Endesa's Argentine energy distribution subsidiary, Edesur, has posted a net income of E33 million for 2007, compared to a net loss of E13 million in 2006. This strong performance was underpinned by the tariff increase agreed with the Argentine government, which had been frozen since 2002.
In February 2007, and effective from November 2005, the first tariff increase negotiated with the Argentine government in Edesur’s distribution cumulative value came into effect.
Edesur noted that, over the course of 2007, respective increases of 9.96% and 9.75% in the distribution costs for the periods May 2005 to April 2006 and May 2006 to April 2007 were also implemented.
In 2007, Edesur made investments and signed contracts worth E64.5 million. As a result, the company was able to register 7% annual growth in 2007.