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Argentine Utilities Seek to Raise Revenue, Nacion Reports

Some Argentine power companies sent letters to the government last month asking for a change in the regulatory framework which caps rates, the newspaper La Nacion reported, without saying how it obtained the information.

Electricity companies including Central Puerto SA, Endesa Costanera S.A. and Central Termica Loma de la Lata SA told Deputy Economy Minister Axel Kicillof they need higher revenue to afford salary increases for their unions, La Nacion reported.

The Argentine government has kept caps on utility rates since the country’s 2002 financial crises, La Nacion said. Companies filed for bankruptcy protection and others left the country as inflation at an estimated 25 percent caused costs to rise faster than revenue.

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