Colombia's wholesale electricity prices have fallen sharply in response to improved reservoir conditions, with spot market rates declining 26 percent year-over-year from CoP$797 per kilowatt-hour to CoP$590/kWh, according to XM, the country's electricity market administrator.
Read moreOn January 26, 2026, Ecuador increased Colombian oil transport costs through the Sistema de Oleoducto Transecuatoriano (SOTE) by 900%, from US$3 to US$30 per barrel, triggering Colombia's suspension of electricity exports.
Read moreThe Petro government created two new levies for energy generators under Legislative Decree 044 of 2026, which "adopts measures to ensure the provision of residential electricity public service" while acknowledging a liquidity crisis in the sector.
Read moreColombia's energy sector erupted in protest after the government issued Decree 044 of 2026 under economic emergency powers, imposing two new levies on power generators to address the liquidity crisis affecting intervened companies like Air-e.
Read moreColombia's Ministry of Mines and Energy issued a resolution convoking the country's first long-term electricity contracting mechanism, enabling contracts up to 15 years duration to secure energy supply, diversify the electrical matrix, and advance energy transition in compliance with Decree 1091 of 2025.
Read moreThe Ministry of Mines and Energy issued a draft decree modifying Decree 1073 of 2015 to strengthen natural gas supply and establish an enabling framework for biogas and biomethane integration into Colombia's energy system.
Read moreColombia's Producer Price Index (IPP) registered an annual decline of 2.63% in December 2025 compared to the same month in 2024, according to La República citing DANE data. The IPP measures price changes at the producer level before goods reach consumers, serving as "an early signal of what may happen later with inflation."
Read moreColombia's Ministry of Mines and Energy published a study examining energy distribution areas and potential alternatives to maximize efficiency and operability. These distribution areas define tariff rules across territories, meaning two users with identical energy consumption can pay different amounts depending on their location.
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Huila and Arauca lead Colombia's departments with the most expensive electricity rates, a situation that could worsen with the Ministry of Mines and Energy's draft decree proposing a temporary CoP$8/kWh surcharge for National Interconnected System (SIN) users.
Read moreColombia's Ministry of Mines and Energy announced sustained electricity tariff reductions resulting from government measures to correct accelerated increases inherited at the beginning of President Gustavo Petro's administration.
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Colombia worries about importing gas because of its higher price. This obviously affects everyone using gas but there will also be an impact on electricity prices given the continuing importance of gas-powered thermogeneration to the matrix (to the chagrin of the “Illuminati”).
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The good news is that wholesale electricity prices continue to fall. The bad news is that maybe it still isn’t raining enough. We can explain.
Read moreA recent study by BTG Pactual has shed light on the significant rise in energy prices in Colombia this year, primarily driven by the ongoing El Niño phenomenon, which has persisted longer than anticipated by IDEAM.
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Colombia’s carbon tax is a mere US$6 per ton of CO2equivalent, perhaps a useful source revenue but hardly a disincentive. What would an effective tax look like?
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Our recent article about the viability of renewable energy investments leaned heavily on Levelized Cost of Energy or LCOE and, coincidentally, the Energy Institute (EI) updated its LCOE estimates for a range of technologies. For comparison and for local flavor, we found the UPME LCOE’s on the website (with some questions pending) and the International Energy Agency’s (IEA) estimates.
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Continuing on from last week’s Thursday Thought we look at some of the relevant factors using disguised data from a member of the Colombian electricity sector.
Read moreEveryone can agree that tariffs should be fair. Who would agree they could be unfair? The Minister of Energy, Andrés Camacho, says “Our goal is to guarantee fair rates.” But what does that mean? Fair to whom? Everyone? Is that even possible? Are Colombian tariffs unfair and how do you make that determination in the first place?
Read moreThe Colombian Association of Engineers (ACIEM) presented comments on the proposed decree that sets policies and guidelines to promote efficiency and competitiveness in the national electricity service.
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President Gustavo Petro has other problems this week so we have not heard much from his plan to set electricity rates PERSONALLY! Turns out European countries have the same problem of “too high” tariffs and are looking for better solutions than simply making arbitrary cuts. In the UK, some think that making public utilities into so-called “public benefit corporations” would solve the problem but I have my doubts.
Read moreColombians perceive they are still paying high energy prices, yet the country’s reservoirs are full, and the extended rainy season keeps them that way. Why?
Read morePresident Gustavo Petro spoke about energy prices in the country.
Read moreColombians have complained about alleged increases in their energy bills. The Ministry of Mines and Energy (MinEnergia) spoke on the matter.
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The president of the Senate’s Fifth Commission (responsible for energy issues), Senator José David Name, questioned the regulations set by the Energy Regulatory Commission (CREG) for the country’s renewable energy auction.
Read moreThe Ministry of Mines and Energy (MinMinas) held a reliability auction to guarantee the energy supply in the coming years. This was a separate and distinct process from the long-term renewables auction held at the same time, which resulted in no transactions.
Read moreÁngela Montoya, president of the Colombian Association of Electric Power Generators (Acolgen) explained why ‘El Niño’ phenomenon will not affect energy tariffs this year.
Read moreThe National Department of Statistic (DANE) published figures for the variation of energy service tariffs. This is what industry experts have to say about it.
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