The Italian holding company In itwhich announced that it would sell the assets of the Edesur company in the country, expects to be able to raise around $300 million in case of selling Edesur and two thermal power plants: Waterfront and Dock Sud.
It is a small sum that could depreciate even more: the price of companies in Argentina is falling at levels not seen since 2001. Edenor, which was worth US$5 billion in 2018, was sold for US$100 million, that is, less than 5% of what it was trading 4 years ago.
A few weeks ago, the CEO of Enel, Francesco Starace, explained during a panel discussion on energy issues that was held at the Harvard Business School the reasons for leaving the country with a forceful message: “They have the most bizarre regulation in the world.” “It can’t be done like that”, he complained.
The freezing of tariffs marked this path: after the ex-minister of Economy, Martin Guzmanunsuccessfully tried to reduce subsidies to electricity rates, the new minister Sergio Massa seems to be finally getting the job done. The voted budget for 2023 includes a reduction in subsidies, which would imply an increase in bills: something that could work as an incentive for the future owner of Edesur.
Enel’s withdrawal from the country occurs in a context of conflict with the Government, which fined Edesur $1,000 million due to power outages that affected thousands of users in the BOTH, in the midst of a high heat wave that hit the country in recent days. Even from the national administration they do not rule out advancing with more measures, from intervening the company without affecting the capital, to even its expropriation.
The government spokesperson, Gabriela Cerrutti, stated in a conference that expropriation is “one possibility among several to take action”. For her part, the Secretary of Energy of the Nation, Flavia Royonexpressed that “his pulse will not tremble to terminate the concession contract with Edesur.”
