Regulatory Alert - January 2026
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NEW REGULATORY PROPOSAL FROM THE MINISTRY OF ENERGY AND MINES (MINEM) ON VERTICAL INTEGRATION IN THE ELECTRICITY MARKET
On January 24, 2026, Ministerial Resolution No. 025-2026-MINEM/DM was published in the Official Gazette El Peruano. This resolution presents the Draft Supreme Decree that defines the conditions for evaluating cases of vertical integration as outlined in the third paragraph of Article 122 of the Electricity Concessions Law (“Draft”), along with its Statement of Reasons.
The Draft addresses instances of vertical integration in the electricity subsector that do not constitute acts of business concentration under Law No. 31112, but which nonetheless requires sectoral evaluation by MINEM to verify potential risks to access, competition, and the efficient operation of the electricity market.
The following are some of the key aspects of the Draft:
- It applies to all applications for electricity rights submitted to the Ministry of Energy and Mines (MINEM) for activities within the National Interconnected Electric System (SEIN), excluding those under regional jurisdiction.
- The vertical integration cases subject to the provisions of the Draft include the following scenarios:
- When a generator and/or companies belonging to the same economic group apply for a definitive transmission concession to operate facilities of the Main Transmission System (SPT) or Guaranteed Transmission System (SGT).
- When a generator and/or companies belonging to the same economic group apply for a definitive distribution concession.
- When a transmission company operating SPT or SGT facilities and/or companies belonging to the same economic group apply for a definitive generation concession or authorization.
- When a transmission company operating SPT or SGT facilities and/or companies belonging to the same economic group apply for a definitive distribution concession.
- When a distribution company and/or companies belonging to the same economic group apply for a definitive transmission concession to operate SPT or SGT facilities.
- When a distributor and/or companies that are part of the same economic group, process a definitive concession or generation authorization.
- The evaluation is integrated into the technical and regulatory evaluation stipulated in Articles 52 or 67 of the LCE Regulations.
- A 30% participation threshold is established for integration cases:
- If the 30% threshold is not exceeded in either activity: the process continues as normal.
- If the 30% threshold is exceeded in one or both activities: MINEM continues the process but forwards the information to INDECOPI for their review.
The deadline for submitting comments on the Draft is February 8, 2026.