the electricity industry in argentina structure & ownership
TRANSCRIPT
![Page 1: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/1.jpg)
The Electricity IndustryIn Argentina
Structure & ownership
![Page 2: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/2.jpg)
This presentation is confidential to the intended recipient and may not be divulged to any other parties without the explicit written permission of Utility Consultants.
![Page 3: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/3.jpg)
This slide show is for promotional purposes only. Utility Consultants accepts no liability for any action or inaction arising from its use.
![Page 4: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/4.jpg)
This presentation is copyright, and may not be reproduced in whole or in part without explicit written authority from Utility Consultants Ltd.
![Page 5: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/5.jpg)
Contents
• Contents
• Historical background
• Political background
• Industry breakup
• Generation
• Transmission
• Distribution
• Wholesale market
![Page 6: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/6.jpg)
Historical Background
• Pre-1990, industry was vertically integrated and owned by central and provincial governments - Segba, Eseba etc.
• Industry was plagued with poor service, energy shortages, low productivity and unreliable supply.
• State electrical companies became very indebted in the early 1990’s.
![Page 7: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/7.jpg)
Political Background
• Successive military governments had increased state-intervention.
• Carlos Meném became President in 1989, pledging continued state intervention.
• Policy U-turn in 1990 saw the privatisation of ENTel and Aerolineas Argentinas in 1990 with minimal industry or policy reform.
![Page 8: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/8.jpg)
Industry Breakup
• Legislation introduced in 1992 with the aim of reducing state intervention and promoting market efficiencies.
• Generation, transmission and distribution were separated and sold to the private sector.
• Nuclear plant is still state-owned, but the sale is being considered.
![Page 9: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/9.jpg)
Industry Breakup
• Transmission & distribution operate as regulated monopolies.
• Ownership is now largely private, although government still holds some minority interests.
![Page 10: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/10.jpg)
Industry Structure
• Vertically disintegrated structure.…• Eleven key regional distribution
companies that also retail energy.• Five transmission companies operating at
several different voltages.• Numerous generators.• Wholesale market company.• Regulatory body.
![Page 11: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/11.jpg)
Regulation• Overseen by the regulator, Ente Nacional
Regulador (ENRE).
• Regulatory framework defined in Decree 1398/92.
• Regulates on technical, billing, access and service levels.
• Prevents monopolistic practices (rate setting and negotiating concessions).
![Page 12: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/12.jpg)
Generation
• Installed national capacity of 19,600 MW.• Annual generation approx. 64,670 GWh.• Hydro approx. 48%.• Thermal approx. 43% (mainly gas).• Nuclear approx. 3%.• Numerous generators.• Some generation still owned by provincial
governments.
![Page 13: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/13.jpg)
Generation
• Some remote areas still using local supplies.
• Significant foreign investment in gas-fired plant.
![Page 14: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/14.jpg)
Transmission
• Three historical and two new entrant companies provide high-voltage transmission through out 90% of Argentina.
• Considerable foreign investment eg. a 1,000 MW inter-connect to Brazil owned by Companhia de Interligacao Electricia of Brazil.
![Page 15: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/15.jpg)
Transener• Compañia de Transporte de Energía en
Alta Tensión SA de 500 kV.• Owns and operates the 500 kV and 220
kV grids, including an interconnect with Uruguay.
• Original privatisation was a 65% stake, although several original participants have since withdrawn.
• Government has retained a 25% share due to lack of industry interest.
![Page 16: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/16.jpg)
Transnoa• Empressa de Transporte de Energía
Eléctrica por Distribución Troncal del Noroeste Argentino operates in north-eastern Argentina.
• Owns and operates the network linking the Salto Grande hydro in Entre Rios with Transener’s grid in the Chaco province.
![Page 17: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/17.jpg)
Transpa• Empressa de transporte por
Distribución Troncal de la Patagonia comprises 5,200 km of transmission lines.
• Owns and operates the network that was formerly part of Eseba.
• A 90% stake was acquired by Transener in 1997 against tough competition.
![Page 18: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/18.jpg)
Distrocuyo• Operates the 220 and 132 kV lines from
the Los Nihuiles and Rio Diamante hydro plants in the Mendoza province.
• A 51% stake is owned by an EdF-led consortium.
![Page 19: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/19.jpg)
Yacyreta Transmission• The Yacylec SA consortium was
awarded a 15 year concession to build and operate a 2,700 MW link from Yacyreta hydro to Chaco.
![Page 20: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/20.jpg)
Distribution
• Eleven key distribution companies.• Significant degree of privatisation, with
some minority stakes still held by government.
• Distribution activities operate with concession areas.
• Line pricing subject to incentive regulation.
• Average retail price about US$43/MWh.
![Page 21: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/21.jpg)
Edelap• Empressa Distribuidora La Plata
supplies 278,000 customers around La Plata city in Buenos Aries province.
• Annual energy sales 1,800 GWh.
• Originally sold in 1992 to Houston Industries Energy and Techint .
• AES Corp acquired a 90% stake in 1998.
• PSEG Global acquired a 30% stake from AES in 1998.
![Page 22: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/22.jpg)
Edenor• Empressa Distribuidora Norte has 2.1
million customers in the northern half of Buenos Aries city.
• A 51% stake was sold to EASA in 1992.
• Government’s remaining 19.5% stake was sold through a public offering.
• EdF and Endesa are now the largest shareholders in Edenor.
![Page 23: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/23.jpg)
• Empressa Distribuidora Sur supplies 2.1 million customers in the southern half of Buenos Aries city.
• A 51% stake was privatised in 1992, with a further 39% stake being sold in late 1995.
• Perez Companc recently bought out Entergy’s 10% stake.
• Annual revenue of US$820 million.
![Page 24: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/24.jpg)
EDEN• Empressa Distribuidora de Energia Norte
supplies 270,300 customers in the northern part of Buenos Aries province.
• Formerly owned by Eseba.
• Sold in June 1997 to AES and PSEG Corp along with EDES for US$565 million.
• Annual energy sales 3,572 GWh.
• Operates under exclusive concession for 95 years.
![Page 25: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/25.jpg)
EDES• Empressa Distribuidora de Energia Sur
supplies 128,500 customers in the southern part of Buenos Aries province.
• Sold in June 1997 to AES and PSEG Corp along with EDEN for US$565 million.
• Annual energy sales of 1,182 GWh.
• Operates under exclusive concession for 95 years.
![Page 26: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/26.jpg)
EDEA• Empressa Distribuidora de Energia
Atlantica serves 391,000 customers in the Atlantic coast region of Buenos Aries province.
• Sold to Inversora Electrica de Buenos Aires in June 1997 for US$404 million.
• Operates under exclusive concession for 95 years.
![Page 27: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/27.jpg)
ERSA• Empresa Electrica de Rio Negro serves
customers in the Rio Negro province in the west of Argentina.
• A 90% stake was sold to Sodielec and Empresas Nacional de Electricidad in August 1996 for US$97 million.
![Page 28: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/28.jpg)
EDEMSA• Empresa Distribuidora de Electricdad de
Mendoza serves 286,000 customers in the Mendoza province, adjacent to the Chilean border.
• Comprises distribution assets spun off from the integrated EMSE.
• Annual revenue about US$143 million.
• Annual energy sales of 2,000 GWh.
![Page 29: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/29.jpg)
EDEER• Empresa Distribuidora de Electricdad de
Entre Rios serves 217,000 customers in the Entre Rios province.
• Comprises distribution assets spun off from the integrated EMSE.
• Annual revenue about US$105 million.
• Annual energy sales of 1,130 GWh.
![Page 30: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/30.jpg)
Edelar• Empresa Distribuidora de Electricdad La
Roija serves 60,000 customers in the western area of the La Roija province.
• Emdersa purchased a 90% stake in Edelar in 1995 for US$13.7 million.
• GPU in turn bought 100% of Emdersa from Exxel and Union Fenosa in 1998.
![Page 31: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/31.jpg)
Edesal• Empresa Distribuidora de Electricdad de
San Luis serves customers in the San Luis province near Mendoza in central Argentina.
• Part of the holding company Emdersa (100% owned by GPU).
![Page 32: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/32.jpg)
Wholesale Market
• Compañia Administrdora del Mercado Mayorista Eléctrico S.A was established by Decree 1192/1992.
• Key objectives….• Manage dispatch operations.• Establish & manage pricing.• Administer transactions.
• Owned 80% by industry players and 20% by Ministry of the Public.
![Page 33: The Electricity Industry In Argentina Structure & ownership](https://reader035.vdocument.in/reader035/viewer/2022062422/56649f275503460f94c3fbe2/html5/thumbnails/33.jpg)
For more information….
Visit UtilityConsultantsWeb Site
Email UtilityConsultants