1. When was Edenor incorporated? Edenor was incorporated as an Argentine limited liability corporation (sociedad anónima) on July 21, 1992 under the name Empresa Distribuidora Norte Sociedad Anónima.  We were incorporated as part of the privatization of the Argentine state-owned electricity utility, Servicios Eléctricos del Gran Buenos Aires S.A. (SEGBA).  In anticipation of its privatization, SEGBA was divided into three electricity distribution companies, including our company, and four electricity generation companies, and on May 14, 1992, the Argentine Ministry of Economy and Public Works and Utilities approved the public sale of all of our company’s Class A shares, representing 51% of the capital stock of our company. 

2. What does Edenor do? Edenor is the exclusive distributor of electricity for the northwestern zone of the greater Buenos Aires metropolitan area and the northern portion of the City of Buenos Aires, Argentina.

3. Who are Edenor’s customers? We have a highly concentrated, urban client base characterized by high purchasing power and low delinquency in payments of electricity bills.  Our geographically concentrated and urban client base also allows us to operate more efficiently with relatively lower distribution costs.  Finally, we have a balanced distribution of clients (residential, commercial, industrial).
For more information on Edenor’s customer profile, click here.

4. Where are Edenor’s headquarters? Edenor is headquartered in Buenos Aires, Argentina.  The address is Azopardo 1025, Buenos Aires, Argentina, C1107ADQ.  Edenor has 28 commercial offices throughout its coverage area in the northern part of Buenos Aires where customers can pay their bill and order service.

5. What type of network does Edenor use to distribute electricity? The system through which Edenor supplies electricity is composed of 67 Sub-Stations of high/high voltage, high/high/medium voltage, high/medium voltage, representing 12,994 MVA of transformer capacity and 1,338 kilometers of high-voltage power lines 220 kV and 132 kV.  The distribution system of medium/low voltage is comprised of 14,064 transformers of medium/low voltage, representing 5,136 MVA of transformer capacity, 8,806 kilometers of medium-voltage power lines 33 and 13.2 kV and 23,910 kilometers of low-voltage power lines 380 V.

6. Is Edenor’s network large and modern enough to meet growing demand? We are currently working with the Argentine government and Edesur to implement two new projects for the construction of new entry points for our network in Escobar and Malaver.  These new entry points would significantly improve the quality and reliability of our network.

7. Is Edenor ISO certified? Yes.  In 2005, Edenor received ISO 9000:2000 certification.

8. Why are “tariffs” considered so important to Edenor?  Our revenues and margins are substantially dependent on the composition of our tariffs and on the tariff setting and adjustment process contemplated by our concession. We generally pass through to our customers the cost of our energy purchases and charge them a regulated distribution margin, or value-added for distribution (VAD), which is intended to cover our distribution costs (including depreciation and taxes) and provide us an adequate return on our asset base.  Also see answer to How does Edenor bill its customers?

9. How does Edenor bill its customers? We bill our customers based on their category of service.  Residential and small commercial customers are billed a fixed charge payable bimonthly and a variable charge based on each unit of energy consumed.  The price of these charges, in turn, is determined based on the bimonthly consumption registered by each customer, which is divided into subcategories for each of our residential and small commercial customers as follows:

Residential (Tariff 1-R):

• Tariff 1-R1:  bimonthly energy demand less than or equal to 300 kWh
• Tariff 1-R2:  bimonthly energy demand greater than 300 kWh
Small commercial (Tariff 1-G):
• Tariff 1-G1:  bimonthly energy demand less than or equal to 1600 kWh
• Tariff 1-G2:  bimonthly energy demand greater than 1600 kWh but less than or equal to 4000 kWh
• Tariff 1-G3:  bimonthly energy demand greater than 4000 kWh
Medium commercial customers (Tariff T2) are billed a fixed charge based on a fixed amount of capacity that is payable monthly and a variable charge based on each unit of energy consumed above that level.

Industrial customers (Tariff T3) are billed two monthly fixed charges based on capacity during peak hours and non-peak hours and three variable charges for each unit of energy consumed.

Public lighting customers are billed a monthly variable energy charge based on each unit of energy consumed.

10. Does Edenor report in Argentine or U.S. GAAP? Edenor’s figures are prepared in Argentina GAAP and certain financial data is reconciled into U.S. GAAP.

11. Who regulates Edenor’s capital markets activity? Edenor meets all regulatory requirements of the Argentine National Securities Commission (Comisión Nacional de Valores, or CNV) as well as the U.S. Securities and Exchange Commission, or SEC.