Description

The Peruvian electricity industry entered a phase of significant internal changes starting in the 1990s. Segments of the industry have evolved into varying degrees of competition. The Peruvian government has embarked on a new strategy to increase the electrification rate in rural areas and also to satisfy a growing electricity demand. This is a good opportunity for independent power suppliers. Competition in the industry is limited to the generation segment. Transmission is a natural monopoly and distribution allows for competition only during a tender system phase, since each company is limited to certain territory once a bid is won.