The Government of Argentina ordered this Monday to intervene the electricity distributor Edesur, controlled by the Italian group Enel, due to the prolonged supply cuts that affected thousands of users in Buenos Aires and its periphery during the last two weeks.
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“We have instructed the National Electricity Regulatory Entity (ENRE) to proceed with the 180-day intervention of the Edesur company,” announced the Argentine Economy Minister, Sergio Massa, in an appearance before the press.
The minister indicated that this intervention will have the objective of monitoring compliance with the works and compliance with the improvement in the service that the company must have, which has the concession since 1992 to distribute electricity in part of Buenos Aires and its periphery, where provides service to 2.5 million users.
In the last fifteen days, Edesur has been in the eye of the storm due to prolonged supply cuts that affected thousands of users in the midst of an intense heat wave, situations that, according to the minister, “cannot be tolerated any longer” .
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Massa pointed out that Enel’s decision announced last November to put Edesur up for sale “creates uncertainty regarding the provision of the service.”
“We want to make it clear that the new property of the shareholders is not affected, the concession contract is not affected, but the State will carry out, through intervention, the effective supervision of compliance with the contract,” Massa asserted.
Last week, the Government criminally denounced Edesur and its directors for the alleged crimes of “fraud by disrupting the agreed rights, abandonment of people and hindering public services.”
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Massa said that the Argentine Ministry of Energy will notify the stock markets of the alleged breaches by the company.
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