EPM issues ultimatum as Afinia faces $6.3 billion debt and potential blackout

Empresas Públicas de Medellín (EPM) has declared that it will no longer inject capital into its struggling Caribbean subsidiary Afinia, which faces a debt of $6.3 billion COP and a monthly cash deficit of $400 billion COP. The company warns that without an immediate $800 billion COP injection from the national government, it may be forced to halt operations, potentially affecting 1.8 million users across 134 municipalities. Source: El TiempoSource: Portafolio

The financial crisis

Afinia recovers only 57 pesos for every 100 pesos it spends on energy purchases, a structural gap worsened by energy losses exceeding 40%, widespread fraud, and unpaid bills from public entities totaling $420 billion COP. Source: PortafolioSource: El Tiempo The situation has been aggravated by the El Niño phenomenon, which has driven up spot-market energy prices and created a mismatch between generation capacity and supply commitments. Source: La República (CO)

EPM's position and government response

EPM's general manager, John Maya Salazar, has called Afinia "the worst business in EPM's history," noting that the company has already injected over $3.6 trillion COP since 2020 — 213% more than previous operators. Source: La República (CO)Source: El Colombiano He also cited alleged corruption in Afinia's previous administration, now under investigation by the Attorney General's Office, as a factor in the current crisis. Source: La República (CO) The national government has reportedly ordered the allocation of $800 billion COP for the remainder of the year, but EPM insists that only structural solutions — including stricter regulations against energy theft and the normalization of substandard electrical zones — can ensure long-term viability. Source: El TiempoSource: El Colombiano

Potential consequences

XM, the administrator of Colombia's wholesale energy market, has notified Afinia of pending obligations of $131 billion COP for October energy purchases, with potential supply restrictions scheduled as early as October 30 if payments are not made. Source: Portafolio Meanwhile, EPM has already sold its Atenea subsidiary (which served 35 municipalities in Cesar, Magdalena, and southern Bolívar) to Panamanian firm Latam Energy Distribution Group, as part of a strategy to restructure its Caribbean operations. Source: El Colombiano