-2027; (ii) the damage is a direct result of events associated with that phenomenon and gives rise to service interruptions or breaches of quality parameters; and (iii) the damage is not attributable to the concessionaire or the owner of the facility.
- Obligations that remain in force: Temporary non-application does not release owners or concessionaires from compliance with their obligations relating to the safety of persons and facilities, the safe operation of electricity systems, the handling of emergencies, or the performance of the actions necessary for the recovery and restoration of the service.
- Procedure and duration of the temporary non-application: The non-application takes effect from the date and time on which the damage to the electricity infrastructure begins and remains in place until the operating conditions that allow the service to be provided under normal conditions are restored. To avail of this regime, companies must notify OSINERGMIN, with a copy to MINEM’s General Directorate of Electricity, of the onset of the damage within 24 hours of the occurrence of the event. OSINERGMIN will subsequently verify compliance with the conditions set forth in the decree in order to determine whether the temporary non-application is warranted. Once normal service conditions have been restored, this must be reported to OSINERGMIN.
- Implementation measures: Finally, the decree establishes that OSINERGMIN and COES must approve, within twenty (20) business days following the entry into force of DS 020-2026, the provisions necessary for its implementation and enforcement, as applicable.