AGEERA, a group of electric generators, sent a letter to Minister of Economy Luis Caputo refusing to pay Cammesa’s overdue debt with bonds that trade at half their value. The companies argued that the payment method affects their contractual rights and violates their right to private property.
In the note to Minister Caputo, AGEERA President Gabriel Baldassarrea outlined several reasons for rejecting the payment method, including its impact on their financial commitments and remuneration. The generators stated that the payment with bonds compromises the responsibilities of CAMMESA and the National State and affects legal certainty in the wholesale electricity market.
The total debt that Cammesa has with energy and oil generators amounts to $1.07 billion, which the Treasury will have to address. The companies argue that the contracts with CAMMESA were signed within investment promotion regimes, and any unilateral modification would have a strong impact on the electricity market and future investments. They find it unacceptable that the Government tied the payment of February debts to companies accepting payment of previous months’ debts through bonds when funds were available to pay them. Many generators have been forced to defer essential payments and maintenance, affecting operational continuity of the system.
In conclusion, AGEERA warned that situation not only affects their financial capabilities but also compromises normal development of their activity and critically impacts operational continuity of system. Their stance reflects concerns about impact of government’s payment method on electricity market and future investments urging for resolution upholding legal security and contractual rights.
