BTN News: In a significant move aimed at addressing the high energy costs in the Caribbean region of Colombia, key stakeholders convened to negotiate a reduction in the energy purchase and sale contracts that currently impact special zones and substandard neighborhoods. The week-long negotiations, scheduled from August 11 to 17, 2024, involve the energy distributors Air-e and Afinia, and are closely monitored by the Superintendency of Industry and Commerce (SIC) along with the Ministry of Mines and Energy. These efforts are part of a broader initiative to alleviate the financial burden on residents in the Caribbean region, who have long struggled with disproportionately high energy tariffs.
The initial meeting, held at the Atlántico Governor’s Office, was led by Minister of Mines, Omar Andrés Camacho, alongside Acolgen president Natalia Gutiérrez. The meeting was attended by the governors of Atlántico, La Guajira, and Sucre, as well as local mayors, coastal congress members, and regional business leaders. This diverse group of attendees underscores the significance of the issue and the widespread support for finding a sustainable solution to the energy tariff problem.
One of the key agreements reached during this meeting was the establishment of a working group to propose and define a comprehensive plan addressing structural issues within the national energy system. This group, which will include representatives from the Ministry of Mines, the Energy and Gas Regulatory Commission (CREG), the Mining and Energy Planning Unit (UPME), energy generators, distributors, transmission companies, and regional authorities such as RAP Caribe, aims to deliver actionable results by the end of September 2024. The focus will be on crucial issues like fair pricing, minimum vital consumption, new energy auctions, and the PRONE fund, which supports energy projects in vulnerable areas.
Additionally, the meeting resulted in an agreement to collaborate with local governments to scrutinize and possibly revise additional charges included in energy bills, such as those for waste management, street lighting, and security. These extra charges have been a point of contention, with many arguing that they contribute significantly to the high cost of energy in the region. The need for strategies to regularize energy consumption in these areas was also highlighted as a critical component of the broader effort to reduce costs.
Senator Pedro Flórez, representing the Pacto Histórico party, publicly supported the Ministry of Mines’ proposal, emphasizing the importance of renegotiating contracts, adjusting the tariff calculation formula, and implementing fair pricing mechanisms. He pointed out that these steps are crucial for supporting the most vulnerable populations in the Caribbean region.
Acolgen President Natalia Gutiérrez expressed the willingness of energy-generating companies to review each contract individually, particularly those serving special zones in the Caribbean. She emphasized that all stakeholders in the energy supply chain—generators, transmitters, distributors, and sellers—must be involved in the renegotiation process. She also noted that a significant portion of the energy tariffs is made up of surcharges imposed by local and regional governments, suggesting that these too should be reassessed.
This initiative marks a critical step towards addressing the long-standing issue of high energy tariffs in the Caribbean region. The successful renegotiation of contracts and the establishment of fair pricing could provide much-needed relief to residents who have been disproportionately affected by the current energy pricing structure. As the negotiations progress, there is cautious optimism that these efforts will lead to a more equitable energy system for one of Colombia’s most vulnerable regions.
