Colombia confirms Air-e intervention

Colombia's government has moved to guarantee electricity services for customers of financially stricken distributor Air-e, a senior official confirmed.

According to energy minister Andrés Camacho, electric power and gas commission Creg will intervene to prevent potential blackouts in the Caribbean coastal region. 

"We have approved the intervention by Creg," Camacho told a senate committee hearing. "We will not allow the market to override people's rights."

According to the government, Air-e currently has debt commitments totaling 1.8tn pesos (around US$420mn).

The Barranquilla-based company has blamed its financial plight on soaring wholesale energy prices, surging operational costs and mounting unpaid bills from customers.

Air-e, formerly Caribe Sol, is jointly owned by Empresa de Energía de Pereira and Latin America Capital Corp.

It is the third largest distributor in Colombia, serving 1.25mn users in the departments of Atlántico, La Guajira and Magdalena.