Peru: New rules for the prior consultation process in the electricity subsector

In brief

On 13 March 2024, Ministerial Resolution No. 104-2024-MINEM/DM ("Resolution") was published. It approves the administrative measures that are subject to the prior consultation process in the electricity subsector. This Resolution annuls the regulations contained in Ministerial Resolution No. 209-2015-MEM/DM ("Resolution 209"), only with respect to the electricity subsector.


Contents

Although the Resolution maintains the cases that had already been contemplated in Resolution 209, two administrative measures were added, which we have highlighted in the following table:

Administrative measures Stage of the prior consultation process
  1. Granting the final generation, transmission and/or distribution concession.
Before granting the concession.
  1. Granting the rural electric generation, transmission and distribution concession.
Before granting the concession.
  1. Modifying the definitive generation, transmission and/or distribution concession, only if it implies the occupation of new areas.
Before granting the modification of the concession.
  1. Modifying the rural electric generation, transmission and distribution concession, only if it implies the occupation of new areas.
Before granting the modification of the concession.
  1. Before granting the modification of the concession.
Before granting the authorization.
  1. Granting the concession for the exploitation of geothermal resources.
Before granting the concession.
  1. Approving the definitive engineering study of projects to be executed as a result of private investment promotion processes conducted by PROINVERSION.
Before approving the definitive engineering study.
  1. Approving the feasibility of the projects included in the National Rural Electrification Plan
Before approving the feasibility of the project.

 

Notwithstanding the measures indicated above, the Resolution establishes that prior consultation applies in the following situations:

  1. For other administrative measures that directly affect the collective rights of indigenous or native peoples.
  2. In the case of investment projects, prior to the start of work.

The Resolution specifies that the body in charge of carrying out the prior consultation is the General Office of Social Management (OGGS) of the Ministry of Energy and Mines, in coordination with the General Directorate of Electricity. For this purpose, the OGGS must prepare guidelines to identify indigenous or native peoples and other stages of the prior consultation process.

For cases 7 and 8, the guidelines must state that the competent environmental authority shall submit the approved citizen participation plan and the corresponding documentation to the General Directorate of Electricity, establishing the stakeholders identified within the area of direct and indirect influence of the investment project.

The Ministry of Energy and Mines will evaluate what measures to take to apply prior consultation in investment projects that, as of the date of publication of Class Action Ruling No. 29126-2018-Lima (14 January 2022), were under construction and are still at that stage.

We trust that this information will be useful to you and your company. Should you require legal advice on this matter, please do not hesitate to contact us.

Click here to read the Spanish version.

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