This is the second time in 2007 that the government has approved an increase in tariff revenue for Edesur. At the beginning of the year, the first 38% distribution cumulative value (DCV) increase was implemented.
The company said that this implies an accumulated increase in remuneration of over 50% in 2007, increasing its annual revenues by around E70 million. The increase in DCV forms part of the legal agreement to renegotiate Edesur’s contract signed in February 2006 and covers the recognition of higher costs.
Endesa said that these increases are a milestone in the process of restructuring its subsidiary’s financial position, which will lead to a significant improvement in results until the integral tariff revision, which could herald a new tariff framework in 2008 if carried out.
With these new tariff increases, Edesur could be able to maintain its investment outlay at around E60 million a year, thereby further improving the quality of its Latin American operations.
