Mypes warn that concentration in the electricity market would raise costs for businesses

Before the sale of Enel in Peru to the Chinese company Southern Power Grid International (CSGI) for the sum of US$2.900 million, which still lacks the approval of the indecopithe union of Mypes Unidas del Perú (MUP) expresses its concern about said operation, since this would lead to an “evident and clear concentration of the electrical distribution system in the city of Lima.”

According to the union, this possible concentration in the electricity sector is due to the fact that the company Luz del Sur has also been owned by a Chinese company since 2020.

“The panorama that is presented before the sale of In it to the Chinese Government would close any option to be competitive in the face of the obvious and forthcoming management of the regulated market in Lima by the Chinese Government and in view of the institutional weakness that Osinergmin presents vis-à-vis its controllers,” says the MUP statement.

Likewise, Mypes Unidas del Peru indicates that this business concentration in the sector could have an impact on electricity rates, which would affect small businesses.

“The mypes have been requesting access to the free electricity market, lowering the fence from 200 kW to 50 kW of power, in order to lower our production costs, in view (of) that the mypes are kidnapped by the market regulated without the option of being able to choose the company that can provide this important input,” adds the union.

Finally, MUP urges Indecopi to act with Peru and all citizens in mind. They also ask the Congressional Mining and Energy Commission pass the bills that allow the mypes enter the free electricity market, which would allow them to freely choose their provider in order to guarantee survival in the midst of the economic crisis.