Where would energy rates rise due to the El Niño phenomenon?

On the morning of this June 16, the Minister of Mines and Energy, Irene Vélezassured that the The rate of the energy service in the country will have an increase as a consequence of the arrival of the El Niño phenomenon.

The portfolio manager, who is in Germany with the President Gustavo Petromentioned that the electricity market scheme in the country implies that when the technologies with the highest cost of energy generation are used, there is an impact on the rate of this public service.

(Juan Manuel Santos, former president of Colombia and Nobel Peace Prize winner).

“We have a matrix in Colombia where 70% is hydraulic and 30% is thermal, under normal conditions, but when water becomes scarce, that is, the El Niño phenomenon, stress is generated that leads us to consume more thermoelectric“added the minister.

He then explained that when the thermoelectric power has a larger market share,”So, the price configuration does have an impact, and the price of the thermoelectric plant depends on the type of energy used for generation, which can be coal, liquid, and gas.“.

(First blue bond in Colombia to finance water conservation).

Vélez, by way of conclusion, mentioned that “Indeed, an impact is generated that derives from having to use thermoelectric plants”. He added that “there will be an impact on the price configuration and, above all, there will be an impact on those markets that are more exposed on the stock market“.

(Gas, Venezuela’s ‘lifeline’ to reactivate its economy).

Likewise, he emphasized that the departments of the country where the most significant adjustments in the public service tariff will be made are putumayo, huila and Cauca.

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