Latin America

Power companies sanctioned in Argentina

343763_Argentina-De Vido

Power companies in Argentina have been sanctioned by the government for failure to provide electricity to hundreds of thousands of citizens in the capital Buenos Aires and suburbs.

The government will not surrender to “(utility) companies’ pressure” that ask for a price hike, Argentina’s Federal Planning Minister Julio De Vido said on Saturday.

“The system failed where there was no investment,” De Vido said, blaming the utility companies Edenor and Edesur for “extorting (the government) to obtain a tariff hike that will not come.”

“Here is no rescue for anyone,” he warned, adding that sanctions will follow the “negligence and serious breach of the concession contract and the distribution service. The punishment involves compensation, replacement of devices that were damaged due to the power cuts and the payment of fines to be applied by the state and that could reach 17.8 million Pesos ($2.72 million) for Edesur and 7 million Pesos ($1.07 million) for Edenor.”

De Vido also reminded that the companies’ contract might be terminated, although the government of President Cristina Fernández will act with “calm and seriousness” to “guarantee the preservation of legal security.”

“Distribution problem must be addressed definitively. Generation and transportation (of electricity) have already been addressed. That problem has not to do with tariffs but with companies stepping up the pressure to increase tariffs but the government will not give in,” he noted.

People protested in some areas near Buenos Aires on Friday because power was below the normal voltage and they were compelled to turn off some of their electrical appliances.

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