President Abelardo de la Espriella and Medellín Mayor Federico Gutiérrez met in Barranquilla on Saturday to address a severe financial crisis threatening Afinia, a regional energy subsidiary of EPM, ruling out a state intervention while officials weigh short-term measures to prevent nationwide power shortages.
Financial Collapse and the Cost of Serving the Caribbean Coast
The financial pressure on Empresas Públicas de Medellín’s regional distributor has reached a critical juncture. According to discussions held in Barranquilla, Afinia faces an immediate liquidity shortfall of $1,2 billones to close out the year, operating at the absolute limit of its financial capacity. EPM has poured $3,2 billones into the subsidiary to upgrade service quality and cut down on outages, yet the company bleeds $1,5 billones annually in operational losses.
The root of the deficit lies in severe collection failures across the Caribbean region. For every $100 the company bills customers, it recovers only $57, driven by widespread energy theft and entrenched non-payment customs.
Lo que le estamos diciendo al presidente es que no aguantamos más, no hay empresa que aguante.
Government Rejects State Takeover as Alternatives Take Shape
Despite mounting operational debts, the national government has ruled out any official intervention into the utility. Municipal and national leaders agreed that a state takeover would likely trigger a wider domino effect across the electrical supply chain and worsen conditions for everyday users.
The high-level talks brought together key federal and local stakeholders, including Minister of Mines and Energy María Nohemí Arboleda and Minister of Finance Miguel Gómez, alongside EPM executive leadership. To stabilize the utility without a government seizure, authorities are evaluating the rollout of prepaid meters across targeted consumption zones and the expansion of community-managed energy initiatives. Caracol Radio confirmed that the presidential administration will soon unveil a detailed package of short- and medium-term regulatory tools.
Drought Pressures and Hydroelectric Constraints
The fiscal emergency at Afinia unfolds against the backdrop of an exceptionally severe El Niño weather cycle, which has squeezed national water reserves and triggered localized water rationing in Medellín. EPM, which typically supplies 32% of Colombia’s total electricity generation, has seen its output drop to just 18% due to depleted reservoir inflows.
At the Hidroituango dam, diminished flow rates along the Cauca River have forced operators to idle two of the facility’s four generating turbines. In response to the combined fiscal and hydrological strain, officials issued an urgent appeal for widespread conservation of water, electricity, and natural gas across the country.
Political Legacy and Past Administration Scrutiny
Beyond immediate balance-sheet pressures, the utility’s troubles have sparked sharp political crossfire regarding past municipal leadership.
With a presidential rescue package pending, the structural future of the Caribbean energy provider remains tied to an elusive political and financial consensus.