Annual Report 2010 - Enel.com

daily wholesale market. Specifically, information on withdrawals
will be considered in the public domain and the
bid price will remain confidential only until the first business
day of the subsequent month.
Finally, on October 1, 2010, CREG published document
118/2010 for discussion. The document contains a regulatory
proposal to identify pivotal players applying the Residual
Supply Index (RSI) and regulate the offers of such
players. The consultation ended on November 30, 2010.
Update of distribution rates
After establishing new distribution rates for Codensa and
Cundinamarca (October 19, 2009, with CREG Resolutions
100 and 101), on December 16, 2009, CREG announced
that it will take steps to correct an error contained in the
calculation of the rate for voltage level IV (above 57.5 kV)
for Codensa. On June 22, 2010 CREG notified Codensa of
Resolution 081/2010, which corrects the error. This concluded
the distribution rate fixing process for the 2009-
2014 period.
In April 2010, CREG Resolution 051/2010 was approved. It
sets out the procedural rules for calculating and auditing
the O&M costs of distribution companies by the regulator.
Gas service security
With Decree 2730/2010, adopted in July 2010 and subsequently
partially amended by Decree 2830/2010, the
Ministry for Energy and Mineral Resources introduced
regulations designed to improve oversight and increase
the security of gas services. It is expected that these regulations
will have a positive impact on the electricity industry
with regard to the stability and security of services and,
therefore, its ability to provide greater assurances of thermal
power plant availability.
Resolution 181651, published by the Ministry for Energy
and Mineral Resources on September 20, 2010, declared
the natural gas scarcity for the country to be over.
Peru
Update of wholesale electricity prices
On March 2, 2010, the regulator Organismo Supervisor de
la Inversión en Energía y Minería (OSINERGMIN) published
the draft of Resolution 43/2010 setting out the proposed
tarifas en barra (wholesale electricity price for regulatedmarket
customers) for May 2010 through April 2011.
The measure aims to reduce the price of electricity by
5% from its current level. This change will involve a slight
increase in the capacity component and a larger reduction
in the price of electricity.
In April 2010 OSINERGMIN published Resolution 79/2010,
which sets the definitive tarifas en barra at $39.18/MWh,
essentially in line with the value announced in March but
5.35% lower than the level in force the previous year.
Long-term auctions
In April 2010 the first long-term auction of electricity to
supply customers in the regulated market was held. Contracts
of eight, ten and twelve years were signed.
Edelnor, the distribution company controlled by Endesa,
obtained contracts for nearly all forecast demand (970
MW out of 1,000 MW). The Endesa generation companies
Edegel and Eepsa signed contracts for the sale of all the
electricity offered (800 and 82 MW respectively). The price
ceiling set by OSINERGMIN for this auction was $57/MWh.
On November 25, 2010, an auction was held for a concession
for a cold reserve project consisting in the construction
of three dual thermal power plants (diesel and gas) to
be available for emergency situations. Eepsa, a subsidiary
of Endesa, was awarded a 20-year concession for the 200
MW plant at Talara (Piura).
Capacity payments and investment incentives
Supreme Decree 1/2010 was published in the Diario Oficial
on January 5, 2010. It contains a variety of measures relating
to capacity payments that seek to ensure the availability
of generation capacity. The decree corrects against the
risk of a difference emerging between the capacity prices
formed in long-term auctions and those calculated by the
system operator COES. It adds a component to the final rate
to remunerate the cold reserve of emergency plants and
penalizes the capacity of plants that do not have a longterm
gas transport contract starting from September 2010.
On April 29, 2010 the Decreto de Urgencia 32/2010 was
published. The decree contains measures to accelerate
investments and facilitate the financing of generation
projects. Among other things, the decree introduces a
number of exceptions to the capacity payment criteria established
at the end of 2008 to deal with the restrictions
on gas supplies from Camisea and sets out certain powers
for MEM in the event of difficulties in auction procedures.
It also establishes the general terms of the rural electrification
program.
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