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April 19, 2023
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‘Excessive market intervention is worrying’: Trade Council

'Excessive market intervention is worrying': Trade Council

By means of a letter addressed, punctually, to President Gustavo Petro Yet the Minister of Mines and Energy, Irene Vélez, he National Trade Union Council (CGN), as spokesperson for the 32 most representative unions of the Colombian economy“, he made a series of comments on the draft decree ‘Policies and guidelines to promote the efficiency and competitiveness of the public electricity home service’.

Said document was published on March 25, 2023 by the Ministry of Mines and Energy.

The CGN assured that the productive and business sector of the country supports permanent
to the National Government and that the joint work that is carried out is for find solutions that help mitigate inflation that affects the country.

For this reason, the companies that provide the electricity service joined the Agreement for Tariff Justice, allowing a reduction in tariffs between the months of September and October 2022, changing the growth trend that had been occurring up to now.“, he recalled.

Regarding the project related to promoting the efficiency and competitiveness of the public energy service, the union highlighted that the initiative proposes “expedite regulatory development of issues that need to be addressed by the regulator” and the promotion of this regulatory activity, without ignoring the progress that the Energy and Gas Regulation Commission (Creg) has had in them in recent years, it is going in the right direction“.

Energy rates.

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However, he believes that changes in public policy and regulation that are carried out, in these and other matters, “They must be done within the institutional framework, according to the functions of each entity and with technical and economic studies and analyzes that ensure the provision of energy and gas services, without jeopardizing the reliability of the system or the sustainability of the agents.“.

Thus, although it recognizes that the decree project is valid in its search to reduce energy rates for end users, it also considers that “Excessive market intervention (in aspects related to the formation of prices in the markets and contracts, the valuation of resources and the guarantee market) will end up achieving the opposite effect, even compromising the availability of the energy resources required to meet the demand. growing domestic energy demand“.

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