Medellín mayor calls for EPM rate freeze

Empresas Públicas de Medellín (EPM), Colombia's largest multi-utility company, could freeze electricity, water and gas rates under a plan proposed by Medellín mayor Daniel Quintero. 

In an open letter to President Gustavo Petro, Quintero, who is also EPM's chairman, requested authorization to cap prices as part of efforts to curb inflation. 

“As leaders, it is increasingly difficult to sleep peacefully when we see how the cost of living has risen for our citizens: supermarket bills have doubled, gasoline does not stop rising and public services have irrational prices. Making ends meet is increasingly difficult for families, especially the poorest," Quintero said in the letter, which was also published on social media. 

If approved, the move would impact consumers in 10 departments, in addition to San Andrés and Providencia islands.

Quintero's request follows the publication of a draft decree earlier this month in which Petro proposed to assume control of public service regulators Creg and Cra.

The move, which would allow Petro to fulfill a promise to reduce energy and water bills for final consumers, has been widely criticized by utilities, industry groups and sector analysts. 

On Wednesday, Medellín-based power company Celsia said its capital expansion plans were on standby because of "regulatory and intervention risks."