It will be up to Indecopi to decide if two Chinese publicly-owned companies take control of more than 70% of the Peruvian electricity market. For jose tavarasenior professor at PUCP, the purchase of Enel Perú’s assets by Southern Power Grid represents a sui generis case for Peruvian law, which provides for corporate control operations, but not when the parent is a nation in “an expansion process hegemonic”.
At the moment, Indecopi has not been notified by either of the two companies regarding the US$2.9 billion transaction, which was discussed before the Securities Market Superintendence (SMV).
Although they are different companies, both are public and depend on the Chinese government. It can be described as an act of concentration that, in my opinion, departs from the original design of distribution in Lima, which had a bipartition before, ”he says.
Indecopi, so far, has not ruled on the possibility that two Chinese organizations can handle almost the entire electricity market in Peru. Photo: diffusion
Távara relates to article 122 of Law 31112, which establishes that activities in the electricity sector “may not be carried out by the same owner or whoever exercises direct or indirect control over it.” At the moment, southern lightof China Three Gorges Corporation, and Enel Perú share almost all of the distribution in Lima.
In practice, the model that governs the Peruvian electricity market, modified since the 1990s to curb the state monopoly in favor of the private sector, would once again end up in the hands of a state monopoly, but this time abroad.
“I find it reckless that they even dared to propose the acquisitionknowing that the company in the other part of the city also depends on the Chinese government”, he points out.
Santiago Davila, a partner of EA Consultores, puts the spotlight on the mines. The specialist takes with tweezers that the takeover of Chinese investments jumps freely from extractive activity to electricity, when these companies are precisely the big buyers. This is the case of Las Bambas.
“China has mines in Peru that are large consumers. What will happen? Will they prefer to hire each other because they are from the same group? Indecopi has to study that,” Dávila said.
The data
Strain. SNI asked to reject “China’s monopoly” in the electricity sector, a position different from the one it showed years ago for other markets, such as brewing and pharmaceuticals.
Focus. The case will be seen in the Defense Commission of Free Competition. Chinese control over the electricity market depends on Indecopi
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
