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EDN Empresa Distribuidora y Comercial Norte

Document and Entity Information

Document and Entity Information12 Months Ended
Dec. 31, 2019shares
DisclosureOfDocumentAndEntityInformationLineItems [Line Items]
Entity Registrant NameEDENOR
Entity Central Index Key0001395213
Document Type20-F
Document Period End DateDec. 31,
2019
Amendment Flagfalse
Current Fiscal Year End Date--12-31
Is Entity a Well-known Seasoned Issuer?No
Is Entity a Voluntary Filer?No
Is Entity's Reporting Status Current?No
Entity Filer CategoryAccelerated Filer
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Interactive Data CurrentYes
Entity Incorporation State Country CodeC1
Entity Common Stock, Shares Outstanding906,455,100
Document Fiscal Period FocusFY
Document Fiscal Year Focus2019
Document Annual Reporttrue
Document Transition Reportfalse
Document Shell Company Reportfalse
Class A Common Stock
DisclosureOfDocumentAndEntityInformationLineItems [Line Items]
Entity Common Stock, Shares Outstanding462,292,111
Class B Common Stock
DisclosureOfDocumentAndEntityInformationLineItems [Line Items]
Entity Common Stock, Shares Outstanding442,210,385 [1]
Class C Common Stock
DisclosureOfDocumentAndEntityInformationLineItems [Line Items]
Entity Common Stock, Shares Outstanding1,952,604 [2]
[1]Includes 31,380,871 and 23,111,131 treasury shares as of December 31, 2019 and 2018, respectively.
[2]Relates to the Employee Stock Ownership Program Class C shares that have not been transferred.

Statement of Financial Position

Statement of Financial Position - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Non-current assets
Property, plant and equipment $ 101,298,398 $ 96,067,564
Interest in joint ventures11,152 13,599
Right-of-use asset260,937 0
Other receivables26,028 1,231,297
Total non-current assets101,596,515 97,312,460
Current assets
Inventories1,926,863 1,937,198
Other receivables289,688 369,691
Trade receivables12,460,070 11,667,923
Financial assets at fair value through profit or loss2,789,831 5,199,809
Financial assets at amortized cost0 1,858,726
Cash and cash equivalents409,642 42,453
Total current assets17,876,094 21,075,800
TOTAL ASSETS119,472,609 118,388,260
Share capital and reserve attributable to the owners of the Company
Share capital875,074 883,344
Adjustment to share capital26,509,431 26,716,709
Treasury stock31,381 23,111
Adjustment to treasury stock566,538 359,260
Additional paid-in capital369,991 369,991
Cost treasury stock(2,242,608)(1,643,458)
Legal reserve1,289,102 234,908
Voluntary reserve19,833,406 564,425
Other comprehensive loss(215,605)(210,475)
Retained earnings12,134,139 20,323,175
TOTAL EQUITY59,150,849 47,620,990
Non-current liabilities
Trade payables369,552 440,116
Other payables4,019,632 11,723,648
Borrowings8,197,429 11,059,857
Deferred revenue270,091 423,539
Salaries and social security payable240,570 250,240
Benefit plans523,918 592,165
Deferred tax liability20,054,965 12,375,882
Provisions2,062,603 1,645,569
Total non-current liabilities35,738,760 38,511,016
Current liabilities
Trade payables12,700,807 22,464,224
Other payables3,596,616 2,955,519
Borrowings1,659,236 1,656,799
Derivative financial instruments205,246 1,591
Deferred revenue5,346 8,221
Salaries and social security payable2,407,052 2,677,023
Benefit plans51,119 49,770
Income tax payable1,969,411 949,263
Tax liabilities1,774,331 1,205,626
Provisions213,836 288,218
Total current liabilities24,583,000 32,256,254
TOTAL LIABILITIES60,321,760 70,767,270
TOTAL LIABILITIES AND EQUITY $ 119,472,609 $ 118,388,260

Statement of Comprehensive Inco

Statement of Comprehensive Income/(Loss) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Profit or loss [abstract]
Revenue $ 89,943,794 $ 86,039,928 $ 60,897,330
Electric power purchases(57,041,830)(49,015,194)(32,015,346)
Subtotal32,901,964 37,024,734 28,881,984
Transmission and distribution expenses(16,146,593)(16,780,493)(14,219,211)
Gross margin16,755,371 20,244,241 14,662,773
Selling expenses(7,350,973)(7,813,882)(5,486,265)
Administrative expenses(3,837,222)(4,341,342)(3,851,179)
Other operating expense, net(1,970,402)(2,031,011)(1,695,609)
Gain from interest in joint ventures1,351 2,462 15,456
Operating profit (loss)3,598,125 6,060,468 3,645,176
Agreement on the regularization of obligations17,094,764 0 0
Financial income1,208,970 1,033,000 697,814
Financial expenses(6,762,351)(7,652,701)(3,952,282)
Other finance costs(3,523,314)(3,022,071)(259,053)
Net finance costs(9,076,695)(9,641,772)(3,513,521)
Monetary gain (RECPAM)11,191,793 13,076,389 8,465,151
Profit before taxes22,807,987 9,495,085 8,596,806
Income tax(10,673,848)(2,886,871)(784,313)
Profit for the year12,134,139 6,608,214 7,812,493
Other comprehensive income: Items that will not be reclassified to profit or loss
Results related to benefit plans(7,328)(8,670)34,166
Tax effect of actuarial loss profit on benefit plans2,198 2,600 (11,096)
Total other comprehensive results(5,130)(6,070)23,070
Comprehensive income for the year attributable to:
Owners of the parent12,129,009 6,602,144 7,835,563
Comprehensive profit for the year $ 12,129,009 $ 6,602,144 $ 7,835,563
Basic and diluted earnings profit per share:
Basic and diluted earnings profit per share $ 13.84 $ 7.42 $ 8.70

Statement of Changes in Equity

Statement of Changes in Equity - ARS ($) $ in ThousandsShare CapitalAdjustment to Share CapitalTreasury StockAdjustment to Treasury StockAdditional Paid-in CapitalCost Treasury StockLegal ReserveVoluntary ReserveOther ReserveOther Comprehensive LossRetained EarningsTotal
Beginning balance at Dec. 31, 2016 $ 897,045 $ 26,962,357 $ 9,556 $ 113,612 $ 282,328 $ 0 $ 234,908 $ 564,425 $ 50,488 $ (227,475) $ 5,995,010 $ 34,882,254
Other reserve constitution - Share-bases compensation plan20,734 20,734
Payment of Other reserve constitution - Share-bases compensation plan1,618 6,806 (1,618)(6,806)71,222 (71,222)0
Acquisition of own shares0
Profit for the year 7,812,493 7,812,493
Other comprehensive results for the year23,070 23,070
Ending balance at Dec. 31, 2017898,663 26,969,163 7,938 106,806 353,550 0 234,908 564,425 0 (204,405)13,807,503 42,738,551
Change of accounting standard - Adjustment by model of expected losses IFRS 9(92,542)(92,542)
Beginning balance898,663 26,969,163 7,938 106,806 353,550 0 234,908 564,425 0 (204,405)13,714,961 42,646,009
Other reserve constitution - Share-bases compensation plan16,453 16,453
Payment of Other reserve constitution - Share-bases compensation plan272 460 (418)(460)16,441 (16,453)(158)
Acquisition of own shares(15,591)(252,914)15,591 252,914 (1,643,458)(1,643,458)
Profit for the year 6,608,214 6,608,214
Other comprehensive results for the year(6,070)(6,070)
Ending balance at Dec. 31, 2018883,344 26,716,709 23,111 359,260 369,991 (1,643,458)234,908 564,425 0 (210,475)20,323,175 47,620,990
Ordinary and Extraordinary Shareholders' Meeting1,054,194 19,268,981 (20,323,175)0
Acquisition of own shares(8,270)(207,278)8,270 207,278 (599,150)(599,150)
Profit for the year 12,134,139 12,134,139
Other comprehensive results for the year(5,130)(5,130)
Ending balance at Dec. 31, 2019 $ 875,074 $ 26,509,431 $ 31,381 $ 566,538 $ 369,991 $ (2,242,608) $ 1,289,102 $ 19,833,406 $ 0 $ (215,605) $ 12,134,139 $ 59,150,849

Statements of Cash Flows

Statements of Cash Flows - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Cash flows from operating activities
Profit for the year $ 12,134,139 $ 6,608,214 $ 7,812,493
Adjustments to reconcile net (loss) profit to net cash flows from operating activities:
Depreciation of property, plants and equipments4,624,768 3,938,816 3,303,117
Depreciation of right-of-use assets164,116 0 0
Loss on disposals of property, plants and equipments63,592 206,752 76,615
Net accrued interest5,538,026 6,606,617 3,250,035
Exchange difference4,168,236 4,814,183 867,349
Income tax10,673,848 2,886,871 784,313
Allowance for the impairment of trade and other receivables, net of recovery1,354,401 1,503,107 602,186
Adjustment to present value of receivables76,702 503 663
Provision for contingencies1,367,232 1,113,444 833,993
Changes in fair value of financial assets(281,039)(1,147,943)(672,863)
Accrual of benefit plans262,069 172,542 260,569
Net gain from the repurchase of Corporate Notes(456,884)(6,980)0
Gain from interest in joint ventures(1,351)(2,462)(15,456)
Income from non-reimbursable customer contributions(6,584)(8,572)(6,723)
Termination of agreement on real estate asset(120,627)(770,085)0
Other financial results146,851 0 0
Other reserve constitution - Share bases compensation plan0 16,453 17,636
Agreement on the regularization of obligations(17,094,764)0 0
Monetary gain (RECPAM)(11,191,793)(13,076,389)(8,465,151)
Changes in operating assets and liabilities:
Increase in trade receivables(3,794,956)(3,277,463)(4,034,457)
Decrease in other receivables860,641 1,284,983 43,199
Increase in inventories(504,484)(1,260,722)(815,156)
Increase in deferred revenue0 135,883 0
Increase in trade payables3,775,186 2,762,506 7,514,963
Increase in salaries and social security payable899,833 867,198 484,077
Decrease in benefit plans(44,682)(85,116)(86,992)
Increase (decrease) in tax liabilities984,824 (792,917)(563,824)
(Decrease) increase in other payables(717,018)4,599,097 673,822
Decrease in provisions(98,069)(500,132)(90,623)
Payment of tax payable(2,623,889)(1,362,639)(600,876)
Net cash flows generated by operating activities10,158,324 15,225,749 11,172,909
Cash flows from investing activities
Payment of property, plants and equipments(9,369,998)(13,147,282)(12,143,380)
Net collection (payment) of financial assets1,630,679 (3,605,822)(1,558,508)
Redemption net of money market funds2,527,702 3,555,515 535,478
Mutuum charges granted to third parties144,291 0 0
Mutuum payments granted to third parties(98,997)(176,665)0
Collection of receivables from sale of subsidiaries10,274 136,131 82,455
Net cash flows used in investing activities(5,156,049)(13,238,123)(13,083,955)
Cash flows from financing activities
Payment of borrowings(1,593,024)0 0
Payment of financial lease liability(213,435)0 0
Proceeds from borrowings0 0 1,977,399
Payment of interests from borrowings(1,134,828)(1,003,605)(643,518)
Repurchase of corporate notes(1,531,033)(577,437)0
Acquisition of own shares(599,150)(1,643,458)0
Net cash flows used in financing activities(5,071,470)(3,224,511)1,333,881
Decrease in cash and cash equivalents(69,195)(1,236,885)(577,165)
Cash and cash equivalents at the beginning of year42,453 188,136 732,639
Exchange differences in cash and cash equivalents438,612 239,858 (96)
Result from exposure to inflation(2,228)851,345 32,761
Decrease in cash and cash equivalents(69,195)(1,236,886)(577,168)
Cash and cash equivalents at the end of the year409,642 42,453 188,136
Supplemental cash flows information: Non-cash activities
Agreement on the regularization of obligations17,094,764 0 0
Acquisition of advances to suppliers, property, plant and equipment through increased trade payables(549,196)(1,041,341)(900,619)
Acquisition of advances to suppliers, right-of-use assets through increased trade payables(425,054)0 0
Derecognition of property, plant and equipment through other receivables $ 0 $ 675,512 $ 0

1. General information

1. General information12 Months Ended
Dec. 31, 2019
General Information
General informationHistory and
development of the Company edenor By means of an International
Public Bidding, the PEN awarded 51% of the Company’s capital stock, represented by the Class "A" shares, to the bid
made by EASA, the parent company of edenor On September 1, 1992,
EASA took over the operations of edenor As a consequence of the
merger processes of EASA and its parent IEASA with and into CTLL, and, in turn, of the latter with and into PESA, formalized in
2018, at present, PESA is the controlling company of edenor The corporate purpose
of edenor edenor The Company’s
economic and financial situation In the last four years,
the Company recorded negative working capital. This situation was not reversed after the application from February 1, 2017 of the
new tariff arising from RTI, due mainly to the constant increase of its operating costs, necessary to maintain the level of service,
the Argentine economy’s inflationary environment, and the sustained recession since mid-2018, with the consequent impact
on the decline in revenue, the extension of collection periods and the constant increase in levels of energy theft. Despite the previously
described situation, it is worth pointing out that, in general terms, the quality of the electricity distribution service has been
improved, both in duration and in interruption frequency. In view of the continuous increase of the costs associated with the provision
of the service, as well as the need for additional investments to meet the greater seasonal demand, the Company has taken a series
of measures aimed at mitigating the negative effects of this situation on its financial structure, minimizing the impact on the
sources of employment, the execution of the investment plan, and the carrying out of the essential operation, maintenance and improvement-related
works that are necessary to maintain the provision of the public service, object of the concession, in a satisfactory manner in
terms of quality and safety. In this regard, and taking
into consideration that the Company operates in a complex economic context, the main variables have recently seen a high degree
of volatility, as evidenced, among other, by the following facts: o
1.7% year-on-year fall of GDP in the third quarter of the year; o
53.77% cumulative inflation rate between January 1, 2019 and December 31, 2019; o
Significant devaluation of the peso from the month of August, giving rise to an unexpected withdrawal of dollar-denominated deposits
from the financial system; o
Fall of the Central Bank’s reserves; o
Decrease in the reference interest rate in the last month of 2019, but still at high levels. In view of this situation,
the Federal Government decided to implement certain measures, among which the following are included: o
Setting specific time limits for the inflow and settlement of export proceeds; o
BCRA’s prior authorization for the purchase of external assets for companies; o
Prior authorization for imports of any kind of goods and services; o
30% tax on foreign currency-denominated transactions; o
Deferral of the payment of certain government debt instruments; o
Fuel price control; o
Negative real interest rate; o
Rate schedules maintenance agreement, Nota 2.b.
Additionally, on December
23, 2019, the PEN enacted Law 27,541 on Social Solidarity and Production Reactivation in the framework of the Economic Emergency
(Note 2.b), which has a direct impact on the Company’s financial solvency. Taking into account that
the realization of the measures necessary to reverse the manifested negative trend depends on the occurrence of certain events
that are not under the Company’s control, the Board of Directors has raised substantial doubt about edenor Nevertheless, these financial
statements have been prepared assuming that the Company will continue to operate as a going concern and do not include the effects
of the adjustments or reclassifications that might result from the outcome of these uncertainties.

2. Regulatory framework

2. Regulatory framework12 Months Ended
Dec. 31, 2019
Regulatory Framework
Regulatory frameworka)
Concession The term of the concession
is 95 years, which may be extended for an additional maximum period of 10 years. The term of the concession is divided into management
periods: a first period of 15 years and subsequent periods of 10 years each. At the end of each management period, the Class “A”
shares representing 51% of edenor The Company has the exclusive
right to render electric power distribution and sales services within the concession area to all the customers who are not authorized
to obtain their power supply from the MEM, thus being obliged to supply all the electric power that may be required in due time
and in accordance with the established quality levels. In addition, the Company must allow free access to its facilities to any
MEM agents whenever required, under the terms of the Concession. No specific fee must be paid by the Company under the Concession
Agreement during the term of the concession. The Company is subject
to the terms and conditions of its Concession Agreement and the provisions of the regulatory framework comprised of Federal Laws
Nos. 14,772, 15,336 and 24,065, Resolutions and regulatory and supplementary regulations issued by the authorities responsible
for this matter, with the Company being responsible for the provision of the public service of electricity distribution and sale
with a satisfactory quality level, complying for such purpose with the requirements set forth in both the aforementioned agreement
and the regulatory framework. Failure to comply with
the established guidelines will result in the application of fines, based on the economic damage suffered by the customer when
the service is provided in an unsatisfactory manner, the amounts of which will be determined in accordance with the methodology
stipulated in the above-mentioned agreement. The ENRE is the authority in charge of controlling strict compliance with the pre-established
guidelines. b)
Electricity rate situation In the last days of 2019,
the PEN enacted, in the framework of the Economic Emergency and as mentioned in Note 1, Law No. 27,541 on Social Solidarity and
Production Reactivation, pursuant to which is authorized to initiate either a renegotiation process of the tariff structure in
effect or an extraordinary review, as from the date on which the law comes into effect, and for a maximum term of up to one hundred
and eighty days, with the aim of reducing the actual tariff burden on households, shops and industries for 2020. In this context, on December
27, 2019, the ENRE instructed the Company not to apply the electricity rate schedules from January 1, 2020, resulting from the
provisions of the Electricity Rate Schedules Maintenance Agreement entered into by and between the Company and the Federal Government
on September 19, 2019, as such agreement had lost its applicability due to the electricity rate emergency provided for in the aforementioned
law, with the electricity rate schedule that had been approved by ENRE Resolution No. 104/19 dated April 30, 2019 remaining in
effect. The aforementioned Electricity
Rate Schedules Maintenance Agreement provided for the following: o
To maintain the electricity rate schedules that were in effect prior to August 1, 2019 for all electricity rate categories; o
To postpone until January 1, 2020 the application of the CPD that was to be applied as from August 1, 2019 (adjustment mechanism
set forth in ENRE Resolution No. 63/2017), relating to the January-June 2019 period, which amounted to 19.05%; o
To update the electricity rate schedules in relation to seasonal energy prices as from January 1, 2020; o
To recover the difference of the CPD and the seasonal energy prices generated on August 1, 2019-December 31, 2019 period, in seven
monthly and consecutive installments as from January 1, 2020, adjusted in accordance with the relevant CPD adjustment and the methodology
set forth in late payment procedures applied by CAMMESA, respectively; o
Commitment to maintain the quality of the service and meet the quality parameters set forth in the Concession Agreement; o
To postpone until March 1, 2020 the payment by the Company of any penalty at its original value plus the relevant adjustments applicable
at the time of payment. Additionally, and within
this framework, on October 22, 2019 SRRyME Resolution No. 38/2019 approved the seasonal scheduling for the November 2019 –
April 2020 periods and provided as well that the power reference price, the energy reference price for residential consumers and
the energy reference price for the Distribution company’s Large Users and for the other non-residential consumers, in effect
since August 2019, would remain unchanged until April 2020. Moreover, the referred
to ENRE Resolution No.104/19, approved the values of the Company’s Electricity Rate Schedule and the electricity rate values
applicable to the Company’s self-management metering system, effective from May 1, 2019, and informed the Company of the
value of the average electricity rate, under the terms of Energy Government Secretariat Resolution No. 366/2018, which modifies
the prices at which Distributors acquire energy in the MEM, and which amounts to $ 4,343/KWh. In this framework, the
provisions of Resolution No. 14/19 dated April 30, 2019 of the Electricity Market and Renewable Resources Secretariat, which, among
other issues, approve the MEM definitive winter scheduling and modify the Power Reference Prices and the Stabilized Price of Energy
(SPE) relating to the May 1-October 31, 2019 period, are taken into consideration. This Resolution provides
that the increases of the Stabilized Price of Energy relating to the May-October 2019 six-month period that had been authorized
by Resolution 366/2018 for Residential customers, are to be absorbed by the Federal Government, whereas the increases established
for non-residential customers with supplies lower than 300 kW and those relating to customers with supplies higher than 300 kW,
GUDI customers, were modified for the May-July and August-October 2019 three-month periods. With regard to the supplies
lower than 300 kW (non-residential customers), and those higher than 300 kW, GUDI Customers, the values of the Stabilized Price
of Energy were increased for the May-July 2019 and August-October 2019 three-month periods. The following resolutions
issued by the ENRE in the months of January and February complete the 2019 regulatory context: o
Resolution No. 25/19, which approved, under the terms of ENRE Resolution 366/2018, the values of the Company’s Electricity
Rate Schedule, effective from February 1, 2019, and informed of the value of the average electricity rate as from February 1, 2019,
under the terms of Energy Government Secretariat Resolution No. 366/2018, which modifies the prices at which Distributors acquire
energy in the MEM. o
Resolution No. 27/19, which approved the CPD value of February 2019 together with the stimulus factor, whose application was deferred
until March 2019. Additionally, it determined the value to be applied for the 36 remaining installments resulting from the gradual
application system established in ENRE Resolution No. 63/2017, and provided as well that the 50% of the CPD that should have been
applied in August 2019 would be recovered in 6 CPD variation-adjusted installments. With regard to the discounts
under the system of caps applicable to customers benefited from the Social Tariff that the Federal Government owed to this Distributor,
the Company recorded revenue for $ 923 million, which stated in constant values amounts to $ 1,159.2 million, relating to the December
2017-December 2018 period, as a consequence of the implementation and subsequent cancellation thereof by virtue of the Agreement
on the Regularization of Obligations described in note 2.c. As of December 31, 2019,
the Company recognized revenue from the Social Tariff for $ 3,512.7 million, which stated in constant values amounts to $ 3,993.5
million. Additionally, the Company has a receivable for $ 251.4 million for the same concept. c)
Change of Jurisdiction and Regularization of Obligations On February 28, 2019,
the Federal Government, the PBA and the CABA entered into an agreement to initiate the process of transferring the public service
of electricity distribution, duly awarded by the Federal Government to the Company under a concession, to the joint jurisdiction
of the PBA and the CABA, with the latter two jointly assuming the capacity as Grantor of the concession of the service. In the
aforementioned agreement, the PBA and the CABA agreed to set up a new bipartite agency in charge of the regulation and control
of the distribution service, and the Federal Government agreed to take the necessary steps and carry out the necessary administrative
procedures to provide a solution to the pending claims with both Distribution companies. In the framework of such
agreement, on May 9, 2019, the Federal Government, the CABA and the PBA entered into an agreement, the Agreement on the Implementation
of the Transfer of Jurisdiction, pursuant to which the CABA and the PBA jointly assume, as from the date on which the agreement
comes into effect with the relevant ratifications, the regulation and control and the capacity as grantor over the distribution
service granted to edenor The Company was notified
of and assented to the arrangement made by the Federal Government and the new Grantors of the concession in relation to the Transfer
and the Implementation Agreements, and undertook both to indemnify them against any claims and to obtain the agreement of the majority
of its shareholders. The Agreement on the Implementation of the Transfer of Jurisdiction was ratified by the Provincial Executive
Power and the City’s Legislative Power by means of Executive Order 1289/2019 (published in the Official Gazette Official Gazette With the enactment of
Law 27,541, the ENRE is granted jurisdiction over the public service of electricity distribution during the term the emergency
law is in force. Furthermore, within the
framework of the change of jurisdiction and as a condition for the transfer, on May 10, 2019, the Company and the Energy Government
Secretariat, on behalf of the Federal Government, entered into an Agreement on the Regularization of Obligations, putting an end
to the mutual pending claims originated in the 2006-2016 Transitional Tariff Period. By virtue of this Agreement,
the Company (i) waives any rights to which it may be entitled and abandons any actions against the Federal Government, including
the complaint filed by edenor In return, the Federal
Government partially recognizes the claim duly made by the Company -referred to in caption (i) of the previous paragraph -, by
fully offsetting pending obligations with the MEM for electric power purchases made during the transition period, partially cancelling
the mutuums for investments granted by CAMMESA also during that period, and cancelling penalties payable to the National Treasury. The implementation of
this agreement implied, on a one-time-only basis, the partial recognition of the claim made by the Company for an amount of $ 6,906.4
million as compensation for the Federal Government’s failure to comply with obligations for 10 years during the Transitional
Tariff Period, which stated in constant values amounts to $ 8,673.7 millon, as well as the adjustment of the liabilities recorded
at the time of the agreement, replicating the conditions applied to all the sector’s distributors, generating a profit of
$ 6,160 million, which stated in constant values amounts to $ 7,736.3 millon. Additionally, $ 306 million from the Federal Government
and $ 273 million from the Province of Buenos Aires were recognized, which stated in constant values amounts to $ 362.0 millon
and $ 322.8 million, respectively. These effects are disclosed in the “Agreement on the Regularization of Obligations”
line item of the Statement of Comprehensive Income, which stated in constant values amount to $ 17,094.8 million, but do not imply
any inflow of funds whatsoever for the Company; quite on the contrary, the Company must comply in the next 5 years with the investment
plan stipulated in the above-mentioned agreement, which will be aimed at contributing to the improvement of the reliability and/or
safety of the service as a whole, in addition to complying with the Investment Plan duly agreed upon in the tariff structure review
(RTI) approved by Resolution 63/2017, which, together with the penalties payable to users, the settlement of liabilities for mutuums
and works, and the payment of the generated income tax amount, implies an actual disbursement of funds for a total approximate
amount of $ 7,600 million, in a 5-year term. Additionally, it was agreed
that the receivable amounts in favor of the Company for the consumption of shantytowns with community meters generated from July
2017 through December 31, 2018 -exclusively with respect to the percentage undertaken by the Federal Government-, relating to the
Framework Agreement (Note 2.e.) for $ 470.8 million, and the receivable amount resulting from applying the cap to the bills of
users benefited from the Social Tariff for $ 923 million (Note 2.b), would be offset against both part of the debt the Company
held with CAMMESA for loans received for the carrying out of works, and the debts the Company held with CAMMESA for the investments
made in the Costanera – Puerto Nuevo – Malaver 220kV Interconnection works, carried out through the Trust for the Management
of Electric Power Transmission Works (FOTAE), and for the carrying out of the Tecnópolis Substation’s works. In this regard, and based
on the terms of the second clause of the aforementioned agreement, as of December 31, 2019 the Company recorded the update of the
amounts related to “penalties to be used for investments” for a total of $ 1,468 million, totaling a liability pending
application of $ 4,648 million, which was charged to finance interest cost. Moreover, the Company
Extraordinary Shareholders’ Meeting dated June 10, 2019 not only ratified the actions taken by the Board of Directors in
the negotiations and signing of the Agreement on the Implementation of the transfer of jurisdiction and the Agreement on the Regularization
of obligations, but also approved the waiver of rights, actions and claims against the Federal Government originated in the Transitional
Tariff Period, and the abandonment of the lawsuit filed in 2013 against the Federal Government. d)
Penalties The ENRE is empowered
to control the quality levels of the technical product and service, the commercial service and the compliance with public safety
regulations, as provided for in the Concession Agreement. If the Distribution Company fails to comply with the obligations assumed,
the ENRE may apply the penalties stipulated in the aforementioned Agreement. As of December 31, 2019
and 2018, the Company has recognized in its financial statements the penalties accrued, whether imposed or not yet issued by the
ENRE, relating to the control periods elapsed as of those dates, which may differ from the actual ones. Furthermore, ENRE Resolution
No. 63/17 has set out the control procedures, the service quality assessment methodologies, and the penalty system, applicable
as from February 1, 2017, for the 2017 – 2021 period. In accordance with the
provisions of Sub-Appendix XVI to the referred to Resolution, the Company is required to submit in a term of 60 calendar days the
calculation of global indicators, interruptions for which force majeure had been alleged, the calculation of individual indicators,
and will determine the related discounts, crediting the amounts thereof within 10 business days. In turn, the ENRE will examine
the information submitted by the Company, and in the event that the crediting of such discounts were not verified will impose a
fine, payable to the Federal Government, equivalent to twice the value that should have been recorded. In this regard, the ENRE
has implemented an automatic penalty mechanism in order that the discounts on account of deviations from the established limits
may be credited to customers within a term of 60 days as from the end of the controlled six-month period. The penalty system provides
that penalties are updated in accordance with the variation of Distributor’s CPD or by the energy tariff average price, as
the case may be. Subsequently, in different resolutions concerning penalties relating to the commercial service and the safety
on streets and public spaces, the Regulatory Entity provided for the application of increases and adjustments, applying for such
purpose a criterion different from the one applied by the Company. Additionally, and subsequent
to the Tariff Structure Review, the ENRE regulated and/or issued new penalty procedures, such as: ü
ENRE Resolution No. 118/18: It regulated the Compensation for extraordinary service provision interruptions. ü
ENRE Resolution No. 170/18: It regulated the Penalty System for Deviations from the Investment Plan, a procedure whereby real investments
are assessed by comparison with the annual investment plan submitted by the Company, and the investment plan carried out for the
5-year rate period is assessed as against the five-year period plan proposed in the RTI. ü
ENRE Resolution No. 198/18: New Supplementary Penalty Procedure of Technical Service Quality, which penalizes deviations from quality
parameters at feeder level. ü
ENRE Resolution No. 91/18: Through the filing of charges, the ENRE informs edenor ü
ENRE Resolution No. 5/19: Through the filing of charges, the ENRE notifies edenor Sistema
Inteligente de Direccionamiento y Atención de Usuarios (SIDyAA) The effects of
the resolutions detailed in this note were quantified by the Company and recognized as of December 31, 2019, without implying consent
to the criteria applied. Finally, and in accordance
with the provisions of the electricity rate schedule maintenance agreement (Note 2.b), it is agreed that the Company will maintain
the quality of the service and comply with the quality parameters set forth in the Concession Agreement, and that the payment of
any penalty will be postponed until March 1, 2020 and paid in 6 installments at its original value plus any adjustments that may
apply at the time of payment. e)
Framework agreement In 2019, the Company and
the Federal Government entered into different extension addenda to the new Framework Agreement, extending the term thereof until
May 31, 2019. Additionally, the above-mentioned
addenda provided for the following: -
The Federal Government’s commitment to settle the amounts of its economic contribution for the supply of electricity to shantytowns,
after deducting the energy associated with the Social Tariff; -
That the Company may assign the receivable amounts recognized by this extension to Edesur. In this regard, the relevant agreement
on the assignment of receivables was signed, whereby Edesur, in consideration for the assigned receivables, paid edenor Consequently, as of December
31, 2019 the Company recognized revenue from the sale of electricity under the Framework Agreement until December 31, 2018 for
$ 470.8 million, which stated in constant values amounts to $ 591.3 million, and for the first five months of 2019 for $ 205.5
million, which stated in constant values amount to $ 220.2, both related to the Federal Government’s participation. Furthermore, within the
framework of the transfer of jurisdiction of the public service of electricity distribution that had been provided for by Law No.
27,467, the Government of the Province of Buenos Aires enacted Law No. 15,078 on General Budget, pursuant to which it was provided
that the Province of Buenos Aires would pay as from January 1, 2019 for the low-income areas and shantytowns’ consumption
of electricity the same amount as that paid in 2018, and that any amount in excess of that would have to be borne by the Municipalities
in whose territories the particular shantytowns were located. Such consumption had to be previously approved by the regulatory
agencies or local authorities having jurisdiction in each area. In this regard, the Company has become aware that on November 27,
2019, the Municipality of General San Martín filed a petition for the granting of a provisional remedy with the Supreme Court
claiming that the section of Law No. 15,078 that refers to this topic was unconstitutional. As of December 31, 2019, the Company
did not recognize revenue for this concept. Finally, in view of the
recent measures adopted by national and provincial authorities as of the date of issuance of these financial statements, the Company
does not know which guidelines will be followed concerning the consumption of electricity by low-income areas and shantytowns related
to the periods that have not been recognized as well as future periods. f)
Restriction on the transfer of the Company’s common shares The by-laws provide that
Class “A” shareholders may transfer their shares only with the prior approval of the ENRE. The ENRE must communicate
its decision within 90 days upon submission of the request for such approval, otherwise the transfer will be deemed approved. Furthermore, Caja de Valores
S.A. (the Public Register Office), which keeps the Share Register of the shares, is entitled (as stated in the by-laws) to reject
such entries which, at its criterion, do not comply with the rules for the transfer of common shares included in (i) the Business
Organizations Law, (ii) the Concession Agreement and (iii) the By-laws. In addition, the Class
“A” shares will be pledged during the entire term of the concession as collateral to secure the performance of the
obligations assumed under the Concession Agreement. In connection with the
issuance of Corporate Notes, during the term thereof, PESA is required to be the beneficial owner and owner of record of not less
than 51% of the Company’s issued, voting and outstanding shares.

3. Basis of preparation

3. Basis of preparation12 Months Ended
Dec. 31, 2019
Basis Of Preparation
Basis of preparationThe financial statements
for the year ended December 31, 2019 have been prepared in accordance with IFRS issued by the IASB and IFRIC interpretations, incorporated
by the CNV. These financial statements
were approved for issue by the Company’s Board of Directors on March 5, 2020. Comparative information
The balances as of December
31, 2018, disclosed in these financial statements for comparative purposes, arise as a result of the restatement of the financial
statements as of those dates to reflect the effects of inflation as of December 31, 2019. This, as a consequence of the restatement
of the financial information described hereunder. Restatement of financial
information The financial statements
as of December 31, 2019, including the prior year’s figures, have been restated to reflect the changes in the general purchasing
power of the Company’s functional currency (the Argentine peso), in conformity with the provisions of both IAS 29 “Financial
reporting in hyperinflationary economies” and General Resolution No. 777/18 of the National Securities Commission. As a result
thereof, the financial statements are stated in terms of the measuring unit current at the end of the reporting period. According to IAS 29, the
restatement of financial statements is necessary when the functional currency of an entity is that of a hyperinflationary economy.
To define a state of hyperinflation, IAS 29 provides a series of guidelines, including but not limited to the following, which
consist of (i) analyzing the behavior of population, prices, interest rates and wages faced with the development of price indexes
and the loss of the currency’s purchasing power, and (ii) as a quantitative feature, which, in practice, is the mostly considered
condition, verifying whether the cumulative inflation rate over three years approaches or exceeds 100%. In 2018 the Argentine
economy began to be considered hyperinflationary due to the quantitative factors described in the preceding paragraph, therefore,
according to IAS 29, the Argentine economy should be regarded as highly inflationary as from July 1, 2018. The standard states
that the adjustment will be resumed from the date on which it was last made, February 2003. Moreover, on July 24, 2018, the FACPCE
issued a communication confirming that which has been previously mentioned. Additionally, it should be taken into account that
on December 4, 2018 the Official Gazette In order to not only assess
the aforementioned quantitative condition but also restate the financial statements, the CNV has stated that the series of indexes
to be used for the application of IAS 29 is that determined by the FACPCE. That series of indexes combines the IPC published by
the INDEC from January 2017 (base month: December 2016) with the IPIM published by the INDEC through that date, computing for the
months of November and December 2015 -in respect of which there is no available information from the INDEC on the development of
the IPIM-, the variation recorded in the IPC of the City of Buenos Aires. Taking into consideration
the above-mentioned index, in the fiscal years ended December 31, 2019, 2018 and 2017, the inflation rate amounted to 53.77%, 47.66%
and 24.79%, respectively. The effects of the application
of IAS 29 are summarized below: Restatement of the
statement of financial position (i)
Monetary items (those with a fixed nominal value in local currency) are not restated inasmuch as they are already expressed in
terms of the measuring unit current at the closing date of the reporting period. (ii)
Non-monetary items carried at historical cost or at the current value of a date prior to the end of the reporting period are restated
using coefficients that reflect the variation recorded in the general level of prices from the date of acquisition or revaluation
to the closing date of the reporting period. Depreciation charges of property, plant and equipment and amortization charges of
intangible assets recognized in profit or loss for the period, as well as any other consumption of non-monetary assets will be
determined on the basis of the new restated amounts. (iii)
The restatement of non-monetary assets in terms of the measuring unit current at the end of the reporting period without an equivalent
adjustment for tax purposes, gives rise to a taxable temporary difference and to the recognition of a deferred tax liability, whose
contra-account is recognized. Restatement of the
statement of profit or loss and other comprehensive income (i)
Income and expenses are restated from the date when they were recorded, except for those profit or loss items that reflect or include
in their determination the consumption of assets carried at the purchasing power of the currency as of a date prior to the recording
of the consumption, which are restated based on the date when the asset to which the item is related originated (for example, depreciation,
impairment and other consumptions of assets valued at historical cost). (ii)
The net result from the maintenance of monetary assets and liabilities is presented in a line item separately from the profit or
loss for the year called RECPAM. Restatement of the
statement of changes in equity (i)
The components of equity, except for reserved earnings and unappropriated retained earnings, have been restated from the dates
on which they were contributed, or on which they otherwise arose. (ii)
The restated unappropriated retained earnings were determined by the difference between net assets restated at the date of transition
and the other components of opening equity expressed as indicated in the preceding headings. (iii)
After the restatement at the date of transition indicated in (i) above, all components of equity are restated by applying the general
price index from the beginning of the period, and each variation of those components is restated from the date of contribution
or the date on which it otherwise arose. Restatement of the
statement of cash flows IAS 29 requires all the
items of this statement to be restated in terms of the measuring unit current at the closing date of the reporting period. The monetary gain or loss
generated by cash and cash equivalents is presented in the statement of cash flows separately from cash flows from operating, investing
and financing activities, as a specific item of the reconciliation between cash and cash equivalents at the beginning and end of
the period.

4. Accounting policies

4. Accounting policies12 Months Ended
Dec. 31, 2019
Accounting Policies
Accounting policiesThe main accounting policies
used in the preparation of these financial statements are detailed below. Note
4.1 | New accounting standards, amendments and interpretations
issued by the IASB, effective as of December 31, 2019 and adopted by the Company - IFRS 16 “Leases"
(published in January 2016). - IFRS 9 “Financial
instruments” (amended in October 2017). - IFRIC 23 “Uncertainty
over Income Tax treatments” (issued in June 2017). - IAS 28 “Investments
in associates and joint ventures” (amended in October 2017). - IAS 19 “Employee
benefits” (amended in February 2018). - Annual improvements
to the IFRS – 2015-2017 Cycle (issued in December 2017) Detailed below, Note 4.1.1.,
are the main issues related to the initial application of IFRS 16. The application of the other standards, amendments or interpretations
generated no impact on the Company’s results of operations or its financial position, nor did it affect the accounting policies
applicable as from January 1, 2019. Note
4.1.1 | Impacts of adoption - IFRS 16 “Leases”:
On January 13, 2016, the IASB published IFRS 16, which replaces the current guidance in IAS 17. The Company has elected to apply
IFRS 16 retrospectively using the simplified approach, in relation to the lease contracts identified as such under IAS 17, recognizing
the cumulative effect of the application as an adjustment to the opening balance of retained earnings as from January 1, 2019,
without restating the comparative information. Until December 31, 2018,
only contracts classified as financial leases under IAS 17 were capitalized by the Company, that is, contracts where the Company
had substantially all of the risks and rewards of ownership of the leased asset. At the financial lease´s inception, the Company
recorded an asset and a liability for the same value, corresponding to the leased property’s fair value, or, if lower, the
present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, were included in other
liabilities. Each lease payment was allocated between the liability and the finance cost. The finance cost was charged to profit
or loss over the lease period so as to produce a constant periodic interest rate on the remaining liability balance for each period.
Property, plant and equipment acquired under financial leases were depreciated over the asset’s useful life or, if lower,
over the lease term. Leases in which a significant portion of the risks and rewards of ownership were not transferred to the Company
were classified as operating leases. Payments made under operating leases (net of any incentive received from the lessor) were
charged to profit or loss on a straight-line basis over the lease period. The rest of the identified
lease commitments correspond to non-significant contracts ending within 12 months of the date of initial application, which continue
to be recognized by the Company on a straight-line basis. As of the adoption date,
the Company has maintained the recorded book value for right-of-use assets and lease liabilities which were classified as finance
leases under IAS 17. Accounting
standards, amendments and interpretations effective as from January 1, 2020 - IFRS 3 “Business
combinations”, amended in October 2018. It clarifies the definition of a business in order to facilitate its identification
in the framework of a business combination as opposed to an acquisition of a group of assets. It is mandatorily effective for annual
periods beginning on or after January 1, 2020. - IAS 1 “Presentation
of financial statements” and IAS 8 “Accounting policies” (amended in October 2018). The amendment clarifies the
definition of “material” for ease of understanding. It is mandatorily effective for annual periods beginning on or
after January 1, 2020. - IFRS 17 “Insurance
Contracts”, published in May 2017. It replaces IFRS 4 - an interim standard issued in 2004 that allowed entities to account
for insurance contracts using their local accounting requirements, resulting in multiple application approaches. IFRS 17 establishes
the principles for the recognition, measurement, presentation, and disclosure of insurance contracts, and applies to annual periods
beginning on or after January 1, 2021, with early adoption permitted if entities also apply IFRS 9 and IFRS 15. The Company is currently
analyzing the impact of these new standards and amendments; nevertheless, it estimates that the application thereof will have no
impact on the Company’s results of operations or its financial position. Note
4.2 | Property, plant and equipment Additions have been valued
at acquisition cost restated to reflect the effects of inflation, net of the related accumulated depreciation. Depreciation has
been calculated by applying the straight-line method over the remaining useful life of the assets, which was determined on the
basis of engineering studies. Subsequent costs (major
maintenance and reconstruction costs) are either included in the value of the assets or recognized as a separate asset, only if
it is probable that the future benefits associated with the assets will flow to the Company, being it possible as well that the
costs of the assets may be measured reliably and the investment will improve the condition of the asset beyond its original state.
The other maintenance and repair expenses are recognized in profit or loss in the year in which they are incurred. In accordance with the
Concession Agreement, the Company may not pledge the assets used in the provision of the public service nor grant any other security
interest thereon in favor of third parties, without prejudice to the Company’s right to freely dispose of those assets which
in the future may become inadequate or unnecessary for such purpose. This prohibition does not apply in the case of security interests
granted over an asset at the time of its acquisition and/or construction as collateral for payment of the purchase and/or installation
price. The residual value and
the remaining useful lives of the assets are reviewed and adjusted, if appropriate, at the end of each fiscal year (reporting period). Land is not depreciated. Facilities in service:
between 30 and 50 years Furniture, tools and equipment:
between 5 and 20 years Construction in process
is valued based on the degree of completion and is recorded at cost restated to reflect the effects of inflation less any impairment
loss, if applicable. Cost includes expenses attributable to the construction, when they are part of the cost incurred for the purposes
of acquisition, construction or production of property, plant and equipment that require considerable time until they are in condition
to be used. These assets begin to be depreciated when they are in economic condition to be used. Gains and losses on the
sale of property, plant and equipment are calculated by comparing the price collected with the carrying amount of the asset, and
are recognized within Other operating expense or Other operating income in the Statement of Comprehensive Income. The Company considers
three alternative probability-weighted scenarios and analyzes the recoverability of its long-lived assets as described in Critical
accounting estimates and judgments (Note 6.c). The valuation of property,
plant and equipment, taken as a whole, does not exceed its recoverable value, which is measured as the higher of value in use and
fair value less costs to sell at the end of the year (Note 6.c). Note
4.3 | Interests in joint ventures The main conceptual definitions
are as follow:
i. A joint arrangement takes place among two or more parties when they have joint control:
joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control.
ii. A joint venture is a joint arrangement whereby the parties that have joint control
of the arrangement have rights to the net assets of the arrangement. Such parties are called joint venturers.
iii. A joint operation is a joint arrangement whereby the parties that have joint control
of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. These parties are
called joint operators. The Company accounts for
its investment in joint ventures in accordance with the equity method. Under this method, the interest is initially recognized
at cost and subsequently adjusted by recognizing the Company’s share in the profit or loss obtained by the joint venture,
after acquisition date. The Company recognizes in profit or loss its share of the joint venture’s profit or loss and in other
comprehensive income its share of the joint venture’s other comprehensive income. When the Company carries
out transactions in the joint ventures, the unrealized gains and losses are eliminated in accordance with the percentage interest
held by the Company in the jointly controlled entity. The joint ventures’
accounting policies have been modified and adapted, if applicable, to ensure consistency with the policies adopted by the Company. Furthermore, taking into
account that the interests in joint ventures are not regarded as significant balances, the disclosures required under IFRS 12 have
not been made. Note
4.4 | Revenue recognition a.
Revenue from sales Revenue is measured at
the fair value of the consideration collected or to be collected, taking into account the estimated amount of any discount, thus
determining the net amounts. Revenue from the electricity
supplied by the Company to low-income areas and shantytowns is recognized to the extent that a renewal of the Framework Agreement
is formalized for the period in which the service was rendered. At the date of issuance of these financial statements, the Company
is managing the extensions to the Framework Agreement with the National and Provincial States, as the case may be. (Note
2.e). Revenue from operations
is recognized on an accrual basis and derives mainly from electricity distribution. Such revenue includes electricity supplied,
whether billed or unbilled, at the end of each year, which has been valued on the basis of applicable tariffs. The Company recognizes
other revenues from contracts with customers in relation to connection and reconnection services, rights of use on poles and transport
of energy to other distribution companies on a monthly basis as services are rendered based on the price established in each contract.
Revenues are not adjusted for the effect of financing components as sales’ payments are not deferred over time, which is
consistent with market practice. The aforementioned revenue
from operations was recognized when all of the following conditions were met: 1.
the entity transferred to the buyer the significant risks and rewards; 2.
the amount of revenue was measured reliably; 3.
it is probable that the economic benefits associated with the transaction will flow to the entity; 4.
the costs incurred or to be incurred, in respect of the transaction, were measured reliably. b.
Interest income Interest income is recognized
by applying the effective interest rate method. Interest income is recorded in the accounting on a time basis by reference to the
principal amount outstanding and the applicable effective rate. Interest income is recognized
when it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of the transaction
can be measured reliably. Note
4.5 | Effects of the changes in foreign currency exchange rates a.
Functional and presentation currency The information included
in the financial statements is measured using the Company’s functional currency, which is the currency of the main economic
environment in which the entity operates. The financial statements are measured in pesos (legal currency in Argentina), restated
to reflect the effects of inflation as indicated in Note 3, which is also the presentation currency. b.
Transactions and balances Foreign currency denominated
transactions and balances are translated into the functional and presentation currency using the rates of exchange prevailing at
the date of the transactions or revaluation, respectively. The gains and losses generated by foreign currency exchange differences
resulting from each transaction and from the translation of monetary items valued in foreign currency at the end of the year are
recognized in the Statement of Comprehensive Income. The foreign currency exchange
rates used are: the bid price for monetary assets, the offer price for monetary liabilities, and the specific exchange rate for
foreign currency denominated transactions. Note
4.6 | Trade and other receivables
a. Trade receivables The receivables arising
from services billed to customers but not collected as well as those arising from services rendered but unbilled at the closing
date of each year are recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. The receivables from electricity
supplied to low-income areas and shantytowns are recognized, also in line with revenue, when the Framework Agreement has been renewed
for the period in which the service was provided. b.
Other receivables The financial assets included
in other receivables are initially recognized at fair value (generally the original billing/settlement amount) and subsequently
measured at amortized cost, using the effective interest rate method, and when significant, adjusted by the time value of money.
The Company records impairment allowances when there is objective evidence that the Company will not be able to collect all the
amounts owed to it in accordance with the original terms of the receivables. The rest of other receivables
are initially recognized at the amount paid. Note
4.7 | Inventories Inventories are valued
at the lower of acquisition cost restated to reflect the effects of inflation and net realizable value. They are valued based
on the purchase price, import duties (if applicable), and other taxes (that are not subsequently recovered by tax authorities),
and other costs directly attributable to the acquisition of those assets. Cost is determined by
applying the weighted average price (WAP) method. The Company has classified
inventories into current and non-current depending on whether they will be used for maintenance or capital expenditures and on
the period in which they are expected to be used. The non-current portion of inventories is disclosed in the “Property, plant
and equipment” account. The valuation of inventories,
taken as a whole, does not exceed their recoverable value at the end of each year. Note 4.8 |
Financial assets Note
4.8.1 | Classification The Company classifies
financial assets into the following categories: those measured at amortized cost and those subsequently measured at fair value.
This classification depends on whether the financial asset is an investment in a debt or an equity instrument. In order for a financial
asset to be measured at amortized cost, the two conditions described in the following paragraph must be met. All other financial
assets are measured at fair value. IFRS 9 requires that all investments in equity instruments be measured at fair value. a.
Financial assets at amortized cost Financial assets are measured
at amortized cost if the following conditions are met:
i. the objective of the Company’s business model is to hold the assets to collect
the contractual cash flows; and
ii. the contractual terms give rise, on specified dates, to cash flows that are solely
payments of principal and interest on principal. b.
Financial assets at fair value If any of the above-detailed
conditions is not met, financial assets are measured at fair value through profit or loss. All investments in equity
instruments are measured at fair value. For those investments that are not held for trading, the Company may irrevocably elect
at the time of their initial recognition to present the changes in the fair value in other comprehensive income. The Company’s
decision was to recognize the changes in fair value in profit or loss. Note
4.8.2 | Recognition and measurement The regular way purchase
or sale of financial assets is recognized on the trade date, i.e. the date on which the Company agrees to acquire or sell the asset.
Financial assets are derecognized when the rights to receive the cash flows from the investments have expired or been transferred
and the Company has transferred substantially all the risks and rewards of the ownership of the assets. Financial assets are initially
recognized at fair value plus, in the case of financial assets not measured at fair value through profit or loss, transaction costs
that are directly attributable to the acquisition thereof. The gains or losses generated
by investments in debt instruments that are subsequently measured at fair value and are not part of a hedging transaction are recognized
in profit or loss. Those generated by investments in debt instruments that are subsequently measured at amortized cost and are
not part of a hedging transaction are recognized in profit or loss when the financial asset is derecognized or impaired and by
means of the amortization process using the effective interest rate method. The Company subsequently
measures all the investments in equity instruments at fair value. When it elects to present the changes in fair value in other
comprehensive income, such changes cannot be reclassified to profit or loss. Dividends arising from these investments are recognized
in profit or loss to the extent that they represent a return on the investment. The Company reclassifies
financial assets if and only if its business model to manage financial assets is changed. The expected losses, in
accordance with calculated coefficients, are detailed in Note 6.a). Note
4.8.3 | Impairment of financial assets At the end of each annual
reporting period, the Company assesses whether there is objective evidence that the value of a financial asset or group of financial
assets measured at amortized cost is impaired. The value of a financial asset or group of financial assets is impaired, and impairment
losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the
initial recognition of the asset (a “loss event”), and that loss event (or events) has an impact on the estimated future
cash flows of the financial asset or group of financial assets that can be reliably measured. Impairment tests may include
evidence that the debtors or group of debtors are undergoing significant financial difficulties, have defaulted on interest or
principal payments or made them after they had come due, the probability that they will enter bankruptcy or other financial reorganization,
and when observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in payment
terms or in the economic conditions that correlate with defaults. In the case of financial
assets measured at amortized cost, the amount of the impairment loss is measured as the difference between the asset’s carrying
amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted
at the financial asset’s original effective interest rate. The asset’s carrying amount is reduced and the amount of
the impairment loss is recognized in the Statement of Income. While cash, cash equivalents
and financial assets measured at amortized cost are also subject to the impairment requirements of IFRS 9, the identified impairment
loss is immaterial. Note
4.8.4 | Offsetting of financial instruments Financial assets and liabilities
are offset, and the net amount reported in the Statement of Financial Position, when there is a legally enforceable right to offset
the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. Note
4.9 | Derivative financial instruments
Derivative financial instruments
are initially recognized at fair value on the date on which the relevant contract is signed. Subsequently to the initial recognition,
they are remeasured at their fair value. The method for recognizing the resulting loss or gain depends on whether the derivative
has been designated as a hedging instrument and, if that is the case, on the nature of the item being hedged. As of December 31,
2019 and 2018, the economic impact of these transactions is recorded in the Other finance costs account of the Statement of Comprehensive
Income. As of December 31, 2019,
the economic impact of the transactions carried out in that fiscal year resulted in a loss of $ 202.1 million, which is recorded
in the Other finance costs account of the Statement of Comprehensive Income. In fiscal year 2018, the
Company did not enter into futures contracts to buy US dollars. Note
4.10 | Cash and cash equivalents Cash and cash equivalents
include cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities
of three months or less from their acquisition date, with significant low risk of change in value.
i. Cash and banks in local currency: at nominal value.
ii. Cash and banks in foreign currency: at the exchange rates in effect at the end of
the year.
iii. Money market funds, which have been valued at the prevailing market price at the
end of the year. Those that do not qualify as cash equivalents are disclosed in the Financial assets at fair value through profit
or loss account. Note
4.11 | Equity Changes in this account
have been accounted for in accordance with the relevant legal or statutory regulations and the decisions adopted by the shareholders’
meetings. a.
Share capital Share capital represents
issued capital, which is comprised of the contributions committed and/or made by the shareholders, represented by shares, including
outstanding shares at nominal value, restated to reflect the effects of inflation as indicated in Note 3. b.
Treasury stock The Treasury stock account
represents the nominal value of the Company’s own shares acquired by the Company, restated to reflect the effects of inflation
as indicated in Note 3. c.
Other comprehensive income Represents recognition,
at the end of the year, of the actuarial losses associated with the Company’s employee benefit plans, restated to reflect
the effects of inflation as indicated in Note 3. d.
Retained earnings Retained earnings are
comprised of profits or accumulated losses with no specific appropriation. When positive, they may be distributed, if so decided
by the Shareholders’ Meeting, to the extent that they are not subject to legal restrictions. If applicable, Retained earnings
are comprised of amounts transferred from other comprehensive income and prior year adjustments due to the application of accounting
standards, restated to reflect the effects of inflation as indicated in Note 3. CNV General Resolution
No. 593/11 provided that Shareholders in the Meetings at which they should decide upon the approval of financial statements in
which the Retained earnings account has a positive balance, must adopt an express resolution as to the allocation of such balance,
whether to dividend distribution, capitalization, setting up of reserves or a combination of these. The Company Shareholders’
Meetings have complied with the above-mentioned requirement. Note
4.12 | Trade and other payables
a. Trade payables Trade payables are payment
obligations with suppliers for the purchase of goods and services in the ordinary course of business. Trade payables are classified
as current liabilities if payments fall due within one year or in a shorter period of time. Otherwise, they are classified as non-current
liabilities. Trade payables are initially
recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. b.
Customer deposits Customer deposits are
initially recognized at the amount received and subsequently measured at amortized cost using the effective interest rate method. In accordance with the
Concession Agreement, the Company is allowed to receive customer deposits in the following cases:
i. When the power supply is requested and the customer is unable to provide evidence
of his legal ownership of the premises;
ii. When service has been suspended more than once in one-year period;
iii. When the power supply is reconnected and the Company is able to verify the illegal
use of the service (fraud).
iv. When the customer is undergoing liquidated bankruptcy or reorganization proceedings. The Company has decided
not to request customer deposits from residential tariff customers. Customer deposits may
be paid either in cash or through the customer’s bill and accrue monthly interest at a specific rate of BNA for each customer
category. When the conditions for
which the Company is allowed to receive customer deposits no longer exist, the customer’s account is credited for the principal
amount plus any interest accrued thereon, after deducting, if appropriate, any amounts receivable which the Company has with the
customer.
b. Customer contributions Refundable: c.
Other payables The financial liabilities
recorded in Other Payables, including the loans for consumption (mutuums) with CAMMESA, the Payment agreement with the ENRE, and
the advances for the execution of works, are initially recognized at fair value and subsequently measured at amortized cost. The recorded liabilities
for penalties accrued, whether imposed or not yet issued by the ENRE (Note 2.d), and other provisions are the best estimate of
the settlement value of the present obligation in the framework of IAS 37 provisions at the date of these financial statements. The balances of ENRE Penalties
and Discounts are updated in accordance with the regulatory framework applicable thereto and on the basis of the Company’s
estimate of the outcome of the renegotiation process described in Note 2.d. Note
4.13 | Borrowings Borrowings are initially
recognized at fair value, net of direct costs incurred in the transaction. Subsequently, they are measured at amortized cost; any
difference between the funds obtained (net of direct costs incurred in the transaction) and the amount to be paid at maturity is
recognized in profit or loss during the term of the borrowings using the effective interest rate method. Note
4.14 | Deferred revenue Non-refundable customer
contributions ·
customer connection to the network: revenue is accrued until such connection is completed; ·
continuous provision of the electric power supply service: throughout the shorter of the useful life of the asset and the term
for the provision of the service. Note
4.15 | Employee benefits ·
Benefit plans The Company operates various
benefit plans. Usually, benefit plans establish the amount of the benefit the employee will receive at the time of retirement,
generally based on one or more factors such as age, years of service and salary. The liability recognized
in the Statement of Financial Position in respect of benefit plans is the present value of the benefit plan obligation at the closing
date of the year, together with the adjustments for past service costs and actuarial gains or losses. The benefit plan obligation
is calculated annually by independent actuaries in accordance with the projected unit credit method. The present value of the benefit
plan obligation is determined by discounting the estimated future cash outflows using actuarial assumptions about demographic and
financial variables that affect the determination of the amount of such benefits. The benefit plans are not funded. The group’s accounting
policy for benefit plans is as follow: a.
b.
·
The Company’s Share-based Compensation Plan The Company has share-based
compensation plans under which it receives services from some employees in exchange for the Company’s shares. The fair value
of the employee services received is recognized as an operating expense in the “Salaries and social security taxes”
line item. The total amount of the referred to expense is determined by reference to the fair value of the shares granted. When the employees provide
the services before the shares are granted, the fair value at the grant date is estimated in order to recognize the respective
result. Note 4.16 | Income
tax The income tax is recognized
in profit or loss, other comprehensive income or in equity depending on the items from which it originates. The Company determines
the income tax payable by applying the current 30% rate on the estimated taxable profit. Additionally, the deferred
tax is recognized, in accordance with the liability method, on the temporary differences arising between the tax base of assets
and liabilities and their carrying amounts in the Statement of Financial Position. However, no deferred tax liability is recognized
if such difference arises from the initial recognition of goodwill, or from the initial recognition of an asset or liability other
than in a business combination, which at the time of the transaction affected neither the accounting nor the taxable profit. The deferred tax is determined
using the tax rate that is in effect at the date of the financial statements and is expected to apply when the deferred tax assets
are realized or the deferred tax liabilities are settled. Deferred tax assets and
liabilities are offset if the Company has a legally enforceable right to offset recognized amounts and when deferred tax assets
and liabilities relate to income tax levied by the same tax authority on the same taxable entity. Deferred tax assets and liabilities
are stated at their undiscounted value. Moreover, Law No. 27,430
provides for the application of the tax inflation adjustment set forth in Title VI of the Income Tax Law for the first, second
and third fiscal year as from its effective date (in 2018), if the IPC cumulative variation, calculated from the beginning to the
end of each year, exceeds fifty-five percent (55%), thirty percent (30%) and fifteen percent (15%) for fiscal years 2018, 2019
and 2020, respectively. Although as of December 31, 2018, the IPC cumulative variation did not exceed the 55% threshold for the
application of the tax inflation adjustment in that first fiscal year, as of December 31, 2019, the IPC cumulative variation for
the 12 months of the year amounted to 53.77%, which exceeds the 30% threshold fixed for the second transition year of the tax inflation
adjustment, and, therefore, the Company has applied the tax inflation adjustment in the calculation of the current and deferred
income tax provision. Note
4.17 | Leases Up until the previous
year, the leases of property, plant and equipment were classified as operating or finance leases in accordance with IAS 17. Payments
made on account of operating leases (net of any incentive received from the lessor) were charged to profit or loss on a straight-line
basis over the lease term. As from the application
of IFRS 16, a right-of-use asset and a lease liability are recognized for lease contracts from the date on which the leased asset
is available for use, at the present value of the payments to be made over the term of the contract, using the discount rate implicit
in the lease contract, if it can be determined, or the Company’s incremental borrowing rate. Subsequent to their initial
measurement, leases will be measured at cost less accumulated depreciation, impairment losses, and any adjustment resulting from
a new measurement of the lease liability. Note
4.18 | Provisions and contingencies Provisions have been recognized
in those cases in which the Company is faced with a present obligation, whether legal or constructive, that has arisen as a result
of a past event, whose settlement is expected to result in an outflow of resources, and the amount thereof can be estimated reliably. The amount recognized
as provisions is the best estimate of the expenditure required to settle the present obligation, at the end of the reporting year,
taking into account the corresponding risks and uncertainties. When a provision is measured using the estimated cash flow to settle
the present obligation, the carrying amount represents the present value of such cash flow. This present value is obtained by applying
a pre-tax discount rate that reflects market conditions, the time value of money and the specific risks of the obligation. The provisions included
in liabilities have been recorded to face contingent situations that could result in future payment

5. Financial risk management

5. Financial risk management12 Months Ended
Dec. 31, 2019
Financial Risk Management
Financial risk managementNote
5.1 | Financial risk factors
The Company’s activities
and the market in which it operates expose the Company to a series of financial risks: market risk (including currency risk, cash
flows interest rate risk, fair value interest rate risk and price risk), credit risk and liquidity risk. The management of the
financial risk is part of the Company’s overall policies, which focus on the unpredictability of the financial markets and
seek to minimize potential adverse effects on its financial performance. Financial risks are the risks derived from the financial
instruments to which the Company is exposed during or at the end of each year. The Company uses derivative instruments to hedge
exposure to certain risks whenever it deems appropriate in accordance with its internal risk management policy. Risk management is controlled
by the Finance and Control Department, which identifies, evaluates and hedges financial risks. Risk management policies and systems
are periodically reviewed so that they can reflect the changes in the market’s conditions and the Company’s activities. This section includes
a description of the main risks and uncertainties that could have a material adverse effect on the Company’s strategy, performance,
results of operations and financial position. a.
Market risks
i. Currency risk Currency risk is the risk
of fluctuation in the fair value or future cash flows of a financial instrument due to changes in foreign currency exchange rates.
The Company’s exposure to currency risk relates to the collection of its revenue in pesos, in conformity with regulated electricity
rates that are not indexed in relation to the US dollar, whereas a significant portion of its existing financial liabilities is
denominated in US dollars. Therefore, the Company is exposed to the risk of a loss resulting from a devaluation of the peso. The
Company may hedge its currency risk trying to enter into currency futures. At the date of issuance of these financial statements,
the Company has not hedged its exposure to the US dollar. If the Company continued
to be unable to effectively hedge all or a significant part of its exposure to currency risk, any devaluation of the peso could
significantly increase its debt service burden, which, in turn, could have a substantial adverse effect on its financial and cash
position (including its ability to repay its Corporate Notes) and the results of its operations. The exchange rates used as of
December 31, 2019 and 2018 are $ 59.89 and $ 37.70 per USD, respectively. As of December 31,
2019 and 2018, the Company’s balances in foreign currency are as follow:
Currency Amount in foreign currency Exchange rate (1) Total Total
ASSETS
NON-CURRENT ASSETS
Other receivables USD - 59.890 - 1,177,257
TOTAL NON-CURRENT ASSETS - 1,177,257
CURRENT ASSETS
Other receivables USD 1,000 59.890 59,890 230,021
Financial assets at fair value through profit or loss USD 46,583 59.890 2,789,856 5,052,556
Cash and cash equivalents USD 2,010 59.890 120,379 14,416
EUR 11 67.227 739 -
TOTAL CURRENT ASSETS 2,970,864 5,296,993
TOTAL ASSETS 2,970,864 6,474,250
LIABILITIES
NON-CURRENT LIABILITIES
Borrowings USD 136,875 59.890 8,197,429 11,059,857
TOTAL NON-CURRENT LIABILITIES 8,197,429 11,059,857
CURRENT LIABILITIES
Trade payables USD 9,054 59.890 542,207 1,015,588
EUR 424 67.227 28,504 6,172
CHF 248 61.925 15,357 -
NOK 68 6.849 466 455
Borrowings USD 27,705 59.890 1,659,236 1,656,799
Other payables USD 9,086 59.890 544,161 -
TOTAL CURRENT LIABILITIES 2,789,931 2,679,014
TOTAL LIABILITIES 10,987,360 13,738,871 (1)
The exchange rates used are the BNA exchange rates in effect as of December 31, 2019 for US Dollars (USD), Euros (EUR), Swiss Francs
(CHF) and Norwegian Krones (NOK). The table below shows
the Company’s exposure to currency risk resulting from the financial assets and liabilities denominated in a currency other
than the Company’s functional currency.
12.31.19 12.31.18
Net position
US dollar (7,972,908) (7,257,994)
Euro (27,765) (6,172)
Norwegian krone (466) (455)
Swiss franc (15,357) -
Total (8,016,496) (7,264,621) The Company estimates
that a 10% devaluation of the Argentine peso with respect to each foreign currency, with all the other variables remaining constant,
would give rise to the following decrease in the profit for the year:
12.31.19 12.31.18
Net position
US dollar (797,291) (725,799)
Euro (2,777) (617)
Norwegian krone (47) (46)
Swiss franc (1,536) -
Decrease in the results of operations for the year (801,651) (726,462)
ii. Price risk The Company’s investments
in listed equity instruments are susceptible to market price risk arising from the uncertainties concerning the future value of
these instruments. Due to the low significance of the investments in equity instruments in relation to the net asset/liability
position, the Company is not significantly exposed to the referred to instruments price risk. Furthermore, the Company
is not exposed to commodity price risk.
iii. Interest rate risk Interest rate risk is
the risk of fluctuation in the fair value or cash flows of an instrument due to changes in market interest rates. The Company’s
exposure to interest rate risk is related mainly to the long-term debt obligations. Indebtedness at floating
rates exposes the Company to interest rate risk on its cash flows. Indebtedness at fixed rates exposes the Company to interest
rate risk on the fair value of its liabilities. As of December 31, 2019 and 2018 -except for a loan applied for by the Company
and granted by ICBC Bank as from October 2017 for a three-year term at a six-month Libor rate plus an initial 2.75% spread, which
will be increased semi-annually by a quarter-point-, 100% of the loans were obtained at fixed interest rates. The Company’s
policy is to keep the largest percentage of its indebtedness in instruments that accrue interest at fixed rates. The Company analyzes its
exposure to interest rate risk in a dynamic manner. Several scenarios are simulated taking into account the positions with respect
to refinancing, renewal of current positions, alternative financing and hedging. Based on these scenarios, the Company calculates
the impact on profit or loss of a specific change in interest rates. In each simulation, the same interest rate fluctuation is
used for all the currencies. Scenarios are only simulated for liabilities that represent the most relevant interest-bearing positions. The table below shows
the breakdown of the Company’s loans according to interest rate and the currency in which they are denominated:
12.31.19 12.31.18
Fixed rate:
US dollar 8,340,891 9,779,750
Subtotal loans at fixed rates 8,340,891 9,779,750
Floating rate:
US dollar 1,515,774 2,936,906
Subtotal loans at floating rates 1,515,774 2,936,906
Total loans 9,856,665 12,716,656 Based on the simulations
performed, a 1% increase in floating interest rates, with all the other variables remaining constant, would give rise to the following
decrease in the profit for the year:
12.31.19 12.31.18
Floating rate:
US dollar (3,202) (6,521)
Decrease in the results of operations for the year (3,202) (6,521) Based on the simulations
performed, a 1% decrease in floating interest rates, with all the other variables remaining constant, would give rise to the following
increase in the profit for the year:
12.31.19 12.31.18
Floating rate:
US dollar 3,202 6,521
Increase in the results of operations for the year 3,202 6,521 b. Credit
risk Credit risk is the risk
of a financial loss as a consequence of a counterparty’s failure to comply with the obligations assumed in a financial instrument
or commercial contract. The Company’s exposure to credit risk results from its operating (particularly from its commercial
receivables) and financial activities, including deposits in financial entities and other instruments. Credit risk arises from
cash and cash equivalents, deposits with banks and financial entities and derivative financial instruments, as well as from credit
exposure to customers, included in outstanding balances of accounts receivable and committed transactions. With regard to banks and
financial entities, only those with high credit quality are accepted. With regard to debtors,
if no independent credit risk ratings are available, the Finance Department evaluates the debtors’ credit quality, past experience
and other factors. Individual credit limits
are established in accordance with the limits set by the Company’s CEO, on the basis of the internal or external ratings
approved by the Finance and Control Department. The Company has different
procedures in place to reduce energy losses and allow for the collection of the balances owed by its customers. The Commercial
Department periodically monitors compliance with the above-mentioned procedures. One of the significant
items of delinquent balances is that related to the receivable amounts with Municipalities, in respect of which the Company either
applies different offsetting mechanisms against municipal taxes it collects in the name and to the order of those government bodies,
or implements debt refinancing plans, with the aim of reducing them. At each year-end, the
Company analyzes whether the recording of an impairment is necessary. As of December 31, 2019 and 2018, delinquent trade receivables
totaled approximately $ 3,461.4 million and $ 3,031.0 million, respectively. As of December 31, 2019 and 2018, the financial
statements included allowances for $ 1.546,3 million and $ 1,385.9 million, respectively. The inability to collect
the accounts receivable in the future could have an adverse effect on the Company’s results of operations and its financial
position, which, in turn, could have an adverse effect on the Company’s ability to repay loans, including payment of the
Corporate Notes. The balances of the bills
for electricity consumption of small-demand (T1), medium-demand (T2) and large-demand (T3) customers that remain unpaid 7 working
days after the bills’ first due dates are considered delinquent trade receivables. Additionally, the amounts related to the
Framework Agreement are not considered within delinquent balances. The Company’s maximum
exposure to credit risk is based on the book value of each financial asset in the financial statements, after deducting the corresponding
allowances. c.
Liquidity risk The Company monitors the
risk of a deficit in cash flows on a periodical basis. The Finance Department supervises the updated projections of the Company’s
liquidity requirements in order to ensure that there is enough cash to meet its operational needs, permanently maintaining sufficient
margin for undrawn credit lines so that the Company does not fail to comply with the indebtedness limits or covenants, if applicable,
of any line of credit. Such projections give consideration to the Company’s debt financing plans, compliance with covenants,
with internal balance sheet financial ratios objectives and, if applicable, with external regulations and legal requirements, such
as, restrictions on the use of foreign currency. Cash surpluses held by
the Company and the balances in excess of the amounts required to manage working capital are invested in Money Market Funds and/or
time deposits that accrue interest, currency deposits and securities, choosing instruments with appropriate maturities or sufficient
liquidity to provide sufficient margin as determined in the aforementioned projections. As of December 31, 2019 and 2018, the Company’s
current financial assets at fair value amount to $ 3,039.5 million and $ 5,199.8 million, respectively, which are expected to generate
immediate cash inflows to manage the liquidity risk. The table below includes
an analysis of the Company’s non-derivative financial liabilities, which have been classified into maturity groupings based
on the remaining period between the closing date of the fiscal year and the contractual maturity date. Derivative financial liabilities
are included in the analysis if their contractual maturities are essential for an understanding of the timing of the cash flows.
The amounts disclosed in the table are the contractual undiscounted cash flows.
No deadline Less than 3 months From 3 months to 1 year From 1 to 2 years From 2 to 5 years More than 5 years Total
As of December 31, 2019
Trade and other payables 767,683 15,974,799 5,967,447 208,378 5,002,288 213,096 28,133,691
Borrowings - - 1,659,236 - 8,197,429 - 9,856,665
Total 767,683 15,974,799 7,626,683 208,378 13,199,717 213,096 37,990,356
As of December 31, 2018
Trade and other payables 19,078,817 13,966,826 4,245,273 126,846 153,698 - 37,571,460
Borrowings - - 1,052,508 1,052,508 11,804,260 - 13,909,276
Total 19,078,817 13,966,826 5,297,781 1,179,354 11,957,958 - 51,480,736 Note
5.2 | Concentration risk factors a.
Related to customers The Company’s receivables
derive primarily from the sale of electricity. No single customer accounted
for more than 10% of sales for the years ended December 31, 2019 and 2018. The collectibility of trade receivables balances related
to the Framework Agreement, which amount to $ 9.0 million and $ 16.0 million as of December 31, 2019 and 2018, respectively, as
disclosed in Note 2.e), is subject to both such agreement’s being in force and the compliance with its terms. b.
Related to employees who are union members As of December 31, 2019,
the Company’s employees are members of unions, Sindicato de Luz y Fuerza de Capital Federal (Electric Light and Power Labor
Union of the Federal Capital) and Asociación del Personal Superior de Empresas de Energía (Association of Supervisory
Personnel of Energy Companies). These employees labor cost depends on negotiations between the Company and the unions; a sensitive
change in employment conditions generates a significant impact on the Company’s labor costs. The collective bargaining
agreements entered into in 2018 were in effect until October 2019. Subsequently, a new agreement effective from November 2019 to
January 2020 was signed. At the date of issuance of these financial statements, there is no certainty concerning future collective
bargaining agreements. Note
5.3 | Capital risk management The Company’s objectives
when managing capital are to safeguard its ability to continue as a going concern and to maintain an optimal capital structure
to reduce the cost of capital. Consistent with others
in the industry, the Company monitors its capital on the basis of the gearing ratio. This ratio is calculated as net debt divided
by total capital. Net debt is calculated as total liabilities (current and non-current) less cash and cash equivalents. Total capital
is calculated as equity attributable to the owners as shown in the Statement of Financial Position plus net debt. As of December 31, 2019 and 2018,
gearing ratios were as follow:
12.31.19 12.31.18
Total liabilities 60,321,760 70,767,270
Less: Cash and cash equivalents and Financial assets at fair value through profit or loss (3,199,473) (5,242,262)
Net debt 57,122,287 65,525,008
Total Equity 59,150,849 47,620,990
Total capital attributable to owners 116,273,136 113,145,998
Gearing ratio 49.13% 57.91% Note
5.4 | Regulatory risk factors Pursuant to caption C
of Section 37 of the Concession Agreement, the Grantor of the Concession may, without prejudice to other rights to which he is
entitled thereunder, foreclose on the collateral granted by the Company when the cumulative value of the penalties imposed to the
Company in the previous one-year period exceeds 20% of its annual billing, net of taxes and rates. The Company’s Management
evaluates the development of this indicator on an annual basis. At the date of issuance of these financial statements, there are
no events of non-compliance by the Company that could lead to that situation. Note
5.5 | Fair value estimate The Company classifies
the measurements of financial instruments at fair value using a fair value hierarchy that reflects the relevance of the variables
used to carry out such measurements. The fair value hierarchy has the following levels: Level 1 Level 2 Level 3 The table below shows
the Company’s financial assets and liabilities measured at fair value as of December 31, 2019 and 2018:
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
At December 31, 2019
Assets
Financial assets at fair value through profit or loss:
Money market funds 2,789,831 - - 2,789,831
Cash and cash equivalents:
Money market funds 249,700 - - 249,700
Total assets 3,039,531 - - 3,039,531
Liabilities
Derivative financial instruments - 205,246 - 205,246
Total liabilities - 205,246 - 205,246
At December 31, 2018
Assets
Financial assets at fair value through profit or loss:
Government bonds 5,052,573 - - 5,052,573
Money market funds 147,236 - - 147,236
Total assets 5,199,809 - - 5,199,809
Liabilities
Derivative financial instruments - 1,591 - 1,591
Total liabilities - 1,591 - 1,591 The value of the financial
instruments negotiated in active markets is based on the market quoted prices on the date of the statement of financial position.
A market is considered active when the quoted prices are regularly available through a stock exchange, broker, sector-specific
institution or regulatory body, and those prices reflect regular and current market transactions between parties that act in conditions
of mutual independence. The market quotation price used for the financial assets held by the Company is the current offer price.
These instruments are included in level 1. The fair value of financial
instruments that are not negotiated in active markets is determined using valuation techniques. These valuation techniques maximize
the use of market observable information, when available, and rely as little as possible on specific estimates of the Company.
If all the significant variables to establish the fair value of a financial instrument can be observed, the instrument is included
in level 2. These derivative financial instruments arise from the variation between the market prices at year-end or sale thereof
and the time of negotiation. The market value used is obtained from the “Transactions with securities” report issued
by Banco Mariva. When one or more relevant
variables used to determine the fair value cannot be observed in the market, the financial instrument is included in level 3. There
are no financial instruments that are to be included in level 3.

6. Critical accounting estimate

6. Critical accounting estimates and judgments12 Months Ended
Dec. 31, 2019
Critical Accounting Estimates And Judgments
Critical accounting estimates and judgmentsThe preparation of the
financial statements requires the Company’s Management to make estimates and assessments concerning the future, exercise
critical judgments and make assumptions that affect the application of the accounting policies and the reported amounts of assets
and liabilities and revenues and expenses. These estimates and judgments
are permanently evaluated and are based upon past experience and other factors that are reasonable under the existing circumstances.
Future actual results may differ from the estimates and assessments made at the date of preparation of these financial statements. The estimates that have
a significant risk of causing adjustments to the amounts of assets and liabilities during the next fiscal year are detailed below: a.
Impairment of financial assets The allowance for the
impairment of accounts receivable is assessed based on the delinquent balance, which comprises all such debt arising from the bills
for electricity consumption of small-demand (T1), medium-demand (T2), and large-demand (T3) customers that remain unpaid 7 working
days after their first due dates. The Company’s Management records an allowance applying to the delinquent balances of each
customer category an uncollectibility rate that is determined according to each customer category based on the historical comparison
of collections made. Additionally, and faced
with temporary and/or exceptional situations, the Company’s Management may redefine the amount of the allowance, specifying
and supporting the criteria used in all the cases. As from January 1, 2018,
the Company has applied the amended IFRS 9 retrospectively with the allowed practical resources, without restating the comparative
periods. The Company has performed
a review of the financial assets it currently measures and classifies at fair value through profit or loss or at amortized cost
and has concluded that they meet the conditions to maintain their classification; consequently, the initial adoption has not affected
the classification and measurement of the Company’s financial assets. Furthermore, with regard
to the new hedge accounting model, the Company has not elected to designate any hedge relationship at the date of the initial adoption
of the amended IFRS 9 and, consequently, has generated no impact on the Company’s results of operations or its financial
position. b.
Revenue recognition Revenue is recognized
on an accrual basis upon delivery to customers, which includes the estimated amount of unbilled distribution of electricity at
the end of each year. The accounting policy for the recognition of estimated revenue is considered critical because it depends
on the amount of electricity effectively delivered to customers, which is valued on the basis of applicable tariffs. Unbilled revenue
is classified as current trade receivables. c.
Impairment of long-lived assets The Company analyzes the
recoverability of its long-lived assets on a periodical basis or when events or changes in circumstances indicate that the recoverable
amount of assets, which is measured as the higher of value in use and fair value less costs to sell at the end of the year, may
be impaired. As from the enactment
by the PEN of the new measures, mentioned in Notes 1 and 2.b., the projections made by the Company concerning the recoverability
of its property, plant and equipment have been updated. The value in use is determined
on the basis of projected and discounted cash flows, using discount rates that reflect the time value of money and the specific
risks of the assets under consideration. Cash flows are prepared
based on estimates concerning the future performance of certain variables that are sensitive to the determination of the recoverable
amount, among which the following can be noted: (i) nature, timing, and modality of the electricity rate increases and/or recognition
of cost adjustments; (ii) demand for electricity projections; (iii) development of the costs to be incurred; (iv) investment needs
appropriate to the service quality levels required by the regulatory authority, and (v) macroeconomic variables, such as, growth
rates, inflation rates and foreign currency exchange rates, among others. The future increase in
electricity rates used by the Company to assess the recoverability of its long-lived assets on balances as of December 31, 2019
is based on the contractual rights held by the Company deriving from the concession agreement. Furthermore, the new announcements
made by government officials and the adopted measures described in Notes 1 and 2 to these financial statements have been taken
into account. The Company has made its
projections under the assumption that it will obtain better electricity rates in the next few years. However, given the complexity
of the country’s macroeconomic scenario, the Company’s Management is not in a position to ensure that the future performance
of the assumptions used in making its projections will be in line with what it has estimated at the date of preparation of these
financial statements. In order to consider the
estimation risk included in the projections of the aforementioned variables, the Company has taken into consideration three alternative
probability-weighted scenarios, which are detailed below: a) b) c) The Company has assigned
to these three scenarios the previously described probability of occurrence percentages based mainly on experience and giving consideration
to the current economic and financial situation. The discount rate (WACC)
in pesos used in all the scenarios varies for each year of the projection. For the first 5 years, the average of these rates is
41%. Conclusions are disclosed in Note 4.2 of these financial statements. Sensitivity analysis: The main factors that
could result in impairment charges in future periods are: i) a distortion in the nature, timing, and modality of the electricity
rate increases and recognition of cost adjustments, ii) the development of the costs to be incurred, and iii) the investment needs
appropriate to the service quality levels required by the regulatory authority in the RTI, among other factors. These factors have
been taken into account in the aforementioned weight of scenarios. Due to the uncertainty inherent in these assumptions, the Company
estimates that any sensitivity analysis that considers changes in any of them taken individually could lead to distorting conclusions. d.
Current and deferred income tax A degree of judgment is
required to determine the income tax provision inasmuch as the Company’s Management has to evaluate, on an ongoing basis,
the positions taken in tax returns in respect of situations in which the applicable tax regulation is subject to interpretation
and, whenever necessary, make provisions based on the amount expected to be paid to the tax authorities. When the final tax outcome
of these matters differs from the amounts initially recognized, such differences will impact on both the income tax and the deferred
tax provisions in the fiscal year in which such determination is made. There are many transactions
and calculations for which the ultimate tax determination is uncertain. The Company recognizes liabilities for eventual tax claims
based on estimates of whether additional taxes will be due in the future. Deferred tax assets are
reviewed at each reporting date and reduced in accordance with the probability that the sufficient taxable base will be available
to allow for the total or partial recovery of these assets. Deferred tax assets and liabilities are not discounted. The realization
of deferred tax assets depends on the generation of future taxable income in the periods in which these temporary differences become
deductible. To make this assessment, the Company’s Management takes into consideration the scheduled reversal of deferred
tax liabilities, the projected future taxable income, the prevailing rates to be applied in each period, and tax planning strategies. e.
Benefit plans The liability recognized
by the Company is the best estimate of the present value of the cash flows representing the benefit plan obligation at the closing
date of the year together with the adjustments for past service costs and actuarial losses. Cash flows are discounted using a rate
that contemplates actuarial assumptions about demographic and financial conditions that affect the determination of benefit plans.
Such estimate is based on actuarial calculations made by independent professionals in accordance with the projected unit credit
method. f.
ENRE penalties and discounts The Company considers
its applicable accounting policy for the recognition of ENRE penalties and discounts critical because it depends on penalizable
events that are valued on the basis of the Management´s best estimate of the expenditure required to settle the present obligation
at the date of these financial statements. The balances of ENRE penalties and discounts are adjusted in accordance with the regulatory
framework applicable thereto and have been estimated based on that which has been described in Note 2.d). g.
Contingencies and provisions for lawsuits The Company is a party
to several complaints, lawsuits and other legal proceedings, including customer claims, in which a third party is seeking payment
for alleged damages, reimbursement for losses or compensation. The Company’s potential liability with respect to such claims,
lawsuits and legal proceedings may not be accurately estimated. The Company’s Management, with the assistance of its legal
advisors (attorneys), periodically analyzes the status of each significant matter and evaluates the Company’s potential financial
exposure. If the loss deriving from a complaint or legal proceeding is considered probable and the amount can be reasonably
estimated, a provision is recorded. Provisions for contingent
losses represent a reasonable estimate of the losses that will be incurred, based on the information available to Management at
the date of the financial statements preparation, taking into account the Company’s litigation and settlement strategies.
These estimates are mainly made with the help of legal advisors. However, if the Management’s estimates proved wrong, the
current provisions could be inadequate and result in a charge to profits that could have a significant effect on the statements
of financial position, comprehensive income, changes in equity and cash flows.

7. Interest in joint venture

7. Interest in joint venture12 Months Ended
Dec. 31, 2019
Interest In Joint Venture
Interest in joint venturePercentage interest held Equity attributable to the owners
in capital stock and votes 12.31.19 12.31.18
SACME 50.00% 11,152 13,599

8. Contingencies and lawsuits

8. Contingencies and lawsuits12 Months Ended
Dec. 31, 2019
Contingencies And Lawsuits
Contingencies and lawsuitsThe Company has contingent
liabilities and is a party to lawsuits that arise from the ordinary course of business. Based on the opinion of its in-house and
external legal advisors, the Company’s Management estimates that the outcome of the current contingencies and lawsuits will
not result in amounts that either exceed those of the recorded provisions or could be significant with respect to the Company’s
financial position or the results of its operations. Furthermore, it is worth
mentioning that there exist contingent obligations and labor, civil and commercial complaints filed against the Company related
to legal actions for individual non-significant amounts, which as of December 31, 2019 total $ 2,276.4 million, for which a provision
has been recorded. We detail below the nature
of the significant judicial proceedings in relation to which, as of December 31, 2019, the Company believes, based on the opinion
of its in-house and external legal advisors, there exist grounds for them not to be deemed probable: Note
8.1 | Civil and commercial proceedings – Consumer claims -
By means of the action filed by Consumidores Financieros Asociación Civil para su Defensa, the following is claimed from the
Company: Ø
Reimbursement of the Value Added Tax (VAT) percentage paid on the illegally “widened” taxable basis due to the incorporation
of the FNEE. Distribution companies, the defendants, had not paid this tax when CAMMESA invoiced them the electricity purchased
for distribution purposes. Ø
Reimbursement of part of the administrative surcharge on “second due date”, in those cases in which payment was made
within the time period authorized for such second deadline (14 days) but without distinguishing the effective day of payment. Ø
Application of the “borrowing rate” in case of customer delay in complying with payment obligation, in accordance with
the provisions of Law No. 26,361. On April 22, 2010, the
Company answered the complaint and filed a motion to dismiss for lack of standing (“ excepción de falta de legitimación edenor edenor By means of the action
filed by Asociación de Defensa de derechos de clientes y consumidores (ADDUC) it is requested that the Company be ordered
by the Court to reduce or mitigate the default or late payment interest rates charged to customers who pay their bills after the
first due date, inasmuch as they violate section 31 of Law No. 24,240, ordering both the non application of pacts or accords that
stipulate the interest rates that are being applied to the users of electricity –their unconstitutional nature– as
well as the reimbursement of interest amounts illegally collected from the customers of the service from August 15, 2008 through
the date on which the defendant complies with the order to reduce interest. It is also requested that the VAT and any other taxes
charged on the portion of the surcharge illegally collected be reimbursed. On November 11, 2011,
the Company answered the complaint and filed a motion to dismiss for both lack of standing to sue (“ excepción de
falta de legitimación activa excepción
de litispendencia edenor At the date of issuance
of these financial statements, there have been no breaches of the aforementioned ratios. Note
8.2 | Civil and Commercial Proceedings for the Determination of a Claim – Judicial Annulment ENRE
Resolution 32/11 -
The Company seeks to obtain the judicial annulment of the ENRE’s Resolution that provided the following: Ø
That the Company be fined in the amount of $ 750 thousand due to its failure to comply with the obligations arising from Section
25, sub-sections a, f and g, of the Concession Agreement and Section 27 of Law No. 24,065. Ø
That the Company be fined in the amount of $ 375 thousand due to its failure to comply with the obligations arising from Section
25 of the Concession Agreement and ENRE Resolution No. 905/99. Ø
That the Company be ordered to pay customers as compensation for the power cuts suffered the following amounts: $ 180 to each small-demand
residential customer (T1R) who suffered power cuts that lasted more than 12 continuous hours, $ 350 to those who suffered power
cuts that lasted more than 24 continuous hours, and $ 450 to those who suffered power cuts that lasted more than 48 continuous
hours. The resolution stated that such compensation did not include damages to customer facilities and/or appliances, which were
to be dealt with in accordance with a specific procedure. On July 8, 2011, the Company
requested that notice of the action be served upon the ENRE, which has effectively taken place. The proceedings are “awaiting
resolution” since the date on which the ENRE answered the notice served. Furthermore, on October 28, 2011, the Company filed
an appeal (“ Recurso de Queja por apelación denegada edenor Recurso Ordinario de Apelación Recurso Extraordinario Federal edenor Recurso de Queja por Rec.
Extraordinario Denegado At the closing date of
the year ended December 31, 2019, the Company made a provision for principal and interest accrued for an amount of $ 88.1 million
within the Non-current other liabilities account. Based on that which has been mentioned above, and once the regulatory authority
has given its consent, such provision should no longer be recorded. Note
8.3 | Civil and Commercial Proceedings for the Determination of a Claim – Regulatory Liability
Claim against the Federal Government On June 28, 2013, the
Company instituted these proceedings for the recognizance of a claim and the related leave to proceed in forma pauperis, both pending
in Federal Court of Original Jurisdiction in Contentious and Administrative Federal Matters No. 11 – Clerk’s Office
No. 22, whose purpose is to sue for breach of contract due to the Federal Government’s failure to perform in accordance with
the terms of the “Agreement on the Renegotiation of the Concession Agreement” (“ Acta Acuerdo de Renegociación
del Contrato de On November 22, 2013,
the Company amended the complaint so as to extend it and claim more damages as a consequence of the Federal Government’s
omission to perform the obligations under the aforementioned “Adjustment Agreement”. On February 3, 2015, the Court
hearing the case ordered that notice of the complaint be served to be answered within the time limit prescribed by law, which was
answered by the Federal Government in due time and in proper manner. Subsequently, edenor On September 16, 2019,
-in the framework of the judicial record of the motion to litigate in forma pauperis-, the Company filed a brief regarding the
abandonment of the action and waiver of right, requesting at the same time that each party be held liable for its own court costs.
The representatives of the Federal Government gave their consent to the terms of the brief. Taking account of the brief, on September
24, the Court terminated the proceedings Furthermore, in the main
proceedings, edenor

9. Property, plant and equipmen

9. Property, plant and equipment12 Months Ended
Dec. 31, 2019
Property, plant and equipment [abstract]
Property, plant and equipmentLands and buildings Substations High, medium and low voltage lines Meters and Transformer chambers and platforms Tools, Furniture, vehicles, equipment, communications and advances to suppliers Construction in process Supplies and spare parts Total
At 12.31.18
Cost 2,228,765 21,173,166 58,526,862 24,217,962 4,085,114 20,620,507 300,321 131,152,697
Accumulated depreciation (374,890) (6,111,090) (18,717,354) (7,936,426) (1,945,373) - - (35,085,133)
Net amount 1,853,875 15,062,076 39,809,508 16,281,536 2,139,741 20,620,507 300,321 96,067,564
Additions 36,602 7,125 158,056 288,631 1,035,592 8,295,716 97,472 9,919,194
Disposals (51) (79) (7,400) (52,976) (3,086) - - (63,592)
Transfers 126,361 856,130 4,308,337 2,297,002 (1,120,774) (6,312,332) (154,724) -
Depreciation for the year (82,502) (751,050) (2,165,465) (1,041,807) (583,944) - - (4,624,768)
Net amount 12.31.19 1,934,285 15,174,202 42,103,036 17,772,386 1,467,529 22,603,891 243,069 101,298,398
At 12.31.19
Cost 2,391,728 22,036,421 62,735,909 26,729,242 3,999,933 22,603,891 243,069 140,740,193
Accumulated depreciation (457,443) (6,862,219) (20,632,873) (8,956,856) (2,532,404) - - (39,441,795)
Net amount 1,934,285 15,174,202 42,103,036 17,772,386 1,467,529 22,603,891 243,069 101,298,398 ·
During the year ended December 31, 2019, the Company capitalized as direct own costs $ 1,126.5 million.
Lands and buildings Substations High, medium and low voltage lines Meters and Transformer chambers and platforms Tools, Furniture, vehicles, equipment, communications and advances to suppliers Construction in process Supplies and spare parts Total
At 12.31.17
Cost 2,116,247 20,714,928 56,017,555 23,137,842 3,854,001 13,404,398 139,488 119,384,459
Accumulated depreciation (315,931) (5,492,137) (17,298,877) (7,133,076) (1,403,076) - - (31,643,097)
Net amount 1,800,316 15,222,791 38,718,678 16,004,766 2,450,925 13,404,398 139,488 87,741,362
Additions 28,827 175,050 585,141 79,220 793,829 11,285,728 199,487 13,147,282
Disposals (56) (3,400) (145,751) (55,158) (677,899) - - (882,264)
Transfers 137,239 288,352 2,452,719 1,092,364 137,599 (4,069,619) (38,654) -
Depreciation for the year (112,451) (620,717) (1,801,279) (839,656) (564,713) - - (3,938,816)
Net amount 12.31.18 1,853,875 15,062,076 39,809,508 16,281,536 2,139,741 20,620,507 300,321 96,067,564
At 12.31.18
Cost 2,228,765 21,173,166 58,526,862 24,217,962 4,085,114 20,620,507 300,321 131,152,697
Accumulated depreciation (374,890) (6,111,090) (18,717,354) (7,936,426) (1,945,373) - - (35,085,133)
Net amount 1,853,875 15,062,076 39,809,508 16,281,536 2,139,741 20,620,507 300,321 96,067,564 (1) As of December
31, 2018, includes derecognition of real estate asset for $ 675.5 million. ·
During the year ended December 31, 2018, the Company capitalized as direct own costs $ 1,570.5 million.

10. Financial instruments

10. Financial instruments12 Months Ended
Dec. 31, 2019
Disclosure of detailed information about financial instruments [abstract]
Financial instrumentsNote 10.1 |
Financial instruments by category
Financial assets at amortized cost Financial assets at fair value through profit or loss Non-financial assets Total
As of December 31, 2019
Assets
Trade receivables 12,460,070 - - 12,460,070
Other receivables 315,492 - 224 315,716
Cash and cash equivalents
Cash and Banks 159,942 - - 159,942
Money market funds - 249,700 - 249,700
Financial assets at fair value through profit or loss:
Money market funds - 2,789,831 - 2,789,831
Total 12,935,504 3,039,531 224 15,975,259
As of December 31, 2018
Assets
Trade receivables 11,667,923 - - 11,667,923
Other receivables 1,464,977 - 136,011 1,600,988
Cash and cash equivalents - -
Cash and Banks 42,453 - - 42,453
Financial assets at fair value through profit or loss:
Government bonds - 5,052,573 - 5,052,573
Money market funds - 147,236 - 147,236
Financial assets at fair value
Time deposits 1,858,726 - - 1,858,726
Total 15,034,079 5,199,809 136,011 20,369,899
Financial liabilities at amortized cost Financial liabilities at fair value through profit or loss Non-financial liabilities Total
As of December 31, 2019
Liabilities
Trade payables 13,070,359 - - 13,070,359
Other payables 7,616,248 - - 7,616,248
Borrowings 9,856,665 - - 9,856,665
Total 30,543,272 - - 30,543,272
As of December 31, 2018
Liabilities
Trade payables 22,904,340 - - 22,904,340
Other payables 488,126 - 14,191,041 14,679,167
Borrowings 12,716,656 - - 12,716,656
Total 36,109,122 - 14,191,041 50,300,163 Financial instruments categories
have been determined based on IFRS 9. The income, expenses,
gains and losses resulting from each category of financial instruments are as follow:
Financial assets at amortized cost Financial assets at fair value through profit or loss Total
As of December 31, 2019
Interest income 1,208,970 - 1,208,970
Exchange differences 608,847 1,069,587 1,678,434
Changes in fair value of financial assets - 281,039 281,039
Corporate Notes 456,884 - 456,884
Total 2,274,701 1,350,626 3,625,327
As of December 31, 2018
Interest income 1,033,000 - 1,033,000
Exchange differences 3,637,573 - 3,637,573
Bank fees and expenses (13,084) - (13,084)
Changes in fair value of financial assets - 1,147,943 1,147,943
Adjustment to present value (503) - (503)
Total 4,656,986 1,147,943 5,804,929
As of December 31, 2017
Interest income 697,814 - 697,814
Exchange differences 352,287 - 352,287
Bank fees and expenses (4,433) - (4,433)
Changes in fair value of financial assets - 730,248 730,248
Adjustment to present value (663) - (663)
Total 1,045,005 730,248 1,775,253
Financial liabilities at amortized cost Financial liabilities at fair value through profit or loss Total
As of December 31, 2019
Interest expense (6,739,597) - (6,739,597)
Exchange differences (5,846,670) - (5,846,670)
Other financial results (16,299) - (16,299)
Total (12,602,566) - (12,602,566)
As of December 31, 2018
Interest expense (7,639,617) - (7,639,617)
Other financial results (132,393) - (132,393)
Exchange differences (8,451,756) - (8,451,756)
Total (16,223,766) - (16,223,766)
As of December 31, 2017
Interest expense (3,947,849) - (3,947,849)
Other financial results (121,289) - (121,289)
Exchange differences (1,219,638) - (1,219,638)
Total (5,288,776) - (5,288,776) Note 10.2 |
Credit quality of financial assets The credit quality of
financial assets that are neither past due nor impaired may be assessed based on external credit ratings or historical information:
12.31.19 12.31.18
Customers with no external credit rating:
Group 1 (i) 10,560,628 9,900,482
Group 2 (ii) 529,945 738,460
Group 3 (iii) 1,369,497 1,028,981
Total trade receivables 12,460,070 11,667,923
(i) Relates to customers with debt to become due.
(ii) Relates to customers with past due debt from 0 to 3 months.
(iii) Relates to customers with past due debt from 3 to 12 months. At the Statement of Financial
Position date, the maximum exposure to credit risk is the carrying amount of these financial assets.

11. Right-of-use asset

11. Right-of-use asset12 Months Ended
Dec. 31, 2019
Right-of-use Asset
Right-of-use assetThe Company leases commercial
offices, two warehouses, the headquarters building (comprised of administrative, commercial and technical offices), the Energy
Handling and Transformer Center (two buildings and a plot of land located within the perimeter of Puerto Nuevo and Nuevo Puerto
Power Generation Plant) and Las Heras Substation. The Company’s lease contracts have cancelable terms and lease periods of
2 to 3 years.
12.31.19
Total right-of-use asset by leases 260,937 The development of right-of-use assets is as
follows:
12.31.19
Balance at beginning of year -
Incorporation by adoption of IFRS 16 421,991
Additions 3,062
Depreciation for the year (164,116)
Balance at end of the year 260,937

12. Other receivables

12. Other receivables12 Months Ended
Dec. 31, 2019
Other Receivables
Other receivablesNote 12.31.19 12.31.18
Non-current:
Financial credit 22,133 46,873
Related parties 36.d 3,895 7,168
RDSA credit 2,125,890 1,177,256
Allowance for the impairment of other receivables (1) (2,125,890) -
Total Non-current 26,028 1,231,297
Current:
Prepaid expenses 15,204 8,168
Credit for Real estate asset 39 59,890 -
Advances to suppliers 247 125,230
Security deposits 24,937 25,672
Financial credit 44,762 89,841
Receivables from electric activities 100,368 151,294
Related parties 36.d 25,766 41,436
Judicial deposits 68,616 46,872
Other 15,246 38
Allowance for the impairment of other receivables (65,348) (118,860)
Total Current 289,688 369,691 (1)
The impairment charge was charged to finance costs, net of the receivable revaluation. The carrying amount of the Company’s
other financial receivables approximates their fair value. The non-current
other receivables are measured at amortized cost, which does not differ significantly from their fair value. The roll forward of the allowance for the impairment
of other receivables is as follows:
12.31.19 12.31.18
Balance at beginning of year 118,860 61,309
Increase 2,156,440 83,536
Result from exposure to inlfation (42,727) (25,985)
Recovery (41,335) -
Balance at end of the year 2,191,238 118,860 (1)
The impairment charge was charged to finance costs, net of the receivable revaluation. The aging analysis of
these other receivables is as follows:
12.31.19 12.31.18
Without expiry date 118,553 74,360
Past due 50,513 53,595
Up to 3 months 91,963 198,155
From 3 to 6 months 14,437 31,392
From 6 to 9 months 11,493 7,506
From 9 to 12 months 2,729 4,683
More than 12 months 26,028 1,231,297
Total other receivables 315,716 1,600,988 At the Statement of Financial
Position date, the maximum exposure to credit risk is the carrying amount of each class of other receivables. The carrying amount of
the Company’s other receivables is denominated in Argentine pesos.

13. Trade receivables

13. Trade receivables12 Months Ended
Dec. 31, 2019
Trade Receivables
Trade receivables12.31.19 12.31.18
Current:
Sales of electricity – Billed 7,714,038 7,108,327
Sales of electricity – Unbilled 5,792,028 5,744,779
PBA & CABA government credit 251,361 -
Framework Agreement 9,003 15,957
Fee payable for the expansion of the transportation and others 25,046 35,321
Receivables in litigation 214,884 149,400
Allowance for the impairment of trade receivables (1,546,290) (1,385,861)
Total Current 12,460,070 11,667,923 The carrying
amount of the Company’s trade receivables approximates their fair value. The roll forward of the
allowance for the impairment of trade receivables is as follows:
12.31.19 12.31.18
Balance at beginning of the year 1,385,861 1,041,836
Change of accounting standard (Note 6) - Adjustment by model of expected losses IFRS 9 - 126,155
Balance at beginning of the year 1,385,861 1,167,991
Increase 1,365,186 1,419,571
Decrease (771,139) (598,437)
Result from exposure to inlfation (433,618) (603,264)
Balance at end of the year 1,546,290 1,385,861 The aging
analysis of these trade receivables is as follows:
12.31.19 12.31.18
Not due 9,003 15,957
Past due 1,899,443 1,767,442
Up to 3 months 10,551,624 9,884,524
Total trade receivables 12,460,070 11,667,923 At the Statement of Financial
Position date, the maximum exposure to credit risk is the carrying amount of each class of trade receivables. The carrying amount of
the Company’s trade receivables is denominated in Argentine pesos. Sensitivity analysis of
the allowance for impairment of trade receivables: -
5% increase in the uncollectibility rate estimate
12.31.19
Contingencies 1,623,605
Variation 77,315 -
5% decrease in the uncollectibility rate estimate
12.31.19
Contingencies 1,468,975
Variation (77,315)

14. Financial assets at fair va

14. Financial assets at fair value through profit or loss12 Months Ended
Dec. 31, 2019
Financial assets at fair value through profit or loss [abstract]
Financial assets at fair value through profit or loss12.31.19 12.31.18
Current
Money market funds 2,789,831 147,236
Government bonds - 5,052,573
Total current 2,789,831 5,199,809

15. Financial assets at amortiz

15. Financial assets at amortized cost12 Months Ended
Dec. 31, 2019
Financial Assets At Amortized Cost
Financial assets at amortized cost12.31.19 12.31.18
Non-current
Current
Government bonds - -
Time deposits - 1,858,726
Total Current - 1,858,726

16. Inventories

16. Inventories12 Months Ended
Dec. 31, 2019
Inventories Abstract
Inventories12.31.19 12.31.18
Current
Supplies and spare-parts 1,854,336 1,925,654
Advance to suppliers 72,527 11,544
Total inventories 1,926,863 1,937,198

17. Cash and cash equivalents

17. Cash and cash equivalents12 Months Ended
Dec. 31, 2019
Cash and cash equivalents [abstract]
Cash and cash equivalents12.31.19 12.31.18
Cash and banks 159,942 42,453
Money market funds 249,700 -
Total cash and cash equivalents 409,642 42,453

18. Share capital and additiona

18. Share capital and additional paid-in capital12 Months Ended
Dec. 31, 2019
Share Capital And Additional Paid-in Capital
Share capital and additional paid-in capitalShare capital Additional paid-in capital Total
Balance at December 31, 2016 27,982,570 282,328 28,264,898
Payment of Other reserve constitution - Share-bases compensation plan - 71,222 71,222
Balance at December 31, 2017 27,982,570 353,550 28,336,120
Payment of Other reserve constitution - Share-bases compensation plan (146) 16,441 16,295
Balance at December 31, 2018 and December 31, 2019 27,982,424 369,991 28,352,415 As of December 31, 2019,
the Company’s share capital amounts to 906,455,100 shares, divided into 462,292,111 common, book-entry Class A shares with
a par value of one peso each and the right to one vote per share; 442,210,385 common, book-entry Class B shares with a par value
of one peso each and the right to one vote per share; and 1,952,604 common, book-entry Class C shares with a par value of one peso
each and the right to one vote per share. Listing of the Company’s
shares The Company’s shares
are listed on the Buenos Aires Stock Exchange and are part of the Merval Index. Furthermore, with the
SEC’s prior approval, the Company’s ADSs, each representing 20 common shares of the Company, began to be traded on
the NYSE as from April 24, 2007. The listing of ADSs on
the NYSE is part of the Company’s strategic plan to increase both its liquidity and the volume of its shares.

19. Allocation of profits

19. Allocation of profits12 Months Ended
Dec. 31, 2019
Allocation Of Profits
Allocation of profitsThe restrictions on the
distribution of dividends by the Company are those provided for by the Business Organizations Law and the negative covenants established
by the Corporate Notes program. As of December 31, 2019, the Company complies with the debt ratio established in such program. If the Company’s
Debt Ratio were higher than 3, the negative covenants included in the Corporate Notes program, which establish, among other issues,
the Company’s impossibility to make certain payments, such as dividends, would apply. Additionally, in accordance
with Title IV, Chapter III, section 3.11.c of the CNV, the amounts subject to distribution will be restricted to the amount equivalent
to the acquisition cost of the Company’s own shares.

20. Share-based Compensation Pl

20. Share-based Compensation Plan12 Months Ended
Dec. 31, 2019
Share-based Compensation Plan
Share-based Compensation PlanIn 2016, the Company’s
Board of Directors proposed that the treasury shares be used for the implementation of a long-term incentive plan in favor of executive
directors, managers or other personnel holding key executive positions in the Company in an employment relationship with the latter
and those who in the future are invited to participate, in accordance with the provisions of section 67 of Law No. 26,831 on Capital
Markets. The plan was ratified and approved by the ordinary and extraordinary shareholders’ meeting held on April 18, 2017. The fair value of the
previously referred to shares at the award date, amounted to $ 75.9 million and has been recorded in the Salaries and social security
taxes line item, with a contra account in Equity. The amount recorded in Equity is net of the tax effect.

21. Acquisition of the Company'

21. Acquisition of the Company's own shares12 Months Ended
Dec. 31, 2019
Acquisition Of Companys Own Shares
Acquisition of the Company's own sharesThe Company’s Board
of Directors, at its meeting of April 8, 2019, approved the acquisition of the Company’s own shares in conformity with section
64 of Law 26,831 and the CNV’s regulations, under the following main terms and conditions: ·
Maximum amount to be invested: up to $ 800 million; ·
The treasury stock may not exceed, as a whole, the limit of 10% of share capital. ·
Price to be paid for the shares: up to a maximum of USD 23 per ADR in the New York Stock Exchange, or the amount in pesos equivalent
to USD 1.15 per share in Bolsas y Mercados Argentinos S.A., using as reference the closing exchange rate of the day prior to the
transaction; ·
The acquisitions will be made with realized and liquid profits; ·
The shares may be acquired for a term of 120 calendar days to commence on April 9, 2019. The Company’s Board
of Directors, at its meeting of June 12, 2019, resolved to bring the duly established term for the acquisition of the Company’s
own shares to an early end. As of December 31, 2019,
the Company’s treasury stock amounts to 31,380,871 Class B shares, 8,269,740 of which were acquired in the fiscal year being
reported, for a total of $ 599.2 million restated in constant currency.

22. Trade payables

22. Trade payables12 Months Ended
Dec. 31, 2019
Trade Payables
Trade payablesNote 12.31.19 12.31.18
Non-current
Customer guarantees 213,097 216,768
Customer contributions 156,455 172,720
Funding contributions - substations 2.c - 50,628
Total Non-current 369,552 440,116
Current
Payables for purchase of electricity - CAMMESA 4,367,129 8,727,732
Provision for unbilled electricity purchases - CAMMESA 2.c 4,938,327 9,584,381
Suppliers 3,042,079 3,730,485
Advance to customer 285,042 302,135
Customer contributions 30,858 23,508
Discounts to customers 37,372 57,467
Funding contributions - substations 2.c - 26,471
Related parties 36.d - 12,045
Total Current 12,700,807 22,464,224 The fair values of non-current
customer contributions as of December 31, 2019 and 2018 amount to $ 45.1 million and $ 165.6 million, respectively. The fair values
are determined based on estimated discounted cash flows in accordance with a representative market rate for this type of transactions.
The applicable fair value category is Level 3 category. The carrying amount of
the other financial liabilities included in the Company’s trade payables approximates their fair value.

23. Other payables

23. Other payables12 Months Ended
Dec. 31, 2019
Other Payables
Other payablesNote 12.31.19 12.31.18
Non-current
ENRE penalties and discounts 2.c 3,932,272 7,838,276
Loans (mutuum) with CAMMESA 2.c - 3,509,303
Liability with FOTAE 2.c - 318,874
Payment agreements with ENRE - 57,195
Financial Lease Liability (1) 87,360 -
Total Non-current 4,019,632 11,723,648
Current
ENRE penalties and discounts 3,386,681 2,822,587
Related parties 36.d 12,566 11,642
Advances for works to be performed 6,135 20,875
Payment agreements with ENRE 48,236 100,415
Financial Lease Liability (1) 134,177 -
Other 8,821 -
Total Current 3,596,616 2,955,519 The carrying amount of the Company’s
other financial payables approximates their fair value. (1)
The development of the financial lease liability is as follows:
12.31.19
Balance at beginning of year -
Incorporation by adoption of IFRS 16 421,991
Increase 3,062
Payments (212,403)
Exchange difference and gain on net monetary position 8,887
Balance at end of the year 221,537 As of December 31, 2019,
the detail of the future minimum lease payments is as follows:
12.31.19
2020 198,910
2021 137,816
2022 3,427
Total future minimum lease payments 340,153 The Company has signed
contracts with certain cable television companies, granting them the right to use the network posts. As of December 31, 2019 and
2018, future minimum collections with respect to operating assignments of use are as follow:
12.31.19 12.31.18
2019 - 266,974
2020 325,280 -
Total future minimum lease collections 325,280 266,974

24. Deferred revenue

24. Deferred revenue12 Months Ended
Dec. 31, 2019
Deferred Revenue
Deferred revenue12.31.19 12.31.18
Non-current
Nonrefundable customer contributions 270,091 423,539
Total Non-current 270,091 423,539
12.31.19 12.31.18
Current
Nonrefundable customer contributions 5,346 8,221
Total Current 5,346 8,221

25. Borrowings

25. Borrowings12 Months Ended
Dec. 31, 2019
Borrowings [abstract]
Borrowings12.31.19 12.31.18
Non-current
Corporate notes (1) 8,197,429 9,610,574
Borrowing - 1,449,283
Total non-current 8,197,429 11,059,857
Current
Interest from corporate notes 143,462 169,175
Borrowing 1,515,774 1,487,624
Total current 1,659,236 1,656,799 (1)
Net of debt issuance, repurchase and redemption expenses. The fair values of the
Company’s non-current borrowings as of December 31, 2019 and 2018 amount approximately to $ 7,947.3 million and $ 9,936.5
million, respectively. Such values were determined on the basis of the estimated market price of the Company’s Corporate
Notes at the end of each year. The applicable fair value category is Level 1 category. The Company’s borrowings
are denominated in the following currencies:
12.31.19 12.31.18
US dollars 9,856,665 12,716,656
9,856,665 12,716,656 The maturities of the
Company’s borrowings and its exposure to interest rate are as follow:
12.31.19 12.31.18
Fixed rate
Less than 1 year 143,462 169,175
From 2 to 5 years 8,197,429 9,610,574
8,340,891 9,779,749
Floating rate
Less than 1 year 1,515,774 1,487,624
From 1 to 2 years - 1,449,283
From 2 to 5 years - -
1,515,774 2,936,907
9,856,665 12,716,656 The roll forward of the
Company’s borrowings during the year was as follows:
12.31.19 12.31.18
Balance at beginning of the year 12,716,656 9,678,949
Proceeds from borrowings - -
Payment of borrowings' interests (1,134,828) (1,003,605)
Paid from repurchase of Corporate Notes (1,531,033) (577,437)
Payment of borrowings (1,593,024) -
Gain from repurchase of Corporate Notes (456,884) (6,980)
Exchange diference and interest accrued 6,687,379 9,432,905
Result from exposure to inlfation (4,831,601) (4,807,176)
Balance at the end of year 9,856,665 12,716,656 Corporate Notes programs The Company is included
in a Corporate Notes program, the relevant information of which is detailed below: Debt issued in United
States dollars
Million of USD Million of $
Corporate Notes Class Rate Year of Maturity Debt structure at 12.31.18 Debt repurchase Debt structure at 12.31.19 At 12.31.19
Fixed Rate Par Note 9 9.75 2022 161.65 (29.08) 132.57 8,197.43
Total 161.65 (29.08) 132.57 8,197.43
Million of USD Million of $
Corporate Notes Class Rate Year of Maturity Debt structure at 12.31.17 Debt repurchase Debt structure at 12.31.18 At 12.31.18
Fixed Rate Par Note 9 9.75 2022 171.87 (10.22) 161.65 9,610.57
Total 171.87 (10.22) 161.65 9,610.57 The main covenants
are the following:
i. Negative Covenants The terms and conditions
of the Corporate Notes include a number of negative covenants that limit the Company’s actions with regard to, among others,
the following: - encumbrance
or authorization to encumber its property or assets; - incurrence
of indebtedness, in certain specified cases; - sale of the
Company’s assets related to its main business; - carrying
out of transactions with shareholders or related companies; - making certain
payments (including, among others, dividends, purchases of edenor
ii. Suspension of Covenants: Certain negative covenants
stipulated in the terms and conditions of the Corporate Notes will be suspended or adapted if: - the Company’s
long-term debt rating is raised to Investment Grade, or the Company’s Debt Ratio is equal to or lower than 3. - If the Company
subsequently losses its Investment Grade rating or its Debt Ratio is higher than 3, as applicable, the suspended negative covenants
will be once again in effect. At the date of issuance
of these financial statements, the previously mentioned ratios have been complied with. In fiscal year 2019, the
Company repurchased at market prices, in successive transactions, “Fixed Rate Class 9 Par Corporate Notes” due 2022,
for an amount of USD 29.1 million nominal value.

26. Salaries and social securit

26. Salaries and social security taxes payable12 Months Ended
Dec. 31, 2019
Salaries And Social Security Taxes Payable
Salaries and social security taxes payablea.
Salaries and social security taxes payable
12.31.19 12.31.18
Non-current
Early retirements payable 39,495 22,887
Seniority-based bonus 201,075 227,353
Total non-current 240,570 250,240
Current
Salaries payable and provisions 2,104,368 2,428,861
Social security payable 274,583 232,403
Early retirements payable 28,101 15,759
Total current 2,407,052 2,677,023 The carrying amount of
the Company’s salaries and social security taxes payable approximates their fair value. b.
Salaries and social security taxes charged to profit or loss
2019 2018 2017
Salaries 6,299,020 6,668,287 7,530,793
Social security taxes 2,449,619 2,593,223 2,928,640
Total salaries and social security taxes 8,748,639 9,261,510 10,459,433 Early retirements payable
correspond to individual optional agreements. After employees reach a specific age, the Company may offer them this option. The
related accrued liability represents future payment obligations, which, as of December 31, 2019 and 2018, amount to $ 28.1 million
and $ 15.8 million (current) and $ 39.5 million and $ 22.9 million (non-current), respectively. The seniority-based bonus
included in collective bargaining agreements in effect consists of a bonus to be granted to personnel with a certain amount of
years of service. As of December 31, 2019 and 2018, the related liabilities amount to $ 201.1 million and $ 227.4 million, respectively. As of December 31, 2019
and 2018, the number of employees amounts to 4,777 and 4,922, respectively.

27. Benefit plans

27. Benefit plans12 Months Ended
Dec. 31, 2019
Benefit Plans
Benefit plansThe defined benefit plans
granted to Company employees consist of a bonus for all the employees who have the necessary years of service and have made the
required contributions to retire under ordinary retirement plans. The amounts and conditions
vary depending on the collective bargaining agreement and for non-unionized personnel.
12.31.19 12.31.18
Non-current 523,918 592,165
Current 51,119 49,770
Total Benefit plans 575,037 641,935 The detail of the benefit
plan obligations as of December 31, 2019 and 2018 is as follows:
12.31.19 12.31.18
Benefit payment obligations at beginning of year 641,935 805,970
Current service cost 110,250 50,596
Interest cost 151,819 121,946
Actuarial losses 7,328 8,670
Result from exposure to inflation for the year (291,613) (260,131)
Benefits paid to participating employees (44,682) (85,116)
Benefit payment obligations at end of year 575,037 641,935 As of December 31, 2019
and 2018, the Company does not have any assets related to post-retirement benefit plans. The detail of the charge
recognized in the Statement of Comprehensive Income is as follows:
12.31.19 12.31.18 12.31.17
Cost 110,250 50,596 65,352
Interest 151,819 121,946 195,217
Actuarial results - Other comprehensive loss 7,328 8,670 (34,166)
269,397 181,212 226,403 The actuarial assumptions
used are based on market interest rates for Argentine government bonds, past experience, and the Company Management’s best
estimate of future economic conditions. Changes in these assumptions may affect the future cost of benefits and obligations. The
main assumptions used are as follow:
12.31.19 12.31.18 12.31.17
Discount rate 5% 5% 5%
Salary increase 1% 1% 1%
Inflation 31% 31% 18% Sensitivity analysis:
12.31.19
Discount Rate: 4%
Obligation 631,436
Variation 56,399
10%
Discount Rate: 6%
Obligation 527,057
Variation (47,980)
(8%)
Salary Increase : 0%
Obligation 526,485
Variation (48,552)
(8%)
Salary Increase: 2%
Obligation 631,321
Variation 56,284
10% The expected payments
of benefits are as follow:
In 2020 In 2021 In 2022 In 2023 In 2024 Between 2025 to 2029
At December 31, 2019
Benefit payment obligations 51,119 9,117 9,499 10,507 3,011 12,763 Estimates based on actuarial
techniques imply the use of statistical tools, such as the so-called demographic tables used in the actuarial valuation of the
Company’s active personnel. In order to determine
the mortality of the Company’s active personnel, the “1971 Group Annuity Mortality” table has been used. In general,
a mortality table shows for each age group the probability that a person in any such age group will die before reaching a predetermined
age. Male and female mortality tables are elaborated separately inasmuch as men and women’s mortality rates are substantially
different. In order to estimate total
and permanent disability due to any cause, 80% of the “1985 Pension Disability Study” table has been used. In order to estimate the
probability that the Company’s active personnel will leave the Company or stay therein, the “ESA 77” table has
been used. Liabilities related to
the above-mentioned benefits have been determined taking into consideration all the rights accrued by the beneficiaries of the
plans through the closing date of the year ended December 31, 2019. These benefits do not
apply to key management personnel.

28. Income tax _ deferred tax

28. Income tax / deferred tax12 Months Ended
Dec. 31, 2019
Income Tax Deferred Tax
Income tax / deferred taxThe analysis of deferred
tax assets and liabilities is as follows:
12.31.18 Result from exposure to inflation Charged to profit and loss Charged to other comprenhensive income 12.31.19
Deferred tax assets
Trade receivables and other receivables 684,433 (239,331) 108,892 - 553,994
Trade payables and other payables 3,005,838 (1,051,076) (1,353,250) - 601,512
Salaries and social security taxes payable 76,023 (26,584) 64,099 - 113,538
Benefit plans 162,972 (56,988) - 2,198 108,182
Tax liabilities 24,035 (8,404) 1,990 - 17,621
Provisions 531,827 (185,968) 326,742 - 672,601
Deferred tax asset 4,485,128 (1,568,351) (851,527) 2,198 2,067,448
Deferred tax liabilities:
Property, plant and equipment (16,527,448) 5,779,286 (8,895,157) - (19,643,319)
Financial assets at fair value through profit or loss (326,726) 114,249 4,305 - (208,172)
Borrowings (6,836) 2,390 989 - (3,457)
Tax inflation adjustment - - (2,267,465) - (2,267,465)
Deferred tax liability (16,861,010) 5,895,925 (11,157,328) - (22,122,413)
Net deferred tax liabilities (12,375,882) 4,327,574 (12,008,855) 2,198 (20,054,965)
12.31.17 Result from exposure to inflation Charged to profit and loss Charged to other comprenhensive income 12.31.18
Deferred tax assets
Tax loss carryforward 82,716 (82,716) - - -
Inventories 20,689 (13,938) (6,751) - -
Trade receivables and other receivables 739,735 (570,525) 515,223 - 684,433
Trade payables and other payables 653,015 1,165,031 1,187,792 - 3,005,838
Salaries and social security taxes payable (147,331) 200,559 22,795 - 76,023
Benefit plans 336,931 (198,056) 21,497 2,600 162,972
Tax liabilities 85,953 (66,952) 5,034 - 24,035
Provisions (840,005) 1,161,083 210,749 - 531,827
Deferred tax asset 931,703 1,594,486 1,956,339 2,600 4,485,128
Deferred tax liabilities:
Property, plant and equipment (11,481,171) 1,388,776 (6,435,053) - (16,527,448)
Financial assets at fair value through profit or loss (593,775) 576,433 (309,384) - (326,726)
Borrowings (66,819) 58,411 1,572 - (6,836)
Deferred tax liability (12,141,765) 2,023,620 (6,742,865) - (16,861,010)
Net deferred tax liabilities (11,210,062) 3,618,106 (4,786,526) 2,600 (12,375,882)
12.31.16 Result from exposure to inflation Charged to profit and loss Charged to other comprenhensive income 12.31.17
Deferred tax assets
Tax loss carryforward 9,472 (3,057) 76,301 - 82,716
Inventories 11,564 (3,732) 12,857 - 20,689
Trade receivables and other receivables 315,186 (101,728) 526,277 - 739,735
Trade payables and other payables 2,551,061 (823,369) (1,074,677) - 653,015
Salaries and social security taxes payable 55,628 (17,954) (185,005) - (147,331)
Benefit plans 237,974 (76,807) 186,860 (11,096) 336,931
Tax liabilities 35,724 (11,530) 61,759 - 85,953
Provisions 341,132 (110,102) (1,071,035) - (840,005)
Deferred tax asset 3,557,741 (1,148,279) (1,466,663) (11,096) 931,703
Deferred tax liabilities:
Property, plant and equipment (15,038,537) 4,656,085 (1,098,719) - (11,481,171)
Financial assets at fair value through profit or loss (91,618) 29,570 (531,727) - (593,775)
Borrowings (19,104) 6,166 (53,881) - (66,819)
Deferred tax liability (15,149,259) 4,691,821 (1,684,327) - (12,141,765)
Net deferred tax liabilities (11,591,518) 3,543,542 (3,150,990) (11,096) (11,210,062)
12.31.19 12.31.18
Deferred tax assets:
To be recover in less than 12 months 2,066,726 1,567,287
To be recover in more than 12 months 723 2,918,158
Deferred tax asset 2,067,449 4,485,445
Deferred tax liabilities:
To be recover in less than 12 months (22,121,773) (16,453,585)
To be recover in more than 12 months (641) (407,742)
Deferred tax liability (22,122,414) (16,861,327)
Net deferred tax liabilities (20,054,965) (12,375,882) The detail of the income
tax expense for the year includes two effects: (i) the current tax for the year payable in accordance with the tax legislation
applicable to the Company; (ii) the effect of applying the deferred tax method which recognizes the effect of the temporary differences
arising from the valuation of assets and liabilities for accounting and tax purposes. The detail of the income
tax expense is as follows:
2019 2018 2017
Deferred tax (7,681,281) (1,168,420) 392,552
Current tax (2,904,191) (1,713,587) (1,169,638)
Difference between provision and tax return (88,376) (4,864) (7,227)
Income tax expense (10,673,848) (2,886,871) (784,313)
Note 2019 2018 2017
Profit for the period before taxes 22,807,987 9,495,085 8,596,806
Applicable tax rate 30% 30% 35%
Loss for the period at the tax rate (6,842,396) (2,848,526) (3,008,882)
Gain from interest in joint ventures 124 861 (9)
Non-taxable income (1,021,032) (1,209,002) 1,565,827
Adjustment effect on tax inflation 4.16 (2,805,112) - -
Change in the income tax rate (1) - 1,174,660 665,978
Difference between provision and tax return (12,230) (4,864) (7,227)
Other 6,798 - -
Income tax expense (10,673,848) (2,886,871) (784,313) (1)
Effect on deferred tax assets and liabilities in accordance with the tax reform of 2017 and Law 27,430. The income tax payable, net of withholdings is detailed
below.
12.31.19 12.31.18
Provision of income tax payable 2,904,191 1,713,587
Tax withholdings (934,780) (764,324)
Total income tax payable 1,969,411 949,263

29. Tax liabilities

29. Tax liabilities12 Months Ended
Dec. 31, 2019
Tax Liabilities
Tax liabilities12.31.19 12.31.18
Non-current
Current
Provincial, municipal and federal contributions and taxes 179,024 200,586
VAT payable 1,302,042 634,374
Tax withholdings 147,062 195,474
SUSS withholdings 8,431 11,433
Municipal taxes 137,772 163,175
Tax regularization plan - 584
Total Current 1,774,331 1,205,626

30. Provisions

30. Provisions12 Months Ended
Dec. 31, 2019
Provisions [abstract]
ProvisionsNon-current liabilities Current liabilities
Contingencies
At 12.31.18 1,645,569 288,218
Increases 1,239,577 127,655
Decreases (20,596) (77,473)
Result from exposure to inflation for the year (801,947) (124,564)
At 12.31.19 2,062,603 213,836
At 12.31.17 1,357,972 293,482
Increases 725,897 387,547
Decreases (131,722) (368,410)
Result from exposure to inflation for the year (306,578) (24,401)
At 12.31.18 1,645,569 288,218

31. Revenue from sales

31. Revenue from sales12 Months Ended
Dec. 31, 2019
Revenue From Sales
Revenue from sales2019 2018 2017
Sales of electricity 89,573,118 85,633,978 60,477,324
Right of use on poles 283,459 292,732 326,400
Connection charges 60,898 78,584 75,915
Reconnection charges 26,319 34,634 17,691
Total Revenue from sales 89,943,794 86,039,928 60,897,330

32. Expenses by nature

32. Expenses by nature12 Months Ended
Dec. 31, 2019
Expenses By Nature
Expenses by natureExpenses by nature at 12.31.19
Description Transmission and distribution expenses Selling expenses Administrative expenses Total
Salaries and social security taxes 6,366,146 1,045,979 1,336,514 8,748,639
Pension plans 190,700 31,333 40,036 262,069
Communications expenses 82,714 369,899 17,005 469,618
Allowance for the impairment of trade and other receivables - 1,354,401 - 1,354,401
Supplies consumption 1,615,876 - 114,419 1,730,295
Leases and insurance - 233 226,040 226,273
Security service 237,100 42,394 92,826 372,320
Fees and remuneration for services 2,557,043 1,618,073 1,363,582 5,538,698
Depreciation of right-of-use asset 16,515 33,030 114,571 164,116
Public relations and marketing - 41,370 - 41,370
Advertising and sponsorship - 21,312 - 21,312
Reimbursements to personnel 89 196 1,050 1,335
Depreciation of property, plants and equipments 3,637,865 542,108 444,795 4,624,768
Directors and Supervisory Committee members’ fees - - 22,356 22,356
ENRE penalties 1,441,742 1,326,475 - 2,768,217
Taxes and charges - 923,650 49,786 973,436
Other 803 520 14,242 15,565
At 12.31.19 16,146,593 7,350,973 3,837,222 27,334,788 The expenses included
in the chart above are net of the Company’s own expenses capitalized in Property, plant and equipment as of December 31,
2019 for $ 1,126.5 million.
Expenses by nature at 12.31.18
Description Transmission and distribution expenses Selling expenses Administrative expenses Total
Salaries and social security taxes 6,660,458 1,194,814 1,406,238 9,261,510
Pension plans 124,085 22,259 26,198 172,542
Communications expenses 124,723 414,677 24,630 564,030
Allowance for the impairment of trade and other receivables - 1,503,107 - 1,503,107
Supplies consumption 1,215,387 - 188,558 1,403,945
Leases and insurance 815 - 277,121 277,936
Security service 210,136 3,117 197,901 411,154
Fees and remuneration for services 2,170,943 1,599,460 1,548,697 5,319,100
Public relations and marketing - 49,585 - 49,585
Advertising and sponsorship - 25,544 - 25,544
Reimbursements to personnel 92 104 766 962
Depreciation of property, plants and equipments 3,098,292 461,702 378,822 3,938,816
Directors and Supervisory Committee members’ fees - - 33,664 33,664
ENRE penalties 3,174,321 1,617,868 - 4,792,189
Taxes and charges - 920,940 249,951 1,170,891
Other 1,241 705 8,796 10,742
At 12.31.18 16,780,493 7,813,882 4,341,342 28,935,717 The expenses included
in the chart above are net of the Company’s own expenses capitalized in Property, plant and equipment as of December 31,
2018 for $ 1,570.5 million.
Expenses by nature at 12.31.17
Description Transmission and distribution expenses Selling expenses Administrative expenses Total
Salaries and social security taxes 7,685,152 1,363,903 1,410,378 10,459,433
Pension plans 191,454 33,979 35,136 260,569
Communications expenses 85,006 444,966 35,066 565,038
Allowance for the impairment of trade and other receivables - 602,186 - 602,186
Supplies consumption 1,056,706 - 168,809 1,225,515
Leases and insurance 1,004 - 279,898 280,902
Security service 200,305 2,763 217,171 420,239
Fees and remuneration for services 1,663,751 1,347,966 1,261,260 4,272,977
Public relations and marketing - - 87,125 87,125
Advertising and sponsorship - - 44,881 44,881
Reimbursements to personnel 137 85 1,272 1,494
Depreciation of property, plants and equipments 2,675,953 423,060 204,104 3,303,117
Directors and Supervisory Committee members’ fees - - 32,951 32,951
ENRE penalties 658,211 659,155 - 1,317,366
Taxes and charges - 607,796 49,223 657,019
Other 1,532 406 23,905 25,843
At 12.31.17 14,219,211 5,486,265 3,851,179 23,556,655 The expenses included
in the chart above are net of the Company’s own expenses capitalized in Property, plant and equipment as of December 31,
2017 for $ 1,337.3 million.

33. Other operating expense, ne

33. Other operating expense, net12 Months Ended
Dec. 31, 2019
Other Operating Expense Net
Other operating expense, netNote 2019 2018 2017
Other operating income
Services provided to third parties 180,142 114,593 137,321
Commissions on municipal taxes collection 128,907 118,538 78,973
Related parties 36.a 20,075 68,125 6,555
Income from non-reimbursable customer contributions 6,584 8,572 6,723
Fines to suppliers 19,910 89,002 12,011
Expense recovery 163,550 - -
Other 67,108 95,935 1,084
Total other operating income 586,276 494,765 242,667
Other operating expense
Gratifications for services (192,361) (114,199) (124,249)
Cost for services provided to third parties (97,274) (80,619) (100,316)
Severance paid (21,530) (25,595) (43,598)
Debit and Credit Tax (792,892) (860,939) (737,366)
Provision for contingencies (1,367,232) (1,113,444) (833,993)
Disposals of property, plant and equipment (63,592) (260,361) (76,614)
Other (21,797) (70,619) (22,140)
Total other operating expense (2,556,678) (2,525,776) (1,938,276)
Other operating expense, net (1,970,402) (2,031,011) (1,695,609)

34. Net finance costs

34. Net finance costs12 Months Ended
Dec. 31, 2019
Net Finance Costs
Net finance costsNote 2019 2018 2017
Financial income
Commercial interest 514,536 420,495 273,180
Financial interest 692,497 612,505 424,634
Other interest 36.a 1,937 - -
Total financial income 1,208,970 1,033,000 697,814
Finance costs
Interest and other (3,750,737) (3,055,552) (1,259,956)
Fiscal interest (5,462) (34,986) (47,904)
Commercial interest (2,988,860) (4,549,079) (2,639,989)
Bank fees and expenses (17,292) (13,084) (4,433)
Total finance costs (6,762,351) (7,652,701) (3,952,282)
Other financial results
Exchange differences (4,168,236) (4,814,183) (867,349)
Adjustment to present value of receivables (76,702) (503) (663)
Changes in fair value of financial assets 281,039 1,147,943 730,248
Net gain from the repurchase of Corporate Notes 456,884 6,980 -
Other finance costs (1) (16,299) 637,692 (121,289)
Total other finance costs (3,523,314) (3,022,071) (259,053)
Total net finance costs (9,076,695) (9,641,772) (3,513,521) (1)
As of December 31, 2018 includes $ 770.1 million related to the termination of the agreement on real estate asset.

35. Basic and diluted earnings

35. Basic and diluted earnings per share12 Months Ended
Dec. 31, 2019
Basic and diluted earnings profit per share:
Basic and diluted earnings per shareBasic The basic earnings per
share is calculated by dividing the profit attributable to the holders of the Company’s equity instruments by the weighted
average number of common shares outstanding as of December 31, 2019 and 2018, excluding common shares purchased by the Company
and held as treasury shares. The basic earnings per
share coincides with the diluted earnings per share, inasmuch as the Company has issued neither preferred shares nor Corporate
Notes convertible into common shares.
2019 2018 2017
Profit for the year attributable to the owners of the Company 12,134,139 6,608,214 7,812,493
Weighted average number of common shares outstanding 876,725 890,492 898,280
Basic and diluted profit earnings per share – in pesos 13.84 7.42 8.70 The basic and diluted
earnings per share include the effects described in Note 2.c).

36. Related-party transactions

36. Related-party transactions12 Months Ended
Dec. 31, 2019
Related party transactions [abstract]
Related-party transactionsThe following transactions were
carried out with related parties: a.
Company Concept 2019 2018 2017
PESA Impact study 337 230 -
Thermal power plant Pilar - 17,162 6,555
SACDE Reimbursement expenses 19,738 50,733 -
FIDUS SGR contribution income 1,937 - -
22,012 68,125 6,555 b.
Company Concept 2019 2018 2017
PESA Technical advisory services on financial matters (136,149) (132,393) (93,714)
SACME Operation and oversight of the electric power transmission system (83,193) (125,627) (106,040)
Salaverri, Dellatorre, Burgio y Wetzler Malbran Legal fees - - (1,347)
OSV Hiring life insurance for staff (19,646) (30,017) (29,162)
FIDUS Legal fees (777) - -
ABELOVICH, POLANO & ASOC. Legal fees (1,285) (2,014) (1,095)
(241,050) (290,051) (231,358) c.
2019 2018 2017
Salaries 441,378 373,046 385,418 The balances with related parties
are as follow: d.
12.31.19 12.31.18
Other receivables - Non current
SACME 3,895 7,168
3,895 7,168
Other receivables - Current
FIDUS SGR 25,000 38,443
SACME 766 1,178
PESA - 1,815
25,766 41,436
Trade payables
OSV - -
PESA - (12,045)
- (12,045)
Other payables
SACME (12,566) (11,642)
(12,566) (11,642) The other receivables
with related parties are not secured and do not accrue interest. No allowances have been recorded for these concepts in any of
the periods covered by these financial statements. According to IAS 24, paragraphs
25 and 26, the Company applies the exemption from the disclosure requirement of transactions with related parties when the counterpart
is a governmental agency that has control, joint control or significant influence. As of December 31, 2019, the ANSES holds Corporate
Notes of the Company due in 2022 for $ 752 million (USD 20 million nominal value). The agreements with related
parties that were in effect throughout fiscal year 2019 are detailed below: Agreement with SACME In the framework of the
regulation of the Argentine electric power sector established by Law No. 24,065 and SEE Resolution No. 61/92, and after the awarding
of the distribution areas of CABA and Greater Buenos Aires to edenor The purpose of this company
is to manage, supervise and control the operation of both the electric power generation, transmission and sub-transmission system
in the CABA and the Buenos Aires metropolitan area and the interconnections with the Argentine Interconnection System, to represent
Distribution Companies in the operational management before CAMMESA, and, in general, to carry out the necessary actions for the
proper development of its activities. The operating costs borne
by the Company in fiscal year 2019 amounted to $ 83.2 million. Agreement with PESA The agreement stipulates
the provision to the Company of technical advisory services on financial matters for a term of five years to commence as from September
19, 2015. The term of the agreement will be extended if so agreed by the parties. In consideration of these services, the Company
pays PESA an annual amount of USD 2.5 million. Any of the parties may terminate the agreement at any time by giving 60 days’
notice, without having to comply with any further obligations or paying any indemnification to the other party. Orígenes Seguros de Vida In the framework of the
process for the taking out of the mandatory life insurance for its personnel, the Company invited different insurance companies
to submit their proposals. After having been analyzed, the one submitted by OSV was selected as the best proposal. This transaction
was approved by the Company’s Board of Directors at its meeting of March 7, 2016, with the Auditing Committee’s prior
favorable opinion. The operating costs borne
by the Company in fiscal year 2019 amounted to $ 19.6 million. Fidus Sociedad de Garantía
Recíproca The Company’s Board
of Directors, at its meeting of December 4, 2018, approved the making of a contribution of funds to Fidus SGR for a sum of $ 25
million, in the capacity as protector partner and with the scope set forth in Law No. 24,467. In this manner, the Company expects
to strengthen the relationship with its suppliers by giving them the possibility of facilitating an improvement in financing conditions. SACDE Throughout 2018, by virtue
of the agreement entered into by an between the Federal Government and SACDE for the construction of the Presidente Perón
Highway’s extension, the Company received from SACDE requests for moving certain facilities owned by the Company located
in some specific places of the referred to highway’s path. As stipulated in edenor edenor

37. Safekeeping of documentatio

37. Safekeeping of documentation12 Months Ended
Dec. 31, 2019
Safekeeping Of Documentation
Safekeeping of documentationOn August 14, 2014, the
CNV issued General Resolution No. 629 which introduced changes to its regulations concerning the keeping and preservation of corporate
and accounting books and commercial documentation. In this regard, it is informed that for keeping purposes the Company has sent
its workpapers and non-sensitive information, whose periods for retention have not expired, to the warehouses of the firm Iron
Mountain Argentina S.A., located at: -
1245 Azara St. – CABA -
2163 Don Pedro de Mendoza Av. – CABA -
2482 Amancio Alcorta Av. – CABA -
Tucumán St. on the corner of El Zonda, Carlos Spegazzini City, Ezeiza, Province of Buenos Aires The detail of the documentation
stored outside the Company’s offices for keeping purposes, as well as the documentation referred to in Section 5 sub-section
a.3) of Caption I of Chapter V of Title II of the Regulations (Technical Rule No. 2013, as amended) is available at the Company’s
registered office.

38. Ordinary and Extraordinary

38. Ordinary and Extraordinary Shareholders' Meeting12 Months Ended
Dec. 31, 2019
Ordinary And Extraordinary Shareholders Meeting
Ordinary and Extraordinary Shareholders' MeetingThe Company Ordinary and
Extraordinary Shareholders’ Meeting held on April 24, 2019 resolved, among other issues, the following (1): -
To approve edenor’s -
To allocate the profit for the year ($ 4,297.5 million) and the increase recorded in unappropriated retained earnings ($ 8,919.1
million) due to the application of the inflation adjustment with retrospective effect, relating to the fiscal year ended December
31, 2018 to the: ·
Statutory reserve: $ 686.2 million; ·
Discretionary reserve: $ 12,530.4 million under the terms of section 70, 3rd paragraph, of Business Organizations Law No. 19,550. -
To approve the actions taken by the Directors and Supervisory Committee members, together with their respective remunerations; -
To appoint the authorities and the external auditors for the current fiscal year; (1)
The above-mentioned amounts are stated in nominal currency as of December 31, 2018. Moreover, on August 8,
2019, a new Ordinary Shareholders’ Meeting of the Company was held, which approved the creation of the Global Program for
the issuance of edenor Additionally, the Board
of Directors was entrusted with the task of establishing, within the fixed maximum amount, the remaining conditions of issue of
each class and/or series.

39. Termination of agreement on

39. Termination of agreement on real estate asset12 Months Ended
Dec. 31, 2019
Termination Of Agreement On Real Estate Asset
Termination of agreement on real estate assetWith regard to the real
estate asset to be constructed, acquired by the Company in November 2015, the subsequent termination of the agreement due to RDSA’s
default in August 2018, and the respective legal actions brought by the Company against the seller and the insurance company, on
September 30, 2019, the Company entered into a settlement agreement pursuant to which it receives from the insurance company as
sole, full and final compensation the sum of USD 15 million and the assignment in its favor of the insurer’s right to subrogate
to the insured’s rights for the amount paid against the policyholder (RDSA). As of December 31, 2019,
the Company has collected USD 14 million. The remaining balance will be paid in 6 quarterly installments, the first of them on
April 21, 2020. Furthermore, the claim
duly filed by the Company with the Arbitral Tribunal of the Buenos Aires Stock Exchange against RDSA in order for the latter to
refund the price paid for the undelivered real property was suspended so that the claim could be allowed in RDSA’s insolvency
proceedings. Such claim was allowed by the court hearing the case for the sum of $ 2,125.9 million. Additionally, an ancillary
proceeding for review of the amount not allowed in the resolution concerning the proof of claims process was initiated for an additional
amount of $ 895.7 million.

40. Financial Statements transl

40. Financial Statements translation into English language12 Months Ended
Dec. 31, 2019
Financial Statements Translation Into English Language
Financial Statements translation into English languageThese financial statements
are the English translation of those originally prepared by the Company in Spanish and presented in accordance with accounting
principles generally accepted in Argentina. The effects of the differences between the accounting principles generally accepted
in Argentina and the accounting principles generally accepted in the countries in which the financial statements are to be used
have not been quantified. Accordingly, the accompanying financial statements are not intended to present the financial position,
statements of comprehensive income, changes in equity or cash flows in accordance with accounting principles generally accepted
in the countries of users of the financial statements, other than Argentina.

4. Accounting policies (Policie

4. Accounting policies (Policies)12 Months Ended
Dec. 31, 2019
Accounting Policies
New accounting standards, amendments and interpretations issued by the IASB- IFRS 16 “Leases"
(published in January 2016). - IFRS 9 “Financial
instruments” (amended in October 2017). - IFRIC 23 “Uncertainty
over Income Tax treatments” (issued in June 2017). - IAS 28 “Investments
in associates and joint ventures” (amended in October 2017). - IAS 19 “Employee
benefits” (amended in February 2018). - Annual improvements
to the IFRS – 2015-2017 Cycle (issued in December 2017) Detailed below, Note 4.1.1.,
are the main issues related to the initial application of IFRS 16. The application of the other standards, amendments or interpretations
generated no impact on the Company’s results of operations or its financial position, nor did it affect the accounting policies
applicable as from January 1, 2019. Note
4.1.1 | Impacts of adoption - IFRS 16 “Leases”:
On January 13, 2016, the IASB published IFRS 16, which replaces the current guidance in IAS 17. The Company has elected to apply
IFRS 16 retrospectively using the simplified approach, in relation to the lease contracts identified as such under IAS 17, recognizing
the cumulative effect of the application as an adjustment to the opening balance of retained earnings as from January 1, 2019,
without restating the comparative information. Until December 31, 2018,
only contracts classified as financial leases under IAS 17 were capitalized by the Company, that is, contracts where the Company
had substantially all of the risks and rewards of ownership of the leased asset. At the financial lease´s inception, the Company
recorded an asset and a liability for the same value, corresponding to the leased property’s fair value, or, if lower, the
present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, were included in other
liabilities. Each lease payment was allocated between the liability and the finance cost. The finance cost was charged to profit
or loss over the lease period so as to produce a constant periodic interest rate on the remaining liability balance for each period.
Property, plant and equipment acquired under financial leases were depreciated over the asset’s useful life or, if lower,
over the lease term. Leases in which a significant portion of the risks and rewards of ownership were not transferred to the Company
were classified as operating leases. Payments made under operating leases (net of any incentive received from the lessor) were
charged to profit or loss on a straight-line basis over the lease period. The rest of the identified
lease commitments correspond to non-significant contracts ending within 12 months of the date of initial application, which continue
to be recognized by the Company on a straight-line basis. As of the adoption date,
the Company has maintained the recorded book value for right-of-use assets and lease liabilities which were classified as finance
leases under IAS 17. Accounting
standards, amendments and interpretations effective as from January 1, 2020 - IFRS 3 “Business
combinations”, amended in October 2018. It clarifies the definition of a business in order to facilitate its identification
in the framework of a business combination as opposed to an acquisition of a group of assets. It is mandatorily effective for annual
periods beginning on or after January 1, 2020. - IAS 1 “Presentation
of financial statements” and IAS 8 “Accounting policies” (amended in October 2018). The amendment clarifies the
definition of “material” for ease of understanding. It is mandatorily effective for annual periods beginning on or
after January 1, 2020. - IFRS 17 “Insurance
Contracts”, published in May 2017. It replaces IFRS 4 - an interim standard issued in 2004 that allowed entities to account
for insurance contracts using their local accounting requirements, resulting in multiple application approaches. IFRS 17 establishes
the principles for the recognition, measurement, presentation, and disclosure of insurance contracts, and applies to annual periods
beginning on or after January 1, 2021, with early adoption permitted if entities also apply IFRS 9 and IFRS 15. The Company is currently
analyzing the impact of these new standards and amendments; nevertheless, it estimates that the application thereof will have no
impact on the Company’s results of operations or its financial position.
Property, plant and equipmentAdditions have been valued
at acquisition cost restated to reflect the effects of inflation, net of the related accumulated depreciation. Depreciation has
been calculated by applying the straight-line method over the remaining useful life of the assets, which was determined on the
basis of engineering studies. Subsequent costs (major
maintenance and reconstruction costs) are either included in the value of the assets or recognized as a separate asset, only if
it is probable that the future benefits associated with the assets will flow to the Company, being it possible as well that the
costs of the assets may be measured reliably and the investment will improve the condition of the asset beyond its original state.
The other maintenance and repair expenses are recognized in profit or loss in the year in which they are incurred. In accordance with the
Concession Agreement, the Company may not pledge the assets used in the provision of the public service nor grant any other security
interest thereon in favor of third parties, without prejudice to the Company’s right to freely dispose of those assets which
in the future may become inadequate or unnecessary for such purpose. This prohibition does not apply in the case of security interests
granted over an asset at the time of its acquisition and/or construction as collateral for payment of the purchase and/or installation
price. The residual value and
the remaining useful lives of the assets are reviewed and adjusted, if appropriate, at the end of each fiscal year (reporting period). Land is not depreciated. Facilities in service:
between 30 and 50 years Furniture, tools and equipment:
between 5 and 20 years Construction in process
is valued based on the degree of completion and is recorded at cost restated to reflect the effects of inflation less any impairment
loss, if applicable. Cost includes expenses attributable to the construction, when they are part of the cost incurred for the purposes
of acquisition, construction or production of property, plant and equipment that require considerable time until they are in condition
to be used. These assets begin to be depreciated when they are in economic condition to be used. Gains and losses on the
sale of property, plant and equipment are calculated by comparing the price collected with the carrying amount of the asset, and
are recognized within Other operating expense or Other operating income in the Statement of Comprehensive Income. The Company considers
three alternative probability-weighted scenarios and analyzes the recoverability of its long-lived assets as described in Critical
accounting estimates and judgments (Note 6.c). The valuation of property,
plant and equipment, taken as a whole, does not exceed its recoverable value, which is measured as the higher of value in use and
fair value less costs to sell at the end of the year (Note 6.c).
Interests in joint venturesThe main conceptual definitions
are as follow:
i. A joint arrangement takes place among two or more parties when they have joint control:
joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control.
ii. A joint venture is a joint arrangement whereby the parties that have joint control
of the arrangement have rights to the net assets of the arrangement. Such parties are called joint venturers.
iii. A joint operation is a joint arrangement whereby the parties that have joint control
of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. These parties are
called joint operators. The Company accounts for
its investment in joint ventures in accordance with the equity method. Under this method, the interest is initially recognized
at cost and subsequently adjusted by recognizing the Company’s share in the profit or loss obtained by the joint venture,
after acquisition date. The Company recognizes in profit or loss its share of the joint venture’s profit or loss and in other
comprehensive income its share of the joint venture’s other comprehensive income. When the Company carries
out transactions in the joint ventures, the unrealized gains and losses are eliminated in accordance with the percentage interest
held by the Company in the jointly controlled entity. The joint ventures’
accounting policies have been modified and adapted, if applicable, to ensure consistency with the policies adopted by the Company. Furthermore, taking into
account that the interests in joint ventures are not regarded as significant balances, the disclosures required under IFRS 12 have
not been made.
Revenue recognitiona.
Revenue from sales Revenue is measured at
the fair value of the consideration collected or to be collected, taking into account the estimated amount of any discount, thus
determining the net amounts. Revenue from the electricity
supplied by the Company to low-income areas and shantytowns is recognized to the extent that a renewal of the Framework Agreement
is formalized for the period in which the service was rendered. At the date of issuance of these financial statements, the Company
is managing the extensions to the Framework Agreement with the National and Provincial States, as the case may be. (Note
2.e). Revenue from operations
is recognized on an accrual basis and derives mainly from electricity distribution. Such revenue includes electricity supplied,
whether billed or unbilled, at the end of each year, which has been valued on the basis of applicable tariffs. The Company recognizes
other revenues from contracts with customers in relation to connection and reconnection services, rights of use on poles and transport
of energy to other distribution companies on a monthly basis as services are rendered based on the price established in each contract.
Revenues are not adjusted for the effect of financing components as sales’ payments are not deferred over time, which is
consistent with market practice. The aforementioned revenue
from operations was recognized when all of the following conditions were met: 1.
the entity transferred to the buyer the significant risks and rewards; 2.
the amount of revenue was measured reliably; 3.
it is probable that the economic benefits associated with the transaction will flow to the entity; 4.
the costs incurred or to be incurred, in respect of the transaction, were measured reliably. b.
Interest income Interest income is recognized
by applying the effective interest rate method. Interest income is recorded in the accounting on a time basis by reference to the
principal amount outstanding and the applicable effective rate. Interest income is recognized
when it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of the transaction
can be measured reliably.
Effects of the changes in foreign currency exchange ratesa.
Functional and presentation currency The information included
in the financial statements is measured using the Company’s functional currency, which is the currency of the main economic
environment in which the entity operates. The financial statements are measured in pesos (legal currency in Argentina), restated
to reflect the effects of inflation as indicated in Note 3, which is also the presentation currency. b.
Transactions and balances Foreign currency denominated
transactions and balances are translated into the functional and presentation currency using the rates of exchange prevailing at
the date of the transactions or revaluation, respectively. The gains and losses generated by foreign currency exchange differences
resulting from each transaction and from the translation of monetary items valued in foreign currency at the end of the year are
recognized in the Statement of Comprehensive Income. The foreign currency exchange
rates used are: the bid price for monetary assets, the offer price for monetary liabilities, and the specific exchange rate for
foreign currency denominated transactions.
Trade and other receivablesa. Trade receivables The receivables arising
from services billed to customers but not collected as well as those arising from services rendered but unbilled at the closing
date of each year are recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. The receivables from electricity
supplied to low-income areas and shantytowns are recognized, also in line with revenue, when the Framework Agreement has been renewed
for the period in which the service was provided. b.
Other receivables The financial assets included
in other receivables are initially recognized at fair value (generally the original billing/settlement amount) and subsequently
measured at amortized cost, using the effective interest rate method, and when significant, adjusted by the time value of money.
The Company records impairment allowances when there is objective evidence that the Company will not be able to collect all the
amounts owed to it in accordance with the original terms of the receivables. The rest of other receivables
are initially recognized at the amount paid.
InventoriesInventories are valued
at the lower of acquisition cost restated to reflect the effects of inflation and net realizable value. They are valued based
on the purchase price, import duties (if applicable), and other taxes (that are not subsequently recovered by tax authorities),
and other costs directly attributable to the acquisition of those assets. Cost is determined by
applying the weighted average price (WAP) method. The Company has classified
inventories into current and non-current depending on whether they will be used for maintenance or capital expenditures and on
the period in which they are expected to be used. The non-current portion of inventories is disclosed in the “Property, plant
and equipment” account. The valuation of inventories,
taken as a whole, does not exceed their recoverable value at the end of each year.
Financial assetsNote
4.8.1 | Classification The Company classifies
financial assets into the following categories: those measured at amortized cost and those subsequently measured at fair value.
This classification depends on whether the financial asset is an investment in a debt or an equity instrument. In order for a financial
asset to be measured at amortized cost, the two conditions described in the following paragraph must be met. All other financial
assets are measured at fair value. IFRS 9 requires that all investments in equity instruments be measured at fair value. a.
Financial assets at amortized cost Financial assets are measured
at amortized cost if the following conditions are met:
i. the objective of the Company’s business model is to hold the assets to collect
the contractual cash flows; and
ii. the contractual terms give rise, on specified dates, to cash flows that are solely
payments of principal and interest on principal. b.
Financial assets at fair value If any of the above-detailed
conditions is not met, financial assets are measured at fair value through profit or loss. All investments in equity
instruments are measured at fair value. For those investments that are not held for trading, the Company may irrevocably elect
at the time of their initial recognition to present the changes in the fair value in other comprehensive income. The Company’s
decision was to recognize the changes in fair value in profit or loss. Note
4.8.2 | Recognition and measurement The regular way purchase
or sale of financial assets is recognized on the trade date, i.e. the date on which the Company agrees to acquire or sell the asset.
Financial assets are derecognized when the rights to receive the cash flows from the investments have expired or been transferred
and the Company has transferred substantially all the risks and rewards of the ownership of the assets. Financial assets are initially
recognized at fair value plus, in the case of financial assets not measured at fair value through profit or loss, transaction costs
that are directly attributable to the acquisition thereof. The gains or losses generated
by investments in debt instruments that are subsequently measured at fair value and are not part of a hedging transaction are recognized
in profit or loss. Those generated by investments in debt instruments that are subsequently measured at amortized cost and are
not part of a hedging transaction are recognized in profit or loss when the financial asset is derecognized or impaired and by
means of the amortization process using the effective interest rate method. The Company subsequently
measures all the investments in equity instruments at fair value. When it elects to present the changes in fair value in other
comprehensive income, such changes cannot be reclassified to profit or loss. Dividends arising from these investments are recognized
in profit or loss to the extent that they represent a return on the investment. The Company reclassifies
financial assets if and only if its business model to manage financial assets is changed. The expected losses, in
accordance with calculated coefficients, are detailed in Note 6.a). Note
4.8.3 | Impairment of financial assets At the end of each annual
reporting period, the Company assesses whether there is objective evidence that the value of a financial asset or group of financial
assets measured at amortized cost is impaired. The value of a financial asset or group of financial assets is impaired, and impairment
losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the
initial recognition of the asset (a “loss event”), and that loss event (or events) has an impact on the estimated future
cash flows of the financial asset or group of financial assets that can be reliably measured. Impairment tests may include
evidence that the debtors or group of debtors are undergoing significant financial difficulties, have defaulted on interest or
principal payments or made them after they had come due, the probability that they will enter bankruptcy or other financial reorganization,
and when observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in payment
terms or in the economic conditions that correlate with defaults. In the case of financial
assets measured at amortized cost, the amount of the impairment loss is measured as the difference between the asset’s carrying
amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted
at the financial asset’s original effective interest rate. The asset’s carrying amount is reduced and the amount of
the impairment loss is recognized in the Statement of Income. While cash, cash equivalents
and financial assets measured at amortized cost are also subject to the impairment requirements of IFRS 9, the identified impairment
loss is immaterial. Note
4.8.4 | Offsetting of financial instruments Financial assets and liabilities
are offset, and the net amount reported in the Statement of Financial Position, when there is a legally enforceable right to offset
the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.
Derivative financial instrumentsDerivative financial instruments
are initially recognized at fair value on the date on which the relevant contract is signed. Subsequently to the initial recognition,
they are remeasured at their fair value. The method for recognizing the resulting loss or gain depends on whether the derivative
has been designated as a hedging instrument and, if that is the case, on the nature of the item being hedged. As of December 31,
2019 and 2018, the economic impact of these transactions is recorded in the Other finance costs account of the Statement of Comprehensive
Income. As of December 31, 2019,
the economic impact of the transactions carried out in that fiscal year resulted in a loss of $ 202.1 million, which is recorded
in the Other finance costs account of the Statement of Comprehensive Income. In fiscal year 2018, the
Company did not enter into futures contracts to buy US dollars.
Cash and cash equivalentsCash and cash equivalents
include cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities
of three months or less from their acquisition date, with significant low risk of change in value.
i. Cash and banks in local currency: at nominal value.
ii. Cash and banks in foreign currency: at the exchange rates in effect at the end of
the year.
iii. Money market funds, which have been valued at the prevailing market price at the
end of the year. Those that do not qualify as cash equivalents are disclosed in the Financial assets at fair value through profit
or loss account.
EquityChanges in this account
have been accounted for in accordance with the relevant legal or statutory regulations and the decisions adopted by the shareholders’
meetings. a.
Share capital Share capital represents
issued capital, which is comprised of the contributions committed and/or made by the shareholders, represented by shares, including
outstanding shares at nominal value, restated to reflect the effects of inflation as indicated in Note 3. b.
Treasury stock The Treasury stock account
represents the nominal value of the Company’s own shares acquired by the Company, restated to reflect the effects of inflation
as indicated in Note 3. c.
Other comprehensive income Represents recognition,
at the end of the year, of the actuarial losses associated with the Company’s employee benefit plans, restated to reflect
the effects of inflation as indicated in Note 3. d.
Retained earnings Retained earnings are
comprised of profits or accumulated losses with no specific appropriation. When positive, they may be distributed, if so decided
by the Shareholders’ Meeting, to the extent that they are not subject to legal restrictions. If applicable, Retained earnings
are comprised of amounts transferred from other comprehensive income and prior year adjustments due to the application of accounting
standards, restated to reflect the effects of inflation as indicated in Note 3. CNV General Resolution
No. 593/11 provided that Shareholders in the Meetings at which they should decide upon the approval of financial statements in
which the Retained earnings account has a positive balance, must adopt an express resolution as to the allocation of such balance,
whether to dividend distribution, capitalization, setting up of reserves or a combination of these. The Company Shareholders’
Meetings have complied with the above-mentioned requirement.
Trade and other payablesa. Trade payables Trade payables are payment
obligations with suppliers for the purchase of goods and services in the ordinary course of business. Trade payables are classified
as current liabilities if payments fall due within one year or in a shorter period of time. Otherwise, they are classified as non-current
liabilities. Trade payables are initially
recognized at fair value and subsequently measured at amortized cost using the effective interest rate method. b.
Customer deposits Customer deposits are
initially recognized at the amount received and subsequently measured at amortized cost using the effective interest rate method. In accordance with the
Concession Agreement, the Company is allowed to receive customer deposits in the following cases:
i. When the power supply is requested and the customer is unable to provide evidence
of his legal ownership of the premises;
ii. When service has been suspended more than once in one-year period;
iii. When the power supply is reconnected and the Company is able to verify the illegal
use of the service (fraud).
iv. When the customer is undergoing liquidated bankruptcy or reorganization proceedings. The Company has decided
not to request customer deposits from residential tariff customers. Customer deposits may
be paid either in cash or through the customer’s bill and accrue monthly interest at a specific rate of BNA for each customer
category. When the conditions for
which the Company is allowed to receive customer deposits no longer exist, the customer’s account is credited for the principal
amount plus any interest accrued thereon, after deducting, if appropriate, any amounts receivable which the Company has with the
customer.
b. Customer contributions Refundable: c.
Other payables The financial liabilities
recorded in Other Payables, including the loans for consumption (mutuums) with CAMMESA, the Payment agreement with the ENRE, and
the advances for the execution of works, are initially recognized at fair value and subsequently measured at amortized cost. The recorded liabilities
for penalties accrued, whether imposed or not yet issued by the ENRE (Note 2.d), and other provisions are the best estimate of
the settlement value of the present obligation in the framework of IAS 37 provisions at the date of these financial statements. The balances of ENRE Penalties
and Discounts are updated in accordance with the regulatory framework applicable thereto and on the basis of the Company’s
estimate of the outcome of the renegotiation process described in Note 2.d.
BorrowingsBorrowings are initially
recognized at fair value, net of direct costs incurred in the transaction. Subsequently, they are measured at amortized cost; any
difference between the funds obtained (net of direct costs incurred in the transaction) and the amount to be paid at maturity is
recognized in profit or loss during the term of the borrowings using the effective interest rate method.
Deferred revenueNon-refundable customer
contributions ·
customer connection to the network: revenue is accrued until such connection is completed; ·
continuous provision of the electric power supply service: throughout the shorter of the useful life of the asset and the term
for the provision of the service.
Employee benefits·
Benefit plans The Company operates various
benefit plans. Usually, benefit plans establish the amount of the benefit the employee will receive at the time of retirement,
generally based on one or more factors such as age, years of service and salary. The liability recognized
in the Statement of Financial Position in respect of benefit plans is the present value of the benefit plan obligation at the closing
date of the year, together with the adjustments for past service costs and actuarial gains or losses. The benefit plan obligation
is calculated annually by independent actuaries in accordance with the projected unit credit method. The present value of the benefit
plan obligation is determined by discounting the estimated future cash outflows using actuarial assumptions about demographic and
financial variables that affect the determination of the amount of such benefits. The benefit plans are not funded. The group’s accounting
policy for benefit plans is as follow: a.
b.
·
The Company’s Share-based Compensation Plan The Company has share-based
compensation plans under which it receives services from some employees in exchange for the Company’s shares. The fair value
of the employee services received is recognized as an operating expense in the “Salaries and social security taxes”
line item. The total amount of the referred to expense is determined by reference to the fair value of the shares granted. When the employees provide
the services before the shares are granted, the fair value at the grant date is estimated in order to recognize the respective
result.
Income taxThe income tax is recognized
in profit or loss, other comprehensive income or in equity depending on the items from which it originates. The Company determines
the income tax payable by applying the current 30% rate on the estimated taxable profit. Additionally, the deferred
tax is recognized, in accordance with the liability method, on the temporary differences arising between the tax base of assets
and liabilities and their carrying amounts in the Statement of Financial Position. However, no deferred tax liability is recognized
if such difference arises from the initial recognition of goodwill, or from the initial recognition of an asset or liability other
than in a business combination, which at the time of the transaction affected neither the accounting nor the taxable profit. The deferred tax is determined
using the tax rate that is in effect at the date of the financial statements and is expected to apply when the deferred tax assets
are realized or the deferred tax liabilities are settled. Deferred tax assets and
liabilities are offset if the Company has a legally enforceable right to offset recognized amounts and when deferred tax assets
and liabilities relate to income tax levied by the same tax authority on the same taxable entity. Deferred tax assets and liabilities
are stated at their undiscounted value. Moreover, Law No. 27,430
provides for the application of the tax inflation adjustment set forth in Title VI of the Income Tax Law for the first, second
and third fiscal year as from its effective date (in 2018), if the IPC cumulative variation, calculated from the beginning to the
end of each year, exceeds fifty-five percent (55%), thirty percent (30%) and fifteen percent (15%) for fiscal years 2018, 2019
and 2020, respectively. Although as of December 31, 2018, the IPC cumulative variation did not exceed the 55% threshold for the
application of the tax inflation adjustment in that first fiscal year, as of December 31, 2019, the IPC cumulative variation for
the 12 months of the year amounted to 53.77%, which exceeds the 30% threshold fixed for the second transition year of the tax inflation
adjustment, and, therefore, the Company has applied the tax inflation adjustment in the calculation of the current and deferred
income tax provision.
LeasesUp until the previous
year, the leases of property, plant and equipment were classified as operating or finance leases in accordance with IAS 17. Payments
made on account of operating leases (net of any incentive received from the lessor) were charged to profit or loss on a straight-line
basis over the lease term. As from the application
of IFRS 16, a right-of-use asset and a lease liability are recognized for lease contracts from the date on which the leased asset
is available for use, at the present value of the payments to be made over the term of the contract, using the discount rate implicit
in the lease contract, if it can be determined, or the Company’s incremental borrowing rate. Subsequent to their initial
measurement, leases will be measured at cost less accumulated depreciation, impairment losses, and any adjustment resulting from
a new measurement of the lease liability.
Provisions and contingenciesProvisions have been recognized
in those cases in which the Company is faced with a present obligation, whether legal or constructive, that has arisen as a result
of a past event, whose settlement is expected to result in an outflow of resources, and the amount thereof can be estimated reliably. The amount recognized
as provisions is the best estimate of the expenditure required to settle the present obligation, at the end of the reporting year,
taking into account the corresponding risks and uncertainties. When a provision is measured using the estimated cash flow to settle
the present obligation, the carrying amount represents the present value of such cash flow. This present value is obtained by applying
a pre-tax discount rate that reflects market conditions, the time value of money and the specific risks of the obligation. The provisions included
in liabilities have been recorded to face contingent situations that could result in future payment obligations. To estimate the
amount of provisions and the likelihood of an outflow of resources, the opinion of the Company’s legal advisors has been
taken into account.
Balances with related partiesReceivables and payables
with related parties are initially recognized at amortized cost in accordance with the terms agreed upon by the parties involved.

5. Financial risk management (T

5. Financial risk management (Tables)12 Months Ended
Dec. 31, 2019
Financial Risk Management
Balances in foreign currencyCurrency Amount in foreign currency Exchange rate (1) Total Total
ASSETS
NON-CURRENT ASSETS
Other receivables USD - 59.890 - 1,177,257
TOTAL NON-CURRENT ASSETS - 1,177,257
CURRENT ASSETS
Other receivables USD 1,000 59.890 59,890 230,021
Financial assets at fair value through profit or loss USD 46,583 59.890 2,789,856 5,052,556
Cash and cash equivalents USD 2,010 59.890 120,379 14,416
EUR 11 67.227 739 -
TOTAL CURRENT ASSETS 2,970,864 5,296,993
TOTAL ASSETS 2,970,864 6,474,250
LIABILITIES
NON-CURRENT LIABILITIES
Borrowings USD 136,875 59.890 8,197,429 11,059,857
TOTAL NON-CURRENT LIABILITIES 8,197,429 11,059,857
CURRENT LIABILITIES
Trade payables USD 9,054 59.890 542,207 1,015,588
EUR 424 67.227 28,504 6,172
CHF 248 61.925 15,357 -
NOK 68 6.849 466 455
Borrowings USD 27,705 59.890 1,659,236 1,656,799
Other payables USD 9,086 59.890 544,161 -
TOTAL CURRENT LIABILITIES 2,789,931 2,679,014
TOTAL LIABILITIES 10,987,360 13,738,871 (1)
The exchange rates used are the BNA exchange rates in effect as of December 31, 2019 for US Dollars (USD), Euros (EUR), Swiss Francs
(CHF) and Norwegian Krones (NOK).
Exposure to currency risk12.31.19 12.31.18
Net position
US dollar (7,972,908) (7,257,994)
Euro (27,765) (6,172)
Norwegian krone (466) (455)
Swiss franc (15,357) -
Total (8,016,496) (7,264,621)
Decrease in results of operations12.31.19 12.31.18
Net position
US dollar (797,291) (725,799)
Euro (2,777) (617)
Norwegian krone (47) (46)
Swiss franc (1,536) -
Decrease in the results of operations for the year (801,651) (726,462)
Loans according to rate and currencyThe table below shows
the breakdown of the Company’s loans according to interest rate and the currency in which they are denominated:
12.31.19 12.31.18
Fixed rate:
US dollar 8,340,891 9,779,750
Subtotal loans at fixed rates 8,340,891 9,779,750
Floating rate:
US dollar 1,515,774 2,936,906
Subtotal loans at floating rates 1,515,774 2,936,906
Total loans 9,856,665 12,716,656 Based on the simulations
performed, a 1% increase in floating interest rates, with all the other variables remaining constant, would give rise to the following
decrease in the profit for the year:
12.31.19 12.31.18
Floating rate:
US dollar (3,202) (6,521)
Decrease in the results of operations for the year (3,202) (6,521) Based on the simulations
performed, a 1% decrease in floating interest rates, with all the other variables remaining constant, would give rise to the following
increase in the profit for the year:
12.31.19 12.31.18
Floating rate:
US dollar 3,202 6,521
Increase in the results of operations for the year 3,202 6,521
Analysis of non-derivative financial liabilitiesNo deadline Less than 3 months From 3 months to 1 year From 1 to 2 years From 2 to 5 years More than 5 years Total
As of December 31, 2019
Trade and other payables 767,683 15,974,799 5,967,447 208,378 5,002,288 213,096 28,133,691
Borrowings - - 1,659,236 - 8,197,429 - 9,856,665
Total 767,683 15,974,799 7,626,683 208,378 13,199,717 213,096 37,990,356
As of December 31, 2018
Trade and other payables 19,078,817 13,966,826 4,245,273 126,846 153,698 - 37,571,460
Borrowings - - 1,052,508 1,052,508 11,804,260 - 13,909,276
Total 19,078,817 13,966,826 5,297,781 1,179,354 11,957,958 - 51,480,736
Gearing ratios12.31.19 12.31.18
Total liabilities 60,321,760 70,767,270
Less: Cash and cash equivalents and Financial assets at fair value through profit or loss (3,199,473) (5,242,262)
Net debt 57,122,287 65,525,008
Total Equity 59,150,849 47,620,990
Total capital attributable to owners 116,273,136 113,145,998
Gearing ratio 49.13% 57.91%
Financial assets measured at fair valueLEVEL 1 LEVEL 2 LEVEL 3 TOTAL
At December 31, 2019
Assets
Financial assets at fair value through profit or loss:
Money market funds 2,789,831 - - 2,789,831
Cash and cash equivalents:
Money market funds 249,700 - - 249,700
Total assets 3,039,531 - - 3,039,531
Liabilities
Derivative financial instruments - 205,246 - 205,246
Total liabilities - 205,246 - 205,246
At December 31, 2018
Assets
Financial assets at fair value through profit or loss:
Government bonds 5,052,573 - - 5,052,573
Money market funds 147,236 - - 147,236
Total assets 5,199,809 - - 5,199,809
Liabilities
Derivative financial instruments - 1,591 - 1,591
Total liabilities - 1,591 - 1,591

7. Interest in joint venture (T

7. Interest in joint venture (Tables)12 Months Ended
Dec. 31, 2019
Interest In Joint Venture
Interest in joint venturesPercentage interest held Equity attributable to the owners
in capital stock and votes 12.31.19 12.31.18
SACME 50.00% 11,152 13,599

9. Property, plant and equipm_2

9. Property, plant and equipment (Tables)12 Months Ended
Dec. 31, 2019
Property, plant and equipment [abstract]
Property, plant, and equipmentLands and buildings Substations High, medium and low voltage lines Meters and Transformer chambers and platforms Tools, Furniture, vehicles, equipment, communications and advances to suppliers Construction in process Supplies and spare parts Total
At 12.31.18
Cost 2,228,765 21,173,166 58,526,862 24,217,962 4,085,114 20,620,507 300,321 131,152,697
Accumulated depreciation (374,890) (6,111,090) (18,717,354) (7,936,426) (1,945,373) - - (35,085,133)
Net amount 1,853,875 15,062,076 39,809,508 16,281,536 2,139,741 20,620,507 300,321 96,067,564
Additions 36,602 7,125 158,056 288,631 1,035,592 8,295,716 97,472 9,919,194
Disposals (51) (79) (7,400) (52,976) (3,086) - - (63,592)
Transfers 126,361 856,130 4,308,337 2,297,002 (1,120,774) (6,312,332) (154,724) -
Depreciation for the year (82,502) (751,050) (2,165,465) (1,041,807) (583,944) - - (4,624,768)
Net amount 12.31.19 1,934,285 15,174,202 42,103,036 17,772,386 1,467,529 22,603,891 243,069 101,298,398
At 12.31.19
Cost 2,391,728 22,036,421 62,735,909 26,729,242 3,999,933 22,603,891 243,069 140,740,193
Accumulated depreciation (457,443) (6,862,219) (20,632,873) (8,956,856) (2,532,404) - - (39,441,795)
Net amount 1,934,285 15,174,202 42,103,036 17,772,386 1,467,529 22,603,891 243,069 101,298,398
Lands and buildings Substations High, medium and low voltage lines Meters and Transformer chambers and platforms Tools, Furniture, vehicles, equipment, communications and advances to suppliers Construction in process Supplies and spare parts Total
At 12.31.17
Cost 2,116,247 20,714,928 56,017,555 23,137,842 3,854,001 13,404,398 139,488 119,384,459
Accumulated depreciation (315,931) (5,492,137) (17,298,877) (7,133,076) (1,403,076) - - (31,643,097)
Net amount 1,800,316 15,222,791 38,718,678 16,004,766 2,450,925 13,404,398 139,488 87,741,362
Additions 28,827 175,050 585,141 79,220 793,829 11,285,728 199,487 13,147,282
Disposals (56) (3,400) (145,751) (55,158) (677,899) - - (882,264)
Transfers 137,239 288,352 2,452,719 1,092,364 137,599 (4,069,619) (38,654) -
Depreciation for the year (112,451) (620,717) (1,801,279) (839,656) (564,713) - - (3,938,816)
Net amount 12.31.18 1,853,875 15,062,076 39,809,508 16,281,536 2,139,741 20,620,507 300,321 96,067,564
At 12.31.18
Cost 2,228,765 21,173,166 58,526,862 24,217,962 4,085,114 20,620,507 300,321 131,152,697
Accumulated depreciation (374,890) (6,111,090) (18,717,354) (7,936,426) (1,945,373) - - (35,085,133)
Net amount 1,853,875 15,062,076 39,809,508 16,281,536 2,139,741 20,620,507 300,321 96,067,564 (1) As of December
31, 2018, includes derecognition of real estate asset for $ 675.5 million.

10. Financial instruments (Tabl

10. Financial instruments (Tables)12 Months Ended
Dec. 31, 2019
Disclosure of detailed information about financial instruments [abstract]
Financial instruments by categoryFinancial assets at amortized cost Financial assets at fair value through profit or loss Non-financial assets Total
As of December 31, 2019
Assets
Trade receivables 12,460,070 - - 12,460,070
Other receivables 315,492 - 224 315,716
Cash and cash equivalents
Cash and Banks 159,942 - - 159,942
Money market funds - 249,700 - 249,700
Financial assets at fair value through profit or loss:
Money market funds - 2,789,831 - 2,789,831
Total 12,935,504 3,039,531 224 15,975,259
As of December 31, 2018
Assets
Trade receivables 11,667,923 - - 11,667,923
Other receivables 1,464,977 - 136,011 1,600,988
Cash and cash equivalents - -
Cash and Banks 42,453 - - 42,453
Financial assets at fair value through profit or loss:
Government bonds - 5,052,573 - 5,052,573
Money market funds - 147,236 - 147,236
Financial assets at fair value
Time deposits 1,858,726 - - 1,858,726
Total 15,034,079 5,199,809 136,011 20,369,899
Financial liabilities at amortized cost Financial liabilities at fair value through profit or loss Non-financial liabilities Total
As of December 31, 2019
Liabilities
Trade payables 13,070,359 - - 13,070,359
Other payables 7,616,248 - - 7,616,248
Borrowings 9,856,665 - - 9,856,665
Total 30,543,272 - - 30,543,272
As of December 31, 2018
Liabilities
Trade payables 22,904,340 - - 22,904,340
Other payables 488,126 - 14,191,041 14,679,167
Borrowings 12,716,656 - - 12,716,656
Total 36,109,122 - 14,191,041 50,300,163
Income, expenses, gains and losses of financial instrumentsFinancial assets at amortized cost Financial assets at fair value through profit or loss Total
As of December 31, 2019
Interest income 1,208,970 - 1,208,970
Exchange differences 608,847 1,069,587 1,678,434
Changes in fair value of financial assets - 281,039 281,039
Corporate Notes 456,884 - 456,884
Total 2,274,701 1,350,626 3,625,327
As of December 31, 2018
Interest income 1,033,000 - 1,033,000
Exchange differences 3,637,573 - 3,637,573
Bank fees and expenses (13,084) - (13,084)
Changes in fair value of financial assets - 1,147,943 1,147,943
Adjustment to present value (503) - (503)
Total 4,656,986 1,147,943 5,804,929
As of December 31, 2017
Interest income 697,814 - 697,814
Exchange differences 352,287 - 352,287
Bank fees and expenses (4,433) - (4,433)
Changes in fair value of financial assets - 730,248 730,248
Adjustment to present value (663) - (663)
Total 1,045,005 730,248 1,775,253
Financial liabilities at amortized cost Financial liabilities at fair value through profit or loss Total
As of December 31, 2019
Interest expense (6,739,597) - (6,739,597)
Exchange differences (5,846,670) - (5,846,670)
Other financial results (16,299) - (16,299)
Total (12,602,566) - (12,602,566)
As of December 31, 2018
Interest expense (7,639,617) - (7,639,617)
Other financial results (132,393) - (132,393)
Exchange differences (8,451,756) - (8,451,756)
Total (16,223,766) - (16,223,766)
As of December 31, 2017
Interest expense (3,947,849) - (3,947,849)
Other financial results (121,289) - (121,289)
Exchange differences (1,219,638) - (1,219,638)
Total (5,288,776) - (5,288,776)
Credit quality of financial assets12.31.19 12.31.18
Customers with no external credit rating:
Group 1 (i) 10,560,628 9,900,482
Group 2 (ii) 529,945 738,460
Group 3 (iii) 1,369,497 1,028,981
Total trade receivables 12,460,070 11,667,923
(i) Relates to customers with debt to become due.
(ii) Relates to customers with past due debt from 0 to 3 months.
(iii) Relates to customers with past due debt from 3 to 12 months.

11. Right-of-use asset (Tables)

11. Right-of-use asset (Tables)12 Months Ended
Dec. 31, 2019
Right-of-use Asset
Right-of-use asset12.31.19
Total right-of-use asset by leases 260,937 The development of right-of-use assets is as
follows:
12.31.19
Balance at beginning of year -
Incorporation by adoption of IFRS 16 421,991
Additions 3,062
Depreciation for the year (164,116)
Balance at end of the year 260,937

12. Other receivables (Tables)

12. Other receivables (Tables)12 Months Ended
Dec. 31, 2019
Other Receivables
Other receivablesNote 12.31.19 12.31.18
Non-current:
Financial credit 22,133 46,873
Related parties 36.d 3,895 7,168
RDSA credit 2,125,890 1,177,256
Allowance for the impairment of other receivables (1) (2,125,890) -
Total Non-current 26,028 1,231,297
Current:
Prepaid expenses 15,204 8,168
Credit for Real estate asset 39 59,890 -
Advances to suppliers 247 125,230
Security deposits 24,937 25,672
Financial credit 44,762 89,841
Receivables from electric activities 100,368 151,294
Related parties 36.d 25,766 41,436
Judicial deposits 68,616 46,872
Other 15,246 38
Allowance for the impairment of other receivables (65,348) (118,860)
Total Current 289,688 369,691 (1)
The impairment charge was charged to finance costs, net of the receivable revaluation.
Roll forward of the allowance for the impairment of other receivables12.31.19 12.31.18
Balance at beginning of year 118,860 61,309
Increase 2,156,440 83,536
Result from exposure to inlfation (42,727) (25,985)
Recovery (41,335) -
Balance at end of the year 2,191,238 118,860 (1)
The impairment charge was charged to finance costs, net of the receivable revaluation.
Aging analysis12.31.19 12.31.18
Without expiry date 118,553 74,360
Past due 50,513 53,595
Up to 3 months 91,963 198,155
From 3 to 6 months 14,437 31,392
From 6 to 9 months 11,493 7,506
From 9 to 12 months 2,729 4,683
More than 12 months 26,028 1,231,297
Total other receivables 315,716 1,600,988

13. Trade receivables (Tables)

13. Trade receivables (Tables)12 Months Ended
Dec. 31, 2019
Trade Receivables
Trade receivables12.31.19 12.31.18
Current:
Sales of electricity – Billed 7,714,038 7,108,327
Sales of electricity – Unbilled 5,792,028 5,744,779
PBA & CABA government credit 251,361 -
Framework Agreement 9,003 15,957
Fee payable for the expansion of the transportation and others 25,046 35,321
Receivables in litigation 214,884 149,400
Allowance for the impairment of trade receivables (1,546,290) (1,385,861)
Total Current 12,460,070 11,667,923
Allowance for the impairment of trade receivables12.31.19 12.31.18
Balance at beginning of the year 1,385,861 1,041,836
Change of accounting standard (Note 6) - Adjustment by model of expected losses IFRS 9 - 126,155
Balance at beginning of the year 1,385,861 1,167,991
Increase 1,365,186 1,419,571
Decrease (771,139) (598,437)
Result from exposure to inlfation (433,618) (603,264)
Balance at end of the year 1,546,290 1,385,861
Aging analysis of trade receivables12.31.19 12.31.18
Not due 9,003 15,957
Past due 1,899,443 1,767,442
Up to 3 months 10,551,624 9,884,524
Total trade receivables 12,460,070 11,667,923
Sensitivity analysis-
5% increase in the uncollectibility rate estimate
12.31.19
Contingencies 1,623,605
Variation 77,315 -
5% decrease in the uncollectibility rate estimate
12.31.19
Contingencies 1,468,975
Variation (77,315)

14. Financial assets at fair _2

14. Financial assets at fair value through profit or loss (Tables)12 Months Ended
Dec. 31, 2019
Financial assets at fair value through profit or loss [abstract]
Financial assets at fair value through profit or loss12.31.19 12.31.18
Current
Money market funds 2,789,831 147,236
Government bonds - 5,052,573
Total current 2,789,831 5,199,809

15. Financial assets at amort_2

15. Financial assets at amortized cost (Tables)12 Months Ended
Dec. 31, 2019
Financial Assets At Amortized Cost
Financial assets at amortized cost12.31.19 12.31.18
Non-current
Current
Government bonds - -
Time deposits - 1,858,726
Total Current - 1,858,726

16. Inventories (Tables)

16. Inventories (Tables)12 Months Ended
Dec. 31, 2019
Inventories Abstract
Inventories12.31.19 12.31.18
Current
Supplies and spare-parts 1,854,336 1,925,654
Advance to suppliers 72,527 11,544
Total inventories 1,926,863 1,937,198

17. Cash and cash equivalents (

17. Cash and cash equivalents (Tables)12 Months Ended
Dec. 31, 2019
Cash and cash equivalents [abstract]
Cash and cash equivalents12.31.19 12.31.18
Cash and banks 159,942 42,453
Money market funds 249,700 -
Total cash and cash equivalents 409,642 42,453

18. Share capital and additio_2

18. Share capital and additional paid-in capital (Tables)12 Months Ended
Dec. 31, 2019
Share Capital And Additional Paid-in Capital
Share capital and additional paid-in capitalShare capital Additional paid-in capital Total
Balance at December 31, 2016 27,982,570 282,328 28,264,898
Payment of Other reserve constitution - Share-bases compensation plan - 71,222 71,222
Balance at December 31, 2017 27,982,570 353,550 28,336,120
Payment of Other reserve constitution - Share-bases compensation plan (146) 16,441 16,295
Balance at December 31, 2018 and December 31, 2019 27,982,424 369,991 28,352,415

22. Trade payables (Tables)

22. Trade payables (Tables)12 Months Ended
Dec. 31, 2019
Trade Payables
Trade payablesNote 12.31.19 12.31.18
Non-current
Customer guarantees 213,097 216,768
Customer contributions 156,455 172,720
Funding contributions - substations 2.c - 50,628
Total Non-current 369,552 440,116
Current
Payables for purchase of electricity - CAMMESA 4,367,129 8,727,732
Provision for unbilled electricity purchases - CAMMESA 2.c 4,938,327 9,584,381
Suppliers 3,042,079 3,730,485
Advance to customer 285,042 302,135
Customer contributions 30,858 23,508
Discounts to customers 37,372 57,467
Funding contributions - substations 2.c - 26,471
Related parties 36.d - 12,045
Total Current 12,700,807 22,464,224

23. Other payables (Tables)

23. Other payables (Tables)12 Months Ended
Dec. 31, 2019
Other Payables
Other payablesNote 12.31.19 12.31.18
Non-current
ENRE penalties and discounts 2.c 3,932,272 7,838,276
Loans (mutuum) with CAMMESA 2.c - 3,509,303
Liability with FOTAE 2.c - 318,874
Payment agreements with ENRE - 57,195
Financial Lease Liability (1) 87,360 -
Total Non-current 4,019,632 11,723,648
Current
ENRE penalties and discounts 3,386,681 2,822,587
Related parties 36.d 12,566 11,642
Advances for works to be performed 6,135 20,875
Payment agreements with ENRE 48,236 100,415
Financial Lease Liability (1) 134,177 -
Other 8,821 -
Total Current 3,596,616 2,955,519
Financial lease liability12.31.19
Balance at beginning of year -
Incorporation by adoption of IFRS 16 421,991
Increase 3,062
Payments (212,403)
Exchange difference and gain on net monetary position 8,887
Balance at end of the year 221,537
Future minimum lease payments12.31.19
2020 198,910
2021 137,816
2022 3,427
Total future minimum lease payments 340,153
Future minimum collections with respect to operating assignments12.31.19 12.31.18
2019 - 266,974
2020 325,280 -
Total future minimum lease collections 325,280 266,974

24. Deferred revenue (Tables)

24. Deferred revenue (Tables)12 Months Ended
Dec. 31, 2019
Deferred Revenue
Deferred revenue12.31.19 12.31.18
Non-current
Nonrefundable customer contributions 270,091 423,539
Total Non-current 270,091 423,539
12.31.19 12.31.18
Current
Nonrefundable customer contributions 5,346 8,221
Total Current 5,346 8,221

25. Borrowings (Tables)

25. Borrowings (Tables)12 Months Ended
Dec. 31, 2019
Borrowings [abstract]
Borrowings12.31.19 12.31.18
Non-current
Corporate notes (1) 8,197,429 9,610,574
Borrowing - 1,449,283
Total non-current 8,197,429 11,059,857
Current
Interest from corporate notes 143,462 169,175
Borrowing 1,515,774 1,487,624
Total current 1,659,236 1,656,799 (1)
Net of debt issuance, repurchase and redemption expenses.
Borrowings currency denominations12.31.19 12.31.18
US dollars 9,856,665 12,716,656
9,856,665 12,716,656
Maturities of the Company's borrowings and exposure to interest rate12.31.19 12.31.18
Fixed rate
Less than 1 year 143,462 169,175
From 2 to 5 years 8,197,429 9,610,574
8,340,891 9,779,749
Floating rate
Less than 1 year 1,515,774 1,487,624
From 1 to 2 years - 1,449,283
From 2 to 5 years - -
1,515,774 2,936,907
9,856,665 12,716,656
Roll forward of the Company's borrowings12.31.19 12.31.18
Balance at beginning of the year 12,716,656 9,678,949
Proceeds from borrowings - -
Payment of borrowings' interests (1,134,828) (1,003,605)
Paid from repurchase of Corporate Notes (1,531,033) (577,437)
Payment of borrowings (1,593,024) -
Gain from repurchase of Corporate Notes (456,884) (6,980)
Exchange diference and interest accrued 6,687,379 9,432,905
Result from exposure to inlfation (4,831,601) (4,807,176)
Balance at the end of year 9,856,665 12,716,656
Debt issuedMillion of USD Million of $
Corporate Notes Class Rate Year of Maturity Debt structure at 12.31.18 Debt repurchase Debt structure at 12.31.19 At 12.31.19
Fixed Rate Par Note 9 9.75 2022 161.65 (29.08) 132.57 8,197.43
Total 161.65 (29.08) 132.57 8,197.43
Million of USD Million of $
Corporate Notes Class Rate Year of Maturity Debt structure at 12.31.17 Debt repurchase Debt structure at 12.31.18 At 12.31.18
Fixed Rate Par Note 9 9.75 2022 171.87 (10.22) 161.65 9,610.57
Total 171.87 (10.22) 161.65 9,610.57

26. Salaries and social secur_2

26. Salaries and social security taxes payable (Tables)12 Months Ended
Dec. 31, 2019
Salaries And Social Security Taxes Payable
Salaries and social security taxes payable12.31.19 12.31.18
Non-current
Early retirements payable 39,495 22,887
Seniority-based bonus 201,075 227,353
Total non-current 240,570 250,240
Current
Salaries payable and provisions 2,104,368 2,428,861
Social security payable 274,583 232,403
Early retirements payable 28,101 15,759
Total current 2,407,052 2,677,023
Salaries and social security taxes charged to profit or loss2019 2018 2017
Salaries 6,299,020 6,668,287 7,530,793
Social security taxes 2,449,619 2,593,223 2,928,640
Total salaries and social security taxes 8,748,639 9,261,510 10,459,433

27. Benefit plans (Tables)

27. Benefit plans (Tables)12 Months Ended
Dec. 31, 2019
Benefit Plans
Benefit plans12.31.19 12.31.18
Non-current 523,918 592,165
Current 51,119 49,770
Total Benefit plans 575,037 641,935
Benefit payment obligations12.31.19 12.31.18
Benefit payment obligations at beginning of year 641,935 805,970
Current service cost 110,250 50,596
Interest cost 151,819 121,946
Actuarial losses 7,328 8,670
Result from exposure to inflation for the year (291,613) (260,131)
Benefits paid to participating employees (44,682) (85,116)
Benefit payment obligations at end of year 575,037 641,935
Detail of the charge recognized in the Statement of Comprehensive Income12.31.19 12.31.18 12.31.17
Cost 110,250 50,596 65,352
Interest 151,819 121,946 195,217
Actuarial results - Other comprehensive loss 7,328 8,670 (34,166)
269,397 181,212 226,403
Actuarial assumptions12.31.19 12.31.18 12.31.17
Discount rate 5% 5% 5%
Salary increase 1% 1% 1%
Inflation 31% 31% 18%
Benefit plan sensitivity analysis12.31.19
Discount Rate: 4%
Obligation 631,436
Variation 56,399
10%
Discount Rate: 6%
Obligation 527,057
Variation (47,980)
(8%)
Salary Increase : 0%
Obligation 526,485
Variation (48,552)
(8%)
Salary Increase: 2%
Obligation 631,321
Variation 56,284
10%
Expected payments of benefitsIn 2020 In 2021 In 2022 In 2023 In 2024 Between 2025 to 2029
At December 31, 2019
Benefit payment obligations 51,119 9,117 9,499 10,507 3,011 12,763

28. Income tax _ deferred tax (

28. Income tax / deferred tax (Tables)12 Months Ended
Dec. 31, 2019
Income Tax Deferred Tax
Analysis of deferred tax assets and liabilities12.31.18 Result from exposure to inflation Charged to profit and loss Charged to other comprenhensive income 12.31.19
Deferred tax assets
Trade receivables and other receivables 684,433 (239,331) 108,892 - 553,994
Trade payables and other payables 3,005,838 (1,051,076) (1,353,250) - 601,512
Salaries and social security taxes payable 76,023 (26,584) 64,099 - 113,538
Benefit plans 162,972 (56,988) - 2,198 108,182
Tax liabilities 24,035 (8,404) 1,990 - 17,621
Provisions 531,827 (185,968) 326,742 - 672,601
Deferred tax asset 4,485,128 (1,568,351) (851,527) 2,198 2,067,448
Deferred tax liabilities:
Property, plant and equipment (16,527,448) 5,779,286 (8,895,157) - (19,643,319)
Financial assets at fair value through profit or loss (326,726) 114,249 4,305 - (208,172)
Borrowings (6,836) 2,390 989 - (3,457)
Tax inflation adjustment - - (2,267,465) - (2,267,465)
Deferred tax liability (16,861,010) 5,895,925 (11,157,328) - (22,122,413)
Net deferred tax liabilities (12,375,882) 4,327,574 (12,008,855) 2,198 (20,054,965)
12.31.17 Result from exposure to inflation Charged to profit and loss Charged to other comprenhensive income 12.31.18
Deferred tax assets
Tax loss carryforward 82,716 (82,716) - - -
Inventories 20,689 (13,938) (6,751) - -
Trade receivables and other receivables 739,735 (570,525) 515,223 - 684,433
Trade payables and other payables 653,015 1,165,031 1,187,792 - 3,005,838
Salaries and social security taxes payable (147,331) 200,559 22,795 - 76,023
Benefit plans 336,931 (198,056) 21,497 2,600 162,972
Tax liabilities 85,953 (66,952) 5,034 - 24,035
Provisions (840,005) 1,161,083 210,749 - 531,827
Deferred tax asset 931,703 1,594,486 1,956,339 2,600 4,485,128
Deferred tax liabilities:
Property, plant and equipment (11,481,171) 1,388,776 (6,435,053) - (16,527,448)
Financial assets at fair value through profit or loss (593,775) 576,433 (309,384) - (326,726)
Borrowings (66,819) 58,411 1,572 - (6,836)
Deferred tax liability (12,141,765) 2,023,620 (6,742,865) - (16,861,010)
Net deferred tax liabilities (11,210,062) 3,618,106 (4,786,526) 2,600 (12,375,882)
12.31.16 Result from exposure to inflation Charged to profit and loss Charged to other comprenhensive income 12.31.17
Deferred tax assets
Tax loss carryforward 9,472 (3,057) 76,301 - 82,716
Inventories 11,564 (3,732) 12,857 - 20,689
Trade receivables and other receivables 315,186 (101,728) 526,277 - 739,735
Trade payables and other payables 2,551,061 (823,369) (1,074,677) - 653,015
Salaries and social security taxes payable 55,628 (17,954) (185,005) - (147,331)
Benefit plans 237,974 (76,807) 186,860 (11,096) 336,931
Tax liabilities 35,724 (11,530) 61,759 - 85,953
Provisions 341,132 (110,102) (1,071,035) - (840,005)
Deferred tax asset 3,557,741 (1,148,279) (1,466,663) (11,096) 931,703
Deferred tax liabilities:
Property, plant and equipment (15,038,537) 4,656,085 (1,098,719) - (11,481,171)
Financial assets at fair value through profit or loss (91,618) 29,570 (531,727) - (593,775)
Borrowings (19,104) 6,166 (53,881) - (66,819)
Deferred tax liability (15,149,259) 4,691,821 (1,684,327) - (12,141,765)
Net deferred tax liabilities (11,591,518) 3,543,542 (3,150,990) (11,096) (11,210,062)
12.31.19 12.31.18
Deferred tax assets:
To be recover in less than 12 months 2,066,726 1,567,287
To be recover in more than 12 months 723 2,918,158
Deferred tax asset 2,067,449 4,485,445
Deferred tax liabilities:
To be recover in less than 12 months (22,121,773) (16,453,585)
To be recover in more than 12 months (641) (407,742)
Deferred tax liability (22,122,414) (16,861,327)
Net deferred tax liabilities (20,054,965) (12,375,882)
Income tax expense2019 2018 2017
Deferred tax (7,681,281) (1,168,420) 392,552
Current tax (2,904,191) (1,713,587) (1,169,638)
Difference between provision and tax return (88,376) (4,864) (7,227)
Income tax expense (10,673,848) (2,886,871) (784,313)
Note 2019 2018 2017
Profit for the period before taxes 22,807,987 9,495,085 8,596,806
Applicable tax rate 30% 30% 35%
Loss for the period at the tax rate (6,842,396) (2,848,526) (3,008,882)
Gain from interest in joint ventures 124 861 (9)
Non-taxable income (1,021,032) (1,209,002) 1,565,827
Adjustment effect on tax inflation 4.16 (2,805,112) - -
Change in the income tax rate (1) - 1,174,660 665,978
Difference between provision and tax return (12,230) (4,864) (7,227)
Other 6,798 - -
Income tax expense (10,673,848) (2,886,871) (784,313) (1)
Effect on deferred tax assets and liabilities in accordance with the tax reform of 2017 and Law 27,430.
Income tax provisions12.31.19 12.31.18
Provision of income tax payable 2,904,191 1,713,587
Tax withholdings (934,780) (764,324)
Total income tax payable 1,969,411 949,263

29. Tax liabilities (Tables)

29. Tax liabilities (Tables)12 Months Ended
Dec. 31, 2019
Tax Liabilities
Tax liabilities12.31.19 12.31.18
Non-current
Current
Provincial, municipal and federal contributions and taxes 179,024 200,586
VAT payable 1,302,042 634,374
Tax withholdings 147,062 195,474
SUSS withholdings 8,431 11,433
Municipal taxes 137,772 163,175
Tax regularization plan - 584
Total Current 1,774,331 1,205,626

30. Provisions (Tables)

30. Provisions (Tables)12 Months Ended
Dec. 31, 2019
Provisions [abstract]
ProvisionsNon-current liabilities Current liabilities
Contingencies
At 12.31.18 1,645,569 288,218
Increases 1,239,577 127,655
Decreases (20,596) (77,473)
Result from exposure to inflation for the year (801,947) (124,564)
At 12.31.19 2,062,603 213,836
At 12.31.17 1,357,972 293,482
Increases 725,897 387,547
Decreases (131,722) (368,410)
Result from exposure to inflation for the year (306,578) (24,401)
At 12.31.18 1,645,569 288,218

31. Revenue from sales (Tables)

31. Revenue from sales (Tables)12 Months Ended
Dec. 31, 2019
Revenue From Sales
Revenue from sales2019 2018 2017
Sales of electricity 89,573,118 85,633,978 60,477,324
Right of use on poles 283,459 292,732 326,400
Connection charges 60,898 78,584 75,915
Reconnection charges 26,319 34,634 17,691
Total Revenue from sales 89,943,794 86,039,928 60,897,330

32. Expenses by nature (Tables)

32. Expenses by nature (Tables)12 Months Ended
Dec. 31, 2019
Expenses By Nature
Expenses by natureExpenses by nature at 12.31.19
Description Transmission and distribution expenses Selling expenses Administrative expenses Total
Salaries and social security taxes 6,366,146 1,045,979 1,336,514 8,748,639
Pension plans 190,700 31,333 40,036 262,069
Communications expenses 82,714 369,899 17,005 469,618
Allowance for the impairment of trade and other receivables - 1,354,401 - 1,354,401
Supplies consumption 1,615,876 - 114,419 1,730,295
Leases and insurance - 233 226,040 226,273
Security service 237,100 42,394 92,826 372,320
Fees and remuneration for services 2,557,043 1,618,073 1,363,582 5,538,698
Depreciation of right-of-use asset 16,515 33,030 114,571 164,116
Public relations and marketing - 41,370 - 41,370
Advertising and sponsorship - 21,312 - 21,312
Reimbursements to personnel 89 196 1,050 1,335
Depreciation of property, plants and equipments 3,637,865 542,108 444,795 4,624,768
Directors and Supervisory Committee members’ fees - - 22,356 22,356
ENRE penalties 1,441,742 1,326,475 - 2,768,217
Taxes and charges - 923,650 49,786 973,436
Other 803 520 14,242 15,565
At 12.31.19 16,146,593 7,350,973 3,837,222 27,334,788
Expenses by nature at 12.31.18
Description Transmission and distribution expenses Selling expenses Administrative expenses Total
Salaries and social security taxes 6,660,458 1,194,814 1,406,238 9,261,510
Pension plans 124,085 22,259 26,198 172,542
Communications expenses 124,723 414,677 24,630 564,030
Allowance for the impairment of trade and other receivables - 1,503,107 - 1,503,107
Supplies consumption 1,215,387 - 188,558 1,403,945
Leases and insurance 815 - 277,121 277,936
Security service 210,136 3,117 197,901 411,154
Fees and remuneration for services 2,170,943 1,599,460 1,548,697 5,319,100
Public relations and marketing - 49,585 - 49,585
Advertising and sponsorship - 25,544 - 25,544
Reimbursements to personnel 92 104 766 962
Depreciation of property, plants and equipments 3,098,292 461,702 378,822 3,938,816
Directors and Supervisory Committee members’ fees - - 33,664 33,664
ENRE penalties 3,174,321 1,617,868 - 4,792,189
Taxes and charges - 920,940 249,951 1,170,891
Other 1,241 705 8,796 10,742
At 12.31.18 16,780,493 7,813,882 4,341,342 28,935,717
Expenses by nature at 12.31.17
Description Transmission and distribution expenses Selling expenses Administrative expenses Total
Salaries and social security taxes 7,685,152 1,363,903 1,410,378 10,459,433
Pension plans 191,454 33,979 35,136 260,569
Communications expenses 85,006 444,966 35,066 565,038
Allowance for the impairment of trade and other receivables - 602,186 - 602,186
Supplies consumption 1,056,706 - 168,809 1,225,515
Leases and insurance 1,004 - 279,898 280,902
Security service 200,305 2,763 217,171 420,239
Fees and remuneration for services 1,663,751 1,347,966 1,261,260 4,272,977
Public relations and marketing - - 87,125 87,125
Advertising and sponsorship - - 44,881 44,881
Reimbursements to personnel 137 85 1,272 1,494
Depreciation of property, plants and equipments 2,675,953 423,060 204,104 3,303,117
Directors and Supervisory Committee members’ fees - - 32,951 32,951
ENRE penalties 658,211 659,155 - 1,317,366
Taxes and charges - 607,796 49,223 657,019
Other 1,532 406 23,905 25,843
At 12.31.17 14,219,211 5,486,265 3,851,179 23,556,655

33. Other operating expense, _2

33. Other operating expense, net (Tables)12 Months Ended
Dec. 31, 2019
Other Operating Expense Net
Other operating expense, netNote 2019 2018 2017
Other operating income
Services provided to third parties 180,142 114,593 137,321
Commissions on municipal taxes collection 128,907 118,538 78,973
Related parties 36.a 20,075 68,125 6,555
Income from non-reimbursable customer contributions 6,584 8,572 6,723
Fines to suppliers 19,910 89,002 12,011
Expense recovery 163,550 - -
Other 67,108 95,935 1,084
Total other operating income 586,276 494,765 242,667
Other operating expense
Gratifications for services (192,361) (114,199) (124,249)
Cost for services provided to third parties (97,274) (80,619) (100,316)
Severance paid (21,530) (25,595) (43,598)
Debit and Credit Tax (792,892) (860,939) (737,366)
Provision for contingencies (1,367,232) (1,113,444) (833,993)
Disposals of property, plant and equipment (63,592) (260,361) (76,614)
Other (21,797) (70,619) (22,140)
Total other operating expense (2,556,678) (2,525,776) (1,938,276)
Other operating expense, net (1,970,402) (2,031,011) (1,695,609)

34. Net finance costs (Tables)

34. Net finance costs (Tables)12 Months Ended
Dec. 31, 2019
Net Finance Costs
Net finance costsNote 2019 2018 2017
Financial income
Commercial interest 514,536 420,495 273,180
Financial interest 692,497 612,505 424,634
Other interest 36.a 1,937 - -
Total financial income 1,208,970 1,033,000 697,814
Finance costs
Interest and other (3,750,737) (3,055,552) (1,259,956)
Fiscal interest (5,462) (34,986) (47,904)
Commercial interest (2,988,860) (4,549,079) (2,639,989)
Bank fees and expenses (17,292) (13,084) (4,433)
Total finance costs (6,762,351) (7,652,701) (3,952,282)
Other financial results
Exchange differences (4,168,236) (4,814,183) (867,349)
Adjustment to present value of receivables (76,702) (503) (663)
Changes in fair value of financial assets 281,039 1,147,943 730,248
Net gain from the repurchase of Corporate Notes 456,884 6,980 -
Other finance costs (1) (16,299) 637,692 (121,289)
Total other finance costs (3,523,314) (3,022,071) (259,053)
Total net finance costs (9,076,695) (9,641,772) (3,513,521) (1)
As of December 31, 2018 includes $ 770.1 million related to the termination of the agreement on real estate asset.

35. Basic and diluted earning_2

35. Basic and diluted earnings per share (Tables)12 Months Ended
Dec. 31, 2019
Basic and diluted earnings profit per share:
Basic and diluted earnings per share2019 2018 2017
Profit for the year attributable to the owners of the Company 12,134,139 6,608,214 7,812,493
Weighted average number of common shares outstanding 876,725 890,492 898,280
Basic and diluted profit earnings per share – in pesos 13.84 7.42 8.70

36. Related-party transactions

36. Related-party transactions (Tables)12 Months Ended
Dec. 31, 2019
Related party transactions [abstract]
Related party incomeCompany Concept 2019 2018 2017
PESA Impact study 337 230 -
Thermal power plant Pilar - 17,162 6,555
SACDE Reimbursement expenses 19,738 50,733 -
FIDUS SGR contribution income 1,937 - -
22,012 68,125 6,555
Related party expensesCompany Concept 2019 2018 2017
PESA Technical advisory services on financial matters (136,149) (132,393) (93,714)
SACME Operation and oversight of the electric power transmission system (83,193) (125,627) (106,040)
Salaverri, Dellatorre, Burgio y Wetzler Malbran Legal fees - - (1,347)
OSV Hiring life insurance for staff (19,646) (30,017) (29,162)
FIDUS Legal fees (777) - -
ABELOVICH, POLANO & ASOC. Legal fees (1,285) (2,014) (1,095)
(241,050) (290,051) (231,358)
Key Management personnel's remuneration2019 2018 2017
Salaries 441,378 373,046 385,418
Related party receivables and payables12.31.19 12.31.18
Other receivables - Non current
SACME 3,895 7,168
3,895 7,168
Other receivables - Current
FIDUS SGR 25,000 38,443
SACME 766 1,178
PESA - 1,815
25,766 41,436
Trade payables
OSV - -
PESA - (12,045)
- (12,045)
Other payables
SACME (12,566) (11,642)
(12,566) (11,642)

3. Basis of preparation (Detail

3. Basis of preparation (Details Narrative)12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Basis Of Preparation
Inflation rate53.77%47.66%24.79%

4. Accounting policies (Detail

4. Accounting policies (Detail Narrative)12 Months Ended
Dec. 31, 2019
Land
DisclosureOfAccountingPoliciesLineItems [Line Items]
Estimated useful livesNot depreciated
Facilities in service
DisclosureOfAccountingPoliciesLineItems [Line Items]
Estimated useful livesBetween 30 and 50 years
Furniture, tools and equipment
DisclosureOfAccountingPoliciesLineItems [Line Items]
Estimated useful livesBetween 5 and 20 years

5. Financial risk management (D

5. Financial risk management (Details) € in Thousands, kr in Thousands, SFr in Thousands, $ in Thousands, $ in ThousandsDec. 31, 2019ARS ($)$ / $$ / €$ / SFr$ / krDec. 31, 2019USD ($)$ / $$ / €$ / SFr$ / krDec. 31, 2019EUR (€)$ / $$ / €$ / SFr$ / krDec. 31, 2019CHF (SFr)$ / $$ / €$ / SFr$ / krDec. 31, 2019NOK (kr)$ / $$ / €$ / SFr$ / krDec. 31, 2018ARS ($)$ / $
SummaryOfFinancialRiskManagementLineItems [Line Items]
Exchange rate | $ / $59.8959.8959.8959.8959.8937.70
Noncurrent assets
SummaryOfFinancialRiskManagementLineItems [Line Items]
Foreign currency balance assets $ 0 $ 1,177,257
Noncurrent assets | Other receivables
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency $ 0
Exchange rate | $ / $[1]59.890 59.890 59.890 59.890 59.890
Foreign currency balance assets $ 0 1,177,257
Current assets
SummaryOfFinancialRiskManagementLineItems [Line Items]
Foreign currency balance assets $ 2,970,864 5,296,993
Current assets | Other receivables
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency $ 1,000
Exchange rate | $ / $[1]59.890 59.890 59.890 59.890 59.890
Foreign currency balance assets $ 59,890 230,021
Current assets | Financial assets at fair value through profit or loss
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency $ 46,583
Exchange rate | $ / $[1]59.890 59.890 59.890 59.890 59.890
Foreign currency balance assets $ 2,789,856 5,052,556
Current assets | Cash and cash equivalents
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency $ 2,010
Exchange rate | $ / $[1]59.890 59.890 59.890 59.890 59.890
Foreign currency balance assets $ 120,379 14,416
Current assets | Cash and cash equivalents
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency | € € 11
Exchange rate | $ / €[1]67.227 67.227 67.227 67.227 67.227
Foreign currency balance assets $ 739
Current assets | Cash and cash equivalents
SummaryOfFinancialRiskManagementLineItems [Line Items]
Foreign currency balance assets0
Total Assets
SummaryOfFinancialRiskManagementLineItems [Line Items]
Foreign currency balance assets2,970,864 6,474,250
Non-current liabilities
SummaryOfFinancialRiskManagementLineItems [Line Items]
Foreign currency balance liabilities $ 8,197,429 11,059,857
Non-current liabilities | Borrowings
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency $ 136,875
Exchange rate | $ / $[1]59.890 59.890 59.890 59.890 59.890
Foreign currency balance liabilities $ 8,197,429 11,059,857
Current liabilities
SummaryOfFinancialRiskManagementLineItems [Line Items]
Foreign currency balance liabilities $ 2,789,931 2,679,014
Current liabilities | Borrowings
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency $ 27,705
Exchange rate | $ / $[1]59.890 59.890 59.890 59.890 59.890
Foreign currency balance liabilities $ 1,659,236 1,656,799
Current liabilities | Trade payables
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency $ 9,054
Exchange rate | $ / $[1]59.890 59.890 59.890 59.890 59.890
Foreign currency balance liabilities $ 542,207 1,015,588
Current liabilities | Trade payables
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency | € € 424
Exchange rate | $ / €[1]67.227 67.227 67.227 67.227 67.227
Foreign currency balance liabilities $ 28,504 6,172
Current liabilities | Trade payables
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency | SFr SFr 248
Exchange rate | $ / SFr[1]61.925 61.925 61.925 61.925 61.925
Foreign currency balance liabilities $ 15,357 0
Current liabilities | Trade payables
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency | kr kr 68
Exchange rate | $ / kr[1]6.849 6.849 6.849 6.849 6.849
Foreign currency balance liabilities $ 466 455
Current liabilities | Other payables
SummaryOfFinancialRiskManagementLineItems [Line Items]
Amount of foreign currency $ 9,086
Exchange rate | $ / $[1]59.890 59.890 59.890 59.890 59.890
Foreign currency balance liabilities $ 544,161 0
Total Liabilities
SummaryOfFinancialRiskManagementLineItems [Line Items]
Foreign currency balance liabilities $ 10,987,360 $ 13,738,871
[1]The exchange rates used are the BNA exchange rates in effect as of December 31, 2019 for US Dollars (USD), Euros (EUR), Swiss Francs (CHF) and Norwegian Krones (NOK).

5. Financial risk management _2

5. Financial risk management (Details 1) € in Thousands, kr in Thousands, SFr in Thousands, $ in Thousands, $ in Thousands12 Months Ended
Dec. 31, 2019ARS ($)Dec. 31, 2019USD ($)Dec. 31, 2019EUR (€)Dec. 31, 2019CHF (SFr)Dec. 31, 2019NOK (kr)Dec. 31, 2018ARS ($)Dec. 31, 2018USD ($)Dec. 31, 2018EUR (€)Dec. 31, 2018CHF (SFr)Dec. 31, 2018NOK (kr)
SummaryOfFinancialRiskManagementLineItems [Line Items]
Net position assets/(liabilities) $ (8,016,496) $ (7,264,621)
US dollar
SummaryOfFinancialRiskManagementLineItems [Line Items]
Net position assets/(liabilities) $ (7,972,908) $ (7,257,994)
Euro
SummaryOfFinancialRiskManagementLineItems [Line Items]
Net position assets/(liabilities) | € € (27,765) € (6,172)
Norwegian krone
SummaryOfFinancialRiskManagementLineItems [Line Items]
Net position assets/(liabilities) | kr kr (466) kr (455)
Swiss franc
SummaryOfFinancialRiskManagementLineItems [Line Items]
Net position assets/(liabilities) | SFr SFr (15,357) SFr 0

5. Financial risk management _3

5. Financial risk management (Details 2) € in Thousands, kr in Thousands, SFr in Thousands, $ in Thousands, $ in Thousands12 Months Ended
Dec. 31, 2019ARS ($)Dec. 31, 2019USD ($)Dec. 31, 2019EUR (€)Dec. 31, 2019CHF (SFr)Dec. 31, 2019NOK (kr)Dec. 31, 2018ARS ($)Dec. 31, 2018USD ($)Dec. 31, 2018EUR (€)Dec. 31, 2018CHF (SFr)Dec. 31, 2018NOK (kr)
SummaryOfFinancialRiskManagementLineItems [Line Items]
Decrease in the results of operations for the year $ (801,651) $ (726,462)
US dollar
SummaryOfFinancialRiskManagementLineItems [Line Items]
Decrease in the results of operations for the year $ (797,291) $ (725,799)
Euro
SummaryOfFinancialRiskManagementLineItems [Line Items]
Decrease in the results of operations for the year | € € (2,777) € (617)
Norwegian krone
SummaryOfFinancialRiskManagementLineItems [Line Items]
Decrease in the results of operations for the year | kr kr (47) kr (46)
Swiss franc
SummaryOfFinancialRiskManagementLineItems [Line Items]
Decrease in the results of operations for the year | SFr SFr (1,536) SFr 0

5. Financial risk management _4

5. Financial risk management (Details 3) $ in Thousands, $ in Thousands12 Months Ended
Dec. 31, 2019USD ($)Dec. 31, 2018USD ($)Dec. 31, 2017ARS ($)
SummaryOfFinancialRiskManagementLineItems [Line Items]
Total loans $ 9,856,665 $ 12,716,656 $ 9,678,949
Decrease in the profit (loss) due to a 1% increase in floating interest rates(3,202)(6,521)
Increase in the profit (loss) due to a 1% decrease in floating interest rates3,202 6,521
US dollar
SummaryOfFinancialRiskManagementLineItems [Line Items]
Total loans9,856,665 12,716,656
Fixed rate
SummaryOfFinancialRiskManagementLineItems [Line Items]
Total loans8,340,891 9,779,750
Fixed rate | US dollar
SummaryOfFinancialRiskManagementLineItems [Line Items]
Total loans8,340,891 9,779,750
Floating rate
SummaryOfFinancialRiskManagementLineItems [Line Items]
Total loans1,515,774 2,936,906
Floating rate | US dollar
SummaryOfFinancialRiskManagementLineItems [Line Items]
Total loans1,515,774 2,936,906
Decrease in the profit (loss) due to a 1% increase in floating interest rates(3,202)(6,521)
Increase in the profit (loss) due to a 1% decrease in floating interest rates $ 3,202 $ 6,521

5. Financial risk management _5

5. Financial risk management (Details 4) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities $ 37,990,356 $ 51,480,736
No deadline
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities767,683 19,078,817
Less than 3 months
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities15,974,799 13,966,826
From 3 months to 1 year
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities7,626,683 5,297,781
From 1 to 2 years
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities208,378 1,179,354
From 2 to 5 years
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities13,199,717 11,957,958
More than 5 years
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities213,096 0
Trade and other payables
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities28,133,691 37,571,460
Trade and other payables | No deadline
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities767,683 19,078,817
Trade and other payables | Less than 3 months
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities15,974,799 13,966,826
Trade and other payables | From 3 months to 1 year
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities5,967,447 4,245,273
Trade and other payables | From 1 to 2 years
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities208,378 126,846
Trade and other payables | From 2 to 5 years
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities5,002,288 153,698
Trade and other payables | More than 5 years
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities213,096 0
Borrowings
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities9,856,665 13,909,276
Borrowings | No deadline
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities0 0
Borrowings | Less than 3 months
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities0 0
Borrowings | From 3 months to 1 year
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities1,659,236 1,052,508
Borrowings | From 1 to 2 years
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities0 1,052,508
Borrowings | From 2 to 5 years
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities8,197,429 11,804,260
Borrowings | More than 5 years
SummaryOfFinancialRiskManagementLineItems [Line Items]
Non-derivative financial liabilities $ 0 $ 0

5. Financial risk management _6

5. Financial risk management (Details 5) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Dec. 31, 2017Dec. 31, 2016
Financial Risk Management
Liabilities $ 60,321,760 $ 70,767,270
Less: cash and cash equivalents and financial assets at fair value through profit or loss(3,199,473)(5,242,262)
Net debt57,122,287 65,525,008
Total equity59,150,849 47,620,990 $ 42,738,551 $ 34,882,254
Total capital attributable to owners $ 116,273,136 $ 113,145,998
Gearing ratio49.13%57.91%

5. Financial risk management _7

5. Financial risk management (Details 6) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets $ 3,039,531 $ 5,199,809
Liabilities205,246 1,591
Derivative financial instruments
SummaryOfFinancialRiskManagementLineItems [Line Items]
Liabilities205,246 1,591
Level 1
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets3,039,531 5,199,809
Liabilities0 0
Level 1 | Derivative financial instruments
SummaryOfFinancialRiskManagementLineItems [Line Items]
Liabilities0 0
Level 2
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets0 0
Liabilities205,246 1,591
Level 2 | Derivative financial instruments
SummaryOfFinancialRiskManagementLineItems [Line Items]
Liabilities205,246 1,591
Level 3
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets0 0
Liabilities0 0
Level 3 | Derivative financial instruments
SummaryOfFinancialRiskManagementLineItems [Line Items]
Liabilities0 0
Government bonds
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets5,052,573
Government bonds | Level 1
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets5,052,573
Government bonds | Level 2
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets0
Government bonds | Level 3
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets0
Money market funds
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets2,789,831 147,236
Money market funds | Level 1
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets2,789,831 147,236
Money market funds | Level 2
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets0 0
Money market funds | Level 3
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets0 $ 0
Cash and cash equivalents
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets249,700
Cash and cash equivalents | Level 1
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets249,700
Cash and cash equivalents | Level 2
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets0
Cash and cash equivalents | Level 3
SummaryOfFinancialRiskManagementLineItems [Line Items]
Assets $ 0

5. Financial risk management _8

5. Financial risk management (Details Narrative) $ in Thousands12 Months Ended
Dec. 31, 2019ARS ($)$ / $Dec. 31, 2018ARS ($)$ / $
Financial Risk Management
Exchange rate | $ / $59.8937.70
Delinquent trade receivables $ 3,461,400 $ 3,031,000
Allowances1,546,300 1,385,900
Financial assets3,039,500 5,199,800
Receivables related to customers $ 9,000 $ 16,000

7. Interest in joint venture (D

7. Interest in joint venture (Details) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
SummaryOfInterestsInJointVenturesLineItems [Line Items]
Equity attributable to the owners $ 11,152 $ 13,599
SACME
SummaryOfInterestsInJointVenturesLineItems [Line Items]
Percentage interest held in capital stock and votes50.00%
Equity attributable to the owners $ 11,152 $ 13,599

8. Contingencies and lawsuits (

8. Contingencies and lawsuits (Details Narrative) $ in ThousandsDec. 31, 2019ARS ($)
Contingencies And Lawsuits
Legal provision $ 2,276,400

9. Property, plant and equipm_3

9. Property, plant and equipment (Details) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [line items]
Cost $ 140,740,193 $ 131,152,697 $ 119,384,459
Accumlated depreciation(39,441,795)(35,085,133)(31,643,097)
Property, plant, and equipment, beginning96,067,564 87,741,362
Additions9,919,194 13,147,282
Disposals(63,592)(882,264)
Transfers0 0
Depreciation for the period(4,624,768)(3,938,816)(3,303,117)
Property, plant, and equipment, ending101,298,398 96,067,564 87,741,362
Lands and buildings
Disclosure of detailed information about property, plant and equipment [line items]
Cost2,391,728 2,228,765 2,116,247
Accumlated depreciation(457,443)(374,890)(315,931)
Property, plant, and equipment, beginning1,853,875 1,800,316
Additions36,602 28,827
Disposals(51)(56)
Transfers126,361 137,239
Depreciation for the period(82,502)(112,451)
Property, plant, and equipment, ending1,934,285 1,853,875 1,800,316
Substations
Disclosure of detailed information about property, plant and equipment [line items]
Cost22,036,421 21,173,166 20,714,928
Accumlated depreciation(6,862,219)(6,111,090)(5,492,137)
Property, plant, and equipment, beginning15,062,076 15,222,791
Additions7,125 175,050
Disposals(79)(3,400)
Transfers856,130 288,352
Depreciation for the period(751,050)(620,717)
Property, plant, and equipment, ending15,174,202 15,062,076 15,222,791
High, medium and low voltage lines
Disclosure of detailed information about property, plant and equipment [line items]
Cost62,735,909 58,526,862 56,017,555
Accumlated depreciation(20,632,873)(18,717,354)(17,298,877)
Property, plant, and equipment, beginning39,809,508 38,718,678
Additions158,056 585,141
Disposals(7,400)(145,751)
Transfers4,308,337 2,452,719
Depreciation for the period(2,165,465)(1,801,279)
Property, plant, and equipment, ending42,103,036 39,809,508 38,718,678
Meters and transformer chambers and platforms
Disclosure of detailed information about property, plant and equipment [line items]
Cost26,729,242 24,217,962 23,137,842
Accumlated depreciation(8,956,856)(7,936,426)(7,133,076)
Property, plant, and equipment, beginning16,281,536 16,004,766
Additions288,631 79,220
Disposals(52,976)(55,158)
Transfers2,297,002 1,092,364
Depreciation for the period(1,041,807)(839,656)
Property, plant, and equipment, ending17,772,386 16,281,536 16,004,766
Tools, furniture, vehicles, equipment, communications and advances to suppliers
Disclosure of detailed information about property, plant and equipment [line items]
Cost3,999,933 4,085,114 3,854,001
Accumlated depreciation(2,532,404)(1,945,373)(1,403,076)
Property, plant, and equipment, beginning2,139,741 2,450,925
Additions1,035,592 793,829
Disposals(3,086)(677,899)
Transfers(1,120,774)137,599
Depreciation for the period(583,944)(564,713)
Property, plant, and equipment, ending1,467,529 2,139,741 2,450,925
Construction in process
Disclosure of detailed information about property, plant and equipment [line items]
Cost22,603,891 20,620,507 13,404,398
Accumlated depreciation0 0 0
Property, plant, and equipment, beginning20,620,507 13,404,398
Additions8,295,716 11,285,728
Disposals0 0
Transfers(6,312,332)(4,069,619)
Depreciation for the period0 0
Property, plant, and equipment, ending22,603,891 20,620,507 13,404,398
Supplies and spare parts
Disclosure of detailed information about property, plant and equipment [line items]
Cost243,069 300,321 139,488
Accumlated depreciation0 0 0
Property, plant, and equipment, beginning300,321 139,488
Additions97,472 199,487
Disposals0 0
Transfers(154,724)(38,654)
Depreciation for the period0 0
Property, plant, and equipment, ending $ 243,069 $ 300,321 $ 139,488

9. Property, plant and equipm_4

9. Property, plant and equipment (Details Narrative) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Property, plant and equipment [abstract]
Direct costs $ 1,126,500 $ 1,570,500

10. Financial instruments (Deta

10. Financial instruments (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost $ 12,935,504 $ 15,034,079
Financial assets at fair value through profit or loss3,039,531 5,199,809
Non-financial assets224 136,011
Financial instruments15,975,259 20,369,899
Trade receivables
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost12,460,070 11,667,923
Financial assets at fair value through profit or loss0 0
Non-financial assets0 0
Financial instruments12,460,070 11,667,923
Other receivables
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost315,492 1,464,977
Financial assets at fair value through profit or loss0 0
Non-financial assets224 136,011
Financial instruments315,716 1,600,988
Cash and banks
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost159,942 42,453
Financial assets at fair value through profit or loss0 0
Non-financial assets0 0
Financial instruments159,942 42,453
Money market funds
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost0
Financial assets at fair value through profit or loss249,700
Non-financial assets0
Financial instruments249,700
Government bonds - fair value
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost0
Financial assets at fair value through profit or loss5,052,573
Non-financial assets0
Financial instruments5,052,573
Money market funds - fair value
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost0 0
Financial assets at fair value through profit or loss2,789,831 147,236
Non-financial assets0 0
Financial instruments $ 2,789,831 147,236
Time deposits - fair value
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost1,858,726
Financial assets at fair value through profit or loss0
Non-financial assets0
Financial instruments $ 1,858,726

10. Financial instruments (De_2

10. Financial instruments (Details 1) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost $ 30,543,272 $ 36,109,122
Financial liabilities at fair value through profit or loss0 0
Non-financial liabilities0 14,191,041
Financial liabilities30,543,272 50,300,163
Trade payables
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost13,070,359 22,904,340
Financial liabilities at fair value through profit or loss0 0
Non-financial liabilities0 0
Financial liabilities13,070,359 22,904,340
Other payables
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost7,616,248 488,126
Financial liabilities at fair value through profit or loss0 0
Non-financial liabilities0 14,191,041
Financial liabilities7,616,248 14,679,167
Borrowings
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost9,856,665 12,716,656
Financial liabilities at fair value through profit or loss0 0
Non-financial liabilities0 0
Financial liabilities $ 9,856,665 $ 12,716,656

10. Financial instruments (De_3

10. Financial instruments (Details 2) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost $ 12,935,504 $ 15,034,079
Financial assets at fair value through profit or loss3,039,531 5,199,809
Financial instruments15,975,259 20,369,899
Interest income
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost1,208,970 1,033,000 $ 697,814
Financial assets at fair value through profit or loss0 0 0
Financial instruments1,208,970 1,033,000 697,814
Exchange differences
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost608,847 3,637,573 352,287
Financial assets at fair value through profit or loss1,069,587 0 0
Financial instruments1,678,434 3,637,573 352,287
Bank fees and expenses
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost(13,084)(4,433)
Financial assets at fair value through profit or loss0 0
Financial instruments(13,084)(4,433)
Changes in fair value of financial assets
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost0 0 0
Financial assets at fair value through profit or loss281,039 1,147,943 730,248
Financial instruments281,039 1,147,943 730,248
Corporate notes
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost456,884
Financial assets at fair value through profit or loss0
Financial instruments456,884
Adjustment to present value
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost(503)(663)
Financial assets at fair value through profit or loss0 0
Financial instruments(503)(663)
Total
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost2,274,701 4,656,986 1,045,005
Financial assets at fair value through profit or loss1,350,626 1,147,943 730,248
Financial instruments $ 3,625,327 $ 5,804,929 $ 1,775,253

10. Financial instruments (De_4

10. Financial instruments (Details 3) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost $ (30,543,272) $ (36,109,122)
Financial liabilities at fair value through profit or loss0 0
Financial liabilities30,543,272 50,300,163
Interest expense
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost(6,739,597)(7,639,617) $ (3,947,849)
Financial liabilities at fair value through profit or loss0 0 0
Financial liabilities(6,739,597)(7,639,617)(3,947,849)
Exchange differences
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost(5,846,670)(8,451,756)(1,219,638)
Financial liabilities at fair value through profit or loss0 0 0
Financial liabilities(5,846,670)(8,451,756)(1,219,638)
Other financial results
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost(1,299)(132,393)(121,289)
Financial liabilities at fair value through profit or loss0 0 0
Financial liabilities(1,299)(132,393)(121,289)
Total
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost(12,602,566)(16,223,766)(5,288,776)
Financial liabilities at fair value through profit or loss0 0 0
Financial liabilities $ (12,602,566) $ (16,223,766) $ (5,288,776)

10. Financial instruments (De_5

10. Financial instruments (Details 4) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about financial instruments [line items]
Trade receivables $ 12,460,070 $ 11,667,923
Group 1
Disclosure of detailed information about financial instruments [line items]
Trade receivables[1]10,560,628 9,900,482
Group 2
Disclosure of detailed information about financial instruments [line items]
Trade receivables[2]529,945 738,460
Group 3
Disclosure of detailed information about financial instruments [line items]
Trade receivables[3] $ 1,369,497 $ 1,028,981
[1]Relates to customers with debt to become due.
[2]Relates to customers with past due debt from 0 to 3 months.
[3]Relates to customers with past due debt from 3 to 12 months.

11. Right-of-use asset (Details

11. Right-of-use asset (Details) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Right-of-use Asset
Right-of-use asset, beginning $ 0
Incorporation by adoption of IFRS 16421,991
Additions3,062
Depreciation for the year(164,116) $ 0 $ 0
Right-of-use asset, ending $ 260,937 $ 0

12. Other receivables (Details)

12. Other receivables (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfOtherReceivablesLineItems [Line Items]
Non-current other receivables $ 26,028 $ 1,231,297
Current other receivables289,688 369,691
Financial credit
SummaryOfOtherReceivablesLineItems [Line Items]
Non-current other receivables2,213 46,873
Current other receivables100,368 89,841
Related parties
SummaryOfOtherReceivablesLineItems [Line Items]
Non-current other receivables3,895 7,168
Current other receivables25,766 41,436
RDSA credit
SummaryOfOtherReceivablesLineItems [Line Items]
Non-current other receivables2,125,890 1,177,256
Prepaid expenses
SummaryOfOtherReceivablesLineItems [Line Items]
Current other receivables15,204 8,168
Credit for real estate asset
SummaryOfOtherReceivablesLineItems [Line Items]
Current other receivables59,890 0
Advances to suppliers
SummaryOfOtherReceivablesLineItems [Line Items]
Current other receivables247 125,230
Security deposits
SummaryOfOtherReceivablesLineItems [Line Items]
Current other receivables24,937 25,672
Receivables from electric activities
SummaryOfOtherReceivablesLineItems [Line Items]
Current other receivables44,762 151,294
Judicial deposits
SummaryOfOtherReceivablesLineItems [Line Items]
Current other receivables68,616 46,872
Other
SummaryOfOtherReceivablesLineItems [Line Items]
Current other receivables15,246 38
Allowance for the impairment of other receivables
SummaryOfOtherReceivablesLineItems [Line Items]
Non-current other receivables[1](2,125,890)0
Current other receivables $ (65,348) $ (118,860)
[1]The impairment charge was charged to finance costs, net of the receivable revaluation.

12. Other receivables (Details

12. Other receivables (Details 1) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Other Receivables
Allowance for the impairment of other receivables, beginning $ 118,860 $ 61,309
Increase2,156,440 83,536
Result from exposure to inflation(42,727)(25,985)
Recovery(41,335)0
Allowance for the impairment of other receivables, ending $ 2,191,238 $ 118,860

12. Other receivables (Detail_2

12. Other receivables (Details 2) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfOtherReceivablesLineItems [Line Items]
Other receivables $ 315,716 $ 1,600,988
Without expiry date
SummaryOfOtherReceivablesLineItems [Line Items]
Other receivables118,553 74,360
Past due
SummaryOfOtherReceivablesLineItems [Line Items]
Other receivables50,513 53,595
Up to 3 months
SummaryOfOtherReceivablesLineItems [Line Items]
Other receivables91,963 198,155
From 3 to 6 months
SummaryOfOtherReceivablesLineItems [Line Items]
Other receivables14,437 31,392
From 6 to 9 months
SummaryOfOtherReceivablesLineItems [Line Items]
Other receivables11,493 7,506
From 9 to 12 months
SummaryOfOtherReceivablesLineItems [Line Items]
Other receivables2,729 4,683
More than 12 months
SummaryOfOtherReceivablesLineItems [Line Items]
Other receivables $ 26,028 $ 1,231,297

13. Trade receivables (Details)

13. Trade receivables (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfTradeReceivablesLineItems [Line Items]
Current trade receivables $ 12,460,070 $ 11,667,923
Sales of electricity - Billed
SummaryOfTradeReceivablesLineItems [Line Items]
Current trade receivables7,714,038 7,108,327
Sales of electricity - Unbilled
SummaryOfTradeReceivablesLineItems [Line Items]
Current trade receivables5,792,028 5,744,779
PBA & CABA government credit
SummaryOfTradeReceivablesLineItems [Line Items]
Current trade receivables251,361 0
Framework agreement
SummaryOfTradeReceivablesLineItems [Line Items]
Current trade receivables9,003 15,957
Fee payable for the expansion of the transportation and others
SummaryOfTradeReceivablesLineItems [Line Items]
Current trade receivables25,046 35,321
Receivables in litigation
SummaryOfTradeReceivablesLineItems [Line Items]
Current trade receivables214,884 149,400
Allowance for the impairment of trade receivables
SummaryOfTradeReceivablesLineItems [Line Items]
Current trade receivables $ (1,546,290) $ (1,385,861)

13. Trade receivables (Details

13. Trade receivables (Details 1) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Trade Receivables
Allowance for the impairment of trade receivables, beginning $ 1,385,861 $ 1,041,836
Change of accounting standard (Note 6) - adjustment by model of expected losses IFRS 90 126,155
Allowance for the impairment of trade receivables, beginning1,385,861 1,167,991
Increase1,365,186 1,419,571
Decrease(771,139)(598,437)
Result from exposure to inflation(433,618)(603,264)
Allowance for the impairment of trade receivables, ending $ 1,546,290 $ 1,385,861

13. Trade receivables (Detail_2

13. Trade receivables (Details 2) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfTradeReceivablesLineItems [Line Items]
Trade receivables $ 12,460,070 $ 11,667,923
Not due
SummaryOfTradeReceivablesLineItems [Line Items]
Trade receivables9,003 15,957
Past due
SummaryOfTradeReceivablesLineItems [Line Items]
Trade receivables1,899,443 1,767,442
Up to 3 months
SummaryOfTradeReceivablesLineItems [Line Items]
Trade receivables $ 10,551,624 $ 9,884,524

13. Trade receivables (Detail_3

13. Trade receivables (Details 3) $ in ThousandsDec. 31, 2019ARS ($)
5% increase in the uncollectibility rate estimate
SummaryOfTradeReceivablesLineItems [Line Items]
Contingencies $ 1,623,605
Variation77,315
5% decrease in the uncollectibility rate estimate
SummaryOfTradeReceivablesLineItems [Line Items]
Contingencies1,468,975
Variation $ (77,315)

14. Financial assets at fair _3

14. Financial assets at fair value through profit or loss (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfFinancialAssetsAtFairValueThroughProfitOrLossLineItems [Line Items]
Current $ 2,789,831 $ 5,199,809
Money market funds
SummaryOfFinancialAssetsAtFairValueThroughProfitOrLossLineItems [Line Items]
Current2,789,831 147,236
Government bonds
SummaryOfFinancialAssetsAtFairValueThroughProfitOrLossLineItems [Line Items]
Current $ 0 $ 5,052,573

15. Financial assets at amort_3

15. Financial assets at amortized cost (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfFinancialAssetsAtAmortizedCostLineItems [Line Items]
Current $ 0 $ 1,858,726
Government bonds
SummaryOfFinancialAssetsAtAmortizedCostLineItems [Line Items]
Current0 0
Time deposits
SummaryOfFinancialAssetsAtAmortizedCostLineItems [Line Items]
Current $ 0 $ 1,858,726

16. Inventories (Details)

16. Inventories (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfInventoriesLineItems [Line Items]
Inventories $ 1,926,863 $ 1,937,198
Supplies and spare-parts
SummaryOfInventoriesLineItems [Line Items]
Inventories1,854,336 1,925,654
Advance to suppliers
SummaryOfInventoriesLineItems [Line Items]
Inventories $ 72,527 $ 11,544

17. Cash and cash equivalents_2

17. Cash and cash equivalents (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfCashAndCashEquivalentsLineItems [Line Items]
Cash and cash equivalents $ 409,642 $ 42,453
Cash and banks
SummaryOfCashAndCashEquivalentsLineItems [Line Items]
Cash and cash equivalents159,942 42,453
Money market funds
SummaryOfCashAndCashEquivalentsLineItems [Line Items]
Cash and cash equivalents $ 249,700 $ 0

18. Share capital and additio_3

18. Share capital and additional paid-in capital (Details) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items]
Beginning balance $ 28,336,120 $ 28,264,898
Payment of other reserve constitution - share-bases compensation plan16,295 71,222
Ending balance28,352,415 28,336,120
Share Capital
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items]
Beginning balance27,982,570 27,982,570
Payment of other reserve constitution - share-bases compensation plan(146)0
Ending balance27,982,424 27,982,570
Additional Paid-in Capital
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items]
Beginning balance353,550 282,328
Payment of other reserve constitution - share-bases compensation plan16,441 71,222
Ending balance $ 369,991 $ 353,550

18. Share capital and additio_4

18. Share capital and additional paid-in capital (Details Narrative)Dec. 31, 2019shares
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items]
Entity Common Stock, Shares Outstanding906,455,100
Class A Common Stock
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items]
Entity Common Stock, Shares Outstanding462,292,111
Class B Common Stock
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items]
Entity Common Stock, Shares Outstanding442,210,385 [1]
Class C Common Stock
DisclosureOfShareCapitalAndAdditionalPaidinCapitalLineItems [Line Items]
Entity Common Stock, Shares Outstanding1,952,604 [2]
[1]Includes 31,380,871 and 23,111,131 treasury shares as of December 31, 2019 and 2018, respectively.
[2]Relates to the Employee Stock Ownership Program Class C shares that have not been transferred.

21. Acquisition of the Compan_2

21. Acquisition of the Company's own shares (Details Narrative) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Acquisition Of Companys Own Shares
Acquisition of own shares $ (599,150) $ (1,643,458) $ 0

22. Trade payables (Details)

22. Trade payables (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfTradePayablesLineItems [Line Items]
Noncurrent $ 369,552 $ 440,116
Current12,700,807 22,464,224
Customer guarantees
SummaryOfTradePayablesLineItems [Line Items]
Noncurrent213,097 216,768
Customer contributions
SummaryOfTradePayablesLineItems [Line Items]
Noncurrent156,455 172,720
Current30,858 23,508
Funding contributions - substations
SummaryOfTradePayablesLineItems [Line Items]
Noncurrent0 50,628
Current0 26,471
Payables for purchase of electricity - CAMMESA
SummaryOfTradePayablesLineItems [Line Items]
Current4,367,129 8,727,732
Provision for unbilled electricity purchases - CAMMESA
SummaryOfTradePayablesLineItems [Line Items]
Current4,938,327 9,584,381
Suppliers
SummaryOfTradePayablesLineItems [Line Items]
Current3,042,079 3,730,485
Advance to customer
SummaryOfTradePayablesLineItems [Line Items]
Current285,042 302,135
Discounts to customers
SummaryOfTradePayablesLineItems [Line Items]
Current37,372 57,467
Related parties
SummaryOfTradePayablesLineItems [Line Items]
Current $ 0 $ 12,045

23. Other payables (Details)

23. Other payables (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfOtherPayablesLineItems [Line Items]
Noncurrent $ 4,019,632 $ 11,723,648
Current3,596,616 2,955,519
ENRE penalties and discounts
SummaryOfOtherPayablesLineItems [Line Items]
Noncurrent3,932,272 7,838,276
Current3,386,681 2,822,587
Loans (mutuum) with CAMMESA
SummaryOfOtherPayablesLineItems [Line Items]
Noncurrent0 3,509,303
Liability with FOTAE
SummaryOfOtherPayablesLineItems [Line Items]
Noncurrent0 318,874
Payment agreements with ENRE
SummaryOfOtherPayablesLineItems [Line Items]
Noncurrent0 57,195
Current48,236 100,415
Finance lease liability
SummaryOfOtherPayablesLineItems [Line Items]
Noncurrent87,360 0
Current134,177 0
Related parties
SummaryOfOtherPayablesLineItems [Line Items]
Current12,566 11,642
Advances for works to be performed
SummaryOfOtherPayablesLineItems [Line Items]
Current6,135 20,875
Other
SummaryOfOtherPayablesLineItems [Line Items]
Current $ 8,821 $ 0

23. Other payables (Details 1)

23. Other payables (Details 1) $ in Thousands12 Months Ended
Dec. 31, 2019ARS ($)
Other Payables
Financial lease liability, beginning $ 0
Incorporation by adoption of IFRS 16421,991
Increase3,062
Payments(212,403)
Exchange difference and gain on net monetary position8,887
Financial lease liability, ending $ 221,537

23. Other payables (Details 2)

23. Other payables (Details 2) $ in ThousandsDec. 31, 2019ARS ($)
SummaryOfOtherPayablesLineItems [Line Items]
Total future minimum lease payments $ 340,153
2020
SummaryOfOtherPayablesLineItems [Line Items]
Total future minimum lease payments198,910
2021
SummaryOfOtherPayablesLineItems [Line Items]
Total future minimum lease payments137,816
2022
SummaryOfOtherPayablesLineItems [Line Items]
Total future minimum lease payments $ 3,427

23. Other payables (Details 3)

23. Other payables (Details 3) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfOtherPayablesLineItems [Line Items]
Total future minimum lease collections $ 325,280 $ 266,974
2019
SummaryOfOtherPayablesLineItems [Line Items]
Total future minimum lease collections0 266,974
2020
SummaryOfOtherPayablesLineItems [Line Items]
Total future minimum lease collections $ 325,280 $ 0

24. Deferred revenue (Details)

24. Deferred revenue (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfDeferredRevenueLineItems [Line Items]
Noncurrent $ 270,091 $ 423,539
Current5,346 8,221
Nonrefundable customer contributions
SummaryOfDeferredRevenueLineItems [Line Items]
Noncurrent270,091 423,539
Current $ 5,346 $ 8,221

25. Borrowings (Details)

25. Borrowings (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about borrowings [line items]
Non-current borrowings $ 8,197,429 $ 11,059,857
Current borrowings1,659,236 1,656,799
Corporate notes
Disclosure of detailed information about borrowings [line items]
Non-current borrowings[1]8,197,429 9,610,574
Interest from corporate notes
Disclosure of detailed information about borrowings [line items]
Current borrowings143,462 169,175
Borrowings
Disclosure of detailed information about borrowings [line items]
Non-current borrowings0 1,449,283
Current borrowings $ 1,515,774 $ 1,487,624
[1]Net of debt issuance, repurchase and redemption expenses.

25. Borrowings (Details 1)

25. Borrowings (Details 1) $ in Thousands, $ in ThousandsDec. 31, 2019USD ($)Dec. 31, 2018USD ($)Dec. 31, 2017ARS ($)
Disclosure of detailed information about borrowings [line items]
Borrowings $ 9,856,665 $ 12,716,656 $ 9,678,949
US dollar
Disclosure of detailed information about borrowings [line items]
Borrowings $ 9,856,665 $ 12,716,656

25. Borrowings (Details 2)

25. Borrowings (Details 2) $ in Thousands, $ in ThousandsDec. 31, 2019ARS ($)Dec. 31, 2019USD ($)Dec. 31, 2018ARS ($)Dec. 31, 2018USD ($)Dec. 31, 2017ARS ($)
Disclosure of detailed information about borrowings [line items]
Borrowings $ 9,856,665 $ 12,716,656 $ 9,678,949
Fixed rate
Disclosure of detailed information about borrowings [line items]
Borrowings8,340,891 9,779,750
Fixed rate | Less than 1 year
Disclosure of detailed information about borrowings [line items]
Borrowings $ 143,462 $ 169,175
Fixed rate | From 2 to 5 years
Disclosure of detailed information about borrowings [line items]
Borrowings8,197,429 9,610,574
Floating rate
Disclosure of detailed information about borrowings [line items]
Borrowings $ 1,515,774 $ 2,936,906
Floating rate | Less than 1 year
Disclosure of detailed information about borrowings [line items]
Borrowings1,487,624 1,487,624
Floating rate | From 2 to 5 years
Disclosure of detailed information about borrowings [line items]
Borrowings1,449,283 1,449,283
Floating rate | More than 5 years
Disclosure of detailed information about borrowings [line items]
Borrowings $ 0 $ 0

25. Borrowings (Details 3)

25. Borrowings (Details 3) $ in Thousands, $ in Thousands12 Months Ended
Dec. 31, 2019ARS ($)Dec. 31, 2019USD ($)Dec. 31, 2018ARS ($)Dec. 31, 2017ARS ($)
Borrowings [abstract]
Borrowings, beginning $ 12,716,656 $ 9,678,949
Proceeds from borrowings $ 0 0 $ 1,977,399
Payment of borrowings' interest(1,134,828)(1,003,605)
Paid from the repurchase of Corporate Notes(1,531,033)(577,437)
Payment of borrowings(1,593,024)0 0
Gain from the repurchase of Corporate Notes(456,884)(6,980)
Exchange difference and interest accrued6,687,379 9,432,905
Result from exposure to inflation $ (4,831,601) $ (4,807,176)
Borrowings, ending $ 9,856,665 $ 9,678,949

25. Borrowings (Details 4)

25. Borrowings (Details 4) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about borrowings [line items]
Deb structure, beginning $ 161,650 $ 171,870
Debt repurchase(29,080)(10,220)
Deb structure, ending132,570 161,650
Class 9
Disclosure of detailed information about borrowings [line items]
Deb structure, beginning161,650 171,870
Debt repurchase(29,080)(10,220)
Deb structure, ending $ 132,570 $ 161,650
Rate9.75%9.75%
Year of maturity20222022

25. Borrowings (Details Narrati

25. Borrowings (Details Narrative) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Borrowings [abstract]
Noncurrent borrowings $ 8,197,429 $ 11,059,857

26. Salaries and social secur_3

26. Salaries and social security taxes payable (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items]
Noncurrent $ 240,570 $ 250,240
Current2,407,052 2,677,023
Early retirements payable
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items]
Noncurrent39,495 22,887
Current28,101 15,759
Seniority-based bonus
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items]
Noncurrent201,075 227,353
Salaries payable and provisions
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items]
Current2,104,368 2,428,861
Social security payable
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items]
Current $ 274,583 $ 232,403

26. Salaries and social secur_4

26. Salaries and social security taxes payable (Details 1) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Dec. 31, 2017
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items]
Salaries and social security taxes $ 8,748,639 $ 9,261,510 $ 10,459,433
Salaries
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items]
Salaries and social security taxes6,299,020 6,668,287 7,530,793
Social security taxes
SummaryOfSalariesAndSocialSecurityTaxesPayableLineItems [Line Items]
Salaries and social security taxes $ 2,449,619 $ 2,593,223 $ 2,928,640

26. Salaries and social secur_5

26. Salaries and social security taxes payable (Details Narrative) $ in ThousandsDec. 31, 2019ARS ($)EmployeesDec. 31, 2018ARS ($)Employees
Salaries And Social Security Taxes Payable
Current future payment obligations $ 28,100 $ 15,800
Noncurrent future payment obligations39,500 22,900
Collective bargaining liabilities $ 201,100 $ 227,400
Number of employees | Employees4,777 4,922

27. Benefit plans (Details)

27. Benefit plans (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Benefit Plans
Non-current $ 523,918 $ 592,165
Current51,119 49,770
Total benefit plans $ 575,037 $ 641,935 $ 805,970

27. Benefit plans (Details 1)

27. Benefit plans (Details 1) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Benefit Plans
Benefit payment obligations, beginning $ 641,935 $ 805,970
Current service cost110,250 50,596 $ 65,352
Interest cost151,819 121,946 195,217
Actuarial losses7,328 8,670 (34,166)
Result from exposure to inflation for the year(291,613)(260,131)
Benefits paid to participating employees(44,682)(85,116)
Benefit payment obligations, ending $ 575,037 $ 641,935 $ 805,970

27. Benefit plans (Details 2)

27. Benefit plans (Details 2) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Benefit Plans
Cost $ 110,250 $ 50,596 $ 65,352
Interest151,819 121,946 195,217
Actuarial results - Other comprehensive loss7,328 8,670 (34,166)
Benefit plan charge $ 269,397 $ 181,212 $ 226,403

27. Benefit plans (Details 3)

27. Benefit plans (Details 3)Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Benefit Plans
Discount rate5.00%5.00%5.00%
Salary increase1.00%1.00%1.00%
Inflation31.00%31.00%18.00%

27. Benefit plans (Details 4)

27. Benefit plans (Details 4) $ in ThousandsDec. 31, 2019ARS ($)
Discount Rate 4%
SummaryOfBenefitPlansLineItems [Line Items]
Obligation $ 631,436
Variation $ 56,399
Percent10.00%
Discount Rate 6%
SummaryOfBenefitPlansLineItems [Line Items]
Obligation $ 527,057
Variation $ (47,980)
Percent(8.00%)
Salary Increase 0%
SummaryOfBenefitPlansLineItems [Line Items]
Obligation $ 526,485
Variation $ (48,552)
Percent(8.00%)
Salary Increase 2%
SummaryOfBenefitPlansLineItems [Line Items]
Obligation $ 631,321
Variation $ 56,284
Percent10.00%

27. Benefit plans (Details 5)

27. Benefit plans (Details 5) $ in ThousandsDec. 31, 2019ARS ($)
2020
SummaryOfBenefitPlansLineItems [Line Items]
Benefit payment obligations $ 51,119
2021
SummaryOfBenefitPlansLineItems [Line Items]
Benefit payment obligations9,117
2022
SummaryOfBenefitPlansLineItems [Line Items]
Benefit payment obligations9,499
2023
SummaryOfBenefitPlansLineItems [Line Items]
Benefit payment obligations10,507
2024
SummaryOfBenefitPlansLineItems [Line Items]
Benefit payment obligations3,011
2025 to 2029
SummaryOfBenefitPlansLineItems [Line Items]
Benefit payment obligations $ 12,763

28. Income tax _ deferred tax_2

28. Income tax / deferred tax (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Dec. 31, 2017Dec. 31, 2016
SummaryOfIncomeTaxDeferredTaxLineItems [Line Items]
Tax loss carryforward $ 0 $ 82,716 $ 9,472
Inventories0 20,689 11,564
Trade receivables and other receivables $ 553,994 684,433 739,735 315,186
Trade payables and other payables601,512 3,005,838 653,015 2,551,061
Salaries and social security taxes payable113,538 76,023 (147,331)55,628
Benefit plans108,182 162,972 336,931 237,974
Tax liabilities17,621 24,035 85,953 35,724
Provisions672,601 531,827 (840,005)341,132
Deferred tax asset2,067,448 4,485,128 931,703 3,557,741
Property, plant and equipment(19,643,319)(16,527,448)(11,481,171)(15,038,537)
Financial assets at fair value through profit or loss(208,172)(326,726)(593,775)(91,618)
Borrowings(3,457)(6,836)(66,819)(19,104)
Tax inflation adjustment(2,267,465)0
Deferred tax liability(22,122,413)(16,861,010)(12,141,765)(15,149,259)
Net deferred tax (liabilities) assets(20,054,965)(12,375,882)(11,210,062) $ (11,591,518)
Result from exposure to inflation
SummaryOfIncomeTaxDeferredTaxLineItems [Line Items]
Tax loss carryforward(82,716)(3,057)
Inventories(13,938)(3,732)
Trade receivables and other receivables(239,331)(570,525)(101,728)
Trade payables and other payables(1,051,076)1,165,031 (823,369)
Salaries and social security taxes payable(26,584)200,559 (17,954)
Benefit plans(56,988)(198,056)(76,807)
Tax liabilities(8,404)(66,952)(11,530)
Provisions(185,968)1,161,083 (110,102)
Deferred tax asset(1,568,351)1,594,486 (1,148,279)
Property, plant and equipment5,779,286 1,388,776 4,656,085
Financial assets at fair value through profit or loss114,249 576,433 29,570
Borrowings2,390 58,411 6,166
Tax inflation adjustment0
Deferred tax liability5,895,925 2,023,620 4,691,821
Net deferred tax (liabilities) assets4,327,574 3,618,106 3,543,542
Charged to profit and loss
SummaryOfIncomeTaxDeferredTaxLineItems [Line Items]
Tax loss carryforward0 76,301
Inventories(6,751)12,857
Trade receivables and other receivables108,892 515,223 526,277
Trade payables and other payables(1,353,250)1,187,792 (1,074,677)
Salaries and social security taxes payable64,099 22,795 (185,005)
Benefit plans0 21,497 186,860
Tax liabilities1,990 5,034 61,759
Provisions326,742 210,749 (1,071,035)
Deferred tax asset(851,527)1,956,339 (1,466,663)
Property, plant and equipment(8,895,157)(6,435,053)(1,098,719)
Financial assets at fair value through profit or loss4,305 (309,384)(531,727)
Borrowings989 1,572 (53,881)
Tax inflation adjustment(2,267,465)
Deferred tax liability(11,157,328)(6,742,865)(1,684,327)
Net deferred tax (liabilities) assets(12,008,855)(4,786,526)(3,150,990)
Charged to other comprehensive income
SummaryOfIncomeTaxDeferredTaxLineItems [Line Items]
Tax loss carryforward0 0
Inventories0 0
Trade receivables and other receivables0 0 0
Trade payables and other payables0 0 0
Salaries and social security taxes payable0 0 0
Benefit plans2,198 2,600 (11,096)
Tax liabilities0 0 0
Provisions0 0 0
Deferred tax asset2,198 2,600 (11,096)
Property, plant and equipment0 0 0
Financial assets at fair value through profit or loss0 0 0
Borrowings0 0 0
Tax inflation adjustment0
Deferred tax liability0 0 0
Net deferred tax (liabilities) assets $ 2,198 $ 2,600 $ (11,096)

28. Income tax _ deferred tax_3

28. Income tax / deferred tax (Details 1) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Dec. 31, 2017Dec. 31, 2016
SummaryOfIncomeTaxDeferredTaxLineItems [Line Items]
Deferred tax asset $ 2,067,449 $ 4,485,445
Deferred tax liability(22,122,414)(16,861,327)
Net deferred tax (liabilities)(20,054,965)(12,375,882) $ (11,210,062) $ (11,591,518)
To be recovered in less than 12 months
SummaryOfIncomeTaxDeferredTaxLineItems [Line Items]
Deferred tax asset2,066,726 1,567,287
Deferred tax liability(22,121,773)(16,453,585)
To be recovered in more than 12 months
SummaryOfIncomeTaxDeferredTaxLineItems [Line Items]
Deferred tax asset723 2,918,158
Deferred tax liability $ (641) $ (407,742)

28. Income tax _ deferred tax_4

28. Income tax / deferred tax (Details 2) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Income Tax Deferred Tax
Deferred tax $ (7,681,281) $ (1,168,420) $ 392,552
Current tax(2,904,191)(1,713,587)(1,169,638)
Difference between provision and tax return(88,376)(4,864)(7,227)
Income tax expense(10,673,848)(2,886,871)(784,313)
Profit for the year before taxes $ 22,807,987 $ 9,495,085 $ 8,596,806
Applicable tax rate30.00%30.00%35.00%
Loss for the year at the tax rate $ (6,842,396) $ (2,848,526) $ (3,008,882)
Gain from interest in joint ventures124 861 (9)
Non-taxable income(1,021,032)(1,209,002)1,565,827
Adjustment effect on tax inflation(2,805,112)0 0
Change in the income tax rate[1]0 1,174,660 665,978
Difference between provision and tax return(12,230)(4,864)(7,227)
Other6,798 0 0
Income tax expense $ (10,673,848) $ (2,886,871) $ (784,313)
[1]Effect on deferred tax assets and liabilities in accordance with the tax reform of 2017 and Law 27,430.

28. Income tax _ deferred tax_5

28. Income tax / deferred tax (Details 3) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Income Tax Deferred Tax
Provision of income tax payable $ 2,904,191 $ 1,713,587
Tax withholdings(934,780)(764,324)
Total income tax payable $ 1,969,411 $ 949,263

29. Tax liabilities (Details)

29. Tax liabilities (Details) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
SummaryOfTaxLiabilitiesLineItems [Line Items]
Current $ 1,774,331 $ 1,205,626
Provincial, municipal and federal contributions and taxes
SummaryOfTaxLiabilitiesLineItems [Line Items]
Current179,024 200,586
VAT payable
SummaryOfTaxLiabilitiesLineItems [Line Items]
Current1,302,042 634,374
Tax withholdings
SummaryOfTaxLiabilitiesLineItems [Line Items]
Current147,062 195,474
SUSS withholdings
SummaryOfTaxLiabilitiesLineItems [Line Items]
Current8,431 11,433
Municipal taxes
SummaryOfTaxLiabilitiesLineItems [Line Items]
Current137,772 163,175
Tax regularization plan
SummaryOfTaxLiabilitiesLineItems [Line Items]
Current $ 0 $ 584

30. Provisions (Details)

30. Provisions (Details) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
SummaryOfProvisionsLineItems [Line Items]
Provisions, beginning $ 1,645,569
Provisions, ending2,062,603 $ 1,645,569
Non-current liabilities
SummaryOfProvisionsLineItems [Line Items]
Provisions, beginning1,645,569 1,357,972
Increases1,239,577 725,897
Decreases(20,596)(131,722)
Result from exposure to inflation(801,947)(306,578)
Provisions, ending2,062,603 1,645,569
Current liabilities
SummaryOfProvisionsLineItems [Line Items]
Provisions, beginning288,218 293,482
Increases127,655 387,547
Decreases(77,473)(368,410)
Result from exposure to inflation(124,564)(24,401)
Provisions, ending $ 213,836 $ 288,218

31. Revenue from sales (Details

31. Revenue from sales (Details) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
SummaryOfRevenueFromSalesLineItems [Line Items]
Revenue from sales $ 89,943,794 $ 86,039,928 $ 60,897,330
Sales of electricity
SummaryOfRevenueFromSalesLineItems [Line Items]
Revenue from sales89,573,118 85,633,978 60,477,324
Right of use on poles
SummaryOfRevenueFromSalesLineItems [Line Items]
Revenue from sales283,459 292,732 326,400
Connection charges
SummaryOfRevenueFromSalesLineItems [Line Items]
Revenue from sales60,898 78,584 75,915
Reconnection charges
SummaryOfRevenueFromSalesLineItems [Line Items]
Revenue from sales $ 26,319 $ 34,634 $ 17,691

32. Expenses by nature (Details

32. Expenses by nature (Details) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses $ 16,146,593 $ 16,780,493 $ 14,219,211
Selling expenses7,350,973 7,813,882 5,486,265
Administrative expenses3,837,222 4,341,342 3,851,179
Expenses by nature27,334,788 28,935,717 23,556,655
Salaries and social security taxes
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses6,366,146 6,660,458 7,685,152
Selling expenses1,045,979 1,194,814 1,363,903
Administrative expenses1,336,514 1,406,238 1,410,378
Expenses by nature8,748,639 9,261,510 10,459,433
Pension plans
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses190,700 124,085 191,454
Selling expenses31,333 22,259 33,979
Administrative expenses40,036 26,198 35,136
Expenses by nature262,069 172,542 260,569
Communications expenses
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses82,714 124,723 85,006
Selling expenses369,899 414,677 444,966
Administrative expenses17,005 24,630 35,066
Expenses by nature469,618 564,030 565,038
Allowance for the impairment of trade and other receivables
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses0 0 0
Selling expenses1,354,401 1,503,107 602,186
Administrative expenses0 0 0
Expenses by nature1,354,401 1,503,107 602,186
Supplies consumption
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses1,615,876 1,215,387 1,056,706
Selling expenses0 0 0
Administrative expenses114,419 188,558 168,809
Expenses by nature1,730,295 1,403,945 1,225,515
Leases and insurance
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses0 815 1,004
Selling expenses233 0 0
Administrative expenses226,040 277,121 279,898
Expenses by nature226,273 277,936 280,902
Security service
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses237,100 210,136 200,305
Selling expenses42,394 3,117 2,763
Administrative expenses92,826 197,901 217,171
Expenses by nature372,320 411,154 420,239
Fees and remuneration for services
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses2,557,043 2,170,943 1,663,751
Selling expenses1,618,073 1,599,460 1,347,966
Administrative expenses1,363,582 1,548,697 1,261,260
Expenses by nature5,538,698 5,319,100 4,272,977
Depreciation of right-of-use asset
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses16,515
Selling expenses33,030
Administrative expenses114,571
Expenses by nature164,116
Public relations and marketing
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses0 0 0
Selling expenses41,370 49,585 0
Administrative expenses0 0 87,125
Expenses by nature41,370 49,585 87,125
Advertising and sponsorship
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses0 0 0
Selling expenses21,312 25,544 0
Administrative expenses0 0 44,881
Expenses by nature21,312 25,544 44,881
Reimbursements to personnel
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses89 92 137
Selling expenses196 104 85
Administrative expenses1,050 766 1,272
Expenses by nature1,335 962 1,494
Depreciation of property, plants and equipments
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses3,637,865 3,098,292 2,675,953
Selling expenses542,108 461,702 423,060
Administrative expenses444,795 378,822 204,104
Expenses by nature4,624,768 3,938,816 3,303,117
Directors and Supervisory Committee members' fees
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses0 0 0
Selling expenses0 0 0
Administrative expenses22,356 33,664 32,951
Expenses by nature22,356 33,664 32,951
ENRE penalties
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses1,441,742 3,174,321 658,211
Selling expenses1,326,475 1,617,868 659,155
Administrative expenses0 0 0
Expenses by nature2,768,217 4,792,189 1,317,366
Taxes and charges
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses0 0 0
Selling expenses923,650 920,940 607,796
Administrative expenses49,786 249,951 49,223
Expenses by nature973,436 1,170,891 657,019
Other
SummaryOfExpensesByNatureLineItems [Line Items]
Transmission and distribution expenses803 1,241 1,532
Selling expenses520 705 406
Administrative expenses14,242 8,796 23,905
Expenses by nature $ 15,565 $ 10,742 $ 25,843

32. Expenses by nature (Detai_2

32. Expenses by nature (Details Narrative) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Expenses By Nature
Expenses capitalized in property, plant and equipment $ 1,126,500 $ 1,570,500 $ 1,337,300

33. Other operating expense, _3

33. Other operating expense, net (Details) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating income $ 586,276 $ 494,765 $ 242,667
Other operating expense(2,556,678)(2,525,776)(1,938,276)
Other operating expense, net(1,970,402)(2,031,011)(1,695,609)
Services provided to third parties
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating income180,142 114,593 137,321
Commissions on municipal taxes collection
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating income128,907 118,538 78,973
Related parties
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating income20,075 68,125 6,555
Income from non-reimbursable customer contributions
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating income6,584 8,572 6,723
Fines to suppliers
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating income19,910 89,002 12,011
Expense recovery
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating income163,550 0 0
Gratifications for services
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating expense(192,361)(114,199)(124,249)
Cost for services provided to third parties
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating expense(97,274)(80,619)(100,316)
Severance paid
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating expense(21,530)(25,595)(43,598)
Debit and credit tax
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating expense(792,892)(860,939)(737,366)
Provision for contingencies
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating expense(1,367,232)(1,113,444)(833,993)
Disposals of property, plant and equipment
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating expense(63,592)(260,361)(76,614)
Others
SummaryOfOtherOperatingExpensesNetLineItems [Line Items]
Other operating income67,108 95,935 1,084
Other operating expense $ (21,797) $ (70,619) $ (22,140)

34. Net finance costs (Details)

34. Net finance costs (Details) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
SummaryOfNetFinancialCostsLineItems [Line Items]
Financial income $ 1,208,970 $ 1,033,000 $ 697,814
Finance costs(6,762,351)(7,652,701)(3,952,282)
Other finance costs(3,523,314)(3,022,071)(259,053)
Net finance costs(9,076,695)(9,641,772)(3,513,521)
Commercial interest
SummaryOfNetFinancialCostsLineItems [Line Items]
Financial income514,536 420,495 273,180
Finance costs(2,988,860)(4,549,079)(2,639,989)
Financial interest
SummaryOfNetFinancialCostsLineItems [Line Items]
Financial income692,497 612,505 424,634
Other interest
SummaryOfNetFinancialCostsLineItems [Line Items]
Financial income1,937 0 0
Interest and other
SummaryOfNetFinancialCostsLineItems [Line Items]
Finance costs(3,750,737)(3,055,552)(1,259,956)
Fiscal interest
SummaryOfNetFinancialCostsLineItems [Line Items]
Finance costs(5,462)(34,986)(47,904)
Bank fees and expenses
SummaryOfNetFinancialCostsLineItems [Line Items]
Finance costs(17,292)(13,084)(4,433)
Exchange differences
SummaryOfNetFinancialCostsLineItems [Line Items]
Other finance costs(4,168,236)(4,814,183)(867,349)
Adjustment to present value of receivables
SummaryOfNetFinancialCostsLineItems [Line Items]
Other finance costs(76,702)(503)(663)
Changes in fair value of financial assets
SummaryOfNetFinancialCostsLineItems [Line Items]
Other finance costs281,039 1,147,943 730,248
Net gain from the repurchase of Corporate Notes
SummaryOfNetFinancialCostsLineItems [Line Items]
Other finance costs456,884 6,980 0
Other finance costs
SummaryOfNetFinancialCostsLineItems [Line Items]
Other finance costs $ (16,299) $ 637,692 [1] $ (121,289)
[1]As of December 31, 2018 includes $ 770.1 million related to the termination of the agreement on real estate asset.

35. Basic and diluted earning_3

35. Basic and diluted earnings per share (Details) - ARS ($) $ / shares in Units, $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Basic and diluted earnings profit per share:
Profit for the year attributable to the owners of the Company $ 12,134,139 $ 6,608,214 $ 7,812,493
Weighted average number of common shares outstanding876,725,000 890,492,000 898,280,000
Basic and diluted profit earnings per share - in pesos $ 13.84 $ 7.42 $ 8.70

36. Related-party transaction_2

36. Related-party transactions (Details) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of transactions between related parties [line items]
Related-party income $ 22,012 $ 68,125 $ 6,555
PESA
Disclosure of transactions between related parties [line items]
Related-party income337 230 0
PESA
Disclosure of transactions between related parties [line items]
Related-party income0 17,162 6,555
SACDE
Disclosure of transactions between related parties [line items]
Related-party income19,738 50,733 0
FIDUS
Disclosure of transactions between related parties [line items]
Related-party income $ 1,937 $ 0 $ 0

36. Related-party transaction_3

36. Related-party transactions (Details 1) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of transactions between related parties [line items]
Related-party expense $ (241,050) $ (290,051) $ (231,358)
PESA
Disclosure of transactions between related parties [line items]
Related-party expense(136,149)(132,393)(93,714)
SACME
Disclosure of transactions between related parties [line items]
Related-party expense(83,193)(125,627)(106,040)
Salaverri, Dellatorre, Burgio y Wetzler Malbran
Disclosure of transactions between related parties [line items]
Related-party expense0 0 (1,347)
OSV
Disclosure of transactions between related parties [line items]
Related-party expense(19,646)(30,017)(29,162)
FIDUS
Disclosure of transactions between related parties [line items]
Related-party expense(777)0 0
ABELOVICH, POLANO & ASSOC.
Disclosure of transactions between related parties [line items]
Related-party expense $ (1,285) $ (2,014) $ (1,095)

36. Related-party transaction_4

36. Related-party transactions (Details 2) - ARS ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Related party transactions [abstract]
Key management personnel's remuneration - salaries $ 441,378 $ 373,046 $ 385,418

36. Related-party transaction_5

36. Related-party transactions (Details 3) - ARS ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Disclosure of transactions between related parties [line items]
Other receivables - noncurrent $ 3,895 $ 7,168
Other receivables - current25,766 41,436
Trade payables0 (12,045)
Other payables(12,566)(11,642)
FIDUS SGR
Disclosure of transactions between related parties [line items]
Other receivables - current25,000 38,443
SACME
Disclosure of transactions between related parties [line items]
Other receivables - noncurrent3,895 7,168
Other receivables - current766 1,178
Other payables(12,566)(11,642)
OSV
Disclosure of transactions between related parties [line items]
Trade payables0 0
PESA
Disclosure of transactions between related parties [line items]
Other receivables - current0 1,815
Trade payables $ 0 $ (12,045)