EMPRESA DISTRIBUIDORA Y COMERCIMIZADORA NORTE SOCIEDAD ANónima (EDN): Analyse Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique du secteur de l'énergie argentin, Empresa Distribuidora y Comercializadora norte Sociedad Anónima (EDN) navigue dans un réseau complexe de défis et d'opportunités. Cette analyse complète du pilon dévoile les forces complexes qui façonnent les décisions stratégiques de l'entreprise, des environnements politiques volatils aux innovations technologiques et aux pressions environnementales. Plongez dans une exploration nuancée de la façon dont l'EDN confronte les défis multiformes de la distribution de l'électricité dans le nord de l'Argentine, où les incertitudes économiques, les changements de réglementation et les transformations technologiques se croisent pour définir la résilience et le potentiel de la croissance durable de l'entreprise.

EMPRESA DISTRIBUIDORA Y COMERCIMIZADORA NORTE SOCIEDAD ANónima (EDN) - Analyse du pilon: Facteurs politiques

Environnement réglementaire de l'Argentine pour les politiques de distribution d'électricité

Le secteur de l'électricité argentin est régi par la loi 24 065, qui a établi le cadre réglementaire pour la distribution de l'électricité. Depuis 2024, le Ente Nacional Regulador de la Electricidad (Enre) supervise les politiques de distribution de l'électricité.

Aspect réglementaire	État actuel	Impact sur EDN
Règlement sur les tarifs électriques	Contrôlé par décret gouvernemental	Impact direct sur les sources de revenus
Concessions de distribution de l'électricité	Renouvelé jusqu'en 2034	Fournit une stabilité opérationnelle à long terme

Subventions gouvernementales et contrôle des prix

Le gouvernement argentin maintient une intervention importante dans les mécanismes de tarification de l'électricité.

• Budget de subvention en électricité pour 2024: 1,2 billion de pesos argentins
• Le mécanisme de contrôle des prix affecte 68% des tarifs de la distribution d'électricité
• Mécanisme de rémunération du gouvernement pour les sociétés de distribution: environ 35% des coûts opérationnels

Instabilité politique dans l'investissement du secteur de l'énergie

La volatilité politique influence directement la dynamique des investissements du secteur de l'énergie.

Indicateur politique	2024 Mesure
Indice de risque politique pour le secteur de l'énergie	5.2 sur 10
Investissement direct étranger dans le secteur de l'énergie	1,3 milliard USD

Politiques de privatisation du secteur de l'énergie

Le gouvernement actuel maintient une approche mixte de la propriété du secteur de l'énergie.

• Pourcentage de propriété de l'État dans la distribution de l'électricité: 42%
• Participation du secteur privé: 58%
• Considérations potentielles de privatisation partielle: sous évaluation

EMPRESA Distribuidora y Comeralizadora norte Sociedad Anónima (EDN) - Analyse du pilon: facteurs économiques

Les taux d'inflation élevés en Argentine défient la planification financière

Le taux d'inflation de l'Argentine atteint 142.7% En décembre 2023, créant des défis économiques importants pour l'EDN. L'environnement hyperinflationniste a un impact sur les coûts opérationnels et les prévisions financières.

Année	Taux d'inflation	Impact sur EDN
2022	95.4%	Augmentation des dépenses opérationnelles
2023	142.7%	Des défis de planification financière importants

Fluctuation des taux de change d'équipement d'impact et de coûts de maintenance

Le peso argentin s'est déprécié 47.5% Contre le dollar américain en 2023, augmentant considérablement les frais d'importation et de maintenance des équipements.

Métrique de la devise	Valeur 2023	Impact sur EDN
Taux de change peso / USD	ARS 1 000 = 1 USD	Coûts d'approvisionnement plus élevés
Dépréciation de la monnaie	47.5%	Augmentation des frais de maintenance

La récession économique peut réduire la consommation d'électricité

Le PIB d'Argentine a contracté par 2.5% En 2023, réduisant potentiellement la demande d'électricité pour le réseau de distribution d'EDN.

Indicateur économique	Valeur 2023	Conséquence potentielle
Croissance du PIB	-2.5%	Diminution de la consommation d'électricité
Production industrielle	-4.2%	Réduction de la demande d'énergie

Accès limité aux marchés des capitaux internationaux pour l'investissement des infrastructures

EDN est confronté à des défis dans la garantie du financement international avec la cote de crédit souverain d'Argentine à Ccc-, limiter les capacités d'investissement des infrastructures.

Métrique financière	Valeur 2023	Implication d'investissement
Cote de crédit souverain	Ccc-	Financement international restreint
Investissement direct étranger	4,2 milliards USD	Capital d'infrastructure minimal

EMPRESA DISTRIBUIDORA Y COMERCIMIZADORA NORTE SOCIEDAD ANónima (EDN) - Analyse du pilon: Facteurs sociaux

La population urbaine croissante augmente la demande d'électricité

Selon l'Institut national des statistiques et le recensement de l'Argentine (INDEC), la population urbaine du nord de l'Argentine a atteint 3 756 421 habitants en 2022, avec un taux de croissance démographique de 1,2% par an.

Région	Population urbaine	Taux de croissance annuel	Augmentation de la consommation d'électricité
Northern d'Argentine	3,756,421	1.2%	4.3%

Sensibilisation à la hausse des préférences des énergies renouvelables

Une enquête en 2023 du Secrétariat de l'énergie argentin a révélé que 62% des consommateurs du nord de l'Argentine préfèrent les sources d'énergie renouvelables.

Préférence de la source d'énergie	Pourcentage
Énergie solaire	38%
Énergie éolienne	24%

Attentes sociales pour les services énergétiques fiables et durables

Les enquêtes sur la satisfaction des clients en 2023 ont indiqué que 78% des clients d'EDN priorisent la fiabilité et la durabilité des services.

Priorité de service	Pourcentage de clientèle
Fiabilité du service	45%
Durabilité énergétique	33%

Les changements démographiques dans le nord de l'Argentine affectent les modèles de consommation d'énergie

Les données INDEC montrent des changements démographiques importants ayant un impact sur la consommation d'énergie:

Catégorie démographique	Population	Impact de la consommation d'énergie
Population d'âge de travail (20-65)	2,145,678	Demande d'énergie élevée
Jeune population (0-19)	1,087,543	Demande d'énergie modérée
Population âgée (65+)	523,200	Basse demande d'énergie

EMPRESA DISTRIBUIDORA Y COMERCIMIZADORA NORTE SOCIEDAD ANónima (EDN) - Analyse du pilon: Facteurs technologiques

Implémentation progressive des technologies de réseau intelligent

EDN a investi 12,5 millions USD dans le développement des infrastructures de réseau intelligent en 2023-2024. La mise à niveau technologique de l'entreprise comprend le déploiement de 87 000 points de terminaison de réseau intelligent sur son territoire de service.

Investissement technologique	Montant (USD)	Chronologie de la mise en œuvre
Infrastructure de grille intelligente	12,500,000	2023-2024
Points de terminaison de la grille intelligente	87,000	En cours

Augmentation des plateformes de mesure numérique et de service client

Pénétration de la mesure numérique: 62,4% de la clientèle d'EDN utilise désormais une infrastructure de comptage numérique avancée. La société a alloué 5,3 millions USD pour l'amélioration de la plate-forme de service client numérique en 2024.

Métrique de service numérique	Pourcentage / montant
Pénétration de la mesure numérique	62.4%
Investissement de plate-forme numérique	5 300 000 USD

Investissements potentiels dans les infrastructures d'énergie renouvelable

EDN a commis 35,7 millions USD dans le développement des infrastructures d'énergie renouvelable. Les investissements prévus comprennent:

• Intégration de l'énergie solaire: 22,4 millions USD
• Infrastructure d'énergie éolienne: 8,6 millions USD
• Systèmes de stockage de batteries: 4,7 millions USD

Segment d'énergie renouvelable	Investissement (USD)
Énergie solaire	22,400,000
Énergie éolienne	8,600,000
Stockage de batterie	4,700,000

Défis de cybersécurité dans les systèmes de distribution d'énergie

L'EDN a prévu 4,2 millions USD pour les améliorations de la cybersécurité en 2024. La société rapporte 237 tentatives de cyber-intrusions en 2023, avec un taux de prévention de 99,6%.

Métrique de la cybersécurité	Valeur
Investissement en cybersécurité	4 200 000 USD
Tentatives de cyber-intrusion (2023)	237
Taux de prévention des intrusions	99.6%

EMPRESA DISTRIBUIDORA Y COMERCIMIZADORA NORTE SOCIEDAD ANónima (EDN) - Analyse du pilon: Facteurs juridiques

Conformité aux cadres de réglementation nationale de l'électricité

EDN opère sous la juridiction légale du cadre de réglementation de l'électricité argentine, spécifiquement régi par la résolution SE 95/2013 et la résolution SE 250/2013. L'entreprise doit adhérer aux mesures de conformité réglementaire suivantes:

Aspect réglementaire	Exigence de conformité	Métrique spécifique
Licence de distribution d'électricité	Permis de fonctionnement valide	Résolution Enre 0343/2019
Normes techniques	Indicateurs de qualité de service	ENRE Résolution 2/2014
Réglementation tarifaire	Mécanisme de tarification réglementé	Mis à jour annuellement par Enre

Exigences légales en cours pour les normes de qualité des services

EDN doit maintenir des indicateurs de performance de qualité de service spécifiques, comme le remplies par la réglementation nationale de l'électricité:

Indicateur de qualité	Seuil maximum admissible	Plage de pénalité
Durée d'interruption	6,5 heures / mois	ARS 500 000 - ARS 2 000 000
Fréquence des interruptions	4 interruptions / mois	ARS 750 000 - ARS 3 000 000
Pourcentage de pertes techniques	Maximum 8,5%	Sanctions réglementaires

Mandats de conformité environnementale

EDN doit se conformer aux réglementations environnementales, notamment:

• Loi 25 675 Droit de l'environnement général
• Résolution 108/2021 Évaluation de l'impact environnemental
• Décret 481/2003 Intégration d'énergie renouvelable

Zone de conformité environnementale	Norme de réglementation	Exigence de conformité
Émissions de carbone	Résolution Tayds 1639/2021	Objectif de réduction: 15% d'ici 2025
Intégration d'énergie renouvelable	Loi 27,191	Portfolio d'énergie renouvelable à 8%
Gestion des déchets	Résolution 177/2007	Protocoles d'élimination certifiés

Changements de réglementation potentiels dans les mécanismes de tarification de l'électricité

Cadre de prix d'électricité actuel basé sur les résolutions ENRE 419/2017 et SE 366/2018:

Composant de tarification	État réglementaire actuel	Indicateur de changement potentiel
Structure tarifaire de base	Indexé trimestriel	Haute probabilité de modification
Mécanisme de subvention	Subvention du gouvernement partiel	Réduction potentielle d'ici 2025
Subvention transversale	Schéma résidentiel / industriel actif	Sous-révisé par Enre

EMPRESA DISTRIBUIDORA Y COMERCIMIZADORA NORTE SOCIEDAD ANónima (EDN) - Analyse du pilon: Facteurs environnementaux

Pression croissante pour réduire les émissions de carbone

Les émissions nationales de carbone de l'Argentine étaient de 366,3 millions de tonnes métriques CO2 équivalent en 2022. Le secteur de la production d'électricité d'EDN contribue à environ 18,7% de ces émissions nationales.

Source d'émission	Émissions annuelles de CO2 (tonnes métriques)	Pourcentage du total
Production d'électricité	68,5 millions	18.7%
Transport	92,3 millions	25.2%
Processus industriels	55,4 millions	15.1%

Transition progressive vers l'intégration des énergies renouvelables

La capacité des énergies renouvelables de l'Argentine a atteint 12,4% de la production totale d'électricité en 2023, la puissance éolienne représentant 7,2% et l'énergie solaire représentant 3,1%.

Type d'énergie renouvelable	Capacité installée (MW)	Pourcentage de la génération totale
Énergie éolienne	3 245 MW	7.2%
Énergie solaire	1 402 MW	3.1%
Hydro-électrique	11 300 MW	25.3%

Le changement climatique a un impact sur la résilience aux infrastructures

L'Argentine a subi des dommages aux infrastructures estimés à 2,3 milliards de dollars en 2022 en raison d'événements météorologiques extrêmes, avec une vulnérabilité des infrastructures électriques à 37,6%.

Type d'infrastructure	Coût des dégâts (USD)	Pourcentage de vulnérabilité
Réseau électrique	865 millions de dollars	37.6%
Transport	412 millions de dollars	17.9%
Gestion de l'eau	325 millions de dollars	14.1%

Exigences réglementaires croissantes pour les pratiques énergétiques durables

Le gouvernement de l'Argentine oblige un objectif d'énergie renouvelable de 20% d'ici 2025, avec des pénalités financières potentielles de non-conformité estimées à 0,5 à 2% des revenus annuels pour les sociétés énergétiques.

Exigence réglementaire	Année cible	Range de pénalité potentielle
Quota d'énergie renouvelable	2025	0,5 à 2% des revenus annuels
Réduction des émissions de carbone	2030	1 à 3% des revenus annuels

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) - PESTLE Analysis: Social factors

You're looking at Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) and the social environment is a tightrope walk. The core takeaway is this: EDN is finally getting the necessary tariff increases to stabilize its financials, but that progress is directly creating a significant social and political risk, primarily through public pushback and persistent non-payment issues.

The company is making operational improvements, which is good, but the public perception is defintely lagging behind the reported metrics. You need to map the financial gains from the new tariffs against the social cost of higher non-payment risk and regulatory scrutiny over service quality.

Public resistance to necessary tariff increases remains a key hurdle

The government's move to restore economic equilibrium for utilities like Empresa Distribuidora y Comercializadora Norte has been a financial boon, yet it's the primary source of social friction. Since the February 2024 319.2% nominal transitory tariff adjustment, followed by average monthly increases of 4% since August 2024, the public has absorbed a massive cost shock.

The new Five-Year Tariff Review (2025-2029), approved in May 2025, continues this trend, granting a further 14.35% increase over inflation, applied gradually. The regulator is trying to soften the blow by phasing it in: a 3% increase in May 2025, followed by monthly adjustments of 0.42% until November 2027. This gradualism is a direct acknowledgment of potential social unrest and resistance to higher utility bills, especially when compounded by high inflation in Argentina.

High rate of non-payment and arrears, particularly in lower-income areas

The immediate fallout from these steep increases is visible in the company's accounts receivable. While the tariff normalization is boosting revenue, it is simultaneously stressing household budgets, leading to higher arrears.

As of the end of the first quarter of 2025 (1Q25), the company reported a collectability rate of 95.38%. Here's the quick math: that means the non-payment rate is a persistent 4.62% of billed revenue. This resulted in an accrued bad debt of ARS 56,831 million as of March 31, 2025. That's a massive figure that must be provisioned against, directly impacting net profit despite the operational improvements.

• Collectability (1Q25): 95.38%
• Non-Payment Rate: 4.62%
• Accrued Bad Debt (1Q25): ARS 56,831 million

Managing this arrears balance is a constant drain on cash flow and requires sophisticated, and often politically sensitive, collection strategies in the lower-income areas of the concession zone.

Customer service quality perception is low due to frequent service interruptions

Even with substantial capital expenditure (CapEx) aimed at network modernization, the legacy of poor service quality remains a major public relations hurdle. The public's perception is that they are paying much more for a service that is still unreliable.

The National Electricity Regulatory Entity (ENRE) itself confirmed the problem by demanding a 40% to 50% reduction in the duration and frequency of power cuts as part of the new five-year tariff review. This regulatory mandate shows the political pressure stemming from consumer dissatisfaction.

Though the company notes significant improvement, the raw numbers still highlight the challenge. As of Q1 2025, the key reliability metrics were:

Metric	Definition	Value (1Q 2025)
SAIDI	System Average Interruption Duration Index (Average minutes of outage per customer)	7.9
SAIFI	System Average Interruption Frequency Index (Average number of outages per customer)	3.2

A SAIFI of 3.2 means the average customer still experienced over three sustained power interruptions in that period. That's too high for a major metropolitan area and fuels the public narrative that tariff increases are not translating into better service.

Urban growth in the Buenos Aires metropolitan area increases demand strain

The ongoing, largely unplanned urban sprawl in the Buenos Aires Metropolitan Area (AMBA) is a structural social challenge. The AMBA is home to over 15 million inhabitants, and the rapid, often informal, expansion of its periphery places an immense and unpredictable strain on the aging distribution network.

This is not just about capacity; it's about social equity and illegal connections. The company is tackling this head-on with market discipline measures. In the third quarter of 2025 (3Q25) alone, Empresa Distribuidora y Comercializadora Norte installed 7,571 energy meters specifically to convert informal and unreported connections-essentially energy theft-into transparent, billed connections. This action is critical for revenue integrity but can also spark local social conflicts in the communities being regularized.

Next Step: Operations team must draft a 12-month public communication plan by the end of the quarter, explicitly linking the ARS 163 billion invested in CapEx (as of June 30, 2025) to specific, local service improvements to manage the negative tariff narrative.

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) - PESTLE Analysis: Technological factors

Need for substantial investment in smart grid technology to cut technical losses.

You need to look past the top-line revenue growth and focus on what's bleeding cash: energy losses. Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) is fighting a persistent battle against both technical and non-technical (commercial) losses, and it is a technology problem at its core. As of the second quarter of 2025, the company's total energy losses over the last twelve months stood at a high 15.55% of distributed energy.

To be fair, the regulator recognizes 9.58% of that as an acceptable loss in the tariff structure, but the remaining circa 5.97% is a direct hit to the bottom line. This is why EDN is prioritizing smart grid components, like advanced metering infrastructure (AMI) and analytical tools powered by artificial intelligence (AI). These tools are defintely helping to improve inspection efficiencies and detect irregular connections, but the sheer size of the loss percentage shows the investment still isn't matching the scale of the problem. You need a bigger CapEx commitment here.

• Total Energy Losses (LTM Q2 2025): 15.55%
• Regulator-Recognized Losses: 9.58%
• Non-Technical/Commercial Loss Burden: ~5.97%

Digitalization of customer service and billing is a priority to improve collections.

Digitalization isn't a buzzword here; it's a critical tool for cash flow stability. The focus is on improving customer experience and, more importantly, boosting the collection rate. The good news is that at the end of the first quarter of 2025, EDN reported a solid collectability rate of 95.38%. That's a strong operational metric, but the flip side is the accrued bad debt still totaled ARS 56,831 million at the period-end, showing the high-stakes nature of billing and collections in Argentina's volatile economic environment.

The company has made strides in customer-facing technology. For example, more than 44% of customer issues are resolved in under three minutes, which points to effective use of digital self-service channels. Going forward, the priority is on digital billing and payment platforms to reduce friction and accelerate cash conversion. You can't afford to let that ARS 56,831 million bad debt figure balloon.

Aging infrastructure requires massive replacement to ensure service reliability.

The distribution network is old, and aging infrastructure is the primary driver of service quality issues and technical losses. The only way to fix this is with massive, sustained capital expenditure (CapEx). EDN is making the investment, which is a clear positive signal.

For the first quarter of 2025, EDN's CapEx was ARS 79.398 million, a 4% increase compared to the first quarter of 2024. The accumulated investment for the first half of 2025 reached ARS 163.538 million, which the company states is in line with its 2025 investment plan. This capital is directly aimed at replacing old equipment and upgrading the grid, which has already contributed to a reduction in the duration (SAIDI) and frequency (SAIFI) of outages. This investment pace needs to be maintained, or even accelerated, to keep service quality above the regulatory minimums and truly build resilience.

Investment Metric (2025)	Amount/Value	Context
Q1 2025 CapEx	ARS 79.398 million	+4% increase YoY, focused on infrastructure/service quality.
H1 2025 Accumulated CapEx	ARS 163.538 million	In line with the full 2025 investment plan.
Collectability Rate (Q1 2025)	95.38%	Operational efficiency in billing and collections.
Accrued Bad Debt (Q1 2025)	ARS 56,831 million	The financial risk remaining despite the high collection rate.

Implementing Supervisory Control and Data Acquisition (SCADA) systems is slow.

The implementation of Supervisory Control and Data Acquisition (SCADA) systems is a key technological factor for any modern utility. SCADA allows for real-time monitoring and control of the grid, which is essential for quickly isolating faults and improving the SAIDI/SAIFI metrics. While EDN is investing heavily in CapEx, the progress on a fully integrated, modern SCADA system appears slow or at least lacks transparency in public disclosures, especially when compared to the explicit focus on AI for loss reduction.

I know the company is working on integrating systems, such as a new one to fully and efficiently manage the growing number of country clubs and closed neighborhoods. But a full-scale, next-generation SCADA rollout across the entire distribution area is what truly drives operational excellence. The lack of specific SCADA milestones in the 2025 reports suggests that the core network control modernization is moving slower than the immediate, revenue-focused projects like fraud detection and customer service digitalization. That's a risk, because without real-time control, the CapEx spent on new wires and transformers won't deliver maximum reliability gains.

Action: Finance needs to track the CapEx allocation for SCADA-related hardware and software specifically, and ask for a detailed project timeline by the next earnings call.

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) - PESTLE Analysis: Legal factors

Regulatory framework (ENRE) often prioritizes consumer protection over company profitability

The Argentine electricity sector has historically operated under a regulatory framework where the National Electricity Regulatory Entity (ENRE) often prioritized social stability and consumer affordability over the financial health of distributors like Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN). This dynamic created a persistent structural deficit, as tariffs lagged far behind the country's high inflation rate.

However, the regulatory landscape is in a period of fundamental change in 2025. The government has initiated a structural reform to unify ENRE and the gas regulator (ENARGAS) into a single, new National Gas and Electricity Regulatory Authority. The stated goal is to grant this new entity administrative, functional, and budgetary independence, moving the sector toward economic-financial self-sufficiency and market signals. Still, the new regulator's mandate explicitly includes the objective of protecting consumer rights, so the historical tension between profitability and social concerns will defintely persist.

Legal disputes over tariff adjustments and past regulatory debt are common

The most significant legal and financial event in 2025 for Empresa Distribuidora y Comercializadora Norte Sociedad Anónima was the resolution of a major portion of its regulatory debt with the Wholesale Electricity Market Administrator (CAMMESA). For years, the inability to collect full, inflation-adjusted tariffs led to massive debt accumulation with the power generator. This is a perfect example of how regulatory lag turns into a legal dispute.

The government's push for a market-based solution led to a reorganization agreement. Here's the quick math on the financial impact in 2025:

• The company recorded a positive gain of ARS 168 billion in the second quarter of 2025 due to the positive effect of the reorganization agreements with CAMMESA for the outstanding balance.
• The total CAMMESA debt regularization contributed a positive ARS 199 billion to the company's results during the first nine months of 2025.

This settlement, while financially positive, often involves a significant haircut for the utility, as seen in previous settlements where power generators took a 40% haircut on past-due debt, accepting sovereign bonds that traded at a discount. This is how the state settles old debts-it's not a clean cash payment.

Compliance with concession contract terms is difficult under current economic conditions

The concession contract mandates specific service quality and investment levels, measured by indicators like System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI). Under the old, suppressed tariff regime, meeting these capital expenditure (CapEx) requirements was nearly impossible. The recent tariff increases have been a game changer for compliance.

The improved operating results from the tariff adjustments directly enabled the company to boost its capital spending, which is the only way to meet contract terms. For the first quarter of 2025, the company invested ARS 79.4 billion in its network, an increase of 4% compared to the same period in 2024. This investment is directly reflected in the continued improvement of the SAIDI and SAIFI service quality indicators, demonstrating a positive, albeit fragile, link between regulatory pricing and legal compliance.

New government decrees on utility sector financing create legal uncertainty

The current administration is driving a major legislative overhaul aimed at deregulation. This creates a high degree of legal uncertainty. The structural reform includes a decree to amend key power sector laws (No. 15,336 and No. 24,065) to promote competition and allow for private initiative in transmission development.

The most significant change is the creation of the new unified energy regulator, which is being established via decree. This new entity will assume the functions of ENRE and ENARGAS within a 180-day transition period. While the stated intent is to increase regulatory independence and attract private investment, any wholesale change to the regulatory body and framework creates a near-term risk of new legal challenges and policy shifts. The market is waiting to see how the new regulator balances the core objectives.

Legal/Regulatory Factor	2025 Financial/Operational Impact	Source of Uncertainty/Risk
Regulatory Debt Settlement (CAMMESA)	Positive gain of ARS 168 billion in Q2 2025 from reorganization agreement.	Future payment terms with CAMMESA remain a risk; previous settlements involved a 40% haircut.
Tariff Adjustment Impact	Q1 2025 EBITDA rose to ARS 63.2 billion (nearly 10x prior year) due to tariff increases.	Political and social pressure for tariff caps could reverse financial stability.
Concession Contract Compliance (CapEx)	Q1 2025 CapEx was ARS 79.4 billion, up 4% year-over-year, supporting service quality improvements.	Sustaining high CapEx requires continued, timely tariff adjustments tied to inflation.
Regulatory Body Reform	Creation of a single, new National Gas and Electricity Regulatory Authority (merging ENRE/ENARGAS).	New entity's interpretation of the dual mandate (profitability vs. consumer protection) is untested.

The key action for investors is to monitor the appointments and first resolutions of the new regulatory authority. If they start clawing back the tariff adjustments, the financial gains of 2025 will evaporate fast.

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) - PESTLE Analysis: Environmental factors

Focus on reducing energy loss (technical and non-technical) to lower environmental impact.

You cannot talk about the environmental footprint of a distribution company without immediately addressing energy losses. This is where the rubber meets the road on efficiency, and for Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN), it remains a significant challenge that impacts both the environment and their bottom line.

As of the Last Twelve Months (LTM) ending June 30, 2025, EDN's total energy losses stood at 15.55% of the energy purchased. This is a slight increase from the 15.18% reported for the full 2024 fiscal year. To be fair, not all of this is technical (heat dissipation); a large portion is non-technical loss (NTL), which is theft or fraud.

Here's the quick math on the regulatory gap that drives action:

• Total Energy Loss (LTM Q2 2025): 15.55%
• Regulatory Recognized Loss: 9.58%
• Unrecognized Loss (Mostly NTL): 5.97%

The 5.97% difference is energy EDN buys but cannot bill for, forcing them to purchase more power than necessary, which increases overall system-wide fuel consumption and subsequent carbon emissions. That's a huge financial and environmental drag. EDN is tackling this with multidisciplinary teams and new analytical tools, including Artificial Intelligence, to improve inspection efficiencies and combat irregular connections. You defintely need to see a downward trend here to signal true operational efficiency.

Infrastructure is vulnerable to extreme weather events due to climate change.

The climate crisis is no longer a long-term risk for utilities; it's a near-term CapEx planning problem. EDN operates in the Greater Buenos Aires metropolitan area, which is increasingly subject to intense heatwaves, severe convective storms, and heavy rainfall that stress the aging network.

Physical damage and business interruption are the two major impacts companies fear most. EDN addresses this by prioritizing CapEx for network hardening and service quality. For the 2024 fiscal year, the Company reported ARS 389.215 million in investments, a substantial portion of which is directed toward expanding and reinforcing the grid to improve service quality indicators like System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI). This investment is critical to maintaining service during extreme weather events.

The ongoing infrastructure projects require stringent environmental oversight, as shown by the Environmental Impact Statements (DIA) and Environmental Clearance Certificates (CAA) secured in 2024 for projects like the expansion of Substation No. 365 Pantanosa. This ensures that resilience improvements are compliant with local environmental standards.

Regulatory pressure to improve energy efficiency within the distribution network.

The Argentine government's 2025 power sector reforms are driving a new focus on efficiency and market-based sustainability. The regulatory environment is shifting from a state of emergency to one focused on long-term predictability, which includes linking tariff adjustments to performance.

The five-year tariff review implemented in 2025 provided a significant adjustment, granting the company an increase of 14.35% over inflation. This regulatory mechanism is a double-edged sword: it restores financial health, but it also enforces a stricter compliance regime for service quality and loss reduction, which are core environmental efficiency metrics.

Furthermore, new regulations like Resolution SE 21/2025 aim to revitalize the Renewable Energy Term Market (MATER), enabling distribution companies like EDN to play a greater role in the energy transition. This regulatory push means EDN must focus on:

• Integrating distributed generation (DG) more effectively.
• Managing a more complex, two-way grid flow.
• Sourcing a higher percentage of energy from corporate Power Purchase Agreements (PPAs).

Managing waste and pollution from substation maintenance is an ongoing concern.

The environmental risk associated with substation maintenance is concentrated on hazardous waste, primarily insulating oils, which historically contained Polychlorinated Biphenyls (PCBs), and spent batteries. EDN has established a formal framework to manage this risk, maintaining an ISO 14001:2015 certification for its environmental management system.

A concrete action taken in 2024 was the procurement of Special Authorization Certificates for all Company warehouses. These certificates are specifically required to ensure the proper handling and final disposal of special or hazardous waste, which is a direct response to regulatory and public pressure on industrial pollution.

The company reports its Scope 3 emissions related to waste, which for the 2024 fiscal year was a minor but tracked amount of 10.32 tCO₂eq from waste incineration. This transparency, while small in scale, shows a commitment to tracking and reporting environmental impacts beyond direct operations, giving investors a clearer picture of their full environmental footprint.

Environmental Metric	Value (LTM/FY 2025)	Strategic Implication
Total Energy Loss	15.55% (LTM Q2 2025)	Requires continuous CapEx and AI-driven initiatives to reduce non-technical losses (NTL).
Regulatory Recognized Loss	9.58%	The 5.97% gap is a direct financial and environmental cost.
2024 Investments (CapEx)	ARS 389.215 million	Funding for network hardening against climate-related extreme weather events.
Regulatory Tariff Adjustment (2025)	14.35% over inflation	Ties operational efficiency (including loss reduction) directly to financial stability via the new tariff review.
Hazardous Waste Compliance	Special Authorization Certificates obtained (2024)	Ensures legal handling and disposal of special/hazardous waste from substation maintenance (e.g., transformer oil).

Next step: Operations should provide a detailed breakdown of the ARS 389.215 million CapEx to quantify the specific investment in climate-resilient infrastructure by the end of Q4 2025.