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EDN Empresa Distribuidora y Comercial Norte

Cover

Cover12 Months Ended
Dec. 31, 2020shares
Disclosure of fair value measurement of equity [line items]
Entity Registrant NameEDENOR
Entity Central Index Key0001395213
Document Type20-F
Document Period End DateDec. 31,
2020
Title of 12(b) SecurityClass B Common Shares American Depositary Shares, or ADSs, evidenced by American Depositary Receipts, each representing 20 Class B Common Shares
Trading SymbolEDN
Security Exchange NameNYSE
Amendment Flagfalse
Current Fiscal Year End Date--12-31
Entity a Well-known Seasoned IssuerNo
Entity a Voluntary FilerNo
Entity's Reporting Status CurrentYes
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Interactive Data CurrentYes
Entity Incorporation State Country CodeC1
Entity Filer CategoryNon-accelerated Filer
Entity Common Stock, Shares Outstanding906,455,100
Document Fiscal Period FocusFY
Document Fiscal Year Focus2020
Document Annual Reporttrue
Document Transition Reportfalse
Document Shell Company Reportfalse
Class A Common Stock [member]
Disclosure of fair value measurement of equity [line items]
Entity Common Stock, Shares Outstanding462,292,111
Class B Common Stock [member]
Disclosure of fair value measurement of equity [line items]
Entity Common Stock, Shares Outstanding442,210,385 [1]
Class C Common Stock [member]
Disclosure of fair value measurement of equity [line items]
Entity Common Stock, Shares Outstanding1,952,604 [2]
[1]Includes 31,380,871 treasury shares as of December 31, 2020 and December 31, 2019.
[2]Relates to the Employee Stock Ownership Program Class C shares that have not been transferred.

Statement of Comprehensive Inco

Statement of Comprehensive Income - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Profit or loss [abstract]
Revenue $ 91,316 $ 122,437 $ 117,120
Energy purchases(57,930)(77,649)(66,721)
Subtotal33,386 44,788 50,399
Transmission and distribution expenses(19,866)(21,980)(22,842)
Gross margin13,520 22,808 27,557
Selling expenses(10,843)(10,007)(10,534)
Administrative expenses(5,353)(5,223)(6,012)
Other operating income2,200 2,364 1,903
Other operating expense(2,045)(3,479)(3,438)
Impairment of property, plant and equipment(17,396)
Gain from interest in joint ventures2 3
Operating profit(19,917)6,465 9,479
Agreement on the Regularization of Obligations 23,270
Financial income55 78 176
Finance costs(9,276)(9,205)(10,416)
Other finance costs(1,890)(4,796)(4,114)
Net finance costs(11,111)(13,923)(14,354)
Monetary gain (RECPAM)9,767 15,236 17,800
(Loss) Profit before taxes(21,261)31,048 12,925
Income tax3,563 (14,530)(3,930)
(Loss) Profit for the year(17,698)16,518 8,995
Other comprehensive income Items that will not be reclassified to profit or loss
Results related to benefit plans108 (10)(12)
Tax effect of actuarial profit on benefit plans(33)3 4
Total other comprehensive results75 (7)(8)
Comprehensive (loss) profit for the year attributable to:
Owners of the parent(17,623)16,511 8,987
Comprehensive (loss) profit for the year $ (17,623) $ 16,511 $ 8,987
Basic and diluted (loss) profit per share:
(Loss) Profit per share (argentine pesos per share) $ (20.23) $ 18.88 $ 10.11

Statement of Financial Position

Statement of Financial Position - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Non-current assets
Property, plant and equipment $ 124,914 $ 137,894
Interest in joint ventures11 15
Right-of-use asset280 355
Other receivables42 35
Financial assets at amortized cost239
Total non-current assets125,486 138,299
Current assets
Inventories1,873 2,623
Other receivables624 394
Trade receivables14,151 16,961
Financial assets at fair value through profit or loss2,222 3,798
Financial assets at amortized cost78
Cash and cash equivalents4,362 558
Total current assets23,310 24,334
TOTAL ASSETS148,796 162,633
Share capital and reserve attributable to the owners of the Company
Share capital875 875
Adjustment to share capital36,404 36,404
Treasury stock31 31
Adjustment to treasury stock782 782
Additional paid-in capital504 504
Cost treasury stock(3,053)(3,053)
Legal reserve2,581 1,755
Voluntary reserve42,690 26,998
Other comprehensive loss(218)(294)
Accumulated (losses) profits(17,698)16,518
TOTAL EQUITY62,898 80,520
Non-current liabilities
Trade payables521 503
Other payables6,285 5,472
Borrowings8,261 11,159
Deferred revenue1,471 368
Salaries and social security payable303 327
Benefit plans749 713
Deferred tax liability23,709 27,300
Provisions2,431 2,808
Total non-current liabilities43,730 48,650
Current liabilities
Trade payables33,019 17,288
Other payables2,999 4,895
Borrowings143 2,259
Derivative financial instruments1 279
Deferred revenue37 7
Salaries and social security payable3,734 3,278
Benefit plans84 70
Income tax payable 2,681
Tax liabilities1,793 2,415
Provisions358 291
Total current liabilities42,168 33,463
TOTAL LIABILITIES85,898 82,113
TOTAL LIABILITIES AND EQUITY $ 148,796 $ 162,633

Statement of Changes in Equity

Statement of Changes in Equity - ARS ($) $ in MillionsShare Capital [member]Adjustment to Share Capital [member]Treasury stock [member]Adjustment to Treasury Stock [member]Additional Paid-in Capital [member]Cost Treasury Stock [member]Legal Reserve [member]Voluntary Reserve [member]Other Reserve [member]Other Comprehensive Loss [member]Retained Earnings [member]Total
Beginning balance at Dec. 31, 2017 $ 899 $ 37,036 $ 7 $ 150 $ 482 $ 320 $ 768 $ (279) $ 18,796 $ 58,179
Change of accounting standard - Adjustment by model of expected losses IFRS 9(126)(126)
Balance at December 31, 2017 restated899 37,036 7 150 482 320 768 (279)18,670 58,053
Other reserve constitution - Share-bases compensation plan $ 22 22
Payment of Other reserve constitution - Share-bases compensation plan2 (2)22 $ (22)
Acquisition of own shares(16)(350)16 350 $ (2,237)(2,237)
Other comprehensive loss for the year(8)(8)
Profit for the year8,995 8,995
Ending balance at Dec. 31, 2018883 36,688 23 498 504 (2,237)320 768 (287)27,665 64,825
Ordinary and Extraordinary Shareholders' Meeting held on April 24, 20191,435 26,230 (27,665)
Acquisition of own shares(8)(284)8 284 (816)(816)
Other comprehensive loss for the year(7)(7)
Profit for the year16,518 16,518
Ending balance at Dec. 31, 2019875 36,404 31 782 504 (3,053)1,755 26,998 (294)16,518 80,520
Ordinary and Extraordinary Shareholders' Meeting held on April 24, 2019826 15,692 (16,518)
Other reserve constitution - Share-bases compensation plan76 76
Profit for the year(17,698)(17,698)
Ending balance at Dec. 31, 2020 $ 875 $ 36,404 $ 31 $ 782 $ 504 $ (3,053) $ 2,581 $ 42,690 $ (218) $ (17,698) $ 62,898

Statement of Cash Flows

Statement of Cash Flows - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Cash flows from operating activities
(Loss) Profit for the year $ (17,698) $ 16,518 $ 8,995
Adjustments to reconcile net (loss) profit to net cash flows from operating activities:
Depreciation of property, plants and equipments6,506 6,295 5,362
Depreciation of right-of-use assets321 223
Loss on disposals of property, plants and equipments151 86 281
Net accrued interest9,240 9,107 10,378
Income from customer surcharges(1,550)(1,567)(1,385)
Exchange difference2,955 5,674 5,506
Income tax(3,563)14,530 3,930
Allowance for the impairment of trade and other receivables, net of recovery4,183 1,844 2,046
Adjustment to present value of receivables129 104 1
Provision for contingencies683 1,861 1,516
Changes in fair value of financial assets(989)(383)(1,473)
Accrual of benefit plans477 357 235
Net gain from the repurchase of Corporate Notes(415)(622)(10)
Gain from interest in joint ventures(2)(3)
Income from non-reimbursable customer contributions(26)(9)(12)
Other reserve constitution - Share bases compensation plan22
Termination of agreement on real estate asset(164)
Other financial results206 200
Impairment of property, plant and equipment17,396
Agreement on the Regularization of Obligations(23,270)
Monetary gain (RECPAM)(9,767)(15,236)(17,800)
Changes in operating assets and liabilities:
Increase in trade receivables(3,823)(5,164)(4,463)
(Increase) Decrease in other receivables(350)1,172 1,746
Decrease (Increase) in inventories33 (687)(1,716)
Increase in financial assets at amortized cost(317)
Increase in deferred revenue1,259 185
(Decrease) Increase in trade payables(296)5,139 2,602
Increase in salaries and social security payable1,711 1,225 1,184
Decrease in benefit plans(14)(61)(116)
(Decrease) Increase in tax liabilities(91)1,341 (1,079)
Decrease in other payables(54)(976)6,741
Derivative financial instruments payments(290)
Decrease in provisions(117)(133)(681)
Payment of income tax payable(2,420)(3,572)(1,855)
Subtotal before variation in debt with CAMMESA3,470 13,830 20,137
Increase in past due commercial debt with CAMMESA13,866
Net cash flows generated by operating activities17,336 13,830 20,137
Cash flows from investing activities
Payment of property, plants and equipments(9,847)(12,755)(17,309)
Net collection of financial assets2,220 (4,908)
Redemtion net of money market funds2,583 3,441 4,840
Mutuum charges granted to third parties35 196
Mutuum payments granted to third parties(135)(240)
Collection of receivables from sale of subsidiaries10 14 185
Net cash flows used in investing activities(7,219)(7,019)(17,432)
Cash flows from financing activities
Payment of borrowings(750)(2,169)
Payment of lease liability(686)(291)
Payment of interests from borrowings(918)(1,545)(1,366)
Repurchase of Corporate Notes(3,798)(2,084)(786)
Acquisition of own shares(816)(2,237)
Net cash flows used in financing activities(6,152)(6,905)(4,389)
Increase (decrease) in cash and cash equivalents3,965 (94)(1,684)
Cash and cash equivalents at the beginning of year558 58 256
Exchange differences in cash and cash equivalents(364)597 327
Result from exposure to inflation203 (3)1,159
Increase (decrease) in cash and cash equivalents3,965 (94)(1,684)
Cash and cash equivalents at the end of the year4,362 558 58
Supplemental cash flows information Non-cash activities
Adquisition of advances to suppliers, property, plant and equipment through increased trade payables(1,226)(746)(1,417)
Adquisition of advances to suppliers, right-of-use assets through increased trade payables $ (246) $ (579)
Decrease of property, plant and equipment through increased other receivables $ 920

1 General information

1 General information12 Months Ended
Dec. 31, 2020
General Information
General informationNote 1 | General information History 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 five fiscal
years, the Company recorded negative working capital. This situation is due mainly to the suspension of the electricity rate update
from February 2019 to date, in spite of the constant increase of the operating costs and the investments necessary, both for the
operation of the network and to maintain the quality of the service, in a context of inflation and sustained recession in which
the Argentine economy has been since mid-2018. The Company has been significantly affected by such freeze on electricity rates,
therefore, its revenues are at December 2018 values, in spite of the high levels of inflation experienced over the past three years
making it uncertain when the update of costs will be finally recognized. Additionally, this
situation was exacerbated by the effects of the COVID-19 pandemic, which has had a severe social, economic and financial impact.
Most of the world’s countries implemented exceptional actions, which had an immediate impact on their economies, as rapidly
evidenced by the falls recorded in production and activity indicators. The governments’ immediate response to these consequences
was the implementation of tax aids to sustain their citizens’ income and thereby reduce the risk of a breakdown in the chain
of payments, with the aim of avoiding an economic and financial crisis. With regard to the
Company, significant impacts were generated that affected the economic and financial equation generated by the freeze on electricity
rates even further, such as the increase in delinquency rates and the decrease in demand, as a consequence of which the Company’s
Management was forced to partially postpone payments to CAMMESA for energy purchased in the Wholesale Electricity Market (“MEM”)
as from the maturities taking place in March 2020; payment obligations which have been partially regularized, but as of December
31, 2020 accumulate a principal balance of $ 19,008, plus interest and charges for $ 2,376. This whole situation
is aggravated by a complex and vulnerable economic context, as reflected by the country’s economic conditions described below: o
Economic contraction by an estimated 11.8% for 2020 (IMF
– October 2020 World Economic Outlook Report); o
Increase of both public spending and the fiscal deficit;
o
Inflation rate of 36% in 2020 that is expected not only
to continue but in fact to increase over time; o
41% devaluation of the Argentine peso against the United
States dollar, considering the BNA’s rate of exchange, with the gap between the official and the blue-chip swap dollar exchange
rates amounting to 67%; o
Imposition of currency restrictions by the monetary
authority, which directly affect the value of the foreign currency for certain restricted foreign exchange transactions taking
place outside the MULC. As for the currency
restrictions, the BCRA’s prior authorization is required for certain transactions, such as the Company’s transactions
associated with the payment of imports of goods from abroad that are necessary for the provision of the service, and debt service
payments. These currency restrictions, or those to be implemented in the future, could affect the Company’s ability to access
the MULC in order to acquire the foreign currency necessary to face its operating and financial obligations. Additionally, DNU
No. 1020 of December 16, 2020 extended until March 31, 2021 the freeze on electricity rates prescribed by Law No. 27,541 on Social
Solidarity and Production Reactivation in the framework of the Economic Emergency enacted by the end of 2019, which authorized
the PEN to keep electricity rates under federal jurisdiction unchanged, with the direct impact such extension has on the Company’s
financial soundness. Despite the previously
described situation, it is worth pointing out that, in general terms, the quality of the electricity distribution service has been
significantly improved, both in duration and frequency of power cuts. 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 demand, the Company, as previously
mentioned, is analyzing different 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. Taking into consideration
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 Despite what has
been previously described, these financial statements have been prepared assuming that the Company will continue to operate as
a going concern and do not include the adjustments or reclassifications that might result from the outcome of these uncertainties.

2 Regulatory framework

2 Regulatory framework12 Months Ended
Dec. 31, 2020
Regulatory Framework
Regulatory frameworkNote 2 | Regulatory framework
a) 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. At the end of each management period, the Class “A” shares representing 51% of edenor‘s share capital,
currently held by PESA, must be offered for sale through a public bidding. If PESA makes the highest bid, it will continue to hold
the Class “A” shares, and no further disbursements will be necessary. On the contrary, if PESA is not the highest bidder,
then the bidder who makes the highest bid shall pay PESA the amount of the bid in accordance with the conditions of the public
bidding. The proceeds from the sale of the Class “A” shares will be delivered to PESA after deducting any amounts receivable
to which the Grantor of the concession may be entitled. The current management period ends on December 31, 2021. 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 2020, the Company
made different presentations to the ENRE with the estimates of the electricity rate schedules that were to be applied during the
year according to the terms of the Electricity Rate Schedules Maintenance Agreement entered into by and between the Company and
the Federal Government, disclosed in Note 2.b) to the Financial Statements as of December 31, 2019; however, the ENRE has instructed
the Company not to applied them, in the framework of the economic emergency and in accordance with Law No. 27,541 on Social Solidarity
and Production Reactivation. At the date of issuance
of these financial statements, the Company has duly submitted to the ENRE the adjustment request of its Own Distribution Costs
(CPD), pursuant to the provisions of Appendix XV of ENRE Resolution No. 63/2017 “Procedure for determining the electricity
rate schedule”, in accordance with the following detail:
Period Date
of application CPD
adjustment
Jan. 19 - Jun. 19 Aug. 19 (1) 19.05%
Jul. 19 - Dec. 19 Feb. 20 24.65%
Jan. 20 - Jun. 20 Aug. 20 12.97% (1)
The CPD adjustment applicable in August 2019 was
deferred until January 2020 by means of the Electricity Rate Schedule Maintenance Agreement, and was finally not applied. The indicated CPD
and the other concepts detailed in the “Electricity Rate Schedules Maintenance Agreement” entered into with the Federal
Government on September 19, 2019, neither transferred to tariffs nor authorized to be collected by other means accumulate as of
December 31, 2020 a total of approximately $ 20,939 million, excluding interest. On December 11, 2020,
by means of Executive Order No. 990/20, the 2021 Budget Law was partially approved. In its section 87, the law provides for a system
for the settlement of debts with CAMMESA and/or the MEM accumulated by Electricity Distribution Companies as of December 31, 2020,
whether on account of the consumption of energy, power, interest and/or penalties, in accordance with the conditions to be set
out by the application authority, which may provide for credits equivalent to up to five times the monthly average bill or to sixty-six
percent of the existing debt, whereas the remaining debt is to be paid in up to sixty monthly installments, with a grace period
of up to six months, and at the rate in effect in the MEM, reduced by fifty percent. Consequently, by means
of Resolution 40/2021, the Energy Secretariat implemented a “Special System for the Regularization of Payment Obligations”
of Electricity Distribution Companies that are agents of the MEM for the debts held with CAMMESA and/or the WHOLESALE ELECTRICITY
MARKET whether on account of the consumption of energy, power, interest and/or penalties, accumulated as of September 30, 2020.
It also implemented a “Special System of Credits” for those Electricity Distribution Companies that are agents of the
MEM and have no debts with CAMMESA and/or the MEM or whose debts are regarded as being within reasonable values vis-à-vis
their levels of transactions as of September 30, 2020. Furthermore, on December
16, 2020, by means of Executive Order No. 1020/20, the PEN provided for the commencement of the Tariff Structure Review renegotiation
process, which may not exceed two years, suspending until then the Agreements relating to the respective Tariff Structure Reviews
in effect, with the scope to be determined in each case by the Regulatory Authorities. It is provided that Interim Renegotiation
Agreements may be entered into, which modify to a limited extent the particular conditions of the tariff review imposing a Transitional
Tariff System until a Definitive Renegotiation Agreement is reached. Moreover, the freeze
on electricity rates was extended until March 31, 2021, or until the new transitional electricity rate schedules resulting from
the Transitional Tariff System come into effect, whichever occurs first. In that framework,
on January 19, 2021, the ENRE issued Resolution No. 16, providing for the commencement of the transitional tariff adjustment procedure,
with the aim of setting a Transitional Tariff System until a Definitive Renegotiation Agreement is reached, and inviting edenor
to participate in it. To that end, the Regulatory Authority has requested as a first measure that it be provided with certain financial
information as well as with information about the 2021-2022 investment plan, on the basis of the investment plan set forth in the
2017 RTI. Furthermore, the ENRE’s
administrative intervention provided for by Executive Order No. 277/20, was extended until December 31, 2021, or until the tariff
review renegotiation is finalized. At the date of issuance
of these financial statements, the implementation of the system for the settlement of debts with CAMMESA and the RTI renegotiation
process were still underway and the outcome thereof was still uncertain; therefore, the Company is still assessing the scope and
implications of such acts. Finally, on February
24, 2021, by means of Resolution No. 53/2021, the ENRE called a Public Hearing to be held on March 30, 2021 to inform and listen
to opinions about the Transitional Tariff System to be applied to Distributors Edesur and edenor
c) Effects related to the COVID-19 1.
Suspension of customer service in commercial
offices: 2.
Prohibition against the interruption of service
provision: 3.
System of payment for the service: 4.
Consumption estimate:
in the framework of the mandatory and preventive social isolation provided for by the PEN and the provisions of ENRE Resolution
No. 3/2020, on April 13, 2020, the Regulatory Authority authorized the Company to apply the methodology for validating meter readings
and consumption estimates (ENRE Resolution No. 209/2018), excluding the cases of remote readings and non-metered consumptions.
Furthermore, the ENRE issued two instructions, one of them on April 30, 2020 and the other on May 5, 2020, in relation to the application
of the aforementioned methodology, mainly with regard to the communication to be provided to customers, the mechanisms for challenging
meter readings and the information about this process to be provided on a periodical basis to the Regulatory Authority. Subsequently,
on May 6, 2020, the ENRE authorized Distribution Companies to perform meter reading activities for the electricity consumption
of medium and large demand user categories, tariff 2 and 3. In this regard, by
means of Resolution No. 27/2020, the ENRE resolved that in the case of T1R (small-demand residential tariff) category users with
no remote meter reading, the lowest consumption recorded over the last three years prior to the issuance of the bill for the same
estimated period is to be applied until actual meter readings are available. Furthermore, by means
of Resolution No. 35/2020, the ENRE resolved that T2 (medium-demand), T3 (large-demand) and Wheeling system tariff category users
subject to compliance with the mandatory lockdown, who have suffered a reduction of at least 50% in their demand for power, may
either suspend payment or make partial payments on account of the contracted power under electricity supply contracts, until 70%
of the demand is recovered, maintaining the obligation to pay the other charges. Finally, by means
of note dated May 15, 2020, the ENRE instructed the Company to begin to carry out reading tasks of T1 (small-demand tariff) users’
meters so that the billing reflects actual consumption. In this regard, it
was provided that if from the previous consumption estimate process a difference arises in favor of the user, it must be reimbursed
by the Company in the first bill with actual reading. Furthermore, if the difference is in favor of the Company, the resulting
amount will have to be paid in 6 equal and consecutive installments, which will be included in the bills to be issued with the
consumption recorded as from September 1, 2020, which was extended to November 1, 2020. Finally, by means of note dated October
26, 2020, the ENRE suspended the commencement of the payment of the installments of the amounts owed by T1 (small-demand tariff)
users until new instructions are given in this regard. The cumulative amount pending collection totals $ 552 million. Furthermore, by means
of DNU No. 875/2020 of November 7, 2020, the PEN provided for the Mandatory and Preventive Social Distancing, eliminating certain
restrictions in the CABA and the AMBA. Finally, on February
18, 2021, by means of Resolution No. 37, the ENRE instructed the Company to issue neither Debit Notes nor Supplementary bills for
unrecorded consumption, as well as to refrain from suspending electricity supplies due to non-payment of amounts originated from
the recovery of energy. All that which has
been previously described impacts the Company’s economic and financial situation.
d) Change of Jurisdiction and Regularization of Obligations On February 19, 2021,
the Company assented to the Agreement on the Joint Exercise of the Regulation and Control of the Public Service of Electricity
Distribution entered into by the Federal Government, the PBA and the CABA, whereby it is recognized that the Federal Government
currently retains the ownership and capacity as Grantor of the Concession of the public service of electricity distribution in
the Company’s concession area, being it agreed that a number of instruments related to the transfer of the referred to service
to the local jurisdictions will no longer be in effect and that a Tripartite agency in charge of the activity’s regulation
and control will be set up. On February 23, 2021, such agreement was ratified by the Company’s Extraordinary Shareholders’
Meeting. With regard to the
Agreement on the Regularization of Payment Obligations, as of December 31, 2019 a profit of $ 23,270 million was recognized, which
did not imply any cash inflows. The Agreement consisted of edenor
e) 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,
2020 and 2019, 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, following the criteria and estimates available, 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 the Distributor’s CPD or by the energy tariff average
price, as the case may be. Subsequently, in different resolutions related to commercial penalties and penalties relating to the
safety on streets and public spaces, the Regulatory Authority provided for the application of increases and adjustments, applying
for such purpose a criterion different from the one applied by the Company. On June 3, 2020, by
means of Resolution No. 42/2020, the ENRE approved the new methodology for crediting and distributing the penalties payable to
all the active users, and the regulations of the methodology for crediting the penalties payable to disconnected users, as well
as the manner in which distribution companies must produce that information and send it to the ENRE. As of December 31, 2020, the
totality of the penalties payable to active users has been credited. By means of Resolution
No. 15/2021, the ENRE approved the new methodology for crediting and distributing the penalties payable to all the Active Users
and the modality of crediting penalties to the Solidarity Account for Users in Vulnerable Situations, as well as the manner in
which edenor At the date of issuance
of these financial statements, and despite the unilateral breach by the grantor of the concession of the Electricity Rate Schedules
Maintenance Agreement signed with the Federal Government on September 19, 2019, mentioned in the Financial Statements as of December
31, 2019, the Company has complied with the payment of the six penalty-related installments, whose payment had been deferred.
f) Framework agreement On December 16, 2020,
the “Agreement on the Development of the Preventive and Corrective Maintenance Work Plan for the Electricity Distribution
Network of the Buenos Aires Metropolitan Area”, was signed with the Federal Government and the province of Buenos Aires,
to guarantee the electricity supply to vulnerable neighborhoods of the Buenos Aires Metropolitan Area. As of December 31,
2020, the debt for the electricity supplied in the October 2017 – July 2020 period to low-income areas and shantytowns in
edenor All these amounts
will be applied to the Work Plan in order that the necessary investment and preventive and corrective maintenance works can be
carried out in the networks in charge of distribution companies and related to vulnerable neighborhoods and other areas of the
concession area, with the aim of improving the service therein provided and meeting the contingencies and any peak demand that
often occurs in the summer. On January 14, 2021,
the Company received the first disbursement for $ 1,500 million; the second disbursement for $ 500 million is expected to be received
in the first quarter of 2021; the third disbursement for $ 500 million in the second quarter of 2021; and the fourth disbursement
in accordance with that which the ENRE will validate and inform about the vulnerable neighborhoods’ total consumption between
August and December 2020. The aforementioned disbursements are subject to both compliance with the Work Plan mentioned in the previous
paragraph and the control thereof by the ENRE and the Federal Government.
g) 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, otherwise the maturity of principal of the corporate
notes could be accelerated.

3 Basis of preparation

3 Basis of preparation12 Months Ended
Dec. 31, 2020
Basis Of Preparation
Basis of preparationNote 3 | Basis of preparation The financial statements
for the year ended December 31, 2020 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 9, 2021. Comparative information
The balances as of
December 31, 2019, disclosed in these financial statements for comparative purposes, arise as a result of restating the financial
statements as of that date to the purchasing power of the currency at December 31, 2020. This, as a consequence of the restatement
of the financial information described hereunder. Furthermore, certain amounts of the financial statements presented on a comparative
basis have been reclassified in order to maintain consistency of presentation with the amounts of the current year. Restatement of
financial information The financial statements
as of December 31, 2020, including the figures relating to the previous year, have been stated in terms of the measuring unit current
at December 31, 2020, in accordance with IAS 29 “Financial reporting in hyperinflationary economies”, using the BCRA
Market Expectations Survey index for the last month of the period, inasmuch as the FACPCE index was not yet available at the closing
date of the Company’s accounting processes. As a result thereof, the financial statements are stated in terms of the measuring
unit current at the end of the reporting year. The inflation rate
applied for the year commenced January 1, 2020 and ended December 31, 2020, based on that indicated in the preceding paragraph,
amounted to 36.13%. It does not cause significant distortions that, in the Company’s opinion, could affect the interpretation
of these financial statements or investor decisions if the definitive index established by the FACPCE, which was published subsequent
to the closing of the Company’s accounting process, had been used. 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. 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, 2020, 2019, 2018 and 2017, the inflation rate amounted to 36.13%,
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 year.
(ii) Non-monetary items carried at historical cost or at the current value of a date prior to the end of the reporting year 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 year. Depreciation charges of property, plant and equipment and amortization charges of intangible assets recognized in profit or loss for the year, 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 year 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 gain 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 year, 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 year. 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 year.

4 Accounting policies

4 Accounting policies12 Months Ended
Dec. 31, 2020
Accounting Policies
Accounting policiesNote 4 | Accounting policies The 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, that are effective as of December 31, 2020 and have been adopted by the Company The
Company has first applied the following standards and/or amendments s
from January 1, 2020: - IFRS 16 “Leases”
(amended in May 2020). There are no new IFRS
or IFRIC applicable as from this fiscal year that have a material impact on the Company’s financial statements. New
accounting standards, amendments and interpretations issued by the IASB that are not yet effective and have not been
early adopted by the Company - IFRS 17 “Insurance
contracts”, issued in May 2017 and amended in June 2020. It replaces IFRS 4, introduced as an interim standard in 2004, which
allowed entities to account for insurance contracts using their local accounting requirements, resulting in multiple application
approaches. IFRS 17 sets the principles for the recognition, measurement, presentation, and disclosure of insurance contracts,
and applies to annual periods beginning on or after January 1, 2023, allowing for its early adoption for entities already applying
IFRS 9 and IFRS 15. The Company estimates that the application thereof will impact neither the Company’s results of operations
nor its financial position. - IAS 1 “Presentation
of financial statements”, amended in January and July 2020. It incorporates amendments to the classification of liabilities
as current or non-current. The amendments apply to annual periods beginning on or after January 1, 2023, with early adoption permitted.
The application thereof will impact neither the Company’s results of operations nor its financial position. - IFRS 3 “Business
combinations”, amended in May 2020. It incorporates references to the definitions of assets and liabilities in the new Conceptual
Framework and clarifications on contingent assets and liabilities that are incurred separately from those assumed in a business
combination. It applies to business combinations as from January 1, 2022, with early adoption permitted. - Annual improvements
to IFRS – 2018-2020 Cycle: the amendments were issued in May 2020 and apply to annual periods beginning on or after January
1, 2022. The Company estimates that the application thereof will impact neither the Company’s results of operations nor its
financial position. - IAS 16 “Property,
plant and equipment”, amended in May 2020. It incorporates amendments to the recognition of inventories, sales and costs
of items produced while bringing an item of property, plant and equipment to the location and condition necessary for its intended
use. The amendments apply to annual periods beginning on or after January 1, 2022, with early adoption permitted. The Company is
currently analyzing the impact of the application of the amendments on the Company’s results of operations or its financial
position. - IAS 37 “Provisions,
contingent liabilities and contingent assets”, amended in May 2020. It clarifies the scope of the concept of cost of fulfilling
an onerous contract. The amendments apply to annual periods beginning on or after January 1, 2022, with early adoption permitted.
The Company estimates that the application thereof will impact neither the Company’s results of operations nor its financial
position. - Amendments to IFRS
9 “Financial instruments”, IAS 39 “Financial instruments: Presentation”, IFRS 7 “Financial instruments:
Disclosures””, IFRS 4 “Insurance contracts” and IFRS 16 “Leases”, amended in August 2020. They
provide guidelines for the measurement of financial assets and liabilities at amortized cost affected by the interest rate benchmark
reform. The amendments apply to annual periods beginning on or after January 1, 2021. The Company is currently analyzing the impact
of the application of the amendments 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 necessarily takes a substantial period of time
to get ready for its intended use. These assets begin to be depreciated when they are in economic conditions of use. 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 negotiating the extensions of the Framework Agreement with the Federal and the Provincial Governments, as the case may be (Note
2.f). 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 also recognizes
revenue from other concepts included in distribution services, such as new connections, reconnections, rights of use on poles,
transportation of electricity to other distribution companies, inasmuch as the services are provided on the basis of the price
established in each contract. Revenue is not adjusted for the effect of the 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 Entity and the amount
of the transaction can be measured reliably. The classification
of commercial interest and surcharges in the Statement of Comprehensive (Loss) Income is modified, as the Company believes that
the concepts related to interest for delinquency in the payment of trade receivables and surcharges applied to customers due to
late payment or other associated penalties provide relevant information about the operation and operating cash flows of the business;
therefore, they are disclosed within the other operating income account. The Company’s Management believes this disclosure
reflects the impacts of the operating cycle, allowing for consistency with the treatment of other concepts such as the impairment
of receivables, particularly taking into consideration the current context detailed in Notes 1 and 2, which increased the delay
in the time taken to make payments, including in this last case the restriction on some measures aimed at limiting delays in payment
from customers.
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 Income. The foreign currency
exchange rates used are the selling rate for monetary assets and 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 it will not be able to collect all the amounts
owed to it in accordance with the original terms of the receivables. The rest of the 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 asset s
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, 2020 and 2019, the economic impact of these transactions is recorded in the “Other finance costs” account
of the Statement of Comprehensive (Loss) Income. As of December 31,
2020 and 2019, the economic impact of the transactions carried out in those fiscal years resulted in losses of $ 77.4 million and
$ 286.9 million, respectively, which are recorded in the “Other finance costs” account of the Statement of Comprehensive
(Loss) Income.
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 rate 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 (loss) gain 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. Retained earnings, where applicable,
are comprised of the 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 with the
principal amount plus any interest accrued thereon, after deducting, if appropriate, any amount owed by the customer to the Company.
c. Customer contributions Refundable
d. 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.e), and other provisions are the best estimate of
the settlement value of the present obligation in the framework of IAS 37 provisions at the closing 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.e.
Note 4.13 | Borrowings Borrowings are initially
recognized at fair value, less 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 Company’s
accounting policy for benefit plans is as follow:
a. Service costs are immediately recorded in profit or loss, unless the changes to the benefit plan are conditional on the employees’ remaining in service for a specified period of time (the vesting period). In this case, past service costs are amortized on a straight-line basis over the vesting period.
b. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in “Other comprehensive income” in the year in which they arise.
· 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 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 closing 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 nominal 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, 2020 and 2019, the IPC cumulative
variations for the 12 months of each year amounted to 36.13% and 53.77%, respectively, which exceed the 15% and 30% thresholds
fixed for the third and second transition years 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 December
31, 2018, 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 in fiscal year 2019, 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
re

5 Financial risk management

5 Financial risk management12 Months Ended
Dec. 31, 2020
Financial Risk Management
Financial risk managementNote 5 | Financial risk management
Nota 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 by 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, 2020 and 2019 are $ 84.15 and $ 59.89 per USD 1, respectively. As of December
31, 2020 and 2019, the Company’s balances in foreign currency are as follow:
Currency Amount
in foreign currency Exchange
rate (1) Total
Total
ASSETS
CURRENT ASSETS
Other receivables USD 6 84.150 505 82
JPY 55 0.816 45 -
Financial assets at fair value through profit or loss USD - 84.150 - 3,798
Cash and cash equivalents USD 17 84.150 1,431 164
EUR - 103.530 - 1
TOTAL CURRENT ASSETS 1,981 4,045
TOTAL ASSETS 1,981 4,045
LIABILITIES
NON-CURRENT LIABILITIES
Borrowings USD 98 84.150 8,261 11,159
TOTAL NON-CURRENT LIABILITIES 8,261 11,159
CURRENT LIABILITIES
Trade payables USD 11 84.150 962 738
EUR - 103.530 - 39
CHF - 95.413 - 21
NOK - 8.211 - 1
Borrowings USD 2 84.150 143 2,259
Other payables USD 9 84.150 757 739
TOTAL CURRENT LIABILITIES 1,862 3,797
TOTAL LIABILITIES 10,123 14,956
(1) The exchange rates used are the BNA exchange rates in effect as of December 31, 2020 for US Dollars (USD), Euros (EUR), Swiss Francs (CHF), Norwegian Krones (NOK) and Japanese Yens (JPY). 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.
12.31.20 12.31.19
Net position
US dollar (8,187) (10,851)
Japanese Yen 45 -
Euro - (38)
Norwegian krone - (1)
Swiss franc - (21)
Total (8,142) (10,911) The Company estimates
that a 10% devaluation of the Argentine peso with respect to each foreign currency, with all other variables held constant, would
give rise to the following decrease in the (loss) profit for the year:
12.31.20 12.31.19
Net position
US dollar (819) (1,085)
Euro - (4)
Swiss franc - (2)
Decrease in the results of operations for the
year (819) (1,091)
i. 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.
ii. 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, 2020 and 2019 -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 increased
semi-annually by a quarter-point, which was repaid in October 2020-, 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:
12.31.20 12.31.19
Fixed rate:
US dollar 8,404 11,355
Floating rate:
US dollar - 2,063
Subtotal loans at floating rates - 2,063
Total loans 8,404 13,418 Based on the simulations
performed, a 1% increase in floating interest rates, with all other variables held constant, would give rise to the following decrease
in the (loss) profit for the year:
12.31.20 12.31.19
Floating rate:
US dollar - (4)
Decrease in the results of operations for the
year - (4) Based on the simulations
performed, a 1% decrease in floating interest rates, with all other variables held constant, would give rise to the following increase
in the (loss) profit for the year:
12.31.20 12.31.19
Floating rate:
US dollar - 4
Increase in the results of operations for the
year - 4
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, including 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 there are no independent credit risk ratings, the Finance Department evaluates the debtors’ credit quality, past experience
and other factors. Individual credit
limits are set 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 Operations
and Customer Service Departments periodically monitor 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 applies
different offsetting mechanisms against municipal taxes it collects in the name and to the order of those government bodies and
debt refinancing plans, with the aim of reducing its exposure. At each year-end,
the Company analyzes whether the recording of an impairment is necessary. As of December 31, 2020 and 2019, delinquent trade receivables
totaled approximately $ 8,035.8 million and $ 4,711.9 million, respectively. As of December 31, 2020 and 2019, the financial statements
included allowances for $ 4,604.8 million and $ 2,104.9 million, respectively. The inability to collect
the amounts 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) customer categories 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, 2020 and
2019, the Company’s current financial assets at fair value amount to $ 2,221.8 million and $ 3,787.7 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
1 to 2 years From
2 to 5 years More
than 5 years
As of December 31, 2020
Trade and other payables 18,169 19,908 200 8,856 -
Borrowings - - 8,261 - -
Total 18,169 19,908 8,461 8,856 -
As of December 31, 2019
Trade and other payables 1,045 21,746 284 6,809 290
Borrowings - - - 11,159 -
Total 1,045 21,746 284 17,968 290
Nota 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, 2020 and 2019.
b. Related to employees
who are union members As of December 31,
2020, 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.
Nota 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 as shown in the Statement of Financial Position plus net debt. The gearing ratios at December
31, 2020 and 2019 were as follow:
12.31.20 12.31.19
Total liabilities 85,898 82,113
Less: Cash and cash equivalents and Financial assets at fair value through profit or loss (6,584) (4,356)
Net debt 79,314 77,757
Total Equity 62,898 80,520
Total capital attributable to owners 142,212 158,277
Gearing ratio 55.77% 49.13%
Nota 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 the
Grantor 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.
Nota 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, 2020 and 2019:
LEVEL
1 LEVEL
2 TOTAL
At December 31, 2020
Assets
Financial assets at fair value through profit or loss:
Government bonds 2,222 - 2,222
Cash and cash equivalents:
Money market funds 2,724 - 2,724
Total assets 4,946 - 4,946
Liabilities
Derivative financial instruments - 1 1
Total liabilities - 1 1
At December 31, 2019
Assets
Financial assets at fair value through profit or loss:
Money market funds 3,798 - 3,798
Cash and cash equivalents
Money market funds 340 - 340
Total assets 4,138 - 4,138
Liabilities
Derivative financial instruments - 279 279
Total liabilities - 279 279 The value of the financial
instruments traded in active markets is based on the quoted market prices at the Statement of Financial Position date. A market
is regarded as active if quoted prices are regularly available from a stock exchange, broker, sector-specific institution or regulatory
agency, and those prices represent current and regularly occurring market transactions on an arms’ length basis. The quoted
market price used for financial assets held by the Company is the current bid price. These instruments are included in level 1. The fair value of
financial instruments that are not traded in active markets is determined by using valuation techniques. These valuation techniques
maximize the use of observable market data, where it is 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 are observable, 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 ROFEX S.A. If one or more of
the significant variables used to determine fair value are not observable 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 estimates

6 Critical accounting estimates and judgments12 Months Ended
Dec. 31, 2020
Critical Accounting Estimates And Judgments
Critical accounting estimates and judgmentsNote 6 | Critical accounting estimates and judgments The 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 continually 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) customer categories that remain
unpaid 7 working days after their first due dates. The Company’s Management records an allowance by 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 affected
neither the classification nor the 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. With regard to the
claim allowed in RDSA’s reorganization proceedings, the Company has carried out the analysis of recoverability thereof under
the expected loss model set forth in IFRS 9, and has concluded that as of December 31, 2020 the value of the receivable is nil,
inasmuch as any result subsequent to its sale, according to the above-mentioned standard, must be charged in the period in which
it occurs.
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 the long-lived assets, which is measured as the higher of value in use and fair value less costs to sell
at the end of the period, 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 form 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
to maintain the service quality levels required by the Regulatory authority, and (v) macroeconomic variables, including, growth
rates, inflation rates and foreign currency exchange rates, among others. The Company has made
its projections under the assumption that in the next few years it will obtain the delayed electricity rates updates to which it
is entitled in accordance with the applicable regulations, using a Discount rate (WACC) in dollars of 12.16%. On December 16, 2020, DNU
1020/2020 was issued, which provides for the following:
• Renegotiation of the RTI in force;
• Maximum renegotiation period of 2 years;
• Suspension of the agreements relating to the RTIs in force, with the scope to be determined by each Regulatory Authority;
• Within the renegotiation process, transitional tariff adjustments may be provided for, aimed at the continuity and normal provision of the public services involved;
• Continuation of the rate freeze for an additional term of 90 days, until March 31, 2021, or until the new transitional electricity rate schedules resulting from the Transitional Tariff System come into effect;
• Extension of the ENRE’s intervention for a term of 1 year or until the completion of the tariff review renegotiation, whichever occurs first. However, given the
complexity of the country’s macroeconomic scenario, exacerbated by the effects of the pandemic, 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) Scenario No. 1: The Company forecasts that the CPD increases will be transferred to tariffs as from January 2022. Furthermore, from February 2022 the CPD adjustments for each period would be transferred to tariffs. Probability of occurrence assigned 30%.
b) Scenario No. 2: The breach of the RTI would occur with no recovery of increases not applied. Moreover, in January 2022, the Company forecasts that a percentage lower than that resulting from the CPD increases set by the RTI and which had not been applied, will be transferred to tariffs. This scenario is in line (although with certain differences) with the present value agreed upon by edenor
c) Scenario No. 3: Breach of the RTI. The Company forecasts that in January 2022 it will transfer to tariffs the inflation rate of 2021. As from August 2022, it is expected that the semiannual adjustments determined according to the RTI formula will be transferred to tariffs. Furthermore, it is forecast that Government subsidies to partially cover the Company’s monthly disbursements during 2021 and 2022 will be received, in line with similar measures implemented in the past when the Company faced a similar situation. Probability of occurrence assigned 5%. The Company has assigned
to these three scenarios the previously detailed probability of occurrence percentages based mainly on experience and giving consideration
to the current economic and financial situation. A discount rate (WACC)
in pesos was used in all the scenarios, based on the previously indicated rate in dollars, which varies for each year of the projection. After having carried
out the analysis of recoverability of long-lived assets, as of the date of these financial statements, the Company has recorded
an impairment of property, plant and equipment for $ 17,396 million. Sensitivity analysis: The main factors that
could result in impairment charges or recoveries in future periods are: i) a difference in the nature, timing, and modality of
the electricity rate increases and/or recognition of cost adjustments, ii) a distortion in the nature, timing, and modality of
the settlement of the debt with CAMMESA and/or in the application of the system for the settlement of debts with the MEM. 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 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.e).
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 (Loss) Income, Changes in Equity and Cash Flows.

7 Interest in joint venture

7 Interest in joint venture12 Months Ended
Dec. 31, 2020
Interest In Joint Venture
Interest in joint ventureNote 7 | Interest in joint venture
Percentage interest held Equity attributable to the owners
in
capital stock and votes 12.31.20 12.31.19
SACME 50.00% 11 15

8 Contingencies and lawsuits

8 Contingencies and lawsuits12 Months Ended
Dec. 31, 2020
Contingencies And Lawsuits
Contingencies and lawsuitsNote 8 | Contingencies and lawsuits The 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, 2020 total $ 2,431.5 million, for which
a provision has been recorded.

9 Revenue from sales and energy

9 Revenue from sales and energy purchases12 Months Ended
Dec. 31, 2020
Revenue From Sales And Energy Purchases
Revenue from sales and energy purchasesNote 9 | Revenue from sales and energy purchases We provide below
a brief description of the main services provided by the Company: Sales of electricity
Small demand segment: Residential use and public lighting (T1) Relates to the highest demand average recorded over 15 consecutive minutes that is less than 10 kilowatts. In turn, this segment is subdivided into different residential categories based on consumption. This segment also includes a category for public lighting. Users are categorized by the Company according to their consumption.
Medium demand segment: Commercial and industrial customers (T2) Relates to the highest demand average recorded over 15 consecutive minutes that is equal to or greater than 10 Kilowatts but less than 50 Kilowatts. The Company agrees with the user the supply capacity.
Large demand segment (T3) Relates to the highest demand average recorded over 15 consecutive minutes that is greater than 50 Kilowatts. In turn, this segment is subdivided into categories according to the supply voltage -low, medium or high-, from voltages of up to 1 Kilovolt to voltages greater than 66 Kilovolts.
Other: (Shantytowns/ Wheeling system) Revenue is recognized to the extent that a renewal of the Framework Agreement has been formalized for the period in which the service was rendered. In the case of the service related to the Wheeling system, revenue is recognized when the Company allows third parties (generators and large users) to access to the available transmission capacity within its distribution system upon payment of a wheeling fee. Other services
Right of use of poles Revenue is recognized to the extent that the rental value of the right of use of the poles used by the Company’s electricity network has been agreed upon for the benefit of third parties.
Connection and reconnection charges Relate to revenue accrued for the carrying out of the electricity supply connection of new customers or the reconnection of already existing users. Energy purchases
Energy purchase The Company bills its users the cost of its purchases of energy, which includes charges for purchases of energy and power. The Company purchases electric power at seasonal prices approved by the ENRE. The price of the Company’s electric power represents transmission costs and other regulatory charges.
Energy losses Energy losses are equivalent to the difference between energy purchased and energy sold. These losses can be classified into technical and non-technical losses. Technical losses represent the energy lost during transmission and distribution within the network as a consequence of the natural heating of the conductors and transformers that carry electricity from power generation plants to users. Non-technical losses represent the remainder of the Company’s energy losses and are mainly due to the illegal use of its services or the theft of energy. Energy losses require that the Company purchase additional energy in order to meet the demand and its Concession Agreement allows it to recover from its users the cost of these purchases up to a loss factor specified in its concession for each rate category. The current loss factor recognized in the tariff by virtue of its concession amounts to approximately 9.1%.
12.31.20 12.31.19 12.31.18
GWh $ GWh $ GWh $
Sales of electricity
Small demand segment: Residential use and public lighting (T1) 11,600 57,356 10,768 72,579 11,482 78,952
Medium demand segment: Commercial and industrial (T2) 1,341 10,544 1,549 15,975 1,668 12,658
Large demand segment (T3) 3,210 19,830 3,503 31,947 3,646 23,579
Other: (Shantytowns/Wheeling system) 4,028 3,112 4,154 1,431 4,376 1,379
Subtotal - Sales of electricity 20,179 90,842 19,974 121,932 21,172 116,568
Other services
Right of use of poles 421 386 398
Connection and reconnection charges 53 119 154
Subtotal - Other services 474 505 552
Total - Revenue 91,316 122,437 117,120
12.31.20 12.31.19 12.31.18
GWh $ GWh $ GWh $
Energy purchases (1) 25,124 (57,930) 24,960 (77,649) 25,906 (66,721)
(1) As of December 31, 2020, 2019 and 2018, includes technical and non-technical energy losses for 4,945 GWh, 4,986 GWh and 4,734 GWh, respectively

10 Expenses by nature

10 Expenses by nature12 Months Ended
Dec. 31, 2020
Expenses by nature [abstract]
Expenses by natureNote 10 | Expenses by nature The detail of expenses by
nature is as follows:
Expenses
by nature at 12.31.20
Description Transmission
and distribution expenses Selling expenses Administrative
expenses Total
Salaries and social security taxes 7,756 1,287 2,272 11,315
Pension plans 327 54 96 477
Communications expenses 218 444 - 662
Allowance for the impairment of trade and other receivables - 4,183 - 4,183
Supplies consumption 1,878 - 148 2,026
Leases and insurance 1 1 315 317
Security service 306 32 35 373
Fees and remuneration for services 3,900 2,169 1,534 7,603
Public relations and marketing - 19 - 19
Advertising and sponsorship - 10 - 10
Reimbursements to personnel - - 1 1
Depreciation of property, plants and 5,118 762 626 6,506
Depreciation of right-of-use asset 32 64 225 321
Directors and Supervisory Committee - - 28 28
ENRE penalties 330 365 - 695
Taxes and charges - 1,453 64 1,517
Other - - 9 9
At
12.31.20 19,866 10,843 5,353 36,062
(1) Includes recovery of technical service quality-related penalties of six-month control periods Nos. 47 and 48 for $ 700.8 million, due to the fact that quality levels were better than estimated. 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,
2020 for $ 1,846 million.
Expenses
by nature at 12.31.19
Description Transmission
and distribution expenses Selling expenses Administrative
expenses Total
Salaries and social security taxes 8,666 1,424 1,819 11,909
Pension plans 260 43 54 357
Communications expenses 113 504 23 640
Allowance for the impairment of trade and other receivables - 1,844 - 1,844
Supplies consumption 2,200 - 156 2,356
Leases and insurance - - 308 308
Security service 323 58 126 507
Fees and remuneration for services 3,481 2,203 1,856 7,540
Public relations and marketing - 56 - 56
Advertising and sponsorship - 29 - 29
Reimbursements to personnel - - 1 1
Depreciation of property, plants and equipments 4,952 738 605 6,295
Depreciation of right-of-use asset 22 45 156 223
Directors and Supervisory Committee - - 30 30
ENRE penalties 1,963 1,806 - 3,769
Taxes and charges - 1,257 68 1,325
Other - - 21 21
At
12.31.19 21,980 10,007 5,223 37,210 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 $ 1,533.5 million.
Expenses
by nature at 12.31.18
Description Transmission
and distribution expenses Selling expenses Administrative
expenses Total
Salaries and social security taxes 9,066 1,627 1,914 12,607
Pension plans 169 30 36 235
Communications expenses 170 564 34 768
Allowance for the impairment of trade and other receivables - 2,046 - 2,046
Supplies consumption 1,654 - 257 1,911
Leases and insurance 1 - 377 378
Security service 286 4 269 559
Fees and remuneration for services 2,956 2,177 2,108 7,241
Public relations and marketing - - 67 67
Advertising and sponsorship - - 35 35
Reimbursements to personnel - - 1 1
Depreciation of property, plants and 4,217 629 516 5,362
Directors and Supervisory Committee - - 46 46
ENRE penalties 4,321 2,202 - 6,523
Taxes and charges - 1,254 340 1,594
Other 2 1 12 15
At
12.31.18 22,842 10,534 6,012 39,388 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 $ 2,137.9 million.

11 Other operating income (expe

11 Other operating income (expense)12 Months Ended
Dec. 31, 2020
Other Operating Income
OTHER OPERATING INCOME AND EXPENSESNote 11 | Other operating income (expense)
Note 12.31.20 12.31.19 12.31.18
Other operating income
Income from customer surcharges 1,550 1,567 1,385
Commissions on municipal taxes collection 224 175 161
Fines to suppliers - 27 161
Services provided to third parties 240 245 -
Related parties 35.a 43 27 93
Income from non-reimbursable customer 26 9 12
Other 46 91 91
Total other operating income 2,200 2,364 1,903
Other operating expense
Gratifications for services (51) (262) (155)
Cost for services provided to third parties (96) (132) (110)
Severance paid (25) (29) (35)
Debit and Credit Tax (818) (1,079) (1,245)
Provision for contingencies (683) (1,861) (1,516)
Disposals of property, plant and equipment (151) (86) (281)
Refund of fines to suppliers (129) - -
Other (92) (30) (96)
Total other operating expense (2,045) (3,479) (3,438)
Other operating expense 155 (1,115) (1,535)
(1) Impairment charge of property, plant and equipment (Note 6.c).

12 Net finance costs

12 Net finance costs12 Months Ended
Dec. 31, 2020
Net Finance Costs
Net finance costsNote 12 | Net finance costs
Note 12.31.20 12.31.19 12.31.18
Financial income
Financial interest 25 75 72
Other interest 35.a 30 3 104
Total financial income 55 78 176
Finance costs
Commercial interest (5,986) (4,069) (6,191)
Interest and other (3,170) (5,106) (4,159)
Fiscal interest (109) (7) (48)
Bank fees and expenses (11) (23) (18)
Total finance costs (9,276) (9,205) (10,416)
Other financial results
Changes in fair value of financial assets 989 383 1,563
Net gain from the repurchase of 415 622 10
Exchange differences (2,955) (5,674) (5,506)
Adjustment to present value of receivables (129) (104) (1)
Recovery of provision for credit RDSA - - -
Other finance costs (210) (23) (180)
Total other finance costs (1,890) (4,796) (4,114)
Total net finance costs (11,111) (13,923) (14,354)

13 Basic and diluted (loss) pro

13 Basic and diluted (loss) profit per share12 Months Ended
Dec. 31, 2020
Basic and diluted (loss) profit per share:
Basic and diluted (loss) profit per shareNote 13 | Basic and diluted (loss) profit per share Basic The basic earnings
per share is calculated by dividing the (loss) profit attributable to the holders of the Company’s equity instruments by
the weighted average number of common shares outstanding as of December 31, 2020 and 2019, 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.
12.31.20 12.31.19 12.31.18
(Loss) Profit for the period attributable to the owners of the Company (17,698) 16,518 8,995
Weighted average number of common shares outstanding 875 875 890
Basic and diluted profit
per share – in pesos (*) (20.23) 18.88 10.11 (*) As of December
31, 2019, includes the result of the Agreement on the Regularization of Obligations.

14 Property, plant and equipmen

14 Property, plant and equipment12 Months Ended
Dec. 31, 2020
Property, plant and equipment [abstract]
Property, plant and equipmentNote 14 | Property, plant and equipment
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 12.31.19
Cost 3,256 29,997 85,400 36,386 5,445 30,770 331 191,585
Accumulated depreciation (623) (9,341) (28,087) (12,193) (3,447) - - (53,691)
Net
amount 2,633 20,656 57,313 24,193 1,998 30,770 331 137,894
Additions 42 1,271 144 293 725 8,511 87 11,073
Disposals - (2) (52) (97) - - - (151)
Transfers 347 4,187 4,148 2,550 101 (11,238) (95) -
Depreciation for the year (93) (1,192) (3,021) (1,542) (658) - - (6,506)
Impairment - (3,982) (9,355) (4,059) - - - (17,396)
Net
amount 12.31.20 2,929 20,938 49,177 21,338 2,166 28,043 323 124,914
At 12.31.20
Cost 3,644 31,469 80,175 35,036 6,271 28,043 323 184,961
Accumulated depreciation (715) (10,531) (30,998) (13,698) (4,105) - - (60,047)
Net
amount 2,929 20,938 49,177 21,338 2,166 28,043 323 124,914
· During the year ended December 31, 2020, the Company capitalized as direct own costs $ 1,846 million.
· Includes $ 1,453.2 million in additions, related to a 500/220 Kw - 800 MVA transformer bank in General Rodriguez transformer station (section 8, item 8.2 of the agreement entered into by the Company, the BICE bank and CAMMESA on April 24, 2014); with a contra-account in Deferred revenue.
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 12.31.18
Cost 3,034 28,822 79,671 32,967 5,561 28,070 409 178,534
Accumulated depreciation (510) (8,319) (25,479) (10,804) (2,648) - - (47,760)
Net
amount 2,524 20,503 54,192 22,163 2,913 28,070 409 130,774
Additions 49 10 213 393 1,410 11,293 133 13,501
Disposals - - (10) (72) (4) - - (86)
Transfers 172 1,165 5,866 3,127 (1,526) (8,593) (211) -
Depreciation for the year (112) (1,022) (2,948) (1,418) (795) - - (6,295)
Net
amount 12.31.19 2,633 20,656 57,313 24,193 1,998 30,770 331 137,894
At 12.31.19
Cost 3,256 29,997 85,400 36,386 5,445 30,770 331 191,585
Accumulated depreciation (623) (9,341) (28,087) (12,193) (3,447) - - (53,691)
Net
amount 2,633 20,656 57,313 24,193 1,998 30,770 331 137,894
· During the year ended December 31, 2019, the Company capitalized as direct own costs $ 1,533.5 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 2,881 28,198 76,254 31,496 5,247 18,248 190 162,514
Accumulated depreciation (430) (7,476) (23,548) (9,710) (1,910) - - (43,074)
Net
amount 2,451 20,722 52,706 21,786 3,337 18,248 190 119,440
Additions 39 238 797 108 1,081 15,362 272 17,897
Disposals - (5) (198) (75) (923) - - (1,201)
Transfers 187 393 3,339 1,487 187 (5,540) (53) -
Depreciation for the year (153) (845) (2,452) (1,143) (769) - - (5,362)
Net
amount 12.31.18 2,524 20,503 54,192 22,163 2,913 28,070 409 130,774
At 12.31.18
Cost 3,034 28,822 79,671 32,967 5,561 28,070 409 178,534
Accumulated depreciation (510) (8,319) (25,479) (10,804) (2,648) - - (47,760)
Net
amount 2,524 20,503 54,192 22,163 2,913 28,070 409 130,774
· During the year ended December 31, 2018, the Company capitalized as direct own costs $ 2,137.9 million.

15 Financial instruments

15 Financial instruments12 Months Ended
Dec. 31, 2020
Disclosure of detailed information about financial instruments [abstract]
Financial instrumentsNote 15 | Financial instruments Note
15.1 | 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, 2020
Assets
Trade receivables 14,151 - - 14,151
Other receivables 340 - 326 666
Cash and cash equivalents
Cash and Banks 1,638 - - 1,638
Money market funds - 2,724 - 2,724
Financial assets at fair value through profit or loss:
Government bonds - 2,222 - 2,222
Financial assets at amortized cost:
Government bonds 317 - - 317
Total 16,446 4,946 326 21,718
As of December 31, 2019
Assets
Trade receivables 16,961 - - 16,961
Other receivables 429 - - 429
Cash and cash equivalents - -
Cash and Banks 218 - - 218
Financial assets at fair value through profit or loss:
Money market funds - 3,798 - 3,798
Total 17,608 3,798 - 21,406
Financial
liabilities at amortized cost Financial
liabilities at fair value through profit or loss Total
As of December 31, 2020
Liabilities
Trade payables 33,540 - 33,540
Other payables 9,284 - 9,284
Borrowings 8,404 - 8,404
Derivative financial instruments - 1 1
Total 51,228 - 51,228
As of December 31,
2019
Liabilities
Trade payables 17,791 - 17,791
Other payables 10,367 - 10,367
Borrowings 13,418 - 13,418
Total 41,576 - 41,576 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, 2020
Interest income 55 - 55
Exchange differences 570 579 1,149
Changes in fair value of financial assets - 989 989
Corporate Notes 415 - 415
Total 1,040 1,568 2,608
As of December 31, 2019
Interest income 78 - 78
Exchange differences 830 1,456 2,286
Changes in fair value of financial assets - 383 383
Adjustment to present value 622 - 622
Total 1,530 1,839 3,369
As of December 31, 2018
Interest income 1,406 - 1,406
Exchange differences 6,000 - 6,000
Bank fees and expenses (18) - (18)
Changes in fair value of financial assets - 1,563 1,563
Adjustment to present value (1) - (1)
Total 7,387 1,563 8,950 Note
15.2 | 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:
12.31.20 12.31.19
Customers with no external credit rating:
Group 1(i) 10,437 14,376
Group 2 (ii) 864 721
Group 3 (iii) 2,850 1,864
Total trade receivables 14,151 16,961 (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.

16 Right-of-use asset

16 Right-of-use asset12 Months Ended
Dec. 31, 2020
Right-of-use Asset
Right-of-use assetNote 16 | Right-of-use asset The 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. The leases recognized as right-of-use assets
in accordance with IFRS 16 are disclosed below:
12.31.20 12.31.19
Total
right-of-use asset by leases 280 355 The development of right-of-use assets
is as follows:
12.31.20 12.31.19
Balance at beginning of year 355 -
Incorporation by adoption of IFRS 16 - 574
Additions 246 4
Depreciation for the year (321) (223)
Balance at end of the year 280 355

17 Other receivables

17 Other receivables12 Months Ended
Dec. 31, 2020
Other Receivables
Other receivablesNote 17 | Other receivables
Note 12.31.20 12.31.19
Non-current:
Credit for Real estate asset 2,151 2,894
Financial credit 14 30
Related parties 35.d 3 5
Allowance for the impairment of other receivables (2,126) (2,894)
Total non-current 42 35
Current:
Credit for Real estate asset 38 36 82
Judicial deposits 77 93
Security deposits 38 34
Prepaid expenses 43 21
Advances to personnel 2 -
Financial credit 18 61
Advances to suppliers 73 -
Tax credits 326 20
Related parties 35.d 19 35
Subtotal 632 346
Debtors for complementary activities 69 137
Allowance for the impairment of other receivables (77) (89)
Total current 624 394 The value 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:
12.31.20 12.31.19
Balance at beginning of year 2,983 162
Increase (1) 93 2,935
Result from exposure to inlfation (790) (58)
Recovery (83) (56)
Balance at end of the year 2,203 2,983 (1)
As of December 31, 2019, the impairment charge was
charged to finance costs, net of the receivable revaluation. The aging analysis
of these other receivables is as follows:
12.31.20 12.31.19
Without expiry date 134 160
Past due 65 69
Up to 3 months 83 125
From 3 to 6 months 317 20
From 6 to 9 months 11 16
From 9 to 12 months 14 4
More than 12 months 42 35
Total other receivables 666 429 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.

18 Trade receivables

18 Trade receivables12 Months Ended
Dec. 31, 2020
Trade Receivables
Trade receivablesNote 18 | Trade receivables
12.31.20 12.31.19
Current:
Sales of electricity – Billed 12,304 10,501
Framework Agreement (1) 9 12
Receivables in litigation 300 293
Allowance for the impairment of trade receivables (4,605) (2,105)
Subtotal 8,008 8,701
Sales of electricity – Unbilled 5,812 7,884
PBA & CABA government credit 329 342
Fee payable for the expansion of the transportation and others 2 34
Total current 14,151 16,961
(1) As of December 31, 2020, the Province of Buenos Aires and the Federal Government have a debt with the Company for the consumption of electricity by low-income areas and shantytowns. The indicated amount does not include interest and no revenue for this concept has been recognized by the Company . See Note 2.f). The value 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:
12.31.20 12.31.19
Balance at beginning of the year 2,105 1,887
Increase 4,173 1,858
Decrease (615) (1,050)
Result from exposure to inlfation (1,058) (590)
Balance at end of the year 4,605 2,105 The aging
analysis of these trade receivables is as follows:
12.31.20 12.31.19
Not due 9 11
Past due 3,714 2,586
Up to 3 months 10,428 14,364
Total trade receivables 14,151 16,961 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
12.31.20
Allowance 4,835
Variation 230
- 5% decrease in the uncollectibility rate estimate
12.31.20
Allowance 4,374
Variation (231)

19 Financial assets at fair val

19 Financial assets at fair value through profit or loss12 Months Ended
Dec. 31, 2020
Financial assets at fair value through profit or loss [abstract]
Financial assets at fair value through profit or lossNote 19 | Financial assets at fair value through profit or loss
12.31.20 12.31.19
Current
Government bonds 2,222 -
Money market funds - 3,798
Total current 2,222 3,798

20 Financial assets at amortize

20 Financial assets at amortized cost12 Months Ended
Dec. 31, 2020
Financial Assets At Amortized Cost
Financial assets at amortized costNote 20 | Financial assets at amortized cost
12.31.20 12.31.19
Non-current
Government bonds 239 -
Current
Government bonds 78 -

21 Inventories

21 Inventories12 Months Ended
Dec. 31, 2020
Inventories Abstract
InventoriesNote 21 | Inventories
12.31.20 12.31.19
Current
Supplies and spare-parts 1,839 2,524
Advance to suppliers 34 99
Total inventories 1,873 2,623

22 Cash and cash equivalents

22 Cash and cash equivalents12 Months Ended
Dec. 31, 2020
Cash and cash equivalents [abstract]
Cash and cash equivalentsNote 22 | Cash and cash equivalents
12.31.20 12.31.19
Cash and banks 1,638 218
Money market funds 2,724 340
Total cash and cash equivalents 4,362 558

23 Share capital and additional

23 Share capital and additional paid-in capital12 Months Ended
Dec. 31, 2020
Share Capital And Additional Paid-in Capital
Share capital and additional paid-in capitalNote 23 | Share capital and additional paid-in capital
Share
capital Additional
paid-in capital Total
Balance at December 31,
2020 and 2019 38,092 504 38,596 As of December 31,
2020, 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, forming part of the Merval Index, as well as on the NYSE, where each ADS
represents 20 common shares.

24 Allocation of profits

24 Allocation of profits12 Months Ended
Dec. 31, 2020
Allocation Of Profits
Allocation of profitsNote 24 | Allocation of profits The 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, 2020, the Company complies with the indebtedness 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.

25 The Company's Share-based Co

25 The Company's Share-based Compensation Plan12 Months Ended
Dec. 31, 2020
Share-based Compensation Plan
The Company's Share-based Compensation PlanNote 25 | The Company's Share-based Compensation Plan In 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 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 $ 103.3 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.

26 Trade payables

26 Trade payables12 Months Ended
Dec. 31, 2020
Trade Payables
Trade payablesNote 26 | Trade payables
Note 12.31.20 12.31.19
Non-current
Customer guarantees 274 290
Customer contributions 247 213
Total non-current 521 503
Current
Payables for purchase of electricity - CAMMESA 2.b 21,384 5,945
Provision for unbilled electricity purchases - CAMMESA 2.b 6,644 6,722
Suppliers 4,560 4,140
Advance to customer 362 388
Customer contributions 32 42
Discounts to customers 37 51
Total current 33,019 17,288 The fair values of
non-current customer contributions as of December 31, 2020 and 2019 amount to $ 42.8 million and $ 61.4 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. The value of the
rest of the financial liabilities included in the Company’s trade payables approximates their fair value

27 Other payables

27 Other payables12 Months Ended
Dec. 31, 2020
Other Payables
Other payablesNote 27 | Other payables
Note 12.31.20 12.31.19
Non-current
ENRE penalties and discounts 6,224 5,353
Financial Lease Liability (1) 61 119
Total Non-current 6,285 5,472
Current
ENRE penalties and discounts 2,675 4,610
Related parties 35.d 15 17
Advances for works to be performed 13 8
Payment agreements with ENRE - 66
Financial Lease Liability (1) 295 182
Other 1 12
Total Current 2,999 4,895 The value of the Company’s
other financial payables approximates their fair value.
(1) The development of the financial lease liability is as follows:
12.31.20 12.31.19
Balance at beginning of year 301 -
Incorporation by adoption of IFRS 16 - 574
Increase 246 4
Payments (686) (289)
Exchange difference and gain on net monetary position 495 12
Balance at end of the year 356 301 As of December 31,
2020, future minimum payments with respect to finance leases are those detailed below:
12.31.20 12.31.19
2021 296 188
2022 41 4
2023 20 -
Total
future minimum lease payments 357 192 The
Company has entered into contracts with certain cable television companies granting them the right to use the network poles. As
of December 31, 2020 and 2019, future minimum collections with respect to operating assignments of use are those detailed below .
12.31.20 12.31.19
2021 474 442
2022 472 -
Total
future minimum lease collections 946 442

28 Deferred revenue

28 Deferred revenue12 Months Ended
Dec. 31, 2020
Disclosure deferred revenue [abstract]
Deferred revenueNote 28 | Deferred revenue
12.31.20 12.31.19
Non-current
Nonrefundable customer contributions 1,471 368
Total Non-current 1,471 368
12.31.20 12.31.19
Current
Nonrefundable customer contributions 37 7
Total Current 37 7

29 Borrowings

29 Borrowings12 Months Ended
Dec. 31, 2020
Borrowings [abstract]
BorrowingsNote 29 | Borrowings
12.31.20 12.31.19
Non-current
Corporate notes (1) 8,261 11,159
Current
Interest from corporate notes 143 196
Borrowing - 2,063
Total current 143 2,259
(1) Net of debt issuance, repurchase and redemption expenses. The fair values of
the Company’s non-current borrowings as of December 31, 2020 and 2019 amount approximately to $ 6,778.7 million and $ 10,818.4
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. The Company’s
borrowings are denominated in the following currencies:
12.31.20 12.31.19
US dollars 8,404 13,418 The maturities of
the Company’s borrowings and its exposure to interest rate are as follow:
12.31.20 12.31.19
Fixed rate
Less than 1 year 143 196
From 1 to 2 years 8,261 -
From 2 to 5 years - 11,159
8,404 11,355
Floating rate
Less than 1 year - 2,063
- 2,063
8,404 13,418 The roll forward of
the Company’s borrowings during the year was as follows:
12.31.20 12.31.19
Balance at beginning of the year 13,418 17,311
Payment of borrowings' interests (918) (1,545)
Paid from repurchase of Corporate Notes (3,798) (2,084)
Payment of borrowings (750) (2,169)
Gain from repurchase of Corporate Notes (415) (622)
Exchange diference and interest accrued 4,051 9,104
Result from exposure to inlfation (3,184) (6,577)
Balance at the end of year 8,404 13,418 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
USD $
Corporate
Notes Class Rate Year
of Maturity Debt
structure at 12.31.19 Debt
repurchase Debt
structure at 12.31.20 At
12.31.20
Fixed Rate Par Note 9 9.75 2022 137 (39) 98 8,261
Total 137 (39) 98 8,261
USD $
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 166 (29) 137 11,159
Total 166 (29) 137 11,159 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 2020,
the Company repurchased at market prices, in successive transactions, “Fixed Rate Class 9 Par Corporate Notes” due
2022, for an amount of USD 38.8 million nominal value. On September 28, 2020,
the Company paid in the market the Corporate Notes it had in its portfolio, for a total of USD 78.1 million nominal value, equivalent
to $ 5,952.2 million. At the date of these financial statements, the Corporate Notes that remain outstanding amount to USD 98.2
million nominal value. Furthermore, on January
28, 2021, the Company paid Class 9 Corporate Notes for a total of USD 114,000 nominal value, equivalent to $ 9.6 million, received
as collection of receivables. Finally, due to that
which has been described in note 39 concerning the sale of the Company’s controlling shares, consideration should be given
to article 10.3 of the Class 9 Corporate Notes indenture, which provides that each Corporate Note holder will have the right to
require the Company to repurchase all or a portion of such holder’s corporate notes by submitting an Offer due to Change
of Control, at a price of 100% of the nominal value thereof, plus any accrued and unpaid interest at the settlement date. Additionally,
such article states that the aforementioned offer shall be made within 30 days following the occurrence of the change of control,
indicating the specific repurchase date, which shall take place between 30 and 60 days after the date on which the notice of offer
due to change of control has been sent. In this regard, the
Company has got in contact with different banks specializing in debt restructuring in order to assess the possible courses of
action, among which the following are being considered (i) requiring consent to an exemption from the change of control clause,
and (ii) offering a debt restructuring that would at the same time allow for the extension of the maturity terms, in addition
to any other alternative that the buyer of the majority shareholding in the Company may be evaluating in the case that the transaction
is perfected.

30 Salaries and social security

30 Salaries and social security taxes payable12 Months Ended
Dec. 31, 2020
Salaries And Social Security Taxes Payable
Salaries and social security taxes payableNote 30 | Salaries and social security taxes payable
a. Salaries and social security taxes payable
12.31.20 12.31.19
Non-current
Early retirements payable 24 54
Seniority-based bonus 279 273
Total non-current 303 327
Current
Salaries payable and provisions 3,376 2,866
Social security payable 332 374
Early retirements payable 26 38
Total current 3,734 3,278 The value 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
12.31.20 12.31.19 12.31.18
Salaries 8,147 8,574 9,077
Social security taxes 3,168 3,335 3,530
Total salaries and social security taxes 11,315 11,909 12,607 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, 2020 and 2019, amount to $ 26.1
million and $ 38.3 million (current) and $ 27 million and $ 53.8 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, 2020 and 2019, the related liabilities amount to $ 279.1 million and $ 273.7 million, respectively. As of December 31,
2020 and 2019, the number of employees amounts to 4,776 and 4,777, respectively.

31 Benefit plans

31 Benefit plans12 Months Ended
Dec. 31, 2020
Benefit Plans
Benefit plansNote 31 | Benefit plans The 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.
12.31.20 12.31.19
Non-current 749 713
Current 84 70
Total Benefit plans 833 783 The detail of the
benefit plan obligations as of December 31, 2020 and 2019 is as follows:
12.31.20 12.31.19
Benefit payment obligations at beginning of year 783 874
Current service cost 161 150
Interest cost 316 207
Actuarial losses (108) 10
Result from exposure to inflation for the year (305) (397)
Benefits paid to participating employees (14) (61)
Benefit payment obligations at end of year 833 783 As of December 31,
2020 and 2019, the Company does not have any assets related to post-retirement benefit plans. The detail of the
charge recognized in the Statement of Comprehensive (Loss) Income is as follows:
12.31.20 12.31.19 12.31.18
Cost 161 150 69
Interest 316 207 166
Actuarial results - Other comprehensive (income) loss (108) 10 12
369 367 247 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:
12.31.20 12.31.19
Discount rate 5% 5%
Salary increase 1% 1%
Inflation 50% 31% Sensitivity analysis:
12.31.20
Discount Rate: 4%
Obligation 910
Variation 77
9%
Discount Rate: 6%
Obligation 767
Variation (66)
(8%)
Salary Increase : 0%
Obligation 764
Variation (69)
(8%)
Salary Increase: 2%
Obligation 913
Variation 80
10% The expected payments
of benefits are as follow:
In
2021 In
2022 In
2023 In
2024 In
2025 Between
2026 to 2030
At December 31, 2020
Benefit payment obligations 84 15 16 17 4 17 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, 2020. These benefits do
not apply to key management personnel.

32 Income tax and deferred tax

32 Income tax and deferred tax12 Months Ended
Dec. 31, 2020
Income Tax Deferred Tax
Income tax and deferred taxNote 32 | Income tax and deferred tax The detail of deferred tax assets and liabilities
is as follows:
12.31.19 Result
from exposure to inflation Charged
to Profit and loss Charged
to Other comprenhen- sive income 12.31.20
Deferred tax assets
Tax loss carryforward - - 248 - 248
Trade receivables and other receivables 754 (200) 797 - 1,351
Trade payables and other payables 819 (217) 75 - 677
Salaries and social security taxes payable 154 (40) 141 - 255
Benefit plans 147 (39) 1 (33) 76
Tax liabilities 25 (7) 1 - 19
Provisions 916 (243) 145 - 818
Deferred tax asset 2,815 (746) 1,408 (33) 3,444
Deferred tax liabilities:
Property, plant and equipment (26,740) 7,098 (3,741) - (23,383)
Financial assets at fair value through profit or loss (283) 75 (90) - (298)
Borrowings (5) 2 1 - (2)
Tax inflation adjustment (3,087) 820 (1,203) - (3,470)
Deferred tax liability (30,115) 7,995 (5,033) - (27,153)
Net deferred tax liability (27,300) 7,249 (3,625) (33) (23,709)
12.31.18 Result
from exposure to inflation Charged
to Profit and loss Charged
to Other comprenhen- sive income 12.31.19
Deferred tax assets
Tax loss carryforward - - - - -
Inventories - - - - -
Trade receivables and other receivables 932 (326) 148 - 754
Trade payables and other payables 4,092 (1,431) (1,842) - 819
Salaries and social security taxes payable 103 (36) 87 - 154
Benefit plans 222 (78) - 3 147
Tax liabilities 33 (11) 3 - 25
Provisions 724 (253) 445 - 916
Deferred tax asset 6,106 (2,135) (1,159) 3 2,815
Deferred tax liabilities:
Property, plant and equipment (22,498) 7,867 (12,109) - (26,740)
Financial assets at fair value through profit or loss (445) 156 6 - (283)
Borrowings (9) 3 1 - (5)
Tax inflation adjustment - - (3,087) - (3,087)
Deferred tax liability (22,952) 8,026 (15,189) - (30,115)
Net deferred tax liability (16,846) 5,891 (16,348) 3 (27,300)
12.31.17 Result
from exposure to inflation Charged
to profit and loss Charged
to other comprenhen- sive income 12.31.18
Deferred tax assets
Tax loss carryforward 113 (113) - - -
Inventories 28 (19) (9) - -
Trade receivables and other receivables 1,006 (775) 701 - 932
Trade payables and other payables 889 1,586 1,617 - 4,092
Salaries and social security taxes payable (201) 273 31 - 103
Benefit plans 459 (270) 29 4 222
Tax liabilities 117 (91) 7 - 33
Provisions (1,143) 1,580 287 - 724
Deferred tax asset 1,268 2,171 2,663 4 6,106
Deferred tax liabilities:
Property, plant and equipment (15,628) 1,890 (8,760) - (22,498)
Financial assets at fair value through profit or loss (809) 785 (421) - (445)
Borrowings (91) 80 2 - (9)
Deferred tax liability (16,528) 2,755 (9,179) - (22,952)
Net deferred tax liability (15,260) 4,926 (6,516) 4 (16,846)
12.31.20 12.31.19 12.31.18
Deferred tax assets:
To be recover in more than 12 months 3,444 2,815 6,105
Deferred tax asset 3,444 2,815 6,105
Deferred tax liabilities:
To be recover in more than 12 months (27,153) (30,115) (22,952)
Deferred tax liability (27,153) (30,115) (22,952)
Net deferred tax liability (23,709) (27,300) (16,847) 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:
12.31.20 12.31.19 12.31.18
Deferred tax 3,624 (10,457) (1,590)
Current tax - (3,953) (2,333)
Difference between provision and tax return (61) (120) (7)
Income tax expense 3,563 (14,530) (3,930)
12.31.20 12.31.19 12.31.18
(Loss) Profit for the year before taxes (21,261) 31,048 12,925
Applicable tax rate 30% 30% 30%
Result for the year at the tax rate 6,378 (9,314) (3,878)
Gain on net monetary position (1,339) (2,613) (2,108)
Adjustment effect on tax inflation (2,225) (3,818) -
Income tax expense 810 1,232 464
Change in the income tax rate - - 1,599
Difference between provision and tax return (61) (17) (7)
Income
tax expense 3,563 (14,530) (3,930) The income tax payable, net
of withholdings is detailed below.
12.31.20 12.31.19
Current
Tax payable - 3,953
Tax withholdings - (1,272)
Total current - 2,681

33 Tax liabilities

33 Tax liabilities12 Months Ended
Dec. 31, 2020
Tax Liabilities
Tax liabilitiesNote 33 | Tax liabilities
12.31.20 12.31.19
Non-current
Current
Provincial, municipal and federal contributions and taxes 459 244
VAT payable 920 1,772
Tax withholdings 171 200
SUSS withholdings 10 11
Municipal taxes 233 188
Total current 1,793 2,415

34 Provisions

34 Provisions12 Months Ended
Dec. 31, 2020
Provisions [abstract]
ProvisionsNote 34 | Provisions
Non-current
liabilities Current
liabilities
At 12.31.19 2,808 291
Increases 1,107 163
Decreases (105) (12)
Recovery (587) -
Result from exposure to inflation for the year (792) (84)
At 12.31.20 2,431 358
At 12.31.18 2,240 392
Increases 1,687 174
Decreases (28) (105)
Result from exposure to inflation for the year (1,091) (170)
At 12.31.19 2,808 291

35 Related-party transactions

35 Related-party transactions12 Months Ended
Dec. 31, 2020
Related party transactions [abstract]
Related-party transactionsNote 35 | Related-party transactions The following transactions were carried out with
related parties:
a. Income
Company Concept 12.31.20 12.31.19 12.31.18
PESA Impact study 40 27 -
Electrical assembly service - - 23
SACDE Reimbursement expenses 3 - 70
43 27 93
b. Expense
Company Concept 12.31.20 12.31.19 12.31.18
PESA Technical advisory services on financial matters (206) (185) (180)
SACME Operation and oversight of the electric power transmission system (102) (113) (171)
OSV Hiring life insurance for staff (27) (27) (41)
SB&WM Abogados Legal fees (13) - -
FIDUS Legal fees (4) (1) -
ABELOVICH, POLANO& ASOC. Legal fees (1) (2) (3)
(353) (328) (395) On October 30, 2020,
the Company’s Board of Directors resolved to extend the term of the Technical Advisory Agreement with PESA for a term of
five years to commence as from September 19, 2020. Except for the term of the agreement, the other conditions remain unchanged
with respect to the duly approved addenda in 2010 and 2015, described in Note 36 to the Financial Statements as of December 31,
2019.
c. Key Management personnel’s remuneration
12.31.20 12.31.19 12.31.18
Salaries 322 401 406 The balances with related parties are as follow:
d. Receivables and payables
12.31.20 12.31.19
Other receivables - Non current
SACME 3 5
Other receivables - Current
FIDUS SGR 18 34
SACME 1 1
19 35
Other payables
SACME (15) (17) 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. The agreements with
related parties that were in effect throughout fiscal year 2020 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 the 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 2020 amounted to $ 102 million. Agreement with PESA The agreement comprises
the provision to the Company of technical advisory services on financial matters. It expires in 2025, but may 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 2020 amounted to $ 27 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. Furthermore, on December
21, 2020, the contribution made as protector partner was refunded to the Company. SACDE Throughout 2018, by
virtue of the agreement entered into by and 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’s Concession Agreement, the entire
cost of the removals in question is to be borne by the requesting party; therefore, the Projects and Permits Area of the Company’s
Operations Department prepared the related works budgets in accordance with the Price List in effect, with the related percentages
for contingencies and edenor’s fee for the Project, works oversight and associated electric operations, in addition to the
estimated time period for the completion of the works. Given that SACDE is a related party under the terms of the Law on Capital
Markets, the aforementioned works contracts were approved by the Board of Directors at the Board meetings held on April 25, 2018
and January 30, 2019. CREAURBAN S.A. In April 2020, the
Company and CREAURBAN S.A. entered into an agreement on the execution of the architectural project work in the Company’s
new Tigre sector located at 940 Austria Norte. In October 2020, an amendment to the original agreement was made, pursuant to which
the originally agreed-upon deadlines, amounts and scope were extended. The total values of the aforementioned work, which is expected
to reach completion on December 31, 2021, amount to $ 349.3. As of December 31, 2020, the Company has made a down payment of $
26.5 million.

36 Keeping of documentation

36 Keeping of documentation12 Months Ended
Dec. 31, 2020
Keeping Of Documentation
Keeping of documentationNote 36 | Keeping of documentation On 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. 2,013, as amended) is available
at the Company’s registered office.

37 Ordinary and Extraordinary S

37 Ordinary and Extraordinary Shareholders' Meeting12 Months Ended
Dec. 31, 2020
Ordinary And Extraordinary Shareholders Meeting
Ordinary and Extraordinary Shareholders' MeetingNote 37 | Ordinary and Extraordinary Shareholders’ Meeting The Company Ordinary
and Extraordinary Shareholders’ Meeting held on April 28, 2020 resolved, among other issues, the following:
- To approve edenor’s
- To allocate the $ 13,088.1 million profit for the year ended December 31, 2019 (at the purchasing power of the currency at December 31, 2020 amounts to $ 16,518 million) to the:
· Statutory reserve: $ 654.4 million (at the purchasing power of the currency at December 31, 2020 amounts to $ 826 million);
· Discretionary reserve: $ 12,433.7 million (at the purchasing power of the currency at December 31, 2020 amounts to $ 15,692 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;
- To approve the amendment of Sections Nos. 13, 19, 23, 25 and 33 of the By-laws, subject to the approval of the ENRE and any other relevant administrative authority;
- To approve the consolidated text of the By-laws with the proposed amendments.

38 Termination of agreement on

38 Termination of agreement on real estate asset12 Months Ended
Dec. 31, 2020
Termination Of Agreement On Real Estate Asset
Termination of agreement on real estate assetNote 38 | Termination of agreement on real estate asset With 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, and with respect to the settlement agreement dated September 30, 2019 that the Company entered into with Aseguradores
de Cauciones S.A., the following recent events stand out:
- With regard to the USD 1 million receivable resulting from the agreement with Aseguradora de Cauciones S.A., the Company has received to date the payment of USD 370,000. The remaining balance for USD 630,000 will be collected in five quarterly installments according to a new payment schedule agreed upon between the Company and the insurance company.
- With regard to RDSA reorganization proceedings, the Company has filed ancillary proceedings for review of the amount declared inadmissible, relating to the contractually agreed-upon penalty clause. The ancillary proceedings for review have been rejected by the Court, decision which the Company has appealed to the Court of Appeals in Commercial Matters, where it is pending resolution. Due to the pandemic declared by the WHO on March 11, 2020 and the mandatory and preventive social isolation ordered by DNU 297/2020, and the subsequent extensions thereof, the originally set procedural time limits have been extended, with the exclusivity period in order for the reorganization debtor to propose one or more reorganization plans and obtain the consent required by law for the confirmation of the eventual agreement being currently underway. Finally, as a result
of the assessment of different alternatives aimed at the recovery of the referred to claim, on January 18, 2021, the Company’s
Board of Directors accepted the “Offer for the Assignment of the Claim in Litigation” made by Creaurban S.A., whereby
edenor By virtue of the assignment,
Creaurban S.A. will assume the consequences and results deriving from the Reorganization proceedings, the Claim in Litigation and/or
any other action or arrangement deriving from the claim to collect the Claim in Litigation; whereas the Company agrees to immediately
give Creaurban S.A., with no deductions whatsoever, any amount or assets received on account of the referred to claim. The assignment of the
claim was agreed for a value of: (i) $ 400 million, which was paid by Creaurban S.A. on January 27, 2021; plus (ii) an additional
contingent price determined in meters that will be of 30% of the square meters to which the holder of the claim would be entitled
if an Internal Rate of Return of at least 15% per annum after taxes were applied to the New Tower Project, after having deducted
the New Tower’s development and construction costs and the commitments of the trust and the repayment of the mortgage loan
with Banco Patagonia S.A. To be valid, the assignment was subject to the acceptance by Banco Comafi S.A. of an offer under similar
terms, condition which was met on January 19, 2021, with the offer of assignment thus becoming accepted by edenor The collected $400
million was recognized as a gain in January 2021, inasmuch as an allowance had been set up for the full amount of the claim in
litigation.

39 Change of control

39 Change of control12 Months Ended
Dec. 31, 2020
Change Of Control
Change of controlNote 39 | Change of control On December 28, 2020,
Pampa Energía S.A., the holder of 100% of edenor edenor By virtue of such
agreement, Pampa Energía agreed, subject to certain conditions precedent, such as the approval of both its shareholders’
meeting and the ENRE, to sell control of edenor edenor In this regard, on
February 17, 2021, the Shareholders’ meeting of Pampa Energía approved the referred to transaction, whereas at the
date of issuance of these financial statements the Regulatory Authority’s authorization is in process.

40 Financial Statements transla

40 Financial Statements translation into English language12 Months Ended
Dec. 31, 2020
Financial Statements Translation Into English Language
Financial Statements translation into English languageNote 40 | Financial Statements translation into English language These 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 (Policies

4 Accounting policies (Policies)12 Months Ended
Dec. 31, 2020
Accounting Policies
New accounting standards, amendments and interpretations issued by the IASBNote 4.1 | New accounting standards, amendments and interpretations issued by the IASB, that are effective as of December 31, 2020 and have been adopted by the Company The
Company has first applied the following standards and/or amendments s
from January 1, 2020: - IFRS 16 “Leases”
(amended in May 2020). There are no new IFRS
or IFRIC applicable as from this fiscal year that have a material impact on the Company’s financial statements. New
accounting standards, amendments and interpretations issued by the IASB that are not yet effective and have not been
early adopted by the Company - IFRS 17 “Insurance
contracts”, issued in May 2017 and amended in June 2020. It replaces IFRS 4, introduced as an interim standard in 2004, which
allowed entities to account for insurance contracts using their local accounting requirements, resulting in multiple application
approaches. IFRS 17 sets the principles for the recognition, measurement, presentation, and disclosure of insurance contracts,
and applies to annual periods beginning on or after January 1, 2023, allowing for its early adoption for entities already applying
IFRS 9 and IFRS 15. The Company estimates that the application thereof will impact neither the Company’s results of operations
nor its financial position. - IAS 1 “Presentation
of financial statements”, amended in January and July 2020. It incorporates amendments to the classification of liabilities
as current or non-current. The amendments apply to annual periods beginning on or after January 1, 2023, with early adoption permitted.
The application thereof will impact neither the Company’s results of operations nor its financial position. - IFRS 3 “Business
combinations”, amended in May 2020. It incorporates references to the definitions of assets and liabilities in the new Conceptual
Framework and clarifications on contingent assets and liabilities that are incurred separately from those assumed in a business
combination. It applies to business combinations as from January 1, 2022, with early adoption permitted. - Annual improvements
to IFRS – 2018-2020 Cycle: the amendments were issued in May 2020 and apply to annual periods beginning on or after January
1, 2022. The Company estimates that the application thereof will impact neither the Company’s results of operations nor its
financial position. - IAS 16 “Property,
plant and equipment”, amended in May 2020. It incorporates amendments to the recognition of inventories, sales and costs
of items produced while bringing an item of property, plant and equipment to the location and condition necessary for its intended
use. The amendments apply to annual periods beginning on or after January 1, 2022, with early adoption permitted. The Company is
currently analyzing the impact of the application of the amendments on the Company’s results of operations or its financial
position. - IAS 37 “Provisions,
contingent liabilities and contingent assets”, amended in May 2020. It clarifies the scope of the concept of cost of fulfilling
an onerous contract. The amendments apply to annual periods beginning on or after January 1, 2022, with early adoption permitted.
The Company estimates that the application thereof will impact neither the Company’s results of operations nor its financial
position. - Amendments to IFRS
9 “Financial instruments”, IAS 39 “Financial instruments: Presentation”, IFRS 7 “Financial instruments:
Disclosures””, IFRS 4 “Insurance contracts” and IFRS 16 “Leases”, amended in August 2020. They
provide guidelines for the measurement of financial assets and liabilities at amortized cost affected by the interest rate benchmark
reform. The amendments apply to annual periods beginning on or after January 1, 2021. The Company is currently analyzing the impact
of the application of the amendments on the Company’s results of operations or its financial position.
Property, plant and equipmentNote 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 necessarily takes a substantial period of time
to get ready for its intended use. These assets begin to be depreciated when they are in economic conditions of use. 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 venturesNote 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.
Revenue recognitionNote 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 negotiating the extensions of the Framework Agreement with the Federal and the Provincial Governments, as the case may be (Note
2.f). 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 also recognizes
revenue from other concepts included in distribution services, such as new connections, reconnections, rights of use on poles,
transportation of electricity to other distribution companies, inasmuch as the services are provided on the basis of the price
established in each contract. Revenue is not adjusted for the effect of the 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 Entity and the amount
of the transaction can be measured reliably. The classification
of commercial interest and surcharges in the Statement of Comprehensive (Loss) Income is modified, as the Company believes that
the concepts related to interest for delinquency in the payment of trade receivables and surcharges applied to customers due to
late payment or other associated penalties provide relevant information about the operation and operating cash flows of the business;
therefore, they are disclosed within the other operating income account. The Company’s Management believes this disclosure
reflects the impacts of the operating cycle, allowing for consistency with the treatment of other concepts such as the impairment
of receivables, particularly taking into consideration the current context detailed in Notes 1 and 2, which increased the delay
in the time taken to make payments, including in this last case the restriction on some measures aimed at limiting delays in payment
from customers.
Effects of the changes in foreign currency exchange ratesNote 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 Income. The foreign currency
exchange rates used are the selling rate for monetary assets and liabilities, and the specific exchange rate for foreign currency
denominated transactions.
Trade and other receivablesNote 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 it will not be able to collect all the amounts
owed to it in accordance with the original terms of the receivables. The rest of the other
receivables are initially recognized at the amount paid.
InventoriesNote 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.
Financial assetsNote 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.
Derivative financial instrumentsNote 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, 2020 and 2019, the economic impact of these transactions is recorded in the “Other finance costs” account
of the Statement of Comprehensive (Loss) Income. As of December 31,
2020 and 2019, the economic impact of the transactions carried out in those fiscal years resulted in losses of $ 77.4 million and
$ 286.9 million, respectively, which are recorded in the “Other finance costs” account of the Statement of Comprehensive
(Loss) Income.
Cash and cash equivalentsNote 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 rate 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.
EquityNote 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 (loss) gain 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. Retained earnings, where applicable,
are comprised of the 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 payablesNote 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 with the
principal amount plus any interest accrued thereon, after deducting, if appropriate, any amount owed by the customer to the Company.
c. Customer contributions Refundable
d. 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.e), and other provisions are the best estimate of
the settlement value of the present obligation in the framework of IAS 37 provisions at the closing 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.e.
BorrowingsNote 4.13 | Borrowings Borrowings are initially
recognized at fair value, less 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 revenueNote 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.
Employee benefitsNote 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 Company’s
accounting policy for benefit plans is as follow:
a. Service costs are immediately recorded in profit or loss, unless the changes to the benefit plan are conditional on the employees’ remaining in service for a specified period of time (the vesting period). In this case, past service costs are amortized on a straight-line basis over the vesting period.
b. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in “Other comprehensive income” in the year in which they arise.
· 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 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 taxNote 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 closing 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 nominal 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, 2020 and 2019, the IPC cumulative
variations for the 12 months of each year amounted to 36.13% and 53.77%, respectively, which exceed the 15% and 30% thresholds
fixed for the third and second transition years 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.
LeasesNote 4.17 | Leases Up until December
31, 2018, 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 in fiscal year 2019, 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 contingenciesNote 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 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 partiesNote 4.19 | Balances with related parties Receivables and payables
with related parties are recognized at amortized cost in accordance with the terms agreed upon by the parties involved.

2 Regulatory framework (Tables)

2 Regulatory framework (Tables)12 Months Ended
Dec. 31, 2020
Regulatory Framework
Schedule of electricity rate scheduleAt
the date of issuance of these financial statements, the Company has duly submitted to the ENRE the adjustment request of its Own
Distribution Costs (CPD), pursuant to the provisions of Appendix XV of ENRE Resolution No. 63/2017 “Procedure for determining
the electricity rate schedule”, in accordance with the following detail:
Period Date
of application CPD
adjustment
Jan.
19 - Jun. 19 Aug.
19 (1) 19.05%
Jul.
19 - Dec. 19 Feb.
20 24.65%
Jan.
20 - Jun. 20 Aug.
20 12.97% (1)
The CPD adjustment applicable in August 2019 was deferred until January 2020 by means of the Electricity Rate Schedule Maintenance
Agreement, and was finally not applied.

5 Financial risk management (Ta

5 Financial risk management (Tables)12 Months Ended
Dec. 31, 2020
Financial Risk Management
Schedule of balances in foreign currencyAs of December
31, 2020 and 2019, the Company’s balances in foreign currency are as follow:
Currency Amount in foreign currency Exchange rate (1) Total Total
ASSETS
CURRENT ASSETS
Other receivables USD 6 84.150 505 82
JPY 55 0.816 45 -
Financial assets at fair value through profit or loss USD - 84.150 - 3,798
Cash and cash equivalents USD 17 84.150 1,431 164
EUR - 103.530 - 1
TOTAL CURRENT ASSETS 1,981 4,045
TOTAL ASSETS 1,981 4,045
LIABILITIES
NON-CURRENT LIABILITIES
Borrowings USD 98 84.150 8,261 11,159
TOTAL NON-CURRENT LIABILITIES 8,261 11,159
CURRENT LIABILITIES
Trade payables USD 11 84.150 962 738
EUR - 103.530 - 39
CHF - 95.413 - 21
NOK - 8.211 - 1
Borrowings USD 2 84.150 143 2,259
Other payables USD 9 84.150 757 739
TOTAL CURRENT LIABILITIES 1,862 3,797
TOTAL LIABILITIES 10,123 14,956
(1) The exchange rates used are the BNA exchange rates in effect as of December 31, 2020 for US Dollars (USD), Euros (EUR), Swiss Francs (CHF), Norwegian Krones (NOK) and Japanese Yens (JPY).
Schedule of exposure to currency riskThe
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.
12.31.20 12.31.19
Net
position
US dollar (8,187) (10,851)
Japanese Yen 45 -
Euro - (38)
Norwegian krone - (1)
Swiss franc - (21)
Total (8,142) (10,911)
Schedule of decrease in results of operationsThe
Company estimates that a 10% devaluation of the Argentine peso with respect to each foreign currency, with all other variables
held constant, would give rise to the following decrease in the (loss) profit for the year:
12.31.20 12.31.19
Net
position
US dollar (819) (1,085)
Euro - (4)
Swiss franc - (2)
Decrease
in the results of operations for the year (819) (1,091)
Schedule of 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:
12.31.20 12.31.19
Fixed rate:
US dollar 8,404 11,355
Floating rate:
US dollar - 2,063
Subtotal loans at floating rates - 2,063
Total loans 8,404 13,418 Based on the simulations
performed, a 1% increase in floating interest rates, with all other variables held constant, would give rise to the following decrease
in the (loss) profit for the year:
12.31.20 12.31.19
Floating rate:
US dollar - (4)
Decrease in the results of operations for the year - (4) Based on the simulations
performed, a 1% decrease in floating interest rates, with all other variables held constant, would give rise to the following increase
in the (loss) profit for the year:
12.31.20 12.31.19
Floating rate:
US dollar - 4
Increase in the results of operations for the year - 4
Schedule of analysis of non-derivative financial liabilitiesThe
amounts disclosed in the table are the contractual undiscounted cash flows.
No
deadline Less
than 3 months From
1 to 2 years From
2 to 5 years More
than 5 years
As
of December 31, 2020
Trade and other
payables 18,169 19,908 200 8,856 -
Borrowings - - 8,261 - -
Total 18,169 19,908 8,461 8,856 -
As
of December 31, 2019
Trade and other
payables 1,045 21,746 284 6,809 290
Borrowings - - - 11,159 -
Total 1,045 21,746 284 17,968 290
Schedule of gearing ratiosThe
gearing ratios at December 31, 2020 and 2019 were as follow:
12.31.20 12.31.19
Total liabilities 85,898 82,113
Less: Cash and
cash equivalents and Financial assets at fair value through profit or loss (6,584) (4,356)
Net debt 79,314 77,757
Total Equity 62,898 80,520
Total capital
attributable to owners 142,212 158,277
Gearing
ratio 55.77% 49.13%
Schedule of financial assets and liabilities measured at fair valueThe
table below shows the Company’s financial assets and liabilities measured at fair value as of December 31, 2020 and 2019:
LEVEL
1 LEVEL
2 TOTAL
At
December 31, 2020
Assets
Financial
assets at fair value through profit or loss:
Government bonds 2,222 - 2,222
Cash
and cash equivalents:
Money market
funds 2,724 - 2,724
Total
assets 4,946 - 4,946
Liabilities
Derivative financial
instruments - 1 1
Total
liabilities - 1 1
At
December 31, 2019
Assets
Financial
assets at fair value through profit or loss:
Money market
funds 3,798 - 3,798
Cash
and cash equivalents
Money market
funds 340 - 340
Total
assets 4,138 - 4,138
Liabilities
Derivative financial
instruments - 279 279
Total
liabilities - 279 279

7 Interest in joint venture (Ta

7 Interest in joint venture (Tables)12 Months Ended
Dec. 31, 2020
Interest In Joint Venture
Schedule of interest in joint venturesPercentage
interest held Equity
attributable to the owners
in
capital stock and votes 12.31.20 12.31.19
SACME 50.00% 11 15

9 Revenue from sales and ener_2

9 Revenue from sales and energy purchases (Tables)12 Months Ended
Dec. 31, 2020
Revenue From Sales And Energy Purchases
Schedule of sales of electricity12.31.20 12.31.19 12.31.18
GWh $ GWh $ GWh $
Sales of electricity
Small
demand segment: Residential use and public lighting (T1) 11,600 57,356 10,768 72,579 11,482 78,952
Medium
demand segment: Commercial and industrial (T2) 1,341 10,544 1,549 15,975 1,668 12,658
Large
demand segment (T3) 3,210 19,830 3,503 31,947 3,646 23,579
Other:
(Shantytowns/Wheeling system) 4,028 3,112 4,154 1,431 4,376 1,379
Subtotal - Sales
of electricity 20,179 90,842 19,974 121,932 21,172 116,568
Other services
Right of use
of poles 421 386 398
Connection
and reconnection charges 53 119 154
Subtotal - Other
services 474 505 552
Total - Revenue 91,316 122,437 117,120
12.31.20 12.31.19 12.31.18
GWh $ GWh $ GWh $
Energy
purchases (1) 25,124 (57,930) 24,960 (77,649) 25,906 (66,721)
(1) As of December 31,
2020, 2019 and 2018, includes technical and non-technical energy losses for 4,945 GWh, 4,986 GWh and 4,734 GWh, respectively.

10 Expenses by nature (Tables)

10 Expenses by nature (Tables)12 Months Ended
Dec. 31, 2020
Expenses By Nature
Schedule of expenses by natureThe
detail of expenses by nature is as follows:
Expenses
by nature at 12.31.20
Description Transmission
and distribution expenses Selling expenses Administrative
expenses Total
Salaries and social security taxes 7,756 1,287 2,272 11,315
Pension plans 327 54 96 477
Communications expenses 218 444 - 662
Allowance for the impairment of trade and other
receivables - 4,183 - 4,183
Supplies consumption 1,878 - 148 2,026
Leases and insurance 1 1 315 317
Security service 306 32 35 373
Fees and remuneration for services 3,900 2,169 1,534 7,603
Public relations and marketing - 19 - 19
Advertising and sponsorship - 10 - 10
Reimbursements to personnel - - 1 1
Depreciation
of property, plants and 5,118 762 626 6,506
Depreciation
of right-of-use asset 32 64 225 321
Directors
and Supervisory Committee - - 28 28
ENRE penalties 330 365 - 695
Taxes and charges - 1,453 64 1,517
Other - - 9 9
At
12.31.20 19,866 10,843 5,353 36,062
(1) Includes recovery
of technical service quality-related penalties of six-month control periods Nos. 47 and 48 for $ 700.8 million, due to the
fact that quality levels were better than estimated.
Expenses
by nature at 12.31.19
Description Transmission
and distribution expenses Selling expenses Administrative
expenses Total
Salaries and social security taxes 8,666 1,424 1,819 11,909
Pension plans 260 43 54 357
Communications expenses 113 504 23 640
Allowance for
the impairment of trade and other receivables - 1,844 - 1,844
Supplies consumption 2,200 - 156 2,356
Leases and insurance - - 308 308
Security service 323 58 126 507
Fees and remuneration for services 3,481 2,203 1,856 7,540
Public relations and marketing - 56 - 56
Advertising and sponsorship - 29 - 29
Reimbursements to personnel - - 1 1
Depreciation
of property, plants and equipments 4,952 738 605 6,295
Depreciation
of right-of-use asset 22 45 156 223
Directors
and Supervisory Committee - - 30 30
ENRE penalties 1,963 1,806 - 3,769
Taxes and charges - 1,257 68 1,325
Other - - 21 21
At
12.31.19 21,980 10,007 5,223 37,210
Expenses
by nature at 12.31.18
Description Transmission
and distribution expenses Selling expenses Administrative
expenses Total
Salaries and social security taxes 9,066 1,627 1,914 12,607
Pension plans 169 30 36 235
Communications expenses 170 564 34 768
Allowance for the impairment of trade and other
receivables - 2,046 - 2,046
Supplies consumption 1,654 - 257 1,911
Leases and insurance 1 - 377 378
Security service 286 4 269 559
Fees and remuneration for services 2,956 2,177 2,108 7,241
Public relations and marketing - - 67 67
Advertising and sponsorship - - 35 35
Reimbursements to personnel - - 1 1
Depreciation
of property, plants and 4,217 629 516 5,362
Directors
and Supervisory Committee - - 46 46
ENRE penalties 4,321 2,202 - 6,523
Taxes and charges - 1,254 340 1,594
Other 2 1 12 15
At
12.31.18 22,842 10,534 6,012 39,388

11 Other operating income (ex_2

11 Other operating income (expense) (Tables)12 Months Ended
Dec. 31, 2020
Other Operating Expense Net
Schedule of other operating income (expense)Note 12.31.20 12.31.19 12.31.18
Other operating income
Income from customer surcharges 1,550 1,567 1,385
Commissions on municipal taxes collection 224 175 161
Fines to suppliers - 27 161
Services provided to third parties 240 245 -
Related parties 35.a 43 27 93
Income from non-reimbursable customer 26 9 12
Other 46 91 91
Total other operating income 2,200 2,364 1,903
Other operating expense
Gratifications for services (51) (262) (155)
Cost for services provided to third parties (96) (132) (110)
Severance paid (25) (29) (35)
Debit and Credit Tax (818) (1,079) (1,245)
Provision for contingencies (683) (1,861) (1,516)
Disposals of property, plant and equipment (151) (86) (281)
Refund of fines to suppliers (129) - -
Other (92) (30) (96)
Total other operating expense (2,045) (3,479) (3,438)
Other operating expense 155 (1,115) (1,535)
(1) Impairment charge of property, plant and equipment (Note 6.c).

12 Net finance costs (Tables)

12 Net finance costs (Tables)12 Months Ended
Dec. 31, 2020
Net Finance Costs
Schedule of net finance costsNote 12.31.20 12.31.19 12.31.18
Financial
income
Financial interest 25 75 72
Other interest 35.a 30 3 104
Total
financial income 55 78 176
Finance costs
Commercial interest (5,986) (4,069) (6,191)
Interest and
other (3,170) (5,106) (4,159)
Fiscal interest (109) (7) (48)
Bank fees and
expenses (11) (23) (18)
Total
finance costs (9,276) (9,205) (10,416)
Other financial
results
Changes in fair
value of financial assets 989 383 1,563
Net gain from
the repurchase of 415 622 10
Exchange differences (2,955) (5,674) (5,506)
Adjustment to
present value of receivables (129) (104) (1)
Recovery of provision
for credit RDSA - - -
Other finance
costs (210) (23) (180)
Total
other finance costs (1,890) (4,796) (4,114)
Total
net finance costs (11,111) (13,923) (14,354)

13 Basic and diluted (loss) p_2

13 Basic and diluted (loss) profit per share (Tables)12 Months Ended
Dec. 31, 2020
Basic and diluted (loss) profit per share:
Schedule of basic and diluted (loss) profit per shareThe
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.
12.31.20 12.31.19 12.31.18
(Loss)
Profit for the period attributable to the owners of the Company (17,698) 16,518 8,995
Weighted
average number of common shares outstanding 875 875 890
Basic
and diluted profit per share – in pesos (*) (20.23) 18.88 10.11 (*)
As of December 31, 2019, includes the result of the Agreement on the Regularization of Obligations.

14 Property, plant and equipm_2

14 Property, plant and equipment (Tables)12 Months Ended
Dec. 31, 2020
Property, plant and equipment [abstract]
Schedule of 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 12.31.19
Cost 3,256 29,997 85,400 36,386 5,445 30,770 331 191,585
Accumulated depreciation (623) (9,341) (28,087) (12,193) (3,447) - - (53,691)
Net
amount 2,633 20,656 57,313 24,193 1,998 30,770 331 137,894
Additions 42 1,271 144 293 725 8,511 87 11,073
Disposals - (2) (52) (97) - - - (151)
Transfers 347 4,187 4,148 2,550 101 (11,238) (95) -
Depreciation for the year (93) (1,192) (3,021) (1,542) (658) - - (6,506)
Impairment - (3,982) (9,355) (4,059) - - - (17,396)
Net
amount 12.31.20 2,929 20,938 49,177 21,338 2,166 28,043 323 124,914
At 12.31.20
Cost 3,644 31,469 80,175 35,036 6,271 28,043 323 184,961
Accumulated depreciation (715) (10,531) (30,998) (13,698) (4,105) - - (60,047)
Net
amount 2,929 20,938 49,177 21,338 2,166 28,043 323 124,914
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 12.31.18
Cost 3,034 28,822 79,671 32,967 5,561 28,070 409 178,534
Accumulated depreciation (510) (8,319) (25,479) (10,804) (2,648) - - (47,760)
Net
amount 2,524 20,503 54,192 22,163 2,913 28,070 409 130,774
Additions 49 10 213 393 1,410 11,293 133 13,501
Disposals - - (10) (72) (4) - - (86)
Transfers 172 1,165 5,866 3,127 (1,526) (8,593) (211) -
Depreciation for the year (112) (1,022) (2,948) (1,418) (795) - - (6,295)
Net
amount 12.31.19 2,633 20,656 57,313 24,193 1,998 30,770 331 137,894
At 12.31.19
Cost 3,256 29,997 85,400 36,386 5,445 30,770 331 191,585
Accumulated depreciation (623) (9,341) (28,087) (12,193) (3,447) - - (53,691)
Net
amount 2,633 20,656 57,313 24,193 1,998 30,770 331 137,894
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 2,881 28,198 76,254 31,496 5,247 18,248 190 162,514
Accumulated depreciation (430) (7,476) (23,548) (9,710) (1,910) - - (43,074)
Net
amount 2,451 20,722 52,706 21,786 3,337 18,248 190 119,440
Additions 39 238 797 108 1,081 15,362 272 17,897
Disposals - (5) (198) (75) (923) - - (1,201)
Transfers 187 393 3,339 1,487 187 (5,540) (53) -
Depreciation for the year (153) (845) (2,452) (1,143) (769) - - (5,362)
Net
amount 12.31.18 2,524 20,503 54,192 22,163 2,913 28,070 409 130,774
At 12.31.18
Cost 3,034 28,822 79,671 32,967 5,561 28,070 409 178,534
Accumulated depreciation (510) (8,319) (25,479) (10,804) (2,648) - - (47,760)
Net
amount 2,524 20,503 54,192 22,163 2,913 28,070 409 130,774

15 Financial instruments (Table

15 Financial instruments (Tables)12 Months Ended
Dec. 31, 2020
Disclosure of detailed information about financial instruments [abstract]
Schedule of 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, 2020
Assets
Trade receivables 14,151 - - 14,151
Other receivables 340 - 326 666
Cash and cash equivalents
Cash and Banks 1,638 - - 1,638
Money market funds - 2,724 - 2,724
Financial assets
at fair value through profit or loss:
Government
bonds - 2,222 - 2,222
Financial
assets at amortized cost:
Government
bonds 317 - - 317
Total 16,446 4,946 326 21,718
As
of December 31, 2019
Assets
Trade receivables 16,961 - - 16,961
Other receivables 429 - - 429
Cash and cash equivalents - -
Cash and Banks 218 - - 218
Financial
assets at fair value through profit or loss:
Money
market funds - 3,798 - 3,798
Total 17,608 3,798 - 21,406
Financial
liabilities at amortized cost Financial
liabilities at fair value through profit or loss Total
As
of December 31, 2020
Liabilities
Trade
payables 33,540 - 33,540
Other
payables 9,284 - 9,284
Borrowings 8,404 - 8,404
Derivative
financial instruments - 1 1
Total 51,228 - 51,228
As
of December 31, 2019
Liabilities
Trade
payables 17,791 - 17,791
Other
payables 10,367 - 10,367
Borrowings 13,418 - 13,418
Total 41,576 - 41,576
Schedule of income, expenses, gains and losses of financial instrumentsThe
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, 2020
Interest income 55 - 55
Exchange differences 570 579 1,149
Changes in fair value of financial assets - 989 989
Corporate Notes 415 - 415
Total 1,040 1,568 2,608
As
of December 31, 2019
Interest income 78 - 78
Exchange differences 830 1,456 2,286
Changes in fair value of financial assets - 383 383
Adjustment to present value 622 - 622
Total 1,530 1,839 3,369
As
of December 31, 2018
Interest income 1,406 - 1,406
Exchange differences 6,000 - 6,000
Bank fees and expenses (18) - (18)
Changes in fair value of financial assets - 1,563 1,563
Adjustment to present value (1) - (1)
Total 7,387 1,563 8,950
Schedule of credit quality of financial assetsThe
credit quality of financial assets that are neither past due nor impaired may be assessed based on external credit ratings or
historical information:
12.31.20 12.31.19
Customers with
no external credit rating:
Group 1(i) 10,437 14,376
Group 2 (ii) 864 721
Group 3 (iii) 2,850 1,864
Total
trade receivables 14,151 16,961 (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.

16 Right-of-use asset (Tables)

16 Right-of-use asset (Tables)12 Months Ended
Dec. 31, 2020
Right-of-use Asset
Schedule of right-of-use assetThe
leases recognized as right-of-use assets in accordance with IFRS 16 are disclosed below:
12.31.20 12.31.19
Total
right-of-use asset by leases 280 355 The
development of right-of-use assets is as follows:
12.31.20 12.31.19
Balance
at beginning of year 355 -
Incorporation by adoption
of IFRS 16 - 574
Additions 246 4
Depreciation
for the year (321) (223)
Balance
at end of the year 280 355

17 Other receivables (Tables)

17 Other receivables (Tables)12 Months Ended
Dec. 31, 2020
Other Receivables
Schedule of other receivablesNote 12.31.20 12.31.19
Non-current:
Credit for Real estate
asset 2,151 2,894
Financial credit 14 30
Related parties 35.d 3 5
Allowance for the impairment of other receivables (2,126) (2,894)
Total
non-current 42 35
Current:
Credit for Real estate asset 38 36 82
Judicial
deposits 77 93
Security deposits 38 34
Prepaid expenses 43 21
Advances to personnel 2 -
Financial credit 18 61
Advances to suppliers 73 -
Tax credits 326 20
Related parties 35.d 19 35
Subtotal 632 346
Debtors for complementary activities 69 137
Allowance for the impairment of other receivables (77) (89)
Total
current 624 394
Schedule of roll forward of the allowance for the impairment of other receivablesThe
roll forward of the allowance for the impairment of other receivables is as follows:
12.31.20 12.31.19
Balance at beginning
of year 2,983 162
Increase (1) 93 2,935
Result from exposure
to inlfation (790) (58)
Recovery (83) (56)
Balance
at end of the year 2,203 2,983 (1)
As of December 31, 2019, the impairment charge was charged to finance costs, net of the receivable revaluation.
Schedule of aging analysisThe
aging analysis of these other receivables is as follows:
12.31.20 12.31.19
Without expiry
date 134 160
Past due 65 69
Up to 3 months 83 125
From 3 to 6 months 317 20
From 6 to 9 months 11 16
From 9 to 12
months 14 4
More than 12
months 42 35
Total
other receivables 666 429

18 Trade receivables (Tables)

18 Trade receivables (Tables)12 Months Ended
Dec. 31, 2020
Trade Receivables
Schedule of trade receivables12.31.20 12.31.19
Current:
Sales of electricity – Billed 12,304 10,501
Framework Agreement (1) 9 12
Receivables in litigation 300 293
Allowance for the impairment
of trade receivables (4,605) (2,105)
Subtotal 8,008 8,701
Sales of electricity
– Unbilled 5,812 7,884
PBA & CABA
government credit 329 342
Fee
payable for the expansion of the transportation and others 2 34
Total
current 14,151 16,961
(1) As
of December 31, 2020, the Province of Buenos Aires and the Federal Government have a debt with the Company for the consumption
of electricity by low-income areas and shantytowns. The indicated amount does not include interest and no revenue for this
concept has been recognized by the Company .
See Note 2.f).
Schedule of allowance for the impairment of trade receivablesThe
roll forward of the allowance for the impairment of trade receivables is as follows:
12.31.20 12.31.19
Balance at beginning
of the year 2,105 1,887
Increase 4,173 1,858
Decrease (615) (1,050)
Result from exposure
to inlfation (1,058) (590)
Balance
at end of the year 4,605 2,105
Schedule of aging analysis of trade receivablesThe
aging analysis of these trade receivables is as follows:
12.31.20 12.31.19
Not due 9 11
Past due 3,714 2,586
Up to 3 months 10,428 14,364
Total
trade receivables 14,151 16,961
Schedule of sensitivity analysisSensitivity
analysis of the allowance for impairment of trade receivables:
-
5% increase in the uncollectibility rate estimate
12.31.20
Allowance 4,835
Variation 230
-
5% decrease in the uncollectibility rate estimate
12.31.20
Allowance 4,374
Variation (231)

19 Financial assets at fair v_2

19 Financial assets at fair value through profit or loss (Tables)12 Months Ended
Dec. 31, 2020
Financial assets at fair value through profit or loss [abstract]
Schedule of financial assets at fair value through profit or loss12.31.20 12.31.19
Current
Government bonds 2,222 -
Money market
funds - 3,798
Total
current 2,222 3,798

20 Financial assets at amorti_2

20 Financial assets at amortized cost (Tables)12 Months Ended
Dec. 31, 2020
Financial Assets At Amortized Cost
Schedule of financial assets at amortized cost12.31.20 12.31.19
Non-current
Government bonds 239 -
Current
Government bonds 78 -

21 Inventories (Tables)

21 Inventories (Tables)12 Months Ended
Dec. 31, 2020
Inventories Abstract
Schedule of inventories12.31.20 12.31.19
Current
Supplies and
spare-parts 1,839 2,524
Advance to suppliers 34 99
Total
inventories 1,873 2,623

22 Cash and cash equivalents (T

22 Cash and cash equivalents (Tables)12 Months Ended
Dec. 31, 2020
Cash and cash equivalents [abstract]
Schedule of cash and cash equivalents12.31.20 12.31.19
Cash and banks 1,638 218
Money market
funds 2,724 340
Total
cash and cash equivalents 4,362 558

23 Share capital and addition_2

23 Share capital and additional paid-in capital (Tables)12 Months Ended
Dec. 31, 2020
Share Capital And Additional Paid-in Capital
Schedule of share capital and additional paid-in capitalShare
capital Additional
paid-in capital Total
Balance
at December 31, 2020 and 2019 38,092 504 38,596

26 Trade payables (Tables)

26 Trade payables (Tables)12 Months Ended
Dec. 31, 2020
Trade Payables
Schedule of trade payablesNote 12.31.20 12.31.19
Non-current
Customer guarantees 274 290
Customer contributions 247 213
Total
non-current 521 503
Current
Payables for purchase of electricity - CAMMESA 2.b 21,384 5,945
Provision for
unbilled electricity purchases - CAMMESA 2.b 6,644 6,722
Suppliers 4,560 4,140
Advance to customer 362 388
Customer contributions 32 42
Discounts to customers 37 51
Total
current 33,019 17,288

27 Other payables (Tables)

27 Other payables (Tables)12 Months Ended
Dec. 31, 2020
Other Payables
Schedule of other payablesNote 12.31.20 12.31.19
Non-current
ENRE penalties and discounts 6,224 5,353
Financial Lease Liability (1) 61 119
Total
Non-current 6,285 5,472
Current
ENRE penalties and discounts 2,675 4,610
Related parties 35.d 15 17
Advances
for works to be performed 13 8
Payment
agreements with ENRE - 66
Financial Lease Liability (1) 295 182
Other 1 12
Total
Current 2,999 4,895
Schedule of financial lease liabilityThe development
of the financial lease liability is as follows:
12.31.20 12.31.19
Balance
at beginning of year 301 -
Incorporation
by adoption of IFRS 16 - 574
Increase 246 4
Payments (686) (289)
Exchange difference
and gain on net monetary position 495 12
Balance at end
of the year 356 301
Schedule of future minimum lease paymentsAs
of December 31, 2020, future minimum payments with respect to finance leases are those detailed below:
12.31.20 12.31.19
2021 296 188
2022 41 4
2023 20 -
Total
future minimum lease payments 357 192
Schedule of future minimum collections with respect to operating assignmentsAs
of December 31, 2020 and 2019, future minimum collections with respect to operating assignments of use are those detailed below.
12.31.20 12.31.19
2021 474 442
2022 472 -
Total
future minimum lease collections 946 442

28 Deferred revenue (Tables)

28 Deferred revenue (Tables)12 Months Ended
Dec. 31, 2020
Disclosure deferred revenue [abstract]
Schedule of deferred revenue12.31.20 12.31.19
Non-current
Nonrefundable customer contributions 1,471 368
Total Non-current 1,471 368
12.31.20 12.31.19
Current
Nonrefundable customer contributions 37 7
Total Current 37 7

29 Borrowings (Tables)

29 Borrowings (Tables)12 Months Ended
Dec. 31, 2020
Borrowings [abstract]
Schedule of borrowings12.31.20 12.31.19
Non-current
Corporate notes (1) 8,261 11,159
Current
Interest from corporate notes 143 196
Borrowing - 2,063
Total
current 143 2,259
(1) Net of debt issuance,
repurchase and redemption expenses.
Schedule of borrowings currency denominationsThe
Company’s borrowings are denominated in the following currencies:
12.31.20 12.31.19
US dollars 8,404 13,418
Schedule of maturities of the company's borrowings and exposure to interest rateThe
maturities of the Company’s borrowings and its exposure to interest rate are as follow:
12.31.20 12.31.19
Fixed
rate
Less than 1 year 143 196
From 1 to 2 years 8,261 -
From 2 to 5 years - 11,159
8,404 11,355
Floating
rate
Less than 1 year - 2,063
- 2,063
8,404 13,418
Schedule of roll forward of the company's borrowingsThe
roll forward of the Company’s borrowings during the year was as follows:
12.31.20 12.31.19
Balance at beginning
of the year 13,418 17,311
Payment of borrowings' interests (918) (1,545)
Paid from repurchase
of Corporate Notes (3,798) (2,084)
Payment of borrowings (750) (2,169)
Gain from repurchase
of Corporate Notes (415) (622)
Exchange diference and interest accrued 4,051 9,104
Result from exposure to inlfation (3,184) (6,577)
Balance at the
end of year 8,404 13,418
Schedule of debt issuedDebt
issued in United States dollars
USD $
Corporate
Notes Class Rate Year
of Maturity Debt
structure at 12.31.19 Debt
repurchase Debt
structure at 12.31.20 At
12.31.20
Fixed
Rate Par Note 9 9.75 2022 137 (39) 98 8,261
Total 137 (39) 98 8,261
USD $
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 166 (29) 137 11,159
Total 166 (29) 137 11,159

30 Salaries and social securi_2

30 Salaries and social security taxes payable (Tables)12 Months Ended
Dec. 31, 2020
Salaries And Social Security Taxes Payable
Schedule of salaries and social security taxes payablea. Salaries and
social security taxes payable
12.31.20 12.31.19
Non-current
Early retirements
payable 24 54
Seniority-based
bonus 279 273
Total
non-current 303 327
Current
Salaries payable
and provisions 3,376 2,866
Social security
payable 332 374
Early retirements
payable 26 38
Total
current 3,734 3,278
Schedule of salaries and social security taxes charged to profit or lossb. Salaries and
social security taxes charged to profit or loss
12.31.20 12.31.19 12.31.18
Salaries 8,147 8,574 9,077
Social security
taxes 3,168 3,335 3,530
Total
salaries and social security taxes 11,315 11,909 12,607

31 Benefit plans (Tables)

31 Benefit plans (Tables)12 Months Ended
Dec. 31, 2020
Benefit Plans
Schedule of benefit plansThe
amounts and conditions vary depending on the collective bargaining agreement and for non-unionized personnel.
12.31.20 12.31.19
Non-current 749 713
Current 84 70
Total
Benefit plans 833 783
Schedule of benefit payment obligationsThe
detail of the benefit plan obligations as of December 31, 2020 and 2019 is as follows:
12.31.20 12.31.19
Benefit payment obligations at beginning of
year 783 874
Current service cost 161 150
Interest cost 316 207
Actuarial losses (108) 10
Result from exposure
to inflation for the year (305) (397)
Benefits paid to participating employees (14) (61)
Benefit payment
obligations at end of year 833 783
Schedule of detail of the charge recognized in the statement of comprehensive loss incomeThe
detail of the charge recognized in the Statement of Comprehensive (Loss) Income is as follows:
12.31.20 12.31.19 12.31.18
Cost 161 150 69
Interest 316 207 166
Actuarial results
- Other comprehensive (income) loss (108) 10 12
369 367 247
Schedule of actuarial assumptionsThe main assumptions used
are as follow:
12.31.20 12.31.19
Discount rate 5% 5%
Salary increase 1% 1%
Inflation 50% 31%
Schedule of benefit plan sensitivity analysisSensitivity
analysis:
12.31.20
Discount
Rate: 4%
Obligation 910
Variation 77
9%
Discount Rate:
6%
Obligation 767
Variation (66)
(8%)
Salary Increase
: 0%
Obligation 764
Variation (69)
(8%)
Salary Increase:
2%
Obligation 913
Variation 80
10%
Schedule of expected payments of benefitsThe
expected payments of benefits are as follow:
In
2021 In
2022 In
2023 In
2024 In
2025 Between
2026 to 2030
At
December 31, 2020
Benefit payment
obligations 84 15 16 17 4 17

32 Income tax and deferred tax

32 Income tax and deferred tax (Tables)12 Months Ended
Dec. 31, 2020
Income Tax Deferred Tax
Schedule of analysis of deferred tax assets and liabilitiesThe
detail of deferred tax assets and liabilities is as follows:
12.31.19 Result
from exposure to inflation Charged
to Profit and loss Charged
to Other comprenhen- sive income 12.31.20
Deferred tax assets
Tax
loss carryforward - - 248 - 248
Trade
receivables and other receivables 754 (200) 797 - 1,351
Trade payables and other payables 819 (217) 75 - 677
Salaries and
social security taxes payable 154 (40) 141 - 255
Benefit plans 147 (39) 1 (33) 76
Tax liabilities 25 (7) 1 - 19
Provisions 916 (243) 145 - 818
Deferred tax asset 2,815 (746) 1,408 (33) 3,444
Deferred tax liabilities:
Property,
plant and equipment (26,740) 7,098 (3,741) - (23,383)
Financial assets
at fair value through profit or loss (283) 75 (90) - (298)
Borrowings (5) 2 1 - (2)
Tax
inflation adjustment (3,087) 820 (1,203) - (3,470)
Deferred tax liability (30,115) 7,995 (5,033) - (27,153)
Net deferred tax
liability (27,300) 7,249 (3,625) (33) (23,709)
12.31.18 Result
from exposure to inflation Charged
to Profit and loss Charged
to Other comprenhen- sive income 12.31.19
Deferred tax assets
Tax
loss carryforward - - - - -
Inventories - - - - -
Trade
receivables and other receivables 932 (326) 148 - 754
Trade payables and other payables 4,092 (1,431) (1,842) - 819
Salaries and
social security taxes payable 103 (36) 87 - 154
Benefit plans 222 (78) - 3 147
Tax liabilities 33 (11) 3 - 25
Provisions 724 (253) 445 - 916
Deferred tax asset 6,106 (2,135) (1,159) 3 2,815
Deferred tax liabilities:
Property,
plant and equipment (22,498) 7,867 (12,109) - (26,740)
Financial assets
at fair value through profit or loss (445) 156 6 - (283)
Borrowings (9) 3 1 - (5)
Tax
inflation adjustment - - (3,087) - (3,087)
Deferred tax liability (22,952) 8,026 (15,189) - (30,115)
Net deferred tax
liability (16,846) 5,891 (16,348) 3 (27,300)
12.31.17 Result
from exposure to inflation Charged
to profit and loss Charged
to other comprenhen- sive income 12.31.18
Deferred tax assets
Tax
loss carryforward 113 (113) - - -
Inventories 28 (19) (9) - -
Trade
receivables and other receivables 1,006 (775) 701 - 932
Trade payables and other payables 889 1,586 1,617 - 4,092
Salaries and social security taxes payable (201) 273 31 - 103
Benefit plans 459 (270) 29 4 222
Tax liabilities 117 (91) 7 - 33
Provisions (1,143) 1,580 287 - 724
Deferred tax asset 1,268 2,171 2,663 4 6,106
Deferred tax liabilities:
Property,
plant and equipment (15,628) 1,890 (8,760) - (22,498)
Financial assets
at fair value through profit or loss (809) 785 (421) - (445)
Borrowings (91) 80 2 - (9)
Deferred tax liability (16,528) 2,755 (9,179) - (22,952)
Net deferred tax
liability (15,260) 4,926 (6,516) 4 (16,846)
12.31.20 12.31.19 12.31.18
Deferred tax assets:
To be recover in more than 12 months 3,444 2,815 6,105
Deferred tax asset 3,444 2,815 6,105
Deferred tax liabilities:
To be recover in more than 12 months (27,153) (30,115) (22,952)
Deferred tax liability (27,153) (30,115) (22,952)
Net deferred tax
liability (23,709) (27,300) (16,847)
Schedule of income tax expenseThe
detail of the income tax expense is as follows:
12.31.20 12.31.19 12.31.18
Deferred
tax 3,624 (10,457) (1,590)
Current
tax - (3,953) (2,333)
Difference
between provision and tax return (61) (120) (7)
Income tax expense 3,563 (14,530) (3,930)
12.31.20 12.31.19 12.31.18
(Loss) Profit for
the year before taxes (21,261) 31,048 12,925
Applicable tax rate 30% 30% 30%
Result
for the year at the tax rate 6,378 (9,314) (3,878)
Gain on net monetary position (1,339) (2,613) (2,108)
Adjustment
effect on tax inflation (2,225) (3,818) -
Income
tax expense 810 1,232 464
Change in the income tax rate - - 1,599
Difference
between provision and tax return (61) (17) (7)
Income tax expense 3,563 (14,530) (3,930)
Schedule of income tax provisionsThe
income tax payable, net of withholdings is detailed below.
12.31.20 12.31.19
Current
Tax payable - 3,953
Tax withholdings - (1,272)
Total
current - 2,681

33 Tax liabilities (Tables)

33 Tax liabilities (Tables)12 Months Ended
Dec. 31, 2020
Tax Liabilities
Schedule of tax liabilities12.31.20 12.31.19
Non-current
Current
Provincial, municipal and federal contributions
and taxes 459 244
VAT payable 920 1,772
Tax withholdings 171 200
SUSS
withholdings 10 11
Municipal taxes 233 188
Total
current 1,793 2,415

34 Provisions (Tables)

34 Provisions (Tables)12 Months Ended
Dec. 31, 2020
Provisions [abstract]
Schedule of provisionsNon-current
liabilities Current
liabilities
Contingencies
At
12.31.19 2,808 291
Increases 1,107 163
Decreases (105) (12)
Recovery (587) -
Result from exposure
to inflation for the year (792) (84)
At
12.31.20 2,431 358
At
12.31.18 2,240 392
Increases 1,687 174
Decreases (28) (105)
Result from exposure
to inflation for the year (1,091) (170)
At
12.31.19 2,808 291

35 Related-party transactions (

35 Related-party transactions (Tables)12 Months Ended
Dec. 31, 2020
Related party transactions [abstract]
Schedule of related party incomea. Income
Company Concept 12.31.20 12.31.19 12.31.18
PESA Impact study 40 27 -
Electrical
assembly service - - 23
SACDE Reimbursement expenses 3 - 70
43 27 93
Schedule of related party expensesb. Expense
Company Concept 12.31.20 12.31.19 12.31.18
PESA Technical advisory services on financial matters (206) (185) (180)
SACME Operation and oversight of the electric power
transmission system (102) (113) (171)
OSV Hiring life insurance for staff (27) (27) (41)
SB&WM Abogados Legal fees (13) - -
FIDUS Legal fees (4) (1) -
ABELOVICH, POLANO& ASOC. Legal fees (1) (2) (3)
(353) (328) (395)
Schedule of key management personnel's remunerationKey Management personnel’s remuneration
12.31.20 12.31.19 12.31.18
Salaries 322 401 406
Schedule of related party receivables and payablesReceivables and payables
12.31.20 12.31.19
Other
receivables - Non current
SACME 3 5
Other
receivables - Current
FIDUS SGR 18 34
SACME 1 1
19 35
Other
payables
SACME (15) (17)

1 General information (Details

1 General information (Details Narrative) $ in Millions12 Months Ended
Dec. 31, 2020ARS ($)
Disclosure of detailed information about borrowings [line items]
Awarded percentage51.00%
Description of economic conditionso Economic contraction by an estimated 11.8% for 2020 (IMF – October 2020 World Economic Outlook Report); o Increase of both public spending and the fiscal deficit; o Inflation rate of 36% in 2020 that is expected not only to continue but in fact to increase over time; o 41% devaluation of the Argentine peso against the United States dollar, considering the BNA’s rate of exchange, with the gap between the official and the blue-chip swap dollar exchange rates amounting to 67%; o Imposition of currency restrictions by the monetary authority, which directly affect the value of the foreign currency for certain restricted foreign exchange transactions taking place outside the MULC.
Wholesale Electricity Market ("MEM") [member] | Loans (mutuum) with CAMMESA [member]
Disclosure of detailed information about borrowings [line items]
Maturitymaturities taking place in March 2020
Principal balance $ 19,008
Interest and charges $ 2,376

2 Regulatory framework (Details

2 Regulatory framework (Details) - ENRE [member]6 Months Ended
Jun. 30, 2020Dec. 31, 2019Jun. 30, 2019
Disclosure of information about activities subject to rate regulation [line items]
Date of applicationAug. 20Feb. 20Aug. 19[1]
CPD adjustment12.97%24.65%19.05%
[1]The CPD adjustment applicable in August 2019 was deferred until January 2020 by means of the Electricity Rate Schedule Maintenance Agreement, and was finally not applied.

2 Regulatory framework (Detai_2

2 Regulatory framework (Details Narrative) - ARS ($) $ in MillionsJan. 14, 2021Dec. 31, 2020Dec. 31, 2019
RegulatoryFrameworkLineItems [Line Items]
Term of concession95 years
Additional term of concession10 years
Other accumulate amount excluding interest $ 20,939
Description of system of payment for the servicethe prohibition against the interruption of the service due to non-payment of up to seven bills (universe of customers mentioned in the preceding paragraph), may pay their unpaid bills for the electricity distribution service in up to 30 monthly, equal and consecutive installments with an interest rate to be determined by the application authority, with the first installment maturing on December 31, 2020.
Description of suspend payment or make partial paymentssuffered a reduction of at least 50% in their demand for power, may either suspend payment or make partial payments on account of the contracted power under electricity supply contracts, until 70% of the demand is recovered, maintaining the obligation to pay the other charges.
Regularization of payment obligations $ 23,270
Concession area amounted $ 2,126
Non-adjusting events after reporting period [member]
RegulatoryFrameworkLineItems [Line Items]
Description of disbursement paymentsOn January 14, 2021, the Company received the first disbursement for $ 1,500 million; the second disbursement for $ 500 million is expected to be received in the first quarter of 2021; the third disbursement for $ 500 million in the second quarter of 2021;
T1 (small demand segment) [member]
RegulatoryFrameworkLineItems [Line Items]
Cumulative amount pending collection $ 552
Wholesale Electricity Market ("MEM") [member] | Loans (mutuum) with CAMMESA [member]
RegulatoryFrameworkLineItems [Line Items]
Description of consumption of energy, power, interest and/or penaltiesaccordance with the conditions to be set out by the application authority, which may provide for credits equivalent to up to five times the monthly average bill or to sixty-six percent of the existing debt, whereas the remaining debt is to be paid in up to sixty monthly installments, with a grace period of up to six months, and at the rate in effect in the MEM, reduced by fifty percent.
PESA [member]
RegulatoryFrameworkLineItems [Line Items]
Share capital percentag51.00%

3 Basis of preparation (Details

3 Basis of preparation (Details Narrative)12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Basis Of Preparation
Inflation rate36.13%53.77%47.66%24.79%

4 Accounting policies (Detail N

4 Accounting policies (Detail Narrative) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of accounting policies [line items]
Other finance costs $ 1,890 $ 4,796 $ 4,114
Description of income tax percentageCalculated 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, 2020 and 2019, the IPC cumulative variations for the 12 months of each year amounted to 36.13% and 53.77%, respectively, which exceed the 15% and 30% thresholds fixed for the third and second transition years 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.
Income tax payable rate30.00%30.00%30.00%
Facilities in service [member]
Disclosure of accounting policies [line items]
Estimated useful livesBetween 30 and 50 years
Furniture, tools and equipment [member]
Disclosure of accounting policies [line items]
Estimated useful livesBetween 5 and 20 years
Land [member]
Disclosure of accounting policies [line items]
Estimated useful livesNot depreciated

5 Financial risk management (De

5 Financial risk management (Details) $ in MillionsDec. 31, 2020ARS ($)ExchangeRate$ / $Dec. 31, 2019ARS ($)$ / $
Summary of financial risk management [line items]
Exchange rate | $ / $84.1559.89
Current assets [member]
Summary of financial risk management [line items]
Foreign currency balance assets $ 1,981 $ 4,045
Current assets [member] | Other receivables [member] | USD
Summary of financial risk management [line items]
Amount of foreign currency $ 6
Exchange rate | ExchangeRate[1]84.150
Foreign currency balance assets $ 505 82
Current assets [member] | Other receivables [member] | JPY
Summary of financial risk management [line items]
Amount of foreign currency $ 55
Exchange rate | ExchangeRate[1]0.816
Foreign currency balance assets $ 45
Current assets [member] | Financial assets at fair value through profit or loss [member] | USD
Summary of financial risk management [line items]
Amount of foreign currency
Exchange rate | ExchangeRate[1]84.150
Foreign currency balance assets 3,798
Current assets [member] | Cash and cash equivalents [member] | USD
Summary of financial risk management [line items]
Amount of foreign currency $ 17
Exchange rate | ExchangeRate[1]84.150
Foreign currency balance assets $ 1,431 164
Current assets [member] | Cash and cash equivalents [member] | EUR
Summary of financial risk management [line items]
Amount of foreign currency
Exchange rate | ExchangeRate[1]103.530
Foreign currency balance assets 1
Total Assets [member]
Summary of financial risk management [line items]
Foreign currency balance assets1,981 4,045
Non-current liabilities [member]
Summary of financial risk management [line items]
Foreign currency balance liabilities8,261 11,159
Non-current liabilities [member] | USD | Borrowings [member]
Summary of financial risk management [line items]
Amount of foreign currency $ 98
Exchange rate | ExchangeRate[1]84.150
Foreign currency balance liabilities $ 8,261 11,159
Current liabilities [member]
Summary of financial risk management [line items]
Foreign currency balance liabilities1,862 3,797
Current liabilities [member] | USD | Borrowings [member]
Summary of financial risk management [line items]
Amount of foreign currency $ 2
Exchange rate | ExchangeRate[1]84.150
Foreign currency balance liabilities $ 143 2,259
Current liabilities [member] | USD | Trade payables [member]
Summary of financial risk management [line items]
Amount of foreign currency $ 11
Exchange rate | ExchangeRate[1]84.150
Foreign currency balance liabilities $ 962 738
Current liabilities [member] | USD | Other payables [member]
Summary of financial risk management [line items]
Amount of foreign currency $ 9
Exchange rate | ExchangeRate[1]84.150
Foreign currency balance liabilities $ 757 739
Current liabilities [member] | EUR | Trade payables [member]
Summary of financial risk management [line items]
Amount of foreign currency
Exchange rate | ExchangeRate[1]103.530
Foreign currency balance liabilities 39
Current liabilities [member] | CHF | Trade payables [member]
Summary of financial risk management [line items]
Amount of foreign currency
Exchange rate | ExchangeRate[1]95.413
Foreign currency balance liabilities 21
Current liabilities [member] | NOK | Trade payables [member]
Summary of financial risk management [line items]
Amount of foreign currency
Exchange rate | ExchangeRate[1]8.211
Foreign currency balance liabilities 1
Total Liabilities [member]
Summary of financial risk management [line items]
Foreign currency balance liabilities $ 10,123 $ 14,956
[1]The exchange rates used are the BNA exchange rates in effect as of December 31, 2020 for US Dollars (USD), Euros (EUR), Swiss Francs (CHF), Norwegian Krones (NOK) and Japanese Yens (JPY).

5 Financial risk management (_2

5 Financial risk management (Details 1) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Summary of financial risk management [line items]
Net position assets/(liabilities) $ (8,142) $ (10,911)
US dollar
Summary of financial risk management [line items]
Net position assets/(liabilities)(8,187)(10,851)
Japanese Yen (JPY)
Summary of financial risk management [line items]
Net position assets/(liabilities)45
Euro
Summary of financial risk management [line items]
Net position assets/(liabilities) (38)
Norwegian krone (NOK)
Summary of financial risk management [line items]
Net position assets/(liabilities) (1)
Swiss franc (CHF)
Summary of financial risk management [line items]
Net position assets/(liabilities) $ (21)

5 Financial risk management (_3

5 Financial risk management (Details 2) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Summary of financial risk management [line items]
Decrease in the results of operations for the year $ (819) $ (1,091)
US dollar
Summary of financial risk management [line items]
Decrease in the results of operations for the year(819)(1,085)
Euro
Summary of financial risk management [line items]
Decrease in the results of operations for the year (4)
Swiss franc (CHF)
Summary of financial risk management [line items]
Decrease in the results of operations for the year $ (2)

5 Financial risk management (_4

5 Financial risk management (Details 3) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Summary of financial risk management [line items]
Total loans $ 8,404 $ 13,418 $ 17,311
US dollar
Summary of financial risk management [line items]
Total loans8,404 13,418
Fixed rate [member]
Summary of financial risk management [line items]
Total loans8,404 11,355
Fixed rate [member] | US dollar
Summary of financial risk management [line items]
Total loans8,404 11,355
Floating rate [member]
Summary of financial risk management [line items]
Total loans 2,063
Floating rate [member] | US dollar
Summary of financial risk management [line items]
Total loans 2,063
Decrease in the profit (loss) due to a 1% increase in floating interest rates (4)
Increase in the profit (loss) due to a 1% decrease in floating interest rates $ 4

5 Financial risk management (_5

5 Financial risk management (Details 4) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Less than 3 months [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities $ 19,908 $ 21,746
Less than 3 months [member] | Trade and other payables [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities19,908 21,746
Less than 3 months [member] | Borrowings [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities
More than 5 years [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities 290
More than 5 years [member] | Trade and other payables [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities 290
More than 5 years [member] | Borrowings [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities
No deadline [member] | Trade and other payables [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities18,169 1,045
No deadline [member] | Borrowings [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities
From 1 to 2 years [Member] | Trade and other payables [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities200 284
From 1 to 2 years [Member] | Borrowings [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities8,261
From 2 to 5 years [member] | Trade and other payables [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities8,856 6,809
From 2 to 5 years [member] | Borrowings [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities 11,159
No deadline [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities18,169 1,045
From 1 to 2 years [Member]
Summary of financial risk management [line items]
Non-derivative financial liabilities8,461 284
From 2 to 5 years [member]
Summary of financial risk management [line items]
Non-derivative financial liabilities $ 8,856 $ 17,968

5 Financial risk management (_6

5 Financial risk management (Details 5) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Financial Risk Management
Total liabilities $ 85,898 $ 82,113
Less: Cash and cash equivalents and Financial assets at fair value through profit or loss(6,584)(4,356)
Net debt79,314 77,757
Total Equity62,898 80,520 $ 64,825 $ 58,179
Total capital attributable to owners $ 142,212 $ 158,277
Gearing ratio55.77%49.13%

5 Financial risk management (_7

5 Financial risk management (Details 6) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of financial risk management [line items]
Assets $ 4,946 $ 4,138
Liabilities1 279
Derivative financial instruments [member]
Summary of financial risk management [line items]
Liabilities1 279
Level 1 [member]
Summary of financial risk management [line items]
Assets4,946 4,138
Liabilities
Level 1 [member] | Derivative financial instruments [member]
Summary of financial risk management [line items]
Liabilities
Level 2 [member]
Summary of financial risk management [line items]
Assets
Liabilities1 279
Level 2 [member] | Derivative financial instruments [member]
Summary of financial risk management [line items]
Liabilities1 279
Money market funds [member]
Summary of financial risk management [line items]
Assets3,798
Money market funds [member] | Level 1 [member]
Summary of financial risk management [line items]
Assets3,798
Money market funds [member] | Level 2 [member]
Summary of financial risk management [line items]
Assets
Government bonds [member]
Summary of financial risk management [line items]
Assets2,222
Government bonds [member] | Level 1 [member]
Summary of financial risk management [line items]
Assets2,222
Government bonds [member] | Level 2 [member]
Summary of financial risk management [line items]
Assets
Money market funds [member]
Summary of financial risk management [line items]
Assets2,724 340
Money market funds [member] | Level 1 [member]
Summary of financial risk management [line items]
Assets2,724 340
Money market funds [member] | Level 2 [member]
Summary of financial risk management [line items]
Assets

5 Financial risk management (_8

5 Financial risk management (Details Narrative) $ in Millions12 Months Ended
Dec. 31, 2020ARS ($)$ / $Dec. 31, 2019ARS ($)$ / $
Financial Risk Management
Exchange rate | $ / $84.1559.89
Delinquent trade receivables $ 8,035.8 $ 4,711.9
Allowances4,604.8 2,104.9
Financial assets $ 2,221.8 $ 3,787.7
Description of fixed rates exposesThe 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 increased semi-annually by a quarter-point, which was repaid in October 2020-, 100% of the loans were obtained at fixed interest rates.

6 Critical accounting estimat_2

6 Critical accounting estimates and judgments (Details Narrative) - ARS ($) $ in MillionsDec. 16, 2020Dec. 31, 2020
Disclosure of information about activities subject to rate regulation [line items]
Electricity discount rate12.16%
Impairment of property, plant and equipment $ 17,396
DNU 1020/2020 [member]
Disclosure of information about activities subject to rate regulation [line items]
Maximum renegotiation period2 years
Continuation of the rate freezeContinuation of the rate freeze for an additional term of 90 days, until March 31, 2021, or until the new transitional electricity rate schedules resulting from the Transitional Tariff System come into effect;
Extension of the ENRE's interventionExtension of the ENRE’s intervention for a term of 1 year or until the completion of the tariff review renegotiation, whichever occurs first.
Scenario No. 1 [member]
Disclosure of information about activities subject to rate regulation [line items]
Probability of occurrence assigned percentage30.00%
Scenario No. 2 [member]
Disclosure of information about activities subject to rate regulation [line items]
Probability of occurrence assigned percentage65.00%
Scenario No. 3 [member]
Disclosure of information about activities subject to rate regulation [line items]
Probability of occurrence assigned percentage5.00%

7 Interest in joint venture (De

7 Interest in joint venture (Details) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Summary of interests in joint ventures [line items]
Equity attributable to the owners $ 11 $ 15
SACME [member]
Summary of interests in joint ventures [line items]
Percentage interest held in capital stock and votes50.00%
Equity attributable to the owners $ 11 $ 15

8 Contingencies and lawsuits (D

8 Contingencies and lawsuits (Details Narrative) $ in MillionsDec. 31, 2019ARS ($)
Contingencies And Lawsuits
Legal provision $ 2,431.5

9 Revenue from sales and ener_3

9 Revenue from sales and energy purchases (Details)12 Months Ended
Dec. 31, 2020
T1 (small demand segment) [member]
Disclosure of information about activities subject to rate regulation [line items]
Types of servicesSmall demand segment: Residential use and public lighting (T1)
Description of the main services providedRelates to the highest demand average recorded over 15 consecutive minutes that is less than 10 kilowatts. In turn, this segment is subdivided into different residential categories based on consumption. This segment also includes a category for public lighting. Users are categorized by the Company according to their consumption.
T2 (medium demand segment) [member]
Disclosure of information about activities subject to rate regulation [line items]
Types of servicesMedium demand segment: Commercial and industrial customers (T2)
Description of the main services providedRelates to the highest demand average recorded over 15 consecutive minutes that is equal to or greater than 10 Kilowatts but less than 50 Kilowatts. The Company agrees with the user the supply capacity.
T3 (large demand segment) [member]
Disclosure of information about activities subject to rate regulation [line items]
Types of servicesLarge demand segment (T3)
Description of the main services providedRelates to the highest demand average recorded over 15 consecutive minutes that is greater than 50 Kilowatts. In turn, this segment is subdivided into categories according to the supply voltage -low, medium or high-, from voltages of up to 1 Kilovolt to voltages greater than 66 Kilovolts.
Other demand segment [member]
Disclosure of information about activities subject to rate regulation [line items]
Types of servicesOther: (Shantytowns/Wheeling system)
Description of the main services providedRevenue is recognized to the extent that a renewal of the Framework Agreement has been formalized for the period in which the service was rendered. In the case of the service related to the Wheeling system, revenue is recognized when the Company allows third parties (generators and large users) to access to the available transmission capacity within its distribution system upon payment of a wheeling fee.
Right of use of poles [member]
Disclosure of information about activities subject to rate regulation [line items]
Types of servicesRight of use of poles
Description of the main services providedRevenue is recognized to the extent that the rental value of the right of use of the poles used by the Company’s electricity network has been agreed upon for the benefit of third parties.
Connection and reconnection charges [member]
Disclosure of information about activities subject to rate regulation [line items]
Types of servicesConnection and reconnection charges
Description of the main services providedRelate to revenue accrued for the carrying out of the electricity supply connection of new customers or the reconnection of already existing users.
Energy purchase [member]
Disclosure of information about activities subject to rate regulation [line items]
Types of servicesEnergy purchase
Description of the main services providedThe Company bills its users the cost of its purchases of energy, which includes charges for purchases of energy and power. The Company purchases electric power at seasonal prices approved by the ENRE. The price of the Company’s electric power represents transmission costs and other regulatory charges.
Energy losses [member]
Disclosure of information about activities subject to rate regulation [line items]
Types of servicesEnergy losses
Description of the main services providedEnergy losses are equivalent to the difference between energy purchased and energy sold. These losses can be classified into technical and non-technical losses. Technical losses represent the energy lost during transmission and distribution within the network as a consequence of the natural heating of the conductors and transformers that carry electricity from power generation plants to users. Non-technical losses represent the remainder of the Company’s energy losses and are mainly due to the illegal use of its services or the theft of energy. Energy losses require that the Company purchase additional energy in order to meet the demand and its Concession Agreement allows it to recover from its users the cost of these purchases up to a loss factor specified in its concession for each rate category. The current loss factor recognized in the tariff by virtue of its concession amounts to approximately 9.1%.

9 Revenue from sales and ener_4

9 Revenue from sales and energy purchases (Details 1) $ in Millions12 Months Ended
Dec. 31, 2020ARS ($)MWhDec. 31, 2019ARS ($)MWhDec. 31, 2018ARS ($)MWh
Disclosure of information about activities subject to rate regulation [line items]
Total - Revenue $ 91,316 $ 122,437 $ 117,120
T1 (small demand segment) [member]
Disclosure of information about activities subject to rate regulation [line items]
Sale of energy | MWh11,600,000 10,768,000 11,482,000
Total - Revenue $ 57,356 $ 72,579 $ 78,952
T2 (medium demand segment) [member]
Disclosure of information about activities subject to rate regulation [line items]
Sale of energy | MWh1,341,000 1,549,000 1,668,000
Total - Revenue $ 10,544 $ 15,975 $ 12,658
T3 (large demand segment) [member]
Disclosure of information about activities subject to rate regulation [line items]
Sale of energy | MWh3,210,000 3,503,000 3,646,000
Total - Revenue $ 19,830 $ 31,947 $ 23,579
Other demand segment [member]
Disclosure of information about activities subject to rate regulation [line items]
Sale of energy | MWh4,028,000 4,154,000 4,376,000
Total - Revenue $ 3,112 $ 1,431 $ 1,379
Subtotal - Sales of electricity [member]
Disclosure of information about activities subject to rate regulation [line items]
Sale of energy | MWh20,179,000 19,974,000 21,172,000
Total - Revenue $ 90,842 $ 121,932 $ 116,568
Right of use of poles [member]
Disclosure of information about activities subject to rate regulation [line items]
Total - Revenue421 386 398
Connection and reconnection charges [member]
Disclosure of information about activities subject to rate regulation [line items]
Total - Revenue53 119 154
Subtotal Other services [member]
Disclosure of information about activities subject to rate regulation [line items]
Total - Revenue $ 474 $ 505 $ 552
Energy purchase [member]
Disclosure of information about activities subject to rate regulation [line items]
Sale of energy | MWh[1]25,124,000 24,960,000 25,906,000
Total - Revenue[1] $ (57,930) $ (77,649) $ (66,721)
[1]As of December 31, 2020, 2019 and 2018, includes technical and non-technical energy losses for 4,945 GWh, 4,986 GWh and 4,734 GWh, respectively.

10 Expenses by nature (Details)

10 Expenses by nature (Details) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Summary of expenses by nature [line items]
Transmission and distribution expenses $ 19,866 $ 21,980 $ 22,842
Selling expenses10,843 10,007 10,534
Administrative expenses5,353 5,223 6,012
Expenses by nature36,062 37,210 39,388
Salaries and social security taxes [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses7,756 8,666 9,066
Selling expenses1,287 1,424 1,627
Administrative expenses2,272 1,819 1,914
Expenses by nature11,315 11,909 12,607
Pension plans [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses327 260 169
Selling expenses54 43 30
Administrative expenses96 54 36
Expenses by nature477 357 235
Communications expenses [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses218 113 170
Selling expenses444 504 564
Administrative expenses 23 34
Expenses by nature662 640 768
Allowance for the impairment of trade and other receivables [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses
Selling expenses4,183 1,844 2,046
Administrative expenses
Expenses by nature4,183 1,844 2,046
Supplies consumption [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses1,878 2,200 1,654
Selling expenses
Administrative expenses148 156 257
Expenses by nature2,026 2,356 1,911
Leases and insurance [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses1 1
Selling expenses1
Administrative expenses315 308 377
Expenses by nature317 308 378
Security service [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses306 323 286
Selling expenses32 58 4
Administrative expenses35 126 269
Expenses by nature373 507 559
Fees and remuneration for services [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses3,900 3,481 2,956
Selling expenses2,169 2,203 2,177
Administrative expenses1,534 1,856 2,108
Expenses by nature7,603 7,540 7,241
Public relations and marketing [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses
Selling expenses19 56
Administrative expenses 67
Expenses by nature19 56 67
Advertising and sponsorship [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses
Selling expenses10 29
Administrative expenses 35
Expenses by nature10 29 35
Reimbursements to personnel [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses
Selling expenses
Administrative expenses1 1 1
Expenses by nature1 1 1
Depreciation of property, plants and equipments [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses5,118 4,952 4,217
Selling expenses762 738 629
Administrative expenses626 605 516
Expenses by nature6,506 6,295 5,362
Depreciation of right-of-use asset [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses32 22
Selling expenses64 45
Administrative expenses225 156
Expenses by nature321 223
Directors and Supervisory Committee members' fees [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses
Selling expenses
Administrative expenses28 30 46
Expenses by nature28 30 46
ENRE penalties [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses330 1,963 4,321
Selling expenses365 1,806 2,202
Administrative expenses
Expenses by nature695 3,769 6,523
Taxes and charges [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses
Selling expenses1,453 1,257 1,254
Administrative expenses64 68 340
Expenses by nature1,517 1,325 1,594
Other [member]
Summary of expenses by nature [line items]
Transmission and distribution expenses 2
Selling expenses 1
Administrative expenses9 21 12
Expenses by nature $ 9 $ 21 $ 15

10 Expenses by nature (Details

10 Expenses by nature (Details Narrative) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Expenses By Nature
Description of technical service quality-related penaltiesIncludes recovery of technical service quality-related penalties of six-month control periods Nos. 47 and 48 for $ 700.8 million, due to the fact that quality levels were better than estimated.
Expenses capitalized in property, plant and equipment $ 1,846 $ 1,533.5 $ 2,137.9

11 Other operating income (ex_3

11 Other operating income (expense) (Details) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Summary of other operating expenses net [line items]
Other operating income $ 2,200 $ 2,364 $ 1,903
Other operating expense(2,045)(3,479)(3,438)
Other operating expense, net(2,045)(3,479)(3,438)
Income from customer surcharges [member]
Summary of other operating expenses net [line items]
Other operating income1,550 1,567 1,385
Commissions on municipal taxes collection [member]
Summary of other operating expenses net [line items]
Other operating income224 175 161
Fines to suppliers [member]
Summary of other operating expenses net [line items]
Other operating income 27 161
Services provided to third parties [member]
Summary of other operating expenses net [line items]
Other operating income240 245
Related parties [member]
Summary of other operating expenses net [line items]
Other operating income43 27 93
Income from non-reimbursable customer contributions [member]
Summary of other operating expenses net [line items]
Other operating income26 9 12
Other [member]
Summary of other operating expenses net [line items]
Other operating income46 91 91
Gratifications for services [member]
Summary of other operating expenses net [line items]
Other operating expense(51)(262)(155)
Cost for services provided to third parties [member]
Summary of other operating expenses net [line items]
Other operating expense(96)(132)(110)
Severance paid [member]
Summary of other operating expenses net [line items]
Other operating expense(25)(29)(35)
Debit and Credit Tax [member]
Summary of other operating expenses net [line items]
Other operating expense(818)(1,079)(1,245)
Provision for contingencies [member]
Summary of other operating expenses net [line items]
Other operating expense(683)(1,861)(1,516)
Disposals of property, plant and equipment [member]
Summary of other operating expenses net [line items]
Other operating expense(151)(86)(281)
Refund of fines to suppliers [member]
Summary of other operating expenses net [line items]
Other operating expense(129)
Other [member]
Summary of other operating expenses net [line items]
Other operating expense $ (92) $ (30) $ (96)

12 Net finance costs (Details)

12 Net finance costs (Details) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Summary of net financial costs [line items]
Total financial income $ 55 $ 78 $ 176
Total finance costs(9,276)(9,205)(10,416)
Total other finance costs(1,890)(4,796)(4,114)
Total net finance costs(11,111)(13,923)(14,354)
Financial interest [member]
Summary of net financial costs [line items]
Total financial income25 75 72
Other interest [member]
Summary of net financial costs [line items]
Total financial income30 3 104
Commercial interest [member]
Summary of net financial costs [line items]
Total finance costs(5,986)(4,069)(6,191)
Interest and other [member]
Summary of net financial costs [line items]
Total finance costs(3,170)(5,106)(4,159)
Fiscal interest [member]
Summary of net financial costs [line items]
Total finance costs(109)(7)(48)
Bank fees and expenses [member]
Summary of net financial costs [line items]
Total finance costs(11)(23)(18)
Changes in fair value of financial assets [member]
Summary of net financial costs [line items]
Total other finance costs989 383 1,563
Net gain from the repurchase of Corporate Notes [member]
Summary of net financial costs [line items]
Total other finance costs415 622 10
Exchange differences [member]
Summary of net financial costs [line items]
Total other finance costs(2,955)(5,674)(5,506)
Adjustment to present value of receivables [member]
Summary of net financial costs [line items]
Total other finance costs(129)(104)(1)
Recovery of provision for credit RDSA [member]
Summary of net financial costs [line items]
Total other finance costs
Other finance costs [member]
Summary of net financial costs [line items]
Total other finance costs $ (210) $ (23) $ (180)

13 Basic and diluted earnings p

13 Basic and diluted earnings per share (Details) - ARS ($) $ / shares in Units, $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Basic and diluted (loss) profit per share:
(Loss) Profit for the year $ (17,698) $ 16,518 $ 8,995
Weighted average number of common shares outstanding875 875 890
Basic and diluted profit per share - in pesos[1] $ (20.23) $ 18.88 $ 10.11
[1]As of December 31, 2019, includes the result of the Agreement on the Regularization of Obligations.

14 Property, plant and equipm_3

14 Property, plant and equipment (Details) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [line items]
Cost $ 184,961 $ 191,585 $ 178,534 $ 162,514
Accumlated depreciation(60,047)(53,691)(47,760)(43,074)
Property, plant, and equipment, beginning137,894 130,774 119,440
Additions11,073 13,501 17,897
Disposals(151)(86)(1,201)
Transfers
Depreciation for the year(6,506)(6,295)(5,362)
Impairment(17,396)
Property, plant, and equipment, ending124,914 137,894 130,774
Lands and buildings [member]
Disclosure of detailed information about property, plant and equipment [line items]
Cost3,644 3,256 3,034 2,881
Accumlated depreciation(715)(623)(510)(430)
Property, plant, and equipment, beginning2,633 2,524 2,451
Additions42 49 39
Disposals
Transfers347 172 187
Depreciation for the year(93)(112)(153)
Impairment
Property, plant, and equipment, ending2,929 2,633 2,524
Substations [member]
Disclosure of detailed information about property, plant and equipment [line items]
Cost31,469 29,997 28,822 28,198
Accumlated depreciation(10,531)(9,341)(8,319)(7,476)
Property, plant, and equipment, beginning20,656 20,503 20,722
Additions1,271 10 238
Disposals(2) (5)
Transfers4,187 1,165 393
Depreciation for the year(1,192)(1,022)(845)
Impairment(3,982)
Property, plant, and equipment, ending20,938 20,656 20,503
High, medium and low voltage lines [member]
Disclosure of detailed information about property, plant and equipment [line items]
Cost80,175 85,400 79,671 76,254
Accumlated depreciation(30,998)(28,087)(25,479)(23,548)
Property, plant, and equipment, beginning57,313 54,192 52,706
Additions144 213 797
Disposals(52)(10)(198)
Transfers4,148 5,866 3,339
Depreciation for the year(3,021)(2,948)(2,452)
Impairment(9,355)
Property, plant, and equipment, ending49,177 57,313 54,192
Meters and transformer chambers and platforms [member]
Disclosure of detailed information about property, plant and equipment [line items]
Cost35,036 36,386 32,967 31,496
Accumlated depreciation(13,698)(12,193)(10,804)(9,710)
Property, plant, and equipment, beginning24,193 22,163 21,786
Additions293 393 108
Disposals(97)(72)(75)
Transfers2,550 3,127 1,487
Depreciation for the year(1,542)(1,418)(1,143)
Impairment(4,059)
Property, plant, and equipment, ending21,338 24,193 22,163
Tools, furniture, vehicles, equipment, communications and advances to suppliers [member]
Disclosure of detailed information about property, plant and equipment [line items]
Cost6,271 5,445 5,561 5,247
Accumlated depreciation(4,105)(3,447)(2,648)(1,910)
Property, plant, and equipment, beginning1,998 2,913 3,337
Additions725 1,410 1,081
Disposals (4)(923)
Transfers101 (1,526)187
Depreciation for the year(658)(795)(769)
Impairment
Property, plant, and equipment, ending2,166 1,998 2,913
Construction in process [member]
Disclosure of detailed information about property, plant and equipment [line items]
Cost28,043 30,770 28,070 18,248
Accumlated depreciation
Property, plant, and equipment, beginning30,770 28,070 18,248
Additions8,511 11,293 15,362
Disposals
Transfers(11,238)(8,593)(5,540)
Depreciation for the year
Impairment
Property, plant, and equipment, ending28,043 30,770 28,070
Supplies and spare parts [member]
Disclosure of detailed information about property, plant and equipment [line items]
Cost323 331 409 $ 190
Accumlated depreciation
Property, plant, and equipment, beginning331 409 190
Additions87 133 272
Disposals
Transfers(95)(211)(53)
Depreciation for the year
Impairment
Property, plant, and equipment, ending $ 323 $ 331 $ 409

14 Property, plant and equipm_4

14 Property, plant and equipment (Details Narrative) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about property, plant and equipment [line items]
Direct costs $ 1,846,000 $ 1,533,500 $ 2,137,900
General Rodriguez transformer station [member]
Disclosure of detailed information about property, plant and equipment [line items]
Direct costs $ 1,453,200

15 Financial instruments (Detai

15 Financial instruments (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost $ 16,446 $ 17,608 $ 7,387
Financial assets at fair value through profit or loss4,946 3,798 1,563
Non-financial assets326
Total21,718 21,406 $ 8,950
Trade receivables [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost14,151 16,961
Financial assets at fair value through profit or loss
Non-financial assets
Total14,151 16,961
Other receivables [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost340 429
Financial assets at fair value through profit or loss
Non-financial assets326
Total666 429
Cash and cash equivalents [member] | Cash and banks [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost1,638 218
Financial assets at fair value through profit or loss
Non-financial assets
Total1,638 218
Cash and cash equivalents [member] | Money market funds [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost
Financial assets at fair value through profit or loss2,724
Non-financial assets
Total2,724
Financial assets at fair value through profit or loss [member] | Money market funds [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost
Financial assets at fair value through profit or loss3,798
Non-financial assets
Total $ 3,798
Financial assets at fair value through profit or loss [member] | Government bonds [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost
Financial assets at fair value through profit or loss2,222
Non-financial assets
Total2,222
Financial assets at amortized cost [member] | Government bonds [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost317
Financial assets at fair value through profit or loss
Non-financial assets
Total $ 317

15 Financial instruments (Det_2

15 Financial instruments (Details 1) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost $ 51,228 $ 41,576
Financial liabilities at fair value through profit or loss
Financial liabilities51,228 41,576
Trade payables [member]
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost33,540 17,791
Financial liabilities at fair value through profit or loss
Financial liabilities33,540 17,791
Other payables [member]
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost9,284 10,367
Financial liabilities at fair value through profit or loss
Financial liabilities9,284 10,367
Borrowings [member]
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost8,404 13,418
Financial liabilities at fair value through profit or loss
Financial liabilities8,404 $ 13,418
Derivative financial instruments [member]
Disclosure of detailed information about financial instruments [line items]
Financial liabilities at amortized cost
Financial liabilities at fair value through profit or loss1
Financial liabilities $ 1

15 Financial instruments (Det_3

15 Financial instruments (Details 2) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost $ 16,446 $ 17,608 $ 7,387
Financial assets at fair value through profit or loss4,946 3,798 1,563
Financial instruments21,718 21,406 8,950
Interest income [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost55 78 1,406
Financial assets at fair value through profit or loss
Financial instruments55 78 1,406
Exchange differences [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost570 830 6,000
Financial assets at fair value through profit or loss579 1,456
Financial instruments1,149 2,286 6,000
Changes in fair value of financial assets [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost
Financial assets at fair value through profit or loss989 383 1,563
Financial instruments989 383 1,563
Adjustment to present value [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost622 (1)
Financial assets at fair value through profit or loss
Financial instruments $ 622 (1)
Corporate notes [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost415
Financial assets at fair value through profit or loss
Financial instruments $ 415
Bank fees and expenses [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets at amortized cost(18)
Financial assets at fair value through profit or loss
Financial instruments $ (18)

15 Financial instruments (Det_4

15 Financial instruments (Details 3) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Disclosure of detailed information about financial instruments [line items]
Trade receivables $ 14,151 $ 16,961
Group 1 [member]
Disclosure of detailed information about financial instruments [line items]
Trade receivables[1]10,437 14,376
Group 2 [member]
Disclosure of detailed information about financial instruments [line items]
Trade receivables[2]864 721
Group 3 [member]
Disclosure of detailed information about financial instruments [line items]
Trade receivables[3] $ 2,850 $ 1,864
[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.

16 Right-of-use asset (Details)

16 Right-of-use asset (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Right-of-use Asset
Total right-of-use asset by leases $ 280 $ 355

16 Right-of-use asset (Details

16 Right-of-use asset (Details 1) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Right-of-use Asset
Balance at beginning of year $ 355
Incorporation by adoption of IFRS 16 574
Additions246 4
Depreciation for the year321 223
Balance at end of the year $ 280 $ 355

17 Other receivables (Details)

17 Other receivables (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of other receivables [line items]
Non-current other receivables $ 42 $ 35
Current other receivables624 394
Credit for real estate asset [member]
Summary of other receivables [line items]
Non-current other receivables2,151 2,894
Current other receivables36 82
Judicial deposits [member]
Summary of other receivables [line items]
Current other receivables77 93
Security deposits [member]
Summary of other receivables [line items]
Current other receivables38 34
Prepaid expenses [member]
Summary of other receivables [line items]
Current other receivables43 21
Advances to personnel [member]
Summary of other receivables [line items]
Current other receivables2
Financial credit [member]
Summary of other receivables [line items]
Non-current other receivables14 30
Current other receivables18 61
Advances to suppliers [member]
Summary of other receivables [line items]
Current other receivables73
Tax credits [member]
Summary of other receivables [line items]
Current other receivables326 20
Related parties [member]
Summary of other receivables [line items]
Non-current other receivables3 5
Current other receivables19 35
Subtotal [member]
Summary of other receivables [line items]
Current other receivables632 346
Debtors for complementary activities [member]
Summary of other receivables [line items]
Current other receivables69 137
Allowance for the impairment of other receivables [member]
Summary of other receivables [line items]
Non-current other receivables(2,126)(2,894)
Current other receivables $ (77) $ (89)

17 Other receivables (Details 1

17 Other receivables (Details 1) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Other Receivables
Allowance for the impairment of other receivables, beginning $ 2,983 $ 162
Increase[1]93 2,935
Result from exposure to inflation(790)(58)
Recovery(83)(56)
Allowance for the impairment of other receivables, ending $ 2,203 $ 2,983
[1]As of December 31, 2019, the impairment charge was charged to finance costs, net of the receivable revaluation.

17 Other receivables (Details 2

17 Other receivables (Details 2) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of other receivables [line items]
Other receivables $ 666 $ 429
Without expiry date [member]
Summary of other receivables [line items]
Other receivables134 160
Past due [member]
Summary of other receivables [line items]
Other receivables65 69
Up to 3 months [member]
Summary of other receivables [line items]
Other receivables83 125
From 3 to 6 months [member]
Summary of other receivables [line items]
Other receivables317 20
From 6 to 9 months [member]
Summary of other receivables [line items]
Other receivables11 16
From 9 to 12 months [member]
Summary of other receivables [line items]
Other receivables14 4
More than 12 months [member]
Summary of other receivables [line items]
Other receivables $ 42 $ 35

18 Trade receivables (Details)

18 Trade receivables (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of trade receivables [line items]
Current trade receivables $ 14,151 $ 16,961
Sales of electricity - billed [member]
Summary of trade receivables [line items]
Current trade receivables12,304 10,501
Framework agreement [member]
Summary of trade receivables [line items]
Current trade receivables[1]9 12
Receivables in litigation [member]
Summary of trade receivables [line items]
Current trade receivables300 293
Allowance for the impairment of trade receivables [member]
Summary of trade receivables [line items]
Current trade receivables(4,605)(2,105)
Subtotal [member]
Summary of trade receivables [line items]
Current trade receivables8,008 8,701
Sales of electricity - unbilled [member]
Summary of trade receivables [line items]
Current trade receivables5,812 7,884
PBA & CABA government credit [member]
Summary of trade receivables [line items]
Current trade receivables329 342
Fee payable for the expansion of the transportation and others [member]
Summary of trade receivables [line items]
Current trade receivables $ 2 $ 34
[1]As of December 31, 2020, the Province of Buenos Aires and the Federal Government have a debt with the Company for the consumption of electricity by low-income areas and shantytowns. The indicated amount does not include interest and no revenue for this concept has been recognized by the Company. See Note 2.f).

18 Trade receivables (Details 1

18 Trade receivables (Details 1) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Trade Receivables
Balance at beginning of the year $ 2,105 $ 1,887
Increase4,173 1,858
Decrease(615)(1,050)
Result from exposure to inflation(1,058)(590)
Balance at end of the year $ 4,605 $ 2,105

18 Trade receivables (Details 2

18 Trade receivables (Details 2) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of trade receivables [line items]
Trade receivables $ 14,151 $ 16,961
Not due [member]
Summary of trade receivables [line items]
Trade receivables9 11
Past due [member]
Summary of trade receivables [line items]
Trade receivables3,714 2,586
Up to 3 months [member]
Summary of trade receivables [line items]
Trade receivables $ 10,428 $ 14,364

18 Trade receivables (Details 3

18 Trade receivables (Details 3) $ in MillionsDec. 31, 2020ARS ($)
5% increase in the uncollectibility rate estimate [member]
Summary of trade receivables [line items]
Allowance $ 4,835
Variation230
5% decrease in the uncollectibility rate estimate [member]
Summary of trade receivables [line items]
Allowance4,374
Variation $ (231)

19 Financial assets at fair v_3

19 Financial assets at fair value through profit or loss (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of financial assets at fair value through profit or loss [line items]
Total Current $ 2,222 $ 3,798
Government bonds [member]
Summary of financial assets at fair value through profit or loss [line items]
Total Current2,222
Money market funds [member]
Summary of financial assets at fair value through profit or loss [line items]
Total Current $ 3,798

20 Financial assets at amorti_3

20 Financial assets at amortized cost (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of financial assets at amortized cost [line items]
Total Current $ 78
Government bonds [member]
Summary of financial assets at amortized cost [line items]
Total Current $ 239 $ 0

21 Inventories (Details)

21 Inventories (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Inventories Abstract
Supplies and spare-parts $ 1,839 $ 2,524
Advance to suppliers34 99
Total inventories $ 1,873 $ 2,623

22 Cash and cash equivalents (D

22 Cash and cash equivalents (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Cash and cash equivalents [abstract]
Cash and banks $ 1,638 $ 218
Money market funds2,724 340
Total cash and cash equivalents $ 4,362 $ 558

23 Share capital and addition_3

23 Share capital and additional paid-in capital (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Disclosure of share capital and additional paid in capital [line items]
Share capital and additional paid-in capital balance $ 38,596 $ 38,596
Share Capital [member]
Disclosure of share capital and additional paid in capital [line items]
Share capital and additional paid-in capital balance38,092 38,092
Additional Paid-in Capital [member]
Disclosure of share capital and additional paid in capital [line items]
Share capital and additional paid-in capital balance $ 504 $ 504

23 Share capital and addition_4

23 Share capital and additional paid-in capital (Details Narrative)12 Months Ended
Dec. 31, 2020shares
Class A Common Stock [member]
Disclosure of share capital and additional paid in capital [line items]
Number of shares issued462,292,111
Description of par value rightsPar value of one peso each and the right to one vote per share.
Class B Common Stock [member]
Disclosure of share capital and additional paid in capital [line items]
Number of shares issued442,210,385
Description of par value rightsPar value of one peso each and the right to one vote per share.
Class C Common Stock [member]
Disclosure of share capital and additional paid in capital [line items]
Number of shares issued1,952,604
Description of par value rightsPar value of one peso each and the right to one vote per share.
Share Capital [member]
Disclosure of share capital and additional paid in capital [line items]
Number of shares issued906,455,100

25 The Company's Share-based _2

25 The Company's Share-based Compensation Plan (Details Narrative) $ in Millions12 Months Ended
Dec. 31, 2020ARS ($)
Share-based Compensation Plan
Salaries and social security taxes $ 103.3

26 Trade payables (Details)

26 Trade payables (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of trade payables [line items]
Total Non-current $ 521 $ 503
Total Current33,019 17,288
Customer guarantees [member]
Summary of trade payables [line items]
Total Non-current274 290
Customer contributions [member]
Summary of trade payables [line items]
Total Non-current247 213
Total Current32 42
Payables for purchase of electricity - CAMMESA [member]
Summary of trade payables [line items]
Total Current21,384 5,945
Provision for unbilled electricity purchases - CAMMESA [member]
Summary of trade payables [line items]
Total Current6,644 6,722
Suppliers [member]
Summary of trade payables [line items]
Total Current4,560 4,140
Advance to customer [member]
Summary of trade payables [line items]
Total Current362 388
Discounts to customers [member]
Summary of trade payables [line items]
Total Current $ 37 $ 51

26 Trade payables (Details Narr

26 Trade payables (Details Narrative) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Trade Payables
Non-current customer contributions $ 42.8 $ 61.4

27 Other payables (Details)

27 Other payables (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of other payables [line items]
Noncurrent $ 6,285 $ 5,472
Current2,999 4,895
ENRE penalties and discounts [member]
Summary of other payables [line items]
Noncurrent6,224 5,353
Current2,675 4,610
Finance lease liability [member]
Summary of other payables [line items]
Noncurrent[1]61 119
Current[1]295 182
Related parties [member]
Summary of other payables [line items]
Current15 17
Advances for works to be performed [member]
Summary of other payables [line items]
Current13 8
Payment agreements with ENRE [member]
Summary of other payables [line items]
Current66
Other [member]
Summary of other payables [line items]
Current $ 1 $ 12
[1]The development of the financial lease liability is as follows:

27 Other payables (Details 1)

27 Other payables (Details 1) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Other Payables
Balance at beginning of year $ 301
Incorporation by adoption of IFRS 16 574
Increase246 4
Payments(686)(289)
Exchange difference and gain on net monetary position495 12
Balance at end of the year $ 356 $ 301

27 Other payables (Details 2)

27 Other payables (Details 2) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of other payables [line items]
Total future minimum lease payments $ 357 $ 192
2021 [member]
Summary of other payables [line items]
Total future minimum lease payments296 188
2022 [member]
Summary of other payables [line items]
Total future minimum lease payments41 4
2023 [member]
Summary of other payables [line items]
Total future minimum lease payments $ 20

27 Other payables (Details 3)

27 Other payables (Details 3) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of other payables [line items]
Total future minimum lease collections $ 946 $ 442
2021 [member]
Summary of other payables [line items]
Total future minimum lease collections474 442
2022 [member]
Summary of other payables [line items]
Total future minimum lease collections $ 472

28 Deferred revenue (Details)

28 Deferred revenue (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of deferred revenue [line items]
Non-current $ 1,471 $ 368
Current37 7
Nonrefundable customer contributions [member]
Summary of deferred revenue [line items]
Non-current1,471 368
Current $ 37 $ 7

29 Borrowings (Details)

29 Borrowings (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Disclosure of detailed information about borrowings [line items]
Non-current borrowings $ 8,261 $ 11,159
Current borrowings143 2,259
Interest from corporate notes [member]
Disclosure of detailed information about borrowings [line items]
Current borrowings143 196
Borrowings [member]
Disclosure of detailed information about borrowings [line items]
Current borrowings 2,063
Corporate notes [member]
Disclosure of detailed information about borrowings [line items]
Non-current borrowings[1] $ 8,261 $ 11,159
[1]Net of debt issuance, repurchase and redemption expenses.

29 Borrowings (Details 1)

29 Borrowings (Details 1) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about borrowings [line items]
Borrowings $ 8,404 $ 13,418 $ 17,311
US dollar
Disclosure of detailed information about borrowings [line items]
Borrowings $ 8,404 $ 13,418

29 Borrowings (Details 2)

29 Borrowings (Details 2) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about borrowings [line items]
Borrowings $ 8,404 $ 13,418 $ 17,311
Fixed rate [member]
Disclosure of detailed information about borrowings [line items]
Borrowings8,404 11,355
Floating rate [member]
Disclosure of detailed information about borrowings [line items]
Borrowings 2,063
Less than 1 year [member] | Fixed rate [member]
Disclosure of detailed information about borrowings [line items]
Borrowings143 196
Less than 1 year [member] | Floating rate [member]
Disclosure of detailed information about borrowings [line items]
Borrowings 2,063
From 1 to 2 years [member] | Fixed rate [member]
Disclosure of detailed information about borrowings [line items]
Borrowings8,261
From 2 to 5 years [member] | Fixed rate [member]
Disclosure of detailed information about borrowings [line items]
Borrowings $ 11,159

29 Borrowings (Details 3)

29 Borrowings (Details 3) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Borrowings [abstract]
Balance at beginning of the year $ 13,418 $ 17,311
Payment of borrowings' interests(918)(1,545)
Paid from repurchase of Corporate Notes(3,798)(2,084)
Payment of borrowings(750)(2,169)
Gain from repurchase of Corporate Notes(415)(622)
Exchange diference and interest accrued4,051 9,104
Result from exposure to inlfation(3,184)(6,577)
Balance at the end of year $ 8,404 $ 13,418

29 Borrowings (Details 4)

29 Borrowings (Details 4) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019
USD
Disclosure of detailed information about borrowings [line items]
Deb structure, beginning $ 11,159
Deb structure, ending $ 8,261 $ 11,159
Class 9 [member] | Fixed rate par note [member]
Disclosure of detailed information about borrowings [line items]
Rate9.75%9.75%
Year of maturity20222022
Class 9 [member] | Fixed rate par note [member] | USD
Disclosure of detailed information about borrowings [line items]
Deb structure, beginning $ 137 $ 166
Debt repurchase(39)(29)
Deb structure, ending $ 98 $ 137

29 Borrowings (Details Narrativ

29 Borrowings (Details Narrative) $ in Millions, $ in Millions12 Months Ended
Dec. 31, 2020USD ($)Jan. 28, 2021USD ($)sharesDec. 31, 2020ARS ($)Sep. 28, 2020USD ($)Dec. 31, 2019ARS ($)Dec. 31, 2018ARS ($)
Disclosure of detailed information about borrowings [line items]
Fair values of noncurrent borrowings $ 6,778.7 $ 10,818.4
Equivalent6,584 4,356
Outstanding value $ 8,404 $ 13,418 $ 17,311
Nominal value percentage100.00%
Description of sale and repurchase of sharesAt a price of 100% of the nominal value thereof, plus any accrued and unpaid interest at the settlement date. Additionally, such article states that the aforementioned offer shall be made within 30 days following the occurrence of the change of control, indicating the specific repurchase date, which shall take place between 30 and 60 days after the date on which the notice of offer due to change of control has been sent.
Class 9 [member] | Fixed rate par note [member] | USD
Disclosure of detailed information about borrowings [line items]
Repurchased of notes $ 38.8
Nominal shares | shares114,000
Equivalent $ 9.6
Corporate notes [member] | USD
Disclosure of detailed information about borrowings [line items]
Nominal value $ 78.1
Equivalent5,952.2
Outstanding value $ 98.2

30 Salaries and social securi_3

30 Salaries and social security taxes payable (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
SalariesAndSocialSecurityTaxesLineItems [Line Items]
Total non-current $ 303 $ 327
Total current3,734 3,278
Early retirements payable [member]
SalariesAndSocialSecurityTaxesLineItems [Line Items]
Total non-current24 54
Total current26 38
Seniority-based bonus [member]
SalariesAndSocialSecurityTaxesLineItems [Line Items]
Total non-current279 273
Salaries payable and provisions [member]
SalariesAndSocialSecurityTaxesLineItems [Line Items]
Total current3,376 2,866
Social security payable [member]
SalariesAndSocialSecurityTaxesLineItems [Line Items]
Total current $ 332 $ 374

30 Salaries and social securi_4

30 Salaries and social security taxes payable (Details 1) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Salaries And Social Security Taxes Payable
Salaries $ 8,147 $ 8,574 $ 9,077
Social security taxes3,168 3,335 3,530
Total salaries and social security taxes $ 11,315 $ 11,909 $ 12,607

30 Salaries and social securi_5

30 Salaries and social security taxes payable (Details Narrative) $ in MillionsDec. 31, 2020ARS ($)NumberDec. 31, 2019ARS ($)Number
Salaries And Social Security Taxes Payable
Current future payment obligations $ 26.1 $ 38.3
Noncurrent future payment obligations27 53.8
Collective bargaining liabilities $ 279.1 $ 273.7
Number of employees | Number4,776 4,777

31 Benefit plans (Details)

31 Benefit plans (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Benefit Plans
Non-current $ 749 $ 713
Current84 70
Total Benefit plans $ 833 $ 783 $ 874

31 Benefit plans (Details 1)

31 Benefit plans (Details 1) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Benefit Plans
Benefit payment obligations at beginning of year $ 783 $ 874
Current service cost161 150 $ 69
Interest cost316 207 166
Actuarial losses(108)10 12
Result from exposure to inflation for the year(305)(397)
Benefits paid to participating employees(14)(61)
Benefit payment obligations at end of year $ 833 $ 783 $ 874

31 Benefit plans (Details 2)

31 Benefit plans (Details 2) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Benefit Plans
Cost $ 161 $ 150 $ 69
Interest316 207 166
Actuarial results - Other comprehensive (income) loss(108)10 12
Benefit plan charge $ 369 $ 367 $ 247

31 Benefit plans (Details 3)

31 Benefit plans (Details 3)Dec. 31, 2020Dec. 31, 2019
Benefit Plans
Discount rate5.00%5.00%
Salary increase1.00%1.00%
Inflation50.00%31.00%

31 Benefit plans (Details 4)

31 Benefit plans (Details 4) $ in MillionsDec. 31, 2020ARS ($)
Discount Rate 4% [member]
DisclosureOfBenefitPlansLineItems [Line Items]
Obligation $ 910
Variation $ 77
Percent9.00%
Discount Rate 6% [member]
DisclosureOfBenefitPlansLineItems [Line Items]
Obligation $ 767
Variation $ (66)
Percent(8.00%)
Salary Increase 0% [member]
DisclosureOfBenefitPlansLineItems [Line Items]
Obligation $ 764
Variation $ (69)
Percent(8.00%)
Salary Increase 2% [member]
DisclosureOfBenefitPlansLineItems [Line Items]
Obligation $ 913
Variation $ 80
Percent10.00%

31 Benefit plans (Details 5)

31 Benefit plans (Details 5) $ in MillionsDec. 31, 2020ARS ($)
In 2021 [member]
DisclosureOfBenefitPlansLineItems [Line Items]
Benefit payment obligations $ 84
In 2022 [member]
DisclosureOfBenefitPlansLineItems [Line Items]
Benefit payment obligations15
In 2023 [member]
DisclosureOfBenefitPlansLineItems [Line Items]
Benefit payment obligations16
In 2024 [member]
DisclosureOfBenefitPlansLineItems [Line Items]
Benefit payment obligations17
In 2025 [member]
DisclosureOfBenefitPlansLineItems [Line Items]
Benefit payment obligations4
Between 2026 to 2030 [member]
DisclosureOfBenefitPlansLineItems [Line Items]
Benefit payment obligations $ 17

32 Income tax and deferred ta_2

32 Income tax and deferred tax (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Summary of income tax deferred tax [line items]
Tax loss carryforward $ 248 $ 113
Inventories 28
Trade receivables and other receivables1,351 754 932 1,006
Trade payables and other payables677 819 4,092 889
Salaries and social security taxes payable255 154 103 (201)
Benefit plans76 147 222 459
Tax liabilities19 25 33 117
Provisions818 916 724 (1,143)
Deferred tax asset3,444 2,815 6,106 1,268
Property, plant and equipment(23,383)(26,740)(22,498)(15,628)
Financial assets at fair value through profit or loss(298)(283)(445)(809)
Borrowings(2)(5)(9)(91)
Tax inflation adjustment(3,470)(3,087)
Deferred tax liability(27,153)(30,115)(22,952)(16,528)
Net deferred tax liability(23,709)(27,300)(16,847) $ (15,260)
Result from exposure to inflation [member]
Summary of income tax deferred tax [line items]
Tax loss carryforward (113)
Inventories (19)
Trade receivables and other receivables(200)(326)(775)
Trade payables and other payables(217)(1,431)1,586
Salaries and social security taxes payable(40)(36)273
Benefit plans(39)(78)(270)
Tax liabilities(7)(11)(91)
Provisions(243)(253)1,580
Deferred tax asset(746)(2,135)2,171
Property, plant and equipment7,098 7,867 1,890
Financial assets at fair value through profit or loss75 156 785
Borrowings2 3 80
Tax inflation adjustment820
Deferred tax liability7,995 8,026 2,755
Net deferred tax liability7,249 5,891 4,926
Charged to profit and loss [member]
Summary of income tax deferred tax [line items]
Tax loss carryforward248
Inventories (9)
Trade receivables and other receivables797 148 701
Trade payables and other payables75 (1,842)1,617
Salaries and social security taxes payable141 87 31
Benefit plans1 29
Tax liabilities1 3 7
Provisions145 445 287
Deferred tax asset1,408 (1,159)2,663
Property, plant and equipment(3,741)(12,109)(8,760)
Financial assets at fair value through profit or loss(90)6 (421)
Borrowings1 1 2
Tax inflation adjustment(1,203)(3,087)
Deferred tax liability(5,033)(15,189)(9,179)
Net deferred tax liability(3,625)(16,348)(6,516)
Charged to other comprehensive income [member]
Summary of income tax deferred tax [line items]
Tax loss carryforward
Inventories
Trade receivables and other receivables
Trade payables and other payables
Salaries and social security taxes payable
Benefit plans(33)3 4
Tax liabilities
Provisions
Deferred tax asset(33)3 4
Property, plant and equipment
Financial assets at fair value through profit or loss
Borrowings
Tax inflation adjustment
Deferred tax liability
Net deferred tax liability $ (33) $ 3 $ 4

32 Income tax and deferred ta_3

32 Income tax and deferred tax (Details 1) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Summary of income tax deferred tax [line items]
Deferred tax asset $ 3,444 $ 2,815 $ 6,105
Deferred tax liability(27,153)(30,115)(22,952)
Net deferred tax liability(23,709)(27,300)(16,847) $ (15,260)
To be recovered in more than 12 months [member]
Summary of income tax deferred tax [line items]
Deferred tax asset3,444 2,815 6,105
Deferred tax liability $ (27,153) $ (30,115) $ (22,952)

32 Income tax and deferred ta_4

32 Income tax and deferred tax (Details 2) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Income Tax Deferred Tax
Deferred tax $ 3,624 $ (10,457) $ (1,590)
Current tax (3,953)(2,333)
Difference between provision and tax return(61)(120)(7)
Income tax expense3,563 (14,530)(3,930)
(Loss) Profit for the year before taxes $ (21,261) $ 31,048 $ 12,925
Applicable tax rate30.00%30.00%30.00%
Result for the year at the tax rate $ 6,378 $ (9,314) $ (3,878)
Gain on net monetary position(1,339)(2,613)(2,108)
Adjustment effect on tax inflation(2,225)(3,818)
Income tax expense810 1,232 464
Change in the income tax rate 1,599
Difference between provision and tax return(61)(17)(7)
Income tax expense $ 3,563 $ (14,530) $ (3,930)

32 Income tax and deferred ta_5

32 Income tax and deferred tax (Details 3) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Income Tax Deferred Tax
Tax payable $ 3,953
Tax withholdings (1,272)
Total current $ 2,681

33 Tax liabilities (Details)

33 Tax liabilities (Details) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Summary of tax liabilities [line items]
Total Current $ 1,793 $ 2,415
Provincial, municipal and federal contributions and taxes [member]
Summary of tax liabilities [line items]
Total Current459 244
VAT payable [member]
Summary of tax liabilities [line items]
Total Current920 1,772
Tax withholdings [member]
Summary of tax liabilities [line items]
Total Current171 200
SUSS withholdings [member]
Summary of tax liabilities [line items]
Total Current10 11
Municipal taxes [member]
Summary of tax liabilities [line items]
Total Current $ 233 $ 188

34 Provisions (Details)

34 Provisions (Details) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Summary of provisions [line items]
Provisions, beginning $ 2,808
Provisions, ending2,431 $ 2,808
Non-current liabilities [member]
Summary of provisions [line items]
Provisions, beginning2,808 2,240
Increases1,107 1,687
Decreases(105)(28)
Recovery(587)
Result from exposure to inflation for the year(792)(1,091)
Provisions, ending2,431 2,808
Current liabilities [member]
Summary of provisions [line items]
Provisions, beginning291 392
Increases163 174
Decreases(12)(105)
Recovery
Result from exposure to inflation for the year(84)(170)
Provisions, ending $ 358 $ 291

35 Related-party transactions_2

35 Related-party transactions (Details) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of transactions between related parties [line items]
Related-party income $ 43 $ 27 $ 6,555
PESA [member]
Disclosure of transactions between related parties [line items]
Related-party income40 27
SACDE [member]
Disclosure of transactions between related parties [line items]
Related-party income3 70
PESA [member]
Disclosure of transactions between related parties [line items]
Related-party income $ 23

35 Related-party transactions_3

35 Related-party transactions (Details 1) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of transactions between related parties [line items]
Related-party expense $ (353) $ (328) $ (395)
PESA [member]
Disclosure of transactions between related parties [line items]
Related-party expense(206)(185)(180)
SACME [member]
Disclosure of transactions between related parties [line items]
Related-party expense(102)(113)(171)
OSVA [member]
Disclosure of transactions between related parties [line items]
Related-party expense(27)(27)(41)
SB&WM Abogados [member]
Disclosure of transactions between related parties [line items]
Related-party expense(13)
FIDUS [member]
Disclosure of transactions between related parties [line items]
Related-party expense(4)(1)
ABELOVICH, POLANO & ASSOC. [member]
Disclosure of transactions between related parties [line items]
Related-party expense $ (1) $ (2) $ (3)

35 Related-party transactions_4

35 Related-party transactions (Details 2) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Related party transactions [abstract]
Key management personnel's remuneration - salaries $ 322 $ 401 $ 406

35 Related-party transactions_5

35 Related-party transactions (Details 3) - ARS ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Disclosure of transactions between related parties [line items]
Other receivables - current $ 19 $ 35
Other payables(15)(17)
SACME [member]
Disclosure of transactions between related parties [line items]
Other receivables - noncurrent3 5
Other receivables - current1 1
FIDUSSGR [member]
Disclosure of transactions between related parties [line items]
Other receivables - current $ 18 $ 34

35 Related-party transactions_6

35 Related-party transactions (Details Narrative) $ in Millions, $ in MillionsDec. 31, 2021ARS ($)Oct. 30, 2020Dec. 31, 2020ARS ($)Dec. 31, 2020USD ($)
SACDE [member]
Disclosure of transactions between related parties [line items]
Operating cost $ 102
Origenes Seguros de Vida [Member]
Disclosure of transactions between related parties [line items]
Operating cost27
Fidus Sociedad de Garantia Reciproca [Member]
Disclosure of transactions between related parties [line items]
Fund contribution in capacity as protector partner25
Pampa Energia S.A. [Member] | Technical advisory agreement [member]
Disclosure of transactions between related parties [line items]
Description of Maturity termsFive years to commence as from September 19, 2020.
Maturity Terms2025
Pampa Energia S.A. [Member] | USD
Disclosure of transactions between related parties [line items]
Payment for annual advisory services $ 2.5
CREAURBAN S.A. [member]
Disclosure of transactions between related parties [line items]
Down payment $ 26.5
CREAURBAN S.A. [member] | Event of reclassification of financial assets [member]
Disclosure of transactions between related parties [line items]
Total values of the aforementioned work $ 349.3

37 Ordinary and Extraordinary_2

37 Ordinary and Extraordinary Shareholders' Meeting (Details Narrative) - ARS ($) $ in Millions12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Ordinary And Extraordinary Shareholders Meeting
Profit for the year $ 16,518 $ 13,088.1
Statutory reserve826 654.4
Discretionary reserve $ 15,692 $ 12,433.7

38 Termination of agreement o_2

38 Termination of agreement on real estate asset (Details Narrative) $ in MillionsJan. 27, 2021ARS ($)Dec. 31, 2020USD ($)
Aseguradora de cuciones S.A [member] | USD
TerminationOfAgreementOnRealEstateAssetLineItems [Line Items]
Receivable result $ 1,000,000
Payment received370,000
Remaining balance paid $ 630,000
Creaurban S.A [member] | Non-adjusting events after reporting period [member]
TerminationOfAgreementOnRealEstateAssetLineItems [Line Items]
Gains on litigation settlements $ 400
Claim amount $ 400
Description of assignment claiman additional contingent price determined in meters that will be of 30% of the square meters to which the holder of the claim would be entitled if an Internal Rate of Return of at least 15% per annum after taxes were applied to the New Tower Project, after having deducted the New Tower’s development and construction costs and the commitments of the trust and the repayment of the mortgage loan with Banco Patagonia S.A. To be valid, the assignment was subject to the acceptance by Banco Comafi S.A. of an offer under similar terms, condition which was met on January 19, 2021, with the offer of assignment thus becoming accepted by edenor.

39 Change of control (Details N

39 Change of control (Details Narrative) - Pampa Energia S.A. [Member]Dec. 28, 2020
Proportion of ownership interest51.00%
Class A share [member]
Proportion of ownership interest100.00%