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ENGLISH VERSION

On 9 April, Ministerial Resolution No. 127-2025-MINEM/DM was published. It provides for the publication of the draft "Supreme Decree approving the Regulations on Electricity Contracting for the Supply of Regulated Users" ("Draft Regulations").

The main provisions of the Draft Regulations are as follows:

1. Scope

  • The Draft Regulations apply to supply contracts entered into between generators and distributors for supplying electricity to regulated users, both in the National Interconnected Electric System (SEIN) and in isolated systems.

2. Bidding program

  • The Draft Regulations provide for the need to establish a centralized program in Osinergmin of the bidding processes to supply the demand of regulated users for the next 10 years.
  • The bidding program was proposed by all the distribution companies that are part of the SEIN and isolated systems, and it has been approved by Osinergmin.
  • The bidding program is updated annually in response to changes in demand.
  • The bidding program contains a list of supply contracts that each distributor plans to sign during the next 10 years, specifying the following:
    • Type of contract: long, medium or short term
    • Type of product: power only, energy only or both
    • Blocks to be tendered
    • Date of call for bids
    • Contract term, specifying from when it is calculated.
  • In isolated systems, only long-term bids to promote new generation units will be considered. There may only be short- or medium-term bids when there are conditions that allow competition, such as a multiplicity of unrelated generation companies.
  • The distribution companies obliged to have bidding programs are those whose maximum regulated demand exceeded 10 megawatts in the 12 months prior to the beginning of the bidding program approval procedure.
  • For distribution companies interconnected to the SEIN, the demand to be tendered must correspond, at least, to the following amounts:
Years covered by the programPorcentage of total distributor demand
1-2100 %
390 %
480 %
570 %
660 %
750 %
840 %
935 %
1030 %


  • Noncompliance with the bidding program is sanctioned by OSINERGMIN.

3. Supply contracts resulting from tenders

  • Los productos a contratar en las licitaciones son los siguientes:
    • Solo potencia: se garantiza la potencia firme pactada durante las horas de punta.
    • Solo energía en bloques horarios para el caso de contratos en el SEIN.
    • En los Sistemas Aislados, los contratos de solo energía comprenden la producción del generador.
    • Potencia y energía: solo aplicable al SEIN y para el bloque de horas de punta.
    • In long-term bids for the installation of new power plants, minimum billable amounts of power and/or energy may be considered.
    • In the SEIN, the maximum percentages of demand to be contracted are as follows:
    Porcentage of total distributor demandGrade periodContractual term
    Long termMaximum 40 %Minimum three years and maximum six yearsLong term
    Medium termMaximum 60 %Minimum two years and maximum three yearsMedium term
    Short termMaximum 40 %Minimum one year and maximum two yearsShort term


    • The demand for isolated systems is satisfied through tenders.

    4. Supply contracts without bidding

    • No-bid contracts are entered into to cover demand that cannot be satisfied by means of bids and when it is not feasible to carry out a new bidding process. These may be of the following:
      • Power only (The agreed firm power is guaranteed during peak hours.)
      • Only energy in hourly blocks in the case of contracts in the SEIN
      • Only energy, including the generator’s production, in the case of isolated systems.
      • Power and energy (These are only applicable to the SEIN and for the block of peak hours.)
    • Contracts without bidding must have a maximum term of one year and are not extendable.
    • Distributors for which the bidding program is not mandatory (whose maximum regulated demand did not exceed 10 megawatts in the last 12 months) may opt for this type of contract to serve their regulated users. However, they may also join the bidding processes initiated by other distributors.
    • The contract model and the conditions for applying regulated prices will be approved by Osinergmin.

    5. Incentive for early bidding

    • A bidder that calls for a long-term tender may incorporate an additional charge into the energy prices in addition to the prices obtained in the tender.
    • This additional charge may not exceed 3% and is only applied to the energy invoice.

    6. Surplus market

    • Distributors may agree to reallocate their unused surpluses under their supply contracts in favor of other distributors that have an emergency deficit.

    7. Restrictions

    • Supply contracts entered into by distributors between the effective date of the regulation and the approval of the first bidding program (which took place on 31 January 2025) are subject to the provisions of the Draft Regulations and cannot have a term or grace period of more than one year.
    • Until 20 January 2026, tenders to supply regulated demand during peak hours can only include the supply of energy and power.
    • Distributors must send a copy of the supply contracts they have in force and their addenda. Likewise, these contracts may not be extended, and the contracted quantities may not be increased.


    With the entry into force of the Draft Regulations, the Electricity Supply Bidding Regulations, approved by Supreme Decree No. 052-2007-EM, will be repealed.

    Interested parties had until Thursday, 24 April 2025 to send comments on or contributions to the Draft Regulations through the Ministry of Energy and Mines, located at Av. Las Artes Sur No. 260, district of San Borja, or by email: prepublicaciones_DGE@minem.gob.pe.


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      We hope this information is of relevance to you and your company. Please do not hesitate to contact us if you require any advice in this regard.

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