The Argentine Government will allocate some 500 million dollars to finance investments in the maintenance of electric power plants. These power plants are key to supporting the system during demand peaks and ensuring there is no lack of energy supply.
Through Resolution 238/2022 of the Ministry of Energy, the Government recognized a higher remuneration for electricity generators such as Pampa Energía, AES, Enel, Central Puerto and Orazul Energy with “old” thermal and hydroelectric plants (with a seniority greater than after 10 years) to finance investments in maintenance and guarantee availability of “base” energy, not intermittent.
Energy will grant a 30% retroactive increase to February in the remuneration of the energy generated in thermoelectric plants and hydroelectric dams with expired contracts before the Argentine Interconnection System (SADI).
In addition, it will add a cumulative 10% increase in June, so the adjustment is 43%, still behind inflation but higher than the 29% recognized in 2021. These are the same plants that the Government de-dollarized, in the fulfilling a campaign promise that fell by the wayside.
In order not to break the contracts and face international lawsuits, the Frente de Todos appealed to continue a policy that former Energy Secretary Gustavo Lopetegui had already initiated in 2019.
The de-dollarization and subsequent freezing of remuneration allowed the State to save subsidies but also hit the finances of the aforementioned private companies, which adjust their investment so as not to deteriorate their accounts. On the other hand, the National Electricity Regulatory Entity (ENRE) informed the Secretary of Energy and the Ministry of Economy of the situation of the public service concessionaires and requested that progress be made in defining the tariff transition period.
This was detailed by the comptroller María Soledad Manin, close to the Undersecretary of Electric Energy, Federico Basualdo, through a statement after the report on the current state of the electric power companies sent to the Minister of Economy Martín Guzmán and the Secretary of Energy Darío Martinez. She there she detailed the state of the concessionaires of public services of Transportation and Distribution of Electric Power.
The regulator assesses that the same level of investment should not affect service quality in the short term. “However, long-term investments should be envisaged,” warned the body in charge of Manin.