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The Government began to discuss what rate increase will authorize Edenor and Edesur

2021-01-21T21:37:33.840Z


The regulator called on the companies to establish what it defined as "transition rates" for the electric power distribution service. The impact of subsidies in an election year.


01/21/2021 18:24

  • Clarín.com

  • Economy

Updated 01/21/2021 6:24 PM

It's official.

The Government took the first step to

restore electricity distribution rates.

 The regulator (Enre) summoned the distributors

Edenor and Edesur

to participate in the process.

"The objective of the temporary adjustment of rates is to establish a

Transition Rate Regime

, until a Definitive Renegotiation Agreement is reached," reported Enre.

Although the rates have to be updated in accordance with the concession contracts, the Executive Branch modified this procedure by law and implemented this mechanism.

The call for Edesur and Edenor comes after

a busy year

for both.

Edesur was questioned by the mayors and they even asked for its expropriation.

Edenor changed owners: it

was from Pampa and now it has become a group controlled by José Luis Manzano and Daniel Vila.

"The National Electricity Regulatory Entity (ENRE) began the procedure of transitory tariff adjustment of the electricity distribution and transportation services under its control, through ENRE Resolutions No. 16 and No. 17/2021, until a definitive agreement is reached in the renegotiation with the distribution and transportation service providers, "reported Enre.

The Government stated its intention to

maintain the subsidies at around 2.2%

of GDP.

To achieve this, it should increase the rates of public services such as electricity and gas in a range that goes from

 30% / 40%

.

But Vice President Cristina Fernández de Kirchner expressed her opposition to these increases.

From there, it is estimated that the recomposition could be close to

9%

.

That number would not be enough to maintain the current levels of subsidies.

"In compliance with the provisions of Decree No. 1020/2020, the agency summoned the electric power distribution companies of the AMBA Edenor, Edesur and the carriers Transener, Transnoa, Transba, Transpa, Transcomahue and Distrocuyo to intervene in the process" , highlighted the Enre.

The previous administration had decided that Edenor and Edesur would leave the orbit of the national State and become controlled by the city of Buenos Aires and the province of Buenos Aires, which is the territory where they operate.

The idea was to emulate what happens with all the rest of the electricity distributors, whose rate schedule is decided by the governments of their provinces.

"The Enre will guarantee the corresponding instances of citizen participation and reliable communication, both to users in general and to the entities that bring them together, in order to guarantee the publicity and transparency of the process, as well as the right of access to the information and implement fair, reasonable and affordable rates in the terms of what is established by Laws Nos. 24.065 and 24.076 ", boasts the Enre.

Source: clarin

All business articles on 2021-01-21

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