Afinia plans

Company News    Jun 8, 2021 5:05 PM

CEO Blanca Liliana Ruiz spoke about the company’s results in recent months and plans for the coming years.

The expert told Valora Analitik that metrics of improvement in system reliability and collection have improved, after years of neglect by the previous operator.

Ruiz said that the energy service interruption dropped by 18% in 2020 and this metric has decreased 7% in 1Q21.

The company received collections at 75% in October 2020 and this was 84% in December; this metric rose to 85% in 1Q21.

Afinia’s long-term goals are: Increase collections by 20%, improve service quality and invest CoP$4T in the next five years.

Ruiz highlighted that the company will invest CoP$804B this year. This budget is financed with Afinia’s resources, although the firm does not rule out that it could be achieved through debt.

The company expects to maintain collection at 84% this year, considering that in some areas collection is only 11%.

Ruiz explained that this is because the company has some 130,000 users in subnormal areas that historically have been connected to illegal and unsafe networks.

Afinia seeks to strengthen the entire commercial cycle from installation, billing and collection, as this metric shows that 150,000 users do not have a meter (or it is damaged), generating nonconformity.

Within this year’s investment plan, 30% is insurance, in addition to fraud control to strengthen the network and avoid these adverse effects.

Bottom-Line: Afinia’s challenges are enormous because the Caribbean region has received little investment and maintenance in the energy sector in the last years.

However, the company has achieved positive results in a short time and the announced investments will be vital to continue with this step.

Collection will be the key success factor.

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