One of the viacrusis that the population of the Caribbean coast has experienced most frequently in recent years is the electrical issue. When the government promise of changing the regional operator (Electricaribe) by two new players (Air-e and Afinia) was achieved, hopes for a change in service quality flourished again, however, although there have been improvements, there are still there is a long way to go.
(Tourism shows signs of recovery in Latin America after pandemic).
Citizens of the Caribbean region have experienced an increase of 73.7% in their billing from June of last year to date, according to the Mayor’s Office of Barranquilla; and the reason is basically explained in that the old Electricaribe did not execute the stipulated investment plan to ensure the maintenance and reliability of technical equipment.
As a consequence, the new companies found themselves with a panorama of an advanced deterioration of the networks that generated the constant blackouts.
It is worth remembering that the unitary Colombian Caribbean market was fragmented into two: Air-e serves 1.2 million customers in Atlántico, La Guajira and Magdalena; while Afinia is responsible for 1.5 million users in the departments of Bolívar Cesar, Córdoba and Sucre.
This gap was compensated by the Energy and Gas Regulatory Commission (Creg) allowing companies an increase via rates through resolutions 010 of January 30, 2020 and 078 of June 24, 2021.
(Public services had an impact on the IPC due to rate indexation).
As a consequence, heResidents of the lowest strata in Barranquilla, for example, are paying up to 2.5 times more than what their peers in Bogotá can do.
“The rise in energy rates has become unsustainable due to its high impact on the household economy and on the production costs of companies. This situation can lead to a serious deterioration of the market because it seriously affects users’ ability to pay, which in turn could lead to a deterioration of the Air-e and Afinia portfolio, encourage fraud and energy theft ” Manuel Fernández Ariza, executive president of the Barranquilla Chamber of Commerce, told Portfolio.
In the capital of Atlántico, according to calculations by the Mayor’s Office, a stratum 1 household may be paying a monthly bill for $150,000, while a bill in stratum 4 is around US$500,000.
On the other hand, during the first months of 2022, companies in the eastern Atlantic zone (Soledad, Sabanagrande, Malambo and Galapa) have paid 50.2% more, on average, than in the same period of 2021.
“These increases in the collection of the energy bill, in turn, increase the costs associated with production for companies, affecting them in this process of economic reactivation and reducing their competitiveness against competitors. Electricity represents between 7% and 15% in the cost structure of some of the member companies of CEO del Atlántico”, warned Diana Cantillo, executive director of the CEO of the Atlantic.
Between January and July 2022, according to El Universal de Cartagena, which cites official sources, the cost of a kilowatt hour in Bolívar has increased by $111.29 from $813.70 in January to $924.99 in July. .
“The effect is enormous, the payment of public services and accommodation for households in Montería compromises 35.2% of total household expenses. The increase in energy prices in the department limits the purchasing power of households and restricts them in paying for other services or purchasing goods”, said Kelina Puche, a member of the board of directors of the Atarraya think tank.
“The cost structure of a company will also be limited, high energy service costs, in regions where it is not possible to work without air conditioning, limits the competitiveness of companies, which could be forced to work to meet their obligations in the material or failing that, transfer this increase in its operating costs to the services or products it offers, which ultimately leads to a spiral structure that complicates the inflationary situation.”, Puch added.
Álvaro Romero Guerrero, president of the Chamber of Commerce of La Guajira, described as “total rejection” this increase in electricity in the department, since it slows down the competitiveness of entrepreneurs in the region. “It is not fair that the inhabitants have to assume the losses of the companies (…) That must be reviewed (…) The low coverage in the region must also be reviewed”, Romero told Portfolio.
The mayors of the capital cities of the Colombian Caribbean presented the incoming government of Gustavo Petro with a roadmap with six axes to solve the electrical problem.
“Although the region has reached important levels of development and progress, we cannot allow these advances to continue at the expense of the provision of energy services and their rate increases (…) We are going to end up affecting the closing of the social gap, economy and competitiveness”, said the mayor of Barranquilla, spokesperson for the initiative.
Thus, among the administrative initiatives are make the necessary public investments directly; create a price stabilization fund for businesses and households above the national average; eliminate the Producer Price Index from the generation component and incorporate generators and transmitters into the tariff option scheme.
Likewise, two other initiatives complete the portfolio of proposals: the strengthening of electricity standardization projects and internal user networks, as well as supporting energy self-generation by strengthening the energy transition law in the region.
“The basic solution is an agreement that generates equity with the Caribbean, hopefully with indicators that appropriately reflect the costs of the sector and avoid regional disparities and shocks in rates like the ones we lament today,” added Pumarejo.
The Atlantic private sector supports initiatives launched by the mayor of Barranquilla and also seeks to contribute a fee to the solution of this electricity crisis.
Efraín Cepeda Tarud, executive president of the Atlantic Interunion Committee, pointed out that this central union seeks to propose a “Flexibility of the times so that the operators comply with the commitments established with the Creg”.
“There is reference to the issue of investments, at least in the case of Air-e, $2.6 billion was agreed in the first five years. And the other is the commitment to reduce losses by the Creg”, specified Cepeda Tarud.
ROBERTO CASAS LUGO
BRIEFCASE
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