Saturday , October 1 2022

The government has imposed large fines on Edenor and Edesur for nearly $ 500 million


National Regulatory Authority for Electricity (Enrea) applied tough sanctions against Edenor and Edesur energy distributors, whose coverage area includes the city of Buenos Aires and the suburbs of Buenos Aires.

Sanction, to total of $ 460,953.5 million, corresponds to the semi-annual poll conducted by the regulator over companies to evaluate services quality, as established in public hearings.

Edesur was fined with $ 290,898,949.79while Edenor have to pay 170,054,507.31 pesos.

The regulatory body has been evaluated three elements to determine compliance with standards that distributors must meet: Quality of technical service, which takes into account the frequency and duration of power interruptions (which means more than half of the fines) Quality of technical product (voltage and disturbance level) and Quality of commercial service, which evaluates the response times for connecting new users, issuing the estimated invoice, requesting billing errors, or restoring suspended delivery due to non-payment.

To measure quality of technical service provided by both distributors, ENRE uses two international usage indicators: the average frequency of the semester user interruption and the total duration of the interruption per user per semester.

For this indicator, fine has been added for close 260 million dollars in the March-August semester between those applied to Edenor ($ 154.5 million) and Edesur ($ 105,337.5 million), although for the latter company, the quality of the commercial service was lapidary and represented a $ 178.6 million in that period.

ENRE has stated that public service concession contracts for the distribution of electricity include a sanctioning regime which applies if the concessionaire exceeds the value quality tolerance limits of the established service.

"Given that the affected users are the recipients, the sanctions imposed on the companies act as compensation, the adaptation the cost (fee) paid by users to the quality actually provided by distributors, "he added.

Therefore, in the fines, ENRE indicated thisMoney will be refunded to users victims by invoice, proportionate.

ENRE has conducted an analysis of the results of the Edenor and Edesur semi-annual review of violations "departures to established levels", corresponding to the semester March-August 2018,
after the global tariff review (RTI), in which tariff, quality, and investment conditions were set by 2021.

Where there were more and less courts

If Edenor, the average disruption frequency per user was 3.99 times in semester, and the total duration of the interruption in the semester was 14.65 hours.

As regards the affected areas, cuts were minor – In quantity and duration – in the city of Buenos Aires (communes 2, 12, 13, 14 and 15), with the exception of Commune 11 (Devoto, Villa del Parque, Santa Rita and Villa General Miter) and the party Vicente López. In both cuts the most frequent have taken place in peripheral districts of the Buenos Aires metropolitan area General Rodríguez, General Las Heras and Marcos Paz.

Regarding Edesur, the average disruption frequency per user was 4.15 times in the semester, and the total duration of the interruption in the semester was 14.41 hours.

By areas, the cuts were smaller – depending on quantity and duration – in the city of Buenos Aires (communes 1-10), while disruptions were the most frequent occurred in districts further from the city, such as San Vicente, Cañuelas and Berazategui.

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