Argentina approves debt offset deal for Edenor

The Argentine Congress approved a cross-cancellation of debts between the national government and power distribution companies Edenor and Edesur. The measure addresses regulatory imbalances after more than 20 years of tariff freezes and interventions between 2002 and 2025.

Under the approved law, the state will cancel Edenor's debt with wholesale electricity market administrator Cammesa. That obligation is regularised in payment plans of up to eight years for the equivalent in Argentine pesos of approximately 450 million dollars, while Edesur holds around 300 million dollars in similar debt.

In exchange, the utilities must drop unrecognised regulatory assets stemming from historical tariff freezes and renounce all future administrative and judicial claims against the state and Cammesa. High-level industry sources estimate Edenor's claims at up to 2,000 million dollars, though sector executives calculate the state's liability at up to 900 million dollars.

The debt forgiveness was included in Article 4 of an energy reform package that also cuts gas subsidies for 4,100,000 users and extends fiscal stability for renewable energy for 20 years. Once regulated, the government will calculate updated revenue differences for federal distributors Edenor and Edesur, as well as grid operator Transener.