Exclusive Interview with Edenor - AEW 2024

1. Influence on the Energy Sector

As the largest electricity distributor in Argentina, how has EDENOR influenced the evolution of the energy sector in the region? What are the main changes or improvements you have implemented since its creation?

Edenor is the largest electricity distribution company in the northern part of the Greater Metropolitan Area of Buenos Aires:

We supply 20% of the total electricity market in Argentina to over 3.3 million customers or 9 million people out of Argentina’s total population of 46 million.
We have an exclusive 95-year concession contract that continues through 2087.
Our concession area is very large, covering 4,637 square kilometers.

We are listed on both the NYSE and the Buenos Aires Stock Exchange (Ticker: EDN). Because of our size, we are critically involved in changes in the energy markets. Our core strategy is to transition from being a traditional utility to a broad energy leader with a bright future by:

Building on the strengths of our existing business.
Expanding to supply clean energy as part of the energy transition.
Continuing to develop a smart grid using technology and innovation.
Offering new services that allow users to buy electricity or self-generate and sell their energy.
Developing renewable energy generation projects and further expansion of our network to serve new customers, such as electric vehicles (public or private).

We recently made changes to our by-laws to expand our corporate purpose to make it possible to successfully expand and adapt to changes in the energy markets, which include, of course, the energy transition.

2. Commitment to Quality and Sustainability

EDENOR is committed to complying with the requirements of the legislation and optimizing quality and environmental management systems. Could you detail any recent initiatives that illustrate how you are moving towards sustainability and efficiency in energy distribution?

We are highly committed to operating in a sustainable and socially responsible way. Our commitment to sustainability not only aligns with our corporate values but also creates long-term value for our stakeholders. Innovation, operational excellence, corporate governance best practices, and resilience are part of our management team DNA and are essential to achieving our strategy.

The energy sector is clearly continuing to undergo rapid change, which poses big challenges but also creates opportunities for Argentina and our Company. The opportunities are further enhanced by the energy sector deregulation announced by the current government in Argentina.

In line with this, as explained, we recently changed our corporate purpose in our by-laws, allowing the company to participate and invest in a broader range of businesses, including the generation of both renewable and conventional electricity energy, plus critical minerals, particularly those in greatest demand in the energy transition.

3. Community Impact and Social Responsibility

How does EDENOR align its operations and growth strategies with the needs and progress of the local community? Could you share examples of projects or programs that have had a significant impact on the community?

We have a series of programs that over time have helped to serve the needs of the local communities in which we operate. Since 2017, through the Electricity Inclusion and Smart Consumption Program, we have been working to improve access to reliable energy for homes in low-income neighborhoods and to help educate people on the efficient use of the energy they consume.

We also have a program to install what is known as Integrated Energy Meters, known as MIDE. This program was created by Edenor to foster social inclusion. Through MIDE, people have a new way of consuming, saving, and paying for electricity by prepaying their energy. They then regularly receive a ticket/receipt that they can use as proof of address to open a bank account, apply for a job, etc. There is no installation cost for the meters, and the service is safe, easy to use, and tailored to each family.

We are also working in partnership with a local group, the Fundación Pro-Vivienda Social, to provide different types of training sessions and informative talks for customers residing in these neighborhoods, related to the smart, safe, and efficient use of electricity, how to operate the smart meters, and get access to special tariff programs for low-income households, known as the social tariff.

Some of the investments included in this program were part of investments included as part of a Social Bond listed in BYMA SVS Panel.

4. Technological Innovations

In a sector that is constantly evolving with new technologies, how does EDENOR stay at the forefront in terms of technological innovation in electricity distribution?

We continue to invest to maximize the opportunities that come from new technologies and apply them to our business. We have had a series of initiatives that have been particularly notable over the past 11 years - with infrastructure investments of more than USD 2 billion - to strengthen our operational capabilities and position the company for continued success. Starting in 2013, we began the transformation of the network into a smart network using a telecontrol system. The system operates through a series of installations that are strategically located, including 3,343 remote-controlled points, 2,724 tele-supervised points, as well as 324,000 smart meters. EDN also has a wireless and fiber optic network that covers our entire concession area. These installations allow us to quickly resolve problems by isolating any part of the system that is experiencing an incident. We can rapidly identify where the problem is and reestablish service usually within minutes without physically sending a team to the location. In general, 64 % of cases are resolved in less than 15 minutes: with 44% in less than 3 minutes, 16% between 3 and 10 minutes, 4 % between 10 to 15.

Recently, our control center developed FLISR which is a system for medium tension network, which is used only in distribution companies in the USA, Japan, France, Australia, the United Arab Emirates, and South Korea, as it allows to normalize approximately 50 % of clients affected in a certain area within 2 minutes.

We have also transformed the way in which we relate to our clients. We modernized the service in our commercial offices with the latest technology and developed Edenor Digital, a cutting-edge service app, which is already used by more than 2.4 million clients. This allows customers to resolve procedures, make payments, and generate electronic bills or receipts from home or from a telephone, optimizing clients' time and reducing the carbon footprint (by not requiring clients to travel to commercial offices or to print invoices, for example).

5. Expectations for Argentina Energy Week

Being a sponsor of Argentina Energy Week, what expectations does EDENOR have for this event? How do you plan to use this platform to strengthen your leadership and presence in the energy market?

EDENOR is excited to participate with such remarkable leaders of the energy industry. This is a unique time in Argentina full of opportunities for investors, seeking for the electrification of the economy, increased electrification of the vehicle fleet – both for public transportation and for automobiles. We also see many opportunities for the installation of solar panels at our own or client facilities that can change how the market will be served over time. We hope to both share our own experiences and opportunities for the future and to learn from others that are participating.

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