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SearchEPM manager John Maya Salazar says the company will provide no further extraordinary funding to its subsidiary until a long-term solution is found. EPM is asking the government for COP 800 billion to cover cash needs and proposing regulatory changes to improve collections and reduce energy losses.
Empresas Públicas de Medellín (EPM) announced that it will make no new investments in Afinia until a structural solution is agreed for the financial situation of its subsidiary, which distributes and sells electricity in the Caribbean region. EPM’s CEO, John Maya Salazar, said the resources EPM has provided to support the subsidiary are putting pressure on the group’s finances.
The company is asking the National Government for COP 800 billion to meet Afinia’s cash needs and close out 2026. According to information provided by EPM, the support would be disbursed in two payments of COP 400 billion: one planned for October and the other before December. The funding depends on negotiations with national authorities; it is not a permanent solution to the subsidiary’s difficulties.
Maya described the acquisition of Afinia as “the worst deal” in EPM’s history. According to the CEO, the company transferred COP 1.5 trillion to support it last year and could need a similar amount this year. These are the executive’s statements about the financial impact facing the group, not an independent assessment of the transaction.
Figures cited by EPM point to two central challenges: Afinia collects between 83% and 84% of the amounts it bills, while energy losses reach 29%, compared with a national average of about 14%, according to data released by the company. In Cesar, losses could reach 40%, according to Maya’s assessment.
These indicators help explain why the subsidiary is struggling to meet its obligations to suppliers and other market participants. They also show that the problem is not limited to securing liquidity: reducing losses and increasing collections are part of the long-term response EPM says it is seeking. The figures come from the company’s statements and reported data and should not be interpreted as results independently audited here.
Measures proposed by EPM include regularizing electricity connections in neighborhoods considered substandard and allowing or requiring, through regulatory changes, prepaid meters for users in socioeconomic strata 0, 1, and 2. The company argues that these options could help ensure that electricity use is paid for more directly and reduce losses associated with illegal connections. Their implementation requires regulatory or legal decisions; EPM cannot apply these measures on its own in every case.
Maya has also proposed a broader strategy to combat electricity theft and raised the possibility of declaring an economic emergency in response to the effects of El Niño. According to the CEO, that mechanism would allow a faster response than the ordinary legislative process. This is a request from EPM: the available sources do not confirm that the government has declared an emergency or detail what specific powers it would entail.
The drought associated with El Niño is also affecting EPM’s finances. Maya explained that the company has had to buy electricity on the spot market at prices higher than the prices at which it sells electricity under contracts, while managing its generation resources in light of hydrological conditions. According to the executive, this difference increases financial pressure on the group and adds to Afinia’s needs.
The CEO also warned that payment difficulties among electricity retailers and distributors in the Caribbean could affect the national electricity system. This is a concern expressed by EPM, not an inevitable consequence: the extent of any impact will depend on the companies’ liquidity, market conditions, and the measures taken by the authorities.
For now, EPM’s approach combines a request for funds to meet Afinia’s immediate obligations with regulatory changes and operational measures to address insufficient collections and energy losses. The company maintains that one-off support is not enough and is making further contributions conditional on a long-term solution; the outcome will depend on government decisions and how the subsidiary’s indicators evolve.
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