ARGENTINA Law and Practice Contributed by: Héctor Pozo Gowland, Esteban de Vedia, Carlos Ernesto Miná and Francisco Pozo Gowland, Pozo Gowland Abogados
1.4 Sale of Power Industry Assets General Law No 24,065 (Sections 31 and 32) and Decree 1398/92 (Section 9) include the following limita- tions for the transfer of shares of carriers and distributors: • no generator, distributor, high-demand user or company controlled by any of them, or a con- troller thereof, may be the owner or majority shareholder of a carrier or its controller; • only with the prior authorisation of ENRE may two or more carriers, or two or more distribu- tors, consolidate in the same business group or merge; • only with the prior authorisation of ENRE may a carrier or distributor buy shares of another carrier or distributor, respectively; and • the holder of a distribution concession may not own generation units. Generation Hydroelectric generators with a capacity above 500 kV that use public watercourses must enter into a concession contract with the national gov- ernment and are subject to the limitations pro- vided therein to transfer the assets. Generators that use thermal and renewable technologies are not subject to restriction to asset transfers but may not own or be majority shareholders of a Transmission and distribution concession con- tracts generally provide the same restrictions: the transfer of the majority stockholding requires ENRE’s prior approval. The approval process is ruled by ENRE’s Resolutions 548/99 and 499/05. Typically, although not expressly required by law, ENRE may require that the new shareholders comply with certain financial ratios and industry expertise background. carrier or its parent company. Transmission and Distribution
Market Influence Antitrust is governed by Law No 27,442, which sanctions conduct that may be detrimental to the general economic interest. This law estab- lishes as a restrictive practice of competition, to fix, agree or manipulate, directly or indirectly, the selling price of a good offered in the market. 1.5 Central Planning Authorities National Secretariat of Energy The National Secretariat of Energy is the author- ity overseeing the application of the Regulatory Framework and has the power to dictate the provisions that regulate the national dispatch of loads. The Secretariat has dictated the regula- tions known as Los Procedimientos (“the proce- dures”), which organise the wholesale electricity market. ENRE ENRE’s main role is to regulate and supervise the electricity sector to ensure the reliability of the electricity system and the adequacy of supply to meet the demand for electricity. The scope of ENRE’s functions and powers is set forth in Law No 24,065. CAMMESA The joint stock company, CAMMESA, which administers the wholesale electricity market has two main functions: (i) it is in charge of electricity dispatch; and (ii) it settles the operations in the wholesale electricity market, making the collec- tions and remitting to each creditor the amounts that correspond to them for the services pro- vided (generation, transmission or distribution). The shareholders of CAMMESA are the national government, and the associations of generators, transportation companies, distributors and big users.
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