Colombia's Petro government proposes new tax on electricity market agents

President Gustavo Petro's administration is preparing a tax reform to be presented on 20 July that aims to raise 21.8 trillion pesos in 2027, increasing to 37 trillion by 2030. As part of the plan, Energy Minister Edwin Palma will request an additional levy on electricity market participants to help repay sector debts and cover outstanding tariff‑option balances.

The electricity system faces a liquidity shortfall of about 5.1 trillion pesos, with deficits split among subsidies, unrecovered tariff‑option balances, and unpaid bills from protected users and public lighting. The government argues new taxes are needed to fund these obligations amid a rigid public finance framework that also has to cover health, pensions, security and state operations.