Micro and small enterprises (MSEs) in Peru will be able to access the free electricity market to directly contract their supply, thereby reducing their energy costs and improving their competitiveness. The measure was approved by Congress after the Executive Branch raised concerns about its impact on the electricity system.
The measure establishes clear conditions and a progressive timetable for its implementation until 2030. The insistence opinion approved in October 2025 brings together four legislative initiatives from different parties and aims to strengthen the productivity of MSMEs and promote national economic reactivation .
The law stipulates that companies meeting certain requirements can trade on the free market instead of being subject to regulated tariffs. "The purpose of this law is to allow micro and small enterprises (MSEs) to reduce their energy costs by accessing the free electricity market, contributing to their productivity and competitiveness," states the bill approved by Congress.
This decision stems from the recognition that energy costs represent a critical structural burden for this business segment, which accounts for over 99% of the country's productive units and generates the majority of employment. To access the free market, companies must be registered in the National Registry of Micro and Small Enterprises (REMYPE) and have a minimum annual demand , which will be gradually reduced.
Between 2026 and 2027, a demand greater than 150 kW will be required; between 2028 and 2029, this will decrease to 100 kW; and from 2030 onward, exceeding 50 kW will be sufficient, without surpassing 2,500 kW. "This gradual transition offers predictability to market participants and ensures an orderly adaptation of the electrical system," states the Congressional opinion, which emphasizes that the measure aligns with the regulatory framework of Law 28832, aimed at guaranteeing an efficient supply. The law also defines technical parameters such as "maximum annual demand" and "maximum monthly demand," based on which eligibility for entering the free market is calculated. "The average of the highest demand values of the last twelve months will be the access criterion," establishes Article 3 of the law. A central point of the regulation is the association between MSMEs , through consortia or groups that share the same electrical circuit and that can add up a joint demand greater than 2500 kW.
This mechanism will allow companies that would not otherwise reach the threshold to enter the free market. "The State will promote partnerships among micro and small enterprises (MSEs) to consolidate their demand and facilitate their access to the free market, prioritizing those located in the same area or electrical circuit," the law states.
These associations, if legally constituted, will be recognized as entities authorized to contract energy jointly. In response to the Executive's concerns about the potential financial risks of this structure, Congress emphasizes that association is already contemplated in national legislation as a valid tool for improving business competitiveness .
Furthermore, it notes that the regulations may define guarantees and shared payment mechanisms to mitigate risks. Another key component of the standard is training.
The Ministry of Production and the Ministry of Energy and Mines will be responsible for designing training programs to explain to micro and small enterprises (MSEs) how the free market works, what its benefits are, and what requirements they must meet . "The training will have a territorial focus and must be technical but accessible, so that companies can make informed decisions," states Article 5 of the regulation.
The actions will be carried out in coordination with regional and local governments and private entities, with the goal of ensuring effective implementation. The bill also received comments from the Executive Branch, which expressed concern about the regulatory and contractual effects that the mass migration of users to the free market could generate.
The Executive Branch pointed to potential impacts on the payment chain, risks of over-contracting for distribution companies, and a lack of technical justification. "The new threshold could be seen as discriminatory toward users with demand below 50 kW," the Executive Branch warned in Official Letter 176-2025-PR.
He also pointed out that the reform could undermine the predictability of the electrical system. However, the Energy and Mines Commission rejected these observations and defended the constitutionality and viability of the measure. "The phased implementation schedule guarantees legal certainty, and regulatory mechanisms are already in place to address risks such as over-contracting," the approved opinion argues. The decision was supported by a majority of Congress, including Representatives Wilson Soto Palacios, Ilich Fredy López Ureña, Hernando Guerra García Campos, and Jorge Luis Flores Ancachi , authors of the legislative bills that gave rise to this law. "Denying this possibility under the argument of risk perpetuates inequality with large consumers who can already negotiate their rates directly," the law's proponents stated. Congress also emphasized that the measure responds to regional experiences , such as those promoted by ECLAC and the OECD, which encourage access to competitive energy services as a productive development strategy.
The case of Uruguay was cited as a positive reference. With this decision, Peru is moving forward with a reform aimed at democratizing the electricity market, creating competitive conditions, and strengthening the productive base of its micro and small enterprises (MSEs), in line with the constitutional principles of equity, efficiency, and sustainability.