Working with the People and Their Territories, We Continue to Build

Working with the people and their territories, we continue to build stories of progress Sustainable management Material topics Rates and prices Sustainable management 02 Content • Rates andprices______Invoice_ Gas rates______Electricity rates______Cleaning fees______Aqueduct andseweragerates______35 23 27 16 12 6 02 Sustainable management

Rates and prices

Management before the Colombian National Government and regulatory entities for the application of rate methodologies that are fair and efficient for customers, accompanied by education and communication activities for customers and users to facilitate understanding of the UTILITY bill and the factors that affect the rate.

The rates for publicservices provided by Grupo EPM are regulated. For this reason, the Colombian Government and the regulatory entities are permanently proceeding with the management so that the rate methodologies that are applied are fair and efficient for the clients. The competitive rate is a purpose of Grupo EPM, and it is for this reason that, additionally, it works on a business efficiency scheme in its costs and in its processes.

In the case of large consumers of electricity and natural gas, the Grupo EPM offers rates to be negotiated with its customers in the components of the marketing margin and the value of the supply. In this case, the other components are regulated (transport, distribution and 6 others).

Importance

It allows the recovery of costs and the achievement of the strategic objectives of the company. It impacts the trust of stakeholders in the organization by influencing their perception of the fairness of rates, by contrasting the Company’s surpluses with people’s income and with the proportion in which both increase over time.

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Main achievements

The achievements are cut to December 31, 2020.

Program, project, Challenges Company Follow-up closure Compliance initiative or action Work was carried out before the CRA, with the accompaniment of Andesco, where arguments were presented that from Modify Resolution CRA 688 of 2014 regarding the point of view of the Company and the sector merited EPM Total the calculation of the investment provision. modifying the norm. The CRA analyzed the issue and published Resolution CRA 938 of 2020 where the manner of calculation of the investment provision is modified. On December 11, 2020, a request for a particular modification of the Aguas de Malambo rate formula was filed with the CRA in order to adjust the following variables and parameters: i) 7 Request the rate modification (components: Aguas de the projection of users, consumption and losses, ii) the Index of POIR and demand) of the aqueduct and Total Malambo Losses per Standard Billed Subscriber (IPUF *) replace it by the sewerage services. Economic Level of Losses -NEP- calculated for the Company’s Aqueduct and own system and iii) the Regulated Work and Investment Plan sewerage rates -POIR- Request a rate modification from the CRA It was possible to define that the development of the tariff Aguas (components: POIR and demand) of the modification is by service provision area, this will be presented Partial Regionales aqueduct and sewerage services. to the Board of Directors in 2021. Obtain the declaration of regional market by the CRA, for the regional tariff of the aqueduct The declaration of the regional market for EPM was obtained and sewerage services in the municipalities EPM by the CRA for a period of up to 20 years, supported by Total of the interconnected system, Caldas and Resolution CRA 934 of 2020. Rionegro. Approval was obtained from the Company’s Board of Make the request for a rate modification of the Emvarias Directors to proceed with the application before the CRA in Partial cost of final disposal of the Cleaning service. 2021.

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Program, project, Challenges Company Follow-up closure Compliance initiative or action Manage the approval of income for the Grupo EPM’s electricity distribution business Admission approval was obtained. Regarding the and actively participate in the process of EPM remuneration methodology of the distribution business, it Partial defining the new transmission remuneration was raised by the regulation commission for 2021. methodology. 23 deliverables out of 52 were completed, with a project At EPM Implement and lead the technical, progress of 86% over the planned 88% goal. The main regulatory, financial and administrative milestones achieved were: Electricity rates implementation of the standards issued by • Incentive and compensation quality scheme certification. CREG related to CREG Resolution 015 of 2018, EPM • Internal audit for asset management certification. Partial and monitor and standardize procedures in • Satisfactory external audit for AOMs. the Colombian subsidiaries of the business • Computer developments required for implementation. 8 group. • Employee training on the CREG Resolution • 015. Manage the approval of income for the It was approved in April 2020. Total electricity distribution business. EDEQ The request for approval of distribution charges was formalized before the CREG. Approval is expected in the first Manage the approval of natural gas retail half of 2021. Partial Gas rates distribution and marketing charges. EPM The CREG did not advance in the definition of the methodology for remuneration of marketing positions that it had proposed on its agenda.

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Challenges Scope and coverage

Program, project, Challenges Company Business Geography initiative or action Implement and lead the technical, regulatory, financial and administrative implementation of the standards issued by the CREG related to CREG Electricity rates EPM Energy - T&D Colombia - Antioquia Resolution 015 of 2018, in EPM and carry out monitoring and approval of procedures in Colombian energy subsidiaries. Respond in a timely manner to the requests made by the CRA regarding the process of issuing the next rate framework for large water supply, EPM Colombia sewerage and Cleaning providers. Aqueduct and Request before the CRA the rate modification (components: POIR, demand Water and Cleaning sewerage rates Grupo EPM Colombia and / or losses) of the aqueduct and sewerage services.

Implement the regional rate for the aqueduct and sewerage services in EPM Colombia - Antioquia 9 the municipalities of the Interconnected System, Caldas and Rionegro. Request before the CRA the rate modification of the cost of final disposal of Cleaning fees Emvarias Water and Cleaning Colombia - Antioquia the Cleaning service. Communicate the rate increases for the year 2021, with a pedagogical approach that facilitates understanding by the business community about Business outreach the relevance of publicservices as a fundamental input in the production EPM All businesses Colombia - Antioquia events chain and in the economic reactivation of commercial and industrial sectors under the current panorama of the region.

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Sustainable Development Goals

Associated stakeholders 10 • Clients and users • Colleagues • Owner • State • Investors • Partners

GRI standards Contents and own indicators 103 - 1 Explanation of the material topics and its coverage. 103 - 2 The management approach and its components. 103 - 3 Evaluation of the management approach. EPM - 13 Rates by type of service.

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Scope and coverage

Companies Geography Colombia – Antioquia Empresas Públicas de Medellín - EPM Colombia – Caldas

Aguas Regionales EPM Colombia – Quindío Colombia – Risaralda Aguas Nacionales EPM Colombia – Santander Colombia – Norte de Santander Empresa de Aguas del Oriente Antioqueño Colombia – Malambo, Atlántico

Aguas de Malambo Chile El Salvador Empresas Varias de Medellín - Emvarias Guatemala México 11 Central Hidroeléctrica de Caldas - CHEC Panamá

Electrificadora de Santander - ESSA Business Company de Energía del Quindío - EDEQ Water Sanitation Centrales Eléctricas del Norte de Santander - CENS Electricity power Gas

Volver al contenido Invoice

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Invoice

The EPM invoice is the Company’s means to charge for the publicservices it provides and to communicate with customers and users through a modern, personalized, close and easy- to-interpret format, which also seeks to facilitate their understanding of the invoiced values and at the same time keep them updated with information of interest for them.

Performance in 2020

The year 2020 was one of great challenges due to the pandemic generated by COVID-19.

Faced with this situation, the Company implemented the following actions that were reflected in the billing:

• Reinstallation and reconnection of energy and gas services. • No suspensions or cuts for non-payment in energy and gas to residential and 13 non-residential customers. • Suspension in the collection of credits and financing. • No charge of interest on arrears. • Payment facilities for debts prior to the COVID-19 health emergency, with special rates and terms. • Payment agreements for clients of the unregulated energy market, in force from March 23 to July 31, 2020. • Deferred payment option for non-residential customers. For energy and gas consumption billed in April, May and June 2020. In aqueduct and sewerage, it was applied for consumptions invoiced between March 17 and July 31, 2020. • For Prepaid Water customers, no charge of 10% of the debt in each recharge, from March 23, 2020 to July 22, 2020.

A special installment payment program for public services was also activated, through this, the client could divide the value of the EPM invoice into up to three payments during the month. In addition, the ongoing programs continued: Prepaid Energy, Prepaid Water, partial payment of the bill and financing plans.

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When interpreting the invoice, it is important to be clear about the concepts that influence the values to be paid by customers. The main elements to be considered are the consumption units and the rates for each of the billed services. In addition, concepts such as credits, days of consumption and work performed, among others, must be taken into account.

The consumption of each one of the services depends mainly on the habits of use that the client has; Variables such as the NUMBER of people who live in the property, the technical conditions of the installations and the characteristics of consumer appliances and household equipment influence. The days of consumption that are taken into account for billing also influence consumption, since they may vary in some months of the year due to factors such as the NUMBER of days of the month and holidays, among others.

In Colombia, the rates for each of the services are defined by the respective regulatory commissions through rate formulas that, depending on their application and the different variables defined for each of the services, may define increases or decreases in rates.

In addition, there are other concepts that must be taken into account when reviewing the invoice values: delinquency interest for accounts pending or paid after the date, financing of consumption, work carried out, new services or purchases made with the Somos credit, charges for suspensions or reconnections of the service. Additionally, in some Antioquia municipalities, EPM has agreements to bill the services provided by other entities, including 14 the Cleaning fee and publiclighting, and other products such as vital insurance and home network.

In 2020, education and communication activities were carried out to facilitate the understanding of the invoice:

Reading to your measure aimed at promoting understanding of the meter reading process and the bill. Through home visits and virtual conversations, about 85,500 people were approached.

26 “We are there for you” events, 12 Cuidamundos activities and 941 sensitized community leaders, meetings that allowed closeness, pedagogy and the strengthening of relationships of trust with clients, users and the community.

Pedagogical communication campaigns were also carried out to promote the efficient use of publicservices during confinement due to COVID-19.

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Scope and coverage

Companies Business Water Empresas Públicas de Medellín - EPM Sanitation Geography Electric power Colombia – Antioquia Gas

Volver al contenido Aqueduct and sewerage rates

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Aqueduct and sewerage rates

The household public services of aqueduct and sewerage are regulated, which is why the Grupo EPM makes permanent work before the National Government and the decentralized entities of regulation and control, to contribute to the well-being of the population, through market conditions that allow provide these services with quality, continuity and coverage at competitive and efficient rates, which also guarantee the financial sufficiency of the Company.

Performance in 2020

In 2020, the Colombian companies of the Grupo EPM participated in regulatory spaces established by the Commission for the Regulation of Drinking Water and Basic Cleaning - CRA, by the Superintendency of residential publicServices - SSPD and by the Ministry of Housing, City and Territory - MVCT. The predominant theme was all the regulatory development associated with the health emergency due to COVID-19. In Colombia the National Government, through the Ministry of Housing, City 17 and Territory and the Regulatory Commission of Water and Basic Cleaning, implemented a series of measures on publicservices residential water and sewerage: reinstallation and immediate reconnection of the aqueduct service, temporary suspensions of rate increases, deferred payment of homepublicservices, direct transfer of resources from the General Participation System -SGP-, increase in the subsidy limit, among others.

Important sectoral definitions were presented, such as the provision of resources due to differences between planned and executed investments and the foundations of the next tariff framework.

Regulatory work in 2020 consisted of monitoring, participation and work in the general regulations for the sector due to the measures implemented by the National Government to respond to the economic and social effects of the pandemic. This produced a normative compendium constituted by the resolutions of the Commission for the Regulation of Drinking Water and Basic Cleaning (CRA) 911, 915, 916, 918, 919, 920, 921, 922, 923, 932 and 936 of 2020, which created an environment where it was sought to protect customers and users and companies so that they can continue with the provision of quality services.

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During this year, the Grupo EPM implemented the Management and Results Plan (PGR) referred to in Resolution CRA 906 of 2016, which was modified and clarified by Resolution CRA 926 of 2020. This resulted in the structuring of a calculation and reporting scheme for the 54 management indicators requested in the PGR, which will be consigned in the Single Information System (SUI) of the Superintendency of residential publicServices (SSPD). Annually, the surveillance and control entity will carry out an analysis of the risk level of each provider through the Single Sector Indicator (IUS).

Finally, among the most important regulatory steps are the issuance of Resolution CRA 938 of 2020, which modified the provision of resources due to differences between the planned and executed investments of the Regulated Works and Investments Plan - POIR. This was achieved thanks to the sectoral work articulated through Andesco.

EPM Aqueduct - Full rate (SEC 4)

Fixed charge (COP / User) 2018 2019 2020 Metropolitan area 6,173 6,359 6,551

Variable charge (COP /m³) 2018 2019 2020 Interconnected 2,357 2,596 2,843 18 Caldas 1,779 1,925 2,091 Barbosa 1,735 1,996 2,305 Source: Water and Sanitation Commercial Directorate.

* Values as of December of each year in current prices, where the evolution of the charges charged to customers can be appreciated. These values correspond to the full rate, that is, without including the subsidies or contributions that each municipality determines.

EPM Sewerage - Full rate (SEC 4)

Fixed charge (COP / User) 2018 2019 2020 Metropolitan area 3,543 3,650 3,760

Variable charge (COP /m³) 2018 2019 2020 Interconectado 1,876 2,289 2,407 Caldas 930 1,084 1,236 Barbosa 1,191 1,318 1,445 Source: Water and Sanitation Commercial Directorate.

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Aguas regionales

Aguas Regionales Aqueduct - Full rate (SEC 4)

Fixed charge (COP / User) 2018 2019 2020 Region: Occidente 8,133 8,407 8,661 Region: Urabá 7,001 7,224 7,443

Variable charge (COP /m³) 2018 2019 2020 Region: Occidente Santa Fe de Antioquia 1,569 1,868 1,885 San Jerónimo 1,689 1,799 1,919 Sopetrán 1,280 1,491 1,717 Olaya 884 1,058 1,240 Region: Urabá Apartadó 1,442 1,544 1,559 Carepa 825 1,006 1,197 Chigorodó 1,552 1,670 1,613 Mutatá 1,847 1,903 1,943 19 Turbo 1,903 2,026 2,087 Bajirá 1,847 1,903 1,943 El Reposo 1,442 1,544 1,559 Source: Water and Sanitation Commercial Directorate.

* Values as of December of each year in current prices, where the evolution of the charges charged to customers can be appreciated. The variations correspond mainly to the indexation of the value of the rates with respect to the CPI, thus allowing the recovery of costs and the provision of a quality service. These values correspond to the full rate, that is, without including the subsidies or contributions that each municipality determines.

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Aguas Regionales Sewerage- Full rate (SEC 4)

Fixed charge (COP / User) 2018 2019 2020 Region: Occidente 4,722 4,864 5,011 Region: Urabá 4,040 4,172 4,298

Variable charge (COP /m³) 2018 2019 2020 Region: Occidente Santa Fe de Antioquia 1,209 1,365 1,042 San Jerónimo 2,104 2,455 2,805 Sopetrán 799 1,170 1,565 Olaya 469 613 775 Region: Urabá Apartadó 1,900 2,161 2,224 Carepa 1,237 1,402 1,577 Chigorodó 1,701 1,919 1,963 Mutatá 1,117 1,318 1,516 Turbo 1,205 1,337 1,427 20 Source: Water and Sanitation Commercial Directorate.

Aguas de Malambo

Aguas de Malambo Acueducto - Tarifa plena (estrato 4)

Concept 2018 2019 2020 Fixed charge (COP / User) 6,910 7,118 7,118 Variable charge (COP /m³) 1,646 1,696 1,618 Source: Water and Sanitation Commercial Directorate.

* Values as of December of each year in current prices, where the evolution of the charges charged to customers can be appreciated. The variations correspond to the indexation of the value of the rates with respect to the CPI, thus allowing the recovery of costs and the provision of a quality service. These values correspond to the full rate, that is, without including the subsidies or contributions that each municipality determines.

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Aguas de Malambo Sewerage- Full rate (SEC 4)

Concept 2018 2019 2020 Fixed charge (COP / User) 3,530 3,636 3,636 Variable charge (COP /m³) 821 852 850 Source: Water and Sanitation Commercial Directorate.

Aguas del Oriente

Aguas del Oriente - El Retiro - Aqueduct - Full rate (SEC 4)

Concept 2018 2019 2020 Fixed charge (COP / User) 6,786 8,468 8,468 Variable charge (COP /m³) 1,792 2,779 2,779 21 Source: Water and Sanitation Commercial Directorate.

* Values as of December of each year in current prices, where the evolution of the charges charged to customers can be appreciated. The significant variation in the rate from 2018 to 2019 corresponds to the application of the CRA 844 rate methodology of 2018. These values correspond to the full rate, that is, without including the subsidies or contributions that each municipality determines.

Aguas del Oriente - El Retiro - Sewerage- Full rate (SEC 4)

Concept 2018 2019 2020 Fixed charge (COP / User) 4,127 4,811 4,811 Variable charge (COP /m³) 679 1,182 1,182 Source: Water and Sanitation Commercial Directorate.

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GRI standards Contents and own indicators EPM-13 Rates by type of service.

Scope and coverage

Companies Geography Colombia – Antioquia Empresas Públicas de Medellín - EPM Colombia – Malambo, Atlántico Aguas Regionales EPM

Empresa de Aguas del Oriente Antioqueño Business Water Aguas de Malambo Sanitation 22

Volver al contenido Cleaning fees

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Cleaning fees

The public cleaning service is regulated, which is why the Grupo EPM carries out permanent work before the National Government and the decentralized entities of regulation and control, to contribute to the well-being of the population, through market conditions that allow the service to be provided with quality, continuity and coverage at competitive and efficient rates, which also guarantee the financial adequacy of the Company.

Performance in 2020

In Colombia the National Government, through the Ministry of Housing, City 24 and Territory and the Regulatory Commission of Water and Basic Cleaning, implemented a series of measures on Cleaning public services: increase in the frequencies of washing and disinfection of publicareas, deferred payment of services, among others. Additionally, for the Cleaning service, sectoral definitions were also presented, such as the productivity factor that companies must incorporate in their rates, clearer rules were defined for the implementation of incentives for use, and the bases for the next rate framework were presented.

For its part, Resolution CRA 912 of 2020 defined the productivity factor of the Cleaning service at 1.18%. This value had been estimated to display a lower value in the invoice as of April 2020, however, this term was modified by Resolution CRA 916 of 2020, which defined that

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such a factor must be incorporated into the billing of the month following in which the health emergency ends.

In April 2020, the Ministry of Housing, City and Territory, published Resolution 0172, which regulates and defines the eligibility criteria that the projects that intend to access the resources of the incentive for the use and treatment of solid waste must have. This has led to the analysis of the possible alternatives provided by the standard for its implementation and the viability of waste recovery projects for the city of Medellín.

Rates per user of the ordinary Cleaning service in Medellín

Concept 2018 2019 2020 Socio Economic Level 1 8,113 8,064 8,315 Socio Economic Level 2 11,233 11,173 11,482 Socio Economic Level 3 16,251 16,170 16,587 Socio Economic Level 4 20,109 20,027 20,456 Socio Economic Level 5 41,233 41,134 41,678 Socio Economic Level 6 50,123 50,088 50,332

Small Commercial Generators 51,558 51,713 51,033 25

Variable Charge m³ Large 51,809 55,634 58,612 Generators Source: Emvarias

* Values as of December of each year in current prices, where the evolution of the rates charged to customers can be appreciated. The variations correspond to the indexation of the value of the rates, with respect to indicators such as the IPC, the SMMLV, the Fuel Oil Fuel Oil and Diesel Oil ACPM (ICFO), and the earthworks index (IOExp), thus allowing the cost recovery and the provision of a quality service. The decrease in the rate charged to residential users in 2019 compared to 2018, corresponds to the decrease in tons presented by each subscriber.

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GRI standards Contents and own indicators EPM-13 Rates by type of service.

Scope and coverage

Companies Business Sanitation Empresas Varias de Medellín - Emvarias

Geography Colombia – Antioquia 26

Volver al contenido Electricity rates

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Electricity rates

By their nature, home public services are price-regulated. This means that the rates that EPM charges its clients are not freely chosen, but are subject to the provisions determined by the regulatory entity and supported by Law; in this case it is the CREG –Commission for the Regulation of Energy and Gas-. This entity dictates norms that establish the methodologies for calculating the rates and they are based on efficiency criteria so that efficient costs are transferred to the consumer. In all the regions where it provides its services, Grupo EPM seeks that rates are competitive so that they allow cost recovery and the sustainability of companies. In 2020, EPM continued its proactive work with the CREG and the National Government so that the rules issued for the next rate period reflect fair and efficient rates.

The costs covered with the rate are the assets required to provide the service through the production chain (Generation, transmission, distribution and commercialization), as well as the costs of managing, operating and maintaining them, in order to deliver electrical energy from energy sources to the end user’s home; additionally, the rate also covers the costs associated with the customer service support process.

Performance in 2020 28

During 2020, EPM continued to offer its clients competitive rates at all voltage levels, especially level 1: its price was always among the 4 cheapest in Colombia; The national companies of the Grupo EPM were on this same track.

The Company continued with the correct implementation of CREG Resolution 015 of 2018, which determined the new methodology for calculating the distribution charge. Said regulations have impacted the rate, given that this component has an important share in the unit cost, as it recognizes new projects that promote uninterrupted service with compliance with high international quality standards.

In attention to the provisions issued by the National Government in Colombia to face the health emergency caused by COVID-19, EPM accepted, as of March 2020, CREG Resolutions 012, 058 and 152 of 2020, which enable the rate option mechanism for the regulated market, in such a way that the energy tariff published from March to November, did not show variations; the December rate increased 0.5% compared to the previous month.

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Resolution CREG 104 of 2020 was also applied in June, which defined the monthly calculation of the rate for subsistence consumption of SEC 1 and 2, while the state of emergency declared by the Ministry of Health lasts, as the lowest variation between inflation and the cost of providing the service, giving priority to the benefit of the client.

In 2020, the management of the energy purchase strategy continued, which represented not only savings for users, but also efficiencies for the Company, by positioning itself as one of the most prominent buyers in the market, ranking among the top three places.

The coverage in long-term energy contracts was not less than 88%, which minimized exposure to the stock market, providing customers with fair prices and lower than the average market price, protecting them from fluctuations in the energy market.

Evolution of energy rates - EPM (COP / kWh)

Concept 2018 2019 2020 Socio Economic Level 1 214 223 228 Socio Economic Level 2 268 278 285 Socio Economic Level 3 424 441 485 29 Socio Economic Level 4 498 519 570 Socio Economic Level 5 Socio Economic Level 6 598 623 684 Commercial Industrial Source: Transmission and Distribution Vice Presidency / Energy Commercialization Transactions Unit.

* The values correspond to the rate in December 2020.

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Evolution of energy rates - EDEQ (COP / kWh)

Concept 2018 2019 2020 Socio Economic Level 1 228 234 240 Socio Economic Level 2 285 296 300 Socio Economic Level 3 450 453 501 Socio Economic Level 4 530 533 589 Socio Economic Level 5 Socio Economic Level 6 636 640 707 Commercial Industrial Source: Transmission and Distribution Vice Presidency / Energy Commercialization Transactions Unit.

* The values correspond to the rate in December 2020. 30

Evolution of energy rates - ESSA (COP / kWh)

Concept 2018 2019 2020 Socio Economic Level 1 215 223 235 Socio Economic Level 2 269 279 293 Socio Economic Level 3 419 450 499 Socio Economic Level 4 493 530 587 Socio Economic Level 5 Socio Economic Level 6 592 636 704 Commercial Industrial Source: Transmission and Distribution Vice Presidency / Energy Commercialization Transactions Unit.

* The values correspond to the rate in December 2020.

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Evolution of energy rates - CENS (COP / kWh)

Concept 2018 2019 2020 Socio Economic Level 1 216 225 240 Socio Economic Level 2 270 282 300 Socio Economic Level 3 451 453 508 Socio Economic Level 4 531 533 597 Socio Economic Level 5 Socio Economic Level 6 637 640 716 Commercial Industrial Source: Transmission and Distribution Vice Presidency / Energy Commercialization Transactions Unit.

* The values correspond to the rate in December 2020. 31

Evolution of energy rates - CHEC (COP / kWh)

Concept 2018 2019 2020 Socio Economic Level 1 234 243 245 Socio Economic Level 2 285 296 303 Socio Economic Level 3 466 472 515 Socio Economic Level 4 548 556 606 Socio Economic Level 5 Socio Economic Level 6 658 667 727 Commercial Industrial Source: Transmission and Distribution Vice Presidency / Energy Commercialization Transactions Unit.

* The values correspond to the rate in December 2020.

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Evolution of energy rates - Afinia (COP / kWh)

Concept 2020 Socio Economic Level 1 234 Socio Economic Level 2 285 Socio Economic Level 3 466 Socio Economic Level 4 548 Socio Economic Level 5 Socio Economic Level 6 654 Commercial Industrial Source: Transmission and Distribution Vice Presidency / Energy Commercialization Transactions Unit. * Afinia began operations in October 2020. The values correspond to the rate in December 2020. 32

Evolution of energy rates - ENSA (USD / kWh)

Concept 2018 2019 2020 Residencial 0.17 0.2 0.17 Commercial 0.21 0.24 0.22 Industrial 0.18 0.21 0.19 Source: Transmission and Distribution Vice Presidency / Energy Commercialization Transactions Unit.

* The values correspond to the rate in December 2020.

The reduction was due to lower energy costs, given the reduction in fuel costs.

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Evolution of energy rates - Delsur (USD / kWh)

Concept 2018 2019 2020 Residencial 0.21 0.228 0.192 Commercial 0.19 0.206 0.171 Industrial 0.16 0.169 0.136 Source: Transmission and Distribution Vice Presidency / Energy Commercialization Transactions Unit.

* The values correspond to the rate in December 2020.

The variations are mainly due to the decrease of around 24% (Delsur data in December 2020 figures) in the price of energy between December 2019 and December 2020, these variations are due to the decrease in the price of oil. 33

Evolution of energy rates - Eegsa (USD / kWh) Concept 2018 2019 2020 Baja tensión simple 0.14 0.17 0.16 Source: Transmission and Distribution Vice Presidency / Energy Commercialization Transactions Unit.

* The values correspond to the rate in December 2020.

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GRI standards Contents and own indicators EPM-13 Rates by type of service.

Scope and coverage

Companies Colombia – Caldas Colombia – Quindío Empresas Públicas de Medellín - EPM Colombia – Risaralda Central Hidroeléctrica de Caldas - CHEC Colombia – Santander Colombia – Norte de Santander Electrificadora de Santander - ESSA Colombia – Malambo, Atlántico Company de Energía del Quindío - EDEQ Colombia – Bolívar 34 Colombia – Cesar Centrales Eléctricas del Norte de Santander - CENS Colombia – Córdoba

Afinia Colombia – Sucre Colombia – Sur de Magdalena Distribuidora de Electricidad del Sur - Delsur El Salvador

Company Eléctrica de Guatemala - Eegsa Guatemala Panamá Elektra Noreste - ENSA

Geography Business Colombia – Antioquia Electric power

Volver al contenido Gas rates

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Gas rates

The domestic public service of natural gas through pipeline networks is regulated in prices by the Energy and Gas Regulation Commission - CREG. Under the definition of specific remuneration methodologies for each activity in the natural gas value chain (Production, transportation, distribution and marketing), this regulatory entity seeks to guarantee the transfer of efficient investment and administration, operation and maintenance costs to the customers.

It is understood that every rate is comprehensive in that it involves coverage and a level of quality of service. EPM seeks, in all the towns where it provides this service, that the rates are competitive and allow the recovery of costs and the sustainability of the Company.

The marketing cost, which is charged today through a fixed fee, pays for the entire customer service support process.

Performance in 2020 Evolution of gas rates - Integrated EPM (COP / m3) 36 Concept 2018 2019 2020 Socio Economic Level 1 876 928 1,004 Socio Economic Level 2 946 1,026 1,144 Socio Economic Level 3 1,694 1,884 2,168 Socio Economic Level 4 1,686 1,884 2,168 Socio Economic Level 5 1,961 2,201 2,552 Socio Economic Level 6 1,867 2,099 2,456 Non-residential sector (Commercial + Industrial) 1,489 1,491 1,780 Commercial 1.497 1,500 1,793 Industrial 1.481 1,482 1,767 Vehicular Gas 964 1,024 1,025 Source: Gas Vice Presidency, Commercial Management

* Average rate (including the fixed charge) based on the average consumption by stratum, of the municipalities of Medellín, Barbosa, Girardota, Copacabana, Bello, Envigado, ITAGÜÍ, Sabaneta, La Estrella, Caldas, La Ceja, La Unión, El Retiro, Sonsón, Apartadó, Turbo, Chigorodó, Carepa, Necoclí, Arboletes, Frontino, Cañasgordas, Fredonia, Santa Bárbara, Jardín, Jericó, San Juan de Urabá, Abejorral, Angelópolis, Belmira, Betania, Betulia, Caramanta, Carolina del Príncipe, Cocorná, Concordia, Gómez Plata, Granada, Guadalupe, Hispania, Montebello, Mutatá, Pueblorico, Puerto Nare, Salgar, San Carlos, San Luis, San Pedro de Urabá, San Rafael, Támesis, Tarso, Titiribí, Urrao, Valparaíso, Venice, Maceo, Amalfi, Santo Domingo, Caracolí, Yolombó, San Vicente, Ituango, Liborina, Olaya, Sabanalarga, San Andrés de Cuerquia, Valdivia, Concepción, Dabeiba, Remedios, San José de la Montaña, San Roque (urban), Toledo, Vegachí and Yalí.

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Evolution of gas rates - EPM Markets with investment resources (COP / m3) Concept 2018 2019 2020 Socio Economic Level 1 704 727 749 Socio Economic Level 2 923 952 975 Socio Economic Level 3 2,996 3,141 3,367 Socio Economic Level 4 2,945 3,156 3,378 Socio Economic Level 5 4,321 4,679 5,293 Socio Economic Level 6 3,805 3,955 4,175 Commercial 3,297 3,318 3,591 Industrial 2,995 3,032 3,355 Source: Gas Vice Presidency, Commercial Management

* Average rate (including the fixed charge) based on the average consumption by stratum, of the municipalities of Guatapé, El Peñol, Yarumal, San Pedro de Los Milagros, Santa Rosa de Osos, Entrerríos, Donmatías, Santa Fe de Antioquia, San Jerónimo and Sopetrán, Amagá, Puerto Berrío, San Jose del Nus and Cisneros.

Evolución de las tarifas de gas – EPM Integrado (COP / m3) 37 Concept 2018 2019 2020 Socio Economic Level 1 1,488 1,387 1,301 Socio Economic Level 2 854 953 921 Socio Economic Level 3 3,751 3,531 3,666 Socio Economic Level 4 Socio Economic Level 5 4,501 4,238 4,399 Socio Economic Level 6 Commercial 4,085 4,129 3,992 Industrial Vehicular gas 1,250 1,195 1,196 Source: Gas Vice Presidency, Commercial Management

* Average rate (including the fixed charge) based on the average consumption by stratum, of the municipalities of Guarne, Marinilla, Rionegro and Santuario.

As of the March / 2018 billing, CREG approved new markets and temporary distribution charges for the municipalities served by EPM. It defined an integrated market and 8 submarkets that correspond to the municipalities to which investment resources from the Nation were approved. The new regulatory framework defined in CREG Resolution 202/2013 also began to be applied.

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For the municipalities of the Southeast, the previous regulatory framework (CREG 011/2003) and its approved charges continued to be applied. As of the May / 2020 billing, tariff paths defined in CREG 048/2020 are applied.

The variation of the rate in SEC 1 and 2 corresponds to the first 20 m3. The variation is not comparable since the calculation depends on the behavior of the CPI and the maximum percentages of allowable subsidies.

The average rates are obtained from the average consumption of each market. The rate increases for 2020 were due to increases in the TRM of 15% and updating of supply contracts at the beginning of the year. The increase was also due to the recovery of the rate path of distribution charges as of March / 2020.

Subsidies and contributions - Gas EPM (COP millions)

Concept 2019 2020 Subsidy 51,902 82,202 Contribution 12,400 17,494 Deficit -39,502 64,708 38 Source: Transmission and Distribution Vice Presidency / Energy Commercialization Transactions Unit.

* The increase in the surplus in 2020 is due to the application of the rate path of CREG resolution 048/2020, and the additional 10% of subsidy granted.

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GRI standards Contents and own indicators EPM-13 Rates by type of service.

Scope and coverage

Companies Business Gas Empresas Públicas de Medellín - EPM

Geography Colombia – Antioquia

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