Pluz Energía: “The main thing is to prevent the FEN from causing operational problems, and we are working on that through preventive plans”

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– Does Pluz’s electric concession cover areas exposed to the ENSO, such as the banks of the Rímac River?

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We cover the basin of the Rímac River, the basin of the Chillón River, and the Huaycoloro River, which has always experienced overflows during the rainy season. That is why it is important to coordinate with the authorities for the river dredging, but there are also trees that can fall on the power lines. For that, we are looking at pruning programs.

– Have prevention efforts already begun?

We have already been working preventively. ENSO has impacts in two ways. On one hand, the increased presence of rain leads to a higher level of infrastructure demand. For that, we are anticipating preventive plans by reviewing critical infrastructure and coordinating with authorities for river dredging to foresee any overflow that could affect adjacent areas.

– What is the other effect of ENSO?

On the other hand, high temperatures imply greater energy demand, which in turn means higher sales and greater network demand.

– Will ENSO bring greater energy demand? Does that mean you will have higher revenues this year?

I believe we must start with the main goal, which is to prevent ENSO from causing operational problems, and that is where we are working decisively through preventive plans. We are conducting a thorough review of all sensitive installations, particularly the high and medium voltage substations and the medium voltage circuits that may be vulnerable to these effects due to river overflows and rains. We cannot anticipate demand effects; we will have to see how they unfold.

– Which industries could be most affected?

There are economic sectors that could experience significant negative impacts, such as fishmeal processing plants and agriculture. We know they will be impacted, but I focus on what concerns us, which is trying to prevent everything necessary with maintenance plans to anticipate and not be reactive.

– Besides ENSO, what are the main challenges for Pluz in the short and medium term?

I emphasize the importance of strengthening institutional capacity. It is necessary for the Executive to have highly competent technical teams and for the Ministry of Energy and Mines (Minem) to regain its leadership in electrical regulatory matters. The Central Reserve Bank is a clear example of institutional strength in this regard. The same must happen with the Ministry of Economy and Finance.

– Should Minem and MEF be governed like the BCR?

Economic growth goes hand in hand with the electric sector. Without a resilient and robust electric sector, there is no economic growth. And that goes hand in hand with administrative simplification. Red tape has increased exponentially. It must be done in a much more agile and light way, but without relaxing standards.

– Having said that, what are Pluz’s investment plans for this year and the coming years?

At Pluz, we have a big bet on service improvement. Within our strategic plan, we have set a challenging and ambitious vision, which is that we aim to become the best electric distribution company in Latin America. It is a goal that excites us greatly because it involves contributing to improving the lives of Peruvians and the sustainable development of the country through energy and the energy solutions we provide.

– How much do you project to invest to achieve this goal?

To achieve this vision and purpose we have set, we are carrying out a very strong investment plan. When China Southern Power Grid International (CSGI) took control of the company in June 2024, investments increased. That year we invested S/804 million, but in 2025 we reached S/895 million, and this year we are exceeding S/1,050 million.

“We aim to become the best electric distribution company in Latin America.”

NORTE CHICO

– Where will those investments be directed?

These investments aim to improve and strengthen the systems. We have completely changed our technical, commercial, and financial systems, which are the platform that will allow us to modernize and digitize the company, enabling us to incorporate Artificial Intelligence, smart metering technology, and at the same time, an ambitious electric transmission plan. In the next five years, we will invest S/1,000 million in new substations and high voltage lines. We will have five new substations that will improve service quality.

– Are those projects located on the outskirts of Lima?

In Lima and on the outskirts of Lima, but also in Norte Chico. At the same time, we have a significant investment to improve network reliability and reduce failure rates, and we are engaged in a process to reduce losses through a direct fight against energy theft. We have a big challenge to achieve the vision we have for the future. Therefore, we trust that the tariff regulation being carried out (by Osinergmin) will be set appropriately to sustain that level of investment and recover it over time.

– Electric distributors are requesting regulatory reform from the new Government. If this happens, would investments increase?

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Our plan is to bet on growth. We are not considering a different scenario. The investment commitment this year comfortably exceeds what has been seen before in a distribution company. That reflects our confidence that we will grow.

– How many users does Pluz provide energy to?

We have approximately 1.65 million users. But also, within this investment framework, we have planned to expand the concession area. For this, we have submitted some expansion requests in Norte Chico. Hence, the need to speed up the approval times for permits because we submitted this request at the end of last year and are still in process.

“Our goal is that in 4 or 5 years, 100% of our customers have smart metering; we are working on it.”

– Which part of Norte Chico are we talking about?

We are talking about people who currently do not have energy and who still burn oil in Huacho and the outskirts of Huacho.

– How far does Pluz’s concession reach today?

It reaches up to Paramonga. The northern limit of our concession is Paramonga, 300 kilometers from Lima.

– Is the south already covered, or is there still work to be done there as well?

That is already covered, and the eastern area as well. We must consider that we have already interconnected Lima with Canta. The entire valley area that rises to the central highlands and was previously isolated from Lima is now interconnected.

TRANSMISSION TENDERS

– Who is responsible for granting permits quickly?

Primarily, it is the Ministry of Energy and Mines, which grants the concession.

– Does the continuous rotation of ministers and officials in recent years relate to delays?

Exactly. That is why it is important to recover institutional capacity to have predictability and technical teams that make decisions, as currently happens with the BCR. We hope that within the next two months, we can have authorization to start the work this year. That is our intention to move forward. Meanwhile, we are already contacting potential clients in the area.

– After expanding the concession area, what other goals do you set? Or is it still too early to say?

I believe we have a big challenge to improve service quality and reduce energy losses. For example, we have a massive smart metering deployment plan that we are working on to present to Osinergmin. Our goal is that in four or five years, 100% of all our customers have smart metering. We believe this will allow us to make a quantitative leap in quality and service oriented towards the energy transition. This, leveraging the experience and technology of our main shareholder, CSGI.

– To get an idea, in which countries in the region does CSGI operate?

We have operations in Chile, where we are building an 800 kV direct current high voltage line, the first of its kind in the region. That project will transport energy from the Atacama Desert to Santiago de Chile. We are also looking at the possibility of expanding operations in other segments in Peru.

– What other segments?

We are interested in participating in ProInversión’s tender processes.

“We have a big challenge to improve service quality and reduce energy losses.”

– Are these transmission line tenders?

Yes. We are looking at that and believe we have opportunities to apply our experience in this other segment of the electric market.

– Would you participate through Pluz? Would it be this year?

That is still to be defined. Our platform is Pluz, but we will have to see, when the time comes, if we use this vehicle or a new one. But we expect to reach the tenders this year.

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