Energy Reform Under Debate: Draft Law Seeks to Lower Rates, Redefines Subsidies and Stirs Up Tensions in the Sector
Energy & Natural Resources attorney Milton Montoya was mentioned in an article published by Dinero magazine about Colombia's draft electricity tariff reform and the potential entry of state-owned companies into power generation, following Ecopetrol's acquisition of non-conventional assets such as the Windpeshi wind project in La Guajira. Mr. Montoya explained that the Electric Interconnection (ISA) is no longer legally confined to transmission and may participate in other stages of the energy supply chain, raising concerns about competitive neutrality and market concentration.
"The CREG and Superintendence of Residential Public Services face a major challenge: to ensure that Ecopetrol competes on equal terms with private generators, without advantages derived from its state character or its access to financing," he said. "In this sense, Ecopetrol's participation, and ISA's eventual entry, in power generation raises concerns about market concentration and free competition."