The decree establishes differentiated update frequencies for various cost components. Node prices, transmission tolls and distribution base tariffs will undergo monthly recalculation, while investment costs and operation, maintenance and administration expenses for the Interconnection Trunk System will be adjusted semi-annually. Node prices represent connection points within electricity circuits where power is valued for wholesale transactions.
For assets originally invested in foreign currency, the regulation mandates using a 365-day moving average of the official exchange rate preceding each update. The dollar value for indexed calculations corresponds to the average official exchange rate recorded between the 25th day of two months prior through the 25th day of one month prior to the effective date of updated tariffs. The Consumer Price Index applied will be from the second month before the updated values take effect.
The National Load Dispatch Committee must recalculate firm capacity and peak values each November based on actual energy demand and power records, then execute annual settlements among wholesale market participants. The decree instructs the Electricity and Nuclear Technology Regulatory Authority, market agents, and the Load Dispatch Committee to apply the new indexation formulas immediately from the publication date.
Presidential spokesman José Luis Gálvez stated the decree aims to prevent abrupt tariff increases by using monthly exchange rate averages rather than point-in-time valuations. The government maintains the measure protects consumers by stabilizing tariff components against exchange rate volatility, though the decree does not specify percentage increases or decreases in user bills. The regulatory framework does not establish new tariff-setting criteria beyond updating the indexation methodology for existing cost components that have undergone monthly review for 25 years.
This article was curated and published as part of our South American energy market coverage.
