Colombia's Ecopetrol dissolving electric power unit

Colombian state oil company Ecopetrol has begun a liquidation process for wholly owned electric power subsidiary Ecopetrol Energía, less than seven years after its incorporation. 

The commercial registration of Ecopetrol Energía was cancelled earlier this month after Ecopetrol's shareholders voted in favor of its dissolution. 

Ecopetrol Energía was established in March 2018 with authorized capital of 3bn pesos (currently around US$700mn) and subscribed capital of the same value. 

The Bogotá-based group owned 99% of the company's share capital with the remainder held by Andean Chemicals, also a unit of Ecopetrol. 

Ecopetrol is currently precluded from generating electricity for commercial use because of its controlling stake in power transmission company Isa, which it acquired in 2021.

The government is seeking congressional support to overturn the law, which is designed to prevent companies from holding dominant positions throughout the electric power value chain.