El Niño phenomenon

The El Niño phenomenon is a climatic event. It is caused by the warming of the Pacific Ocean, which generates high temperatures and increased risks of droughts.

The drought causes the reservoirs from which Colombia obtains 70% of all its electricity through hydroelectric plants to start running out. This shortfall is supplied by thermoelectric plants, which are more expensive because they use coal, gas, and liquids, which are more expensive than using water to generate energy.

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In May alone, the price per kilowatt hour increased 148% (see link), and El Niño is only starting! We end up paying that increase in our bills, as for every one hundred pesos that the exchange price rises, bills can increase between 2 and 3 percent (Andeg).

Droughts and high temperatures also affect agricultural production. Raw material and food prices increase, which affects food-importing countries more severely.

Colombia, after the opening and with the FTAs, went from importing 700 thousand tons per year to 15.9 million tons of food that can be produced here. These imports not only affect labor and agricultural production, but 65% of the inflation that the country has suffered in recent years is due to these food imports (see link).

The Petro Phenomenon

To the natural phenomenon, we must add the political phenomenon. Petro’s policy of not looking for more gas and oil means that in the short term, we will have to import it, and imported gas can cost up to 5 times more than domestic gas.

Besides, Petro and his minister Velez promised tariff justice by reducing electricity costs, mainly along the coast where they have unaffordable tariffs.

So far, as pointed out by the Liga de Usuarios de Servicios Públicos (see link), the measures have been insufficient, and instead of relief, new increases have already been announced for the end of the year. Another unfulfilled promise.

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And it is not only in electricity, in terms of fuels, which is the most used energy for transportation, Petro, following the dictates of the IMF, has been increasing month by month the gallon of gasoline, and will not stop until reaching $16,000 this year (we do not know the next), to match the price of gasoline in the Gulf of Mexico, despite the fact that Colombia produces two-thirds of its gasoline and is self-sufficient in oil.

Why do we have to be charged per gallon as if we brought it from the Gulf of Mexico from the United States when we produce it here at a lower value?

All of this drives up the cost of living in the midst of high inflation.

Therefore, 1. Colombia requires a policy of adaptation to climate change to cushion the impacts of natural phenomena. 2. The country’s energy transition should not be based on campaign promises, but on studies, data, and, above all, should take into account the socioeconomic reality of our nation. 3. The electricity tariff policy must be urgently reviewed (not only the indexers but also the formulas including the minimum profitability guarantee given to the electric oligopoly) and those of the Coast NOW! 4. Raising fuel prices does not only affect “the rich” as the president has said but all Colombians.

The El Niño phenomenon added to Petro’s end up being the perfect storm for our beleaguered wallets.

@AndresPachónTor

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