During the Andesco Congress 2022, President Gustavo Petro announced that he will seek take control of the Energy and Gas Regulatory Commission (Creg) to make changes to the formula used to calculate the energy rate.
(See: Price indexation: what it is and how it would be affecting costs).
The president’s comment was given during the closing of the event and after both the union and the companies were discussing the possible solutions to the increases in the costs of this public service.
Petro indicated that he would make use of a resource that would allow him to assume the functions of the Creg to change the formulas that are reviewed every five years.
“We have an article of a law made by former President Iván Duque in his Development Plan that allows us to assume the functions of the Creg. We are going to use this item.“, he claimed.
(See: Petro points to energy rates as ‘markers of poverty’).
The president referred to article 290 of the National Development Plan issued in 2019. In the first paragraph it is indicated that the Creg can modify the formulas of the rates “when this is strictly necessary and motivated by the inclusion of new agents, activities or technologies, complying with the established criteria”.
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And the third paragraph indicates that these powers can be assumed by the president or by the Ministry of Mines and Energy.
(See: Tariff option: an alternative to lower electricity prices).
However, Nicolás Arboleda, a senior associate at Baker Mckenzie, an expert firm in Mining and Energy issues, explained that this article does not have this scope, since it refers specifically to the case of a new agent entry.
(See: Indexation and dollar also weigh on inflation).
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