The Commission for the Defense of Free Competition (CLC) of Indecopi decided to authorize, subject to compliance with certain conditions, the business concentration operation consisting of the acquisition of Enel Distribución Perú SAA (Enel Distribución) and Enel X Perú SAC (Enel X) by the company China Southern Power Grid International (HK) CO., Limited (CSGI HK).
In this way, the entity points out that it guarantees competition between electricity generation companies for the supply of regulated users and prevents the rates of the public electricity service of said users from increasing in the future, as a result of less competition.
“The decision adopted conditions Enel Distribución so that when it needs to supply energy from its related companies, it does so through the bidding mechanism administered by the Supervisory Body for Investment in Energy and Mining (Osinergmin), in accordance with Law No. 28832 or, alternatively, through a transparent and competitive contest in the presence of a notary, whose call, bases and results must be published and promptly communicated to the National Directorate of Research and Promotion of the Free Competition of Indecopi”, detailed the entity.
Regarding the last assumption, it is specified that once the electricity supply contracts have been signed, Enel Distribution It will not be able to make modifications that imply an increase in power, or the price or the term in the terms awarded in the tender, as well as modify the formula for updating energy prices.
Background of a controversial operation
In April 2023, CSGI HK requested authorization from Indecopi to acquire the companies Enel Distribución and Enel X, as provided for in the current legal framework. However, it was confirmed that CSGI HK is part of the same economic group as Luz del Sur SAA (Luz del Sur), Empresa de Generación Huallaga SA (Generación Huallaga), Inland Energy SAC (Inland Energy) and Hydro Global Perú SAC (Hydro Global ).
In this way, risks were warned when Enel Distribution buy energy to supply your regulated users. For this reason, the Commission for the Defense of Free Competition has conditioned the operation to compliance with certain rules that Enel Distribución must observe and comply with when it has to contract electricity to serve the electricity supply of its regulated clients, which are mainly homes located in its concession area that covers the northern area of Metropolitan Lima, the constitutional province of Callao and the provinces of Huaura, Huaral, Barranca and Oyón.
The procedure took place within the framework of Law 31112, Law that establishes the Prior Control of Business Concentration Operations, which grants powers to Indecopi to authorize, authorize with conditions or deny concentration operations that occur in any of the economic sectors of the country, which will preserve the conditions of competition in the market, for the benefit of citizens.
The entity has reported that the authorization resolution will be published when said document becomes firm, What will happen if the requesting company does not appeal the decision before the Indecopi Court, in accordance with the current legal framework.
Source: Larepublica
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