The directory of UTE unanimously approved to propose an adjustment of rates for the 3% to the Executive Branch as of January 1, 2025. The proposal is still pending approval by the Executive. The president of the entity, Silvia Emaldihighlighted in a press conference that the company anticipates “significant profits” in 2024.
Emaldi explained that the state company’s economic team had initially calculated that the adjustment should be from 5%based on the variables macroeconomic provided by the Ministry of Economy and the spending forecasts of UTE for next year. However, the board’s final decision was to adjust the proposal to a 3%.
Financial decisions and projections
The proposed minor adjustment responds, according to Emaldi, to the efforts to maintain the efficiency in expenses and recovery of losses energywhich allows a lower increase in rates. She commented: “Taking into account what we have been doing during the period, considering the efficiency in expenses that the company has been having in these years and in turn the recovery of the losses of energywe are turning that into a lower adjustment of rates”.
Last year, the proposal adjustment that was presented to the Executive was 3.5%. However, the director for the Wide Front from that time, Fernanda Cardonawho is now Minister of Industry of the new government of Yamandu Orsiopposed that adjustment. This change reflects the company’s intention to respond to criticism and adjust according to the current context.
Profit outlook for 2024
The president of UTE anticipates a prosperous year in 2024with the company’s earnings likely to significantly exceed those of the previous year. In 2023UTE reported a balance of approximately 108 million dollars. Emaldi indicated that for next year, profits could reach 200 million dollars thanks to a “significant volume of exportsespecially to Argentina«.
These positive financial results are in part the result of the strategies of export that UTE has recently implemented, which has increased its foreign income, thus improving its economic position.
Economic context and rates
Rate adjustment is a response to conditions economic of the country and the internal projections of UTE. The company has been closely observing the behavior of the variables macroeconomic and looking for ways to optimize their operations in order to maintain rates as low as possible without compromising your financial capacity.
The potential impact of the rise tariff It will also depend on the Executive Branch’s approach to the proposal, which must weigh the operational needs of UTE with the impact on end users.
