Colombia facing 'imminent' power cuts

Parts of Colombia face looming power outages amid a deepening sector-wide liquidity crisis, a government watchdog warned on Monday. 

In a statement, comptroller general Carlos Rodríguez said electricity providers had suffered a series of economic setbacks, including delays in the payment of government subsidies.

"The comptroller general of the republic calls on the national government... to take the actions they deem appropriate to prevent the impact on the provision of public electricity services," Rodríguez said. 

He added that around a fifth of Colombia's population could be affected, particularly in the Caribbean coastal region and in Nariño, Chocó and Vichada departments.

"This situation could lead to an imminent risk of rationing and even the cessation of energy service provision to more than 10 million people," the statement said. 

In addition to unpaid subsidies that were promised in the national budget, Rodríguez said stakeholders have been impacted by a deficit resulting from an optional rate subsidy program and the failure of network operators to meet obligations in the wholesale energy market.

He warned that government bodies faced disciplinary action by national oversight bodies if they did not meet budgetary commitments to public utilities.

In July, national distributors' association Ascodis said that unpaid subsidies totaled 500bn pesos (US$120mn), while a shortfall associated with the optional rate program had exceeded US$1.1bn.

A report published late last year by grid operator and wholesale power market coordinator XM warned that 36 distributors and retailers were in danger of financial collapse.

The government did not immediately respond to the comptroller's statement.