Enel, positive impact from resolution of pending regulatory issues in Argentina

  • Estimated impact on Enel’s consolidated EBITDA in 2019 amounts to approx. 180 million euros
  • The agreement allows the Enel Group to operate in Argentina within a steady and fully-defined framework

 

Rome, May 17th, 2019 - Enel S.p.A. (“Enel” or the “Company”) announces that its listed Chilean subsidiary Enel Américas S.A. (“Enel Américas”) informed that its subsidiary in Argentina, Empresa Distribuidora Sur S.A. (“Edesur”), signed with Argentina’s national government two agreements that enable the resolution of certain pending regulatory issues, and called an Extraordinary Shareholders’ Meeting for June 14th, 2019, to ratify the content of the agreements.

The first agreement foresees the transfer of the role of concession grantor for the public electricity distribution services carried out by Edesur from Argentina’s national government to the Province of Buenos Aires and to the Autonomous City of Buenos Aires, providing that the service will continue to be operated by Edesur under the same terms and conditions envisaged by the current contract.

The second agreement provides for the positive settlement of the negotiation with the Argentina’s authorities relating to outstanding regulatory issues, allowing the Enel Group to operate within a steady and fully-defined framework, with an estimated positive impact on 2019 EBITDA of around 180 million euros.

Specifically, under the second agreement, Argentina’s national government commits to settle, in favour of Edesur, debts originated by loans and electricity transactions as well as those stemming from the application of tariff concessions in 2017 and 2018. Under the same agreement, the government also commits to withdraw sanctions applied to Edesur. Furthermore, the latter will provide to settle accrued debts for the 2006-2016 period.

Enel Edesur ENG

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