Electricaribe remaining financial issues

Company News, Regulation & Policy    Mar 25, 2021 4:01 PM

The Superintendency of Domiciliary Public Services (Superservicios) will issue the resolution with which Electricaribe will be liquidated, but there are still pending issues.

For the liquidation, there is no clarity on the pending matters for more than CoP$18T of the multinational Gas Natural (now Naturgy), Portafolio reported.

The balance begins with the liability for CoP$1.5T for 3,000 pensioners of Electricaribe; other CoP$2.5T still owed to creditors; CoP$4T paid by Superservicios during the last two years of the intervention, and CoP$10T that were not disbursed to make investments in infrastructure.

“Gas Natural did not receive what it claimed as compensation (CoP$4.8T). However, they were released from assuming the millionaire amount represented in accounts that they did not answer for,” Former Electricaribe controller, Javier Lastra, explained.

Lastra said that the case had an unusual solution that is unprecedented in the history of interventions and settlements in the public services sector.

“Gas Natural (today Naturgy) got rid of such a problem with zero penalties and with billionaire savings,” Lastra said.

Most of the amount that the Spanish multinational did not deal with (CoP$10T) now belongs to Afinia (EPM) and Air-e (Enerpereira).

Authorities implemented a charge of CoP$4 Kw/h in the energy service rate to pay the pension liability, but this was declared unenforceable by the Constitutional Court last December.

Representatives of the Superservicios explained that the pension liability (CoP$1.5T) was assumed by the Nation.

They said that the Nation will not assume the debt to creditors (CoP$2.5T), and that they must be submitted to the liquidation process and “Electricaribe will pay as far as its assets allow.”

Bottom-Line: The Electricaribe case is still far from over, as the amounts owed are huge. There is little clarity on how these problems will be solved, leading to more discussions or lawsuits in the short and medium term.

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