TBY talks to Jesús Tamayo Pacheco, Chairman of the Supervisory Agency of Investment in Energy and Mining of Peru (Osinergmin), on the country's mining safety regulations, the largest energy project in Peru, and the body's future projects.

Jesús Tamayo Pacheco
Jesús Tamayo Pacheco is the Chairman of Osinergmin. He has held managerial positions in several public institutions and private companies, including member of the Board of Directors of Osinergmin and Chief Officer of the Technical Area of the Peruvian-Italian Fund. He was also a member of the Board of Directors of Ositran. Tamayo holds a BSc and professional license in electrical and mechanical engineering from the National University of Engineering of Peru and a certificate in finance and business administration from ESAN. He also has a master’s in regulation of public services from the Pontifical Catholic University of Peru.

What are the highlights of your 2015-2021 strategic plan?

We want our services and activities to generate added value so that we can contribute more efficiently to the development of electric and mining sector in the country. We want to make sure that consumers receive quality services and that there is a logical price-quality relation. Peru should have strong wholesale and retail players as well as an efficient market. In the gas market, we want to formalize much of the activity that currently takes place across several segments of the sector. We also aim to make the use of natural gas universal in vehicles. Finally, in the mining sector, we want to reduce accident risks related to infrastructure to protect people and goods, as well as reduce fatality rates. In terms of tariff regulation, we want to strengthen people's trust in our regulatory processes and set up a political analysis of the impact our regulation has on the sector.

How would you compare approaches to safety between local mining companies and their international counterparts?

All the large and medium mining companies operating in the country comply with the safety regulations in place. This is an element that helps us strengthen trust in the eyes of foreign investors. We also need to mention the small and artisanal mining segments that work with much lower volumes. These work under regional mining regulation. In that segment, we cannot give many details because these operations are beyond the scope of our influence.

What is your take on the Minister of Energy's aim to diversify the country's matrix by 2025 to reach 60% of total supply from renewable energy?

The country has an energy matrix in which 50% of the current supply comes from hydro hydraulic energy, 47% from natural gas, and 3% from non-conventional renewable energies. Reaching 60% by 2025 is an achievable target. In the last decade, we have seen a transition and diversification of our energy matrix, in which gas has become more relevant and takes a more significant share, making the overall assessment more balanced.

How will the Southern Gas Pipeline impact the sector's developments?

The Southern Gas Pipeline is one of Peru's largest-ever energy projects. It will have a massive impact on the southern energy map of the country. The construction of two electric energy plants in this region of Peru is another element to take into consideration in terms of the energy development of the region, having an impact in both generation and consumption. These energy plants would increase the generating capacity by 1,000 MW. These developments will strengthen energy security at the national level.

In terms of human resources, is the sector ready for the many energy projects scheduled for the next few years?

The growth of the energy sector in the last few years, at an average rate of 7%, required many qualified people. One of Osinergmin's main roles is to play an active part in securing the needs of the sector from a human resources point of view. We train professionals through qualified trainings and courses and certify an average of 100 people every summer. These are mainly recently graduated students who after completing their studies take up our courses. We have also played a key role in training people from a regulatory point of view for the last 14 years.

What are your main objectives for 2016?

We want to decentralize some of our roles and services to strengthen our regional activity. By doing this, we will also make sure that the quality of the services in the regions reach the necessary standards. This especially affects the distribution segment. Also, we will be able to monitor and implement, if needed, more sanctions at the regional level. Second, we want to modernize and update some regulatory frameworks, especially concerning advertising.