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Peru’s Congress Approves Mandatory Refunds and Compensation for Unjustified Water Service Cuts

Implementation hinges on Executive rules due within 180 days.

Overview

  • Lawmakers voted 93 in favor to accept the Executive’s substitute text for Bill 4553/2022-CR, amending Legislative Decree 1280 to mandate direct compensation for unjustified interruptions to water and sewage service.
  • Providers must return payments for the affected period and compensate users for the time without service when the outage is attributable to the operator.
  • The approved measure orders the Executive to update Housing sector regulations within 180 days, with the regulation to define qualification criteria, compensation formulas, and enforcement mechanisms.
  • The text incorporates adjustments requested by the Executive while preserving the compensation scheme endorsed by the Consumer Defense Commission, according to commission chair Katy Ugarte.
  • Compensation is described as covering patrimonial losses, non-patrimonial harms, and families’ opportunity costs, and it can extend to cases of restricted or special service conditions subject to regulatory definitions.