On August 21, 2025, the Ministry of Economy filed a legal action against Empresa Distribuidora y Comercializadora Norte S.A. (Edenor) and Empresa Distribuidora Sur S.A. (Edesur). This action was initiated within the framework of Resolution 590/2021. The legal challenge introduces a new layer of regulatory scrutiny for the electricity distributor.
This legal development creates additional regulatory uncertainty for Edenor, which already operates within a challenging and highly inflationary environment. The persistent lack of adequate Value-Added Distribution (VAD) adjustments, coupled with high inflation, continues to pressure the company's revenues and margins. The new legal action could further complicate Edenor's financial health and operational stability.
The ongoing political and economic instability in Argentina, including currency devaluation and capital controls, remains a significant overarching risk for Edenor. The legal action by the Ministry of Economy adds to these challenges, potentially affecting the company's ability to operate profitably and access capital in the long term. Investors will be closely monitoring the implications of this regulatory development.
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