De la Espriella Government Proposes Overhaul of Colombia’s Strata-Based Utility Subsidies

Colombia's new government plans to overhaul the country's utility subsidy system by merging socioeconomic strata with household income and ability to pay. The new approach is detailed in the draft 2026-2030 National Development Plan, titled "Colombia, la Patria Milagro," released on November 10, 2026. This proposal aims to address the current strata-based system's shortcomings, which often fail to accurately identify and assist low-income households.

The updated system will consider four data sources to better capture household characteristics: household surveys, administrative records, land registry variables, and the Universal Income Registry (RUI). The RUI, similar to the existing Sisben registry, will be crucial in tracking household earnings and informing the new subsidy distribution.

While the proposal shows promise in targeting aid more effectively, it still faces challenges, such as incomplete data from the informal economy and potential inaccuracies in income verification. Nonetheless, the initiative aims to reduce subsidy leakage to more affluent households and better support those in need.