Regulation & Policy Oct 6, 2021 4:15 PM
Industry experts talked about possible energy prices, and possible energy rationing, among other relevant issues.
Asoenergia’s Sandra Fonseca told La Republica that there is uncertainty and concern about a possible increase in costs to the final consumer due to the increase in demand, as a result of the economic reactivation.
Asofiduciaria’s Germán Arce, said that the country began to look quickly for the replacement of the energy that Hidroituango has not yet generated, and it is vital to guarantee the entry into operation of the new projects.
Claudia Navarro, Partner at Brigard Urrutia, said that the Inspector General’s recent decision on Hidroituango will further escalate the risk of power rationing
Luis Guillermo Vélez, a Professor and researcher at Eafit University, said that demand could grow or there could be an ‘El Niño’ phenomenon in the short term, which could reduce hydro generation from one month to half.
Vélez said that considering the contract’s effect on prices, had Hidroituango’s generation entered in 2018, the market price of electricity would be 25% lower than what was reported in recent months.
Alejandro Mesa, Partner of Baker McKenzie’s energy, mining and infrastructure practice area, acknowledged that the country has a solid regulatory structure in electricity matters, but procedures such as prior consultations and issues related to communities affect the attractiveness of projects.
“Unfortunately, , the Statutory Law on Prior Consultation has come out of the legislative agenda, and that is a serious problem for investors to advance projects,” Mesa said.
Bottom-Line: Regulating prior consultation is an issue that every legislature wants to leave for the next one.
This has happened – government after government – for thirty years now.