Edenor Informs Market of Government's New Tariff Adjustment Timeline
May 01 2007 - 9:30AM
PR Newswire (US)
BUENOS AIRES, Argentina, May 1 /PRNewswire-FirstCall/ -- Empresa
Distribuidora y Comercializadora Norte S.A. (NYSE: EDN; Buenos
Aires Stock Exchange: EDN) ("EDENOR" or "the Company") informs the
market that on April 30, 2007 the Argentine Secretary of Energy
published Resolution 434/2007 ("the Resolution") revising the
tariff adjustment timeline contemplated by the Adjustment Agreement
(Acta Acuerdo) between Edenor and the Argentine government, which
was ratified by Decree No. 1957 on December 28, 2006. The
Resolution provides that the transition period established by the
Adjustment Agreement would be in effect from January 6, 2002 until
the Integral Tariff Adjustment ("RTI") goes into effect. In
addition, the Resolution establishes that the new tariff structure
resulting from the RTI will take effect on February 1, 2008. In the
event that the tariff resulting from the RTI is higher than the
tariff contemplated by the Adjustment Agreement, the increase will
be made in two phases; the first adjustment will take effect
February 1, 2008 and the second will take effect 6 months later in
the proportions set forth in the Adjustment Agreement. The
Resolution also requires the Company to present an investment plan
by no later than May 1, 2007. The Company has already complied with
this requirement. Finally, the Resolution extends the obligations
and commitments regarding the suspension of claims against the
Argentine government and other matters set forth in the Adjustment
Agreement until the entry into force of the new tariff structure
resulting from the RTI, allowing the Company and its shareholders
to reassert their suspended claims if this new tariff structure
does not come into effect as described above. About Edenor Empresa
Distribuidora y Comercializadora Norte S.A. (Edenor) is the largest
electricity distribution company in Argentina in terms of number of
customers and electricity sold (both in GWh and Pesos). Through a
concession, Edenor distributes electricity exclusively to the
northwestern zone of the greater Buenos Aires metropolitan area and
the northern part of the city of Buenos Aires, which has a
population of approximately 7 million people and an area of 4,637
sq. km. In 2006, Edenor sold 16,632 GWh of energy and purchased
18,700 GWh of energy, with net sales of approximately Ps. 1.4
billion and net income of Ps. 293.1 million. For more information,
visit our website at http://www.edenor.com/. This press release may
contain forward-looking statements. These statements are statements
that are not historical facts, and are based on management's
current view and estimates of future economic circumstances,
industry conditions, Company performance and financial results. The
words "anticipates", "believes", "estimates", "expects", "plans"
and similar expressions, as they relate to the Company, are
intended to identify forward- looking statements. Such statements
reflect the current views of management and are subject to a number
of risks and uncertainties, including those identified in the
documents filed by the Company with the U.S. Securities and
Exchange Commission. There is no guarantee that the expected
events, trends or results will actually occur. The statements are
based on many assumptions and factors, including general economic
and market conditions, industry conditions, and operating factors.
Any changes in such assumptions or factors could cause actual
results to differ materially from current expectations. DATASOURCE:
Edenor CONTACT: investors: Buenos Aires, Ivana Del Rossi,
+5411-4346-5127 or (fax) +5411-4346-5303, Veronica Gysin,
+5411-4346-5231 or (fax) +5411-4346-5303, , all of Edenor; New
York, Melanie Carpenter/Maria Barona of i-advize Corporate
Communications, +1-212-406-3690 or (fax) +1-212-509-7711, Web site:
http://www.edenor.com.ar/
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