By: Franyi Sarmiento, Ph.D., Inspenet, September 15, 2022
Efforts by the Colombian government to curb rising electricity prices could signal further government intervention, possibly weakening the country’s utility credit profiles, ratings agency Fitch said this week.
The president of Colombia, Gustavo Petro, mentioned last week the possibility of intervening before the Energy and Gas Regulatory Commission (CREG), to initiate alternatives that relieve users in the face of an increase in the prices of public services in the current context of high inflation.
For fitch, political uncertainty and factors such as the lack of transparent or independent regulatory processes pose a significant risk to the credit profile of public service companies.
“Regulatory proposals designed to curb inflationary pressure in energy markets could weaken the profitability of public service companies by preventing price increases to offset rising production costs,” explained risk rating agency Fitch.
Most of Colombia’s utilities have strong investment grade ratings and a stable outlook.
This material from the colombia.esesuro.com portal was edited for clarity, style, and length.
Source : https://colombia.eseuro.com/local/131208.html
Photo: ShutterStock
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