Empresa de Energía de Bogotá: Electricity

Empresa de Energía de Bogotá (EEB) is a utility holding created in 1896 with a presence in the segments of electricity generation in Colombia, through Emgesa; electricity distribution in Colombia, via Codensa and Empresa de Energía de Cundinamarca (EEC); gas transport in Colombia, through TGI; gas distribution in Peru, via Calidda and Contugas; gas distribution in Colombia, through Gas Natural de Bogotá and Promigas; and electricity transmission in Colombia, Peru, Brazil and Guatemala. EEB has implemented a successful internationalisation strategy and is well positioned to continue its organic and inorganic growth in the segments of gas and electricity in Latin America.

The main shareholder of EEB is the city of Bogotá with a 76.2% stake in the company. Significant stakes in EEB are held by Corficolombiana, Ecopetrol (although it is currently in the process of selling its stake in EEB) and a number of Colombian pension funds. In 2014 the net profit of EEB was COP980.5bn ($360.8m). As of December 2014, EEB had total assets of COP12.3trn ($4.5bn) on a un-consolidated basis and total shareholders’ equity of COP8.6trn ($3.2bn).

Development Strategy

EEB continuously looks for opportunities in electricity generation, transmission and distribution, and gas transport and distribution in Colombia and abroad. Internationally, the main focus is in countries such as Peru, Mexico, Chile and Brazil. In the electricity generation segment, EEB constantly evaluates opportunities in the Colombian market to expand its already significant presence through Emgesa (controlled by Spain’s Endesa).

In the electricity transmission segment EEB has significant presence in Colombia, Peru, Brazil and Guatemala. In Colombia, EEB actively pursues new opportunities in the form of public auctions for new projects held by the Ministry of Energy and Mines, where it mainly competes with state-owned transmission companies like ISA and Empresas Públicas de Medellín. In Peru, EEB has a major presence through its joint participation with ISA in Red de Energia del Perú and Consorcio Transmantaro. Together, ISA and EEB consistently bid for new assets in the Peruvian market. During 2015, EEB entered the Brazilian electricity transmission market by acquiring a 51% stake in four concessions in different parts of the country. Finally, in Guatemala, EEB is progressing in its project Transportadora de Energía de Centroamérica and continuously evaluating new opportunities in that market and the broader Central American region.

It’s Electric

In the electricity distribution segment, EEB is mainly present through its stake in Codensa (controlled by Endesa) and EEC (the electricity distribution company covering the region around Bogotá, which will be merged with Codensa). The firm continuously explores alternatives to increase its presence in the local market. Potential opportunities include the distribution companies in Huila, Nariño, Meta and Caqueta, which are yet to be privatised.

In gas transport, EEB has the dominant position in Colombia and is also focused on Mexico and Peru. In Mexico there is a development programme for transport infrastructure which EEB evaluates permanently. In Colombia EEB expanded its position in Transportadora de Gas Internacional in 2014 by acquiring the stake held by Citi Venture Capital International, consolidating it as one of the two largest gas transport companies in Colombia (the other being Promigas).

In gas distribution, EEB is expanding its presence in Peru (where it operates through Calidda and Contugas), Mexico and Brazil. These countries offer huge potential to expand residential customers’ access to natural gas. EEB has been an active player in the regional energy sector, has a large investment plan to expand regionally and also across subsectors in energy. Importantly, as a large utility holding in the Colombian market, EEB has access to stable, substantial sources of funding, which leaves it well positioned to implement its significant capital investment plan.