In Peru, the Electrical Concession Law (LCE No. 25844) stipulates that the activities in the electrical sector are to be divided into power generation, transmission and distribution (the latter two are regulated activities). Generation activities are conducted by companies that generate power through hydraulic energy, geothermal energy, wind, sun, fossil fuels or other resources. Statkraft Perú S.A. is a power generation company that only uses water resources in its hydropower plants.

Statkraft Perú S.A. also has assets that are part of the Secondary Transmission System; the transmission activities are conducted by companies that charge a toll fee for the energy that is conveyed through their lines and substations. On the other hand, power distribution activities are conducted by companies that require and purchase electricity from generation companies, through bilateral agreements or tenders, before selling it to end users. These companies also charge a regulated toll fee for the use of the grids.