Asoenergía asks the government to control the rise in energy prices

“The rise in tariffs will affect the level of subsidies provided by the national government to households, which, in line with rising inflation, will directly affect indicators that are currently indexing electricity tariffs.”

This is according to the Colombian Association of Major Industrial and Commercial Energy Consumers (Asoenergía), which again asked the national government; the Commission for the Regulation of Energy and Gas (Creg) and the Superintendence of Residential Public Services (SSPD), are taking measures to control the rise in energy prices in the country.

Sandra Fonseca, executive director of Asoenergía, indicated that users should be able to enjoy the reliability of the electrical system that, for Colombia, is achieved with the contribution of thermal generating plants.

“With the rise in the cost of imported gas some of which is supplied, and the imbalance and high cost of coal, they are reflected in the growth of the generation component in the final electricity service tariff,” Fonseca said.

Therefore, the union leader assured that, according to data from several companies, imported natural gas used to cost about $7 per cubic meter of natural gas (MBTU) and that prices rose to $15 per MBTU at the end of March.

“Besides noting that the gas futures buying thermal power plants in the short term could be between USD 25 and USD 35 per MBTU,” said Asoenergía’s executive director.

He added that “the daunting panorama reflects not only this reality of the level of energy prices, but also the existing gaps in the indexing methodology (IPP) in the collection of bills issued to users; with indexers that are far removed from the reality of the variation in costs of the electricity chain”.

“Asoenergía, as an active representative of the unregulated demand, has disclosed the fact to the SSPD because of the high and significant increase in the price of the energy market maintained since November 2021, under conditions that do not justify the increase, as the reservoirs remained high and constant and the weather forecasts do not reflect an El Niño phenomenon affecting the supply of the hydroelectric plants. However, there has been no response from entities such as the SSPD, the Ministry of Mines and Energy or the CREG,” he emphasized.

For this reason, the director again drew attention to the need to update the indexers and to evaluate the impact of the decarbonisation policy on the end user, the ambitious targets of zero net emissions in the coming years, so that they are adjusted.

Source: El heraldo