Argentina To Audit Power Distributors As Rate Complaints Surge
August 07 2009 - 7:57PM
Dow Jones News
Argentina's national electricity regulator, ENRE, will audit the
country's top three power distributors to see if they have been
overbilling consumers, Planning Ministry Julio De Vido said at a
hastily arranged press conference late Friday.
De Vido said the government hasn't authorized higher rates since
October. Nevertheless, there has been a dramatic increase in the
number of consumer complaints regarding overbilling in electricity
bills, he said.
"We're going to review the distinct claims we've received to see
if the number of complaints is related to a billing problem or if
there has simply been an increase in consumption," De Vido
said.
The audits apply to Edenor (EDN); Edesur, controlled by Endesa
SA (ELE); and Edelap, controlled by AES Corp. (AES). Spokesmen for
the companies weren't immediately available for comment.
De Vido said the government will fine the distributors if they
have inappropriately raised rates. He said ENRE will conduct its
audit this weekend and could draw conclusions as early as Monday or
Tuesday, though it is unclear how the government will be able to
carefully study the matter in such a brief period of time. De Vido
said the government will cut subsidies on households that consume
more than 1,000 kilowatts per billing period.
The government has been seeking ways to cut subsidies to the
energy industry in a bid to reduce spending and meet its financial
needs in other areas.
In July 2008 the government allowed distributors to raise
residential power rates for the first time in seven years. Since
then consumers have been complaining about disproportionate
increases in their bills. Similar complaints have been made about
natural gas bills.
Argentina's residential gas and electricity rates are among the
lowest in the world. Distributors say higher rates are needed to
ensure profitability.
-By Taos Turner, Dow Jones Newswires; 5411-4103-6728;
taos.turner@dowjones.com