Given the heat wave that is plaguing the country, the lack of investment and maintenance by Edenor and Edesur once again fell on users who have endured extreme temperatures without electricity for more than 6 days. Inhuman. As if that were not enough, after the blockade of the highway carried out by the residents of Lugano to make the situation visible, the response was repression.
According to the National Electricity Regulation Entity (ENRE), between Friday and Sunday there were more than 200 thousand users of Edenor and Edesur, a tragic postcard that is repeated every summer. Most of the users affected by non-compliance with the electrical service belong to Edesur.
In response, the Government announced its technical intervention, in charge of a team of audit observers in which the University of Buenos Aires (UBA) will be summoned to participate to review the value of regulatory assets, compliance with the investment regime, the timing response to users and quality in the transmission service throughout the Edesur area. It also imposed a $1 billion fine on the company, which is likely to appeal this decision in court.
The Minister of Energy, Flavia Royón, went so far as to say that they could evaluate removing the concession. Taking into account Sergio Massa’s good relationship with the sector -very close to Vila, one of the owners of Edenor- the “threat” of the minister sounds hardly credible. Since the 1990s with the privatization of public services, access to energy is determined by the profits of businessmen.
According to the latest Financial Statements submitted to the National Securities Commission (CNV) by the South Distribution Company Public Limited Company -Edesur SA- it is observed that in the first three quarters of 2022 its profit was $5,011,289 million. in those nine months earned in the wake of $18.5 million per day. Taking into account the tariffs applied by Massa, the total profit last year is expected to be even higher.
In parallel, while earnings advanced compared to the red declared in the same period of 2021 (-$27,154,962 million); the investment compared to December 2021, it barely increased by a nominal 23%, well behind inflation. This decision adopted by the company explains the recurrence of power cuts in times of high temperatures.
End the privatization scam
“There is a bakery that provides food to the hospital and today without electricity it could not do it, no one ate” denounced a neighbor from Lugano on television.
He first business day of 2023 Sergio Massa announced a refinancing agreement for the debts of the 11 distributors with Cammesa, the state wholesaler of energy. This involved a large penalty interest reduction that for Edenor and Edesur totaled $140 billion. Edesur’s debt went from $113,838 million to $66,366 million. And the debt refinanced in 96 installments at a subsidized rate was $47,225 million.
This week the Government of the Front of All confirmed the elimination of 100,000 social plans that receive the most neglected sectors, but does not hesitate to benefit multi-millionaire groups. To have a dimension, the company that is in charge of electricity distribution in the southern area of the AMBA has an electrical network of 32,500 kilometers of expansion, through which it distributes more than 20,000 GWh, which represents 20% of the energy of the country. It distributes energy to more than 2 million homes.
Edesur belongs to the Italian group ENEL, which holds 75% of its shares. This holding is dedicated to the energy business in different countries around the world. In Argentina, in addition to Edesur, it has 3 power generation plants (Enel Generación Costanera, Enel Generación El Chocón and Central Dock Sud); It has three companies dedicated to energy transport (Compañía de Transmisión del Mercosur, Transportadora de Energía and YACYLEC). It is also present in the trading activity with Enel Trading Argentina (formerly Cemsa). Is about vertical integration model of companiesThey are part of the whole chain.
For this reason, a thorough exit to the structural problem of energy has to think through all the stages. From the planning of production, consumption, transportation and distribution, among others. This nationalization of the energy system under the control of its workers and user committees, could put an end to the privatization scam. A legacy of Menemism that was not modified by the governments that continued, despite the lousy service. Guaranteeing that their access is a right, against the current rates that fall more heavily on the popular sectors. And on the way to fight for a transition of the energy matrix in harmony with the environment.