Colombia To Reduce Electricity Rates

Colombia's Ministry of Mines and EnergyMinistry of Mines and Energy announced agreements between the National Government and the Energy and Gas Regulatory Commission (CREG) to reduce energy rates in the country.

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According to the Ministry, the short and medium-term measures will help alleviate last year's increase in electricity tariffs. The reduction is expected to start materializing in November. 

The Minister of Mines and Energy, Irene Vélez Torres, said via Twitter: "We kept our word. Gustavo Petro's government has an agreement to lower electricity rates. We have had more than 23 bilateral meetings with companies and dialogues with users, congressmen and authorities."

The marketers, the ones collecting the money from the electricity tariffs, will be able to defer at least 20 percent of the obligations from September to December 2022 with the generators, transmitters and distributors, who have 18 months to pay the deferred amounts.

As a result of the work with the comision CREG, today we present 3 regulatory documents with which short and medium-term actions are initiated to reduce electricity rates in Colombia. Thanks to dialogue and agreement it is possible to announce solutions to the country.

The rate to govern the deferred obligations will be the lowest of the rate reported by the XM market administrator and a preferential rate.

The renegotiation of regulated market contracts between marketers and generators is also included in the initiative, with the modification of payment times and consumption periods in 12 months.

The plan also seeks to optimize the operation of thermoelectric power plants. The agreements reached have involved the government, generating companies, transporters, distributors, marketers and consumers.

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