EEB begins the defense of the rights of the people of Bogota
30 May 2014
- The Company filed a People’s Action against the Ministry of Finance and Public Credit to defend its right to participate, under equal conditions, in the process to buy 57,61% of the shares the Nation holds in Isagen
- Ms. Sandra Stella Fonseca, CEO of Grupo Energía de Bogotá, explained that she is acting responsibly and under the legal framework, thus, this People’s Action purports to reestablish the rights of the people of Bogota and seek guarantees for the company’s expansion by participating in the sale process and other projects, and requests the suspension of said process until the competent legal authority conducts a trial challenging the legality of Resolutions issued by the Industry and Trade Superintendence (SIC – for its Spanish acronym), which materially and legally, ban EEB from participating in such sale.
Bogota D.C., 30 May 2014. EmpresaEnergía de Bogotá (EEB), headquarters to Grupo Energía de Bogotá, filed a People’s Action against the Ministry of Finance and Public Credit with the objective of defending the rights of all Colombians, specifically those rights from the people of Bogota, so that a company which is mainly public, be allowed to participate in the process to buy 57,61% of Isagen shares, currently in the hands of the Nation. This in turn, will ensure the option of the right to participate in the country’s expansion of its generation business, under equal conditions disregarding regional or ownership nature, as per the law and regulations.
Ms. Sandra Stella Fonseca, CEO of EEB, explains that such action, filed before the Administrative Court of Cundinamarca, purports to reestablish the rights of EEB and accordingly, it requests the suspension of the sale process until the competent legal authority conducts a trial to challenge the legality of Resolutions issued by the Industry and Trade Superintendence (SIC), which materially and legally, ban EEB from participating in such process.
“In the respective People’s Action, we assert that there is a threat regarding the violation of EEB’s fundamental equality rights and due process principles, as the company does not enjoy the same conditions vis-à-vis its competitors in the sale process of the shares the Nation currently holds in Isagen. We do not want this Company from Bogota to be discriminated vis-à-vis other companies in the country or abroad,” stated the CEO of this Corporation.
The Chief Executive Officer of EEB, which is among the ten best companies in terms of delivering greatest profit to its shareholders (the Capital District holds 76.28% of its shares), further stated that this People’s Action seeks to suspend the sales process until the administrative contentious jurisdiction solves the claim for annulment and reestablishing the rights as regards the action to be filed against Resolutions No. 5545 of 6 February 2014, No, 19862 of 28 March 2014 and No, 32184 of 19 May 2013 issued by SIC, whereby it issued its opinion on the authorization for the corporate integration between EEB and Isagen, and authorized the former with certain restrictions, that in practice, would leave the company out of such process.
Complying with laws in force, it filed before the Administrative Judicial Attorney a request for extrajudicial conciliation as a prior requirement to submitting the annulment and reestablishment of rights action.
As it is publicly known, EEB meets all the requirements to participate in the process and control Isagen’s operation and it is within the regulatory limits pursuant the Colombian Energy Market. Therefore, it announced it would defend its right to conduct the generation activity and expand within the Colombian market. “EEB abides by the norms and thus we resort to these mechanisms to defend the company’s growth strategy which translates into greater benefits for the people of Bogota and other shareholders. We know that this is a long-term action, but we believe in the country’s legal system to allow us to grow in Colombia and not only abroad’ warned Ms. Fonseca.
Ms. Sandra Fonseca assured that the people’s action filed by EEB is based on ruling SU-1193-2000 of the Constitutional Court, whereby it protected the fundamental equality and due process rights of EPM, when said company was interested in buying Isagen shares within the sales process undertaken in the year 2000, which is the same process that is currently being undertaken by the Ministry of Finance and Public Credit.
We are certain that Isagen would be in the best hands and would develop its growth potential to the advantage of consumers given our sector growth and our corporate vision.
About Grupo Energía de Bogotá
Grupo Energia de Bogota is the leading corporation in the Colombian power sector. Through EEB it transports electricity to the most significant markets in terms of demand and size in the country and participates in the distribution of electricity through Empresa de Energía de Cundinamarca – EEC. It controls the largest natural gas carrier in Colombia, TGI S.A. In Peru, its company CONTUGAS has a 30-year concession for the transportation and distribution of natural gas in the Ica Department, likewise with its company CALIDDA distributes natural gas in the regions of Lima and Callao. In that same country, together with ISA, it holds stocks in REP S.A. and TRANSMANTARO S.A., which operate 63% of the electricity transmission system in Peru. In 2010, it established TRECSA - Transportadora de Centroamérica S.A.- in charge of building the most important infrastructure Project in Guatemala and will render electricity transmission services as of 2014. Furthermore, it holds an investment portfolio in important companies in the electric power sector, in which the following stand out, CODENSA S.A., EMGESA S.A., GAS NATURAL S.A. and Electrificadora del Meta - EMSA and to a lesser extent ISA and ISAGEN.
Jorge Armando Riaño
External Communications Adviser
Tel. 3268000 Ext: 1694.