| REGULATORY FRAMEWORK | NOTE
2 REGULATORY FRAMEWORK
2.1 Generation 2.1.1
Generation units The
Company’s revenues related to this segment come from: i) sales contracts with large users within the MAT (Resolutions No. 1,281/06
and No. 281/17); ii) supply agreements with CAMMESA (Resolutions No. 220/07, No. 21/16, No. 287/17 and Renovar Programs) and iii) sales
to the Spot market pursuant to the provisions applicable within the WEM administered by CAMMESA (SE Resolution No. 31/20 as from February
2020, SE Resolution No. 440/21 as from February 2021, SE Resolution No. 238/22 as from February 2022 and SE Resolution No. 826/22 as
from September 2022). The Company’s generating units, held directly and through its subsidiaries and joint ventures, are detailed
below:
Schedule of generating units in operation
In operation as of 12.31.2022:
Generator Generating unit Tecnology Power Applicable regime (1)
CTG GUEMTG01 TG 100 MW Energy Plus Res. No. 1,281/06
CTG GUEMTV11 TV ≤100 MW Resolution No. 826/22
CTG GUEMTV12 TV ≤100 MW Resolution No. 826/22
CTG GUEMTV13 TV >100 MW Resolution No. 826/22
Piquirenda PIQIDI 01-10 MCI 30 MW Resolution No. 826/22
CPB BBLATV29 TV >100 MW Resolution No. 826/22
CPB BBLATV30 TV >100 MW Resolution No. 826/22
CT Ing. White BBLMD01-06 MCI 100 MW Resolution No. 21/16
CTLL LDLATG01/TG02/TG03/TV01 CC >150 MW Resolution No. 826/22
CTLL LDLATG04 TG 105 MW Res. No 220/07 (75%)
CTLL LDLATG05 TG 105 MW Resolution No. 21/16
CTLL LDLMDI01 MCI 15 MW Resolution No. 826/22
CTGEBA GEBATG01/TG02/TV01 CC >150 MW Resolution No. 826/22
CTGEBA GEBATG03 TG 169 MW Energy Plus Res. No. 1,281/06
CTGEBA GEBATG03/TG04/TV02 CC 400 MW Resolution No. 287/17
Ecoenergía CERITV01 TV 14 MW Energy Plus Res. N° 1,281/06
CT Parque Pilar PILBD01-06 MCI 100 MW Resolution No. 21/16
CTB EBARTG01 - TG02 TG >50 MW Resolution No. 826/22 (2)
HIDISA AGUA DEL TORO HI HI – Media 120<P≤300 Resolution No. 826/22
HIDISA EL TIGRE HR Renewable ≤ 50 Resolution No. 826/22
HIDISA LOS REYUNOS HB HB – Media 120<P≤300 Resolution No. 826/22
HINISA NIHUIL I - II - III HI HI – Small 50<P≤120 Resolution No. 826/22
HPPL PPLEHI HI HI – Media 120<P≤300 Resolution No. 826/22
P.E. M. Cebreiro CORTEO Wind 100 MW Renovar
PEPE II PAMEEO Wind 53 MW MATER Res. No. 281/17
PEPE III BAHIEO Wind 53 MW MATER Res. No. 281/17
PEPE IV BAHIEO Wind 18 MW MATER Res. No. 281/17
PE Arauco AR21EO Wind 99.75 MW Renovar
(1)
(2)
Schedule of generating units in construction
In construction:
Generator Tecnology Capacity Applicable regime
CTB CC 280 MW Resolution No. 220/07
PEPE IV Wind 63 MW MATER Res. No. 281/17
PEPE VI Wind 94.5 MW MATER Res. No. 281/17 2.1.2
Sales contracts with large users within the MAT 2.1.2.1
Energy Plus Aiming
to encourage new generation works, in 2006, the SE approved Resolution No. 1,281/06 in which established a specific regime which remunerates
newly installed generation sold to a certain category of Large Users at higher prices. The
Energy Plus service consists of the offer of additional generation availability by generators, co-generators and self-generators which,
as of the date of publication of SE Resolution No. 1,281/06, were not WEM agents or did not have facilities or an interconnection with
the WEM. Considering that:
- These
plants should have fuel supply and transportation facilities;
- The
energy used by GU300 in excess of the base demand (energy consumption for 2005 year) qualifies
for Energy Plus agreements within the MAT at a price negotiated between the parties; and
- For
new GU300 entering the system, their base demand will equal zero. If
a generator cannot meet the power demand by an Energy Plus customer, it should purchase that power in the market at the operated marginal
cost, or, alternatively, support the committed demand in case of unavailability through agreements with other Energía Plus generators. Currently,
the Company has Power Availability agreements in force with other generators whereby, in case of unavailability, it may purchase or sell
power to support the contracts mutually. Furthermore,
the SE, through Note No. 567/07, as amended, established that GU300 not purchasing their surplus demand in the MAT should pay the Average
Incremental Charge of Surplus Demand (“CMIDE”). As from the month of June 2018, pursuant to SE Note No. 28663845/18,
the CMIDE became the greater of $1,200/MWh or the temporary dispatch surcharge. Under
this regime, the Company —through its power plants Güemes, EcoEnergía and Genelba— sells its energy and power
capacity for a maximum amount of 283 MW. The values of Energy Plus contracts are mostly denominated in U.S. dollars. 2.1.2.2
Renewable Energy Term Market (“MATER” Regime) Pursuant
to Resolution No. 281/17, the MEyM regulated the MATER Regime with the purpose of setting the conditions for large users within the WEM
and WEM distributing agents’ large users covered by Section 9 of Law No. 27,191 to meet their demand supply obligation from renewable
sources through the individual purchase within the MATER from renewable sources or self-generation from renewable sources. Projects
destined to the supply of electric power from renewable sources under the MATER Regime may not be covered by other remuneration mechanisms,
such as the agreements under the Renovar rounds. Surplus energy is sold in the spot market. Finally,
contracts executed under the MATER Regime are administered and managed in accordance with the WEM procedures. The contractual terms —life,
allocation priorities, prices and other conditions, notwithstanding the maximum price set forth in Section 9 of Law No. 27,191—
are freely agreed between the parties, although the committed electricity volumes are limited by the electric power from renewable sources
produced by the generator or supplied by other generators or suppliers with which it has purchase agreements in place. Resolution
No. 370/22 was passed on May 16, 2022, which expanded the MATER system allowing for the sale of renewable energy under this system to
meet the GUDI and distribution utility company’s demand. Under
this resolution, the Company, through its PEPE II, III and IV wind farms, sells energy for up to 124 MW. Additionally, the Company has
started selling third-party generators’ renewable energy for an approximate volume of 2 MW. After
the fiscal year closing, took place the commissioning of 4 additional wind turbines with an incremental capacity of 18 MW. For further
information regarding PEPE IV project, see Note 17.1. 2.1.2.3
MATER dispatch priority SE
Resolution No. 551/21 published on June 16, 2021 modified the dispatch priority maintenance system established by Resolution No. 281/17.
Overall, it replaces the granting of a security for the maintenance of the dispatch priority by the payment of a quarterly installment
of US$ 500/MW until commissioning within the declared term or a maximum term of 24 months as from the priority assignment. It also
established certain conditions for obtaining an extension in the committed commissioning date, which, according to the project development
level and the requested extension term, requires a payment between 500 and 1,500 US$/MW/month. Additionally,
it allows projects with an assigned dispatch priority but not yet commissioned to continue their execution keeping the dispatch priority,
or to waive such priority, thus releasing the transmission capacity. The
Company, as owner of the Wind Farm project, located in Las Armas, Province of Buenos Aires, notified its decision to waive the timely
granted dispatch priority, and recovered the security it had provided. As a result, CAMMESA notified that the already initiated execution
of the security was determined to be moot as it had no further claim against the Company; therefore, as of September 30, 2021, the amount
of US$ 12.5 million recorded for to such effect was recovered and disclosed under the item “Other operating income” of the
Consolidated Statement of Comprehensive Income. Under
the MATER calls for tenders for the third quarter of 2021 and 2022, the Company was awarded a 36 MW and 41 MW dispatch priority, respectively,
for the expansion of the PEPE III wind farm. For further information on the extension project aforementioned, see Note 17.1. 2.1.3
Supply Agreements with CAMMESA 2.1.3.1
SE Resolution No. 220/07 Aiming
to encourage new investments to increase the generation offer, the SE passed Resolution No. 220/07, which empowers CAMMESA to enter into
220 Agreement with WEM Generating Agents for the energy produced with new equipment. These will be long-term agreements and the price
payable by CAMMESA should compensate for the investments made by the agent at a rate of return to be accepted by the SE. Within
the framework of this resolution, the Company has remunerated units under 220 agreements for 79 MW and 280 MW, through Loma la Lata thermal
power plant and as from the closing to combined cycle’s commissioning at Ensenada de Barragán thermal power plant, owned
by CTB, respectively (see Note 5.2.3). 2.1.3.2
SE Resolution No. 21/16 As
a result of the state of emergency in the national electricity sector, on March 22, 2016, the SE issued Resolution No. 21/16 calling
for parties interested in offering new thermal power generation capacity with the commitment to making it available through the WEM for
the 2016/2017 summer, 2017 winter, and 2017/2018 summer periods. For
the awarded projects, wholesale power purchase agreements were entered into with CAMMESA for a term of 10 years, with a remuneration
made up of the available power capacity price plus the variable non-fuel cost for the delivered energy and the fuel cost (if appropriate),
less penalties and fuel surpluses. Surplus power capacity is sold in the spot market. Pursuant
to this resolution, the Company, through its Loma de la Lata, Ingeniero White and Pilar thermal power plants, has effective agreements
with CAMMESA for the sale of energy and power capacity for a total 305 MW. 2.1.3.3
SE Resolution No. 287/17 On
May 10, 2017 the SE issued Resolution No. 287/17 launching a call for tenders for co-generation projects and the closing to CC over existing
equipment. The projects should have low specific consumption (lower than 1,680 kcal/kWh with natural gas and 1,820 kcal/kWh with alternative
liquid fuels), and the new capacity should not exceed the existing electric power transmission capacity; otherwise, the cost of the necessary
extensions will be borne by the bidder. Pursuant
to this regulation, the Company, through its Genelba thermal power plant, has entered into a wholesale power purchase agreement with
CAMMESA for the sale of energy and power capacity for a total 400 MW, for a term of 15 2.1.3.4
Renovar Programs In
order to meet the objectives, set by Law No. 26,190 and Law No. 27,191 promoting the use of renewable sources of energy, the MEyM called
for open rounds for the hiring of electric power from renewable sources (Renovar Programs, Rounds 1, 1.5 and 2) within the WEM. These
calls aimed to assign power capacity contracts from different technologies (wind energy, solar energy, biomass, biogas and small hydraulic
developments with a power capacity of up to 50 MW). For
the awarded projects, renewable electric power supply agreements were executed for the sale of an annual committed electric power block
for a term of 20 years. Additionally,
several measures were established to promote the construction of projects for the generation of energy from renewable sources, including
tax benefits (advance VAT reimbursement, equipment’s accelerated depreciation in the income tax, import duty exemptions, etc.)
and the creation of a fund for the development of renewable energies destined, among other objectives, to the granting of loans and capital
contributions for the financing of such projects. On
December 27, 2021, the SE passed Resolution No. 1,260/21 to address issues regarding the projects under the different Renovar rounds
that did not meet committed commissioning terms. Upon satisfaction of certain conditions, the resolution gives project awardees the option
to: i) terminate the current contract with CAMMESA against the payment of a sum of money; ii) amend the contract and extend the term
for commissioning against a reduction in the contract price and term; iii) commission the project for a power capacity lower than that
committed initially. Under
the Renovar programs, the Company, through Greenwind, has a supply contract in place with CAMMESA for a total of 100 MW, and in December
2022 it incorporated an additional 99.75 MW following the acquisition of Arauco wind farm (see Note 5.1.5). 2.1.3.5
RenMDI Call SE
Resolution No. 36/23 launched a national and international call for tenders to select renewable energy generation projects with a twofold
objective: i) the substitution of forced generation (line 1) and ii) the diversification of the energy matrix (line 2). The tender form
establishes the following maximum power capacities to be awarded: (i) 500 MW distributed among 6 regions for line 1 and (ii) 120 MW throughout
the national territory for line 2. The projects under line 2 will have no priority over other renewable projects. Projects
will be remunerated under a supply agreement executed with CAMMESA for a term of 15 years from the project’s commissioning. Until
commissioning, the tenderer will meet a payment scheme (an initial payment and quarterly payments), which will be allocated to a special
account to be administered by CAMMESA through the the “Electricity Supply Transportation Works Fund” trust (“FOTAE”)
for the transmission system’s expansion. The
tender submission deadline is April 27, 2023. As of the date of issuance of these Consolidated Financial Statements, Pampa is evaluating
the possibility of participating in the call. 2.1.3.6
Remuneration for combined cycles SE
Resolution No. 59/23 dated February 7, 2023 established an opt-in system under which combined cycles’ owners could execute an availability
and efficiency optimization agreement with CAMMESA. The agreement contemplates an availability commitment for 85 5 35 15 The
opt-in application form should be submitted to CAMMESA within a term of 90 calendar days. As of the date of issuance of these Consolidated
Financial Statements, the Company is currently evaluating the resolution. 2.1.4
Remuneration at the Spot market On
February 27, 2020, SE Resolution No. 31/20 was published in the BO, applicable as from February 2020, established remunerative items
based on technology and scale with prices in pesos and set an additional remuneration, in pesos, for the power capacity generated during
the hours of maximum thermal demand of the month, taking into consideration the average power capacity generated by thermal generators
and the average power capacity operated by hydroelectric generators. Besides,
SE Resolution No. 31/20 set a monthly remuneration update scheme with a factor contemplating a 60% CPI and 40% IPIM adjustment. However,
on April 8, 2020, through Note No. 2020-24910606-APN-SE#MDP, the SE instructed CAMMESA to postpone the application of this automatic
adjustment mechanism. On
May 19, 2021, SE Resolution No. 440/21 provided for a 29% increase in spot generation remuneration values, and repealed the automatic
adjustment mechanism established by SE Resolution No. 31/20. In
November 2021, SE Resolution No. 1,037/21, instrumented through Note NO-2021-108163338-APN-SE#ME, provided for an additional transitional
remuneration for generated energy and suspended the application of the utilization factor for economic transactions comprised between
September 1, 2021 and February 28, 2022. On
April 21, 2022, SE Resolution No. 238/22 was published in the BO. This resolution provided a 30% increase in spot generation remuneration
values from the February 2022 economic transaction, and an additional 10% increase from the June 2022 economic transaction. It also abrogated
the application of the utilization factor and the additional transitional remuneration set by SE Resolution No. 1,037/21. On
December 14, 2022, through SE Resolution No. 826/22, the spot remuneration values were modified considering the following increases:
i) 20 10 25 28 Additionally,
SE Resolution No. 826/22 replaced the remuneration scheme at hours of maximum thermal demand with a differentiated remuneration scheme
at peak hours from the November 2022 economic transaction. The
applicable remunerations, based on technology and resolution, are detailed below. The amounts reported under SE Resolution No. 238/22
and SE Resolution No. 826/22 correspond to tariffs applicable from the June 2022 and December 2022 economic transactions, respectively. 2.1.4.1
Remuneration for Available Power Capacity 2.1.4.1.1
Thermal Power Generators A
minimum remuneration for power capacity based on technology and scale was established, and generating, co-generating and self-generating
agents owning conventional thermal power plants were allowed to offer guaranteed availability commitments for the energy and power capacity
generated by their units and not committed under sales contracts with large users within the MAT and supply agreements with CAMMESA. Availability
commitments are tendered for quarterly periods: a) summer (December through February); b) winter (June through August) and c) ‘other,’
which comprises two quarters (March through May, and September through November), the thermal generators’ remuneration for committed
power capacity being proportional to their compliance. The
minimum remuneration for generators with no availability commitments includes the following scales and prices:
Schedule of minimum remuneration to thermal generators
Technology
/ Scale SE
No. 31/20 ($
/ MW-month) SE
No. 440/21 ($
/ MW-month) SE
No. 238/22 ($
/ MW-month) SE
No. 826/22 ($
/ MW-month)
Large CC Capacity
> 150 MW 100,650 129,839 185,670 245,084
Large TV Capacity
> 100 MW 143,550 185,180 264,807 349,546
Small TV Capacity
≤ 100 MW 171,600 221,364 316,551 417,847
Large
GT Capacity > 50 MW 117,150 151,124 216,107 285,262 The
remuneration for guaranteed power capacity to generators with availability commitments is:
Schedule of remuneration for thermal generators with guaranteed power capacity
Period SE
No. 31/20 ($
/ MW-month) SE
No. 440/21 ($
/ MW-month) SE
No 238/22 ($
/ MW-month) SE
No 826/22 ($
/ MW-month)
Summer
– Winter 360,000 464,400 664,092 876,601
Fall
- Spring 270,000 348,300 498,069 657,451 In
the case of thermal power plants with a power capacity equal to or lower than 42 MW in total, a differential remuneration was applied
until its elimination on August 2022. In
the same way, a coefficient derived from the average utilization factor over the unit’s last twelve months was applied to the power
capacity remuneration: with a minimum 70% of the utilization factor, 100% of the power capacity payment is collected; if the utilization
is between 30% and 70%, the power capacity payment ranges from 70% to 100%; and if the utilization factor is lower than 30%, 70% of the
power capacity payment was collected until January 2020 and 60% of the power capacity payment is collected as from February 2020. The
application of this factor was suspended in 2021 and finally abrogated from February 2022 (see Note 2.1.4.3). For
the February 2020 to October 2022 period, an additional remuneration for the hours of maximum thermal requirement of the month (hmrt)
was established, which corresponds to the 50 hours with the largest dispatch of thermal generation of each month divided into two blocks
of 25 hours each, applying the following prices to the average generated power:
Schedule of additional remuneration to thermal generators
Period SE
No. 31/20 SE
No. 440/21 SE
No. 238/22
First
25 hours ($
/ MW-hmrt) Second
25 hours ($
/ MW-hmrt) First
25 hours ($
/ MW-hmrt) Second
25 hours ($
/ MW-hmrt) First
25 hours ($
/ MW-hmrt) Second
25 hours ($
/ MW-hmrt)
Summer
– Winter 45,000 22,500 58,050 29,025 83,012 41,506
Fall
- Spring 7,500 - 9,675 - 13,835 - 2.1.4.1.2
Hydroelectric Generators Power
capacity availability is determined independently of the reservoir level, the contributions made, or the expenses incurred. Furthermore,
in the case of pumping hydroelectric power plants, the operation as turbine and pump is considered to calculate availability. The
base remuneration includes the following scales and prices:
Schedule of hydroelectric generators by technology and scales values
Technology
/ Scale SE
No. 31/20 ($
/ MW-month) SE
No. 440/21 ($
/ MW-month) SE
No. 238/22 ($
/ MW-mes) SE
No. 826/22 ($
/ MW-mes)
Medium HI Capacity
> 120 ≤ 300 MW 132,000 170,280 243,500 321,421
Small HI Capacity
> 50 ≤ 120 MW 181,500 234,135 334,813 441,953
Medium Pumped HI Capacity
> 120 ≤ 300 MW 132,000 170,280 243,500 321,421
Renewable
HI Capacity ≤ 50 MW 297,000 383,130 547,876 723,196 The
payment for power capacity is determined by the actual capacity, hours of unavailability due to programmed and/or agreed maintenance
are not computed for the calculation of the remuneration. However, to consider the incidence of programmed maintenance works in power
plants, SME Note No. 46631495/19 provided for the application of a 1.05 factor over the power capacity payment. In
the case of hydroelectric power plants maintaining control structures on river courses and not having an associated power plant, a 1.20
factor is applied to the plant at the headwaters. Furthermore,
for the February 2020 to October 2022 period, an additional remuneration was set for the hours of maximum thermal demand (hmrt), corresponding
to the 50 hours with the largest dispatch of thermal generation in each month, divided into two blocks of 25 hours each: Generation
units > 50 MW and ≤ 300 MW
Schedule of hydroelectric generators by technology and scales values
Period SE
No. 31/20 SE
No. 440/21 SE
No. 238/22
First
25 hours ($
/ MW-hmrt) Second
25 hours ($
/ MW-hmrt) First
25 hours ($
/ MW-hmrt) Second
25 hours ($
/ MW-hmrt) First
25 hours ($
/ MW-hmrt) Second
25 hours ($
/ MW-hmrt)
Summer
– Winter 39,000 19,500 50,310 25,155 71,943 35,972
Fall
- Spring 6,500 - 8,385 - 11,991 - Generation
units ≤ 50 MW
Period SE
No. 31/20 SE
No. 440/21 SE
No. 238/22
First
25 hours ($
/ MW-hmrt) Second
25 hours ($
/ MW-hmrt) First
25 hours ($
/ MW-hmrt) Second
25 hours ($
/ MW-hmrt) First
25 hours ($
/ MW-hmrt) Second
25 hours ($
/ MW-hmrt)
Summer
– Winter 42,000 21,000 54,180 27,090 77,478 38,739
Fall
– Spring 7,000 - 9,030 - 12,913 - 2.1.4.2
Remuneration for generated and operated energy In
the case of thermal power generators, a remuneration was set for generated energy, depending on the type of fuel used, and for operated
energy, as shown below:
Generated and operated energy termal units remuneration
Remuneration SE
No. 31/20 ($
/ MWh) SE
No. 440/21 ($
/ MWh) SE
No. 238/22 ($
/ MWh) SE
No. 826/22 ($
/ MWh)
Generated
energy Between
240 and 420 Between
310 and 542 Between
403 and 705 Between
585 and 1,023
Operated
energy 84 108 154 204 It
is worth highlighting that if the thermal generation unit operates outside its optimal dispatch, the remuneration for generated energy
will be recognised at 60% of the installed net capacity, irrespective of the energy delivered by the unit. In
the case of hydroelectric plants, the following prices were established for generated and operated energy, irrespective of scale:
Generated and operated energy hydroelectic units remuneration
Remuneration SE
No. 31/20 ($
/ MWh) SE
No. 440/21 ($
/ MWh) SE
No. 238/22 ($
/ MWh) SE
No. 826/22 ($
/ MWh)
Generated
energy 210 271 388 512
Operated
energy 84 108 154 204 The
remuneration for operated energy should correspond with the grid’s optimal dispatch; however, the current resolution does not indicate
which would be the consequence otherwise. In
the case of pumping hydroelectric power plants, both the generated energy and that used for pumping are considered. Besides, if it works
as a synchronous condenser, 60 $/MVAr, and 77 $/MVAr, 110 $/MVAr and 145 $/MVAr are recognised under SE Resolution No. 31/20, and No.
440/21, No. 238/22 and No. 826/22, respectively, for the megavolt-amperes exchanged with the grid when required, in addition to the prices
for operated energy. As
from November 2022, a differentiated remuneration scheme applicable to thermal and hydroelectric generators for generated energy at peak
hours, was established with a remuneration equivalent to twice the value of the generated energy’s current price at peak hours
(18:00 to 23:00) every day in the months of December, January, February, June, July and August, and to one time that value for the same
hours in the months of March, April, May, September, October and November. As
regards energy generated from unconventional sources, a single remuneration value was set irrespective of the source used:
Unconventional sources remuneration
Remuneration SE
No. 31/20 ($
/ MWh) SE
No. 440/21 ($
/ MWh) SE
No. 238/22 ($
/ MWh) SE
No. 826/22 ($
/ MWh)
Generated
energy 1,680 2,167 3,099 3,719 Energy
generated before commissioning by the Agency in Charge of Dispatch, will be remunerated at 50% of the above-mentioned remuneration. 2.1.4.3
Transitory additional remuneration On
November 2, 2021, SE Resolution No. 1,037/21 provided as follows: (i) the creation of an exports account in the WEM’s stabilization
fund for the accumulation of income from electricity export transactions conducted by CAMMESA, as from the economic transactions for
the month of September 2021, for the financing of energy infrastructure works; and (ii) the transitory recognition of an additional remuneration
to the one established by SE Resolution No. 440/21 for the economic transactions comprised between September 1, 2021 and February
28, 2022. On November 9, 2021, the SE, through Note NO-2021-108163338-APN-SE#ME, instructed CAMMESA to assume that covered generators
have a 70% utilization factor, therefore, 100% of the power capacity remuneration would be paid, and added an amount of $ 1,000/MWh for
exported energy, which will be distributed proportionately to the energy generated monthly by each generator. SE
Resolution No. 238/22 canceled the detailed additional and transitory remuneration from the February 2022 economic transaction. 2.1.4.4
Suspension of contracts within the MAT The
suspension of contracts within the MAT (excluding those derived from a differential remuneration scheme) provided for by SE Resolution
No. 95/13 remains in effect. 2.1.5
Fuel supply for thermal power plants On
December 27, 2019, the Ministry of Productive Development Resolution No. 12/19, restored the centralized scheme in CAMMESA for the supply
of fuels for generation purposes (except for generators under the Energy Plus regime and with Wholesale Power Purchase Agreements under
Resolution SE No. 287/17). In
December 2020, on account of the implementation of the GasAr Plan (see Note 2.2.4.1.2), SE Resolution No. 354/20 was passed, which
established a new dispatch order for generation units based on the fuel supplied for their operation under a centralized dispatch scheme. SE
Resolution No. 354/20 established the gas volumes CAMMESA should prioritize in the electricity dispatch. In this sense, firm volumes
to be used by CAMMESA were defined, including: i) volumes corresponding to contracts entered into by CAMMESA with producers acceding
to the GasAr Plan; ii) volumes corresponding to contracts executed by adherent producers with generators acceding to the centralized
dispatch (these volumes will be discounted by the adherent producers from the applicable quota for which they should enter into contracts
with CAMMESA under the GasAr Plan) and; iii) volumes to meet the Take or Pay (“TOP”) obligations under the supply agreement
entered into between IEASA and Yacimientos Petrolíferos Fiscales Bolivianos (“YPFB”). Besides,
an electricity dispatch priority scheme was set based on the allocation of the natural gas quota taking into consideration the TOP obligations.
To this effect, the following priorities were set (within each priority level, the order of agents is set based on the generator’s
production cost):
(i) Dispatch
Priority 1: Generators, Self-generators and/or Co-generators supplied with a natural gas
quota under a TOP Bolivia condition assigned by IEASA. If a generator with a fuel stocking
obligation optionally acquires from IEASA natural gas from Bolivia, this volume will be included
in this quota.
(ii) Dispatch
Priority 2: Generators, Self-generators and/or Co-generators supplied by CAMMESA with a natural
gas quota from the centralized list of volumes up to the TOP of each contract.
(iii) Dispatch
Priority 3: Generators, Self-generators and/or Co-generators supplied by CAMMESA with a natural
gas quota from the centralized list of volumes for the Daily Maximum Amount (DMA) less those
corresponding to the TOP of each contract.
(iv) Dispatch
Priority 4: Generators, Self-generators and/or Co-generators supplied by CAMMESA with natural
gas or LNG coming from other firm commitments undertaken by CAMMESA.
(v) Dispatch
Priority 5: Generators, Self-generators and/or Co-generators supplied with a gas quota from
the unassigned, spot natural gas contracts from any source, acquired by CAMMESA and/or the
Generator, according to the supply source. In the case of a generator with its own fuel,
the maximum amount to be acknowledged will be the corresponding reference prices. As
regards the costs associated with the supply of these fuels, it was established that the electricity demand will bear, among others,
the regulated transportation costs, the cost of natural gas and the applicable TOP obligations. Generating
agents that kept the possibility to purchase their fuel supply (agents under the Energy Plus regime or with Wholesale Purchase Agreements
under Resolution SE No. 287/17) could opt in or out of CAMMESA’s unified dispatch, through the operating assignment of the contracted
firm transportation and gas volumes, which impact the assigned priority order. Under such assignment, agents should waive all claims
regarding the application of SE Resolution No. 354/20. In
the specific case of generators with wholesale power purchase agreements under SE Resolution No. 287/17, it was provided that they would
have the option of canceling the self-supply obligation and the resulting recognition of its associated costs, having to maintain the
respective transportation capacity for its management in the centralized dispatch. The
Company assigned the firm transportation and gas volumes committed to supplying Genelba Plus’ CC and Energy Plus contracts, setting
certain guidelines for calculating fuel costs to support its Energy Plus contracts. In the case of the supply to Genelba Plus’
CC, the assignment will remain effective during the life of the GasAr Plan, and it may be revoked by the generator with a minimum advance
notice of 30 business days. Within this framework, the parties agreed to enter into an addendum to the Wholesale Power Purchase Agreement
to establish the modifications regarding this new supply scheme, which execution is pending as of the issuance of these Consolidated
Financial Statements.
2.2 Oil
and gas 2.2.1
Argentine Hydrocarbons Law On
October 29, 2014, the National Congress enacted Law No. 27,007 amending Hydrocarbons Law No. 17,319 (enacted in 1967), which empowers
the Government to grant exploration permits and concessions to the private sector. Additionally:
(i) Sets
the terms for exploration permits:
- Conventional
exploration
- Unconventional
exploration
- Continental
shelf and off-shore exploitation
(ii) Sets
the terms for exploitation concessions, extensible for 10-year terms:
- Conventional
exploitation concession
- Unconventional
exploitation concession
- Continental
shelf and off-shore exploitation concession
(iii) Sets
transportation concessions will be granted for the same term than that granted for the originating
exploitation concession.
(iv) Sets
prices for payments of exploration and exploitation levy and empowers the enforcement authority
to establish the payment of extension and exploitation bonds.
(v) Establishes
a 12% royalty payable by the exploitation concessionaire to the grantor on the proceeds derived
from liquid hydrocarbons extracted at wellhead and the production of natural gas. In the
case of extension, additional royalties for up to 3% over the applicable royalties at the
time of the first extension, up to a total of 18%, will be paid for the following extensions.
(vi) Provides
for two types of non-binding commitments between the National Government and the Provinces
aiming to establish a uniform environmental legislation and to adopt a uniform tax treatment
to encourage hydrocarbon activities.
(vii) Restricts
the National Government and the Provinces from re |
