The company Air-e, in charge of providing electric energy service in the departments of Atlántico, Magdalena and La Guajira, presented to the Superintendence of Industry and Commerce (SIC) a complaint against energy generators “for restrictive practices of competition.”
The company asks the SIC to initiate a preliminary investigation and to carry out inspection visits that lead to “an administrative investigation against all energy generators for the alleged commission of conduct contrary to free competition by the oligopoly”.
Among his arguments, Air-e insures the energy generators, with the aim of distorting the market and increasing, in its opinion, the prices of the energy market, They have engaged in unfair practices that have been reflected in the excessive increase in energy prices.
In fact, he says that In October 2023 there was a 400 percent increase in the energy stock market, which was justified with an alleged projection of water scarcity. However, by that date the country was not going through a reservoir crisis.
Photo:iStock
The price of energy is not set by the generators at will
Furthermore, Air-e affirms that the fact that users have had to assume the speculative price of the energy market, generated unjustified enrichment on the part of the generators.
Given these statements, Acolgén has reiterated on several occasions that the price of energy that is traded on the stock market “does not significantly increase the energy rate that we pay on the bill.”
The union explains that, of the total energy that reaches homes, on average the price of 80 percent is negotiated several years in advance in long-term contracts. This allows users to have a stable price that is oblivious to variations that can have the other 20 percent of the energy, which is what is traded on the stock market every day.
Acolgén is also forceful in pointing out that “the price of energy is not set by the generators as they please”, Since the regulation establishes the elements that companies must consider to make their offers on the energy exchange, which includes aspects such as fuel costs, operation and maintenance costs, and the perception of risk.
Photo:Afinia
Isagen, an energy generation and marketing company with 22 generation plants in Colombia, also decided to respond to the complaint filed by Air-e and assured that the sale on the energy exchange is not the company’s main activity.
In fact, Isagén affirms that in times of low hydrology and high prices on the stock market it has been a net buyer of energy, given the low regulation of the portfolio of reservoirs it manages.
“This has happened on several occasions in recent months, when our purchases on the stock market have been higher than our sales and we have assumed the cost of high prices to meet our obligations to distributors“he adds.
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Do power generators dump water on purpose?
The price of energy on the stock market did not increase due to these discharges
In his complaint, Air-e also says that last year power generators dumped a quantity of water proportional to the energy consumption of the departments of Magdalena and La Guajira as a justification for the increase in October.
Regarding this accusation, in December 2023 the president of Acolgén, Natalia Gutiérrez, assured that these water discharges are done when It rains more than expected and for technical reasons that prevent that water from being used to generate more electricity.
Additionally, it indicates that these discharges may obey environmental regulations that require generators to maintain the environmental flow and, thus, operate responsibly.
“The price of energy on the stock market did not increase due to these discharges and, on the contrary, this value fell during these events since, thanks to the composition of our electrical matrix, the price is reduced when there is an abundance of water,” clarified the union leader in an opinion column published in Portafolio.
Hidroituango
Photo:Courtesy EPM
Isagén discounts for Air-e
Only the discounts to the Air-e company add up to 21,000 million pesos during
the years 2022-2023
Another point that Air-e mentions in its complaint is that The generators have decided not to sell energy to vulnerable population markets, to take it to the stock market where they can “speculate and charge higher prices” that end up being assumed by consumers in their monthly bill.
However, Isagén revealed that it has granted unilateral and voluntary discounts on long-term contracts. Only the discounts to the Air-e company add up to 21,000 million pesos during the years 2022-2023.
Likewise, it states that it has deferred payments corresponding to several long-term energy sales contracts and stock market transactions under conditions that improve the cash condition of the distributors. The balance of these agreements with the company Air-e to date exceeds 20,000 million pesos.
The company also argues that through the sale of energy contracts under the pay what is generated modality, enabled by the National Government, offered 1,345 gigawatt hours of energy to Air-e, so that it could reduce its exposure on the stock market.
Isagén assures that this offer represents close to 9 percent of its annual generation capacity; however, Air-e only signed contracts for 981 gigawatt hours for the years 2024, 2025 and 2026.
This was the statement issued by Isagen
In accordance with the above, this was the statement that Isagen issued after what happened:
“Faced with the complaints filed with the Superintendence of Industry and Commerce by Air-e against the Energy Generating companies, Isagen allows itself to clarify:
Isagen’s commercial strategy consists of selling energy dispatches through long-term contracts, seeking the financial sustainability of the company and stability in energy prices for its customers.
Therefore, selling energy on the stock market is not the company’s main activity. In fact, in times of low hydrology and high stock market prices, Isagen has been a net buyer of energy, given the low regulation of the portfolio of reservoirs we manage. This has happened on several occasions in recent months, when our purchases on the stock market have been higher than our sales and we have assumed the cost of high prices to meet our obligations with distributors.
In the year 2023, in preparation for the El Niño phenomenon, Isagen made the decision to increase the aggregate level of its reservoirs to 92% of their capacity. Decision that allowed us to fulfill our commercial commitments and thus guarantee normal electricity supply in the country during the extreme drought season that occurred at the beginning of the year.
Isagen has understood the particularities of the most vulnerable markets in the country, and by virtue of the above, and within the framework of the National Government’s Tariff Justice initiative granted unilateral and voluntary discounts in long-term contracts. Only the discounts to the Air-e company add up to 21 billion pesos during the years 2022 – 2023.
In the same way, it has deferred payments corresponding to several long-term energy sales contracts and stock market transactions under conditions that improve the cash condition of the distributors. The balance of these agreements with the Air-e company to date exceeds 20 billion pesos.
Through the sale of energy contracts under the ‘Pay what is generated’ modality, recently enabled by the National Government, Isagen offered 1,345 GWh of energy to Air-e so that said company could reduce its exposure to the Stock Market, this offer represents close to 9% of ISAGEN’s annual generation capacity. However, Air-e only signed contracts for 981 GWh for the years 2024, 2025 and 2026.
Isagen rigorously complies with all regulations that govern the electricity sector and general competition standards. Likewise reiterates its total willingness to collaborate with the Superintendency of Industry and Commerce and will provide all the required information, certain of being able to demonstrate its correct conduct.”
