National Government announced reduction in the energy stock market: it will go from 20% to 5%

The National Government reported that it will reduce the participation of the energy exchange in the Colombian electricity market, going from the current 20% to 5%. This measure was reflected in the draft decree “public policy guidelines to guarantee the reliability and rate stability of the electric energy service”, presented by the Ministry of Mines and Energy. The project noted that the country’s energy matrix depends largely on hydraulic generation, which contributes 61.91%, followed by thermal generation, with 28.51%. Read also: 2025 starts with an increase of $91 in gasoline and $169 in the ACPMAccording to the Justification Report Format, this composition makes the electricity market particularly vulnerable to weather conditions, especially changes in the high and low rainfall seasons . In the context of the Wholesale Electricity Market (MEM), marketers have two main mechanisms to acquire the necessary energy for regulated users: long-term contracts and the energy exchange. Currently, long-term contracts represent 80% of purchases, while the energy stock market covers 20%. However, these proportions are not stable or homogeneous among all marketers, which generates high price volatility. The document also highlighted that, despite climatic and hydrological variations, the ideal percentage of stock market sales should remain below 5%. For this reason, the Government proposed that generators from hydraulic sources and Non-Conventional Sources of Renewable Energy (Fncer) sell at least 95% of their production through long-term contracts. This measure seeks to reduce the exposure of marketers to the volatility of the energy market and, consequently, mitigate fluctuations in electricity rates that affect regulated users. You may be interested in: Contingency in Puerto Carreño: Petro called on public service companies to adapt to clean energy“The dispersion in the quantities sold on the stock market and price variations have generated a significant impact on the costs assumed by final consumers,” points out the project. With this initiative, the Government hopes to guarantee greater stability in the electricity market and protect users against unexpected increases in energy rates. The decree is still in the process of evaluation and discussion for its implementation.

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