2024-07-08 23:50:47
The proposed reform of public services in Colombia, led by the Government of Gustavo Petro, has sparked an intense debate in the political, business and social spheres of the country. This initiative would seek to restructure current regulations to strengthen state control over companies providing public services, with the stated objective of improving the quality of service and protecting the rights of users.
HUILA DAILY, ECONOMY
BY: ALEJANDRO POLANCO
This measure, although argued to be necessary to unify criteria and strengthen supervision, has been harshly criticized for its potential impact on market competition. Organizations such as Andesco warn that it could jeopardize the existing business diversity, which is key to maintaining competitive prices and fostering innovation in the provision of essential services such as water and energy.
The public services sector in Colombia is on the eve of a significant transformation with the upcoming discussion on comprehensive reform, one of the key promises of the electoral campaign and a central initiative of Gustavo Petro’s government. As the date for the presentation of the bill approaches, actors in the system are already outlining the contours of what could be a crucial reform to improve the quality and equity of essential services in the country.
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For decades, Colombia has faced persistent challenges in managing its public utilities. Despite Law 142 of 1994, which established an initial regulatory framework to introduce competition and improve efficiency, deficiencies in the provision of services such as drinking water, energy and sanitation have continued to negatively affect millions of Colombians.
Justification of the reform according to the national government
State supervision and effective control: One of the fundamental pillars of the reform is to strengthen state supervision over public service providers. The Superintendency of Public Services would face significant challenges due to its limited territorial presence and insufficient resources, according to the government itself, which has resulted in irregular supervision and a lack of adequate responses to the deficiencies of the companies.
Although the proposed reform seeks to expand oversight capacity, critics argue that doubts remain about the real effectiveness of these measures, especially in rural and remote areas where there are other urgent needs.
Sanctioning processes: The slowness of sanctioning processes has been a key obstacle to the effective application of the law. Although the reform contemplates the acceleration of these procedures, there is skepticism about the capacity of the judicial and administrative system to apply sanctions quickly and equitably.
Protection of the minimum living: The inclusion of the concept of “vital minimum” seeks to guarantee the continued access of the most vulnerable citizens to essential services such as water and energy, regardless of their economic situation. However, concerns persist about the financial viability of these measures in a context where companies face additional pressures to maintain profitability and operational sustainability, arguing for a more robust approach to ensure that these measures are not only implemented, but also effective in practice.
Tariff model: The review of the current tariff model is another critical point of the reform that seeks to establish fairer and more transparent tariffs. Doubts persist about the capacity of the new regulatory framework to balance the commercial interests of companies with the right of citizens to affordable rates. The lack of clarity in the criteria for setting rates and the concern about possible manipulations by suppliers continue to be topics of debate, warning that maintaining an adequate balance will be crucial to avoid perpetuating economic inequalities and negatively affecting the most vulnerable sectors of the population.
Economic and Social Impact
The success of the reform will also be assessed in terms of its economic and social impact. More efficient management of public services could potentially improve the country’s productivity and competitiveness, as well as reduce disparities in access to essential services.
Camilo Sánchez, president of Andesco, has expressed his opposition, arguing that the project could compromise competition and service quality by distrusting the existing regulatory structure. According to Sánchez, the current rules have been fundamental to guarantee a fair and competitive market, thus ensuring access to quality services for all Colombians, and he also criticizes the way in which the reform process has been managed so far, pointing out that crucial aspects raised by the union have been ignored.
On the other hand, Dagoberto Quiroga, Superintendent of Public Services, defends the need for a comprehensive reform that prioritizes the rights of users. Among the main proposals are the protection of the minimum living wage for the most vulnerable sectors, a thorough review of the current tariff model to ensure fair and accessible rates that do not financially burden users, as well as facilitating mechanisms that allow users to pay their obligations in terms of public services in a more flexible manner.
Debate and Future of the Reform
One of the most discussed aspects is the search for greater democratization in the provision of public services, especially in sectors such as energy and water, currently dominated by monopolies and oligopolies. Dagoberto Quiroga has emphasized the importance of fostering competition through the participation of new companies and communities, which could not only improve the efficiency of the sector, but also reduce barriers to entry and promote innovation.
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As for the legislative process, the formal presentation of the bill during the next session of Congress is expected to generate intense debate. This debate will not only address the technical and regulatory aspects of the bill, but also its potential economic and social repercussions for the country.
Experts have highlighted the importance of legislation that balances the protection of users’ rights with a favourable environment for investment and sustainable development of the public services sector in Colombia. Future discussions should address not only the technical and economic viability of the proposals, but also their capacity to promote more transparent and responsible management of public resources.
The Government’s ability to reconcile divergent interests and guarantee a regulatory framework that promotes both economic efficiency and social equity will be crucial to the success of this initiative. The future of the public services sector in Colombia is at stake, and its evolution will depend largely on the decisions taken in the coming months in the legislative and regulatory spheres.