October 2026
Colombia’s wholesale (spot) electricity price has more than quadrupled this year. According to XM, the market operator, the average went from COP 254.1 per kWh in January to around COP 1,105 per kWh in September, peaking at COP 1,513 on September 18, the highest level in 13 months. September’s scarcity price was set at COP 1,172.41 per kWh.
The driver is El Niño. Industry analysts expect the driest phase between December 2026 and February 2027, right when companies close their books and approve next year’s budget.
Why it matters even if you don’t buy on the spot market
Most electricity in Colombia is sold under long-term contracts, but part of it is bought on the spot market. As of September 14, XM estimated that 30% of demand was exposed to spot prices. In July, spot energy averaged COP 797.7 per kWh versus COP 334.2 under contracts.
Exposure varies widely between retailers: some have nearly all of their energy contracted, others buy a large share on the spot market. Sooner or later, that reaches the tariff your company pays.
Five points to review before year-end
- Your energy contract. If you are a non-regulated user, check expiry, coverage and indexation. If you are regulated, ask your retailer how much of its energy it buys on the spot market.
- 2027 budget. Add a high-energy-cost scenario for the first quarter. For energy-intensive operations, the difference can move the margin.
- Fixed-price sales contracts. If your energy cost rises and your selling price does not, assess with your accountant whether any contracts become onerous under IFRS (IAS 37).
- Cash. A more expensive first quarter calls for a review of cash flow and commitments with suppliers and banks.
- Reporting to headquarters. If your company belongs to a foreign group, explain the variance early, in COP and USD, so it does not arrive as a surprise at the Q1 close.
How we help
At JyM Contadores we support subsidiaries and branches of foreign companies in Colombia with strategic financial consulting and IFRS advisory: we review the exposure, adjust the budget and prepare a clear summary for headquarters.
Want to know how this applies to your company? Get in touch and we will tell you what is worth reviewing in your case before year-end.
Sources: XM, via La República and El Colombiano (September 22, 2026); El Tiempo via Infobae (September 15, 2026). Figures in Colombian pesos.
