There is a conflict due to the determination of the electricity distribution by: Csar Gutirrez

There is a conflict due to the determination of the electricity distribution by: Csar Gutirrez

The solution must be issued by Osinergmin within 30 days.

The sidereal deviation between the proposal of the companies Enel Generation
Per SAA and Luz del Sur SAA, with the published by the regulator Osinergmin, for the
determination of the electricity distribution tariffs for the period
2018-2022, known as Value Added Distribution (VAD),
provides for a conflict of proportions, such as that experienced in the year 1997 that ends
in an administrative dispute with a civil court in Lima of which the subject was
extensive medical commitment, since it only takes place three years later
privatized the distribution in Lima and Callao.

On this occasion it is very likely that it will end in an arbitration in the
International Center for Settlement of Investment Disputes (ICSID)
where we have been included in the frequent visitor category in recent years
for the inconvenient handling of officials and rulers.


The VAD, that is the income that is received by distributor
calculates in three levels: medium voltage (MT), low voltage (BT) and substations.
The first applies to large industrial or commercial consumers
consumption, as is the case with large shopping centers.

The second level corresponds to medium-sized industrial and commercial users and
small, including the home sector. The level of calls
substations correspond to the centers where the stress level is reduced
from MT to BT.

In the case of Enel, the publication of the regulator dropped by 23% in MT, 33%
in BT and 22% in substations compared to the proposal of the multinational
Italian. To Luz del Sur, from the American capitals, things did not go better, because they did
published values ​​that are lower than those raised in 45% in MT, 40% in BT and
18% in substations.

In addition, as the sword of Damocles, the institution of the value of the
money in the time that, in economic terminology, is known as the price of
discount, and that in the Peruvian electricity legislation rate is mentioned
of update, which could be reduced from the current 12% to 10%.

The reason has been arranged and the report is commissioned by Osinergmin
consultant, as required by the regulations, is already done and the file is in the
Reception of the minister Francisco begs for the signature. From the stamping of the
At the factory, the values ​​calculated by Osinergmin drop by a further 14%,
make a hecatomb. This is a subject for a next article.

You have to be very careful to fall into demagogy, as it is
current things, this can mean a decrease in the bills of the
industrial customers between 2% and 18% and in the case of domicile
between 5% and 20%. The difference between the margins is between having a speed of
update if the current 12% or reduced to 10%.

The topic discussed in this article is the relevance of the proposal
regulation of the Osinergmin which will be the next 16 of the next resolution
October and of mandatory application from the day of all saints, that
it can be a premonitory for private investment.


Since 2015, the conditions have been created to achieve this seriously
the discrepancy of today. It starts with the Legislative Decree (DL) 1221
(24.09.2015), in the name of promoting access to electrical energy,
change various articles of DL 25844 (Electricity Concessions Law).

One of the most striking is the calculation by the company, before it was before
group of companies (Article 66); integration of technological innovation
(Article 66); the calculation horizon at 25 years (Article 70); adjustments by
incentive for quality (Article 72) and extension of the deadline for the Regulation
of the VAD in 2017 (second additional provision)
transient nature).

From the beginning there must have been concerns about how
these changes in the calculations to avoid discussions about discretion,
as there are now.

Later and as always in the changes of the government, to four
When the disastrous PPKausism came to power, the Supreme Decree was issued
(DS) -018-2016-EM, which introduces a series of appearance modifications
regulatory, culinary, a normative combo.

What are the most important ?: Criteria for VAD calculations (article
146), calculation of verification of internal profitability (Article 149), life
meters and replacement by intelligent systems (Article 163).

Similarly, new regulatory issues were included: technological innovation
(Article 144.a); valuation of the remaining infrastructure (Article 144.c),
breaches of security distances (Article 177.a). It also
they incorporated a series of additional adjustments.

All changes mentioned are relevant in the calculation of the VAD and,
once again, the lack of openness for public debate about the possibilities of
discretion. Deferred discussion that today passes the invoices to companies.

Possibilities for change in a sparse political environment

The confrontation that the government has initiated and has continued uncomfortably
inevitable correlation in economic performance. The president has warned
of the Central Reserve Bank (BCR), Julio Velarde and Roque Benavides,
president of the guild of business associations, Confiep. A confrontation in one
intensive investment sector such as electricity will get us
huge damage.

A possible way out to calm the thermopalous from both sides
the extension of the duration of this VAD regulation. You must remember that the DL
1221 opened the possibility to extend the term to two years, which
will expire in October 2019.

The term of 2018 which relates to the discussion between Enel, Luz del Sur and the
Distributor of the Ica region, Electrodunas, is based on the resolution
Ministerial (RM-530-2016-MEM / DM of 21.12.2016) showing that by report of
Osinergmin (report N 0700-2016-GRT) was established as a limit in October 2018
for the companies mentioned, and for October 2019 with respect to the companies
State in the field of Fonafe.

Motivations exist and it is up to the board of Osinergmin to
decision, so more confrontation in the context in which we live
acting as liquidator of the private interest in the sector.

to express

Published on Monday, September 17, 2018

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