Peru: Law No. 29852 Establishing the Hydrocarbon Energy Security System and the Energy Social Inclusion Fund (FISE)

Peru's Law No. 29852, published on April 13, 2012 and effective from April 14, 2012, establishes the Hydrocarbon Energy Security System and the Energy Social Inclusion Fund (FISE). The law introduces mechanisms to strengthen the security of the national energy system and facilitate access to essential energy services for vulnerable population groups. The Hydrocarbon Energy Security System seeks to develop the infrastructure required to improve the reliability and security of hydrocarbon supplies. FISE operates as an energy compensation, social compensation and universal energy access mechanism. The law provides for financing through specific charges imposed on certain electricity users, liquid hydrocarbon pipeline transportation and natural gas pipeline transportation. Fund resources are allocated to expanding natural gas use among vulnerable populations, supporting new energy supplies in underserved areas and facilitating access to liquefied petroleum gas (LPG) for vulnerable urban and rural households. Its mechanisms include compensation for purchasing LPG cylinders of up to ten kilograms, subject to beneficiary targeting criteria. The law establishes provisions governing the administration, implementation and oversight of these mechanisms and protects FISE resources by restricting their use to legally authorized purposes. Its implementing regulation was approved through Supreme Decree No. 021-2012-EM. The law primarily concerns energy policy and social protection rather than agricultural production, agrifood systems or food security.