Energy associations vs MinEnergia

Regulation & Policy    Sep 16, 2019 11:32 AM

The Colombian government presented the National Development Plan (PND) a few months ago and this strategy generated discussions in several economic sectors of the country. Energy industry associations have pronounced about some articles of this plan.

According to Portafolio, Energy associations continue to be upset with the Ministry of Energy (MinEnergia) due to some articles of the PND.

The Associations sent a letter to the entity showing their concerns and objections on article 296 of the PND and article 6 of Resolution 4-0591 of 2019. They say that forcing the energy purchase, from unconventional renewable sources, is inconvenient for the country.

“It is important that all the regulatory measures seek to guarantee the conditions of free competition and the market revitalization,” says the letter.

The associations commented that the government should promote the active participation of demand, adequate allocation of risks, efficiency in the energy prices, symmetry and transparency in the conditions of competition for all the agents.

They recommend that the government should make an impact assessment of the proposed measures and establish an appropriate term for “consultation and understanding.”

The associations Acce, Acolgen, Andeg, Andesco, Asoenergía, Asocodis and the Chamber of Large Consumers of Energy and Gas of Andi signed this letter.

They believe that the government should offer long-term contracts assigned in market mechanisms, as established by law.

“We believe that conditions of competition are not balanced between different contracting mechanisms,” said the associations.

Bottom-Line: TWe understand the associations concerns but the point of this auction is to develop new sources of energy, not to merely continue with those the country already has. That said the rules should not restrict any player who is prepared to offer the needed technology.

The country must diversify its energy matrix, but it is important to establish the right conditions for all.

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