Buenos Aires, Argentina --- (METERING.COM) --- May 8, 2007 – In terms of an agreement with the Argentine Secretary of Energy, Buenos Aires utility Edenor will introduce a new tariff structure on February 1, 2008.
The latest resolution (434/2007), published on April 30, 2007, updates an earlier Adjustment Agreement concluded in December 2006 and revises the tariff adjustment timeline. In the event that the tariff resulting from the Integral Tariff Adjustment (RTI), which will take effect on February 1, 2008, is higher than the tariff contemplated by the Adjustment Agreement, the increase will be made in two phases, with the first on February 1 and the second six months later.
To date electricity tariffs in Argentina have been frozen at the 2001 levels, following the economic collapse of the country at the end of 2001 and the subsequent devaluation of the Argentine peso from parity with the U.S. dollar to a level around 3 pesos to the dollar. As a result electricity has become increasingly cheap for consumers, while utility revenues have shrunk.
The resolution also required Edenor to present an investment plan by no later than May 1, and this requirement has been complied with, the company reports.
Edenor (Empresa Distribuidora y Comercializadora Norte S.A.) is the largest electricity distributor in Argentina in terms of number of customers and electricity sold, with its distribution zone including the northwestern zone of the greater Buenos Aires metropolitan area and the northern part of the city of Buenos Aires.