Electricity bills in that country are among the highest in Latin America, warns the Ministry of Energy and Mines.
The legal initiative that will seek to increase competition between actors in the Peruvian electricity market, which is already in Congress, promotes greater investment in new sources of electricity generation, which will benefit the economy of 34 million Peruvians, businesses and small industries, said the Ministry of Energy and Mines (Minem).
The Ministry of Energy and Mines (Minem) reiterated the need for Congress to approve the bill that modifies Law No. 28832 to ensure the efficient development of Electric Generation, and seeks to promote greater competition in the supply of energy for electricity supply and the diversification of the electrical matrix, promoting greater investments in non-conventional renewable energies.
He pointed out that as a result of competitive bidding processes involving all existing generation technologies (hydro, natural gas, solar, wind and others), better generation prices will be obtained in the future and thus an increase in electricity rates, which are among the highest in Latin America, will be avoided.
According to the technical assessment by the Energy and Mining Investment Supervisory Agency (Osinergmin), if this initiative is not approved, the price at the generation level will increase progressively in the coming years, because cheap generation is reaching its limit, negatively impacting a 20% increase in the rates paid by the country's 34 million inhabitants, businesses and small industries.
Minem points out that this project promotes predictability and transparency, because it establishes that distribution companies will annually publish the schedule of their electricity supply bidding processes for regulated users (population), which will indicate the amounts of power and/or energy they need and the duration of the supply.
The initiative also promotes the construction of new power generation plants, which will ensure the timely supply of energy to users at competitive prices, since, currently, the capacity of the available low-cost power generation plants has reached its limit and those that use diesel fuel, which are more expensive and polluting, are being used more frequently.
With the approval of this bill, Minem maintains that it will attract national and foreign private investments in wind and solar energy projects, resulting in greater productivity, technological transfer, a source of jobs (at a technical and specialized level) and income for the regions.
