FAQ
We are a Colombian Group made up of companies in Colombia, Central America, the Caribbean, South America and Mexico.
Our headquarters is the city of Medellin, capital of the Department of Antioquia, Republic of Colombia.
Our strategy is to grow with the people, speaking the language of sustainability. Corporate social responsibility, good corporate governance, long-term planning and technical, legal, financial and managerial rigor, are pillars of our strategy.
Empresas Públicas de Medellin E.S.P., whose brand is EPM, is 100% property of the Municipality of Medellin. In that sense, the company is not listed in any local or international stock exchange. Since 1999 EPM has been recognized as a recurrent bond issuer in the local capital market and since 2009 in the international capital market.
The Framework Relations Agreement of the Municipality of Medellin and EPM establishes the obligation of EPM in Chapter 2, paragraph 2.2.2 Transfers to the Municipality:
“If Article 13 of the Municipal Agreement No. 69 of 1997 of the Council of Medellin establishes that the percentage of Empresas Públicas de Medellín E.S.P.’s financial surpluses that may be transferred to the Municipality cannot exceed 30%, this Agreement establishes that additional transfers, defined and agreed to by both entities, may be made considering, on one hand, the Municipality’s financial requirements for specific investment programs and, on the other hand, EPM E.S.P.’s financial needs for its own operations, in such a way that the Company’s corporate viability or orderly expansion is not put at risk. In any case, additional transfers shall be authorized through an agreement with the Municipal Council, with the proper support of the Mayor expressly stating the effects said special transfers would have on the finances of EPM E.S.P.”
Since EPM provides public utility services, its businesses are substantially regulated by:
- The SSPD (Superintendency of public utilities)
- The MME (Ministry of Mines and Energy)
- The CREG (energy and gas regulatory body)
- The UPME (Energy Mining Planning Unit of the Ministry of Mines and Energy)
- The MHCT (Ministry of Housing, City and Territory)
- The CRA (drinking water and basic sanitation regulatory body)
- The MTIC (Ministry of information and communication technologies)
The regulation and legislation affecting natural gas, electricity and water companies in Colombia relate to required licenses, permits and other approvals, the fees that EPM may charge for its services, the terms and conditions which apply to EPM’s services contracts, EPM’s ability to recover various categories of costs and the acquisition, construction and disposition of facilities. In particular, CREG and CRA regulate the fees EPM is permitted to charge to its customers in connection with the provision of electricity transmission and distribution and natural gas distribution services, and water and sewage services, respectively.
At local level, EPM and its current bond issuances are rated “AAA” by Fitch Ratings Colombia S.A. SCV with rating watch negative from stable Outlook.
At international level, the company and its international bond issues are rated “BB+” (Rating watch negative from stable outlook) by Fitch Ratings and “Baa3” by Moody´s (Negative outlook).