As in the case of Edesursince edenor one is also claimed final rate adaptation and greater than the percentage increases that the Government wants to allow for the electricity bills.
The executives of the distributor that is controlled by a company belonging to the businessmen Daniel Villa; José Luis Manzano and Mauricio Filiberttiparticipate in the virtual public hearing convened by the National Electricity Regulatory Entity (ENRE) to adapt the values of the electricity service during this year.
In this context, during the day of this Monday, January 23, the company presented the main claims related to the need to receive a raise that allows it to remain operational; cancel your debts and be able to partly rebuild your cash flow.
According to the report that Edenor submitted to the body that depends on the National Secretariat of Energy, its requirement of funds to cover this year’s deficit amounts to $205,760 million.
According to the account that its executives made, that amount implies that 80% of the distributor’s residential users pay an average final bill with taxes of $2,757 per month.
“That average represents a cost of less than $100 daily for the electric power service”, details the work, which also indicates that, even with this recomposition, “customers would continue to pay a bill that is well below the average of the national system, which stands at $3,700 per month for family consumption.” .
With Edenor’s order, its customers would continue to pay a lower bill than the system average, which is $3,700
In this framework, the company emphasizes that since the last update in February 2019, They only registered two increases, one of 21% in May 2021 and another of 8% in March 2022.. That is, a global rise of 31% against a dollar showed a rise of 370%; salaries with increases of 415% and the CPI with 516%.
“The comparison against any of the variables is a clear sample of the situation facing the company,” warns the document that was presented during this day to ENRE officials.
The paper also shows that Edenor’s revenues increased 31% in the same period in which power generation rose 385%, gasoline 306% and prepaid medicine 425%, to compare with other services.
Less weight on the bill
In another paragraph, Edenor’s work ensures that 56% of the bill currently paid by its users corresponds to the price of energy; 24% are taxes and only 20% is for company services.
For this reason, the company understands that the so-called Distribution Value Added (VAD) has fallen significantly in recent years, going from representing 33% of the bill in 2018 to only 20% this month.
“In other words, the company lost 41% in the share of the bill to the benefit of generators and oil companies,” the report accuses.
The company of José Luis Manzano and Daniel Vila has invested US$2,000 million in the last decade
On the other hand, in the same period, the seasonal value of energy went from a participation of 42% to 56%, a difference that is striking in the sector, since the main generation companies had profits of more than $156,600 million and distributed dividends. for almost $9.3 billion.
In return, the company complains about not receiving any kind of subsidies from the National State; not having been able to distribute profits in the last 21 years, in addition to highlighting that all his income was invested in the network in the last 10 years, a period in which he disbursed US$2,000 million.
As a result of this investment plan, the duration of the outages was reduced from 33 hours in 2014 to less than nine hours per year per client in 2022, which implies a 73% improvement in the duration of the outages.
Something similar happened with the number of interruptions suffered by customers, which dropped from 9.5 outages per customer per year in 2014 to 3.7 last year, a decrease of 62%.
Based on these figures, the Edenor executives who participated in the public hearings understand that “if the rate is not adjusted, the company will still maintain its investments and the provision of the service as in recent years, but its income will not be enough to face its other commitments such as the purchase of energy or taxes”.
losses that accumulate
In its last balance presented before the National Securities Commission (CNV), corresponding to the first nine months of 2022, Edenor evidenced its scenario of financial instability and lack of recomposition of their accounts Product of the tariff policy carried out by the current government and the previous administrations of Kirchnerism.
This balance showed a loss of $18,107 million that, although it was $6,311 million less than that reported in the same period of 2021, which was $24,418 million, continues to be a heavy burden for what is considered the largest energy distributor in Argentina in terms of the amount of customers and electricity sold, with 3.2 million users and 20% of the total electricity demand in the country.
S well in that period his energy sales increased by 5.5%its results reflect an 8% drop in revenue and a 23% drop in gross margin in real terms, as a result of the tariff delay.
This was due to the fact that the increases granted by the Ministry of Energy within the framework of the segmentation process responded to increases in seasonal energy prices and not in genuine income for the distributor.
Already in the first semester, Edenor’s VAD had fallen by 16% compared to the same period of the previous year in real terms as a result of the rate delay.
in the last few months the same indicator deepened its retraction with a fall of 23% compared to the same period of the previous year in real terms.
Added to this is a sharp increase in operating costs that still remain unrecognized by the national authorities despite some versions that reported a change of outlook on this issue in order to help improve the accounts of both Edenor as well as the rest of the public service companies.
