The Government’s decision to take control of the definition of energy rates raises the risks of eventual rationing, while hindering the continuous, efficient and quality provision of this service to millions of Colombians. These suspicions are contained in the communications both from the Colombian Association of Electric Power Generators (Acolgén)as well as the Committee of Experts of the Energy and Gas Regulation Commission (Creg), revealed a few hours after the decree that gives the Executive powers for three months in tariff matters was known.
(Also read: Petro will assume the regulation of public services for 3 months)
From Acolgén, its directives called on the Government so that «the regulations that are issued respond to the current constitutional and legal framework, are the result of consensus and discussion of all sectors, are reaffirmed in solid technical and legal arguments, and are weighed accordingly. in such a way that the fulfillment of short-term objectives
term does not sacrifice basic sectoral pillars, relative to the sufficiency of the
supply and energy security», which the country demands.
They added that, in this sense, they work on a series of proposals, which will be presented to the Government next week, with objectives aligned between what
that it seeks and the sustainability of the Colombian energy sector.
(You may also be interested: Creg warns Minister Irene Vélez about intervention in energy rates)
For their part, from the Creg, in an extensive 21-page letter, the members of the Commission reminded President Petro that the confidence gained by the electricity sector in the last three decades has been the product of coordinated work between the public sector and private, a task that must be maintained for the future of the country.
«which in a coordinated manner between public policy and the
sectoral regulation we can achieve from now on is based on the confidence that has
generated the institutional and market model created by laws 142 and 143 of
1994, with its modifications and, especially, in the confidence in the rules issued
by a independent regulatory and technical agency», Point out the Creg.
It also adds that proof of the above is that the construction of generation plants has been financed by national and international banks without mediating contracts between the investor and any agent of the system, but with the support of the reliability charge, market mechanism which is supported by a set of rules from the Energy and Gas Regulation Commission.
millionaire investments
As a result of this reliability charge scheme, they have encouraged
investments of 17,000 million dollars, distributed in 30 projects that add up to a capacity close to 6,000 MW.
The Creg also recalls that «the expansion of the national transmission network has materialized with important private investments supported by confidence in the CREG rules and the UPME selection processes.»
How has it been possible that investors have obtained financing and bank guarantees with the sole support of the administrative acts issued by the Commission and a certificate from the market operator that certifies that a firm energy obligation was assigned?, the signatories wonder of this letter addressed to the Executive. And their answer is: «confidence in the institutions of the sector; that is what we have built over 27 years,» they insist.
In that, they insist that in the face of the country’s energy future it is clear that greater investments will be contracted to guarantee sustainability, quality and service to millions of Colombians.
For this reason, they make it clear that the challenge of incorporating more investment in the construction of generation plants to expand the firm energy capacity of the system for the years 2027 and following, to meet the growth in energy demand of those years, even in critical conditions , but for it Confidence in state regulation must be preserved and maintain the signal that any modification to the regulations of the sector is the result of a rigorous and transparent technical analysis and, that in any case, acquired rights, consolidated legal situations and the investment made based on the legitimate trust in the stability of the fundamental rules.
The challenge ahead is to strengthen the entire Colombian energy infrastructure, improve quality standards and reduce loss levels,
«what will be possible with the investments that are being undertaken to achieve the
required renovation goals and being able to move forward, along with the installation of
advanced measurement, in the consolidation of the network platform necessary for the
mentioned energy transition», they insist in the Creg.
The National Association of Public Services and Communications Companies (Andesco) He also spoke out against this situation that has been presenting great controversy and said that «it is essential that the decisions made on regulatory issues preserve the essential principles of financial sufficiency and recognition of efficient costs, undoubtedly having as objective an adequate provision of the service to users in the country.
In this sense, he specified that it is essential for the country and consumers that these issues be dealt with in a technical manner, taking into account all the financial, economic, environmental and social variables to guarantee that the services offered are of the best quality, while best possible price and for the largest number of Colombians.
