The Argentine government took temporary control of the “daughter” of the Italian Enel
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The Argentine government has decided to take temporary control of the energy company Edesur, owned by Italy’s Enel. The relevant order of the ENRE regulator was published in the “Official Bulletin of the Argentine Republic” and entered into force today, March 21.
Reportedly, the decision of the authorities is associated with regular and large-scale power outages in the capital Buenos Aires and its environs. In addition, according to the Minister of Economy of the country, Sergio Massa, the decision of the authorities was influenced by reports that the Italian owner of the company intends to sell it.
“We can no longer put up with a repetition of the situations that thousands of Argentines have gone through over the past 15 days,” the minister said. “. According to him, the authorities do not intend to interfere in the direct activities of the company, but will check its compliance with its obligations under the contract with the state.
The government will control the company’s activities for 180 days. Starting today, the mayor of Avellaneda (a suburb of Buenos Aires) and the former Minister of Territorial Development of Argentina, Jorge Ferrareci, will become the external auditor of Edesur. Every ten days he will submit reports to the authorities on the activities of the company and the fulfillment of its obligations.
Power outages in Argentina are caused by the summer heat and drought that has been going on since the end of 2022. In February, the country’s Ministry of Economy had already fined Edesur 1 billion pesos ($5.2 million) for power outages. Now, as follows from the words of the minister, to whom the newspaper refers La Nation, the company will be charged another 2.7 billion pesos in compensation to citizens and companies. Last week, in addition, a criminal case was opened on charges of leaving people in a helpless state and dishonest management of the company. Top managers of the company are prohibited from leaving the territory of Argentina.
Nothing is reported about the reaction of the Argentine company.
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