ARGENTINA Law and Practice Contributed by: Héctor Pozo Gowland, Esteban de Vedia, Carlos Ernesto Miná and Francisco Pozo Gowland, Pozo Gowland Abogados
2.3 Supply Mix of Electricity According to information available on the CAMMESA website, in the 2023 annual report, the supply mix of electricity in Argentina, con- sidering the total installed capacity, is as follows: • thermal – 54.4%; • renewable – 37.7%; and • nuclear – 8.2%. Considering only renewable energy, the total installed capacity is: • wind – 76%; • solar – 19%; and • other technologies – 5% 2.4 Market Concentration Limits There are no specific concentration limits regard- ing the percentage of electricity supply, but there is legislation regarding concentration limits that provides a general framework applicable to several industries. Law No 27,442 on Antitrust provides that economic concentrations with the object or effect of limiting, restricting or distort- ing competition are prohibited, as they may be detrimental to the general economic interest. On the one hand, the law controls conduct on an ex-post basis, preventing concerted prac- tices and abuses of a dominant position; and, on the other, it controls M&A transactions, ex- ante, through a system of prior notification. The prior notification system is triggered when an economic operation meets certain requirements. As established by law, the National Competition Authority is in charge of studying the impact of the operation in the relevant market and will decide if it is approved, rejected or conditioned. In any case, the National Competition Authority has not yet been constituted, and its functions are carried out by the National Commission for
the Defence of Competition ( Comisión Nacional de Defensa de la Competencia , or CNDC). If M&A transactions involve regulated activities (eg, utilities such as transmission and distribu- tion of electricity), the pertinent regulatory body, in this case, ENRE, must be consulted and must issue an opinion on the operation, on the impact on competition in the respective market, and on compliance with the regulatory framework. The response is not binding, however, and the absence of a response is taken to mean that the regulatory entity does not object to the opera- tion. Heavy penalties may be imposed on companies that do not comply with antitrust regulations. 2.5 Surveillance to Detect Anti- Competitive Behaviour See 2.4 Market Concentration Limits . Anti- competitive conduct and market surveillance, and the enforcement process are contemplated in Antitrust Law No 27,442. This establishes the legal framework for the promotion of competi- tion, the prevention of anti-competitive practic- es, and the protection of consumers. The CNDC has jurisdiction over the entire coun- try. Its powers and scope of authority include conducting investigations, compelling produc- tion of records, entry to property and search and seizure, and conducting interviews. Potential sanctions for anti-competitive behav- iour may include fines, injunctions, divestitures and other remedies to compensate harm caused by anti-competitive conduct. The specific pen- alties and sanctions are determined on a case- by-case basis, taking into account the severity of the behaviour and its impact on competition and consumers.
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