The sale of energy in the wholesale and retail markets, as well as that of natural gas, are important for the Company in that specific sales policies and targets are defined within these processes. These policies and goals incorporate the vision of a comprehensive commercial risk management system that covers the entire process, from the negotiation phase to the provision of energy and natural gas services.
In Colombia, in our capacity as energy generation agents, we participate in the wholesale energy market through the regulated Reliability Charge mechanism, through energy transactions on the Spot Market, managed by XM, and also through energy transactions in long term contracts. The latter provide financial coverage of the energy price for the end user and guarantee a stable flow of revenue for the seller.
Likewise, wholesale sales in Central America allow us to sell electricity generated and firm capacity available in the short, medium and long term, so as to assure revenues that make viable the retention of existing assets and the development of new projects.
The company participates in the sale of electricity in 39 municipalities of Valle del Cauca, 47 in Tolima and one in Chocó, providing continuity of energy supply and well-being to more than one million of customers.
In Integrated Report 2019 you can find our sales management.