New Reliability Charge Auction?

Company News, Energy, Regulation & Policy    Dec 3, 2021 2:46 PM

The possibility that Hidroituango will not start operating in 2022 with its first two turbines has generated a discussion on whether it would be necessary to call for a new energy auction.

Another question is whether Hidroituango’s eventual default would increase energy tariffs, Valora Analitik reported.

The Minister of Mines and Energy (MinEnergia), Diego Mesa Puyo, said that this alternative is being evaluated internally and by sectoral entities such as CREG, UPME and XM.

“We are waiting for what the outcome will be, the ruling still has to pass a control of legality in the State Council; which means, that today the work continues as it has been,” Mesa explained.

Mesa said that the entity will announce if there is a decision on whether to call new auctions, when there is clarity on the project’s outlook.

MinEnergia added that the energy supply is guaranteed for the next few years.

In addition, Mayor of Medellín, Daniel Quintero Calle, said that the goal of both the municipal administration and EPM is to guarantee the continuity of the work.

Quintero said that the continuity of the project is guaranteed, and EPM is analyzing how far the possible extension with the current contractors can go, if they have the economic and legal conditions to continue with the project, and move forward with the bidding process.

Bottom-Line: The truth is that uncertainty about Hidroituango continues to grow, despite Quintero’s efforts to send messages of calm.

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