Medellín-based utility EPM is urging Colombians to reduce electricity and water consumption as forecasts point to a severe El Niño weather phenomenon that could affect the country through early 2027.

In two recent statements, EPM General Manager John Maya Salazar warned that the probability of El Niño exceeds 90% and said both the intensity and duration of the event could place pressure on Colombia’s water reservoirs and hydroelectric generation system.

El Niño is a naturally occurring climate pattern marked by the warming of surface waters in the central and eastern Pacific Ocean. This shift in ocean temperatures can disrupt normal weather systems around the world. In Colombia, El Niño typically reduces rainfall and leads to drier-than-average conditions that can strain reservoirs and reduce the country’s ability to generate hydroelectric power.

“We have a very high probability, more than 90%, of an El Niño phenomenon, and a very high probability that it will be severe both in intensity and duration,” – John Maya Salazar

Maya called on Colombians to adopt more responsible consumption habits, emphasizing that water and electricity rationing can only be avoided if households and businesses reduce unnecessary consumption.

“The rational use of energy and water is the only way to avoid rationing,” he said.

Image courtesy EPM – (translated by Finance Colombia)

Recent reports from IDEAM, Colombia’s national weather agency, and XM, the national grid operator, show that reservoir levels feeding the country’s hydroelectric system have dropped significantly as Colombia enters what forecasters are calling a potentially severe El Niño cycle. Authorities say that if dry conditions continue, they could put extra pressure on electricity generation and water supplies in several regions.

Hydroelectric generation supplies the majority of Colombia’s electricity, making reservoir management a critical issue during periods of below-average rainfall.

Maya also addressed EPM’s plans to increase the operating level of the Hidroituango reservoir to its design elevation of 420 meters above sea level.

According to Maya, EPM’s original environmental license permits operation at the 420-meter level. However, restrictions imposed following the project’s contingency events limited operations to a lower elevation. With those restrictions lifted, EPM is now carrying out the environmental work required before gradually increasing the reservoir level.

“We are complying with regulations and environmental requirements,” Maya said, as he rejects suggestions that EPM would raise the reservoir before completing required vegetation removal and forestry management activities.

The company expects that work to be completed by September, after which reservoir levels can begin increasing in accordance with environmental regulations.

Raising the reservoir level would give the system more room to maneuver when dry conditions hit during El Niño, which would help support power generation if rainfall stays low.

Maya is an electrical engineer with nearly four decades of professional experience who assumed leadership of EPM on January 1, 2024. He previously served as Executive Vice President of Projects and Engineering and Executive Vice President of Business Management at the Medellín-based utility.

The combination of conservation efforts and increased reservoir capacity forms part of EPM’s strategy to maintain energy security during what could become one of Colombia’s most challenging climate periods in recent years.

Above photo: EPM General Manager John Maya Salazar shares the utility’s recommendations on water and electricity consumption.. (Photo: EPM )

The Medellín utility unit, EPM, contributed $20 trillion COP in revenue and $4.9 trillion COP in net income. Management attributed the stability of these figures to a diversified portfolio. Power generation remains the primary driver of profitability, accounting for 49% of net income, followed by energy distribution at 27%. The water, sewage, and waste management sectors contributed 15%, while transmission and natural gas accounted for 3% and 1% respectively.

In 2025, Grupo EPM obtained results that confirm its ability to advance in complex scenarios, reflecting work to achieve lasting efficiencies.” — John Maya Salazar, General Manager of EPM

Financial leverage remained within contractual covenants. The debt-to-EBITDA ratio for the group closed at 2.9x, comfortably below the 3.5x threshold required by many credit agreements. For the individual EPM entity, the ratio stood at 3.5x. This solvency allows the organization to continue its capital expenditure program, which saw $5 trillion COP ($1.36 billion USD) invested in infrastructure and social programs throughout the year.

John Maya Salazar, General Manager of EPM (photo courtesy EPM)

A significant portion of the capital budget was directed toward the Hidroituango hydroelectric project. Approximately $1 trillion COP was allocated to Stage 2 of the project, specifically turbine units 5 through 8. Beyond energy, the company continued funding the Unidos por el Agua and Unidos por el Gas initiatives, which target utility access for vulnerable populations in the department of Antioquia and other regions.

Dividend and Fiscal Transfers

During the 2025 fiscal period, EPM executed transfers totaling $2.6 trillion COP to the Distrito de Medellín. These funds, representing 55% of the utility’s 2024 net income, serve as a primary funding source for the municipal development plan. Additionally, the group generated $21.8 trillion COP in total added value across its areas of operation, including $3.7 trillion COP in taxes, fees, and contributions to the state.

The company is currently undergoing a structural reorganization intended to modernize its operating model. According to management, this transition is designed to improve strategic efficiency as the group faces future macroeconomic shifts. The group’s economic footprint in 2025 included $6.7 trillion COP paid to suppliers and the financial system, along with $3 trillion COP dedicated to direct and indirect employment costs. Total reinvestment into the group’s various subsidiaries reached $5.6 trillion COP to ensure infrastructure modernization.

Financial data and sustainability reports are routinely filed with the Superintendencia Financiera de Colombia. Interested parties can find further information on the company’s investor relations portal or through the Alcaldía de Medellín official website.

Above video: An aerial view of EPM’s Hidroituango hydroelectric dam(video © Loren Moss)

The budget allocates resources across all of EPM’s business segments, which include Power Generation, Transmission and Distribution, Gas, Water Provision, and Wastewater. The overall spending plan prioritizes projects focused on modernizing infrastructure, expanding service coverage, and optimizing operational efficiency.

Budget Distribution and Key Investments

The 29.8 trillion COP total budget is divided across four main areas, with investments receiving the largest allocation:

• Investment Expenses (48%): 14.1 trillion COP
  • Infrastructure investments: 4 trillion COP.
  • Long-term contracts for commercial operation and maintenance (registered as investment under current budgetary rules): 6 trillion COP.
  • Assets and inventory related to service provision and investments, provisions, and others: 3.2 trillion COP.
  • Capitalizations and other items: 907 billion COP.
• Functioning Expenses (28%): 8.5 trillion COP
  • This includes transfers to the District of Medellín totaling 2.4 trillion COP, taxes and contributions to the national and territorial governments totaling 1.2 trillion COP, and personnel expenses amounting to 1.6 trillion COP.
• Commercial Operation Expenses (10%): 3.1 trillion COP
  • This covers the purchase of energy, natural gas, and other inputs required to guarantee public service delivery.
• Debt Service (11%): 3.3 trillion COP
• Final Cash Availability (3%): 800 billion COP

Of the 4 trillion COP earmarked for infrastructure investments, 1.3 trillion COP is designated for the second phase of the Hidroituango Hydroelectric Project, a significant infrastructure development for the nation’s energy stability.

Financing and Operational Focus

The 2026 budget is projected to be financed primarily through 18.3 trillion COP (62%) in current revenues from services provided (energy, gas, water, and wastewater). This will be supplemented by 3.5 trillion COP (12%) from loans, with the remaining 26% sourced from dividends received from subsidiaries, accounts receivable recovery, and the initial cash balance.

The budget focuses on specific initiatives across EPM’s segments:

• Power Generation: Includes the expansion of generation infrastructure and the implementation of a master plan for fire protection at generation plants. Resources are also allocated for the modernization of the Guadalupe-Troneras power stations.
• Energy Transmission and Distribution: Focuses on infrastructure expansion and maintenance, replacement of cables and transformers across all voltage levels, and the control of non-technical energy losses.
• Water and Wastewater: Key projects include the Orfelinato – Villa Hermosa Pumping System, the expansion of the Yulimar circuit, and the modernization of the Ayurá water treatment plant. The budget also funds the construction, intervention, and repair of water and sewer networks.
• Gas: Initiatives include optimizing operations through the utilization of biogas from the La Pradera facility.

John Maya Salazar, General Manager of EPM, stated that the budget is aimed at enhancing operational efficiency, strengthening resource management, and ensuring service quality within a context of regulatory, climatic, and market challenges.

Headline photo courtesy EPM

The enterprise value of the transaction is up to $2.905 billion MXN, equivalent to approximately $609 billion COP based on the current exchange rate. The equity value of the transaction is up to $1.598 billion MXN, representing approximately $335 billion COP.

The agreement has been signed, but the transaction’s completion is contingent on a series of closing conditions, including the approval of the Mexican competition authority, the Comisión Federal de Competencia Económica (COFECE). The fulfillment of these conditions requires the joint effort of buyers, sellers, and other involved third parties, introducing an element of uncertainty regarding the final closing.

Since 2021, Grupo EPM has been evaluating options to improve TICSA’s performance and optimize its corporate portfolio. In line with this strategy, a decision was made in late 2023 to pursue a total divestment through an open and competitive sale process. The process invited 33 potential strategic investors and investment funds from various countries, including Canada, Spain, France, the United States, Japan, and Mexico. Odinsa ultimately submitted the most favorable offer and was selected for the final phase, culminating in the signing of the share purchase agreement.

“At Grupo EPM, we are adjusting our investment portfolio to focus our human and financial resources on markets and projects where we have greater opportunities for growth, value creation, and sustainability,” stated John Maya Salazar, general manager of EPM and leader of the EPM Group. “TICSA is a company with proven technical capabilities and a distinguished track record in the water sector. In the hands of a manager like Odinsa, with a strong investment capacity and proven experience in structuring, operating, and maintaining infrastructure assets, its development and expansion can be enhanced.”

In 2013, TICSA became part of Grupo EPM after a capital investment gave the company a majority stake, making it the first international water sector company in the corporate group. Subsequently, Grupo EPM acquired 100% of its shares in 2019. To date, TICSA has constructed and operated more than 160 water treatment plants, consolidating its technical leadership in Mexico and other markets.

Tecnología Intercontinental, S.A.P.I. de C.V. (TICSA). Photo credit: Ticsa Grupo EPM/Facebook.

Arango is a specialist in Transnational Business from the Universidad Externado de Colombia, Financial Management from the Universidad Pontificia Bolivariana, and Senior Management from the Universidad de los Andes.

In his professional career, he has served as manager of GTA Group Services, was General Commercial Director of Air-e S.A. E.S.P. (between December 2022 and June 2023), a company in which he also served as Director of Technology and Human Talent (between October 2020 and November 2022); likewise, he was director of Human and Administrative Talent of Industrias Haceb S.A., northwest regional manager of AFP Porvenir S.A., among others.  His role as Local Manager of the “Seventh Session of The World Urban Forum UN-Habitat” stands out in his professional experience.

The new leader of Afinia is a person with experience within the EPM Group, where he has held different positions such as Vice President of Human Talent and Technology, Manager of EPM Group Services, Director of External Relations and Environment, and Commercial Manager.

The general manager of EPM and leader of the EPM Group, John Maya Salazar, thanked civil engineer Jhon Jairo Granada Giraldo for his management at the head of Afinia and affirmed that the arrival of Ricardo Arango added to the will of the national government and other key actors, real solutions and commitments can be found for the sustainability of Afinia and the benefit of the more than 1,807,000 users of the company in the Caribbean Region.

Headline Image: Ricardo José Arango Restrepo. Photo credit: EPM Group.

Targeting customers consuming over 55,000 kWh, the platform enables management of production chain energy points, providing options such as “voluntary disconnection” and “demand response.” These measures, regulated by Colombia’s Law 1715 of 2014, allow participants to receive compensation for reducing consumption during high-demand periods. EPM’s CEO, John Maya Salazar, emphasized the role of the partnership in responding to industry energy demands, while Klik CEO Esteban Quintana highlighted the platform’s role in reducing energy use and supporting system reliability.

The alliance’s initial phase involves selected EPM companies, targeting daily reductions of around 1.5 GWh, with plans for expansion across EPM’s subsidiaries. The partnership offers large-scale consumers a chance to contribute to energy system stability amid current shortages while benefiting from financial incentives.

Analdex, recognized as the leading trade and logistics industry association in Colombia, represents over 400 affiliates across the country. The organization focuses on promoting Colombia’s international trade by developing and implementing policies related to exports, imports, and logistics.

In a communication to EPM’s General Manager, John Maya Salazar, Analdex Executive President Javier Díaz Molina expressed optimism about the new partnership, stating, “We hope to work together for our sector and meet the requirements and expectations that have motivated EPM to be part of Analdex.”

EPM Vice President of Supplies and Shared Services, Humberto Iglesias Gómez, noted that the company plans to leverage Analdex’s experience and network to enhance its foreign trade operations. “We will carry out initiatives that allow us to take advantage of Analdex’s experience, generate relationships with its affiliates, and use best practices in our foreign trade activities,” said Iglesias.

Strategic Benefits

Joining Analdex provides EPM with access to strategic advice on international customs, exchange, and tax logistics. It also facilitates interactions with key industry bodies, including the National Joint Commission for Tax and Customs Management, the International Chamber of Commerce (ICC), and the Confederation of Authorized Economic Operators of Latin America (COEALAC).

Rodrigo Patiño Correa, Analdex’s regional manager for Antioquia, welcomed EPM’s membership, describing it as a significant vote of confidence. “We are motivated and pleased with EPM’s entry into our guild. We look forward to adding value to their activities and anticipate success in their future projects,” Patiño said.

EPM’s Foreign Trade Milestones

EPM has achieved several milestones in foreign trade, including the import of 280 containers of solar panels for its Tepuy photovoltaic project in La Dorada, Caldas, and the import of 90% of the electromechanical equipment for the Hidroituango plant from countries like China, Brazil, Germany, and Spain.

For its aqueduct modernization projects in the Aburrá Valley, EPM has imported over 500 containers of pipelines from Chile and Mexico. Additionally, in 2016, the company utilized Antonov cargo planes to transport 800 tons of supplies for the Guatapé hydroelectric plant repair (above photo) and, in 2023, for the Ituango project.

Future Engagement

EPM also plans to participate in Analdex’s business training and education programs, which have been in place since 2017. These programs aim to develop the skills needed to navigate the global market and maintain a secure and efficient international supply chain, ensuring the timely provision of services.

EPM’s commitment to an effective supply chain supports the growth and expansion of domestic public services, contributing to broader coverage and development in the regions where it operates.

The Tepuy solar park, EPM’s first large-scale photovoltaic project, covers 320 hectares near the village of Santa Helena. The facility includes 199,534 bifacial photovoltaic panels, installed on 2,290 solar trackers and connected to 320 inverters. The project also dedicates 60 hectares to environmental protection and conservation.

EPM General Manager John Maya Salazar noted that Tepuy’s 83 megawatts of power generation capacity is sufficient to supply energy to a city of about 400,000 inhabitants. The project aims to enhance Colombia’s power generation capabilities while contributing to climate change mitigation by reducing approximately 33,000 tons of CO2 emissions annually.

The construction of the Tepuy park adhered to environmental regulations set by the Regional Autonomous Corporation of Caldas (Corpocaldas). The project included comprehensive environmental management efforts, such as rescuing and relocating 1,669 wildlife specimens to a reserve area within the park and protecting 874 flora species, including bromeliads and orchids, with a 97% survival rate.

Additionally, EPM and the SENA Caldas regional office implemented a training program for over 300 local residents, equipping them with skills in the installation of solar panels and related equipment, thereby enhancing employment opportunities in the area.

The Tepuy solar park is expected to operate for 35 years, contributing to Colombia’s renewable energy supply and supporting the country’s sustainability goals. The project was partially financed by the French Development Agency (AFD).

Officially, EPM recently quantified these works as 86% complete and this has set the stage for the restoration of additional tunnels, two of which were already brought online last year and are now “working optimally,” according to the company.

One tunnel will soon be outfitted with a 100-ton piece of machinery known as a hydromechanical plug that recently arrived from Croatia and will require specialized divers to install some 200 feet underwater. This process is expected to take nearly a month, says EPM.

“We have been working at a very good pace,” said John Maya Salazar, general manager of EPM, in a statement.

The company added that “progress is also being made” on the wider stage two of the project as well as on the plugging of the key right diversion tunnel.

“We have already completed the drilling for the injection of resins that will enable the definitive plugging of this tunnel, approximately in the second half of this year,” said William Giraldo Jiménez, vice president at EPM, in a statement. “The project is progressing satisfactorily, as the year goes on, the work will increase more.”

Photo: Hidroituango hydroelectric dam. (Photo credit: EPM)

Photo: John Maya Salazar, new general manager of EPM. (Photo credit: EPM)

This marks a return to EPM for Maya Salazar, who has nearly four decades of experience including 33 years in the public sector, per the company. Previously, he held various positions at EPM, including executive vice president of projects, engineering, and business management.

He has also served as a manager at Ingenierías Aliadas.

“It is an honor and a great responsibility for me to return to EPM as general manager,” said Maya Salazar. “We are going to work as a team to continue providing public services with quality, continuity, coverage, and availability — and contribute to the quality of life of the community and the development of the territories where we have a presence.”

He officially took over the leadership role on January 2.