Former ministers urge Petro to take action in light of the crises at energy companies

In a letter to President Gustavo Petro, more than ten former Ministers of Mines and Energy urged the government to take “timely” measures in light of the financial crisis that seventeen energy marketing companies are going through and affecting the country’s electricity sector threatens. .

Former officials Amvlcar Acosta, Germán Arce, Carlos Caballero, Mauricio Cárdenas, Tomás González, Luisa Lafaurie, Carlos Martínez, Luis Ernesto Mejía, Diego Mesa, Federico Renjifo, Juan Camilo Restrepo, Carlos Rodado, María Fernanda Suárez and Ramiro Valencia presented the warning made by operator XM in its latest financial risk analysis of the energy market.

“(…) 17 marketers serving nearly 40% of the country’s commercial demand are in serious financial trouble that could infect 19 additional agents and generate energy market debt of $827 billion.”

They indicated that a crisis of this nature, “which threatens the viability of the current electrical system”, has its origins in the enormous difficulties for new generation and transmission projects to come online on time and allow exposure to demand is reduced. and guarantee delivery reliability.

“As well as measures that have seriously affected corporate liquidity, such as the recent imposition of barriers to recover the more than $5 billion of interest deferral (Tariff Option) provided as relief during the pandemic,” it said. the letter.

They added that to this panorama is added “the upward pressure on energy prices already observed with the arrival of the El Niño phenomenon, the uncertainty about the supply of gas to meet demand in the short and medium term and the uncertainty in which fundamental institutions live.” are immersed in dealing with complex situations like these.”

“This is the case with the CREG, where for months there have been commissioners in charge – and subordinate to the government – ​​in clear violation of the principles of independence with which the CREG was designed,” the former ministers insisted.

They recalled that companies, unions, former officials and analysts have been warning the government about the threat of this crisis for several months, but their warnings have been ignored.

“Is the government willing to take on the intervention of a significant number of companies without affecting the quality of services and without incurring high fiscal costs? Let us not forget that the intervention of the defunct Electricaribe, which led to the takeover by the Chief Inspector between November 2016 and October 2019, caused a decrease in collections, an increase in losses and tax costs that, according to “What happened was said by the government was almost $11 billion,” the letter adds.

They then opined that the “financial implosion” of the sector is not inevitable, but must be addressed as quickly as possible.

“The only path left today is that of government financing – like the path promised through Findeter and not materialized – of all balances of the current rate option. This should be paid by the agents once normal conditions return to the sector,” they suggested.

Similarly, they recommended other measures such as “the definition of price incentives to pursue efficiency improvements in consumption through demand response programs, real and price incentives to link demand to the supply of excess self-generated energy and, in this situation, maintaining and ensuring the supply of fuels for thermal generation. And of course the appointment of commissioners in the CREG with the necessary technical soundness.”

“We must act now, Mr. President. It is in your hands to prevent the country from running a costly and unnecessary risk of a blackout,” the letter from the former ministers concludes.




Source: El heraldo

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