Empresas Públicas de Medellín
Encyclopedia
Empresas Públicas de Medellín (EPM) was established 55 years ago as a residential public utilities company which, initially, only served the inhabitants of Medellin, its hometown. Since then, the company has achieved a high level of development that places it at the forefront of this sector in Colombia.

EPM is the head of a group that consists of 12 companies and has equity participation in eight others in the electricity
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...

 and water
Water
Water is a chemical substance with the chemical formula H2O. A water molecule contains one oxygen and two hydrogen atoms connected by covalent bonds. Water is a liquid at ambient conditions, but it often co-exists on Earth with its solid state, ice, and gaseous state . Water also exists in a...

 sectors. Its affiliate EPM Telecomunicaciones, which operates under the name UNE, controls seven other companies in various cities around the country.

Organized as a state-owned, industrial and commercial enterprise, owned by the municipality of Medellin, EPM applies the highest international quality standards to the services it provides: electricity
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...

, gas
Gas
Gas is one of the three classical states of matter . Near absolute zero, a substance exists as a solid. As heat is added to this substance it melts into a liquid at its melting point , boils into a gas at its boiling point, and if heated high enough would enter a plasma state in which the electrons...

, water
Water
Water is a chemical substance with the chemical formula H2O. A water molecule contains one oxygen and two hydrogen atoms connected by covalent bonds. Water is a liquid at ambient conditions, but it often co-exists on Earth with its solid state, ice, and gaseous state . Water also exists in a...

, sanitation
Sanitation
Sanitation is the hygienic means of promoting health through prevention of human contact with the hazards of wastes. Hazards can be either physical, microbiological, biological or chemical agents of disease. Wastes that can cause health problems are human and animal feces, solid wastes, domestic...

, and telecommunications.

Experience, financial strength, transparency, and technical capability are the main characteristics that identify a company whose main focus is its social and environmental corporate responsibility.

EPM in Colombia: Antioquia, Bogotá, Manizales, Armenia, Pereira, Bucaramanga, Cúcuta, Barranquilla, Cartagena, Cali, and Quibdó.

Connected to the people

The search for sustainability is the key to EPM's actions and the reason why it has been a leading actor in the social development of Medellin and the other Colombian cities where it is present with its services.

This dynamics includes programs such as prepaid electricity, which allows thousands of disconnected users to access the service; "Antioquia Iluminada", which provides other possibilities for the most distant rural areas of the region, and is a decisive driver for the regional model for public utilities companies whose results are reflected in the creation of entities such as Aguas de Urabá, Aguas de Occidente, Aguas de Oriente, and Empresas Públicas de Oriente.
Along with this regional and national presence, EPM has projects in the Latin American market. Its knowledge and experience are the best letters of introduction for the company which already has made significant inroads in some countries of the area, with projects that also reflect its management ability and social responsibility criteria.

This is the profile of a company, which after traveling a long road in its native city, has found new spaces in the hearts of Colombians. With the same ability to get close to the people and maintain the efficiency of its achievements, the company is opening itself to the world with a story to tell and many more dreams to achieve.

EPM international: in Panama, the company is implementing the Bonyic hydroelectric project through its affiliate Hidroecológica del Teribe. In Guadalajara, Mexico, it is providing advice and technical assistance for the implementation of potable water, sanitary sewers, and wastewater treatment projects; and it is providing telecommunications services in the United States and Spain under the brand UNE.

.

Strategic business units

Electricity, gas over a pipeline, waters and telecommunications: EPM has been outstanding in these four areas of public utilities and is currently implementing a number of projects to consolidate its leadership.

Energy

Research and use of different energy sources, the development of a complete distribution system that reaches every musicality and Antioquia, and the provision of gas over a network are aspects of a company that holds an outstanding place in the Colombian electrical sector, supplying 23.9% share of the demand in the country.

EPM has built the backbone of the hydroelectric system in Colombia. After many years of experience developing hydroelectric projects, EPM has been advancing for more than a decade with research on the use of other energy sources as a way to contribute to the planet's environmental sustainability and to open new areas for its national and international growth.

Its sound operational and commercial management, together with its ability to relate and create confidence in the Colombian and international financial sectors, are the basis of an electrical energy system which, at the end of 2009, includes assets for $19.7 billion.

• Net effective capacity of EPM's generation system: 2597.6 MW, equivalent to 19.34% of the nation’s installed generation capacity.

• Distribution system: 22% of the national total.

• Gas over a pipeline: 9% share in the Colombian market.

Energy generation

• Hydroelectric power stations: 24

• Thermoelectric power stations: 1 (La Sierra thermoelectric power station, municipality of Puerto Nare, Antioquia)

• Aeolic Farms: 1 (Jepirachi, in the upper Colombian Guajira)

With its quality certification for the operation and maintenance of the energy generation process, EPM is a guarantee of reliability for the Colombian electrical system.

Porce III and Porce IV, with a capacity of 660 MW and 400 MW respectively, are two of the hydroelectric generation projects currently under construction.

The first generation unit in Porce III will start producing electrical energy at the end of 2010, and around the same time construction of the first civil works for Porce IV will begin. Operations will start in 2015.

In Panama, through its affiliate Hidrológica del Teribe (HET), the Bonyic hydroelectric power station is being built. This power station will be able to generate up to 31.3 MW and will contribute to decrease that country's dependence on imported oil and other fossil fuels that are highly contaminating of the environment.

In Colombia, EPM is also part of the Corporation that is working to develop the Hidroituango project, which will have the largest capacity in the country with a total of 2400 MW.

All these projects that consolidate EPM's important role in the Colombian electrical landscape also indicate the path taken in their research on alternative energy sources. For example, the pioneering experience of Jepirachi which uses wind energy, and La Vuelta and La Herradura micro power stations which meet the conditions established by the Kyoto protocol as a mechanism for clean development.

Energy transmission and distribution

• Networks: 60,255 km

• Transformers: 90,000

• Substations: 133

EPM brings the magic of light to thousands of people in Antioquia. Its Energy Transmission and Distribution strategic business unit (SBU) transports and sells energy, reaching 1,720,000 homes in 123 municipalities around Antioquia, and in one municipality of Chocó, covering an area of approximately 64,000 km².

In the rest of Colombia, it provides this utility to 340 municipalities through its affiliates CHEC and EDEQ in the Coffee Growing Area, and in the east of the country through two other companies in its portfolio: ESSA and CENS in the Departments of Santander and Norte de Santander, respectively. The company is currently serving 12,000,000 Colombians.

EPM's Transmission and Distribution Strategic Business Unit has been awarded the ISO 90,001:2000 quality certification for the operation of the National Transmission System (NTS) and also for the infrastructure used for the operation and maintenance of the substations and lines, setups, public lighting, and decorative Christmas lighting.

Natural Gas

• Steel pipelines: 82.9 km

• Polyethylene pipelines: 3811 km

• Regulation stations: 16

• Ringed customers: 798,891

• Connected customers: 474,516

Since 1996, when the pilot stage was implemented, EPM has been providing natural gas service over a pipeline, a safe, economical and environmentally friendly energy alternative which is currently being expanded to the 10 municipalities that make up the Aburrá Valley, including Medellin, and other locations around Antioquia.

The service has been diversified to meet the needs of industries, SME's, retailers and transportation providers, in addition to household subscribers. For large industrial companies, EPM expanded its natural gas coverage to the municipalities of Guarne and Rionegro, in the East of Antioquia.

Residential natural gas

• Households served: 448,286

• SME's and retailers: 6,572

The expansion into other municipalities in Antioquia started in 2009 using the Compressed Natural Gas system: La Ceja, La Unión, and El Retiro.

Natural gas for vehicles (VNG)

A service that is reflected in an improved quality of air for the Metropolitan area of Medellin.

• Vehicles converted to use natural gas in the Aburrá Valley: 30,865

• Service stations: 51

Water

• Potabilization plants: 10

• Waterworks: 3,580 km

• Waste water collection and transportation networks: 4,315 km

• Coverage: 100% in the urban areas of the Aburrá Valley

Potable water, and waste water collection, transportation, and treatment are the services provided by EPM, with certified quality in all phases of the process, throughout the ten municipalities of the Aburrá Valley: Medellin, Bello, Envigado, Itagüí, La Estrella, Sabaneta, Copacabana, Girardota, Caldas, and Barbosa, with a total of 919,691 subscribers.

Regional companies

In addition, in various parts of Antioquia and the country EPM continues to implement the model of regional water systems, with the regional companies for Uraba, the West, Quibdó, and the East of Antioquia.

In an alliance with several institutions in Antioquia, Empresas Públicas de Oriente was recently created to provide waterworks, sewer and sanitation services in several rural and suburban areas in the municipalities of Envigado, Rionegro, and El Retiro.

Cleanup of the Medellin River

In order to continue cleaning up the Medellin River, which is the city's most important water body, EPM will start construction of the second waste water treatment plant in the Aburrá Valley.

After ten years of operation, the San Fernando treatment plant, with the capacity to treat 1.8 m/s, the Bello plant will be built in the North, with the capacity to treat 5.0 m/s beginning in 2012.

Also, to transport the waste waters to the new plant, the 8 km long 'North Interceptor' will be built, conceived as an unprecedented engineering work in Antioquia.

Telecommunications

Human talent, experience, strategy, infrastructure, support, and commitment to the customers.

This is UNE, an EPM Group company.

Including all its affiliates, the company serves close to 70% of the urban population in Colombia.

• Fixed telephony: 2.096,000 lines

• Internet: 563,846 users
• Television: 755,000 users

UNE is the brand that identifies EPM's telecommunications affiliate. It provides information and telecommunication technology services to its subscribers all over the country.

Its portfolio includes the most advanced fixed and mobile telephony services, broadband internet, mobile internet, and long distance, all with the support of multiple network and access technologies in which UNE has always been in the forefront.

EPM key numbers

EPM's financial results for 2009 were positive and reflect the dynamic growth of the Business Group, as well as cost and expense control in keeping with the circumstances, always in the pursuit of its corporate objective of sustainability.
  • View graphs

EPM Group

Quality of life, development, and social and environmental responsibility have made EPM into an outstanding benchmark in the public utilities sector around the world.

To leverage its achievements during its life as a local company in Medellin, EPM has become an important Group that has a presence in different regions around Colombia.

EPM's investment portfolio consists of seven energy companies, one of them headquartered in Panama, and the promotion of regional waterworks and basic sanitation entities. Its affiliate EPM Telecomunicaciones, heads seven companies in this sector, with operations in Colombia, the United States and Spain.

EPM's strengths

EPM’s good corporate governance practices were strengthened when the Corporate Governance Code and the Framework Agreement for relations between the municipality of Medellin and EPM were adopted in 2007.

Good corporate governance

EPM has budgetary and administrative autonomy. Together with its owner, the municipality of Medellin, it has set forth clear rules expressed in a Governance Agreement.

Transparency

EPM has procedures and controls, with equal opportunities for hiring and purchasing goods, services, and human talent.

Human talent

A large percentage of the workforce consists of professionals and specialized technicians. The selection and promotion system is merit-based.

Financial support

EPM generates confidence in multilateral and private banking. Its public debt instruments had been receiving the highest international ratings during the past decade.

Experience

The company has a 55 year track record in the design, construction and operation of electrical generation and distribution, waterworks, and telecommunications systems.

Commercial capability

EPM stands out for its skills and the infrastructure to manage mass markets and corporate clients in all public utilities.

Social responsibility

In its history, its policies and its organizational strategy, the company's commitment to the community is reflected in many programs and activities inspired by a relationship of mutual benefit for the company and society.

Environmental policy

Rational use of resources, compliance with environmental legislation, and participation in stakeholders groups are part of this policy that includes the whole business group.

Research and innovation

EPM encourages new proposals from its human talent to improve internal processes. In addition, the company works with universities and research centers on projects related to public utilities.

Corporate social responsibility

Sustainability is EPM's basic purpose. To achieve that, the organization works to establish a relationship of mutual benefit for the company and society.

Based on this CSR, relations with the environment lay at the core of EPM's strategy.

Global pact: in 2006, EPM joined this UN initiative to promote human and labor rights around the world, protect the environment and the fight against corruption.

Development goals for the millennium: with this initiative, the UN wants to achieve certain minimum levels of human development in every country by 2015. Each year, EPM records its contribution to the reduction of child mortality, the fight against diseases such as malaria, the promotion of universal elementary schooling, the guarantee of environmental sustainability, and the eradication of poverty.

CSR with customers: access to services

More coverage and easier purchases for low income customers and for rural communities: in addition to educational programs on responsible consumption and safe use of public utilities.

CSR with the community and the environment
Sustainable human development

CSR with the suppliers: creation of social employment
EPM is one of the greatest sources of employment in Medellin and Antioquia: an average of 24,145 jobs per month during 2009

EPM also encourages social contracts with community action boards, cooperatives and interpreting aerial concerns, with the support of development organizations.

EPM's social contracts

CSR with the owner: sustainable transfers for social development

Based on the corporate governance practices that define the relations between EPM and the municipality of Medellin, each year EPM transfers, under its statutes, 30% of its surplus to the municipality of Medellin for social investment. Additional sums for specific projects are transferred by agreements issued by the municipal Council.

Financial surplus transfer to the municipality of Medellin during 2009: $587.019 million.

Andesco awards

EPM achieved the highest score among the companies that ran for the Andesco Corporate Social Responsibility Awards in 2009. The company was not given the award because it had already received it in 2007.

EPM receive the special award in the category of best work environment for implementing the “Te guío” project created to facilitate access to the benefits to which company employees are entitled: 2009.

Debt risk ratings

EPM has excellent corporate management that is reflected by the AAA rating from Duff & Phelps
Duff & Phelps
Duff & Phelps Corporation a publicly traded financial advisory and investment banking firm, providing services principally in the areas of valuation, transactions, financial restructuring, dispute and taxation...

for its bond issues in the local market, and for its corporate debt. 2009.

The Baa3 investment grade rating by international risk rating agency Moody’s Investors Service, New York, both for EPM’s corporate debt and its international bond issue for up to US$ 500 million, means that it is rated by Moody’s among the select group of entities that the most demanding investors believe are worthy of receiving their investments. 2009.

Fitch Ratings gave EPM a BB+ for its USD 500 million bond issue. This is the highest rating that a company can hope for from this international rating firm. 2009.

CIER Award

During the past seven years EPM has achieved the highest scores in the category of “Quality in the Supply of Electrical Energy” in the survey carried out by the Regional Energy Integration Commission (Comisión de Integración Energética Nacional – CIER). During the last survey, in addition to this award, the electrical energy service was as the third best quality among 52 electrical energy distribution companies in 13 South and Central American countries. In the second category — companies that serve up to 500 thousand subscribers— second and third places went to (silver and bronze) went to EPM affiliates CHEC (Caldas) and ESSA (Santander). 2009.

Transparency Award

“EPM, one of the two most transparent companies in Colombia in their contracting processes” The selection was made by over 200 business leaders surveyed by the Colombian Chamber of Infrastructure (Cámara Colombiana de la Infraestructura) in several cities around the county, among members and non-members of this institution. 2006.

Best implementation of a billing system at a global level

World Billing Award, in London, one of the most important international events in billing trends. 2005.

National Excellence Award given by Suratep, a professional risk management company

The company with the best occupational health management among 9500 Colombian companies: 2001.

Number one in the Colombian Electrical Sector

Evaluation by the Superintendence of Residential Public Utilities. 1999.

Portafolio Empresarial Award to "The Company of the 20th Century in Colombia"

Given by the Portafolio newspaper. 1999.

A company with a reputation

Reputation is important because it speaks about credibility, values, ability to be heard, and establish effective relationships with various stakeholders.

In the last yearly reputation evaluation carried out by the firm Ipsos Napoleon Franco, EPM scored above the national average among subscribers in homes and companies, suppliers, investors, and employees.

Other studies

Merco (Monitor Empresarial de Reputación Corporativa) – Corporate Reputation Business Monitor: second place among public utilities and eighth among general Colombian companies. In addition, EPM climbed positions in the economic and financial results variables, internal reputation and work quality, and ethics and corporate responsibility.

Semana Magazine: EPM is one of the ten companies that generate most trust in Colombia, together with international brands such as Sony, Adidas, Nike, Nestlé, Nokia, and Mazda.

“Medellin, Cómo Vamos 2009”: (Medellín, how are we doing? 2009) highlights EPM’s results in areas such as level of public utilities satisfaction, citizen responsibility, and public administration.

Dinero Magazine and Invamer Gallup: place EPM among the top five companies that are most admired, most innovative, best managed, most sustainable, most capable of attracting, maintaining and developing talent, and with the highest quality standards in products and services. EPM is also among the companies where people would most like to work and that will come out stronger through their management of the crisis.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK