Cammesa Secures Financial Relief for Energy Companies with Creative Accounting: Is Transparency Sacrificed for Profit?

In an effort to alleviate the financial strain of energy generating companies, Cammesa, the wholesale administrator of the electricity market, has agreed to provide bonuses in dollars for the payment of subsidy debts. This agreement was reached with Minister of Economy, Luis Caputo, who announced full support for canceling a portion of the $2.89 billion owed to them for gas and electricity sales.

Caputo’s “step up” bonus to 2038 (AE38) with a 50% discount has generated increased activity in the market, with trading volume jumping from $5 million to almost $11 billion. While some generators reluctantly accepted the deal, others reported losses due to the payment method and interest for late payment accrued. Central Costanera and Central Puerto both admitted losses for accepting bonds with lower values than their face value.

Cammesa used its own funds to buy securities from the Central Bank and paid off debts with the generators. This financial operation helped the Treasury avoid counting expenses that would have impacted the financial surplus and delayed commitments at a crucial time. Some experts argue that this creative accounting masks the true financial situation. Cammesa is a non-profit company responsible for purchasing and dispatching energy, funded by the Treasury. The use of transfers to pay bonds has resulted in savings as the bonds are worth half as much on the market.