Electricity Distribution

EDEMSA was constituted by the Government of the Province of Mendoza (one of the 24 Provinces of Argentina) in April 1998 as part of the privatization of the provincial electricity system, which at that time included generation, transmission and distribution activities. As of 1st August 1998, EDEMSA was granted the concession to distribute electricity in an area of approximately 110,000 km², covering a population of approximately 1,200,000 people. The term of the concession is 30 years, divided into 3 management periods of 10 years each. At the same time, Electricité de France (EDF) acquired a 51% controlling stake in EDEMSA, for which it paid U$S237 million. In 2005, EDF sold its stake to a group of local businessmen for an undisclosed amount. In March 2008, Andes Energía Plc (AEN) acquired the 51% controlling stake and in July 2012, this stake was spun out of AEN and into Andina. The remaining share owned by the Province of Mendoza (39%) and the employees at the time of privatization (10%).

Business:

EDEMSA provides a Public Service under the concession agreement and this takes the form of a monopoly within a defined geographic market. The business is highly regulated: the concession was granted by the Province of Mendoza, which has direct regulatory authority, but there are also many national regulatory norms which must be met as part of the National Electricity System.

For further information please see www.edemsa.com and http://www.cnv.gob.ar/InfoFinan/emisoras.asp?Lang=0&CodiSoc=452&DescriSoc=Emp%2E+Distribuidora+de+Electricidad+de+Mendoza+S%2EA%2E&Letra=E