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Fines and embargoes on power companies for XL weekend power outages

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The National Electricity Regulatory Agency (ENRE) reported this Sunday that the application process sanctions towards the companies that provide the service, Edenor and Edesurfor the repeated power outages over the long weekend that they left at least 570 thousand users without service.

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The new fines would be added to the total fines for $687 million (Edesur) and $293 million (Edenor) that companies have accumulated since September.

In turn, the regulatory body was reported to have decided to go ahead with a regulatory reform process a apply privileges so that companies cannot evade payments.

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As reported by ENRE, of the total number of affected users, 409,000 belong to the concession area of Edesurwhile 170,000 beyond Edenr.

The affected daily users were 184,857 on Thursday, 274,407 on Friday and 121,850 on Saturday. In many cases there is still no electricity supply.

Likewise, taking into account that the replacement times envisaged by the concession contract “have been significantly exceeded”, the ENRE ordered it within a maximum period of 24 hours, distributors must ensure normal service of the service to all interested users.

The Government will also invite companies to promptly demonstrate the provisions of the institution, under penalty of the application of sanctions also for this non-compliance.

Bonus for interested users

The ENRE, on the other hand, has announced that it will order the companies that for cases of illnesses in the electricity service that have exceeded 36 hours the long cut bonus is applied automatically.

In addition, they must credit the organization with the list of users reached from this provision.

During the weekend the head of ENRE, Walter Martellowho took office in September after the departure of María Soledad Manín, close to the deposed Undersecretary of Electricity, Cristinista Frederick Basaldreported that he monitored the situation together with the Minister of Economy, Sergio Massa.

In statements reported in a press release, Martello referred to the announcement made weeks ago by Enel, parent company of Edesur, that it has decided to sell its assets in Argentina.

“That Edesur has made the commercial decision to sell its position in Argentina, does not imply that we have to accept that this ‘withdrawal’ is at the expense of the users where the elderly, people with disabilities and users in general have to suffer this situation”, he assured.

Walter Martello: “Companies must honor contracts”

According to the information analyzed by the ENRE, a “lack of foresight of distributors”, The agency said in the press release.

In the press release they specify that the companies “in advance they were warned not only for the ENRE, but by meteorological consultants deprived of the climate situationTherefore, it cannot manifest itself as an unknown element.”

In this same sense, the release recalls that both distributors had recently presented the “Summer Plan” with the actions to be taken before climatic events. “Situation that reveals a new default by borrowers,” they said.

Regarding the sanction regime, Martello specified that “the sanction is not the only way”, but added: “It is the regulatory framework that we must apply for the violations of investments that determine the quality of the service and we will do so, with using all the necessary tools that companies understand that they have to fulfill their contracts respecting the commitment”.

The government postpones the comprehensive review of tariffs

The government has given up on the idea of ​​ordering electricity and gas tariffs until the end of the mandate. The provision of these services provides for complete rate reviews (RTI is the technical name) on an annual or half-yearly basis, depending on the legislation that regulates them.

The administration of Alberto Fernández has suspended these procedures It has just started its management, in December 2019, and will not regulate them for at least a year.

Though the removal of subsidies will continue (through segmentation) and increases in electricity and gas bills for 2023 will be “transitional tariff adjustments”.

This will achieve four years of non-compliance with the state’s obligation to conduct comprehensive rate reviews.

DS

Source: Clarin

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