What would be the change that Petro would make to the calculation of the energy rate

What would be the change that Petro would make to the calculation of the energy rate

Amid the increases in electricity rates, President Gustavo Petro announced that he will seek to take control of Creg to make changes to the formula used to calculate the energy rate. This was announced in Cartagena, at the closing of the Andesco Congress, after both the union and the companies were debating possible solutions to the cost increases of this public service.

The president indicated that he would make use of a resource that would allow him to assume the functions of the Commission for the Regulation of Energy and Gas (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 that article,” he stated.

(Read: Government would take control of Creg and modify energy rates).

The president referred to Article 290 of the National Development Plan issued in 2019. This states that “Creg, within the framework of the function of guaranteeing the efficient provision of public service, of promoting competition, avoiding abuses of a dominant position and guaranteeing the rights of users, within the regulation on fuel gas services , electricity and public lighting, will include” and highlights 5 points.

However, it is the paragraph that indicates that the Commission can modify fare formulas “when this is strictly necessary and motivated by the inclusion of new agents, activities or technologies, complying with the established criteria”. And the third paragraph indicates that these powers can be assumed by the president or by the Ministry of Mines and Energy.

However, this article (of new agents) refers to the fact that this calculation can be modified “motivated by the inclusion of new agents, activities or technologies”. In other words, not in any situation the Government could take over this role specifically from the Commission.

(See: The requests that Petro made to strengthen the popular economy).

Gustavo Petro, President of Colombia.


According to Nicolás Arboleda, a senior associate at Baker Mckenzie, an expert in Mines and Energy, this means that unless the inclusion of a new agent is verified as stipulated in the article, the president could not intervene in this formula in the function of the Creg.

The scope of these paragraphs of the National Development Plan is still in doubt, although the The electricity sector did take this statement with doubts. “You have to wait for things to happen. Although it must be taken into account that the Development Plans have a term of four years, so I do not think it will have an impact”, she pointed out.

On this point, Arboleda points out that the Plan remains in force until the new one is issued, in which the provisions are repealed. In other words, at the time the new PND is established it could be maintained or repealed, but it is currently in force. However, Arboleda points out that he does not have the scope for President Petro to assume all the functions.

(Also: Government bets on agriculture with increased production).

In the event that the president decrees that he assumes the function, it could be sued before the Council of State for Nullity.

Andesco’s president affirmed that the sector is willing to make decisions to obtain results. “What we are presenting to the government is much faster and allows us to face the high price of the bills.”

Daniela Morales Soler

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