Electricity Generators Refuse to Pay Cammesa’s Debt, Citing Contractual and Financial Concerns
The electric generators, who belong to the AGEERA association, have refused to pay Cammesa’s overdue debt with bonds that are worth only half their original value. The ministry of economy published Resolution 58/2024 on Wednesday, which resolved the outstanding payment for December and January by issuing a bond AE38, representing a 50% reduction in the debt owed by the government to electricity producers and gas suppliers. However, AGEERA disagrees with the payment method, claiming that it violates their contractual rights and property rights.
In a letter to Minister Luis Caputo, AGEERA President Gabriel Baldassarrea outlined several reasons why they rejected the payment method. He argued that it affected their financial commitments and reduced their remuneration. The generators stated that using bonds as payment compromised CAMMESA’s responsibilities and legal certainty in the wholesale electricity market. They also pointed out that the total debt owed to energy and oil producers is $1.07 billion, which will be difficult for the treasury to address.
The companies argued that they signed contracts with CAMMESA within investment promotion regimes, and any unilateral modification would have a significant impact on the electricity market and future investments. They found it unacceptable that the government tied payments for February debts to companies accepting payment for previous months’ debts through bonds when funds were available to do so directly. Many generators had been forced to defer essential payments and maintenance due to this policy, affecting their operational continuity.
In conclusion, AGEERA warned that this situation not only affects their financial capabilities but also compromises normal development of their activity and critically affects operational continuity of system. Their stance reflects concerns about government’s payment method on electricity market and future investments, urging for a resolution upholding legal security and contractual rights of generators.
