Reservoirs at 77% and energy on the stock exchange above $130: this is how the electricity market is
Hidroeléctrica Urrá I on alert due to increased rainfall. Photo: Courtesy: Anla
TL;DR
- High water levels in reservoirs during early 2026 have caused a significant reduction in electricity prices on the stock exchange.
- The average weighted price on February 6, 2026, was $122, returning to levels not seen since May 2025.
- Historical data shows a correlation between reservoir levels and electricity prices, with lower prices during periods of high water.
- Former Minister Amylkar Acosta believes current low prices demonstrate that power plants are generating and not hoarding water, contrary to previous accusations.
- Alberto Mejía Reyes, generation manager at EPM, stated that full reservoirs lead to minimum prices of $100/kWh, significantly lower than thermal generation costs.
- Minister Edwin Palma Egea has called on market agents to adopt 'New Low Prices by Technology' rules to ensure benefits reach users.
- The Ministry is also requesting updates to reliability charge settlement rules to incentivize generator participation and ensure fair pricing for users.
- Generators are encouraged to use existing regulatory mechanisms to stabilize the market and reduce price volatility, especially given current hydrological conditions.