22 Sep 2009 07:00
Andes Energia plc
("Andes" or the "Company")
Electricity tariffs
Andes (AIM: AEN), the Latin American energy group, is pleased to announce that EDEMSA, the group's electricity distribution business, has now completed the process for the implementation of the first new tariffs for the third review period. This follows the approval of the procedure for the calculation of the new tariffs, which was announced on 12 August 2009. The new electricity tariffs will result in an average increase of between 0% and 15% for residential users and between 12% and 22% for commercial users, representing an average total increase of approximately 12%, which will be effective retrospectively from 1 August 2009.
As announced on 21 February 2008, the terms for the acquisition of the final 50 per cent. indirect interest in Sodem S.A. included the possibility of an earn-out payment. The approval of the procedure for the calculation of the new tariffs might crystallise this earn-out payment, which may be satisfied in cash and/or through the issue of new Company shares. However, under the terms of the stock purchase agreement, certain elements of the earn-out are still open to interpretation and are being agreed with the seller. A further announcement will be made once the timing and the amount of the earn-out payment, if any is due, have been established.
Neil Bleasdale, Chairman of Andes, stated, "We are pleased that the Government has approved this tariff increase and we hope that further tariff adjustments already established for the third tariff review period will also become effective. This will allow us to continue to satisfy our debt, working capital and investment obligations."
For further information please contact:
| Andes Energia plc | Luis Alvarez Poli, CEO Nigel Duxbury, FD | T: 020 7495 5326 |
| Arbuthnot Securities | James Steel Antonio Bossi | T: 020 7012 2000 |
| Bishopsgate Communications | Nick Rome Michael Kinirons | T: 020 7562 3350 |
Note to Editors:
Andes
Andes is a Latin American energy group, with electricity distribution, hydro-electric power and oil and gas interests in Argentina. The Company's focus is on the Argentinean energy sector, which it believes offers premium assets at undervalued prices.