Regional governments can contribute resources to ease tariffs: unions

Regional governments can contribute resources to ease tariffs: unions

The energy sector unions assured that it is necessary that the decision to freeze tariffs for public services is analyzed in the light of the institutional, technical and economic framework. They argue that if such requests meet the intent to reduce fees for low-income users, the current regulatory framework allows regional governments to provide funding to ease the payment of these fees for the most vulnerable populations.

This is stated in a statement signed by the Colombian Association of Electric Power Generators (Acolgen); the National Association of Public Services and Communications Companies (Andesco); the National Association of Generation Companies (Andeg); The Colombian Association of Electricity Distributors (Asocodis) and the Colombian Chamber of Energy.

This ruling follows a request from the mayor of Medellín, Daniel Quintero, to President Gustavo Petro to authorize the freezing of EPM rates.

“The unions representing the electricity sector reiterate the need and importance that these types of petitions be analyzed and processed within the institutional and legal framework established for this purpose; with technical and economic analyzes that make it possible to identify the effects of these types of measures on the various actors, i.e. companies, users and national or regional authorities, so that they do not in any way affect the quality and continuity of the energy service, and financial adequacy of the companies”, they emphasize.

They confirm that they are aware of the current situation, in which inflation affects all sectors without exception and affects Colombians.

For this reason, the Tariff Justice Pact has been jointly implemented and enforced since last October, with the companies contributing about $3 billion to mitigate increases in electricity rates; resulting in an average variation of the rates below the CPI, in these last four months.

The unions indicate that setting the tariffs of public services is a delicate exercise, as it must balance the revenues of the companies, in order to make the investments necessary to provide a reliable and quality service and the values ​​that users have to pay to access an essential service.

To achieve these objectives, it is essential to carry out technical, economic and financial analyzes through technical entities such as the Energy and Gas Regulation Commission – CREG, within the framework of the Constitution and under the criteria set out in Law 142 of 1994 It is important that any rate change respects the intangibility of the contracts, is the product of broad analysis and does not sacrifice long-term objectives.

“The unions and their affiliated companies reiterate our willingness and will to ensure an affordable, sustainable and reliable electricity supply for all Colombians, by making the changes or improvements needed in the regulatory framework, in a technical, responsible and taking into account the short-term and medium-term consequences in the delivery of the service; through a joint construction, as has always been tried,” they point out in the document.

Source: El heraldo