Colombia’s Energy Minister Edwin Palma has proposed that higher-income households and companies should take on the government’s debt to power distributors, which has left some of the country’s utilities at risk of closure, as reported by Bloomberg.
The proposal would require congressional approval to move forward.
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Palma blamed lawmakers for failing to pass a proposal in 2024 to raise 12tn pesos ($2.9bn) through higher taxes to cover the payment.
As of February 2025, the government’s outstanding debt to energy distributors amounted to 3.1tn pesos ($753.3m) from fees that were not charged to households during the Covid-19 pandemic.
When including subsidies, the total debt reaches 7.4tn pesos, as reported by the industry group Asocodis.
The Colombian government is currently preparing for an electricity generation auction, amidst warnings of potential future power shortages, as reported by Reuters.
Energy sector associations have raised concerns about the risk of blackouts in the medium term, citing delays in environmental licensing and authorisations for wind and solar energy projects as significant factors.
During the Colombia Genera conference in Cartagena, Palma stated the government’s intention to secure a large amount of energy, preferably clean and renewable.
“We hope to receive the largest amount of energy, hopefully clean, renewable… which will allow us to have guaranteed energy so that this country does not suffer what neighbouring countries have suffered,” he said.
The government’s plan includes the incorporation of 6GW of clean energy into Colombia’s electricity grid by the end of President Gustavo Petro’s term in August 2026.
Further details will be released soon.
