Colombia Implements Electricity Bill Penalties to Curb Consumption Amid El Niño Fears

Colombia's energy regulator, CREG, has introduced a temporary program to discourage excessive electricity use and protect the national power grid during the anticipated 'very strong' El Niño phenomenon. The measure, detailed in Resolution 101 120 of 2026, took effect on August 15 and will initially last for six months.

Under the program, households and businesses that surpass their typical energy consumption will face gradual surcharges, with the penalties varying by social stratum. However, municipalities impacted by the recent August 10 earthquake are exempt from these charges. The CREG clarified that these extra charges do not alter the base electricity rate or function as a tax.

The initiative operates on two fronts: savings incentives and excess consumption penalties. Users who reduce their monthly consumption below 90% of their reference goal will accumulate credits, which will be recognized financially on their bills at the end of the regulatory cycle. Conversely, those exceeding 110% of their average consumption will pay an additional fee for each kilowatt-hour (kWh) over the limit.

The CREG stated that the money collected from these additional charges will not generate extraordinary profits for service providers. Instead, it will be exclusively used to fund the economic incentives for users who successfully lower their energy demand. "Given the confirmed occurrence of the El Niño Phenomenon and its foreseeable intensification during the second half of 2026, the Commission finds it necessary to adopt regulatory measures aimed at strengthening the reliability and availability of energy in the SIN," the regulatory body argued in its resolution.

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Given the confirmed occurrence of the El Niño Phenomenon and its foreseeable intensification during the second half of 2026, the Commission finds it necessary to adopt regulatory measures aimed at strengthening the reliability and availability of energy in the SIN.