Argentina Law Lets Buenos Aires Power Firms Offset US$781m in Old Debts
Argentina's Congress has passed an energy law best known for cutting gas discounts in cold regions. Article 4 also lets Buenos Aires distributors Edenor and Edesur cancel about US$781 million owed to the wholesale power market, if they drop their claims against the state. The post Argentina Law Lets Buenos Aires Power Firms Offset US$781m in Old Debts appeared first on The Rio Times .
Argentina’s Congress has passed a law allowing two power companies, Edenor and Edesur, to cancel old debts totaling around US$781 million to the wholesale power market. The measure was included in a bill that also aimed to cut gas discounts in cold regions. The Senate approved the bill by a large margin, with only eight senators voting against.
The law, formally known as the Energy Measures Law, has to be signed by the president and published in the Official Gazette before the debts can be offset. The credit given to the companies cannot exceed their debt, so no cash flow will go to them. Instead, they must waive all legal and administrative claims against the state, provinces, and Cammesa, the company that runs Argentina’s wholesale power market and bills distributors for electricity.
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