In December 2022 the energy stock price increased to 339.92 COP/kWh

This XM release was published using machine translation.

XM continued adding energies with the agents and different actors of the productive chain through the operation of the National Interconnected System -SIN-, and the administration of the Wholesale Energy Market -MEM-. As administrator of said market, XM manages commercial and financial transactions between all Market participants, in accordance with the rules established by the CREG and other governing entities.

“During December 2022, the stock price increased by 80.04% compared to the average price of the previous month, which was 188.8 COP/kWh. This price is the highest since March 2022. In December, 85.09% of the energy was generated with renewable sources, mainly hydraulic, and the remaining 14.91% with thermal plants. However, there was a decrease in the availability of water resources, which went from 87.14% in November to 79.04% in December 2022.

As for the purchase of energy in 2022, 8.33% was made through long-term contracts of the Regulated Market that come from Non-Conventional Sources of Renewable Energy - FNCER", affirms Cecilia Maya, manager of the Wholesale Energy Market of XM.

Below, we present the behavior of some variables of the energy market, bilateral contracts and transactions of the Wholesale Energy Market in December 2022.

energy bag

The wholesale energy market is where energy is bought and sold between generating agents and traders, in accordance with a set of rules established by the regulatory body, CREG. Both the amounts contracted through long-term contracts and their price as well as the energy market price are fundamental variables to know their development, so the evolution of the market price, the activation scarcity price and the purchases by marketers to serve their users.

• In December, the weighted average price of the stock market was 339.92 COP/kWh, increasing by 80.04% with respect to the average price of the previous month, which was 188.8 COP/kWh, being the highest value presented since March of this year. On the other hand, this value is 0.52% higher than the same month of 2021 (338.15 COP/kWh).
• The stock price is directly related to the type of generation source. In December, 85.09% of the energy was generated with renewable sources, mainly hydraulic, and the remaining 14.91% with thermal plants. However, there was a decrease in the availability of water resources, which went from 87.14% in November to 79.04% in December 2022.
• In 2022, the weighted average monthly stock price reached the maximum value of 403.18 COP/kWh in February and the minimum value of 104.65 COP/kWh in June. In addition, during the year, the minimum hourly stock market price reached was 89.06 COP/kWh in the periods 1 to 5 of May 11 and the maximum was 1,035.13 COP/kWh in the periods 12 and 15 of April 7.
• On the other hand, the energy purchased on the stock market in December 2022 by traders was 972.58 GWh, for a value of 335,992.93 million pesos, which represents an energy stock market exposure of 13.1%. The remaining amount was acquired in long-term contracts.
• In December, the activation shortage price was 1,339.85 COP/kWh, presenting a decrease of 25.19% compared to the previous month (1,790.95 COP/kWh). This price determines that the critical condition of the system is declared and is from which the Firm Energy Obligations —OEF— of the Reliability Charge in charge of the generators that have committed to the Market become enforceable. The decrease occurs due to the fuel supply costs reported by the plants that have the OEFs assigned.

Bilateral contracts

Bilateral contracts in the energy market are financial contracts, that is, there is no physical delivery of energy. These contracts are made between market agents, in which the price is agreed for an established term. Next, we present the result of the transactions in bilateral contracts.

During December 2022, the average price of energy traded in contracts to meet the demand for residential consumption and small businesses (regulated market) was 285.44 COP/kWh, while for industry and commerce (non-regulated or competitive market), it was 269.51 COP/kWh. Both the Regulated and Non-Regulated market prices showed an increase of 0.46% and 0.42%, respectively, in relation to the prices for the month of November 2022, which were 284.14 COP/kWh and 268.38 COP/kWh.

However, when comparing them with the prices of December 2021, an increase of 7.26% and 15.71% is evident for the Regulated and Non-Regulated market respectively, whose prices were 266.11 COP/kWh and 232.92 COP/kWh.

On the other hand, for December 2022, the MC index, which represents the average contracting price for the regulated market resulting from public calls, was 290 COP/kWh, presenting an increase of 8.97% compared to the same month of the previous year ( 266.11 COP/kWh). This increase is largely due to the variation presented in the Domestic Supply Producer Price Index, which went from 147.55 in December 2021 to 176.17 in December 2022 (Preliminary version of DANE). However, compared to the previous month, it decreased by 0.10%.

Additionally, during December 2022, 363.43 GWh were traded in long-term bilateral contracts with Non-Conventional Sources of Renewable Energy (FNCER), of which 341.04 GWh come from contracts awarded through auctions of the Ministry of Mines and Energy and 22.39 GWh They come from other public calls awarded through SICEP.

On the other hand, during 2022, the purchase of energy through long-term contracts of the Regulated Market that come from Non-Conventional Sources of Renewable Energy - FNCER was 4,241.39 GWh, which represents 8.33% of the total Commercial Demand. Regulated. In addition, of all the marketing agents, 6 met the 10% threshold established by article 3 of Resolution 40715 of 2019 of the Ministry of Mines and Energy, which establishes that energy purchases intended to serve end users of the regulated market in one year come from FNCER.

transactions

These are the most outstanding figures of the transactions in the Wholesale Energy Market during December 2022:

In the Wholesale Energy Market, $3.17 trillion was traded, 16% more than what was traded in the same month of 2021 ($2.73 trillion). Of this amount, $666,525.71 million pesos corresponded to purchases on the energy market, where XM's role is to settle and compensate these monies, in addition to managing the guarantees for their payment. In addition, $2.03 trillion was settled in long-term contracts in December, a value 13.82% higher than that traded in the same month of 2021 ($1.79 trillion). This value is higher mainly due to the increase in the average price of dispatched contracts.

International Electricity Transactions -TIE

During December 2022, imports from the National Interconnected System (SIN) were 0.01 GWh, 105.59 GWh less than what was imported in the same month of the previous year and 0.02 GWh less than what was imported in the previous month. Likewise, the value of this transaction went from $40,395.73 million pesos in December 2021 to $19.81 million pesos this month. Additionally, this month 181.01 GWh were exported, 180.62 GWh more than what was exported in the same month of the previous year, whose value was 0.39 GWh. This transaction was for $68,914.93 million pesos, with $68,829.23 million pesos more than the value traded the same month of the previous year, which was $85.69 million pesos.

During 2022, 159.15 GWh were imported for a value of 22,849.77 million pesos, the month where the most energy was imported was March (62.76 GWh) and in which the least was December (0.01 GWh). In addition, 465.30 GWh were exported for a value of 140,791.60 million pesos. The month with the most exports was December (181.01 GWh) and the one with the least was March (0.53 GWh). Compared to 2021, imports decreased by 66.80% and exports increased by 27.90%.