The pros and cons of the new energy services policy concept

Following the publication for comment on the draft of the National Government’s new energy services policy, experts assure that it has positive aspects, but they point out that there are others that need further consideration.

Former Mining and Energy Minister Amylkar Acosta assures that the staging of the Last Instance Provider (PUI) is striking, a figure that is already in the regulation but whose development has not yet been finalized by the Energy and Gas Regulation Commission (Creg) .

“The problem here is that I believe that the PUI should be part of the definition of the compensation methodology for the commercialization of electricity, an issue that, in theory, through the regulatory agenda, involves the Creg,” he added .

The expert believes that the definitions of marketing should be comprehensive and not regulated in separate parts. “Likewise, I am concerned about why the issue is being brought to the table, even more so in the context of the problems that persist among current operators in the Caribbean,” he explained.

He thinks it is positive that it tries to limit the risks of exposure to stock prices, taking into account that there are several trading agents who have a high level of exposure today and that theoretically in the second half of the year the probability of the phenomenon from El Niño would strengthen, potentially leading to higher stock prices.

However, he recalled that the Creg has also been working on the issue with a resolution that closed its commentary process last month.

“In any case, the more active participation of demand aggregators in the Wholesale Energy Market (MEM) seems interesting in the context of reducing restriction costs and stock prices,” said Acosta.

It was also recorded as positive that it is proposed to improve the times of the processes necessary for the calls for energy purchases. “I think again that this is also being considered to adjust the risk of coverage of different agents in the near term in light of the evidence of El Niño.”

Acosta confirmed that there are good and well-intentioned proposals in the Decreet project and that there are many actions aimed at short-term application, mainly in the Caribbean.

“The most important thing is that it can be synchronized with what the Creg is already working on and has been in consultation with the market,” he said.

For the former minister it is strange that the Ministry of Mines and Energy and the national government, which currently have the opportunity to rebuild the Creg, which has been “practically dismantled, are to appoint experts and promote their goals through said channel, calls for the issuance of this decision, especially after the Council of State annulled decision 227 of February 16, 2023, by which the Presidency assumed the functions of the Commission”.

For her part, Sandra Fonseca, executive director of the Colombian Association of Large Industrial and Commercial Energy Consumers (Asoenergía), said that it is a very positive proposal and decision for demand and especially for the UNR (non-regulated users). However, it is a general rule that gives priority to the regulator.

“It has to be implemented with specific resolutions from the Creg, but it can be a big step for users if implemented in a timely manner. Particularly important is the article on the participation of users in the energy market, which should be specified so that they can act immediately. Similarly, Article 9 on competition criteria in the energy market, if implemented in balance with demand, could be an opportunity to make prices more competitive,” said the union leader.

Source: El heraldo