Colombia's Energy Grid on the Brink: Government Debt Sparks Crisis Fears

Colombia's Energy System in Crisis: Government Debt Threatens Power Supply Bogota, Colombia – May 17, 2025 – Colombia's energy sector is sounding the alarm, warning of a potential crisis in the nation's power grid. At the 17th Annual Energy Congress, representatives from various energy companies painted a grim picture, citing significant unpaid debts from the government as the primary cause. "The main problem we face is a lack of energy," stated Natalia Gutiérrez, president of Acolgen, the Colombian Association of Energy Generators. She highlighted the government's failure to pay for subsidies intended for low-income families, along with stalled infrastructure projects, as major contributing factors. The situation is particularly concerning given that the government owes nearly 8 billion pesos to energy companies. This financial strain is not only impacting the companies themselves but also threatens the reliability of energy service to households across the country. Germán Castro, the delegated comptroller for the mining and energy sector, added, "If the demand in Bogota increases, there won't be enough energy." He also warned about the risk of systemic problems throughout the entire chain. While Minister Palma has pledged to work with the Ministry of Finance to address the issue, the urgency of the situation cannot be overstated. Fedesarrollo's study reveals that 81% of energy subsidies are reaching non-poor households, highlighting the need for improved targeting of aid. The ongoing delays in crucial infrastructure projects, such as a transmission line connecting Bogota to the rest of the country, further exacerbate the problem. The energy sector's plea for immediate action underscores the critical need for the government to address its debts and ensure a stable and reliable energy supply for all Colombians.