Clifford Chance
Colombia: Cargo Por Confiabilidad – 2019 Auction Process
26 February 2019
Reliability Charge:
- The Reliability Charge (Cargo por Confiabilidad) is a mechanism created in 2006 by Colombia's Energy and Gas Regulation Commission (Comisión de Regulación de Energía y Gas or "CREG") to ensure the supply of energy to the Colombian market during periods of drought, such as during the 'El Niño' phenomenon.
- The mechanism is based on Firm Energy Obligations (Obligaciones de Energía Firme or "OEFs") awarded by the Colombian Administrator of the Commercial Exchange System (Administrador del Sistema de Intercambios Comerciales or "ASIC") in accordance with CREG's regulatory framework.
- OEFs are obligations undertaken by generators to provide reliable and stable energy to the power matrix. Generators are compensated for the availability of their installed generation capacity with a fixed USD amount per KW/hour, paid monthly during the awarded OEF period, regardless of whether any energy is effectively delivered into the system.
