The Superintendency of Residential Public Services (SSPD), Colombia’s public utilities regulator, has today closed the file on the investigation against Zona Franca Celsia, a thermal plant, for its conduct during electricity price spikes in Colombia in 2015 and 2016.

During the El Niño Southern Oscillation climate phenomenon, low water inflows led to spikes in electricity prices. Hydroelectric generation comprises 70% of the installed capacity in Colombia, but during El Niño thermal plants are critical to cover demand for electricity. Zona Franca Celsia was investigated for plant unavailability and accused of failure to comply with the delivery of firm energy during the period between 27th February and 4th March 2016.

In its final ruling, the SSPD concluded that failure to comply was a result of force majeure, and found no reason to impose penalties on the company. During the investigation process, Frontier provided an expert report on the regulation of firm energy contracts for Zona Franca Celsia.

Frontier regularly advises private and public sector organisations in the energy sector in Latin America and all over the world.

For more information, please contact Julia Caldano on j.caldano@frontier-economics.com or call +34 91 343 2350.