Joint Seminar on Peruvian Electricity Sector with Energy and Mines Ministry

(Lima, April 21, 2006).- Members of Congress, representatives of the Ministry of Energy and Mines and OSINBERG participated in the COES seminar: INDEPENDENT OPERATOR? organized by the Ministry of Energy and Mines and the Andean Development Corporation (CAF) to present and debate the alternatives for managing the wholesale electricity market.

The topics debated included the Bill to Guarantee the Efficient Development of Electricity Generation, whose main objectives are to reform the Electricity Concession Law, change the structure of COES, which is the body responsible for supervising the development of the sector and proposing the regulated tariffs subject to the final decision by OSINERG, as well as other reforms.

The seminar also dealt with various legislative proposals aimed at establishing the most effective mechanisms for preventing a repeat of the crisis in the electricity system at the end of 2004 caused by the drought.

CAF invited two experts: from Argentina, Juan Luchilo, production and analysis control manager of the wholesale electricity market manager CAMMESA who presented the scheme implemented in his country; and from Colombia Luis Alejandro Camargo, wholesale electricity market manager of the company XM Expertos en Mercados, presented his country’s experience. A third presentation was given by Jaime Guerra, COES operations director, on the structure and functions of the Peruvian electricity wholesale market. The presentations stimulated a rich discussion on the situation of the Peruvian electricity sector and how these experiences offer important lessons for the design of these institutions in Peru.

The event was attended by economist Juan Miguel Cayo, Vice Minister of Energy of the Ministry of Energy and Mines, who gave the welcoming remarks and explained the aspects that have to be resolved in the legislation to improve the levels of efficiency, quality and reliability of the electricity supply for users. He emphasized the institutional factors that affect the wholesale market and the working of the COES market manager.

With this technical cooperation grant, CAF confirms its support for strengthening institutions and contributes to making the regulatory processes, in this and other productive sectors, more transparent in benefit of all the actors involved: State, private sector and users.