In 2023 EPM will have a budget of $24.2 trillion

This EPM release was published using machine translation.

Medellin, December 13, 2022 | Parent company EPM will have a budget of $24.2 trillion in 2023, destined in large part to the development of infrastructure projects and social initiatives that will contribute to transforming lives through the provision of public services with quality, continuity, coverage and reliability.

The budget was approved by the EPM Board of Directors at its meeting on Tuesday, December 13, and includes the necessary resources for the operation and investments in each of the Organization's segments: Generation, Transmission and Distribution of Energy, Gas, Provision of Water, Wastewater and others.

This budget contains resources to advance the start of operation of units 3 and 4 of the Ituango Hydroelectric Project, managing to deliver to the country a greater supply of energy, which added to the operation of units 1 and 2 can generate greater reliability in the electrical system. and a decrease in energy price rates. Resources are also incorporated for the strengthening and diversification of the energy matrix associated with Non-conventional Renewable Energies - ERNC with projects such as Tepuy, Hydrogen initiatives and electric mobility.

The investments for 2023 for $5.8 trillion include works to replace equipment, expansion and modernization of water, energy and gas service networks, maintenance, modernization and replacement of infrastructure, seeking to improve the quality and availability in the provision of services. public services.

Jorge Andrés Carrillo Cardoso, general manager of EPM, indicated that "our budget for next year is a commitment to the community, its quality of life and the environment, a large part of the investments are focused on the determined contribution that EPM has in solutions that contribute to energy transformation. Likewise, EPM continues to be an important driver of development in Medellín. By 2023, the budget for the transfer of surpluses to the District of Medellín will be $1.6 trillion, which translates into more resources for social investment and opportunities for thousands of people".

budget financing

The financing of the 2023 budget will be made with current income from public services provided in energy, gas, water supply and wastewater for $15.1 trillion (62%), credits for $4.2 trillion (17%) and the remaining value of $4.9 trillion (21%) corresponds to dividends received from subsidiaries, portfolio recovery, initial cash balance, among others.

In general, EPM's expense budget for 2023 will be distributed as follows:

Investment expenses: $9.8 trillion (41%):

o Investments in infrastructure for $4 billion.

o Assets and inventories for the provision of services and associated with the execution of investments in the order of $1.9 trillion.

o Long-term contracts for the commercial operation and maintenance of the infrastructure for $3.9 trillion, expenses that must be recorded in the investment component in accordance with current budget regulations.

Commercial operating expenses: $2.6 trillion (11%)

o Includes purchases of energy, gas, chemical products and other inputs necessary to guarantee the provision of public services.

Operating expenses: $7.1 billion (29%)

o Transfers to the District of Medellín are projected for $1.6 trillion, which corresponds to 55% of the estimated profit for 2022 for $2.9 trillion. This profit may be impacted by the deterioration of the investment in UNE for $981,290 million, originated in the information of Tigo-UNE of the business models, technological changes such as spectrum renewal, which demand capital and by the current situation included in the rate off; however, this issue will be reviewed with the information available at the time of the accounting closing of the financial statements as of December 2022.

o Taxes, fees and contributions to the Nation and territorial entities for $1.2 trillion, personnel expenses and acquisition of goods and services for $2.3 trillion, among others.

Debt service: $3.8 trillion (16%)

Final cash availability: $0.8 trillion (3%)

With its $24.2 billion budget and the development of important infrastructure projects in various latitudes, EPM guarantees the provision of services in a reliable and safe manner, thus contributing to the harmony of life for a better world.