The Superintendency of Residential Public Services initiated an administrative and punitive investigation against the company Enel Colombia for the energy prices it offers on the Energy Market.

Previously, the entity had announced a irregular behavior by Enel by failing to comply that «the prices at which they offer their energy daily must reflect the variable costs of generation that they incur. In the specific case of hydroelectric generation, they must obey the opportunity cost of water at the time of generation.»

(Also read: Why don’t full reservoirs lower electricity rates?)

The Superservicios established that the irregular behavior corresponded to the Betania hydroelectric plant, a plant owned by Enel Colombia, which for several days despite the fact that it was pouring water (dumping), had an energy offer price close to 900 pesos per kilowattbehavior that did not obey the previously mentioned regulatory precept.

In this regard, Superintendent (e) Orlando Velandia Sepúlveda recorded that «if a hydroelectric is dumping water, it will have a minimum opportunity cost and, therefore, their energy supply prices must be low and not as Enel Colombia did». Similarly, this behavior will reduce a possible distortion of the market.

Under indices, the Superservicios these initiated a punitive administrative investigation and filed a charge against the company Enel Colombia for having, possibly, ignored the principles of the regulatory framework of the Energy Exchange market in one of its generation plants at the time of the offer to the system.

(Read also: The justifications for the ‘rabbit’ of the Government on the rise of the ACPM)

This case, added to the most recent questions about the unusual increases in stock prices in moments of major rains in the country and with reservoirs with levels that exceed historical averages, led the Superservicios to suggest a review of the aspects that regulate energy generation in Colombia.

«We will permanently monitor the behavior of the agents to determine the reasonableness and consistency of the parameters and variables used when offering energy, or providing services in each link in the chain, requesting the intervention of the Superintendence of Industry and Commerce to who can determine if such behaviors may have sanctions from the guarantee of free competition», stated the superintendent (e).