Enersis Américas S.A. (NYSE:ENI) Q1 2020 Earnings Conference Call - Final Transcript

May 04, 2020 • 11:30 am ET


Enersis Américas S.A. (NYSE:ENI) Q1 2020 Earnings Conference Call - Final Transcript


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Q & A
Rafael de la Haza

Well, thank you very much, Aurelio. Very clear. We will now begin our Q&A session. And I would like to remind you that the questions will come from the chat of the company. We have some questions. The question received in the chat comes from balance, Ezequiel Fernandez. And the first question is a following one. What protective measures has each county implemented regarding the quarantine period, non-payment, payment in installments, provision for service cut-off, etc? And the second question from balance is the [Technical Issues] by distribution companies. Can you explain that to the rest of the chain, generation and transmission in an official manner via regulation or in an informal manner, unilateral extension of the term of monetary transfer of the energy transmission and companies?Okay. Thank you, Rafael. Gracias, Ezequiel. Thank you for your questions. Well, in Argentina, we have mandatory quarantine extended into May the 10, that's the latest information that we have. We closed all the commercial offices. And only personnel needed to continue of services in the network can be mobilized. Yes, we are in the streets with this priority to keep the lights on. Of course, with safety and very lots of attention in the safety condition of our people. And also in Argentina, we have limited to disconnect or to suspension basic services for six months for users with social tariffs or subsidies.

In Brazil, quarantine is not mandatory at a country level. Sao Paulo is the region that we have the biggest effect of the crisis. The crisis in Brazil is the state of the highest level. Sao Paulo has declared a mandatory quarantine until May the 10. Normatori the resolution of this year prohibited the suspension of supply for 90 days during these periods for let's say, non-payments during these 90 days, right Previous delinquency, yes, we cannot disconnect.

Aurelio Bustilho

But for this period, no. We measure to preserve the provision, of course, of the public electric distribution services, which is maintained. Well, the Medida Provisoria 950 of this year increased to 100%, the discount to consumers benefited by social rate, let's say a construction up to kilowatt hour -- sorry kilowatt month. Well, there's also allocating CDE, the account for the subsidy, obviously the services resources to cover these measures. So the distribution company will pay less CDE. Of course, we are refining this number to see the impact in our company.

In Colombia, there is a mandatory quarantine extended till May 11. Liquidity line for the company, voluntary contribution and transfer of non-reconciled values of subsidy by the Minister of Energy. Transitional measures for payments of energy bill. Well, there is a definition of payments period of 36 months for social straton one and two, 24 months for social straton three and four; and for other regulatary users as agreed between the price. Of course, the regulator will act as a let's say as a mediator.

In Peru, mandatory quarantine extended till May the 10 as well. Well, there is a