Plans for tariff review scrapped in Argentina


Buenos Aires, Argentina — (METERING.COM) — November 28, 2007 – Plans to contract independent consultants to review tariffs have been scrapped by the Argentine electricity regulator ENRE (Ente Nacional Regulador de la Electricidad).

In a resolution from ENRE it is stated that due to the low number of tenders received – understood to be six – it is not possible to assure a homogeneous plan between the tenderers, with the risk of not being able to find a consultant for one of the electricity distributors. Accordingly the tender is being cancelled.

The tender called for a review for 2008 of the tariffs of the three main distributors, Edenor, Edesur and Edelap, which together supply electricity to the capital Buenos Aires and the nearby city of La Plata.

According to industry commentators, however, the move may be due to a plan by the government to continue with price controls, in the face of rising inflation.

Utility rates were devalued into pesos and frozen in January 2002 amid the economic crisis Argentina was undergoing at that time, and new interim rates schedules, which are in the process of implementation, were agreed with Edelap in January 2006 and with Edenor and Edesur in February 2007.