Companies in Colombia Pay the Highest Electricity Prices in Latin America
Companies in Colombia pay the highest electricity prices in Latin America, surpassing Chile, Mexico, and the U.S., according to Energy Master.
Colombia now tops the regional ranking for the most expensive electricity in Latin America. According to a study by Energy Master, presented at the Energy Master Summit in Bogotá, the country pays an average of USD 0.20 per kWh, exceeding rates in Peru (USD 0.175), Chile (USD 0.148), Mexico (USD 0.132), and even the United States (USD 0.135).
Impact on Business Competitiveness
Electricity tariffs in Colombia have surged 68 % over the past decade, rising from $465 to $780 per kWh between 2015 and 2025. This increase directly affects industries like textiles, which now pay up to 35 % more than their Chilean counterparts, undermining their competitiveness in global markets.
Households Under Pressure
For Colombian households, electricity has become one of the most burdensome monthly expenses, especially amid persistent inflation. The country’s reliance on thermal plants and imported fuels has driven up costs, while solar and wind projects remain stalled due to infrastructure delays.
Why Is Electricity So Expensive in Colombia?
The report identifies three key factors:
- Weakened reservoirs due to El Niño
- Dependence on thermal plants powered by imported fuels
- Delays in renewable energy projects, particularly in La Guajira, where over 80 initiatives remain offline
What Can Companies Do?
Alejandro Ramírez, CEO of Energy Master, recommends three urgent actions:
- Energy efficiency: modern motors, LED lighting, consumption monitoring
- Self-generation: solar panels under Law 1715
- Storage: batteries to optimize off-peak usage
“These three moves are the new business insurance: fewer kilowatts purchased, more self-generation, and storage capacity,” Ramírez stated.
Supply Risk and Tax Reform
The report warns that without swift action, Colombia could face supply shortages within the next decade. Meanwhile, the government has proposed a draft decree to increase electricity tariffs by 20 %, which would directly impact companies currently benefiting from exemptions.
Electricity in Colombia is not just a household burden, it’s a drag on industrial competitiveness and a deterrent to foreign investment. While countries like Chile are lowering costs through clean energy, Colombia remains stuck between bureaucracy, conflict, and infrastructure gaps.
