Company News Jul 8, 2019 5:13 PM
Members of the Colombian Association of Energy Distributors (Asocodis) announced their investment budget for the coming years.
According to El Universal, the 23 members of Asocodis presented their investment proposals for the next five years, and these commit resources for CoP$13T.
José Camilo Manzur, Executive Director of Asocodis, commented that companies plan to improve networks, refurbish infrastructure, invest in technology, improve the quality of service and supply power to 500,000 new users, with this investment budget.
According to Manzur, María Fernanda Suarez, Minister of Mines and Energy (MinEnergia), said that the Energy and Gas Regulation Commission (CREG) will have three months to make a decision on these investment proposals.
The members of Asocodis are in charge of more than 11.8 million clients that represent 98.6% of the users in the market and serve 79.6% of the national consumption. Electricaribe is part of this association.
Manzur did not give an exact figure on the possible amount of Electricaribe investments, but the market estimates that the firm could invest around CoP$700B per year.
He said that Asocodis expects the search process for a new operator to be successful, since the coast represents a quarter of the Colombian market.
Manzur commented that there are issues in the National Development Plan (PND) that should be regulated as soon as possible to generate greater confidence and certainty in the energy market.
Bottom-Line: The Colombian energy sector has great growth potential and the Asocodis investment budget is proof of that.
Companies demonstrate their interest to invest in the country, but authorities must do more on regulatory issues to materialize these projects and attract more resources.
We are less optimistic about the auction for Electricaribe. The opportunity is certainly interesting but the politics is complicated. The government seems to have recognized this and a few weeks ago floated the ‘trial balloon’ that if the auction failed, the State might have to take over the public utility permanently.