Colombia energy crisis: Senate investigates high tariffs and rationing risks

The Colombian Senate is investigating a deepening energy crisis characterized by high tariffs and the risk of electricity rationing. Senator Miguel Ángel Barreto reported that approximately 5 million Colombians lack access to electricity, noting that while incentives for clean energy have been prioritized since 2001, there has been insufficient focus on firm energy sources like hydro and thermal plants.

Financial instability within the sector is a major concern. The energy company Air-e reportedly owes approximately 2 trillion pesos to thermal plants, hindering its ability to purchase fuel. Meanwhile, Afinia faces debts totaling roughly 960 billion pesos owed by the Nation due to tariff options and unpaid subsidies.

Economic projections suggest that energy rationing could result in losses between 175 billion and 204 billion pesos per hour of outage, impacting between 1.5% and 1.7% of the national GDP. Such a scenario could also lead to the loss of 230,000 jobs and push over 200,000 people into poverty.