MINISTERY OF ECONOMY

SECRETARIAT OF ENERGIA AND COMBUSTIBLE

Decree No. 10.447/1964

He is authorized to perform attempts with the Italo Argentina Electricity Company S. A., to give effect to a unified national exploitation of the public electricity service in Gran Buenos Aires.

Bs. As., 30/12/64.

VISTO the situation in which the Italo Argentina Electricity Company S. A. (CIAE) is located, in its capacity as a public electricity service provider in Gran Buenos Aires,
and

CONSIDERING:

That the Company has difficulty in fulfilling the first stage of the construction plan, in accordance with the obligation under the concession contract approved by the National Government on 30 June 1961, to the extent that the National Directorate of Energy and Fuels, in the use of legal powers, has seen the need to take punitive measures with respect to CIAE;

That this Company has repeatedly expressed difficulties in having the necessary credits to deal with investments in implementation and, consequently, comply with the obligations inherent in the expansion of its facilities;

That CIAE has requested on various occasions that the State grant it its guarantee on the loans it requests abroad, for the purchase of materials and equipment necessary for the extensions it must carry out in accordance with its contractual obligations;

That CIAE has requested to postpone for two years the installation of a turbo generator of 200.000 KW of power, because it has been found, according to the Company's own manifestations, that the demand for energy is lower than that which was assumed at the time of the discussion of the new concession contract, and that a greater investment of unproductive capital would, as a logical consequence, bring an increase in the rates with the consequential damages for the mass of consumers;

That these arguments are made by CIAE considering their production and distribution system independent, against the technical-economic reality, that there is a rational, organic, economic and therefore unified exploitation of all the electrical systems of the Great Buenos Aires;

While there is the possibility of an exchange of energy between SEGBA and CIAE generation centres, the distribution systems of both companies are largely overlapping, resulting in a waste policy, which should not only be encouraged, as there is no real competition, but should be corrected for the benefit of the users ' economy;

That the concession contract with CIAE is expected that when the State resolves to take over the provision of the public electricity service, it will notify the Company at least three years in advance, which in the present circumstances and given the reasons stated would not allow for the necessary rational exploitation of the service in the short term required;

For all this and the proposal of the Secretary of State for Energy and Fuel,

The President of the Argentine Nation,

Decrete:

Article 1. - Authorize the State Secretariat for Energy and Fuels to carry out trades with CIAE, aimed at ensuring, as soon as possible, a unified rational exploitation of the public electricity service throughout the Gran Buenos Aires.

Art. 2°. - This decree will be endorsed by the Minister Secretary in the Department of Economics and signed by the Secretaries of State of Energy and Fuel and Finance.

Art. 3. - Communicate, publish, give to the General Directorate of the Official Gazette and Prints and archvese.

ILLIA. - Juan C. Pugliese. - Antulio F. Pozzio. - Carlos A. García Tudero.