New blow to the economic emergency: Court strikes down tax on energy generators and orders money return
The Constitutional Court struck down Legislative Decree 44 of January 21, 2026, through which the Government had imposed new charges on energy companies in Colombia within the framework of the economic emergency.
TL;DR
- The Constitutional Court declared Legislative Decree 44 of January 21, 2026, unconstitutional.
- The decree had imposed a 2.5% parafiscal contribution on energy generators' pre-tax profits for 2025.
- It also established a temporary energy contribution for hydroelectric generators, equivalent to 12% of energy sold in the wholesale market, in exchange for an income tax discount.
- The Court ordered retroactive effects, meaning collected funds must be returned or compensated to the contributors within six months.
- The value of energy delivered by generators under the decree must be recognized as a 100% income tax discount, with any excess transferable to subsequent periods.
- Industry representatives, like Andeg's president, praised the ruling, calling the decree "confiscatory."
- President Gustavo Petro criticized the decision, arguing that the state needs funds and questioning the refund to generators he accuses of overcharging.