Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-33422 |
Entity Registrant Name | EDENOR |
Entity Central Index Key | 0001395213 |
Entity Address, Address Line One | Avenida Del Libertador 6363 |
Entity Address, City or Town | Buenos Aires |
Entity Address, Country | AR |
Entity Address, Postal Zip Code | C1428ARG |
Title of 12(b) Security | Class B Common Shares |
Trading Symbol | EDN |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 906,455,100 |
ICFR Auditor Attestation Flag | false |
Auditor Firm ID | 1349 |
Auditor Name | PRICE WATERHOUSE & CO. S.R.L. |
Auditor Location | Buenos Aires |
Class a issued capital member | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 462,292,111 |
Class b issued capital member | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 442,210,385 |
Class c issued capital member | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,952,604 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | Avenida Del Libertador 6363 |
Entity Address, City or Town | Buenos Aires |
Entity Address, Country | AR |
Entity Address, Postal Zip Code | C1428ARG |
City Area Code | +54 11 |
Local Phone Number | 4346 5510 |
Contact Personnel Name | German Ranftl |
Contact Personnel Fax Number | 54 11 4346 5325 |
Statement of Comprehensive Inco
Statement of Comprehensive Income (Loss) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Revenue | $ 113,500 | $ 137,782 | $ 184,739 |
Energy purchases | (69,800) | (87,408) | (117,160) |
Subtotal | 43,700 | 50,374 | 67,579 |
Transmission and distribution expenses | (29,112) | (29,974) | (33,164) |
Gross margin | 14,588 | 20,400 | 34,415 |
Selling expenses | (11,495) | (16,362) | (15,099) |
Administrative expenses | (7,447) | (8,075) | (7,881) |
Other operating income | 4,842 | 3,635 | 3,567 |
Other operating expense | (4,887) | (3,399) | (5,249) |
Impairment of property, plant and equipment | (26,248) | ||
Income from interest in joint ventures | 2 | 3 | |
Operating profit | (4,397) | (30,049) | 9,756 |
Agreement on the Regularization of Obligations | 35,111 | ||
Financial income | 65 | 83 | 118 |
Financial costs | (26,961) | (13,996) | (13,889) |
Other financial results | 1,741 | (2,852) | (7,236) |
Net financial costs | (25,155) | (16,765) | (21,007) |
Monetary gain (RECPAM) | 23,844 | 14,734 | 22,987 |
(Loss) Income before taxes | (5,708) | (32,080) | 46,847 |
Income tax | (15,636) | 5,376 | (21,924) |
(Loss) Income for the year | (21,344) | (26,704) | 24,923 |
Other comprehensive income | |||
Results related to benefit plans | 200 | 164 | (15) |
Tax effect of actuarial profit on benefit plans | (70) | (49) | 5 |
Total other comprehensive results | 130 | 115 | (10) |
Comprehensive (loss) income for the year attributable to: | |||
Owners of the parent | (21,214) | (26,589) | 24,913 |
Comprehensive (loss) income for the year | $ (21,214) | $ (26,589) | $ 24,913 |
Statement of Financial Position
Statement of Financial Position - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Non-current assets | ||
Property, plant and equipment | $ 195,374 | $ 188,478 |
Interest in joint ventures | 14 | 17 |
Right-of-use asset | 425 | 344 |
Other receivables | 7 | 143 |
Financial assets at amortized cost | 361 | |
Total non-current assets | 195,820 | 189,343 |
Current assets | ||
Inventories | 3,441 | 2,823 |
Other receivables | 2,133 | 941 |
Trade receivables | 17,563 | 21,352 |
Financial assets at amortized cost | 243 | 117 |
Financial assets at fair value through profit or loss | 15,451 | 3,352 |
Cash and cash equivalents | 3,172 | 6,582 |
Total current assets | 42,003 | 35,167 |
TOTAL ASSETS | 237,823 | 224,510 |
Share capital and reserve attributable to the owners of the Company | ||
Share capital | 875 | 875 |
Adjustment to share capital | 55,382 | 55,373 |
Treasury stock | 31 | 31 |
Adjustment to treasury stock | 1,187 | 1,196 |
Additional paid-in capital | 766 | 760 |
Cost treasury stock | (4,607) | (4,607) |
Legal reserve | 3,894 | 3,894 |
Voluntary reserve | 37,709 | 64,413 |
Other comprehensive loss | (199) | (329) |
Accumulated losses | (21,344) | (26,704) |
TOTAL EQUITY | 73,694 | 94,902 |
Non-current liabilities | ||
Trade payables | 660 | 786 |
Other payables | 9,452 | 9,483 |
Borrowings | 12,465 | |
Deferred revenue | 1,687 | 2,220 |
Salaries and social security payable | 398 | 458 |
Benefit plans | 997 | 1,130 |
Deferred tax liability | 49,438 | 35,774 |
Provisions | 3,981 | 3,668 |
Total non-current liabilities | 66,613 | 65,984 |
Current liabilities | ||
Trade payables | 76,177 | 49,820 |
Other payables | 3,977 | 4,526 |
Borrowings | 10,262 | 216 |
Deferred revenue | 44 | 55 |
Salaries and social security payable | 4,515 | 5,635 |
Benefit plans | 131 | 127 |
Income tax payable | 1,254 | |
Tax liabilities | 619 | 2,705 |
Provisions | 537 | 540 |
Total current liabilities | 97,516 | 63,624 |
TOTAL LIABILITIES | 164,129 | 129,608 |
TOTAL LIABILITIES AND EQUITY | $ 237,823 | $ 224,510 |
Statement of Changes in Equity
Statement of Changes in Equity - ARS ($) $ in Millions | Issued capital [member] | Adjustment To Share Capital [Member] | Treasury shares [member] | Adjustment To Treasury Stock [Member] | Additional paid-in capital [member] | Cost Treasury Stock [Member] | Statutory reserve [member] | Voluntary Reserve [Member] | Other reserves [member] | Accumulated other comprehensive income [member] | Retained earnings [member] | Total |
Beginning balance, value at Dec. 31, 2018 | $ 883 | $ 55,806 | $ 23 | $ 763 | $ 760 | $ (3,376) | $ 483 | $ 1,159 | $ (434) | $ 41,742 | $ 97,809 | |
IfrsStatementLineItems [Line Items] | ||||||||||||
Ordinary Shareholders’ Meeting held on April 27, 2021 (Note 37) | 0 | 0 | 0 | 0 | 0 | 0 | 2,165 | 39,577 | 0 | 0 | (41,742) | 0 |
Ending balance, value at Dec. 31, 2019 | 875 | 55,373 | 31 | 1,196 | 760 | (4,607) | 2,648 | 40,736 | 0 | (444) | 24,923 | 121,491 |
IfrsStatementLineItems [Line Items] | ||||||||||||
Acquisition of own shares | (8) | (433) | 8 | 433 | 0 | (1,231) | 0 | 0 | 0 | 0 | 0 | (1,231) |
Other comprehensive results | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (10) | 0 | (10) |
Loss for the year | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24,923 | 24,923 |
Ordinary Shareholders’ Meeting held on April 27, 2021 (Note 37) | 0 | 0 | 0 | 0 | 0 | 0 | 1,246 | 23,677 | 0 | 0 | (24,923) | 0 |
Ending balance, value at Dec. 31, 2020 | 875 | 55,373 | 31 | 1,196 | 760 | (4,607) | 3,894 | 64,413 | 0 | (329) | (26,704) | 94,902 |
IfrsStatementLineItems [Line Items] | ||||||||||||
Other comprehensive results | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 115 | 0 | 115 |
Loss for the year | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (26,704) | (26,704) |
Ordinary Shareholders’ Meeting held on April 27, 2021 (Note 37) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (26,704) | 0 | 0 | 26,704 | 0 |
Other Reserve Constitution - Share-bases compensation plan (Note 25) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6 | 0 | 0 | 6 |
Payment of Other Reserve Constitution - Share-based compensation plan (Note 25) | 0 | 9 | 0 | (9) | 6 | 0 | 0 | 0 | (6) | 0 | 0 | 0 |
Ending balance, value at Dec. 31, 2021 | 875 | 55,382 | 31 | 1,187 | 766 | (4,607) | 3,894 | 37,709 | 0 | (199) | (21,344) | 73,694 |
IfrsStatementLineItems [Line Items] | ||||||||||||
Other comprehensive results | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 130 | 0 | 130 |
Loss for the year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (21,344) | $ (21,344) |
Statement of Cash Flows
Statement of Cash Flows - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
(Loss) Income for the year | $ (21,344) | $ (26,704) | $ 24,923 |
Adjustments to reconcile net (loss) profit to net cash flows from operating activities: | |||
Depreciation of property, plant and equipment | 9,101 | 9,812 | 9,499 |
Depreciation of right-of-use assets | 458 | 478 | 336 |
Loss on disposals of property, plant and equipment | 249 | 227 | 130 |
Net accrued interest | 26,859 | 13,941 | 13,741 |
Income from customer surcharges | (1,936) | (2,339) | (2,364) |
Exchange difference | 1,602 | 4,458 | 8,561 |
Income tax | 15,636 | (5,376) | 21,924 |
Allowance for the impairment of trade and other receivables, net of recovery | 1,962 | 6,311 | 2,782 |
Adjustment to present value of receivables | 150 | 195 | 157 |
Provision for contingencies, net of recovery | 2,351 | 1,030 | 2,808 |
Changes in fair value of financial assets | (3,967) | (1,492) | (578) |
Accrual of benefit plans | 755 | 720 | 538 |
Recovery of provision for credit RDSA (Note 38) | (580) | ||
Net gain from the cancelattion of Corporate Notes | (3) | (626) | (939) |
Gain from interest in joint ventures | (2) | (3) | |
Income from non-reimbursable customer contributions | (47) | (40) | (14) |
Termination of agreement on real estate asset | (247) | ||
Other financial results | 1,058 | 311 | 302 |
Impairment of property, plant and equipment | 26,248 | ||
Agreement on the Regularization of Obligations | (35,111) | ||
Monetary gain (RECPAM) | (23,844) | (14,734) | (22,987) |
Changes in operating assets and liabilities: | |||
Increase in trade receivables | (2,688) | (5,768) | (7,792) |
(Increase) Decrease in other receivables | (808) | (528) | 1,768 |
(Increase) Decrease in inventories | (847) | 50 | (1,037) |
Increase in financial assets at amortized cost | (478) | ||
Increase in deferred revenue | 270 | 1,900 | |
Increase in trade payables | 18,237 | 20,475 | 7,754 |
Increase in salaries and social security payable | 877 | 2,582 | 1,848 |
Decrease in benefit plans | (71) | (21) | (92) |
(Decrease) Increase in tax liabilities | (1,966) | (137) | 2,023 |
Increase (Decrease) in other payables | 187 | (81) | (1,473) |
Derivative financial instruments payments | (438) | ||
Decrease in provisions | (301) | (176) | (201) |
Payment of income tax payable | (3,651) | (5,390) | |
Net cash flows generated by operating activities | 21,348 | 26,149 | 20,866 |
Cash flows from investing activities | |||
Payment of property, plants and equipments | (14,725) | (14,858) | (19,245) |
Net collection of financial assets | 3,347 | ||
(Purchase) Collection net of Mutual funds and government bonds | (10,824) | (3,997) | 11,252 |
Mutuum charges granted to third parties | 5 | 53 | 296 |
Mutuum payments granted to third parties | (204) | ||
Collection of receivables from sale of subsidiaries | 15 | 21 | |
Net cash flows used in investing activities | (25,544) | (18,787) | (4,533) |
Cash flows from financing activities | |||
Payment of borrowings | (1,132) | (3,273) | |
Payment of lease liability | (526) | (1,035) | (439) |
Payment of interests from borrowings | (895) | (1,385) | (2,331) |
Cancelattion of Corporate Notes | (17) | (5,731) | (3,144) |
Acquisition of own shares | (1,231) | ||
Net cash flows used in financing activities | (1,438) | (9,283) | (10,418) |
(Decrease) Increase in cash and cash equivalents | (5,634) | (1,921) | 5,915 |
Cash and cash equivalents at the beginning of year | 6,582 | 6,572 | 66 |
Financial results in cash and cash equivalents | 2,228 | 1,386 | 288 |
Result from exposure to inflation | (4) | 545 | 303 |
(Decrease) Increase in cash and cash equivalents | (5,634) | (1,921) | 5,915 |
Cash and cash equivalents at the end of the year | 3,172 | 6,582 | 6,572 |
Supplemental cash flows information | |||
Adquisition of advances to suppliers, property, plant and equipment through increased trade payables | (1,521) | (1,846) | (1,126) |
Adquisition of advances to suppliers, right-of-use assets through increased trade payables | $ (539) | $ (371) | $ (874) |
General information
General information | 12 Months Ended |
Dec. 31, 2021 | |
General Information | |
General information | Note 1 | General information Empresa Distribuidora y Comercializadora Norte S.A. (hereinafter “ edenor sociedad anónima The corporate purpose of edenor edenor History and development of the Company edenor By means of an International Public Bidding, the PEN awarded 51 edenor On September 1, 1992, EASA took over the operations of edenor As a consequence of the share purchase and sale agreement entered into on December 28, 2020 between Pampa Energía S.A. and Empresa de Energía del Cono Sur S.A., all the Class A shares, representing 51% of the Company’s share capital and votes were transferred to the latter. That transaction was authorized by means of ENRE Resolution No. 207/2021 dated June 24, 2021. Therefore, Empresa de Energía del Cono Sur S.A. is the parent company of edenor The Company’s economic and financial situation In the last few fiscal years, the Company recorded negative working capital and operating losses. This situation is due mainly to the suspension of the electricity rate adjustment since February 2019, in spite of the constant increase of the operating costs and the investments necessary, both for the operation of the network and for maintaining the quality of the service, in an inflationary context in which the Argentine economy has been since mid-2018. 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 effect 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, in 2021 and the first months of the year 2022, the values of the electricity rate schedules suffered changes that, except for the provisions of ENRE Resolutions No. 107/2021 and 76/2022 dated April 30, 2021 and February 25, 2022 respectively (Note 2.b.), implied only the passing through of the seasonal prices not an improvement of revenues from the Company’s CPD, which are still insufficient to cover the economic and financial needs of the Distribution Company in a context of growing annual inflation, with the rate surpassing 50%. Nevertheless, and in spite of the aforementioned context with constant increases in operating costs, the investments necessary, both for the operation of the network and for maintaining and even improving the quality of the service, have been made. Although in the current year the economic activity has shown a recovery after the effect caused by the COVID-19 pandemic throughout 2020, the country’s macroeconomic situation with the increase in the rate of inflation, the widening of the gap between the official dollar exchange rate and the dollar exchange rate quoted in the informal market, and the consequences of the agreement with the International Monetary Fund make it difficult to envisage a clear-cut trend of the economy in the short term. This complex and vulnerable economic context is aggravated by the currency restrictions imposed by the BCRA pursuant to which the BCRA’s prior authorization is required for certain transactions, such as the Company’s transactions associated with the payment of imports of goods that are necessary for the provision of the service, and the payments to service the financial debt. 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. As a consequence of the described context, the Company witnessed an even greater deterioration of the economic and financial equation due to the rate freeze, the impossibility of taking legal action to enforce payment of debts for electricity consumed but not paid, and the increase in costs on the Company’s operating structure and supplies. Therefore, it became necessary to partially postpone payments to CAMMESA for energy purchased in the MEM as from the maturities taking place in March 2020 26,259 23,880 Despite the previously detailed 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 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. Due to that which has been previously described, the Board of Directors understand that a material uncertainty exists that may cast significant doubt about edenor Nevertheless, these financial statements have been prepared assuming that the Company will continue to operate as a going concern and do not include the adjustments or reclassifications that might result from the outcome of these uncertainties, inasmuch as this Distribution Company has historically been provided with transitional solutions that have made it possible to partially restore the economic and financial equation and ensure the operation of the distribution networks. |
Regulatory framework
Regulatory framework | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Framework | |
Regulatory framework | Note 2 | Regulatory framework a) Concession The term of the concession is 95 51 edenor The Company has the exclusive right to render electric power distribution and sales services within the concession area to all the customers who are not authorized to obtain their power supply from the MEM, thus being obliged to supply all the electric power that may be required in due time and in accordance with the established quality levels. In addition, the Company must allow free access to its facilities to any MEM agents whenever required, under the terms of the Concession. No specific fee must be paid by the Company under the Concession Agreement during the term of the concession. The Company is subject to the terms and conditions of its Concession Agreement and the provisions of the Regulatory Framework comprised of Federal Laws Nos. 14,772, 15,336 and 24,065, Executive Order No. 714/92 of the PEN, 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 penalties, 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 On March 5, 2021, by means of Resolution No. 53/2021, the ENRE called a Public Hearing to make known and listen to opinions on the distribution companies’ Transitional Tariff System, with such Public Hearing being held in the framework of the Tariff Structure Review (RTI) Process and prior to defining the electricity rates to be applied by the referred to concession holders. On March 30, edenor Furthermore, on March 31, 2021, by means of Resolution No. 78/2021, the ENRE approved the values of the Company’s electricity rate schedule, effective from the billing relating to the reading of meters subsequent to 12:00 AM on April 1, 2021, based on the MEM’s winter seasonal programming. It must be pointed out that such rate increase affected only GUDI customers and reflected the increase of the seasonal price passed through to rates without affecting revenues from CPD. Moreover, on April 30, 2021, by means of Resolution No. 107/2021, and in the framework of the transitional tariff system, the ENRE authorized the application of a new electricity rate schedule, effective as from May 1, 2021, with a 9% increase, implying a CPD adjustment of 20.9%. In view of the fact that such increase does not cover the increase requested by edenor recurso de alzada On May 11, 2021, by means of Resolution No. 408/2021, the SE approved the Definitive Winter Seasonal Programming for the MEM submitted by CAMMESA, relating to the May 1-October 31, 2021 period. On August 10, 2021, by means of Resolutions Nos. 262 and 265/2021, the ENRE approved an increase for large users whose power consumption is equal to or greater than 300 kW, effective from the billing relating to the reading of meters subsequent to 12:00 AM on August 1, 2021. Both resolutions were appealed to the Energy Secretariat by edenor edenor, Moreover, ENRE Resolution No. 323/2021 dated September 27, 2021, set the definitive annual control fee for 2021 that is to be paid by the MEM’s generation, transmission and distribution agents, and provided that final payment thereof would become due during the month of October 2021. Furthermore, on October 28, 2021, by means of Resolution No. 1029/2021, the SE approved the Definitive Summer Seasonal Programming for the MEM submitted by CAMMESA, relating to the November 1, 2021-April 30, 2022 period. Furthermore, the Power Reference Prices (PRP) and the Stabilized Price of Energy (SPE) set by SE Resolution No. 748/2021 dated August 3, 2021 are to be applied to the aforementioned period. The Unsubsidized PRP and SPE are set in order for distribution companies to include in the bills the related subsidy amount as a separate item. In line with the preceding paragraph, on November 19, 2021, by means of ENRE Resolution No. 487/2021, distribution companies were instructed to determine as from November 1, 2021 the related subsidy amount, which should be clearly identified as “Subsidy from the Federal Government” in the part of the bill that contains the information addressed to the user. Additionally, by means of Resolution No. 491/2021, the ENRE approved the Injection Rates for User-Generators of the concession areas of distribution companies, effective from August 1, 2021. On January 25, 2022, by means of Resolution No. 25/2022, the ENRE calls a Public Hearing to be held on February 17 to make known and listen to opinions on the following: - the treatment for the determination of Power reference prices and the Stabilized Price of Energy in the MEM; - the distribution companies’ proposals aimed at obtaining a transitional adjustment of rates, with such public hearing being held within the RTI renegotiation process and prior to defining the electricity rates to be applied by concession holders. Additionally, on February 3, 2022, by means of Resolution No. 41/2022, the ENRE approves the values of the Company’s electricity rate schedules effective from the billing relating to the reading of meters subsequent to 12:00 AM on February 1, 2022, applying to the aforementioned period the Power Reference Prices (PRP) and the Stabilized Price of Energy (SPE) set by SE Resolution No. 40/2022, not implying the same adjustments of the CPD. Finally, and within the framework of the transition tariff regime, on February 25, 2022, the ENRE, through Resolution No. 76/2022, applied the new tariff schedules effective as of March 1, 2022, which incorporate the new seasonal prices defined by Resolution SE No. 105/2022 of the Secretary of Energy, which establishes an average increase for Carriers of 20% and an increase in CPD of 8% for edenor c) Debt for the purchase of energy in the MEM The main consequence of the lack of revenue described in the preceding note has been edenor In this regard, 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 September 30, 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 No. 40/2021, the Energy Secretariat established the “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 MEM whether on account of the consumption of energy, power, interest and/or penalties, accumulated as of September 30, 2020. It also established 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. Subsequently, the Secretariat determined that it was suitable to establish as indicators for purposes of calculating the credits to be recognized, the maintenance of the electricity rate schedules throughout the year 2020, the policies implemented by each Distribution Company that is an agent of the MEM aimed at benefiting the demand, the effect of the application of the provisions of Executive Order No. 311 dated March 24, 2020, as amended and supplemented, as well as the investment commitments on energy efficiency, technology applied to the provision of the service and/or energy infrastructure works that imply an improvement in the quality of the service provided to users. Therefore, it issued Resolution No. 371/2021, which supplements Resolution No. 40/2021. Finally, on February 22, 2022, by means of Executive Order No. 88/2022, the Executive Power extended until December 31, 2022 the implementation of the “Special System for the Regularization of Payment Obligations” provided for in section 87 of Law No. 27,591. d) Supplementary resolutions 1. Suspension of issuance of Debit Notes and Supplementary Statements: on February 18, 2021, by means of ENRE Resolution No. 37/2021, the Company was instructed both to suspend, on an immediate and temporary basis, the issuance of Debit Notes and Supplementary Statements (bills) in the terms of section 5 sub-section d) captions I, II and III of the Electric Power Supply Regulations (i.e. those issued when energy values have not been recorded or have been under-measured; those issued when events suggesting metering irregularities or the appropriation of energy by the user prove to be true; or those issued when direct connections are verified), and to refrain from suspending electricity supplies due to non-payment of the amounts arising from the recovery sought on the basis of such regulation, regardless of whether the users have made the pertinent claim, until the ENRE issues the regulations. Furthermore, the Company is instructed to submit a report on the number of bills for Non-recorded or under or over-recorded consumption, issued from March 1, 2020. 2. System for the issuance of statements: on March 9, 2021, by means of ENRE Resolution No. 58/2021, distribution companies were instructed to issue the electric power public service statements (bills) solely with the amounts relating to the consumption of the billing period and to inform of the debts that have originated in or increased during the periods of the Preventive and Mandatory Social Isolation (“ASPO”) and the Preventive and Mandatory Social Distancing (“DISPO”) health measures. The Company has begun to implement the aforementioned resolution as from September 2021. Furthermore, the Company was instructed to refrain from seeking collection of the consumption accumulated from the ASPO until February 28, 2021, with no guidelines on the payment of such amounts by users having been established -by such regulatory authority- to date. 3. Reopening of Commercial Offices: by means of Notes NO-2021-84330919-APN-ENRE#MEC and NO-2021-84786820-APN-ENRE#MEC notified on September 9, 2021, the ENRE instructed the Company to reopen the commercial offices after having been closed as per the ENRE’s instruction in the framework of the Preventive and Mandatory Social Isolation (ASPO) and the Preventive and Mandatory Social Distancing (DISPO) provided for by the Federal Government. 4. Electric Service Statement – Service Disconnection and/or Cancellation of the registered user’s name: the ENRE issued the procedure for how the Company must demand payment of a debt at the time of disconnecting the service or cancelling the registered user’s name. The procedure was notified to the Company on September 13, 2021 by means of Note NO-2021-82569889-APN-ENRE#MEC. Against such procedure, the Company has filed an appeal to the ENRE, which is currently in process. e) 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. The debt for the electricity supplied in the October 2017 – July 2020 period to low-income areas and shantytowns in edenor 2,126 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. The Company may use the funds only after the ENRE has certified compliance with both the degree of completion of the works included in the referred to plan and the related financial milestones. On January 14, 2021, the Company received a first disbursement for $ 1,500, which was placed into low-risk money market funds, which accrued holding results throughout the fiscal year. As of December 31, 2021, negotiations are underway between the Company and the ENRE concerning the other disbursements stipulated in the agreement, which total an additional $1,000 relating to the second and third disbursements, plus a fourth disbursement in accordance with that which the ENRE will validate and inform about the vulnerable neighborhoods’ total consumption between August and December 2020. At the date of issuance of these financial statements, the Company has used a total of $ 1,794.1 (which at the purchasing power of the currency at December 31, 2021 amounts to $ 2,059.8), $ 294.1 of which has not yet been credited, relating to the reports on progress of the works performed. f) Agreement on the Regularization of Obligations On May 10, 2019, edenor actions against the Federal Government for damages caused by the freeze on rates since 2017 will be abandoned. On January 19, 2021, the Federal Government, the PBA and the CABA according to which ). On September 21, 2021, the National Ministry of Economy issued ME Resolution No. 590/2021 declaring the Agreement contrary to the public interest, thus paving the way for the filing of a legal action to declare it null and void. It also provided for the suspension of the administrative procedures relating to the fulfilment of the obligations arising from such Agreement. Notwithstanding the above, at the date of issuance of these financial statements, the Company has not been served notice of the filing of any legal action in order for the Agreement or the acts resulting therefrom to be declared null and void. The administrative act in question has not provided for the suspension of the legal effects of said Agreement, which is, therefore, in full force and effect. Against this resolution the Company has filed an appeal ( recurso jerárquico g) 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, 2021 and 2020, 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 sixty 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 ten 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 sixty 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. 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 The effects of the resolutions detailed in this note have been quantified by the Company and recognized as of December 31, 2021 and 2020, which does not imply the Company’s consent to the applied criteria. Finally, with the approval of the new tariff schedules established by ENRE Resolution No. 76/2022 (Note 2.b.), the amounts of the penalties valued in average kWh must be updated as of March 1, 2022 according to the prices established by the aforementioned Resolution. h) 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 ninety 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, Empresa de Energía del Cono Sur S.A. 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. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2021 | |
Basis of preparation | Note 3 | Basis of preparation The financial statements for the year ended December 31, 2021 have been prepared in accordance with IFRS issued by the IASB and IFRIC interpretations, which have been adopted and incorporated by the CNV. These financial statements were approved for issue by the Company’s Board of Directors on March 9, 2022. Comparative information The balances as of December 31, 2020, 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, 2021. 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 reporting year. In particular, the figures presented in the statement of cash flows as of December 31, 2020 and 2019 have been revised. Based on their nature, certain amounts that were previously disclosed as financial assets at fair value through profit or loss were reclassified to cash equivalents. The impact of these changes is considered non-material and is as follows: 12.31.20 Published Adjustments 12.31.20 Cash flows from investing activities (Purchase) Collection net of Mutual funds and government bonds 3,898 (7,895) (3,997) Net cash flows used in investing activities (10,892) (7,895) (18,787) Cash and cash equivalents at the beginning of year 845 5,727 6,572 Financial results in cash and cash equivalents (546) 1,932 1,386 Result from exposure to inflation 309 236 545 Increase in cash and cash equivalents 5,974 (7,895) (1,921) Cash and cash equivalents at the end of the year 6,582 - 6,582 12.31.19 Published Adjustments 12.31.19 Cash flows from investing activities (Purchase) Collection net of Mutual funds and government bonds 5,194 6,058 11,252 Net cash flows used in investing activities (10,591) 6,058 (4,533) Cash and cash equivalents at the beginning of year 88 (22) 66 Financial results in cash and cash equivalents 902 (614) 288 Result from exposure to inflation (5) 308 303 Increase in cash and cash equivalents (143) 6,058 5,915 Cash and cash equivalents at the end of the year 842 - 6,572 Restatement of financial information The financial statements as of December 31, 2021, including the figures relating to the previous year, have been stated in terms of the measuring unit current at December 31, 2021, in accordance with IAS 29 “Financial reporting in hyperinflationary economies”. 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 fiscal year commenced January 1, 2021 and ended December 31, 2021, based on that indicated in the preceding paragraph, was 50.9%. 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 set 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 accordance with 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 CPI published by the INDEC from January 2017 (base month: December 2016) with the WPI 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 WPI-, the variation recorded in the CPI of the City of Buenos Aires. Taking into consideration the above-mentioned index, in the fiscal years ended December 31, 2021, 2020, 2019, 2018 and 2017, the inflation rate amounted to 50.9 36.13 53.77 47.66 24.79 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 were otherwise set up. (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 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. |
Accounting policies
Accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting policies | Note 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, 2021 and have been adopted by the Company The Company has first applied the following standards and/or amendments a s from January 1, 2021: - 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). - Amendments to IFRS 16 “Leases”, in connection with rent concessions in the framework of the COVID-19 pandemic (amended in April 2021). 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 and December 2021. 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 as from 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 2020 and February 2021. It incorporates amendments to the classification of liabilities as current or non-current. It also incorporates the requirement that an entity disclose its material accounting policies rather than its significant accounting policies. It explains how a company can identify a material accounting policy. The amendments apply to annual periods beginning as from January 1, 2023, with early adoption permitted. 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 as from 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. - Annual improvements to IFRS – 2018-2020 Cycle: the amendments were issued in May 2020 and apply to annual periods beginning as from January 1, 2022. The Company estimates that 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. - 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 as from 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. - IAS 8 “Accounting policies, changes in accounting estimates and errors”, amended in February 2021. It replaces the definition of accounting estimates. Under the new definition, accounting estimates are monetary amounts in the financial statements that are subject to measurement uncertainty. The amendments apply to annual periods beginning as from January 1, 2023. The Company estimates that the application thereof will impact neither the Company’s results of operations nor its financial position. - IAS 12 “Income tax”, amended in May 2021. It clarifies how an entity accounts for deferred tax on transactions such as leases and decommissioning obligations. The amendments apply to annual periods beginning as from January 1, 2023. Note 4.2 | Property, plant and equipment Property, plant and equipment, except for works in progress, is valued at acquisition cost restated to reflect the effects of inflation, net of accumulated depreciation and recognized impairment losses. 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 (Loss). 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. 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.e). Revenue from operations is recognized on an accrual basis and derives mainly from electricity distribution. Such revenue includes electricity supplied, whether billed or unbilled, at the end of each year, which has been valued on the basis of applicable tariffs. The Company 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. 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 Profit or Loss. 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, along with revenue, when the Framework Agreement has been renewed for the period in which the service was provided and the Federal or the Provincial Government assumes responsibility for the payment of consumption. b. Other receivables 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. In the case of the subsidies received from the Government, they are recognized at the time of of execution of the defined work plans. 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), and other costs directly attributable to the acquisition of those assets. Cost is determined by applying the weighted average price (WAP) method. The Company has classified inventories into current and non-current depending on whether they will be used for maintenance or capital expenditures and on the period in which they are expected to be used. The non-current portion of inventories is disclosed in the “Property, plant and equipment” account. The valuation of inventories, taken as a whole, does not exceed their recoverable value at the end of each year. Note 4.8 | Financial assets Note 4.8.1 | Classification The Company classifies financial assets into the following categories: those measured at amortized cost and those subsequently measured at fair value. This classification depends on whether the financial asset is an investment in a debt or an equity instrument. In order for a financial asset to be measured at amortized cost, the two conditions described in the following paragraph must be met. All other financial assets are measured at fair value. IFRS 9 requires that all investments in equity instruments be measured at fair value. a. Financial assets at amortized cost Financial assets are measured at amortized cost if the following conditions are met: i. The objective of the Company’s business model is to hold the assets to collect the contractual cash flows; and ii. The contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and interest on principal. b. Financial assets at fair value If any of the above-detailed conditions is not met, financial assets are measured at fair value through profit or loss. All investments in equity instruments are measured at fair value. For those investments that are not held for trading, the Company may irrevocably elect at the time of their initial recognition to present the changes in 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 transaction costs that are directly attributable to the acquisition thereof, in the case that they are not measured at fair value through profit or loss. 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 Profit or Loss. 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, the economic impact of these transactions, which resulted in a loss of $ 116.7 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 (loss) Represents recognition, at the end of the year, of the actuarial gain (loss) 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, 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.g), 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.g. 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 several 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 effective 35 By means of Law No. 27,630, a change was introduced in the corporate income tax rate, applicable to fiscal years beginning from January 1, 2021. The tax will be determined according to the following scale: Accumulated net taxable income Amount to be paid $ Plus % On the amount exceeding $ From more than $ To $ $ 0 $ 5 $ 0 25 $ 0 $ 5 $ 50 $ 1.25 30 $ 5 $ 50 onwards $ 14.75 35 $ 50 The amounts of the detailed scale will be adjusted annually, beginning January 1, 2022, taking into consideration the annual variation of the Consumer Price Index (CPI) provided by the National Institute of Statistics and Census (INDEC). 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 effective rate resulting from the application of the tax scale in effect at the closing date of the financial statements and which 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, in accordance with the provisions of Law No. 27,430, the Company has applied the tax inflation adjustment set forth in Title VI of the Income Tax Law, effective for fiscal years beginning as from January 1, 2018, albeit with a limited scope of application for certain accounts. The tax inflation adjustment for the first, second and third fiscal year was applicable as from its effective date in 2018, if the CPI cumulative variation, calculated from the beginning to the end of each year, exceeded 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 CPI 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 CPI cumulative variations for the 12 months of each year had amounted to 36.13% and 53.77%, respectively, which exceeded the 15% and 30% thresholds fixed for the third and second transition years of the tax inflation adjustment, and, therefore, the Company recognized the effect of the tax inflation adjustment in the calculation of the current and deferred income tax provision in those fiscal years. As from fiscal years ended in December 2021, fourth fiscal year since the implementation of the tax inflation adjustment, the threshold for its application is that the cumulative variation of the aforementioned index for the thirty-six months prior to the closing date of the relevant fiscal year be greater than 100%. Furthermore, as from the fiscal year under analysis said adjustment is no longer applied with deferrals (over six fiscal years) but rather computed in full in the tax balance sheet for the period in which the adjustment is calculated. In accordance with the described criterion, the Company recognized the effect |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2021 | |
Financial risk management | Note 5 | Financial risk management Note 5.1 | Financial risk factors The Company’s activities and the market in which it operates expose the Company to a number 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, 2021 and 2020 are $ 102.72 84.15 As of December 31, 2021 and 2020, the Company’s balances in foreign currency are as follow Schedule of balances in foreign currency Currency Amount in foreign currency Exchange rate (1) Total Total ASSETS CURRENT ASSETS Other receivables USD 1 102.720 103 762 JPY - 0.893 - 68 Financial assets at fair value through profit or loss USD 46 102.720 4,725 - Cash and cash equivalents USD 12 102.720 1,233 2,159 TOTAL CURRENT ASSETS 6,061 2,989 TOTAL ASSETS 6,061 2,989 LIABILITIES NON-CURRENT LIABILITIES Borrowings USD - 102.720 - 12,465 TOTAL NON-CURRENT LIABILITIES - 12,465 CURRENT LIABILITIES Trade payables USD 12 102.720 1,233 1,451 Borrowings USD 100 102.720 10,262 216 Other payables USD 10 102.720 1,027 1,142 TOTAL CURRENT LIABILITIES 12,522 2,809 TOTAL LIABILITIES 12,522 15,274 (1) The exchange rates used are the BNA exchange rates in effect as of December 31, 2021 for US Dollars (USD) 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. Schedule of exposure to currency risk 12.31.21 12.31.20 Net position US dollar (6,461) (12,353) Japanese Yen - 68 Total (6,461) (12,285) 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 for the year: Schedule of decrease in results of operations 12.31.21 12.31.20 Net position US dollar (646) (1,235) Japanese Yen - 7 Decrease in the results of operations for the year (646) (1,228) 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 It 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, 2021 and 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. b. Credit risk It 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, 2021 and 2020, delinquent trade receivables totaled approximately $ 10,409.5 12,504.4 6,006.3 6,947.9 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 seven working days after the bills’ first due dates are considered delinquent trade receivables. Additionally, the amounts included in the Framework Agreement are not considered within delinquent balances of the electricity supplied to low-income areas and shantytowns. 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 operating 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 mutual 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, 2021 and 2020, the Company’s current financial assets at fair value amount to $ 15,450.8 3,352.3 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. Schedule of analysis of non-derivative financial liabilities No deadline Less than 3 months From 3 months to 1 year From 1 to 2 years From 2 to 5 years Total As of December 31, 2021 Trade payables and other liabilities 52,926 26,963 7,192 311 12,519 99,911 Borrowings - - 10,262 - - 10,262 Total 52,926 26,963 17,454 311 12,519 110,173 As of December 31, 2020 Trade payables and other liabilities 27,414 30,038 5,829 302 13,362 76,945 Borrowings - - 216 12,465 - 12,681 Total 27,414 30,038 6,045 12,767 13,362 89,626 Note 5.2 | Concentration risk factors a. Related to customers The Company’s receivables derive primarily from the sale of electricity. No single customer accounted for more than 10% of sales for the years ended December 31, 2021 and 2020. b. Related to employees who are union members As of December 31, 2021, 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 2020 were in effect until March 2021. Subsequently, in April 2021 a new agreement was signed, and revised in October 2021, which will be in effect until March 2022. At the date of issuance of the financial statements, there is no certainty concerning future collective bargaining agreements. Note 5.3 | Capital risk management The Company’s objectives when managing capital are to safeguard its ability to continue operating 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, 2021 and 2020 were as follow: Schedule of gearing ratios 12.31.21 12.31.20 Total liabilities 164,129 129,608 Less: Cash and cash equivalents and Financial assets at fair value through profit or loss (18,623) (9,934) Net debt 145,506 119,674 Total Equity 73,694 94,902 Total capital attributable to owners 219,200 214,576 Gearing ratio 66.38% 55.77% Note 5.4 | Regulatory risk factors Pursuant to caption C of Section 37 of the Concession Agreement, the Grantor of the Concession may, without prejudice to other rights to which 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 fees. The Company’s Management evaluates the development of this indicator on an annual basis. At the date of issuance of these financial statements, there are no events of non-compliance by the Company that could lead to that situation. Note 5.5 | Fair value estimate The Company classifies the measurements of financial instruments at fair value using a fair value hierarchy that reflects the relevance of the variables used to carry out such measurements. The fair value hierarchy has the following levels: Level 1 Level 2 Level 3 The table below shows the Company’s financial assets and liabilities measured at fair value as of December 31, 2021 and 2020: Schedule of financial assets and liabilities measured at fair value LEVEL 1 At December 31, 2021 Assets Financial assets at fair value through profit or loss: Government bonds 8,872 Mutual funds 6,579 Cash and cash equivalents: Mutual funds 1,349 Total assets 16,800 At December 31, 2020 Assets Financial assets at fair value through profit or loss: Government bonds 3,352 Cash and cash equivalents Mutual funds 4,110 Total assets 7,462 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. There are no financial instruments that are to be included in level 2. 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. |
Critical accounting estimates a
Critical accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2021 | |
Critical accounting estimates and judgments | Note 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 seven 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. 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 affected neither the classification nor the measurement of the Company’s financial assets. 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 year, may be impaired. As from the enactment by the PEN of the new measures, mentioned in Notes 1 and 2.b., the projections made by the Company concerning the recoverability of its property, plant and equipment have been updated. The value in use is determined on the basis of projected and discounted cash flows, using discount rates that reflect the time value of money and the specific risks of the assets under consideration. Cash flows are prepared based on estimates concerning the future performance of certain variables that are sensitive to the determination of the recoverable amount, among which the following can be noted: (i) nature, timing, and modality of the electricity rate increases; (ii) demand for electricity projections; (iii) development of the costs to be incurred; (iv) investment needs in line with the service quality levels required by the regulatory authority, and (v) macroeconomic variables, such as growth rates, inflation rates and foreign currency exchange rates, among others. The other variables have low impact on the calculation and have been estimated by the Company using the best available information. The Company has made its projections under the assumption that in the next few years it will obtain the delayed electricity rates adjustments to which it is entitled in accordance with the applicable regulations, using as a basis a Discount rate (WACC) in dollars of 13.72 However, the Company is not in a position to ensure that the future performance of the assumptions used for making its projections will be in line with that which the control authorities will define, therefore, they could differ significantly from the estimates and assessments made 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 2023. Furthermore, from February 2023 the CPD adjustments for each period would be transferred to tariffs. Probability of occurrence assigned: 30 b) Scenario No. 2: In January 2023, 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. Furthermore, from February 2023 the CPD adjustments for each period would be transferred to tariffs. Probability of occurrence assigned: 60 c) Scenario No. 3: In January 2023, the Company forecasts that 50% of the CPD increases set by the RTI and which had not been applied, will be transferred to tariffs. Furthermore, from August 2023 the CPD adjustments for each period would be transferred to tariffs. Probability of occurrence assigned: 10 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. After having carried out the analysis of recoverability of long-lived assets, as of the date of these financial statements, the Company has recorded no impairment of property, plant and equipment. As of December 31, 2020, the Company recorded an impairment of property, plant and equipment for $ 17,396 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 significant changes in the determination of the recoverable amount. 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.g). 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, 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 by the Company’s Management. 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 material effect on the Statements of Financial Position, Comprehensive Income (Loss), Changes in Equity and Cash Flows. |
Interest in joint ventures
Interest in joint ventures | 12 Months Ended |
Dec. 31, 2021 | |
Interest in joint ventures | Note 7 | Interest in joint ventures Schedule of interest in joint ventures Percentage interest held Equity attributable to the owners in capital stock and votes 12.31.21 12.31.20 SACME 50.00 14 17 |
Contingencies and lawsuits
Contingencies and lawsuits | 12 Months Ended |
Dec. 31, 2021 | |
Contingencies and lawsuits | Note 8 | Contingencies and lawsuits The Company has contingent liabilities and is a party to lawsuits that arise from the ordinary course of business. 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, 2021 total $ 4,518 We detail below the nature of the significant judicial processes in relation to which, as of December 31, 2021, the Company believes, based on the opinion of its in-house and external legal advisors, there exist grounds for them not to be deemed probable. - Federal Administration of Public Revenues (“AFIP”) – Difference in contribution rate to the Single Social Security System (“SUSS”) (executive order 814/2001) for the 12/2011- 11/2019 fiscal periods On July 6, 2021, the Company filed an appeal to the Federal Social Security Court of Appeals against AFIP Resolution No. 1740/2021 that dismissed the presentation made by edenor Additionally, on April 8, 2021, the Company was notified by the AFIP of a new resolution pursuant to which a debt had been assessed for the same concept, relating to the July 2019-November 2019 period. The resolution was challenged by the Company on September 23, 2021. This new notification follows the one received on July 12, 2018 relating to the December 2011-December 2016 period, and has been appealed to the Federal Social Security Court of Appeals. The Company’s Management believes that the application of the 17% rate is correct. In this regard, in accordance with the analysis performed, it is reasonable that “minority government-owned corporations ( sociedades anónimas con simple participación estatal sociedades anónimas The Company filed appeals to the Federal Social Security Court of Appeals, on July 6, 2021 and September 13, 2021, against the first two resolutions, relating to the 01/2017-06/2019 and 11/2011-12/2016 periods, respectively, as the administrative remedies available in relation thereto have been exhausted. Under such conditions and in connection with the aforementioned AFIP’s assessment, in the Company’s opinion, there exist sufficient and solid arguments to make its position prevail at the judicial stage. Consequently, no liabilities whatsoever have been recorded by the Company for this matter as of December 31, 2021. - National Regulatory Authority for the Distribution of Electricity, Proceeding for the Determination of a Claim” (case file No. 16/2020) On May 4, 2021, the Company was served notice of a complaint filed by the ENRE in connection with edenor At the date of issuance of these financial statements, the Company has answered the complaint, with the case being currently in process. The Company believes that it has sufficient authority under the Agreement on the Renegotiation of the Concession Agreement to support the payment made under such conditions and considers it to be in compliance with the law, to have an extinguishing effect and to have implied no damage to the users. In this regard, the Company believe that there exist sufficient and solid arguments to make its position prevail at the judicial stage; therefore, no liabilities whatsoever for this concept have been recorded as of December 31, 2021. - AFIP’s Income Tax claim, Undocumented outflows and VAT On July 2, 2020, and at the request of the Court hearing a criminal case, the AFIP initiated the sua sponte usinas mixtas In this regard, on May 17, 2021 the AFIP notified the Company of three resolutions, whereby the tax authorities resolved: i) To object to the Company’s transactions with two suppliers, and thereby to the related tax credit for the January 2017-December 2018 monthly tax periods; ii) That the Company would have deducted from its tax balance sheets for the 2017 and 2018 tax periods unfounded expenses and/or costs related to the transactions presumably carried out with the suppliers in question; iii) To object to the transactions with both suppliers and the destination of the funds earmarked for the settlement thereof; iv) To initiate investigative proceedings for the 2017 and 2018 periods in respect of: a. Income tax; b. Value Added Tax; c. Undocumented outflows. On July 6, 2021, the Company answered the notice, with respect to the income tax, undocumented outflows and value added tax concepts for the 2017 and 2018 tax periods, answering to the charges and filing a motion for nullity on the AFIP’s tax claim, stating the legal foundations and submitting the relevant documentary evidence. Additionally, in response to the Tax Authorities’ subsequent orders aimed at obtaining further evidence, the duly submitted information was supplemented with more details, in the two presentations dated September 23 and October 14, 2021. On November 17, 2021, the Company was served notice of three resolutions from the AFIP with the respective sua sponte The Company believes that the assessments issued by the AFIP are groundless; therefore, on December 10, 2021 an Appeal was filed to the Federal Tax Court against the three rulings. This appeal stays the execution of payment. In the Company’s opinion, there exist sufficient and solid arguments to make its position prevail at the judicial stage. Consequently, no liabilities whatsoever have been recorded by the Company for this matter as of December 31, 2021. |
Revenue from sales and energy p
Revenue from sales and energy purchases | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from sales and energy purchases | Note 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% Schedule of sales of electricity 12.31.21 12.31.20 12.31.19 GWh $ GWh $ GWh $ Sales of electricity Small demand segment: Residential use and public lighting (T1) 12,373 66,852 11,600 86,541 10,768 109,511 Medium demand segment: Commercial and industrial (T2) 1,447 12,150 1,341 15,909 1,549 24,104 Large demand segment (T3) 3,492 28,531 3,210 29,921 3,503 48,203 Other: (Shantytowns/Wheeling system) 4,398 5,192 4,028 4,695 4,154 2,159 Subtotal - Sales of electricity 21,710 112,725 20,179 137,066 19,974 183,977 Other services Right of use of poles 702 635 582 Connection and reconnection charges 73 81 180 Subtotal - Other services 775 716 762 Total - Revenue 113,500 137,782 184,739 12.31.21 12.31.20 12.31.19 GWh $ GWh $ GWh $ Energy purchases (1) 26,373 (69,800) 25,124 (87,408) 24,960 (117,160) (1) As of December 31, 2021, 2020 and 2019, includes technical and non-technical energy losses for 4,663 GWh, 4,945 GWh and 4,986 GWh, respectively. |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2021 | |
Expenses by nature | Note 10 | Expenses by nature The breakdown of expenses by nature is as follows: Expenses by nature at 12.31.21 Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 11,292 1,797 2,553 15,642 Pension plans 545 87 123 755 Communications expenses 260 577 837 Allowance for the impairment of trade and other receivables 1,962 1,962 Supplies consumption 2,264 212 2,476 Leases and insurance 511 511 Security service 507 43 116 666 Fees and remuneration for services 5,832 3,105 2,588 11,525 Public relations and marketing 116 116 Advertising and sponsorship 60 60 Reimbursements to personnel 1 1 Depreciation of property, plant and equipment 7,159 1,067 875 9,101 Depreciation of right-of-use asset 46 92 320 458 Directors and Supervisory Committee 35 35 ENRE penalties (1) 1,207 838 2,045 Taxes and charges 1,751 85 1,836 Other 28 28 At 12.31.21 29,112 11,495 7,447 48,054 (1) Includes recovery of technical service quality-related penalties for $ 344.3. 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, 2021 for $ 2,300.4 Expenses by nature at 12.31.20 Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 11,703 1,942 3,428 17,073 Pension plans 493 82 145 720 Communications expenses 329 670 1 1,000 Allowance for the impairment of trade and other receivables 6,311 6,311 Supplies consumption 2,834 223 3,057 Leases and insurance 1 1 475 477 Security service 462 49 52 563 Fees and remuneration for services 5,885 3,275 2,320 11,480 Public relations and marketing 29 29 Advertising and sponsorship 15 15 Reimbursements to personnel 1 1 Depreciation of property, plant and equipment 7,720 1,148 944 9,812 Depreciation of right-of-use asset 48 97 333 478 Directors and Supervisory Committee 43 43 ENRE penalties (2) 499 550 1,049 Taxes and charges 2,193 96 2,289 Other 14 14 At 12.31.20 29,974 16,362 8,075 54,411 (2) Includes recovery of technical service quality-related penalties for $ 1,057.4. 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 $ 2,785.3 Expenses by nature at 12.31.19 Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 13,076 2,149 2,745 17,970 Pension plans 392 65 81 538 Communications expenses 170 760 35 965 Allowance for the impairment of trade and other receivables 2,782 2,782 Supplies consumption 3,319 235 3,554 Leases and insurance 465 465 Security service 487 88 190 765 Fees and remuneration for services 5,253 3,323 2,800 11,376 Public relations and marketing 84 84 Advertising and sponsorship 44 44 Reimbursements to personnel 2 2 Depreciation of property, plant and equipment 7,472 1,114 913 9,499 Depreciation of right-of-use asset 33 68 235 336 Directors and Supervisory Committee 45 45 ENRE penalties 2,962 2,725 5,687 Taxes and charges 1,897 103 2,000 Other 32 32 At 12.31.19 33,164 15,099 7,881 56,144 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 $ 2,313.8 |
Other operating income (expense
Other operating income (expense) | 12 Months Ended |
Dec. 31, 2021 | |
Other operating income (expense) | Note 11 | Other operating income (expense) Schedule of other operating income (expense) Note 12.31.21 12.31.20 12.31.19 Other operating income Income from customer surcharges 1,936 2,339 2,364 Commissions on municipal taxes collection 359 338 264 Fines to suppliers 118 41 Services provided to third parties 248 363 370 Related parties 35.a 65 41 Recovery of provision for contingences 34 313 - Income from non-reimbursable customer 47 40 14 Expense recovery 31 107 336 Construction plan Framework agreement 2.e 2,060 - Other 43 70 137 Total other operating income 4,842 3,635 3,567 Other operating expense Gratifications for services (863) (77) (395) Cost for services provided to third parties (112) (145) (199) Severance paid (37) (37) (44) Debit and Credit Tax (1,068) (1,235) (1,628) Provision for contingencies 34 (2,351) (1,343) (2,808) Disposals of property, plant and equipment (249) (227) (130) Refund of fines to suppliers (195) Other (207) (140) (45) Total other operating expense (4,887) (3,399) (5,249) |
Net financial costs
Net financial costs | 12 Months Ended |
Dec. 31, 2021 | |
Net financial costs | Note 12 | Net financial costs Schedule of net finance costs Note 12.31.21 12.31.20 12.31.19 Financial income Financial interest 65 38 113 Other interest 35.a - 45 5 Total financial income 65 83 118 Financial costs Commercial interest (22,232) (9,031) (6,139) Interest and other (4,688) (4,783) (7,704) Fiscal interest (4) (165) (11) Bank fees and expenses (37) (17) (35) Total financial costs (26,961) (13,996) (13,889) Other financial results Changes in fair value of financial assets 3,967 1,492 578 Net gain from the cancelattion of 3 626 939 Exchange differences (1,602) (4,458) (8,561) Adjustment to present value of receivables (150) (195) (157) Recovery of provision for credit RDSA 38 580 Other financial costs (*) (1,057) (317) (35) Total other financial results 1,741 (2,852) (7,236) Total net financial costs (25,155) (16,765) (21,007) (*) As of December 31, 2021, includes $ 911 relating to EDELCOS S.A.’s technical assistance (Note 35). |
Basic and diluted (loss) income
Basic and diluted (loss) income per share | 12 Months Ended |
Dec. 31, 2021 | |
Basic and diluted (loss) income per share | Note 13 | Basic and diluted (loss) income per share Basic The basic (loss) income per share is calculated by dividing the loss attributable to the holders of the Company’s equity instruments by the weighted average number of common shares outstanding as of December 31, 2021, 2020 and 2019, excluding common shares purchased by the Company and held as treasury shares. The basic (loss) income per share coincides with the diluted (loss) income per share, inasmuch as the Company has issued neither preferred shares nor Corporate Notes convertible into common shares. 12.31.21 12.31.20 12.31.19 (Loss) Income for the year attributable to the owners of the Company (21,344) (26,704) 24,913 Weighted average number of common shares outstanding 875 875 875 Basic and diluted (loss) income per share – in pesos (24.39) (30.52) 28.47 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment | Note 14 | Property, plant and equipment Schedule of 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 12.31.20 Cost 5,498 47,483 120,974 52,866 9,461 42,313 485 279,080 Accumulated depreciation (1,079) (15,890) (46,771) (20,668) (6,194) (90,602) Net amount 4,419 31,593 74,203 32,198 3,267 42,313 485 188,478 Additions 51 316 229 452 1,488 12,277 1,433 16,246 Disposals (6) - (32) (210) (1) (249) Transfers 135 3,180 5,929 2,165 1,001 (10,972) (1,438) Depreciation for the year (129) (1,731) (4,197) (2,122) (922) (9,101) Net amount 12.31.21 4,470 33,358 76,132 32,483 4,833 43,618 480 195,374 At 12.31.21 Cost 5,679 50,979 126,941 55,163 11,929 43,618 480 294,789 Accumulated depreciation (1,209) (17,621) (50,809) (22,680) (7,096) (99,415) Net amount 4,470 33,358 76,132 32,483 4,833 43,618 480 195,374 · During the year ended December 31, 2021, the Company capitalized as direct own costs $ 2,300.4 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 4,913 45,261 128,855 54,901 8,216 46,427 499 289,072 Accumulated depreciation (940) (14,094) (42,379) (18,397) (5,201) (81,011) Net amount 3,973 31,167 86,476 36,504 3,015 46,427 499 208,061 Additions 62 1,918 217 442 1,092 12,842 131 16,704 Disposals (3) (78) (146) (227) Transfers 524 6,318 6,259 3,848 152 (16,956) (145) Depreciation for the year (140) (1,799) (4,556) (2,325) (992) (9,812) Impairment (6,008) (14,115) (6,125) (26,248) Net amount 12.31.20 4,419 31,593 74,203 32,198 3,267 42,313 485 188,478 At 12.31.20 Cost 5,498 47,483 120,974 52,866 9,461 42,313 485 279,080 Accumulated depreciation (1,079) (15,890) (46,771) (20,668) (6,194) (90,602) Net amount 4,419 31,593 74,203 32,198 3,267 42,313 485 188,478 · During the year ended December 31, 2020, the Company capitalized as direct own costs $ 2,785.3 · Includes $ 2,197.7 |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments | Note 15 | Financial instruments Note 15.1 | Financial instruments by category Schedule of 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, 2021 Assets Trade receivables 17,563 17,563 Other receivables 2,117 23 2,140 Cash and cash equivalents Cash and Banks 1,518 1,518 Time deposits 305 305 Mutual funds 1,349 1,349 Financial assets at fair value through profit or loss: Government bonds 8,872 8,872 Mutual funds 6,579 6,579 Financial assets at amortized cost: Government bonds 243 243 Total 21,746 16,800 23 38,569 As of December 31, 2020 Assets Trade receivables 21,352 21,352 Other receivables 592 492 1,084 Cash and cash equivalents Cash and Banks 2,472 2,472 Mutual funds 4,110 4,110 Financial assets at fair value through profit or loss: Government bonds 3,352 3,352 Financial assets at fair value Government bonds 478 478 Total 24,894 7,462 492 32,848 Financial liabilities at amortized cost Total As of December 31, 2021 Liabilities Trade payables 76,837 76,837 Other payables 13,429 13,429 Borrowings 10,262 10,262 Total 100,528 100,528 As of December 31, 2020 Liabilities Trade payables 50,606 50,606 Other payables 14,009 14,009 Borrowings 12,681 12,681 Total 77,296 77,296 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: Schedule of income, expenses, gains and losses of financial instruments Financial assets at amortized cost Financial assets at fair value through profit or loss Total As of December 31, 2021 Interest income 65 65 Exchange differences 456 492 948 Changes in fair value of financial assets 3,967 3,967 Net gain from the cancelattion of Corporate Notes 3 3 Other 580 580 Total 1,104 4,459 5,563 As of December 31, 2020 Interest income 83 83 Exchange differences 860 874 1,734 Changes in fair value of financial assets 1,492 1,492 Net gain from the cancelattion of Corporate Notes 626 626 Total 1,569 2,366 3,935 Financial liabilities at amortized cost Total As of December 31, 2021 Interest expense (26,920) (26,920) Exchange differences (2,550) (2,550) Other financial results (1,057) (1,057) Total (30,527) (30,527) As of December 31, 2020 Interest expense (13,814) (13,814) Exchange differences (6,192) (6,192) Other financial results (317) (317) Total (20,323) (20,323) 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: Schedule of credit quality of financial assets 12.31.21 12.31.20 Customers with no external credit rating: Group 1 (i) 12,828 15,748 Group 2 (ii) 1,660 1,304 Group 3 (iii) 3,075 4,300 Total trade receivables 17,563 21,352 (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. |
Right-of-use asset
Right-of-use asset | 12 Months Ended |
Dec. 31, 2021 | |
Right-of-use asset | Note 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 3 The leases recognized as right-of-use assets in accordance with IFRS 16 are disclosed below: 12.31.21 12.31.20 Right of uses asset by leases 425 344 The development of right-of-use assets is as follows: 12.31.21 12.31.20 Balance at beginning of year 344 357 Additions 539 465 Depreciation for the year (458) (478) Balance at end of the year 425 344 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | Note 17 | Inventories Schedule of inventories asset 12.31.21 12.31.20 Supplies and spare-parts 3,441 2,772 Advance to suppliers 51 Total inventories 3,441 2,823 |
Other receivables
Other receivables | 12 Months Ended |
Dec. 31, 2021 | |
Other Receivables | |
Other receivables | Note 18 | Other receivables Schedule of other receivables Note 12.31.21 12.31.20 Non-current: Credit for Real estate asset 38 3,325 Financial credit 5 21 Related parties 35.d 2 5 Allowance for the impairment of other receivables (3,208) Total non-current 7 143 Current: Credit for Real estate asset 38 31 55 Construction plan Framework agreement 2.e 294 Judicial deposits 85 116 Security deposits 64 58 Prepaid expenses 208 64 Advances to personnel 24 3 Financial credit 14 27 Advances to suppliers 9 110 Tax credits 1,364 492 Related parties 35.d 1 28 Debtors for complementary activities 63 103 Other 5 1 Allowance for the impairment of other receivables (29) (116) Total current 2,133 941 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. Schedule of roll forward of the allowance for the impairment of other receivables The roll forward of the allowance for the impairment of other receivables is as follows: 12.31.21 12.31.20 Balance at beginning of year 3,324 4,501 Increase 3 140 Decrease (1,771) Result from exposure to inflation (939) (1,192) Recovery (588) (125) Balance at end of the year 29 3,324 Schedule of aging analysis The aging analysis of these other receivables is as follows: 12.31.21 12.31.20 Without expiry date 151 202 Past due 341 98 Up to 3 months 610 125 From 3 to 6 months 355 478 From 6 to 9 months 338 17 From 9 to 12 months 338 21 More than 12 months 7 143 Total other receivables 2,140 1,084 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. |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2021 | |
Trade receivables | Note 19 | Trade receivables Schedule of trade receivables 12.31.21 12.31.20 Current: Sales of electricity – Billed 15,037 18,565 Framework Agreement (1) 14 Receivables in litigation 253 452 Allowance for the impairment of trade receivables (6,006) (6,948) Subtotal 9,284 12,083 Sales of electricity – Unbilled 7,894 8,769 PBA & CABA government credit 383 497 Fee payable for the expansion of the transportation and others 2 3 Total current 17,563 21,352 (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 . The value of the Company’s trade receivables approximates their fair value. Schedule of allowance for the impairment of trade receivables The roll forward of the allowance for the impairment of trade receivables is as follows: 12.31.21 12.31.20 Balance at beginning of the year 6,948 3,176 Increase 1,967 6,296 Decrease (211) (928) Result from exposure to inflation (2,698) (1,596) Balance at end of the year 6,006 6,948 Schedule of aging analysis of trade receivables The aging analysis of these trade receivables is as follows: 12.31.21 12.31.20 Not due 14 Past due 4,735 5,604 Up to 3 months 12,828 15,734 Total trade receivables 17,563 21,352 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. Schedule of sensitivity analysis Sensitivity analysis of the allowance for impairment of trade receivables: - 5% increase in the uncollectibility rate estimate 12.31.21 Allowance 6,306 Variation 300 - 5% decrease in the uncollectibility rate estimate 12.31.21 Allowance 5,705 Variation (301) |
Financial assets at amortized c
Financial assets at amortized cost | 12 Months Ended |
Dec. 31, 2021 | |
Financial Assets At Amortized Cost | |
Financial assets at amortized cost | Note 20 | Financial assets at amortized cost Schedule of financial assets at amortized cost 12.31.21 12.31.20 Non-current Government bonds 361 Current Government bonds 243 117 |
Financial assets at fair value
Financial assets at fair value through profit or loss | 12 Months Ended |
Dec. 31, 2021 | |
Financial Assets At Fair Value Through Profit Or Loss | |
Financial assets at fair value through profit or loss | Note 21 | Financial assets at fair value through profit or loss Schedule of financial assets at fair value through profit or loss 12.31.21 12.31.20 Government bonds 8,872 3,352 Mutual funds 6,579 Total Financial assets at fair value through profit or loss 15,451 3,352 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents | Note 22 | Cash and cash equivalents Schedule of cash and cash equivalents 12.31.21 12.31.20 Cash and banks 1,518 2,472 Time deposits 305 Mutual funds 1,349 4,110 Total cash and cash equivalents 3,172 6,582 |
Share capital and additional pa
Share capital and additional paid-in capital | 12 Months Ended |
Dec. 31, 2021 | |
Share capital and additional paid-in capital | Note 23 | Share capital and additional paid-in capital Schedule of share capital and additional paid-in capital Share capital Additional paid-in capital Total Balance at December 31, 2019 and 2020 57,475 760 58,235 Payment of Other reserve constitution - Share-bases compensation plan 6 6 Balance at December 31, 2021 57,475 766 58,241 As of December 31, 2021, the Company’s share capital amounts to 906,455,100 462,292,111 par value of one peso each and the right to one vote per share 442,210,385 par value of one peso each and the right to one vote per share 1,952,604 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. |
Allocation of profits
Allocation of profits | 12 Months Ended |
Dec. 31, 2021 | |
Allocation Of Profits | |
Allocation of profits | Note 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, 2021, 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. |
The Company_s Share-based Compe
The Company’s Share-based Compensation Plan | 12 Months Ended |
Dec. 31, 2021 | |
The Company’s Share-based Compensation Plan | Note 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. On April 15, 2021, 246,451 The fair value of the previously referred to shares at the award date, amounted to $ 162.3 |
Trade payables
Trade payables | 12 Months Ended |
Dec. 31, 2021 | |
Trade payables | Note 26 | Trade payables Schedule of trade payables 12.31.21 12.31.20 Non-current Customer guarantees 367 414 Customer contributions 293 372 Total non-current 660 786 Current Payables for purchase of electricity - CAMMESA 57,618 32,265 Provision for unbilled electricity purchases - CAMMESA 9,480 10,025 Suppliers 8,542 6,880 Advance to customer 468 602 Customer contributions 32 48 Discounts to customers 37 Total current 76,177 49,820 The fair values of non-current customer contributions as of December 31, 2021 and 2020 amount to $ 46.4 64.6 The value of the rest of the financial liabilities included in the Company’s trade payables approximates their fair value. |
Other payables
Other payables | 12 Months Ended |
Dec. 31, 2021 | |
Other Payables | |
Other payables | Note 27 | Other payables Schedule of other payables Note 12.31.21 12.31.20 Non-current ENRE penalties and discounts 9,373 9,391 Financial Lease Liability (1) 79 92 Total Non-current 9,452 9,483 Current ENRE penalties and discounts 3,554 4,265 Related parties 35.d 138 22 Advances for works to be performed 13 20 Financial Lease Liability (1) 268 217 Other 4 2 Total Current 3,977 4,526 The value of the Company’s other financial payables approximates their fair value. (1) The development of the finance lease liability is as follows: Schedule of financial lease liability 12.31.21 12.31.20 Balance at beginning of year 309 301 Increase 451 258 Payments (526) (382) Exchange difference 89 96 Interest 128 86 Result from exposure to inlfation (104) (50) Balance at end of the year 347 309 Schedule of future minimum lease payments As of December 31, 2021, future minimum payments with respect to finance leases are those detailed below: 12.31.21 12.31.20 2021 297 2022 380 74 2023 116 27 2024 6 Total future minimum lease payments 502 398 Schedule of future minimum collections with respect to operating assignments The Company has entered into contracts with certain cable television companies granting them the right to use the network poles. As of December 31, 2021 and 2020, future minimum collections with respect to operating assignments of use are those detailed below: 12.31.21 12.31.20 2021 715 2022 727 712 2023 700 705 2024 2 Total future minimum lease collections 1,429 2,132 |
Deferred revenue
Deferred revenue | 12 Months Ended |
Dec. 31, 2021 | |
Deferred revenue | Note 28 | Deferred revenue Schedule of deferred revenue 12.31.21 12.31.20 Non-current Nonrefundable customer contributions 1,687 2,220 12.31.21 12.31.20 Current Nonrefundable customer contributions 44 55 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings | Note 29 | Borrowings Schedule of borrowings 12.31.21 12.31.20 Non-current Corporate notes (1) 12,465 Current Corporate notes (1) 10,067 Interest from corporate notes 195 216 Total current 10,262 216 (1) Net of debt issuance, repurchase and redemption expenses. The fair values of the Company’s non-current borrowings as of December 31, 2021 and 2020 amount approximately to $ 8,982.5 10,228.5 Schedule of borrowings currency denominations The Company’s borrowings are denominated in the following currencies: 12.31.21 12.31.20 US dollars 10,262 12,681 Schedule of maturities of the company's borrowings and exposure to interest rate The maturities of the Company’s borrowings and their exposure to interest rates are as follow: 12.31.21 12.31.20 Fixed rate Less than 1 year 10,262 216 From 1 to 2 years 12,465 Total fixed rate 10,262 12,681 Schedule of roll forward of the company's borrowings The roll forward of the Company’s borrowings during the year was as follows: 12.31.21 12.31.20 Balance at beginning of the year 12,681 20,246 Payment of borrowings' interests (895) (1,385) Paid from repurchase of Corporate Notes (17) (5,731) Payment of borrowings (1,132) Gain from repurchase of Corporate Notes (3) (626) Exchange diference and interest accrued 2,769 6,113 Result from exposure to inlfation (4,273) (4,804) Balance at the end of year 10,262 12,681 Corporate Notes programs Schedule of debt issued The Company has 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 12.31.20 Debt repurchase Debt structure at 12.31.21 At 12.31.21 Fixed Rate Par Note 9 9.75 2022 98 98 10,067 Total 98 - 98 10,067 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 12,465 Total 137 (39) 98 12,465 The main covenants are those detailed below: 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. Furthermore, on January 28, 2021, the Company paid Class 9 Corporate Notes for a total of USD 224,000 23 98.1 million Additionally, on July 16, 2021, within the framework of the change of control of the Company (Note 39), and as provided for in article 10.3 of the class 9 Corporate Notes prospectus, which provides that each holder of these instruments will be entitled to require that the Company repurchase all or any part thereof by submitting an Offer due to Change of Control, the Company’s Board of Directors approved and informed the markets of the launching of the consent solicitation for consents of the holders of Corporate Notes due 2022. In this regard, on July 30, 2021, the Company, given the majority support of the holders, obtained approval of the consent solicitation issued on July 16. Thus, edenor |
Salaries and social security ta
Salaries and social security taxes payable | 12 Months Ended |
Dec. 31, 2021 | |
Salaries And Social Security Taxes Payable | |
Salaries and social security taxes payable | Note 30 | Salaries and social security taxes payable Schedule of salaries and social security taxes payable a. Salaries and social security taxes payable 12.31.21 12.31.20 Non-current Early retirements payable 37 Seniority-based bonus 398 421 Total non-current 398 458 Current Salaries payable and provisions 4,159 5,181 Social security payable 332 415 Early retirements payable 24 39 Total current 4,515 5,635 The value of the Company’s salaries and social security taxes payable approximates their fair value. Schedule of salaries and social security taxes charged to profit or loss b. Salaries and social security taxes charged to profit or loss 12.31.21 12.31.20 12.31.19 Salaries 11,262 12,293 12,939 Social security taxes 4,380 4,780 5,031 Total salaries and social security taxes 15,642 17,073 17,970 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, 2021 and 2020, amount to $ 23.8 80.1 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, 2021 and 2020, the related liabilities amount to $ 404.5 421.1 As of December 31, 2021 and 2020, the number of employees amounts to 4,668 4,776 |
Benefit plans
Benefit plans | 12 Months Ended |
Dec. 31, 2021 | |
Benefit plans | Note 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. Schedule of benefit plans 12.31.21 12.31.20 Non-current 997 1,130 Current 131 127 Total Benefit plans 1,128 1,257 The breakdown of the benefit plan obligations as of December 31, 2021 and 2020 is as follows: 12.31.21 12.31.20 Benefit payment obligations at beginning of year 1,257 1,181 Current service cost 66 243 Interest cost 689 477 Actuarial losses (200) (164) Result from exposure to inflation for the year (613) (459) Benefits paid to participating employees (71) (21) Benefit payment obligations at end of year 1,128 1,257 As of December 31, 2021 and 2020, the Company does not have any assets related to post-retirement benefit plans. The breakdown of the charge recognized in the Statement of Comprehensive Income (Loss) is as follows: Schedule of detail of the charge recognized in the statement of comprehensive loss income 12.31.21 12.31.20 12.31.19 Cost 66 243 226 Interest 689 477 312 Actuarial results - Other comprehensive results (200) (164) 15 Benefit plan charge 555 556 553 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: Schedule of actuarial assumptions 12.31.21 12.31.20 12.31.19 Discount rate 5 5 5 Salary increase 1 1 1 Inflation 57 50 31 Sensitivity analysis: 12.31.21 Discount Rate: 4% Obligation 1,234 Variation 106 9 Discount Rate: 6% Obligation 1,038 Variation (90) ( 8 Salary Increase : 0% Obligation 1,034 Variation (94) ( 8 Salary Increase: 2% Obligation 1,237 Variation 109 9 The expected payments of benefits are as follow: In 2022 In 2023 In 2024 In 2025 In 2026 Between 2027 to 2031 At December 31, 2021 Benefit payment obligations 131 23 25 26 5 22 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, 2021. These benefits do not apply to key management personnel. |
Income tax and deferred tax
Income tax and deferred tax | 12 Months Ended |
Dec. 31, 2021 | |
Income tax and deferred tax | Note 32 | Income tax and deferred tax The breakdown of deferred tax assets and liabilities is as follows: Schedule of analysis of deferred tax assets and liabilities 12.31.20 Result from exposure to inflation Charged to Profit and loss Charged to Other comprenhen- sive income 12.31.21 Deferred tax assets Tax loss carryforward 374 (126) (248) - - Trade receivables and other receivables 2,038 (687) 882 - 2,233 Trade payables and other payables 1,022 (345) 524 - 1,201 Salaries and social security taxes payable 385 (130) 277 - 532 Benefit plans 116 (39) 11 (70) 18 Tax liabilities 29 (10) 6 - 25 Provisions 1,234 (416) 798 - 1,616 Deferred tax asset 5,198 (1,753) 2,250 (70) 5,625 Deferred tax liabilities: Property, plant and equipment (35,283) 11,899 (27,600) - (50,984) Financial assets at fair value through profit or loss (450) 152 (84) - (382) Borrowings (3) 1 1 - (1) Tax inflation adjustment (5,236) 1,766 (226) - (3,696) Deferred tax liability (40,972) 13,818 (27,909) - (55,063) Net deferred tax liability (35,774) 12,065 (25,659) (70) (49,438) 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 - - 374 - 374 Trade receivables and other receivables 1,137 (302) 1,203 - 2,038 Trade payables and other payables 1,236 (327) 113 - 1,022 Salaries and social security taxes payable 232 (60) 213 - 385 Benefit plans 222 (59) 2 (49) 116 Tax liabilities 38 (11) 2 - 29 Provisions 1,382 (367) 219 - 1,234 Deferred tax asset 4,247 (1,126) 2,126 (49) 5,198 Deferred tax liabilities: Property, plant and equipment (40,347) 10,710 (5,646) - (35,283) Financial assets at fair value through profit or loss (427) 113 (136) - (450) Borrowings (8) 3 2 - (3) Tax inflation adjustment (4,658) 1,237 (1,815) - (5,236) Deferred tax liability (45,440) 12,063 (7,595) - (40,972) Net deferred tax liability (41,193) 10,937 (5,469) (49) (35,774) 12.31.21 12.31.20 Deferred tax assets: To be recover in more than 12 months 5,625 5,198 Deferred tax asset 5,625 5,198 Deferred tax liabilities: To be recover in more than 12 months (55,063) (40,972) Deferred tax liability (55,063) (40,972) Net deferred tax liability (49,438) (35,774) The breakdown 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 breakdown of the income tax expense is as follows: Schedule of income tax expense 12.31.21 12.31.20 12.31.19 Deferred tax (6,345) 4,184 (17,052) Change in the income tax rate (7,473) 1,284 1,273 Current tax (2,042) - (5,964) Difference between provision and tax return 224 (92) (181) Income tax expense (15,636) 5,376 (21,924) 12.31.21 12.31.20 12.31.19 (Loss) Income for the year before taxes (5,708) (32,080) 46,847 Applicable tax rate 35 30 30 Result for the year at the tax rate 1,998 9,624 (14,054) Loss on net monetary position (3,359) (2,020) (3,943) Adjustment effect on tax inflation (6,972) (3,357) (5,761) Non-taxable income (54) (63) 742 Difference between provision and tax return 224 (92) (181) Change in the income tax rate (7,473) 1,284 1,273 Income tax expense (15,636) 5,376 (21,924) The income tax payable, net of withholdings is detailed below. Schedule of income tax provisions 12.31.21 12.31.20 Current Provision of income tax payable 2,042 Tax withholdings (788) Total current 1,254 |
Tax liabilities
Tax liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Tax Liabilities | |
Tax liabilities | Note 33 | Tax liabilities Schedule of tax liabilities 12.31.21 12.31.20 Non-current Current Provincial, municipal and federal contributions and taxes 131 692 VAT payable 1,389 Tax withholdings 228 258 SUSS withholdings 27 16 Municipal taxes 233 350 Total current 619 2,705 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2021 | |
Provisions | Note 34 | Provisions Schedule of provisions Non-current liabilities Current liabilities Contingencies At 12.31.20 3,668 540 Increases 1,832 519 Decreases (301) Result from exposure to inflation for the year (1,519) (221) At 12.31.21 3,981 537 At 12.31.19 4,237 439 Increases 1,097 246 Decreases (158) (18) Recovery (313) Result from exposure to inflation for the year (1,195) (127) At 12.31.20 3,668 540 |
Related-party transactions
Related-party transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related-party transactions | Note 35 | Related-party transactions The following transactions were carried out with related parties: a. Income Schedule of related party income Company Concept 12.31.21 12.31.20 12.31.19 PESA Impact study - 5 - SACDE Reimbursement expenses 60 41 FIDUS SGR SGR contribution revenue 45 5 - 110 46 b. Expense Schedule of related party expenses Company Concept 12.31.21 12.31.20 12.31.19 EDELCOS S.A. Technical advisory services on financial matters (911) - PESA Technical advisory services on financial matters (311) (279) SACME Operation and oversight of the electric power transmission system (317) (154) (170) OSV Hiring life insurance for staff (41) (41) SB&WM Abogados Legal fees (20) FIDUS Legal fees (6) (2) ABELOVICH, POLANO & ASOC. Legal fees (2) (3) (1,228) (534) (495) c. Key Management personnel’s remuneration Schedule of key management personnel's remuneration 12.31.21 12.31.20 12.31.19 Salaries 1,518 486 605 The balances with related parties are as follow: d. Receivables and payables Schedule of related party receivables and payables 12.31.21 12.31.20 Other receivables - Non current SACME 2 5 Other receivables - Current FIDUS SGR 26 SACME 1 2 1 28 Other payables Andina PLC (119) SACME (19) (22) (138) (22) (*) Balances held and transactions carried out as of December 31, 2020 and 2019, respectively, with the companies that comprised the Company’s former controlling economic group (Pampa Energía S.A.) are disclosed for comparative purposes. 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 2021 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 CABA and the Greater Buenos Aires distribution areas 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 2021 amounted to $ 317 Agreement with EDELCOS S.A. The agreement comprises the provision to the Company of technical advisory services especially on financial topics. It expires in December 2026, but may be extended if so agreed by the parties. In consideration of these services, the Company pays EDELCOS S.A. either an annual amount of $ 1,766 60 As of December 31, 2021, the Company recorded charges for EDELCOS S.A. technical advisory services for a total of $ 911 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 Furthermore, on December 21, 2020, the contribution made as protector partner was refunded to the Company. |
Keeping of documentation
Keeping of documentation | 12 Months Ended |
Dec. 31, 2021 | |
Keeping Of Documentation | |
Keeping of documentation | Note 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 Part 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. |
Shareholders_ Meetings
Shareholders’ Meetings | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders Meetings | |
Shareholders’ Meetings | Note 37 | Shareholders’ Meetings The Company Ordinary Shareholders’ Meeting held on April 27, 2021 resolved, among other issues, the following: - To approve edenor’s - To allocate the $ 17,698 loss for the year ended December 31, 2020 (at the purchasing power of the currency at December 31, 2021 amounts to $ 26,704) to the partial absorption of the Discretionary reserve, 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; Furthermore, on August 10, 2021 an Ordinary Shareholders’ Meeting was held, at which the following issues, among others, were dealt with: - Consideration of the actions taken by the Directors and Supervisory Committee members that resigned their positions as from June 30, 2021, and their respective remunerations; - Consideration of the appointment of Directors and Supervisory Committee members as from June 30, 2021. Finally, and in relation to what was discussed by the Ordinary and Extraordinary Shareholders’ Meeting held on April 28, 2020, in which it was decided to approve the modification of Articles No. 13, 19, 23, 25 and 33 and an ordered text of the Bylaws, ad-referendum of its approval by the ENRE, dated February 23, 2022 through Resolution No. 62/2022, the Regulatory Entity gave its approval. |
Termination of agreement on rea
Termination of agreement on real estate asset | 12 Months Ended |
Dec. 31, 2021 | |
Termination Of Agreement On Real Estate Asset | |
Termination of agreement on real estate asset | Note 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 720,000 280,000 - 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 R eorganization proceedings , the and/or any other action or arrangement deriving from the claim to collect the 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. As of December 31, 2021, a gain has been recognized on recovery of allowance for $ 580 edenor |
Change of control
Change of control | 12 Months Ended |
Dec. 31, 2021 | |
Change Of Control | |
Change of control | Note 39 | Change of control On December 28, 2020, Pampa Energía S.A., the holder of 100 edenor 51 edenor By virtue of such agreement, Pampa Energía S.A. 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. On June 23, 2021, by means of Resolution No. 207/2021, the ENRE authorized Pampa Energía S.A. to transfer all the Class A shares, representing 51 The transfer of all the Class A shares, representing 51 Within this context, after the aforementioned transfer, the Class A Directors tendered resignation; therefore, to fill the vacancies, the Company’s Supervisory Committee appointed Messrs. Neil A. Bleasdale (Chairman), Esteban Macek (Vice-Chairman); Nicolás Mallo Huergo, Eduardo Vila, Edgardo Volosin, Federico Zin and Mariano C. Lucero as Directors and Messrs. Hugo Quevedo, Mariano C. Libarona, Daniel O. Seppacuercia, Diego Hernán Pino, Sebastián Álvarez and María Teresa Grieco as Alternate Directors. Finally, as required by the regulations in effect and within the time periods set forth therein, Empresa de Energía del Cono Sur S.A. will announce the launching of a mandatory Public Tender Offer to all the holders of Class B and Class C common shares issued by the Company, including the holders of ADS in respect of the underlying Class B common shares, in accordance with the provisions of General Resolution No. 779/2018 of the National Securities Commission. |
Events after the reporting year
Events after the reporting year | 12 Months Ended |
Dec. 31, 2021 | |
Events after the reporting year | Note 40 | Events after the reporting year The following are the events that occurred subsequent to December 31, 2021: - Public Hearing – ENRE Resolution No. 25/2022, see Note 2.b; - Seasonal prices - ENRE Resolution No. 41/2022, see Note 2.b; - Special system for the settlement of debts – Executive Order No. 88/2022, see Note 2.c. - Amendment to the By-laws – ENRE Resolution No. 62/2022, see Note 37. - Transition tariff – ENRE Resolution No. 76/2022, see Note 2 paragraphs b and g. |
Accounting policies (Policies)
Accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
New accounting standards, amendments and interpretations issued by the IASB | Note 4.1 | New accounting standards, amendments and interpretations issued by the IASB that are effective as of December 31, 2021 and have been adopted by the Company The Company has first applied the following standards and/or amendments a s from January 1, 2021: - 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). - Amendments to IFRS 16 “Leases”, in connection with rent concessions in the framework of the COVID-19 pandemic (amended in April 2021). 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 and December 2021. 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 as from 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 2020 and February 2021. It incorporates amendments to the classification of liabilities as current or non-current. It also incorporates the requirement that an entity disclose its material accounting policies rather than its significant accounting policies. It explains how a company can identify a material accounting policy. The amendments apply to annual periods beginning as from January 1, 2023, with early adoption permitted. 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 as from 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. - Annual improvements to IFRS – 2018-2020 Cycle: the amendments were issued in May 2020 and apply to annual periods beginning as from January 1, 2022. The Company estimates that 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. - 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 as from 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. - IAS 8 “Accounting policies, changes in accounting estimates and errors”, amended in February 2021. It replaces the definition of accounting estimates. Under the new definition, accounting estimates are monetary amounts in the financial statements that are subject to measurement uncertainty. The amendments apply to annual periods beginning as from January 1, 2023. The Company estimates that the application thereof will impact neither the Company’s results of operations nor its financial position. - IAS 12 “Income tax”, amended in May 2021. It clarifies how an entity accounts for deferred tax on transactions such as leases and decommissioning obligations. The amendments apply to annual periods beginning as from January 1, 2023. |
Property, plant and equipment | Note 4.2 | Property, plant and equipment Property, plant and equipment, except for works in progress, is valued at acquisition cost restated to reflect the effects of inflation, net of accumulated depreciation and recognized impairment losses. 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 (Loss). 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. 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 ventures | 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. |
Revenue recognition | 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.e). Revenue from operations is recognized on an accrual basis and derives mainly from electricity distribution. Such revenue includes electricity supplied, whether billed or unbilled, at the end of each year, which has been valued on the basis of applicable tariffs. The Company 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. |
Effects of the changes in foreign currency exchange rates | 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 Profit or Loss. 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 receivables | 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, along with revenue, when the Framework Agreement has been renewed for the period in which the service was provided and the Federal or the Provincial Government assumes responsibility for the payment of consumption. b. Other receivables 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. In the case of the subsidies received from the Government, they are recognized at the time of of execution of the defined work plans. |
Inventories | 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), 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 assets | Note 4.8 | Financial assets Note 4.8.1 | Classification The Company classifies financial assets into the following categories: those measured at amortized cost and those subsequently measured at fair value. This classification depends on whether the financial asset is an investment in a debt or an equity instrument. In order for a financial asset to be measured at amortized cost, the two conditions described in the following paragraph must be met. All other financial assets are measured at fair value. IFRS 9 requires that all investments in equity instruments be measured at fair value. a. Financial assets at amortized cost Financial assets are measured at amortized cost if the following conditions are met: i. The objective of the Company’s business model is to hold the assets to collect the contractual cash flows; and ii. The contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and interest on principal. b. Financial assets at fair value If any of the above-detailed conditions is not met, financial assets are measured at fair value through profit or loss. All investments in equity instruments are measured at fair value. For those investments that are not held for trading, the Company may irrevocably elect at the time of their initial recognition to present the changes in 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 transaction costs that are directly attributable to the acquisition thereof, in the case that they are not measured at fair value through profit or loss. 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 Profit or Loss. 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 instruments | 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, the economic impact of these transactions, which resulted in a loss of $ 116.7 |
Cash and cash equivalents | 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. |
Equity | 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 (loss) Represents recognition, at the end of the year, of the actuarial gain (loss) 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 payables | 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, 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.g), 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.g. |
Borrowings | 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. |
Deferred revenue | 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. |
Employee benefits | Note 4.15 | Employee benefits · Benefit plans The Company operates several 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 tax | 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 effective 35 By means of Law No. 27,630, a change was introduced in the corporate income tax rate, applicable to fiscal years beginning from January 1, 2021. The tax will be determined according to the following scale: Accumulated net taxable income Amount to be paid $ Plus % On the amount exceeding $ From more than $ To $ $ 0 $ 5 $ 0 25 $ 0 $ 5 $ 50 $ 1.25 30 $ 5 $ 50 onwards $ 14.75 35 $ 50 The amounts of the detailed scale will be adjusted annually, beginning January 1, 2022, taking into consideration the annual variation of the Consumer Price Index (CPI) provided by the National Institute of Statistics and Census (INDEC). 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 effective rate resulting from the application of the tax scale in effect at the closing date of the financial statements and which 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, in accordance with the provisions of Law No. 27,430, the Company has applied the tax inflation adjustment set forth in Title VI of the Income Tax Law, effective for fiscal years beginning as from January 1, 2018, albeit with a limited scope of application for certain accounts. The tax inflation adjustment for the first, second and third fiscal year was applicable as from its effective date in 2018, if the CPI cumulative variation, calculated from the beginning to the end of each year, exceeded 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 CPI 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 CPI cumulative variations for the 12 months of each year had amounted to 36.13% and 53.77%, respectively, which exceeded the 15% and 30% thresholds fixed for the third and second transition years of the tax inflation adjustment, and, therefore, the Company recognized the effect of the tax inflation adjustment in the calculation of the current and deferred income tax provision in those fiscal years. As from fiscal years ended in December 2021, fourth fiscal year since the implementation of the tax inflation adjustment, the threshold for its application is that the cumulative variation of the aforementioned index for the thirty-six months prior to the closing date of the relevant fiscal year be greater than 100%. Furthermore, as from the fiscal year under analysis said adjustment is no longer applied with deferrals (over six fiscal years) but rather computed in full in the tax balance sheet for the period in which the adjustment is calculated. In accordance with the described criterion, the Company recognized the effect of the tax inflation adjustment in the calculation of the current income tax provision for fiscal year 2021. |
Leases | Note 4.17 | Leases 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 contingencies | Note 4.18 | Provisions and contingencies Provisions have been recognized in those cases in which the Company is faced with a present obligation, whether legal or constructive, that has arisen as a result of a past event, whose settlement is expected to result in an outflow of resources, and the amount thereof can be estimated reliably. The amount recognized as provisions is the best estimate of the expenditure required to settle the present obligation at the end of the reporting year, taking into account the corresponding risks and uncertainties. When a provision is measured using the estimated cash flow to settle the present obligation, the carrying amount represents the present value of such cash flow. This present value is obtained by applying a pre-tax discount rate that reflects market conditions, the time value of money and the specific risks of the obligation. The provisions included in liabilities have been recorded to face contingent situations that could result in future payment 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 parties | Note 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. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The impact of these changes is considered non-material and is as follows: | In particular, the figures presented in the statement of cash flows as of December 31, 2020 and 2019 have been revised. Based on their nature, certain amounts that were previously disclosed as financial assets at fair value through profit or loss were reclassified to cash equivalents. The impact of these changes is considered non-material and is as follows: 12.31.20 Published Adjustments 12.31.20 Cash flows from investing activities (Purchase) Collection net of Mutual funds and government bonds 3,898 (7,895) (3,997) Net cash flows used in investing activities (10,892) (7,895) (18,787) Cash and cash equivalents at the beginning of year 845 5,727 6,572 Financial results in cash and cash equivalents (546) 1,932 1,386 Result from exposure to inflation 309 236 545 Increase in cash and cash equivalents 5,974 (7,895) (1,921) Cash and cash equivalents at the end of the year 6,582 - 6,582 12.31.19 Published Adjustments 12.31.19 Cash flows from investing activities (Purchase) Collection net of Mutual funds and government bonds 5,194 6,058 11,252 Net cash flows used in investing activities (10,591) 6,058 (4,533) Cash and cash equivalents at the beginning of year 88 (22) 66 Financial results in cash and cash equivalents 902 (614) 288 Result from exposure to inflation (5) 308 303 Increase in cash and cash equivalents (143) 6,058 5,915 Cash and cash equivalents at the end of the year 842 - 6,572 |
Accounting policies (Tables)
Accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The tax will be determined according to the following scale: | By means of Law No. 27,630, a change was introduced in the corporate income tax rate, applicable to fiscal years beginning from January 1, 2021. The tax will be determined according to the following scale: Accumulated net taxable income Amount to be paid $ Plus % On the amount exceeding $ From more than $ To $ $ 0 $ 5 $ 0 25 $ 0 $ 5 $ 50 $ 1.25 30 $ 5 $ 50 onwards $ 14.75 35 $ 50 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of balances in foreign currency | As of December 31, 2021 and 2020, the Company’s balances in foreign currency are as follow Schedule of balances in foreign currency Currency Amount in foreign currency Exchange rate (1) Total Total ASSETS CURRENT ASSETS Other receivables USD 1 102.720 103 762 JPY - 0.893 - 68 Financial assets at fair value through profit or loss USD 46 102.720 4,725 - Cash and cash equivalents USD 12 102.720 1,233 2,159 TOTAL CURRENT ASSETS 6,061 2,989 TOTAL ASSETS 6,061 2,989 LIABILITIES NON-CURRENT LIABILITIES Borrowings USD - 102.720 - 12,465 TOTAL NON-CURRENT LIABILITIES - 12,465 CURRENT LIABILITIES Trade payables USD 12 102.720 1,233 1,451 Borrowings USD 100 102.720 10,262 216 Other payables USD 10 102.720 1,027 1,142 TOTAL CURRENT LIABILITIES 12,522 2,809 TOTAL LIABILITIES 12,522 15,274 (1) The exchange rates used are the BNA exchange rates in effect as of December 31, 2021 for US Dollars (USD) and Japanese Yens (JPY). |
Schedule of exposure to currency risk | 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. Schedule of exposure to currency risk 12.31.21 12.31.20 Net position US dollar (6,461) (12,353) Japanese Yen - 68 Total (6,461) (12,285) |
Schedule of decrease in results of operations | 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 for the year: Schedule of decrease in results of operations 12.31.21 12.31.20 Net position US dollar (646) (1,235) Japanese Yen - 7 Decrease in the results of operations for the year (646) (1,228) |
Schedule of analysis of non-derivative financial liabilities | 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. Schedule of analysis of non-derivative financial liabilities No deadline Less than 3 months From 3 months to 1 year From 1 to 2 years From 2 to 5 years Total As of December 31, 2021 Trade payables and other liabilities 52,926 26,963 7,192 311 12,519 99,911 Borrowings - - 10,262 - - 10,262 Total 52,926 26,963 17,454 311 12,519 110,173 As of December 31, 2020 Trade payables and other liabilities 27,414 30,038 5,829 302 13,362 76,945 Borrowings - - 216 12,465 - 12,681 Total 27,414 30,038 6,045 12,767 13,362 89,626 |
Schedule of gearing ratios | The gearing ratios at December 31, 2021 and 2020 were as follow: Schedule of gearing ratios 12.31.21 12.31.20 Total liabilities 164,129 129,608 Less: Cash and cash equivalents and Financial assets at fair value through profit or loss (18,623) (9,934) Net debt 145,506 119,674 Total Equity 73,694 94,902 Total capital attributable to owners 219,200 214,576 Gearing ratio 66.38% 55.77% |
Schedule of financial assets and liabilities measured at fair value | The table below shows the Company’s financial assets and liabilities measured at fair value as of December 31, 2021 and 2020: Schedule of financial assets and liabilities measured at fair value LEVEL 1 At December 31, 2021 Assets Financial assets at fair value through profit or loss: Government bonds 8,872 Mutual funds 6,579 Cash and cash equivalents: Mutual funds 1,349 Total assets 16,800 At December 31, 2020 Assets Financial assets at fair value through profit or loss: Government bonds 3,352 Cash and cash equivalents Mutual funds 4,110 Total assets 7,462 |
Interest in joint ventures (Tab
Interest in joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of interest in joint ventures | Schedule of interest in joint ventures Percentage interest held Equity attributable to the owners in capital stock and votes 12.31.21 12.31.20 SACME 50.00 14 17 |
Revenue from sales and energy_2
Revenue from sales and energy purchases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of sales of electricity | Schedule of sales of electricity 12.31.21 12.31.20 12.31.19 GWh $ GWh $ GWh $ Sales of electricity Small demand segment: Residential use and public lighting (T1) 12,373 66,852 11,600 86,541 10,768 109,511 Medium demand segment: Commercial and industrial (T2) 1,447 12,150 1,341 15,909 1,549 24,104 Large demand segment (T3) 3,492 28,531 3,210 29,921 3,503 48,203 Other: (Shantytowns/Wheeling system) 4,398 5,192 4,028 4,695 4,154 2,159 Subtotal - Sales of electricity 21,710 112,725 20,179 137,066 19,974 183,977 Other services Right of use of poles 702 635 582 Connection and reconnection charges 73 81 180 Subtotal - Other services 775 716 762 Total - Revenue 113,500 137,782 184,739 12.31.21 12.31.20 12.31.19 GWh $ GWh $ GWh $ Energy purchases (1) 26,373 (69,800) 25,124 (87,408) 24,960 (117,160) (1) As of December 31, 2021, 2020 and 2019, includes technical and non-technical energy losses for 4,663 GWh, 4,945 GWh and 4,986 GWh, respectively. |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The breakdown of expenses by nature is as follows: | The breakdown of expenses by nature is as follows: Expenses by nature at 12.31.21 Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 11,292 1,797 2,553 15,642 Pension plans 545 87 123 755 Communications expenses 260 577 837 Allowance for the impairment of trade and other receivables 1,962 1,962 Supplies consumption 2,264 212 2,476 Leases and insurance 511 511 Security service 507 43 116 666 Fees and remuneration for services 5,832 3,105 2,588 11,525 Public relations and marketing 116 116 Advertising and sponsorship 60 60 Reimbursements to personnel 1 1 Depreciation of property, plant and equipment 7,159 1,067 875 9,101 Depreciation of right-of-use asset 46 92 320 458 Directors and Supervisory Committee 35 35 ENRE penalties (1) 1,207 838 2,045 Taxes and charges 1,751 85 1,836 Other 28 28 At 12.31.21 29,112 11,495 7,447 48,054 (1) Includes recovery of technical service quality-related penalties for $ 344.3. 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, 2021 for $ 2,300.4 Expenses by nature at 12.31.20 Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 11,703 1,942 3,428 17,073 Pension plans 493 82 145 720 Communications expenses 329 670 1 1,000 Allowance for the impairment of trade and other receivables 6,311 6,311 Supplies consumption 2,834 223 3,057 Leases and insurance 1 1 475 477 Security service 462 49 52 563 Fees and remuneration for services 5,885 3,275 2,320 11,480 Public relations and marketing 29 29 Advertising and sponsorship 15 15 Reimbursements to personnel 1 1 Depreciation of property, plant and equipment 7,720 1,148 944 9,812 Depreciation of right-of-use asset 48 97 333 478 Directors and Supervisory Committee 43 43 ENRE penalties (2) 499 550 1,049 Taxes and charges 2,193 96 2,289 Other 14 14 At 12.31.20 29,974 16,362 8,075 54,411 (2) Includes recovery of technical service quality-related penalties for $ 1,057.4. 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 $ 2,785.3 Expenses by nature at 12.31.19 Description Transmission and distribution expenses Selling expenses Administrative expenses Total Salaries and social security taxes 13,076 2,149 2,745 17,970 Pension plans 392 65 81 538 Communications expenses 170 760 35 965 Allowance for the impairment of trade and other receivables 2,782 2,782 Supplies consumption 3,319 235 3,554 Leases and insurance 465 465 Security service 487 88 190 765 Fees and remuneration for services 5,253 3,323 2,800 11,376 Public relations and marketing 84 84 Advertising and sponsorship 44 44 Reimbursements to personnel 2 2 Depreciation of property, plant and equipment 7,472 1,114 913 9,499 Depreciation of right-of-use asset 33 68 235 336 Directors and Supervisory Committee 45 45 ENRE penalties 2,962 2,725 5,687 Taxes and charges 1,897 103 2,000 Other 32 32 At 12.31.19 33,164 15,099 7,881 56,144 |
Other operating income (expen_2
Other operating income (expense) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of other operating income (expense) | Schedule of other operating income (expense) Note 12.31.21 12.31.20 12.31.19 Other operating income Income from customer surcharges 1,936 2,339 2,364 Commissions on municipal taxes collection 359 338 264 Fines to suppliers 118 41 Services provided to third parties 248 363 370 Related parties 35.a 65 41 Recovery of provision for contingences 34 313 - Income from non-reimbursable customer 47 40 14 Expense recovery 31 107 336 Construction plan Framework agreement 2.e 2,060 - Other 43 70 137 Total other operating income 4,842 3,635 3,567 Other operating expense Gratifications for services (863) (77) (395) Cost for services provided to third parties (112) (145) (199) Severance paid (37) (37) (44) Debit and Credit Tax (1,068) (1,235) (1,628) Provision for contingencies 34 (2,351) (1,343) (2,808) Disposals of property, plant and equipment (249) (227) (130) Refund of fines to suppliers (195) Other (207) (140) (45) Total other operating expense (4,887) (3,399) (5,249) |
Net financial costs (Tables)
Net financial costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of net finance costs | Schedule of net finance costs Note 12.31.21 12.31.20 12.31.19 Financial income Financial interest 65 38 113 Other interest 35.a - 45 5 Total financial income 65 83 118 Financial costs Commercial interest (22,232) (9,031) (6,139) Interest and other (4,688) (4,783) (7,704) Fiscal interest (4) (165) (11) Bank fees and expenses (37) (17) (35) Total financial costs (26,961) (13,996) (13,889) Other financial results Changes in fair value of financial assets 3,967 1,492 578 Net gain from the cancelattion of 3 626 939 Exchange differences (1,602) (4,458) (8,561) Adjustment to present value of receivables (150) (195) (157) Recovery of provision for credit RDSA 38 580 Other financial costs (*) (1,057) (317) (35) Total other financial results 1,741 (2,852) (7,236) Total net financial costs (25,155) (16,765) (21,007) (*) As of December 31, 2021, includes $ 911 relating to EDELCOS S.A.’s technical assistance (Note 35). |
Basic and diluted (loss) inco_2
Basic and diluted (loss) income per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The basic (loss) income per share coincides with the diluted (loss) income per share, inasmuch as the Company has issued neither preferred shares nor Corporate Notes convertible into common shares. | The basic (loss) income per share coincides with the diluted (loss) income per share, inasmuch as the Company has issued neither preferred shares nor Corporate Notes convertible into common shares. 12.31.21 12.31.20 12.31.19 (Loss) Income for the year attributable to the owners of the Company (21,344) (26,704) 24,913 Weighted average number of common shares outstanding 875 875 875 Basic and diluted (loss) income per share – in pesos (24.39) (30.52) 28.47 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of property, plant, and equipment | Schedule of 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 12.31.20 Cost 5,498 47,483 120,974 52,866 9,461 42,313 485 279,080 Accumulated depreciation (1,079) (15,890) (46,771) (20,668) (6,194) (90,602) Net amount 4,419 31,593 74,203 32,198 3,267 42,313 485 188,478 Additions 51 316 229 452 1,488 12,277 1,433 16,246 Disposals (6) - (32) (210) (1) (249) Transfers 135 3,180 5,929 2,165 1,001 (10,972) (1,438) Depreciation for the year (129) (1,731) (4,197) (2,122) (922) (9,101) Net amount 12.31.21 4,470 33,358 76,132 32,483 4,833 43,618 480 195,374 At 12.31.21 Cost 5,679 50,979 126,941 55,163 11,929 43,618 480 294,789 Accumulated depreciation (1,209) (17,621) (50,809) (22,680) (7,096) (99,415) Net amount 4,470 33,358 76,132 32,483 4,833 43,618 480 195,374 · During the year ended December 31, 2021, the Company capitalized as direct own costs $ 2,300.4 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 4,913 45,261 128,855 54,901 8,216 46,427 499 289,072 Accumulated depreciation (940) (14,094) (42,379) (18,397) (5,201) (81,011) Net amount 3,973 31,167 86,476 36,504 3,015 46,427 499 208,061 Additions 62 1,918 217 442 1,092 12,842 131 16,704 Disposals (3) (78) (146) (227) Transfers 524 6,318 6,259 3,848 152 (16,956) (145) Depreciation for the year (140) (1,799) (4,556) (2,325) (992) (9,812) Impairment (6,008) (14,115) (6,125) (26,248) Net amount 12.31.20 4,419 31,593 74,203 32,198 3,267 42,313 485 188,478 At 12.31.20 Cost 5,498 47,483 120,974 52,866 9,461 42,313 485 279,080 Accumulated depreciation (1,079) (15,890) (46,771) (20,668) (6,194) (90,602) Net amount 4,419 31,593 74,203 32,198 3,267 42,313 485 188,478 · During the year ended December 31, 2020, the Company capitalized as direct own costs $ 2,785.3 · Includes $ 2,197.7 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of financial instruments by category | Note 15.1 | Financial instruments by category Schedule of 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, 2021 Assets Trade receivables 17,563 17,563 Other receivables 2,117 23 2,140 Cash and cash equivalents Cash and Banks 1,518 1,518 Time deposits 305 305 Mutual funds 1,349 1,349 Financial assets at fair value through profit or loss: Government bonds 8,872 8,872 Mutual funds 6,579 6,579 Financial assets at amortized cost: Government bonds 243 243 Total 21,746 16,800 23 38,569 As of December 31, 2020 Assets Trade receivables 21,352 21,352 Other receivables 592 492 1,084 Cash and cash equivalents Cash and Banks 2,472 2,472 Mutual funds 4,110 4,110 Financial assets at fair value through profit or loss: Government bonds 3,352 3,352 Financial assets at fair value Government bonds 478 478 Total 24,894 7,462 492 32,848 Financial liabilities at amortized cost Total As of December 31, 2021 Liabilities Trade payables 76,837 76,837 Other payables 13,429 13,429 Borrowings 10,262 10,262 Total 100,528 100,528 As of December 31, 2020 Liabilities Trade payables 50,606 50,606 Other payables 14,009 14,009 Borrowings 12,681 12,681 Total 77,296 77,296 |
Schedule of income, expenses, gains and losses of financial instruments | The income, expenses, gains and losses resulting from each category of financial instruments are as follow: Schedule of income, expenses, gains and losses of financial instruments Financial assets at amortized cost Financial assets at fair value through profit or loss Total As of December 31, 2021 Interest income 65 65 Exchange differences 456 492 948 Changes in fair value of financial assets 3,967 3,967 Net gain from the cancelattion of Corporate Notes 3 3 Other 580 580 Total 1,104 4,459 5,563 As of December 31, 2020 Interest income 83 83 Exchange differences 860 874 1,734 Changes in fair value of financial assets 1,492 1,492 Net gain from the cancelattion of Corporate Notes 626 626 Total 1,569 2,366 3,935 Financial liabilities at amortized cost Total As of December 31, 2021 Interest expense (26,920) (26,920) Exchange differences (2,550) (2,550) Other financial results (1,057) (1,057) Total (30,527) (30,527) As of December 31, 2020 Interest expense (13,814) (13,814) Exchange differences (6,192) (6,192) Other financial results (317) (317) Total (20,323) (20,323) |
Schedule of 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: Schedule of credit quality of financial assets 12.31.21 12.31.20 Customers with no external credit rating: Group 1 (i) 12,828 15,748 Group 2 (ii) 1,660 1,304 Group 3 (iii) 3,075 4,300 Total trade receivables 17,563 21,352 (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. |
Right-of-use asset (Tables)
Right-of-use asset (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The leases recognized as right-of-use assets in accordance with IFRS 16 are disclosed below: | The leases recognized as right-of-use assets in accordance with IFRS 16 are disclosed below: 12.31.21 12.31.20 Right of uses asset by leases 425 344 The development of right-of-use assets is as follows: 12.31.21 12.31.20 Balance at beginning of year 344 357 Additions 539 465 Depreciation for the year (458) (478) Balance at end of the year 425 344 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of inventories asset | Schedule of inventories asset 12.31.21 12.31.20 Supplies and spare-parts 3,441 2,772 Advance to suppliers 51 Total inventories 3,441 2,823 |
Other receivables (Tables)
Other receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Receivables | |
Schedule of other receivables | Schedule of other receivables Note 12.31.21 12.31.20 Non-current: Credit for Real estate asset 38 3,325 Financial credit 5 21 Related parties 35.d 2 5 Allowance for the impairment of other receivables (3,208) Total non-current 7 143 Current: Credit for Real estate asset 38 31 55 Construction plan Framework agreement 2.e 294 Judicial deposits 85 116 Security deposits 64 58 Prepaid expenses 208 64 Advances to personnel 24 3 Financial credit 14 27 Advances to suppliers 9 110 Tax credits 1,364 492 Related parties 35.d 1 28 Debtors for complementary activities 63 103 Other 5 1 Allowance for the impairment of other receivables (29) (116) Total current 2,133 941 |
Schedule of roll forward of the allowance for the impairment of other receivables | Schedule of roll forward of the allowance for the impairment of other receivables The roll forward of the allowance for the impairment of other receivables is as follows: 12.31.21 12.31.20 Balance at beginning of year 3,324 4,501 Increase 3 140 Decrease (1,771) Result from exposure to inflation (939) (1,192) Recovery (588) (125) Balance at end of the year 29 3,324 |
Schedule of aging analysis | Schedule of aging analysis The aging analysis of these other receivables is as follows: 12.31.21 12.31.20 Without expiry date 151 202 Past due 341 98 Up to 3 months 610 125 From 3 to 6 months 355 478 From 6 to 9 months 338 17 From 9 to 12 months 338 21 More than 12 months 7 143 Total other receivables 2,140 1,084 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of trade receivables | Schedule of trade receivables 12.31.21 12.31.20 Current: Sales of electricity – Billed 15,037 18,565 Framework Agreement (1) 14 Receivables in litigation 253 452 Allowance for the impairment of trade receivables (6,006) (6,948) Subtotal 9,284 12,083 Sales of electricity – Unbilled 7,894 8,769 PBA & CABA government credit 383 497 Fee payable for the expansion of the transportation and others 2 3 Total current 17,563 21,352 (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 . |
Schedule of allowance for the impairment of trade receivables | Schedule of allowance for the impairment of trade receivables The roll forward of the allowance for the impairment of trade receivables is as follows: 12.31.21 12.31.20 Balance at beginning of the year 6,948 3,176 Increase 1,967 6,296 Decrease (211) (928) Result from exposure to inflation (2,698) (1,596) Balance at end of the year 6,006 6,948 |
Schedule of aging analysis of trade receivables | Schedule of aging analysis of trade receivables The aging analysis of these trade receivables is as follows: 12.31.21 12.31.20 Not due 14 Past due 4,735 5,604 Up to 3 months 12,828 15,734 Total trade receivables 17,563 21,352 |
Schedule of sensitivity analysis | Schedule of sensitivity analysis Sensitivity analysis of the allowance for impairment of trade receivables: - 5% increase in the uncollectibility rate estimate 12.31.21 Allowance 6,306 Variation 300 - 5% decrease in the uncollectibility rate estimate 12.31.21 Allowance 5,705 Variation (301) |
Financial assets at amortized_2
Financial assets at amortized cost (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Assets At Amortized Cost | |
Schedule of financial assets at amortized cost | Schedule of financial assets at amortized cost 12.31.21 12.31.20 Non-current Government bonds 361 Current Government bonds 243 117 |
Financial assets at fair valu_2
Financial assets at fair value through profit or loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Assets At Fair Value Through Profit Or Loss | |
Schedule of financial assets at fair value through profit or loss | Schedule of financial assets at fair value through profit or loss 12.31.21 12.31.20 Government bonds 8,872 3,352 Mutual funds 6,579 Total Financial assets at fair value through profit or loss 15,451 3,352 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of cash and cash equivalents | Schedule of cash and cash equivalents 12.31.21 12.31.20 Cash and banks 1,518 2,472 Time deposits 305 Mutual funds 1,349 4,110 Total cash and cash equivalents 3,172 6,582 |
Share capital and additional _2
Share capital and additional paid-in capital (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of share capital and additional paid-in capital | Schedule of share capital and additional paid-in capital Share capital Additional paid-in capital Total Balance at December 31, 2019 and 2020 57,475 760 58,235 Payment of Other reserve constitution - Share-bases compensation plan 6 6 Balance at December 31, 2021 57,475 766 58,241 |
Trade payables (Tables)
Trade payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of trade payables | Schedule of trade payables 12.31.21 12.31.20 Non-current Customer guarantees 367 414 Customer contributions 293 372 Total non-current 660 786 Current Payables for purchase of electricity - CAMMESA 57,618 32,265 Provision for unbilled electricity purchases - CAMMESA 9,480 10,025 Suppliers 8,542 6,880 Advance to customer 468 602 Customer contributions 32 48 Discounts to customers 37 Total current 76,177 49,820 |
Other payables (Tables)
Other payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Payables | |
Schedule of other payables | Schedule of other payables Note 12.31.21 12.31.20 Non-current ENRE penalties and discounts 9,373 9,391 Financial Lease Liability (1) 79 92 Total Non-current 9,452 9,483 Current ENRE penalties and discounts 3,554 4,265 Related parties 35.d 138 22 Advances for works to be performed 13 20 Financial Lease Liability (1) 268 217 Other 4 2 Total Current 3,977 4,526 The value of the Company’s other financial payables approximates their fair value. (1) The development of the finance lease liability is as follows: |
Schedule of financial lease liability | Schedule of financial lease liability 12.31.21 12.31.20 Balance at beginning of year 309 301 Increase 451 258 Payments (526) (382) Exchange difference 89 96 Interest 128 86 Result from exposure to inlfation (104) (50) Balance at end of the year 347 309 |
Schedule of future minimum lease payments | Schedule of future minimum lease payments As of December 31, 2021, future minimum payments with respect to finance leases are those detailed below: 12.31.21 12.31.20 2021 297 2022 380 74 2023 116 27 2024 6 Total future minimum lease payments 502 398 |
Schedule of future minimum collections with respect to operating assignments | Schedule of future minimum collections with respect to operating assignments The Company has entered into contracts with certain cable television companies granting them the right to use the network poles. As of December 31, 2021 and 2020, future minimum collections with respect to operating assignments of use are those detailed below: 12.31.21 12.31.20 2021 715 2022 727 712 2023 700 705 2024 2 Total future minimum lease collections 1,429 2,132 |
Deferred revenue (Tables)
Deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of deferred revenue | Schedule of deferred revenue 12.31.21 12.31.20 Non-current Nonrefundable customer contributions 1,687 2,220 12.31.21 12.31.20 Current Nonrefundable customer contributions 44 55 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of borrowings | Schedule of borrowings 12.31.21 12.31.20 Non-current Corporate notes (1) 12,465 Current Corporate notes (1) 10,067 Interest from corporate notes 195 216 Total current 10,262 216 (1) Net of debt issuance, repurchase and redemption expenses. |
Schedule of borrowings currency denominations | Schedule of borrowings currency denominations The Company’s borrowings are denominated in the following currencies: 12.31.21 12.31.20 US dollars 10,262 12,681 |
Schedule of maturities of the company's borrowings and exposure to interest rate | Schedule of maturities of the company's borrowings and exposure to interest rate The maturities of the Company’s borrowings and their exposure to interest rates are as follow: 12.31.21 12.31.20 Fixed rate Less than 1 year 10,262 216 From 1 to 2 years 12,465 Total fixed rate 10,262 12,681 |
Schedule of roll forward of the company's borrowings | Schedule of roll forward of the company's borrowings The roll forward of the Company’s borrowings during the year was as follows: 12.31.21 12.31.20 Balance at beginning of the year 12,681 20,246 Payment of borrowings' interests (895) (1,385) Paid from repurchase of Corporate Notes (17) (5,731) Payment of borrowings (1,132) Gain from repurchase of Corporate Notes (3) (626) Exchange diference and interest accrued 2,769 6,113 Result from exposure to inlfation (4,273) (4,804) Balance at the end of year 10,262 12,681 |
Schedule of debt issued | Schedule of debt issued The Company has 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 12.31.20 Debt repurchase Debt structure at 12.31.21 At 12.31.21 Fixed Rate Par Note 9 9.75 2022 98 98 10,067 Total 98 - 98 10,067 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 12,465 Total 137 (39) 98 12,465 |
Salaries and social security _2
Salaries and social security taxes payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Salaries And Social Security Taxes Payable | |
Schedule of salaries and social security taxes payable | Schedule of salaries and social security taxes payable a. Salaries and social security taxes payable 12.31.21 12.31.20 Non-current Early retirements payable 37 Seniority-based bonus 398 421 Total non-current 398 458 Current Salaries payable and provisions 4,159 5,181 Social security payable 332 415 Early retirements payable 24 39 Total current 4,515 5,635 |
Schedule of salaries and social security taxes charged to profit or loss | Schedule of salaries and social security taxes charged to profit or loss b. Salaries and social security taxes charged to profit or loss 12.31.21 12.31.20 12.31.19 Salaries 11,262 12,293 12,939 Social security taxes 4,380 4,780 5,031 Total salaries and social security taxes 15,642 17,073 17,970 |
Benefit plans (Tables)
Benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of benefit plans | The amounts and conditions vary depending on the collective bargaining agreement and for non-unionized personnel. Schedule of benefit plans 12.31.21 12.31.20 Non-current 997 1,130 Current 131 127 Total Benefit plans 1,128 1,257 |
The breakdown of the benefit plan obligations as of December 31, 2021 and 2020 is as follows: | The breakdown of the benefit plan obligations as of December 31, 2021 and 2020 is as follows: 12.31.21 12.31.20 Benefit payment obligations at beginning of year 1,257 1,181 Current service cost 66 243 Interest cost 689 477 Actuarial losses (200) (164) Result from exposure to inflation for the year (613) (459) Benefits paid to participating employees (71) (21) Benefit payment obligations at end of year 1,128 1,257 |
Schedule of detail of the charge recognized in the statement of comprehensive loss income | The breakdown of the charge recognized in the Statement of Comprehensive Income (Loss) is as follows: Schedule of detail of the charge recognized in the statement of comprehensive loss income 12.31.21 12.31.20 12.31.19 Cost 66 243 226 Interest 689 477 312 Actuarial results - Other comprehensive results (200) (164) 15 Benefit plan charge 555 556 553 |
The main assumptions used are as follow: | 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: Schedule of actuarial assumptions 12.31.21 12.31.20 12.31.19 Discount rate 5 5 5 Salary increase 1 1 1 Inflation 57 50 31 |
Sensitivity analysis: | Sensitivity analysis: 12.31.21 Discount Rate: 4% Obligation 1,234 Variation 106 9 Discount Rate: 6% Obligation 1,038 Variation (90) ( 8 Salary Increase : 0% Obligation 1,034 Variation (94) ( 8 Salary Increase: 2% Obligation 1,237 Variation 109 9 |
The expected payments of benefits are as follow: | The expected payments of benefits are as follow: In 2022 In 2023 In 2024 In 2025 In 2026 Between 2027 to 2031 At December 31, 2021 Benefit payment obligations 131 23 25 26 5 22 |
Income tax and deferred tax (Ta
Income tax and deferred tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of analysis of deferred tax assets and liabilities | The breakdown of deferred tax assets and liabilities is as follows: Schedule of analysis of deferred tax assets and liabilities 12.31.20 Result from exposure to inflation Charged to Profit and loss Charged to Other comprenhen- sive income 12.31.21 Deferred tax assets Tax loss carryforward 374 (126) (248) - - Trade receivables and other receivables 2,038 (687) 882 - 2,233 Trade payables and other payables 1,022 (345) 524 - 1,201 Salaries and social security taxes payable 385 (130) 277 - 532 Benefit plans 116 (39) 11 (70) 18 Tax liabilities 29 (10) 6 - 25 Provisions 1,234 (416) 798 - 1,616 Deferred tax asset 5,198 (1,753) 2,250 (70) 5,625 Deferred tax liabilities: Property, plant and equipment (35,283) 11,899 (27,600) - (50,984) Financial assets at fair value through profit or loss (450) 152 (84) - (382) Borrowings (3) 1 1 - (1) Tax inflation adjustment (5,236) 1,766 (226) - (3,696) Deferred tax liability (40,972) 13,818 (27,909) - (55,063) Net deferred tax liability (35,774) 12,065 (25,659) (70) (49,438) 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 - - 374 - 374 Trade receivables and other receivables 1,137 (302) 1,203 - 2,038 Trade payables and other payables 1,236 (327) 113 - 1,022 Salaries and social security taxes payable 232 (60) 213 - 385 Benefit plans 222 (59) 2 (49) 116 Tax liabilities 38 (11) 2 - 29 Provisions 1,382 (367) 219 - 1,234 Deferred tax asset 4,247 (1,126) 2,126 (49) 5,198 Deferred tax liabilities: Property, plant and equipment (40,347) 10,710 (5,646) - (35,283) Financial assets at fair value through profit or loss (427) 113 (136) - (450) Borrowings (8) 3 2 - (3) Tax inflation adjustment (4,658) 1,237 (1,815) - (5,236) Deferred tax liability (45,440) 12,063 (7,595) - (40,972) Net deferred tax liability (41,193) 10,937 (5,469) (49) (35,774) 12.31.21 12.31.20 Deferred tax assets: To be recover in more than 12 months 5,625 5,198 Deferred tax asset 5,625 5,198 Deferred tax liabilities: To be recover in more than 12 months (55,063) (40,972) Deferred tax liability (55,063) (40,972) Net deferred tax liability (49,438) (35,774) |
Schedule of income tax expense | The breakdown of the income tax expense is as follows: Schedule of income tax expense 12.31.21 12.31.20 12.31.19 Deferred tax (6,345) 4,184 (17,052) Change in the income tax rate (7,473) 1,284 1,273 Current tax (2,042) - (5,964) Difference between provision and tax return 224 (92) (181) Income tax expense (15,636) 5,376 (21,924) 12.31.21 12.31.20 12.31.19 (Loss) Income for the year before taxes (5,708) (32,080) 46,847 Applicable tax rate 35 30 30 Result for the year at the tax rate 1,998 9,624 (14,054) Loss on net monetary position (3,359) (2,020) (3,943) Adjustment effect on tax inflation (6,972) (3,357) (5,761) Non-taxable income (54) (63) 742 Difference between provision and tax return 224 (92) (181) Change in the income tax rate (7,473) 1,284 1,273 Income tax expense (15,636) 5,376 (21,924) |
Schedule of income tax provisions | The income tax payable, net of withholdings is detailed below. Schedule of income tax provisions 12.31.21 12.31.20 Current Provision of income tax payable 2,042 Tax withholdings (788) Total current 1,254 |
Tax liabilities (Tables)
Tax liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Tax Liabilities | |
Schedule of tax liabilities | Schedule of tax liabilities 12.31.21 12.31.20 Non-current Current Provincial, municipal and federal contributions and taxes 131 692 VAT payable 1,389 Tax withholdings 228 258 SUSS withholdings 27 16 Municipal taxes 233 350 Total current 619 2,705 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of provisions | Schedule of provisions Non-current liabilities Current liabilities Contingencies At 12.31.20 3,668 540 Increases 1,832 519 Decreases (301) Result from exposure to inflation for the year (1,519) (221) At 12.31.21 3,981 537 At 12.31.19 4,237 439 Increases 1,097 246 Decreases (158) (18) Recovery (313) Result from exposure to inflation for the year (1,195) (127) At 12.31.20 3,668 540 |
Related-party transactions (Tab
Related-party transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of related party income | a. Income Schedule of related party income Company Concept 12.31.21 12.31.20 12.31.19 PESA Impact study - 5 - SACDE Reimbursement expenses 60 41 FIDUS SGR SGR contribution revenue 45 5 - 110 46 |
Schedule of related party expenses | b. Expense Schedule of related party expenses Company Concept 12.31.21 12.31.20 12.31.19 EDELCOS S.A. Technical advisory services on financial matters (911) - PESA Technical advisory services on financial matters (311) (279) SACME Operation and oversight of the electric power transmission system (317) (154) (170) OSV Hiring life insurance for staff (41) (41) SB&WM Abogados Legal fees (20) FIDUS Legal fees (6) (2) ABELOVICH, POLANO & ASOC. Legal fees (2) (3) (1,228) (534) (495) |
Schedule of key management personnel's remuneration | c. Key Management personnel’s remuneration Schedule of key management personnel's remuneration 12.31.21 12.31.20 12.31.19 Salaries 1,518 486 605 |
Schedule of related party receivables and payables | d. Receivables and payables Schedule of related party receivables and payables 12.31.21 12.31.20 Other receivables - Non current SACME 2 5 Other receivables - Current FIDUS SGR 26 SACME 1 2 1 28 Other payables Andina PLC (119) SACME (19) (22) (138) (22) |
General information (Details Na
General information (Details Narrative) $ in Millions | 12 Months Ended |
Dec. 31, 2021ARS ($) | |
General Information | |
Awarded percentage | 51.00% |
Maturity | maturities taking place in March 2020 |
Principal balance | $ 26,259 |
Interest and charges | $ 23,880 |
Regulatory framework (Details N
Regulatory framework (Details Narrative) - ARS ($) $ in Millions | Jan. 14, 2021 | Dec. 31, 2021 |
Reserve Quantities [Line Items] | ||
Term of concession | 95 years | |
Concession area amounted | $ 2,126 | |
Description of date of issuance | the Company has used a total of $ 1,794.1 (which at the purchasing power of the currency at December 31, 2021 amounts to $ 2,059.8), $ 294.1 of which has not yet been credited, relating to the reports on progress of the works performed. | |
Nonadjusting events after reporting period member | ||
Reserve Quantities [Line Items] | ||
Description of disbursement payments | On January 14, 2021, the Company received a first disbursement for $ 1,500, which was placed into low-risk money market funds, which accrued holding results throughout the fiscal year. As of December 31, 2021, negotiations are underway between the Company and the ENRE concerning the other disbursements stipulated in the agreement, which total an additional $1,000 relating to the second and third disbursements, plus a fourth disbursement in accordance with that which the ENRE will validate and inform about the vulnerable neighborhoods’ total consumption between August and December 2020. | |
Wholesale electricity market member | ||
Reserve Quantities [Line Items] | ||
Description of consumption of energy, power, interest and/or penalties | accordance with the conditions to be set out by the application authority, which may provide for credits equivalent to up to five times the monthly average bill or to sixty-six percent of the existing debt, whereas the remaining debt is to be paid in up to sixty monthly installments, with a grace period of up to six months, and at the rate in effect in the MEM, reduced by fifty percent. | |
P e s a1 member | ||
Reserve Quantities [Line Items] | ||
Share capital percentag | 51.00% |
The impact of these changes is
The impact of these changes is considered non-material and is as follows: (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from investing activities | |||
(Purchase) Collection net of Mutual funds and government bonds | $ (10,824) | $ (3,997) | $ 11,252 |
Net cash flows used in investing activities | (25,544) | (18,787) | (4,533) |
Financial results in cash and cash equivalents | 2,228 | 1,386 | 288 |
Result from exposure to inflation | (4) | 545 | 303 |
Increase in cash and cash equivalents | (5,634) | (1,921) | 5,915 |
Cash and cash equivalents at the end of the year | 3,172 | 6,582 | 6,572 |
(Purchase) Collection net of Mutual funds and government bonds | 11,252 | ||
Cash and cash equivalents at the beginning of year | 6,582 | 6,572 | 66 |
Previously stated [member] | |||
Cash flows from investing activities | |||
(Purchase) Collection net of Mutual funds and government bonds | 3,898 | ||
Net cash flows used in investing activities | (10,892) | (10,591) | |
Financial results in cash and cash equivalents | (546) | 902 | |
Result from exposure to inflation | 309 | (5) | |
Increase in cash and cash equivalents | 5,974 | (143) | |
Cash and cash equivalents at the end of the year | 6,582 | 842 | |
(Purchase) Collection net of Mutual funds and government bonds | 5,194 | ||
Cash and cash equivalents at the beginning of year | 6,582 | 842 | 88 |
Increase (decrease) due to corrections of prior period errors [member] | |||
Cash flows from investing activities | |||
(Purchase) Collection net of Mutual funds and government bonds | (7,895) | ||
Net cash flows used in investing activities | (7,895) | 6,058 | |
Financial results in cash and cash equivalents | 1,932 | (614) | |
Result from exposure to inflation | 236 | 308 | |
Increase in cash and cash equivalents | (7,895) | 6,058 | |
Cash and cash equivalents at the end of the year | |||
(Purchase) Collection net of Mutual funds and government bonds | 6,058 | ||
Cash and cash equivalents at the beginning of year | $ (22) |
Basis of preparation (Details N
Basis of preparation (Details Narrative) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inflation rate | 50.90% | 36.13% | 53.77% | 47.66% | 24.79% |
The tax will be determined acco
The tax will be determined according to the following scale: (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Applicable tax rate | 35.00% | 30.00% | 30.00% |
Tax member | |||
IfrsStatementLineItems [Line Items] | |||
Applicable tax rate | 25.00% | ||
Tax member | Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated net taxable income | $ 0 | ||
Tax member | Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated net taxable income | $ 5 | ||
Tax1 member | |||
IfrsStatementLineItems [Line Items] | |||
Applicable tax rate | 30.00% | ||
Amount to be paid | $ 1,250,000 | ||
Tax1 member | Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated net taxable income | 50 | ||
Tax2 member | |||
IfrsStatementLineItems [Line Items] | |||
Accumulated net taxable income | $ 50 | ||
Applicable tax rate | 35.00% | ||
Amount to be paid | $ 14,750,000 |
Accounting policies (Details Na
Accounting policies (Details Narrative) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Other finance costs | $ 116.7 | ||
Income tax payable rate | 35.00% | 30.00% | 30.00% |
Description of income tax percentage | calculated from the beginning to the end of each year, exceeded 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 CPI 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 CPI cumulative variations for the 12 months of each year had amounted to 36.13% and 53.77%, respectively, which exceeded the 15% and 30% thresholds fixed for the third and second transition years of the tax inflation adjustment, and, therefore, the Company recognized the effect of the tax inflation adjustment in the calculation of the current and deferred income tax provision in those fiscal years. | ||
Land [member] | |||
IfrsStatementLineItems [Line Items] | |||
Estimated useful lives | Not depreciated | ||
Facilities in service member | |||
IfrsStatementLineItems [Line Items] | |||
Estimated useful lives | Between 30 and 50 years | ||
Office equipment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Estimated useful lives | Between 5 and 20 years |
Schedule of balances in foreign
Schedule of balances in foreign currency (Details) $ in Thousands | Dec. 31, 2021ARS ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020ARS ($) | Dec. 31, 2020USD ($) | |
IfrsStatementLineItems [Line Items] | |||||
Exchange rate | 102.72 | 84.15 | |||
Current assets member | |||||
IfrsStatementLineItems [Line Items] | |||||
Foreign currency balance assets | $ 6,061,000 | $ 2,989,000 | |||
Current assets member | Other receivables member | |||||
IfrsStatementLineItems [Line Items] | |||||
Amount of foreign currency | $ 1,000,000 | ||||
Exchange rate | [1] | 102.720 | |||
Foreign currency balance assets | 103,000 | $ 762,000,000 | |||
Current assets member | Financial assets at fair value through profit or loss, category [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Amount of foreign currency | $ 46,000,000 | ||||
Exchange rate | [1] | 102.720 | |||
Foreign currency balance assets | $ 4,725,000,000 | 0 | |||
Current assets member | Cash and equivalents member | |||||
IfrsStatementLineItems [Line Items] | |||||
Amount of foreign currency | $ 12,000,000 | ||||
Exchange rate | [1] | 102.720 | |||
Foreign currency balance assets | $ 1,233,000,000 | 2,159,000,000 | |||
Total assets member | |||||
IfrsStatementLineItems [Line Items] | |||||
Foreign currency balance assets | 6,061,000 | 2,989,000 | |||
Noncurrent liabilities member | |||||
IfrsStatementLineItems [Line Items] | |||||
Foreign currency balance liabilities | 0 | 12,465,000 | |||
Noncurrent liabilities member | Borrowing member | |||||
IfrsStatementLineItems [Line Items] | |||||
Amount of foreign currency | $ 0 | ||||
Exchange rate | [1] | 102.720 | |||
Foreign currency balance liabilities | $ 0 | 12,465,000,000 | |||
Current liabilities member | |||||
IfrsStatementLineItems [Line Items] | |||||
Foreign currency balance liabilities | 12,522,000 | 2,809,000 | |||
Current liabilities member | Borrowing member | |||||
IfrsStatementLineItems [Line Items] | |||||
Amount of foreign currency | $ 100,000,000 | ||||
Exchange rate | [1] | 102.720 | |||
Foreign currency balance liabilities | $ 10,262,000,000 | 216,000,000 | |||
Current liabilities member | Trade payables2 member | |||||
IfrsStatementLineItems [Line Items] | |||||
Amount of foreign currency | $ 12,000,000 | ||||
Exchange rate | [1] | 102.720 | |||
Foreign currency balance liabilities | $ 1,233,000,000 | 1,451,000,000 | |||
Current liabilities member | Other payables member | |||||
IfrsStatementLineItems [Line Items] | |||||
Amount of foreign currency | $ 10,000,000 | ||||
Exchange rate | [1] | 102.720 | |||
Foreign currency balance liabilities | $ 1,027,000,000 | $ 1,142,000,000 | |||
Total liabilities member | |||||
IfrsStatementLineItems [Line Items] | |||||
Foreign currency balance liabilities | $ 12,522,000 | $ 15,274,000 | |||
[1] | The exchange rates used are the BNA exchange rates in effect as of December 31, 2021 for US Dollars (USD) and Japanese Yens (JPY). |
Schedule of exposure to currenc
Schedule of exposure to currency risk (Details) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Net position assets/(liabilities) | $ (6,461) | $ (12,285) |
U s dollar member | ||
IfrsStatementLineItems [Line Items] | ||
Net position assets/(liabilities) | (6,461) | (12,353) |
Japanese yen member | ||
IfrsStatementLineItems [Line Items] | ||
Net position assets/(liabilities) | $ 0 | $ 68 |
Schedule of decrease in results
Schedule of decrease in results of operations (Details) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Decrease in the results of operations for the year | $ (646) | $ (1,228) |
U s dollar member | ||
IfrsStatementLineItems [Line Items] | ||
Decrease in the results of operations for the year | (646) | (1,235) |
Japanese yen member | ||
IfrsStatementLineItems [Line Items] | ||
Decrease in the results of operations for the year | $ 0 | $ 7 |
Schedule of analysis of non-der
Schedule of analysis of non-derivative financial liabilities (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | $ 110,173 | $ 89,626 |
Trade and other payables member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 99,911 | 76,945 |
Borrowing member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 10,262 | 12,681 |
Less than3 months member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 26,963 | 30,038 |
Less than3 months member | Borrowing member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 0 | 0 |
From3 months to1 year member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 17,454 | 6,045 |
From3 months to1 year member | Trade and other payables member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 7,192 | 5,829 |
From3 months to1 year member | Borrowing member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 10,262 | 216 |
From2 to5 years member | Trade and other payables member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 12,519 | 13,362 |
From2 to5 years member | Borrowing member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 0 | 0 |
No deadline member | Borrowing member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 0 | 0 |
From1 to2 years member | Borrowing member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 0 | 12,465 |
No deadline member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | 52,926 | 27,414 |
From1 to2 years member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | $ 311 | 12,767 |
From1 to2 years member | Trade and other payables member | ||
IfrsStatementLineItems [Line Items] | ||
Non-derivative financial liabilities | $ 302 |
Schedule of gearing ratios (Det
Schedule of gearing ratios (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Total liabilities | $ 164,129 | $ 129,608 | ||
Less: Cash and cash equivalents and Financial assets at fair value through profit or loss | (18,623) | (9,934) | ||
Net debt | 145,506 | 119,674 | ||
Total Equity | 73,694 | 94,902 | $ 121,491 | $ 97,809 |
Total capital attributable to owners | $ 219,200 | $ 214,576 | ||
Gearing ratio | 66.38% | 55.77% |
Schedule of financial assets an
Schedule of financial assets and liabilities measured at fair value (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Assets | $ 16,800 | $ 7,462 |
Government bonds member | ||
IfrsStatementLineItems [Line Items] | ||
Assets | 8,872 | 3,352 |
Mutual funds member | ||
IfrsStatementLineItems [Line Items] | ||
Assets | 6,579 | $ 4,110 |
Cash and cash equivalents | $ 1,349 |
Financial risk management (Deta
Financial risk management (Details Narrative) $ in Millions | Dec. 31, 2021ARS ($)USD ($) | Dec. 31, 2020ARS ($)USD ($) |
Exchange rate | 102.72 | 84.15 |
Delinquent trade receivables | $ 10,409.5 | $ 12,504.4 |
Allowances | 6,006.3 | 6,947.9 |
Financial assets | $ 15,450.8 | $ 3,352.3 |
Schedule of interest in joint v
Schedule of interest in joint ventures (Details) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Equity attributable to the owners | $ 14 | $ 17 |
S a c m e member | ||
IfrsStatementLineItems [Line Items] | ||
Percentage interest held in capital stock and votes | 50.00% | |
Equity attributable to the owners | $ 14 | $ 17 |
Critical accounting estimates_2
Critical accounting estimates and judgments (Details Narrative) $ in Millions | 12 Months Ended |
Dec. 31, 2021ARS ($) | |
IfrsStatementLineItems [Line Items] | |
Electricity discount rate | 13.72% |
Impairment of property plant and equipment one | $ 17,396 |
Scenario no1 member | |
IfrsStatementLineItems [Line Items] | |
Probability of occurance assigned percentage | 30.00% |
Scenario no2 member | |
IfrsStatementLineItems [Line Items] | |
Probability of occurance assigned percentage | 60.00% |
Scenario no3 member | |
IfrsStatementLineItems [Line Items] | |
Probability of occurance assigned percentage | 10.00% |
Contingencies and lawsuits (Det
Contingencies and lawsuits (Details Narrative) | Dec. 31, 2021ARS ($) |
Legal provision | $ 4,518 |
Schedule of sales of electricit
Schedule of sales of electricity (Details) MWh in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021ARS ($)MWh | Dec. 31, 2020ARS ($)MWh | Dec. 31, 2019ARS ($)MWh | |
IfrsStatementLineItems [Line Items] | |||
Total - Revenue | $ 113,500 | $ 137,782 | $ 184,739 |
Small demand tariff member | |||
IfrsStatementLineItems [Line Items] | |||
Sale of energy | MWh | MWh | 12,373 | 11,600 | 10,768 |
Total - Revenue | $ 66,852 | $ 86,541 | $ 109,511 |
Medium demand segment member | |||
IfrsStatementLineItems [Line Items] | |||
Sale of energy | MWh | MWh | 1,447 | 1,341 | 1,549 |
Total - Revenue | $ 12,150 | $ 15,909 | $ 24,104 |
Large demand segment member | |||
IfrsStatementLineItems [Line Items] | |||
Sale of energy | MWh | MWh | 3,492 | 3,210 | 3,503 |
Total - Revenue | $ 28,531 | $ 29,921 | $ 48,203 |
Other demand segment member | |||
IfrsStatementLineItems [Line Items] | |||
Sale of energy | MWh | MWh | 4,398 | 4,028 | 4,154 |
Total - Revenue | $ 5,192 | $ 4,695 | $ 2,159 |
Subtotal sales of electricity member | |||
IfrsStatementLineItems [Line Items] | |||
Sale of energy | MWh | MWh | 21,710 | 20,179 | 19,974 |
Total - Revenue | $ 112,725 | $ 137,066 | $ 183,977 |
Right of use of poles member | |||
IfrsStatementLineItems [Line Items] | |||
Total - Revenue | 702 | 635 | 582 |
Connection and reconnection charges member | |||
IfrsStatementLineItems [Line Items] | |||
Total - Revenue | 73 | 81 | 180 |
Subtotal other eervices member | |||
IfrsStatementLineItems [Line Items] | |||
Total - Revenue | $ 775 | $ 716 | $ 762 |
Energy purchase member | |||
IfrsStatementLineItems [Line Items] | |||
Sale of energy | MWh | MWh | 26,373 | 25,124 | 24,960 |
Total - Revenue | $ (69,800) | $ (87,408) | $ (117,160) |
The breakdown of expenses by na
The breakdown of expenses by nature is as follows: (Details) - ARS ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | $ 29,112,000 | $ 29,974,000 | $ 33,164,000 | |||
Selling expenses | 11,495,000 | 16,362,000 | 15,099,000 | |||
Administrative expenses | 7,447,000 | 8,075,000 | 7,881,000 | |||
Expenses by nature | 48,054,000 | 54,411,000 | 56,144,000 | |||
Pension plans member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 493,000 | 392,000 | ||||
Selling expenses | 82 | 65,000 | ||||
Administrative expenses | 123,000 | 145 | 81,000 | |||
Expenses by nature | 755,000 | 720 | 538,000 | |||
Communication expenses member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 329,000 | 170,000 | ||||
Selling expenses | 670,000 | 760,000 | ||||
Administrative expenses | 1,000 | 35,000 | ||||
Expenses by nature | 837,000 | 1,000,000 | 965,000 | |||
Allowance for impairment of trade and other receivables member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | 6,311,000 | 2,782,000 | ||||
Administrative expenses | ||||||
Expenses by nature | 1,962,000 | 6,311,000 | 2,782,000 | |||
Supplies consumption member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 2,834,000 | 3,319,000 | ||||
Selling expenses | ||||||
Administrative expenses | 212,000 | 223,000 | 235,000 | |||
Expenses by nature | 2,476,000 | 3,057,000 | 3,554,000 | |||
Leases and insurance member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 1,000 | |||||
Selling expenses | 1,000 | |||||
Administrative expenses | 511,000 | 475,000 | 465,000 | |||
Expenses by nature | 511,000 | 477,000 | 465,000 | |||
Security service member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 462,000 | 487,000 | ||||
Selling expenses | 49,000 | 88,000 | ||||
Administrative expenses | 116,000 | 52,000 | 190,000 | |||
Expenses by nature | 666,000 | 563,000 | 765,000 | |||
Fees and remuneration for services member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 5,885,000 | 5,253,000 | ||||
Selling expenses | 3,275,000 | 3,323,000 | ||||
Administrative expenses | 2,588,000 | 2,320,000 | 2,800,000 | |||
Expenses by nature | 11,525,000 | 11,480,000 | 11,376,000 | |||
Public relations and marketing member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | 29,000 | 84,000 | ||||
Administrative expenses | ||||||
Expenses by nature | 116,000 | 29,000 | 84,000,000 | |||
Advertising and sponsorhip member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | 15,000 | 44,000 | ||||
Administrative expenses | ||||||
Expenses by nature | 60,000 | 15,000 | 44,000 | |||
Reimbursements to personnel member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | ||||||
Administrative expenses | 1,000 | 1,000 | 2,000 | |||
Expenses by nature | 1,000 | 1,000 | 2,000 | |||
Depreciation of property plants and equipment member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 7,720,000 | 7,472,000 | ||||
Selling expenses | 1,148,000 | 1,114,000 | ||||
Administrative expenses | 875,000 | 944,000 | 913,000 | |||
Expenses by nature | 9,101,000 | 9,812,000 | 9,499,000 | |||
Depreciation of rightofuse asset member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 48,000 | 33,000 | ||||
Selling expenses | 97,000 | 68,000 | ||||
Administrative expenses | 320,000 | 333,000 | 235,000 | |||
Expenses by nature | 458,000 | 478,000 | 336,000 | |||
Directors and supervisory committee members fee member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | ||||||
Administrative expenses | 35,000 | 43,000 | 45,000 | |||
Expenses by nature | 35,000 | 43,000 | 45,000 | |||
E n r e penalties member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 499,000 | [1] | 2,962,000 | |||
Selling expenses | 550,000 | [1] | 2,725,000 | |||
Administrative expenses | [2] | [1] | ||||
Expenses by nature | 2,045,000 | [2] | 1,049,000 | [1] | 5,687,000 | |
Taxes and charges member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | 2,193,000 | 1,897,000 | ||||
Administrative expenses | 85,000 | 96,000 | 103,000 | |||
Expenses by nature | 1,836,000 | 2,289,000 | 2,000,000 | |||
Other member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | ||||||
Administrative expenses | 28,000 | 14,000 | 32,000 | |||
Expenses by nature | 28,000 | 14,000 | 32,000 | |||
Salaries and social security taxes member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 11,703,000 | 13,076,000 | ||||
Selling expenses | 1,942,000 | 2,149,000 | ||||
Administrative expenses | 3,428,000 | 2,745,000 | ||||
Expenses by nature | $ 17,073,000 | $ 17,970,000 | ||||
Salaries and social security taxes member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 11,292,000 | |||||
Selling expenses | 1,797,000 | |||||
Administrative expenses | 2,553,000 | |||||
Expenses by nature | 15,642,000 | |||||
Pension plans member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 545,000 | |||||
Selling expenses | 87,000 | |||||
Communications expenses member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 260,000 | |||||
Selling expenses | 577,000 | |||||
Allowance for the impairment of trade and other receivables member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | 1,962,000 | |||||
Supplies consumption member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 2,264,000 | |||||
Selling expenses | ||||||
Leases and insurance member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | ||||||
Security service member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 507,000 | |||||
Selling expenses | 43,000 | |||||
Fees and remuneration for services member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 5,832,000 | |||||
Selling expenses | 3,105,000 | |||||
Public relations and marketing member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | 116,000 | |||||
Advertising and sponsorship member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | 60,000 | |||||
Reimbursements to personnel member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | ||||||
Depreciation of property plants and equipments member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 7,159,000 | |||||
Selling expenses | 1,067,000 | |||||
Depreciation of rightofuse asset member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | 46,000 | |||||
Selling expenses | 92,000 | |||||
Directors and supervisory committee members fees member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | ||||||
E n r e penalties member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | [2] | 1,207,000 | ||||
Selling expenses | [2] | 838,000 | ||||
Taxes and charges member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | 1,751,000 | |||||
Other expenses by nature member | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Transmission and distribution expenses | ||||||
Selling expenses | ||||||
[1] | Includes recovery of technical service quality-related penalties for $ 1,057.4. | |||||
[2] | Includes recovery of technical service quality-related penalties for $ 344.3. |
Revenue from sales and energy_3
Revenue from sales and energy purchases (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Small demand tariff member | |
IfrsStatementLineItems [Line Items] | |
Types of services | Small demand segment: Residential use and public lighting (T1) |
Description of the main services provided | 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 member | |
IfrsStatementLineItems [Line Items] | |
Types of services | Medium demand segment: Commercial and industrial customers (T2) |
Description of the main services provided | 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 member | |
IfrsStatementLineItems [Line Items] | |
Types of services | Large demand segment (T3) |
Description of the main services provided | 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 demand segment member | |
IfrsStatementLineItems [Line Items] | |
Types of services | Wheeling system) |
Description of the main services provided | 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. |
Right of use of poles member | |
IfrsStatementLineItems [Line Items] | |
Types of services | Right of use of poles |
Description of the main services provided | 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 member | |
IfrsStatementLineItems [Line Items] | |
Types of services | Connection and reconnection charges |
Description of the main services provided | Relate 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 | |
IfrsStatementLineItems [Line Items] | |
Types of services | Energy purchase |
Description of the main services provided | 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 member | |
IfrsStatementLineItems [Line Items] | |
Types of services | losses |
Description of the main services provided | 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% |
Schedule of other operating inc
Schedule of other operating income (expense) (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Other operating income | $ 4,842 | $ 3,635 | $ 3,567 |
Other operating expense | (4,887) | (3,399) | (5,249) |
Income from customer surcharges member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating income | 1,936 | 2,339 | 2,364 |
Commissions on municipal taxes collection member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating income | 359 | 338 | 264 |
Fines to suppliers member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating income | 118 | 41 | |
Services provided third parties member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating income | 248 | 363 | 370 |
Related parties [member] | |||
IfrsStatementLineItems [Line Items] | |||
Other operating income | 65 | 41 | |
Recovery Of Provision For Contingences [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other operating income | 313 | ||
Income from nonreimbursable customer contributions member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating income | 47 | 40 | 14 |
Expense recovery member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating income | 31 | 107 | 336 |
Construction plan framework agreement member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating income | 2,060 | ||
Others member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating income | 43 | 70 | 137 |
Other operating expense | (207) | (140) | (45) |
Gratification for services member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating expense | (863) | (77) | (395) |
Cost for services provided to third parties member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating expense | (112) | (145) | (199) |
Severance paid member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating expense | (37) | (37) | (44) |
Debit and credit tax member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating expense | (1,068) | (1,235) | (1,628) |
Provision for contingencies member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating expense | (2,351) | (1,343) | (2,808) |
Disposals of property plant and equipment member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating expense | (249) | (227) | (130) |
Refund of fines to suppliers member | |||
IfrsStatementLineItems [Line Items] | |||
Other operating expense | $ (195) |
Schedule of net finance costs (
Schedule of net finance costs (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Total financial income | $ 65 | $ 83 | $ 118 |
Total finance costs | (26,961) | (13,996) | (13,889) |
Total other finance costs | 1,741 | (2,852) | (7,236) |
Total net finance costs | (25,155) | (16,765) | (21,007) |
Financial interest member | |||
IfrsStatementLineItems [Line Items] | |||
Total financial income | 65 | 38 | 113 |
Other interest member | |||
IfrsStatementLineItems [Line Items] | |||
Total financial income | 45 | 5 | |
Commercial interest member | |||
IfrsStatementLineItems [Line Items] | |||
Total finance costs | (22,232) | (9,031) | (6,139) |
Interest and other expenses member | |||
IfrsStatementLineItems [Line Items] | |||
Total finance costs | (4,688) | (4,783) | (7,704) |
Fiscal interest member | |||
IfrsStatementLineItems [Line Items] | |||
Total finance costs | (4) | (165) | (11) |
Bank fees and expenses member | |||
IfrsStatementLineItems [Line Items] | |||
Total finance costs | (37) | (17) | (35) |
Changes fair value financial assets member | |||
IfrsStatementLineItems [Line Items] | |||
Total other finance costs | 3,967 | 1,492 | 578 |
Net gain repurchase notes member | |||
IfrsStatementLineItems [Line Items] | |||
Total other finance costs | 3 | 626 | 939 |
Exchange differences member | |||
IfrsStatementLineItems [Line Items] | |||
Total other finance costs | (1,602) | (4,458) | (8,561) |
Adjustment present value receivables member | |||
IfrsStatementLineItems [Line Items] | |||
Total other finance costs | (150) | (195) | (157) |
Recovery of provision for credit r d s a member | |||
IfrsStatementLineItems [Line Items] | |||
Total other finance costs | 580 | ||
Other financial expense member | |||
IfrsStatementLineItems [Line Items] | |||
Total other finance costs | $ (1,057) | $ (317) | $ (35) |
The basic (loss) income per sha
The basic (loss) income per share coincides with the diluted (loss) income per share, inasmuch as the Company has issued neither preferred shares nor Corporate Notes convertible into common shares. (Details) - ARS ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit (loss) | $ (21,344) | $ (26,704) | $ 24,923 |
Weighted average number of common shares outstanding | 875 | 875 | 875 |
Basic and diluted (loss) income per share – in pesos | $ (24.39) | $ (30.52) | $ 28.47 |
Schedule of property, plant, an
Schedule of property, plant, and equipment (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Cost | $ 294,789 | $ 279,080 | $ 289,072 |
Accumlated depreciation | (99,415) | (90,602) | (81,011) |
Property, plant, and equipment, beginning | 195,374 | 188,478 | 208,061 |
Additions | 16,246 | 16,704 | |
Disposals | (249) | (227) | |
Transfers | |||
Depreciation for the period | (9,101) | (9,812) | |
Depreciation, property, plant and equipment | 9,101 | 9,812 | |
Impairment | (26,248) | ||
Direct costs | 2,785.3 | ||
Land and buildings [member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 5,679 | 5,498 | 4,913 |
Accumlated depreciation | (1,209) | (1,079) | (940) |
Property, plant, and equipment, beginning | 4,470 | 4,419 | 3,973 |
Additions | 51 | 62 | |
Disposals | (6) | ||
Transfers | 135 | 524 | |
Depreciation for the period | (129) | (140) | |
Depreciation, property, plant and equipment | 129 | 140 | |
Impairment | |||
Substations member | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 50,979 | 47,483 | 45,261 |
Accumlated depreciation | (17,621) | (15,890) | (14,094) |
Property, plant, and equipment, beginning | 33,358 | 31,593 | 31,167 |
Additions | 316 | 1,918 | |
Disposals | (3) | ||
Transfers | 3,180 | 6,318 | |
Depreciation for the period | (1,731) | (1,799) | |
Depreciation, property, plant and equipment | 1,731 | 1,799 | |
Impairment | (6,008) | ||
Voltage lines member | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 126,941 | 120,974 | 128,855 |
Accumlated depreciation | (50,809) | (46,771) | (42,379) |
Property, plant, and equipment, beginning | 76,132 | 74,203 | 86,476 |
Additions | 229 | 217 | |
Disposals | (32) | (78) | |
Transfers | 5,929 | 6,259 | |
Depreciation for the period | (4,197) | (4,556) | |
Depreciation, property, plant and equipment | 4,197 | 4,556 | |
Impairment | (14,115) | ||
Meters chambers platforms member | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 55,163 | 52,866 | 54,901 |
Accumlated depreciation | (22,680) | (20,668) | (18,397) |
Property, plant, and equipment, beginning | 32,483 | 32,198 | 36,504 |
Additions | 452 | 442 | |
Disposals | (210) | (146) | |
Transfers | 2,165 | 3,848 | |
Depreciation for the period | (2,122) | (2,325) | |
Depreciation, property, plant and equipment | 2,122 | 2,325 | |
Impairment | (6,125) | ||
Other property, plant and equipment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 11,929 | 9,461 | 8,216 |
Accumlated depreciation | (7,096) | (6,194) | (5,201) |
Property, plant, and equipment, beginning | 4,833 | 3,267 | 3,015 |
Additions | 1,488 | 1,092 | |
Disposals | (1) | ||
Transfers | 1,001 | 152 | |
Depreciation for the period | (922) | (992) | |
Depreciation, property, plant and equipment | 922 | 992 | |
Construction in process member | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 43,618 | 42,313 | 46,427 |
Accumlated depreciation | |||
Property, plant, and equipment, beginning | 43,618 | 42,313 | 46,427 |
Additions | 12,277 | 12,842 | |
Disposals | |||
Transfers | (10,972) | (16,956) | |
Depreciation for the period | |||
Depreciation, property, plant and equipment | |||
Impairment | |||
Suppliers and spare parts member | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 480 | 485 | 499 |
Accumlated depreciation | |||
Property, plant, and equipment, beginning | 480 | 485 | $ 499 |
Additions | 1,433 | 131 | |
Disposals | |||
Transfers | (1,438) | (145) | |
Depreciation for the period | |||
Depreciation, property, plant and equipment | |||
Impairment | |||
General rodriguez transformer station member | |||
IfrsStatementLineItems [Line Items] | |||
Direct costs | $ 2,197.7 |
Expenses by nature (Details Nar
Expenses by nature (Details Narrative) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses capitalized in property, plant and equipment | $ 2,300.4 | $ 2,785.3 | $ 2,313.8 |
Schedule of financial instrumen
Schedule of financial instruments by category (Details) - ARS ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | $ 1,104,000 | $ 1,569,000 |
Financial assets at fair value through profit or loss | 4,459,000 | 2,366,000 |
Financial assets at amortised cost one | 21,746,000 | 24,894,000 |
Financial assets at fair value through profit or loss Total | 16,800,000 | 7,462,000 |
Non-current financial assets | 23,000 | 492,000 |
Total | 38,569,000 | 32,848,000 |
Financial liabilities at amortized cost | 100,528,000 | 77,296,000 |
Total | 100,528,000 | 77,296,000 |
Trade payables member | ||
IfrsStatementLineItems [Line Items] | ||
Total | 76,837,000 | 50,606,000 |
Financial liabilities at amortized cost | 76,837,000 | 50,606,000 |
Other payables member | ||
IfrsStatementLineItems [Line Items] | ||
Total | 13,429,000 | 14,009,000 |
Financial liabilities at amortized cost | 13,429,000 | 14,009,000 |
Borrowing member | ||
IfrsStatementLineItems [Line Items] | ||
Total | 10,262,000 | 12,681,000 |
Financial liabilities at amortized cost | 10,262,000 | 12,681,000 |
Trade receivables [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | 17,563,000 | 21,352,000 |
Financial assets at fair value through profit or loss | ||
Non-financial assets | ||
Total | 17,563,000 | 21,352,000 |
Other receivables member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | 2,117,000 | 592,000 |
Financial assets at fair value through profit or loss | ||
Non-financial assets | 23,000 | 492,000 |
Total | 2,140,000 | 1,084,000 |
Cash and cash equivalent member | Cash and banks member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | 1,518,000 | 2,472,000 |
Financial assets at fair value through profit or loss | ||
Non-financial assets | ||
Total | 1,518,000 | 2,472,000 |
Cash and cash equivalent member | Time deposits member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | 305,000 | |
Financial assets at fair value through profit or loss | ||
Non-financial assets | ||
Total | 305,000 | |
Cash and cash equivalent member | Mutual fund member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | ||
Financial assets at fair value through profit or loss | 1,349 | 4,110,000 |
Non-financial assets | ||
Total | 1,349,000 | 4,110,000 |
Financial assets at fair value through profit or loss member | Government bonds member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | ||
Financial assets at fair value through profit or loss | 8,872 | 3,352,000 |
Non-financial assets | ||
Total | 8,872,000 | 3,352,000 |
Financial assets at fair value through profit or loss member | Mutual funds member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | ||
Financial assets at fair value through profit or loss | 6,579 | |
Non-financial assets | ||
Total | 6,579,000 | |
Financial assets at amortized cost member | Government bonds member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | 243,000 | 478,000 |
Financial assets at fair value through profit or loss | ||
Non-financial assets | ||
Total | $ 243,000 | $ 478,000 |
Schedule of income, expenses, g
Schedule of income, expenses, gains and losses of financial instruments (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | $ 1,104 | $ 1,569 |
Financial assets at fair value through profit or loss | 4,459 | 2,366 |
Total | 5,563 | 3,935 |
Financial assets at amortised cost two | (30,527) | (20,323) |
Interest incomes member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | 65 | 83 |
Financial assets at fair value through profit or loss | ||
Total | 65 | 83 |
Exchange differences member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | 456 | 860 |
Financial assets at fair value through profit or loss | 492 | 874 |
Total | 948 | 1,734 |
Changes in fair value of financial assets member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | ||
Financial assets at fair value through profit or loss | 3,967 | 1,492 |
Total | 3,967 | 1,492 |
Corporate notes member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | 3 | 626 |
Financial assets at fair value through profit or loss | ||
Total | 3 | 626 |
Other note member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | 580 | |
Financial assets at fair value through profit or loss | ||
Total | 580 | |
Interest incomes one member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | (26,920) | (13,814) |
Total | (26,920) | (13,814) |
Exchange differences one member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | (2,550) | (6,192) |
Total | (2,550) | (6,192) |
Other financial results one member | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets at amortized cost | (1,057) | (317) |
Total | $ (1,057) | $ (317) |
Schedule of credit quality of f
Schedule of credit quality of financial assets (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Trade receivables | $ 17,563 | $ 21,352 | |
Group1 member | |||
IfrsStatementLineItems [Line Items] | |||
Trade receivables | [1] | 12,828 | 15,748 |
Group2 member | |||
IfrsStatementLineItems [Line Items] | |||
Trade receivables | [2] | 1,660 | 1,304 |
Group3 member | |||
IfrsStatementLineItems [Line Items] | |||
Trade receivables | [3] | $ 3,075 | $ 4,300 |
[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. |
Property, plant and equipment_2
Property, plant and equipment (Details Narrative) | 12 Months Ended |
Dec. 31, 2021ARS ($) | |
Direct own costs | $ 2,300,400,000 |
The leases recognized as right-
The leases recognized as right-of-use assets in accordance with IFRS 16 are disclosed below: (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total right-of-use asset by leases | $ 425 | $ 344 | $ 357 |
Balance at beginning of year | 344 | 357 | |
Additions | 539 | 465 | |
Depreciation for the year | (458) | (478) | (336) |
Balance at end of the year | $ 425 | $ 344 | $ 357 |
Right-of-use asset (Details Nar
Right-of-use asset (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum [Member] | |
IfrsStatementLineItems [Line Items] | |
Lease terms | 2 years |
Maximum [Member] | |
IfrsStatementLineItems [Line Items] | |
Lease terms | 3 years |
Schedule of inventories asset (
Schedule of inventories asset (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Supplies and spare-parts | $ 3,441 | $ 2,772 |
Advance to suppliers | 51 | |
Total inventories | $ 3,441 | $ 2,823 |
Schedule of other receivables (
Schedule of other receivables (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total non current | $ 7 | $ 143 |
Current other receivables | 2,133 | 941 |
Credit for real estate asset member | ||
IfrsStatementLineItems [Line Items] | ||
Total non current | 3,325 | |
Current other receivables | 31 | 55 |
Financial credit member | ||
IfrsStatementLineItems [Line Items] | ||
Total non current | 5 | 21 |
Current other receivables | 14 | 27 |
Related parties [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total non current | 2 | 5 |
Current other receivables | 1 | 28 |
Allowance for impairment of other receivables member | ||
IfrsStatementLineItems [Line Items] | ||
Total non current | (3,208) | |
Current other receivables | (29) | (116) |
Construction plan framework agreement member | ||
IfrsStatementLineItems [Line Items] | ||
Construction plan Framework agreement | 294 | |
Judicial deposits member | ||
IfrsStatementLineItems [Line Items] | ||
Current other receivables | 85 | 116 |
Security deposits member | ||
IfrsStatementLineItems [Line Items] | ||
Current other receivables | 64 | 58 |
Prepaid expenses member | ||
IfrsStatementLineItems [Line Items] | ||
Current other receivables | 208 | 64 |
Advances to personnel member | ||
IfrsStatementLineItems [Line Items] | ||
Current other receivables | 24 | 3 |
Advances to suppliers member | ||
IfrsStatementLineItems [Line Items] | ||
Current other receivables | 9 | 110 |
Tax credits member | ||
IfrsStatementLineItems [Line Items] | ||
Current other receivables | 1,364 | 492 |
Debtors for complementary activities member | ||
IfrsStatementLineItems [Line Items] | ||
Current other receivables | 63 | 103 |
Other1 member | ||
IfrsStatementLineItems [Line Items] | ||
Current other receivables | $ 5 | $ 1 |
Schedule of roll forward of the
Schedule of roll forward of the allowance for the impairment of other receivables (Details) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Receivables | ||
Balance at beginning of year | $ 3,324 | $ 4,501 |
Increase | 3 | 140 |
Decrease | (1,771) | |
Result from exposure to inflation | (939) | (1,192) |
Recovery | (588) | (125) |
Balance at end of the year | $ 29 | $ 3,324 |
Schedule of aging analysis (Det
Schedule of aging analysis (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Other receivables | $ 2,140 | $ 1,084 |
Unexpired member | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 151 | 202 |
Past due member | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 341 | 98 |
Up to3 months member | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 610 | 125 |
From3 to6 months member | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 355 | 478 |
From6 to9 months member | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 338 | 17 |
From9 to12 months member | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | 338 | 21 |
More than12 months member | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables | $ 7 | $ 143 |
Schedule of trade receivables (
Schedule of trade receivables (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Current trade receivables | $ 17,563 | $ 21,352 |
Billed sales of electricity member | ||
IfrsStatementLineItems [Line Items] | ||
Current trade receivables | 15,037 | 18,565 |
Framework agreement member | ||
IfrsStatementLineItems [Line Items] | ||
Current trade receivables | 14 | |
Receivables in litigation member | ||
IfrsStatementLineItems [Line Items] | ||
Current trade receivables | 253 | 452 |
Allowance for impairment of trade receivables member | ||
IfrsStatementLineItems [Line Items] | ||
Current trade receivables | (6,006) | (6,948) |
Subtotal member | ||
IfrsStatementLineItems [Line Items] | ||
Current trade receivables | 9,284 | 12,083 |
Unbilled sales of electricity member | ||
IfrsStatementLineItems [Line Items] | ||
Current trade receivables | 7,894 | 8,769 |
P b a and c a b a government credit member | ||
IfrsStatementLineItems [Line Items] | ||
Current trade receivables | 383 | 497 |
Fee payable member | ||
IfrsStatementLineItems [Line Items] | ||
Current trade receivables | $ 2 | $ 3 |
Schedule of allowance for the i
Schedule of allowance for the impairment of trade receivables (Details) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance at beginning of the year | $ 6,948 | $ 3,176 |
Increase | 1,967 | 6,296 |
Decrease | (211) | (928) |
Result from exposure to inflation | (2,698) | (1,596) |
Balance at end of the year | $ 6,006 | $ 6,948 |
Schedule of aging analysis of t
Schedule of aging analysis of trade receivables (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Trade receivables | $ 17,563 | $ 21,352 |
Not due member | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables | 14 | |
Past due member | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables | 4,735 | 5,604 |
Up to3 months member | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables | $ 12,828 | $ 15,734 |
Schedule of sensitivity analysi
Schedule of sensitivity analysis (Details) $ in Millions | Dec. 31, 2021ARS ($) |
Five percent increase in uncollectiibility rate estimate member | |
IfrsStatementLineItems [Line Items] | |
Allowance | $ 6,306 |
Variation | 300 |
Five percent decrease in uncollectiibility rate estimate member | |
IfrsStatementLineItems [Line Items] | |
Allowance | 5,705 |
Variation | $ (301) |
Schedule of financial assets at
Schedule of financial assets at amortized cost (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total Current | $ 361 | |
Total Current | 243 | 117 |
Government bonds member | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | 361 | |
Total Current | $ 243 | $ 117 |
Schedule of financial assets _2
Schedule of financial assets at fair value through profit or loss (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total Current | $ 15,451 | $ 3,352 |
Government bonds member | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | 8,872 | 3,352 |
Money market fund member | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | $ 6,579 |
Schedule of cash and cash equiv
Schedule of cash and cash equivalents (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and banks | $ 1,518 | $ 2,472 |
Time deposits | 305 | |
Mutual funds | 1,349 | 4,110 |
Total cash and cash equivalents | $ 3,172 | $ 6,582 |
Schedule of share capital and a
Schedule of share capital and additional paid-in capital (Details) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Share capital and additional paid-in capital balance | $ 58,241 | $ 58,235 |
Payment of other reserve constitution share-bases compensation plan | 6 | |
Issued capital [member] | ||
IfrsStatementLineItems [Line Items] | ||
Share capital and additional paid-in capital balance | 57,475 | 57,475 |
Payment of other reserve constitution share-bases compensation plan | ||
Additional paid-in capital [member] | ||
IfrsStatementLineItems [Line Items] | ||
Share capital and additional paid-in capital balance | 766 | $ 760 |
Payment of other reserve constitution share-bases compensation plan | $ 6 |
Share capital and additional _3
Share capital and additional paid-in capital (Details Narrative) | 12 Months Ended |
Dec. 31, 2021shares | |
Issued capital [member] | |
IfrsStatementLineItems [Line Items] | |
Number of shares issued | 906,455,100 |
Class a issued capital member | |
IfrsStatementLineItems [Line Items] | |
Number of shares issued | 462,292,111 |
Description of par value rights | par value of one peso each and the right to one vote per share |
Class b issued capital member | |
IfrsStatementLineItems [Line Items] | |
Number of shares issued | 442,210,385 |
Description of par value rights | par value of one peso each and the right to one vote per share |
Class c issued capital member | |
IfrsStatementLineItems [Line Items] | |
Number of shares issued | 1,952,604 |
Description of par value rights | par value of one peso each and the right to one vote per share |
Schedule of trade payables (Det
Schedule of trade payables (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total non current | $ 660 | $ 786 |
Total Current | 76,177 | 49,820 |
Customer guarantees member | ||
IfrsStatementLineItems [Line Items] | ||
Total non current | 367 | 414 |
Customer contributions member | ||
IfrsStatementLineItems [Line Items] | ||
Total non current | 293 | 372 |
Total Current | 32 | 48 |
Payables for purchase of electricity member | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | 57,618 | 32,265 |
Provision for unbilled electricity purchases member | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | 9,480 | 10,025 |
Suppliers member | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | 8,542 | 6,880 |
Advance to customer member | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | 468 | 602 |
Discounts to customers member | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | $ 37 |
The Company_s Share-based Com_2
The Company’s Share-based Compensation Plan (Details Narrative) - ARS ($) $ in Millions | Apr. 15, 2021 | Dec. 31, 2021 |
Number of treasury share | 246,451 | |
Salaries and social security taxes | $ 162.3 |
Trade payables (Details Narrati
Trade payables (Details Narrative) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Non-current customer contributions | $ 46.4 | $ 64.6 |
Schedule of other payables (Det
Schedule of other payables (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Noncurrent | $ 9,452 | $ 9,483 |
Current | 3,977 | 4,526 |
E n r e penalties and discounts member | ||
IfrsStatementLineItems [Line Items] | ||
Noncurrent | 9,373 | 9,391 |
Current | 3,554 | 4,265 |
Finance lease liability member | ||
IfrsStatementLineItems [Line Items] | ||
Noncurrent | 79 | 92 |
Current | 268 | 217 |
Related parties other payables member | ||
IfrsStatementLineItems [Line Items] | ||
Current | 138 | 22 |
Advances for works to be performed member | ||
IfrsStatementLineItems [Line Items] | ||
Current | 13 | 20 |
Other1 member | ||
IfrsStatementLineItems [Line Items] | ||
Current | $ 4 | $ 2 |
Schedule of financial lease lia
Schedule of financial lease liability (Details) - ARS ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Payables | ||
Balance at beginning of year | $ 309 | $ 301 |
Increase | 451 | 258 |
Payments | (526) | (382) |
Exchange difference | 89 | 96 |
Interest | 128 | 86 |
Result from exposure to inlfation | (104) | (50) |
Balance at end of the year | $ 347 | $ 309 |
Schedule of future minimum leas
Schedule of future minimum lease payments (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total future minimum lease payments | $ 502 | $ 398 |
Twenty twenty one member | ||
IfrsStatementLineItems [Line Items] | ||
Total future minimum lease payments | 297 | |
Twenty twenty two member | ||
IfrsStatementLineItems [Line Items] | ||
Total future minimum lease payments | 380 | 74 |
Twenty twenty three member | ||
IfrsStatementLineItems [Line Items] | ||
Total future minimum lease payments | 116 | 27 |
Twenty twenty four member | ||
IfrsStatementLineItems [Line Items] | ||
Total future minimum lease payments | $ 6 |
Schedule of future minimum coll
Schedule of future minimum collections with respect to operating assignments (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total future minimum lease collections | $ 1,429 | $ 2,132 |
Twenty twenty one member | ||
IfrsStatementLineItems [Line Items] | ||
Total future minimum lease collections | 715 | |
Twenty twenty two member | ||
IfrsStatementLineItems [Line Items] | ||
Total future minimum lease collections | 727 | 712 |
Twenty twenty three member | ||
IfrsStatementLineItems [Line Items] | ||
Total future minimum lease collections | 700 | 705 |
Twenty twenty four member | ||
IfrsStatementLineItems [Line Items] | ||
Total future minimum lease collections | $ 2 |
Schedule of deferred revenue (D
Schedule of deferred revenue (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Non-current | $ 1,687 | $ 2,220 |
Current | 44 | 55 |
Nonrefundable customer contributions member | ||
IfrsStatementLineItems [Line Items] | ||
Non-current | 1,687 | 2,220 |
Current | $ 44 | $ 55 |
Schedule of borrowings (Details
Schedule of borrowings (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Non-current borrowings | $ 12,465 | |
Current borrowings | 10,262 | 216 |
Corporate notes member | ||
IfrsStatementLineItems [Line Items] | ||
Non-current borrowings | 12,465 | |
Current borrowings | 10,067 | |
Interest from corporate notes member | ||
IfrsStatementLineItems [Line Items] | ||
Current borrowings | $ 195 | $ 216 |
Schedule of borrowings currency
Schedule of borrowings currency denominations (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Borrowings | $ 10,262 | $ 12,681 | $ 20,246 |
U s dollar member | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings | $ 10,262 | $ 12,681 |
Schedule of maturities of the c
Schedule of maturities of the company's borrowings and exposure to interest rate (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Borrowings | $ 10,262 | $ 12,681 | $ 20,246 |
Fixed interest rate [member] | Less than one year member | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings | 10,262 | 216 | |
Fixed interest rate [member] | From one to two years member | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings | $ 12,465 |
Schedule of roll forward of t_2
Schedule of roll forward of the company's borrowings (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Borrowings | $ 12,681 | $ 20,246 | |
Payment of borrowings' interests | 895 | 1,385 | |
Paid from repurchase of Corporate Notes | (17) | (5,731) | |
Payment of borrowings | (1,132) | $ (3,273) | |
Gain from repurchase of Corporate Notes | (3) | (626) | |
Exchange diference and interest accrued | 2,769 | 6,113 | |
Result from exposure to inlfation | (4,273) | (4,804) | |
Borrowings | $ 10,262 | $ 12,681 | $ 20,246 |
Schedule of debt issued (Detail
Schedule of debt issued (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fixed rate par note member | United States of America, Dollars | |||
IfrsStatementLineItems [Line Items] | |||
Deb structure, beginning | $ 10,067 | $ 12,465 | |
Corporate note2 member | |||
IfrsStatementLineItems [Line Items] | |||
Deb structure, beginning | $ 10,067 | ||
Corporate note2 member | Fixed rate par note member | |||
IfrsStatementLineItems [Line Items] | |||
Rate | 975.00% | 975.00% | |
Year of maturity | 2022 | 2022 | |
Corporate note2 member | Fixed rate par note member | United States of America, Dollars | |||
IfrsStatementLineItems [Line Items] | |||
Deb structure, beginning | $ 98 | $ 98 | |
Debt repurchase | |||
Corporate Note 3 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deb structure, beginning | 12,465 | ||
Corporate Note 3 [Member] | United States of America, Dollars | |||
IfrsStatementLineItems [Line Items] | |||
Deb structure, beginning | 98 | $ 137 | |
Debt repurchase | (39) | ||
Corporate Note 3 [Member] | Fixed rate par note member | United States of America, Dollars | |||
IfrsStatementLineItems [Line Items] | |||
Deb structure, beginning | 98 | $ 137 | |
Debt repurchase | $ (39) |
Borrowings (Details Narrative)
Borrowings (Details Narrative) - ARS ($) | Jan. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Fair values of noncurrent borrowings | $ 8,982,500,000 | $ 10,228,500,000 | ||
Equivalent | 18,623,000,000 | 9,934,000,000 | ||
Outstanding value | $ 10,262,000,000 | $ 12,681,000,000 | $ 20,246,000,000 | |
Corporate note2 member | Fixed rate par note member | United States of America, Dollars | ||||
IfrsStatementLineItems [Line Items] | ||||
Repurchased of notes | $ 224,000,000 | |||
Equivalent | 23,000,000 | |||
Corporate notes member | United States of America, Dollars | ||||
IfrsStatementLineItems [Line Items] | ||||
Outstanding value | $ 98,100,000 |
Schedule of salaries and social
Schedule of salaries and social security taxes payable (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total non-current | $ 398 | $ 458 |
Total current | 4,515 | 5,635 |
Early retirements payable member | ||
IfrsStatementLineItems [Line Items] | ||
Total non-current | 37 | |
Total current | 24 | 39 |
Seniority based bonus member | ||
IfrsStatementLineItems [Line Items] | ||
Total non-current | 398 | 421 |
Salaries payable and provisions member | ||
IfrsStatementLineItems [Line Items] | ||
Total current | 4,159 | 5,181 |
Social security payable member | ||
IfrsStatementLineItems [Line Items] | ||
Total current | $ 332 | $ 415 |
Schedule of salaries and soci_2
Schedule of salaries and social security taxes charged to profit or loss (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Salaries And Social Security Taxes Payable | |||
Salaries | $ 11,262 | $ 12,293 | $ 12,939 |
Social security taxes | 4,380 | 4,780 | 5,031 |
Total salaries and social security taxes | $ 15,642 | $ 17,073 | $ 17,970 |
Salaries and social security _3
Salaries and social security taxes payable (Details Narrative) $ in Millions | Dec. 31, 2021ARS ($)Employees | Dec. 31, 2020ARS ($)Employees |
Salaries And Social Security Taxes Payable | ||
Current future payment obligations | $ 23.8 | $ 80.1 |
Collective bargaining liabilities | $ 404.5 | $ 421.1 |
Number of employees | Employees | 4,668 | 4,776 |
Schedule of benefit plans (Deta
Schedule of benefit plans (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current | $ 997 | $ 1,130 | |
Current | 131 | 127 | |
Total Benefit plans | $ 1,128 | $ 1,257 | $ 1,181 |
The breakdown of the benefit pl
The breakdown of the benefit plan obligations as of December 31, 2021 and 2020 is as follows: (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Benefit payment obligations at beginning of year | $ 1,257 | $ 1,181 | |
Current service cost | 66 | 243 | $ 226 |
Interest cost | 689 | 477 | 312 |
Actuarial losses | (200) | (164) | 15 |
Result from exposure to inflation for the year | (613) | (459) | |
Benefits paid to participating employees | 71 | 21 | |
Benefit payment obligations at end of year | $ 1,128 | $ 1,257 | $ 1,181 |
Schedule of detail of the charg
Schedule of detail of the charge recognized in the statement of comprehensive loss income (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cost | $ 66 | $ 243 | $ 226 |
Interest | 689 | 477 | 312 |
Actuarial results - Other comprehensive results | (200) | (164) | 15 |
Benefit plan charge | $ 555 | $ 556 | $ 553 |
The main assumptions used are a
The main assumptions used are as follow: (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Discount rate | 5.00% | 5.00% | 5.00% |
Salary increase | 1.00% | 1.00% | 1.00% |
Inflation | 57.00% | 50.00% | 31.00% |
Sensitivity analysis_ (Details)
Sensitivity analysis: (Details) $ in Millions | Dec. 31, 2021ARS ($) |
Obligation | $ 1,234 |
Variation | $ 106 |
Percent | 9.00% |
Obligation | $ 1,038 |
Variation | $ (90) |
Percent | 8.00% |
Obligation | $ 1,034 |
Variation | $ (94) |
Percent | 8.00% |
Obligation | $ 1,237 |
Variation | $ 109 |
Percent | 9.00% |
The expected payments of benefi
The expected payments of benefits are as follow: (Details) $ in Millions | Dec. 31, 2021ARS ($) |
Not later than one year [member] | |
IfrsStatementLineItems [Line Items] | |
Benefit payment obligations | $ 131 |
Later than one year [member] | |
IfrsStatementLineItems [Line Items] | |
Benefit payment obligations | 23 |
Later Than Two Year [Member] | |
IfrsStatementLineItems [Line Items] | |
Benefit payment obligations | 25 |
Later Than Three Year [Member] | |
IfrsStatementLineItems [Line Items] | |
Benefit payment obligations | 26 |
Later Than Four Year [Member] | |
IfrsStatementLineItems [Line Items] | |
Benefit payment obligations | 5 |
Later Than Five Year [Member] | |
IfrsStatementLineItems [Line Items] | |
Benefit payment obligations | $ 22 |
Schedule of analysis of deferre
Schedule of analysis of deferred tax assets and liabilities (Details) - ARS ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Tax loss carryforward | $ 374 | ||
Trade receivables and other receivables | 2,233 | 2,038 | |
Trade payables and other payables | 1,201 | 1,022 | 1,236 |
Salaries and social security taxes payable | 532 | 385 | 232 |
Benefit plans | 18 | 116 | 222 |
Tax liabilities | 25 | 29 | 38 |
Provisions | 1,616 | 1,234 | 1,382 |
Deferred tax asset | 5,625 | 5,198 | 4,247 |
Property, plant and equipment | (50,984) | (35,283) | (40,347) |
Financial assets at fair value through profit or loss | (382) | (450) | (427) |
Borrowings | (1) | (3) | (8) |
Tax inflation adjustment | (3,696) | (5,236) | (4,658) |
Deferred tax liability | (55,063) | (40,972) | (45,440) |
Net deferred tax liabilities | (49,438) | (35,774) | (41,193) |
Inventories | 2,038 | $ 1,137 | |
Deferred tax asset | 5,625 | 5,198 | |
Deferred tax liability | (55,063) | (40,972) | |
Recovered in more than12 months member | |||
IfrsStatementLineItems [Line Items] | |||
Deferred tax asset | 5,625 | 5,198 | |
Deferred tax liability | (55,063) | (40,972) | |
Result fromexposure to inflation member | |||
IfrsStatementLineItems [Line Items] | |||
Tax loss carryforward | (126) | ||
Trade receivables and other receivables | (687) | ||
Trade payables and other payables | (345) | (327) | |
Salaries and social security taxes payable | (130) | (60) | |
Benefit plans | (39) | (59) | |
Tax liabilities | (10) | (11) | |
Provisions | (416) | (367) | |
Deferred tax asset | (1,753) | (1,126) | |
Property, plant and equipment | 11,899 | 10,710 | |
Financial assets at fair value through profit or loss | 152 | 113 | |
Borrowings | 1 | 3 | |
Tax inflation adjustment | 1,766 | 1,237 | |
Deferred tax liability | 13,818 | 12,063 | |
Net deferred tax liabilities | 12,065 | 10,937 | |
Inventories | (302) | ||
Charged to profit and loss member | |||
IfrsStatementLineItems [Line Items] | |||
Tax loss carryforward | (248) | 374 | |
Trade receivables and other receivables | 882 | ||
Trade payables and other payables | 524 | 113 | |
Salaries and social security taxes payable | 277 | 213 | |
Benefit plans | 11 | 2 | |
Tax liabilities | 6 | 2 | |
Provisions | 798 | 219 | |
Deferred tax asset | 2,250 | 2,126 | |
Property, plant and equipment | (27,600) | (5,646) | |
Financial assets at fair value through profit or loss | (84) | (136) | |
Borrowings | 1 | 2 | |
Tax inflation adjustment | (226) | (1,815) | |
Deferred tax liability | (27,909) | (7,595) | |
Net deferred tax liabilities | (25,659) | (5,469) | |
Inventories | 1,203 | ||
Charged to other comprehensive income member | |||
IfrsStatementLineItems [Line Items] | |||
Tax loss carryforward | |||
Trade receivables and other receivables | |||
Trade payables and other payables | |||
Salaries and social security taxes payable | |||
Benefit plans | (70) | (49) | |
Tax liabilities | |||
Provisions | |||
Deferred tax asset | (70) | (49) | |
Property, plant and equipment | |||
Financial assets at fair value through profit or loss | |||
Borrowings | |||
Tax inflation adjustment | |||
Deferred tax liability | |||
Net deferred tax liabilities | $ (70) | (49) | |
Inventories |
Schedule of income tax expense
Schedule of income tax expense (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax | $ (6,345) | $ 4,184 | $ (17,052) |
Change in the income tax rate | (7,473) | 1,284 | 1,273 |
Current tax | (2,042) | (5,964) | |
Difference between provision and tax return | 224 | (92) | (181) |
Income tax expense | (15,636) | 5,376 | (21,924) |
Profit for the year before taxes | $ (5,708,000) | $ (32,080,000) | $ 46,847,000 |
Applicable tax rate | 35.00% | 30.00% | 30.00% |
Loss for the year at the tax rate | $ 1,998 | $ 9,624 | $ (14,054) |
Gain on net monetary position | (3,359) | (2,020) | (3,943) |
Adjustment effect on tax inflation | (6,972) | (3,357) | (5,761) |
Non-taxable income | (54) | (63) | 742 |
Difference between provision and tax return | 224 | (92) | (181) |
Income tax expense | $ (15,636,000) | $ 5,376,000 | $ (21,924,000) |
Schedule of income tax provisio
Schedule of income tax provisions (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Provision of income tax payable | $ 2,042 | |
Tax withholdings | (788) | |
Total income tax payable | $ 1,254 |
Schedule of tax liabilities (De
Schedule of tax liabilities (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total Current | $ 619 | $ 2,705 |
Provincial Municipal Federal Contribution Taxes Payable [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | 131 | 692 |
V A T Payable [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | 1,389 | |
Tax Withholdings [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | 228 | 258 |
S U S S Withholdings [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | 27 | 16 |
Municipal Taxes Payble [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total Current | $ 233 | $ 350 |
Schedule of provisions (Details
Schedule of provisions (Details) - ARS ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2021 | Jan. 01, 2020 | |
IfrsStatementLineItems [Line Items] | ||||
Provisions, ending | $ 3,981,000 | $ 3,668,000 | ||
Noncurrent liabilities member | ||||
IfrsStatementLineItems [Line Items] | ||||
Provisions, ending | 3,981 | 3,668 | $ 3,668 | $ 4,237 |
Increases | 1,832 | 1,097 | ||
Decreases | (158) | |||
Provisions, ending | (1,519,000) | (1,195,000) | ||
Result from exposure to inflation for the year | (313) | |||
Current liabilities member | ||||
IfrsStatementLineItems [Line Items] | ||||
Provisions, ending | 537 | 540 | $ 540 | $ 439 |
Increases | 519 | 246 | ||
Decreases | (301) | (18) | ||
Provisions, ending | $ (221,000) | (127,000) | ||
Result from exposure to inflation for the year |
Schedule of related party incom
Schedule of related party income (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reserve Quantities [Line Items] | |||
Related-party income | $ 110 | $ 46 | |
P e s a1 member | |||
Reserve Quantities [Line Items] | |||
Related-party income | 5 | ||
S a c d e member | |||
Reserve Quantities [Line Items] | |||
Related-party income | 60 | 41 | |
F i d u s s g r member | |||
Reserve Quantities [Line Items] | |||
Related-party income | $ 45 | $ 5 |
Schedule of related party expen
Schedule of related party expenses (Details) - ARS ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reserve Quantities [Line Items] | |||
Related-party expense | $ (1,228) | $ (534) | $ (495) |
E d e l c o s member | |||
Reserve Quantities [Line Items] | |||
Related-party expense | (911) | ||
P e s a member | |||
Reserve Quantities [Line Items] | |||
Related-party expense | (311) | (279) | |
S a c m e member | |||
Reserve Quantities [Line Items] | |||
Related-party expense | (317) | (154) | (170) |
O s v a member | |||
Reserve Quantities [Line Items] | |||
Related-party expense | (41) | ||
S b and w m abogados member | |||
Reserve Quantities [Line Items] | |||
Related-party expense | (20) | ||
F i d u s member | |||
Reserve Quantities [Line Items] | |||
Related-party expense | (6) | (2) | |
Abelovich polano associates member | |||
Reserve Quantities [Line Items] | |||
Related-party expense | $ (2) | $ (3) |
Schedule of key management pers
Schedule of key management personnel's remuneration (Details) - ARS ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Key management personnel's remuneration - salaries | $ 1,518 | $ 486 | $ 605 |
Schedule of related party recei
Schedule of related party receivables and payables (Details) - ARS ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Reserve Quantities [Line Items] | ||
Other receivables - current | $ 1 | $ 28 |
Other payables | (138) | (22) |
S a c m e member | ||
Reserve Quantities [Line Items] | ||
Other receivables - noncurrent | 2 | 5 |
Other receivables - current | 1 | 2 |
Other payables | (19) | (22) |
F i d u s s g r member | ||
Reserve Quantities [Line Items] | ||
Other receivables - current | 26 | |
Andina p l c member | ||
Reserve Quantities [Line Items] | ||
Other payables | $ (119) |
Related-party transactions (Det
Related-party transactions (Details Narrative) | 12 Months Ended |
Dec. 31, 2021ARS ($) | |
S a c d e s a member | |
IfrsStatementLineItems [Line Items] | |
Operating cost | $ 317 |
E d e l c o s s a member | |
IfrsStatementLineItems [Line Items] | |
Payment for annual advisory services | $ 1,766,000 |
Related party agreement term | 60 days |
Services rendered | $ 911,000 |
Fidus sociedad de garantia reciproca member | |
IfrsStatementLineItems [Line Items] | |
Fund contribution in capacity as protector partner | $ 25,000 |
Shareholders_ Meetings (Details
Shareholders’ Meetings (Details Narrative) | Apr. 27, 2021 |
Shareholders Meetings | |
Description of ordinary and extraordinary shareholders meeting | To approve edenor?s Annual Report and Financial Statements as of December 31, 2020; |
Description of ordinary and extraordinary shareholders meeting | To allocate the $ 17,698 loss for the year ended December 31, 2020 (at the purchasing power of the currency at December 31, 2021 amounts to $ 26,704) to the partial absorption of the Discretionary reserve, under the terms of section 70, 3rd paragraph, of Business Organizations Law No. 19,550; |
Termination of agreement on r_2
Termination of agreement on real estate asset (Details Narrative) - ARS ($) $ in Millions | 12 Months Ended | |
Jan. 27, 2022 | Dec. 31, 2021 | |
Aseguradora de cauciones s a member | ||
IfrsStatementLineItems [Line Items] | ||
Receivable result | $ 1 | |
Payment received | 720,000 | |
Remaining balance paid | 280,000 | |
Creaurban s a member | ||
IfrsStatementLineItems [Line Items] | ||
Claim amount | $ 400 | |
Gains on litigation settlements | $ 580 |
Change of control (Details Narr
Change of control (Details Narrative) | Dec. 28, 2021 | Jun. 30, 2021 | Jun. 23, 2021 |
Pampa energia s a one member | |||
IfrsStatementLineItems [Line Items] | |||
Proportion of ownership interest | 100.00% | ||
Pampa energia s a member | |||
IfrsStatementLineItems [Line Items] | |||
Proportion of ownership interest | 51.00% | 51.00% | 51.00% |