Congress approves modification to the FOSE Law to reduce amounts in family rates

The Congress of the Republic approved this Tuesday Bill 990, which proposes to modify articles of the Law that creates the Electricity Social Compensation Fund (FOSE).

With 104 votes in favor, two abstentions and none against, the Plenary gave the green light to the initiative that seeks “a change towards energy justice,” summarized the president of the Energy and Mines Commission, Carlos Alva (Popular Action).

It is worth mentioning that this initiative – presented by the Executive Branch – seeks to incorporate more beneficiaries into the FOSE in order to achieve discounts of up to 16% on electricity bills for Peruvian families.

In addition, through the FOSE, subsidies will be provided to those users who consume up to 140 KWh per month (currently it is only up to 100 KWh/month), and those free users (industries) who join the fund.

At the time, the Vice Minister of Electricity of the Ministry of Energy and Mines, Martín Dávila, explained that in the face of a distortion in the electricity market of supply and demand in recent years, the large consumers – there are currently 2,552 in Peru and none correspond to users middle class or entrepreneurs – pay an average of 40 dollars for 1,000 KWh, while the 33 million Peruvians pay 77 dollars for 1,000 KWh.

In this sense, it is intended to correct the imbalance, making these large consumers also pay the FOSE mechanism, which serves to subsidize the electricity rates of all Peruvians because the entire population will benefit from discounts on their electricity bills of between 1 and 16%, and no regulated user (households) will be affected by this law.