Energy rate relief, a problem?

Regulation & Policy    Jun 1, 2021 3:52 PM

House Representative Carlos Chacon held a political control debate on energy service charges.

The politician cataloged as ‘abusive’ the charges for the energy reconnection and the interest on the bill for the rebates applied in the crisis, among other issues, Semana reported.

Chacon said that Colombians are complaining about the increases in energy bills, as they are burdened with the bill payments.

He said that there is an absence of control and vigilance of energy services, as companies are charging interest for paying bills that users could not cover a few months ago.

“What used to be a relief has now become an ordeal,” Chacon said.

Chacon said that the reconnection charge is as high as CoP$58,000 in some cases, when the cut-off of the service is evidence that the family could not pay the bill.

He criticized the charges added to the user’s bill, since the tariff scheme implies that a part must go to the energy generator, another to the transporter, another to the distributor, a percentage for energy losses plus another cost for damages.

Chacon said that other costs are added through resolutions, such as the one issued by CREG in 2020, which establishes an annual tariff of CoP$8,533 for XM.

The congressman said that 75% of the energy companies are private, which means a privatization of this public service.

“That privatization makes oversight that much more necessary,” Chacon concluded.

Bottom-Line: The increase in energy service has generated much unrest among Colombians, especially during the pandemic.

Authorities should pay special attention to this issue, and conduct a thorough review of the bundled charges.

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