2010 annual report Edenor table of contents

Introduction Concession Area 3 Supervisory and Administration Bodies – 2010 Fiscal Year 5 Board of Directors 5 Supervisory Committee 6 Call to Meeting 7

CHAPTER 1: Economic Context and Regulatory Framework a. Argentine Economic Situation 10 b. Energy Sector 11 c. Regulation and Control 13

CHAPTER 2: Analysis of the Economic-Financial Operations and Results a. Relevant Data 15 b. Analysis of the Financial and Equity Condition 17 c. Investment 18 d. Financial Debt and Description of Main Sources of Funding 21 e. Description of Main Sources of Funding 23 f. Analysis of Financial Results 25 g. Main Economic Ratios 26 h. Allocation of Income/(Loss) for the Year 26 i. Business Management 26 j. Large Customers 28 k. Rates 30 l. Energy Purchase 33 m. Energy Losses 34 n. Delinquency Management 35 o. Technical Management 37 p. Service Quality 41 q. Product Quality 42

CHAPTER 3: SUPPORT TASKS a. Human Resources 44 b. It and Telecommunication 47

CHAPTER 4: RELATED PARTIES a. Description of the Economic Group 51 b. Most Significant Operations with Related Parties 53

CHAPTER 5: Business Social Responsibility a. Business Social Responsibility 56 b. Industrial Safety 58 c. Public Safety 58 d. Management of Quality 60 e. Environmental Management 61 f. Educational Programs 61 g. Actions with the Community 62

SCHEDULE I - Corporate Governance Report CNV General Resolution 516/2007 65

FINANCIAL STATEMENTS 72 3

CONCESSION AREA

Edenor exclusively renders distribution and and Río de La Plata avenue. In the Province of marketing services of electrical energy to all Buenos Aires, it comprises the Districts Belén de users connected to the power supply network Escobar, General Las Heras, General Rodríguez, in the following area: In the Capital City: the former General Sarmiento (which now includes area defined by Dock “D”, street with no name, San Miguel, Malvinas Argentinas and José C. drawing of the future Coast Highway, which is Paz), La Matanza, Marcos Paz, Merlo, Moreno, an extension of Pueyrredón avenue, Pueyrredón former Morón (which now includes Morón, avenue, Córdoba avenue, railroad San Martín, Hurlingham and Ituzaingó), Pilar, San Fernando, General San Martín avenue, Zamudio, Tinogasta, San Isidro, San Martín, Tigre, Tres de Febrero General San Martín avenue, General Paz avenue and Vicente López. 4

OLIVOS Vicente López San Isidro San Fernando Tigre Escobar

MORÓN NORTE Morón Norte de la Ciudad Autónoma Ituzaingó de Buenos Aires Hurlingham San Martín Merlo Tres De Febrero Marcos Paz Gral. Las Heras PILAR La Matanza Moreno General Rodríguez Pilar Malvinas Argentinas José C. Paz San Miguel 5

SUPERVISORY AND ADMINISTRATION BODIES 2009 FISCAL YEAR

Board of Directors

All decisions regarding Edenor are taken by the Committee, which is composed of all independent Board of Directors, which is composed of 12 regular members in compliance with the criteria set forth in directors and 12 alternate directors; 4 regular the Sarbanes-Oxley Act (“SOX”). directors and 1 alternate director are independent in accordance with the criteria adopted by the The Company has an internal policy to assign Argentine Securities and Exchange Commission administration and regulation powers to all directors, (Comisión Nacional de Valores). The term of office of managers and assistant managers, thereby establishing all directors if of 1 year and they may be re-elected a remarkable degree of authority which allows for an for consecutive periods. optimum system of performance and internal control.

The Board of Directors, in turn, assigns specific The following table describes the Board of Directors’ duties to an Executive Board and to the Audit payroll for the 2010 fiscal year:

Name Position Independency

Alejandro Macfarlane President Non independent Marcos Marcelo Mindlin Vice-president Non independent Damián Miguel Mindlin Regular Director Non independent Gustavo Mariani Regular Director Non independent Luis Pablo Rogelio Pagano Regular Director Non independent Maximiliano Fernández* Regular Director Independent Eduardo Llanos* Regular Director Independent Edgardo Volosín Regular Director Non independent Ricardo Torres Regular Director Non independent Diego Martín Salaverri Regular Director Non independent Alfredo Mac Laughlin* Regular Director Independent Eduardo Orlando Quiles Regular Director Independent Javier Douer Alternate Director Non independent Jorge Grecco Alternate Director Non independent Pablo Díaz Alternate Director Non independent Ariel Schapira Alternate Director Non independent Brian Henderson Alternate Director Non independent Ricardo Sericano Alternate Director Non independent Jaime Javier Barba Alternate Director Non independent Alejandro Mindlin Alternate Director Non independent Maia Chmielewski Alternate Director Non independent Gabriel Cohen Alternate Director Non independent Eduardo Maggi Alternate Director Non independent Rafael Mancuso Alternate Director Independent (*) Members of the Audit Committee. 6

Supervisory Committee

The Company’s Bylaws set forth that its Their main duty is to control the lawfulness of supervision shall be carried out by a Supervisory the Board of Directors’ compliance with the Committee composed of 3 Regular Auditors and 3 regulations under the Argentine Companies’ Act Alternate Auditors, all of whom shall be elected by (Ley de Sociedades Comerciales), the Company’s the shareholders and shall have a term of office of Bylaws and, if any, the Shareholders’ Meeting’s one fiscal year. decisions.

Name Position Independency

Javier Errecondo Regular Auditor Non independent José Daniel Abelovich Regular Auditor Independent Jorge Roberto Pardo Regular Auditor Non independent Santiago Dellatorre Alternate Auditor Non independent Marcelo Fuxman Alternate Auditor Independent Alejandro Gabriel Turri Alternate Auditor Non independent 7

CALL TO MEETING

EMPRESA DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.) CALL TO MEETING SHAREHOLDERS’ ORDINARY GENERAL MEETING

Class A, B and C shareholders of Empresa loss under the Rules of the Argentine Securities Distribuidora y Comercializadora Norte Sociedad and Exchange Commission (Comisión Nacional Anónima (Edenor S.A.) are called to the General de Valores). Ordinary Meeting to be held on April 12, 2011 at 11 a.m., in first call, and at 12 a.m. in second call, at 6| Appointment of twelve (12) regular directors Avda. del Libertador 6363, Ground Floor, in the City and twelve (12) alternate directors; seven of Buenos Aires, in order to consider the following (7) regular directors and seven (7) alternate Agenda: directors holding Class “A” shares, five (5) regular directors and five (5) alternate directors 1| Appointment of two shareholders to sign the jointly holding Classes “B” and “C” shares. minutes. 7| Appointment of three (3) regular members and 2| Consideration of the Annual Report, Balance three (3) alternate members of the Supervisory Sheet, Statement of Income, Statement of Committee, two (2) regular members and Changes in Shareholders’ Equity, Statement two (2) alternate members holding Class “A” of Cash Flows, Supplemental Documents, shares, and one (1) regular member and one Informative Review, Information required (1) alternate member jointly holding Classes under section 68 of the Regulations of the “B” and “C” shares. Buenos Aires Stock Exchange, Reports of the Certifying Accountant and the Supervisory 8| Decision regarding the Certifying Accountant’s Committee, and Allocation of Profits for the fees for fiscal year ended December 31, 2010. fiscal year ended December 31, 2010. 9| Appointment of the Certified National 3| Consideration of the Board of Directors’ and Accountant who shall certify the Financial Supervisory Committee’s performance during Statements of the fiscal year under the fiscal year ended December 31, 2010. consideration. Determination of his fees.

4| Consideration of Directors’ compensation for 10| Consideration of the budget of the Audit fiscal year ended December 31, 2010, which Committee and the Board of Directors’ recorded a taxable loss under the Rules Executive Board for 2011 fiscal year. of the Argentine Securities and Exchange Commission (Comisión Nacional de Valores). All Shareholders shall be reminded that Caja de Valores S.A., domiciled at 25 de Mayo 362 5| Consideration of the Supervisory Committee’s (C1002ABH), City of Buenos Aires, keeps records members’ compensation for fiscal year ended of the Company’s book-entry shares. In order December 31, 2010, which recorded a taxable to attend the Meeting, they shall obtain proof of 8

the book-entry shares account, such proof being issued for that purpose by Caja de Valores S.A. Moreover, they shall submit such proof for its registration in the Meeting Attendance Registry kept at Floor 12 (Management of Legal Affairs) at the corporate office located at Avda. del Libertador 6363, City of Buenos Aires, by and including April 6, from 09:00 a.m. to 01:00 p.m. and from 03:00 p.m. to 06:00 p.m.. At the time of delivering such proof, they shall also submit copy of the instrument evidencing the legal capacity and representation of each shareholder attending the Meeting, The Company shall provide all Shareholders with the proof required to be admitted to attend the Ordinary General Meeting.

The undersigned was appointed Director by the Ordinary General Meeting held on April 7, 2010, as per Minutes No. 55, elected President by the Board of Directors’ Meeting held on that date as per Minutes No. 311.

Alejandro Macfarlane President economic context and regulatory framework economic context and regulatory framework 10 surplus of the Federal Government experienced an an experienced Government primaryFederal the of the surplus revenue, non-tax in increase 45% a activity, and inflation), high economic relatively and exports increasedgrowing an with (coupled analysis under period the during increase 37% a collection,amountingto tax inrecovery sound a to over-yearNevertheless,around36%.growthof due year- a recorded expense public primary the 2010, in concerned, are taxes as far as case, last the In (fiscal, program monetary andincome). wide-spread policy economic An 4. and term); short the in default sovereign of probability reduced a and excess in supply private dollar U.S. on (based term short the in surprises unwelcome no ensuring climate stability financial A 3. environment); prices high a for in demand commodities the drives China where and sector, industrial domestic the pulling thus rates, startling at grows Brazil (where scenario overseas favorable boom, with a record harvest (in particular, soy); 2. A agricultural The 1. follows: as are economy the of The most important factors underlying this recovery as comparedto2009. growth fast considerable a representing thus 2010, Argentina would have recorded an 8.7% increase in According to officially-released data, the real GDP in a | | ARGENTINE ECONOMICSITUATION framework regulatory context and economic agn (n em o pyia ad ua capital) human and physical of terms (in margins supply where context a in issue, macroeconomic domestic important the most the not remain will From inflation viewpoint, does uncertainty-free. 2011 as for stand scenario auspicious This aim offosteringthedomesticeconomicactivity. a bunch of domestic economic policies with a priority contributing to it, as Brazil and China performance, and continue would that factors certain to thanks region-, is growth expected significant the -indeed,mostthesignificant ofone thein Nevertheless, year. as again this upward trend not would which but high, remain also will that prices international with year), previous the during experienced the droughthistorical following year remarkable last the during recorded repeat increase not will it (though harvest high continuous a to linked for closely be expected would 2011 growth economic in slowdown This turn. short the in unchanged remain would 2010 in around factorstheeconomicdrovethatthe5.5%,as ahead of expansion estimated an are with prospects year,optimistic, following the to view a With activa, PEA). 7.5% of the labor force (población económicamente and in the last quarter, it represented approximately the unemployment rate would have decreased in 2010, data, officially-released to according turn, In as comparedtothe20.6%recordedlastyear. terms) realGDP, in(measured of22.6% a reaching investment would have regained importance consequence, in terms a As 2009. in registered dropdown 10.2% the after particularly path, right the to back head to managed annual it as 2010, real in 18.4% a of growth recorded have would Investment Gross fixed data, officially-released to According for theArgentineNationalTreasury. República Argentina, B.C.R.A.) Republic Argentine the of Bank worth mentioning the core part played by the Central the 1.6% recorded by the GDP in 2009. However, it is savings in 2010 was equal to 2.3% of the GDP, above primaryfact,In2009. improvement comparedto as as a financing source (BancoCentral de la required for a fast paced growth are narrowing. required the dispatch of a greater component of We should also mention the uncertainty that thermal generation with liquid fuel. As a result of always surrounds a President election. From the the strategic decision of Compañía Administradora international viewpoint, doubts are focused on the del Mercado Mayorista Eléctrico (CAMMESA) to United States growth dynamic forces, on one hand, maximize the hydroelectric reserve, fuel oil and and on that of small and mid-sized economies gas oil consumption reached values in excess of in Europe, on the other hand. Despite the fact 2,268,900 tons and 1,663,200 cm, respectively, that it hardly difficult to picture the economies of during this year. developed countries resulting in a new global crisis outbreak (as the one suffered in late 2008 and early The agreement executed by the Argentine Ministry 2009); it is also true that problems threatening those of Federal Planning and Public Investment and economies will not fade away in the short term. Services and the representatives of the companies producing natural gas, by which growing prices of wellhead gas were settled as of July 2009 lead to b | ENERGY SECTOR the spot price (only energy) nearly reaching the ceiling price fixed by Energy Secretariat Resolution In the energy generation sector, operative costs No. 240/04 of 120 $/MWh, as the most efficient and, as a consequence thereof, the monomial energy generation machines using natural gas market price (see figure below) were again entail an operative cost quite close to that value. increased due to a remarkable growth in gasoil consumption, mainly during winter times when Oil price remained stable, similar to the average the hydroelectric and gas supply was scarce and cost recorded in the last five years.

MONOMIAL AVERAGE MARKET PRICE

250,0

206,18 200,0 162,38 150,0 144,85 119,31 100,0 92,20 66,49 53,66 50,0 39,41 28,49 0,0 2002 2003 2004 2005 2006 2007 2008 2009 2010

As happened in previous years, the funding of (mainly extra costs under imports from Brazil) the Wholesale Energy Market (WEM) basically reached a negative balance of AR$18.896 billion. depended on the contributions made by the It should be noted that Notes S.E. No. 5072/09, Argentine Government to the Unified Fund to pay 4027/10 and 5121/10 fixed the Argentine National off the negative balance of the WEM’s accounts; in Treasury contribution to the WEM’s accounts from 2010, the Income/(Loss) from Transactions of the “Refundable” to “Non-refundable” for an amount WEM’s accounts plus Additional Payments Made equal to AR$9.927 billion.

11 economic context and regulatory framework 12 non-residential demand. by paid be to charge a with sources, different the new energy generation plant to be funded, among a of project a entails fund which down, laid were Eléctrico, permitan Mayorista el en que Mercado Eléctrica Energía de Oferta Necesarias la Incrementar Inversiones para Electrical Market Energy of Wholesale Necessary the in Energy Supply for Increasing Fund Investments new the of for basis the implementation in addition, In improvement ratios. the availability on based generators, which by received be to Agreement” compensation power the modifies “2008-2011 the Secretariat executed Energy the and generators certain ratios, availability improve to attempt an in and 2010 late By aging. their from as well energy,as produce to gas natural of instead fuel liquid with used when machinery of use heavy-duty greater a from derives which and 31% about at high, still improvement of the absolute percentage which is years. This does not mean that there is a substantial two slightly the previous during than that registered was higher plant thermal the of availability The the that accounts Argentine Governmentpaidoffwithsubsidies. relevant the in accumulated but demand the in reflected been not have Brazil, from imports under charges energy the to similarly costs, higher These projects. new for investment foster and equipment the of maintenance the with start to difficulties up clear to order in generators of new stations and to the repair of and/or the repowering installation the to related arrangement funding were implemented by the Energy Secretariat as which a special with signed, be Agreements” to continued “Sourcing CAMMESA various 2010, In generator compensation. energy electrical the in essential are concepts such of the cost deriving from making the power available; and cost further suspends marginal the U.S.$-denominated short-term accounting of issue the limits regulation This 2002. since applied as kept unchanged capacity was regulation plant enacted generation the compensation, the to respect With FONINVEMEM) (Fondo widening the supply of natural gas to 15 MMm 15 to gas natural of supply the widening Energy by at aimed 1031/08, and 24 No. Resolutions Secretariat established as supply), aggregate the of 1% around (totaling regime Plus Gas the under available made were quotas small 2010, January from As winter. during demand growing thermalstations the meet to enough not be to yet continued and year previous the to compared as 16% by reduced was sector electrical the for supply gas The oe ek i Jnay n Mrh A average daily productionof5.6MMm An March. and January in weeks duringsome stoppages with round, year all extending year,previousnearly the to comparedoperation of deficit of Natural Gas. The plant had a longer period demandinternal the reduce to as so extendedwas the Dock of Mega Company located in Bahía Blanca in Gas Natural Liquefied of Regasification of Plant On the other hand, the annual injection of the Floating this regimeareapprovedbytheEnergySecretariat. to related prices All oilfields. existing of tear and wear partiallydailybasisatand compensating naturalthe works seek development of the Argentine Argentine the of development seek works These the High continued. of Transmission concerned, Plan Electric Federal Voltage is the of works transportation of progress as far As and inEscalante,Chubut(1,5MW). MW) (0,25 Aires. Buenos of Province Necochea, in Farms, Wind two of stages first the of start-up the mentioning worth also is It energy network.. the to surplus an provide which new Stations Turbine some Wind and plants small 13 opened Enarsa Moreover,sources. contributing important most the as stand MW) 48.7 of TV a with Cycle Combined the of (closure Plant PowerMW, Patagonia 60 with MMARTG05 Unit PowerPlant- Maranzana Modesto of cycle MW,267 with (TV10) Plant Power Belgrano Manuel combined the of closure MW, 284 (TV10) with Plant Power Timbúes of cycle combined the of MW,closure 330 with TG12 and TG11 Units Plant- Power (Pilar) Zanichelli Arturo incorporated, which among were dating MW 1181 phase and new 2008, to a back the continued, from supply contribution generation the 2010, During 3 wasachieved. 3 ona economic context and regulatory framework 13 (ENRE) under Resolution No. 467/08 No. Resolution under (ENRE) requested by the National Regulatory Entity proposal rates of the Energy presented Edenor 2010 During effective dateanditsconsequencesthroughout2010. emergency declaration the extensions several of to passed and enacted in early January 2002, Cambiario),Régimen del Reforma y Pública waswhich subjectwas Act Regime Exchange the to 25,561, No. Act h Mmrnu o Areet nee it by into entered Agreement of Memorandum the Federales]) la para Distribuidoras las de TarifariaIntegral Revisión [Programa Companies Distribution Federal of Revision Rates Comprehensive the c overloads andundervoltagemayoccur. approved, is operation their moment the from as limits will change (withstand failures). Nevertheless, of line unavailability and the guidelines for operation their to required follow an island mode in operation case in failures be longer not will to they lines; radial interconnection due instability underfrequency, angular and on based outages avoiding thus area, Centro-Cuyo-NOA the to supply the of safety and quality in improvement an for allow will meshings These continued. Resistencia - Chaco and closure Comahue-Cuyo San Juancito-Cobos-Monte Quemado- kV 500 LAEAT of works closure 2011, by start-up expected an with hand, other the On Chaco. of Province the of interior the supplies currently that and Resistencia-Chaco, kV 132 at operating temporarily LAEAT and Paraguay energy from import to the need from the overriding Formosa thus SADI of Province the all supplies Station Gran Formosa 500/132kV – Transformer300 MVA which and Resistencia-G.Formosa LAEAT and North, NOA from evacuated kV be to energy for allow 500 in Salta connect which up, opened were MVA 450 - kV Cobos 500/345 and Station Transformer Bracho-Cobos El lines the context, this Argentino kV. In 500 of system SADI) (Sistema Interconexión, de Interconnection of System | REGULATION ANDCONTROL n codne ih h poiin of provisions the with accordance in PublicEmergency and Amendment Ly e Emergencia de (Ley (Program for (Program rcs o ER Rslto 310 o PublicSafety forthe purposes ofadjustingitsplans. amendment on 311/01 an Resolution ENRE started of process ENRE 2010, late By negotiations startedtoextend itseffectiveterm. and2010 Decembereffectuntil31, andforce full in was Agreement Such Aires. Buenos of Province the and Provincial Government the Government, Argentine the by into entered was renewal Such 2007. 1, January from as term 4-year additional an for renewed was and (Category A and B), continued in full force and effect settlementssquatter to energyelectrical provide to contributions to allow Energy Distribution Companies and Aires Buenos of Province the Government, Argentine the The Master Agreement, entered into by and between passing torateisrecognized,asappropriate. effective item other the or one until Agreement, of Costos, Monitoring Mechanism the rates adjustment resulting from applying the Cost Energía fromderiving amount any b) la and FNEE), Eléctrica, de Nacional (Fondo Energy Electrical of Fund National the of value total the determine to used estimation the of purpose the for 25,957, CAT Coefficient amount any a) of: funds such of made be mayDeductions program). (“PUREE” Use Energy Reasonable a for Program the of implementation the from derived funds of allocation the modifying 1383/08 N° Note and effect, force having been ratified by full the Energy Secretariat Secretariat in remained Energy 1037/07 the N° Resolution years previous with As such rateproposalfiledbythecompany. on ENRE the from information more for requests 2010, During 865/08. No. Resolution Secretariat Energy the and 1957/06 No. Públicos) ratified by decree of the Executive Branch Servicios de Contratos de Análisis y Renegociación Unit Agreements Utilities of Analysis n between and etbihd s e Scin o At No. Act of 1 Section per as established ) ) establishedMMC)Memorandum underthe hl py s urel Adjustment Quarterly as pay shall Edenor settingEdenor forth theParties economic Ceiine e dcain Trimestral, Adecuación de (Coeficiente Edenor n 08 ad n 09 by 2009 in and 2008, in Edenor (Mecanismo de Monitoreo de n te eeoito and Renegotiation the and opid with complied Edenor Uia de (Unidad analysis of economic-financial operations and results 15

analysis of economic-financial operations and results

a | RELEVANT DATA | Historic values in thousands of Argentine Pesos

Dec 31, ‘04 Dec 31, ‘05 Dec 31, ‘06 Dec 31, ‘07 Dec 31, ‘08 Dec 31, ‘09 Dec 31, ‘10

Total assets (thousands of AR$) 2.041.348 2.199.429 2.254.949 2.609.665 3.026.475 3.605.551 4.078.462

Total liabilities (thousands of AR$) 1.994.876 2.205.998 1.876.857 1.890.340 2.107.545 2.518.892 2.982.669

Shareholders´ equity 46.472 (6.569) 378.092 719.325 918.930 1.086.659 1.095.794 (thousands of AR$)

Property, plant and equipment 115.171 124.264 215.782 342.749 335.722 404.310 388.770 investments (thousands of AR$)

Energy sales (in GWh) 14.752 15.677 16.632 17.886 18.616 18.220 19.292

Energy sales (in GWh) 12.652 12.693 13.421 14.776 14.916 14.599 15.401 » excluding tolls

Energy purchases (in GWh) 16.673 17.623 18.700 20.233 20.863 20.676 22.053

Energy losses 11,52% 11,04% 11,06% 11,60% 10,77% 11,88% 12,52%

Total clients 2.353.228 2.404.204 2.445.038 2.490.120 2.534.547 2.601.643 2.659.215

Total employees 2.366 2.410 2.369 2.465 2.487 2.691 2.636 (Edenor´s own employees)

Energy sales (thousands of AR$) 1.120.922 1.310.977 1.372.495 1.981.928 2.000.198 2.094.345 2.205.396

Energy sales (thousands of AR$) 1.085.229 1.254.451 1.311.532 1.888.485 1.885.711 1.959.054 2.063.867 » excluding tolls

Net income/(loss) (thousands of AR$) 9.877 (53.041) 385.951 211.015 204.864 167.729 9.134

Average sale price (AR$/KWh) 0,0760 0,0836 0,0825 0,1103 0,1075 0,1149 0,1143

Average sale price (AR$/KWh) 0,0858 0,0988 0,0977 0,1278 0,1264 0,1342 0,1340 » excluding tolls

Average gross margin (AR$/KWh) 0,0351 0,0348 0,0343 0,0481 0,0554 0,0605 0,0593

NOTE: the figures above are shown in historic values. analysis of economic-financial operations and results Values adjusted by inflation in thousands of Pesos

Dec 31, ‘04 Dec 31, ‘05 Dec 31, ‘06 Dec 31, ‘07 Dec 31, ‘08 Dec 31, ‘09 Dec 31, ‘10

Total assets (thousands of AR$) 3.504.621 3.576.450 3.534.663 3.847.606 4.134.630 4.370.741 5.033.850

Total liabilities (thousands of AR$) 1.977.736 2.199.166 1.864.313 1.873.025 2.043.064 2.188.532 2.883.871

Shareholders´ equity 1.526.885 1.377.284 1.670.350 1.974.581 2.091.566 2.182.209 2.119.979 (thousands of AR$) Property, plant and equipment 125.093 124.482 215.782 342.749 335.722 404.310 388.770 investments (thousands of AR$)

Energy sales (in GWh) 14.752 15.677 16.632 17.886 18.616 18.220 19.292

Energy sales (in GWh) 12.652 12.693 13.421 14.776 14.916 14.599 15.401 » excluding tolls

Energy purchases (in GWh) 16.673 17.623 18.700 20.233 20.863 20.676 22.053

Energy losses 11,52% 11,04% 11,06% 11,60% 10,77% 11,88% 12,52%

Total clients 2.353.228 2.404.204 2.445.038 2.490.120 2.534.547 2.601.643 2.659.215

Total employees 2.366 2.410 2.369 2.465 2.487 2.691 2.636 (Edenor´s own employees)

Energy sales (thousands of AR$) 1.120.922 1.310.977 1.372.495 1.981.928 2.000.198 2.094.345 2.205.396

Energy sales (thousands of AR$) 1.085.229 1.254.451 1.311.532 1.888.485 1.885.711 1.959.054 2.063.867 » excluding tolls

Net income/(loss) (thousands of AR$) (89.939) (149.601) 293.066 122.458 123.115 90.643 (62.230)

Average sale price (AR$/KWh) 0,0760 0,0836 0,0825 0,1103 0,1075 0,1149 0,1143

Average sale price (AR$/KWh) 0,0858 0,0988 0,0977 0,1278 0,1264 0,1342 0,1340 » excluding tolls

Average gross margin (AR$/KWh) 0,0351 0,0348 0,0343 0,0481 0,0554 0,0605 0,0593

NOTE: figures above are shown in constant currency as provided for in resolution N° 441/03 of the Argentine Securities and Exchange Commission. (Comisión Nacional de Valores).

16 analysis of economic-financial operations and results 17 the fiscalyear, asexplainedinitem11. of quarter last the during Company the by issued Notes the to due was loans in increase addition, In rates. to applied be to authorization pending MMC PUREE the of advances as is Company the by deducted increase values The such recorded. of was cause leading Liabilities AR$ in to billion, 2.189 AR$ 2.924 from 33.6%, of increase An Plan establishedbyEdenor. Inversions the of enforcement the to response a which AR$ totaled These 404.3 are amounts billion. 2009, in made investments the to have compared level 2010 similar a reaching 31, billion, 388.8 AR$ to December increased ended year fiscal during made Investments 9, item in explained As Assets. Fixed and Investments of value 5.032 billion. AR$ This was to basically due 4.371 to an AR$ increased from 15.1% increased assets total 2010, 31, December ended year fiscal the In Shareholders’ equity Total Liabilitiesand Shareholders’’ equity Total Liabilities Non-current liabilities Current liabilities b and 2009isasfollows(amountsinAR$million): for 31, years fiscal ended December 2010 structure Edenor’s CONDITION Total Assets Non-current assets Current assets | | ANALYSIS OFTHEFINANCIALANDEQUITY comparative assets and liabilities liabilities and assets comparative 5,032 2,108 2,924 5,032 787 2,137 3,878 1,154 2010 4,371 2,182 2,189 4,371 1,428 3,677 2009 761 694 by AR$303million. debts financial in increase the in consisted which and the allocation resulting from funding activities Assets, Fixed in Investments to million of 389 AR$ allocation the million, 534 AR$ of amount net a totaled which activities, operational by Flows raised Cash from derived mainly was increase 3 months) of AR$ 448 million was recorded. Such exceeding not Investments + (Cash Flows Cash in increase an analysis, under year fiscal the In during fiscalyear Total fundsraised(allocated) through fundingactivities Funds raised(allocated) through investmentactivities Funds raised(allocated) through operationalactivities Funds raised(allocated) and 2009isasfollows(amountsinAR$million): allocation fund for 31, years fiscal ended December 2010 structure or fundraising comparative The (381) 2010 448 303 527 (404) (162) 2009 102 668 analysis of economic-financial operations and results 18 c Total office equipment/tools transportation and Computers, Transfers Distribution Item allocation by Investments allocation andactivity: following charts. They are broken down based on the in specified are made investments of Amounts as thoroughfare, described intherelevantexhibits. public in safety and purposes important investments were made for environmental Besides, products. and the service of standard quality and indicators delinquency and fraud same new of supplies. connection the to and structure of facilities improvement the to the applied of was most investment demand, in increase this meet To in MW (4211 2010 vs.3,944MWin2009). 6.8% increased demand energy maximum the and 2009) in GWh 20,676 vs. in 2010 GWh (22,053 5.9% grew demand energy The increase incosts,continuedtobeapplicable. the and rates on freeze the of consequence a as resources, of availability on restrictions year, the during that considering even crisis, 2002 to prior level remained constant as compared to those years It is worth noting that the at recovery the investment of AR$388,771. Investment made during 2010 reached thousands Investment EDENOR’S OPERATIONS | | INVESTMENT continued its efforts to keep the the keep to efforts its continued Edenor AR$ millions Amounts in 388,8 112,8 234,4 41,6 11 29 60 % Total etc. office equipment/tools, Systems, realproperty, telecommunication Telecontrol and safety andlegalissues Environment, road Energy Losses Network Improvement Network Structure New Supplies Item Investments byactivities AR$ millions Amounts in 388,7 145,8 111,5 41,6 16,8 21,9 43,8 7,3 11 11 37 29 % 2 4 6 analysis of economic-financial operations and results 19 » » » during performed 2010 werethefollowing: works significant most The

h floig ok wr promd among others: performed, were works following The Sub-transmission Structure among others: performed, were works following The Transmission Structure was provided. customers and the by requested connected, increase were power requests supply New New Supplies » » » » »

No. 698,Zappalorto-Malvinas Substations. line transmission electrical the to connected be kV - 2x40 MVA, and 1,1 km 132 kV wire laying to Continuation of Paso del Rey Substation 132/13,2 kV -2x40MVA. Continuation of Nordelta Substation 132/13,2 -Colegiales Substationsendedin2008. Nuevo Puerto of tranche first The Substations. Costanera and Malaver Colegiales, between Nuevo Puerto Substation and in 220 kV underground wire Transformerlaying MVA 300 kV 220/132 a of installation Substation, Malaver in Bars kV 220 of execution 1875/05; Resolution Secretariat Energy per as area, “Gran Aires” Buenos in located Plants in Energy Evacuate to Capability the increase to works Continued Nogués andPilarSubstations. Munro, Casanova, in power reactive the offset Installation of Capacitors Banks with 54 MVAr to 220/132 kV-1x300MVA. Substation Colegiales of enlargement Initial » »

Various investments have been made in all all in made voltage levels: been have investments Various Network Improvements among others: performed, were works following The Distribution Structure » » » » » » »

230 MVA. MVA. 230 centers which increase the installed power to existing in increases power 561 and Centers 384 new Medium/Low Voltage Transformation various substations. in feeders Voltage Medium between Sealings Malaver, Pilar, Escobar. CR y Tortuguitas Maschwitz, Ford, López, V. Pantanosa, Melo, Saavedra, Puerto, Agronomía, Güemes, Luzuriaga, Ituzaingo, Nogués, existing and San Justo, new G. Catán, San Fernando, Del Viso, Nordelta, in Altos, Rey, del Paso Substations: feeders new 53 Substation from 2x40MVA Malvinas to3x40 MVA. of enlargement Initial air line. Substation. Renewal of 6 km of three double-lead 132 kV Pantanosa in network to MT outputs the 8 with board Voltage Medium y Assembly of a 40 MVA 132/13,2 kV transformer kV -2x80MVA. 132/13,2 Substation Luzuriaga of Completion Substation-Colegiales Substation. Nuevo Puerto 115, No. line transmission electrical to connected be to laying wire kV 132 km 4 kV. 132/13,2 - from 6x12.,5 MVA - 27,5/13,2 kV to 2x80 MVA Completion of enlargement of Melo Substation analysis of economic-financial operations and results 20

M $ 100,0 150,0 200,0 250,0 300,0 350,0 400,0 450,0 ANNUAL INVESTMENT and the existing radio-link systems adjustmentwithradio-linksystemsexisting the and systems radio-link new of installation of works The » 50,0

0,0

Telecommunication andTelemonitoring » » »

hc hd rdc qaiy rbes has also beenreinforced. problems quality product had Network which replaced. been have networks air Network: Voltage Low equipment inMediumVoltage centers. as as well replaced were transformers Voltage underground network was made, Medium/Low an Moreover, important boards. replacement of outdated technology Voltage Medium installed and been in have Substations protectors arc at internal replaced been have Voltage: Medium other elementshavebeenreplaced. and batteries services, auxiliary Substations’ the In Substations. Head at system mitigation fire a implementing at aimed out, carried be to of 132 and 220 kV were replaced. impedanceWorks protectorscontinued of wires and Voltage: electrical lines High 1992 1993 1994 wths scinlzr and sectionalizers Switches, 1995 eim otg switches Voltage Medium 1996 Underground and and Underground 1997 1998 1999 2000 shown inthefollowingcharts: is investmentsmadedistribution Annualof3,226.2. m$ AR$ totals date to 1992 in business started by it made investment historic The Centers. network air and Transformation the in continued was process telemonitor Network Voltage Medium Regardingtelemonitoring,Undergroundand Air the in actions telemonitor sectionalizers. to Cameras Substations Dome new and in system Control Access and Surveillance Video the installing continued Edenor quality ofservice. better a and with services applications video and voice IT implement new support to transportation capacity extending developments, its in department System the supports and services new of provision the enables which service, into The new Corporate Network was installed and put Telecommunication main network transportationneedswerecontinued. the meeting at aimed capacity increased with equipmentstate-of-the-art 2001 2002 2003 2004 2005 2006 2007 since Edenor 2008 20092010 analysis of economic-financial operations and results 21 d Total inflation-adjustedinvestmentamounttotalsAR$ billion (60%) as a result of the repurchases made. current investment and cash, increased by AR$ 337.2 As compared to the previous year, financial debt, net of AR$ 21.2billionasaccruedinterest. total including million, AR$1,089.2 Company’s totaled debt financial the 2010, 31, December of As Financial Debt OFMAINSOURCESFUNDING M $ Dólares 1000,0 1500,0 2000,0 2500,0 3000,0 3500,0 | | 500,0 100.000.000 150.000.000 200.000.000 250.000.000 CUMULATIVE ANNUAL INVESTMENT 50.000.000 FINANCIAL DEBTANDDESCRIPTION 0,0

1992 0,0

1993 2011 1994 2012 1995 1996 2013 m$ 4,648.3. 1997 2014 1998 2015 1999 2000 US$ million): in (amounts chart following the in shown is debt financial outstanding of structure maturity Principal rate of10.1%. of term approximately 10.6 years and an average average estimated an has profile debt current The 2016 2001 Floating Par 2013(AR$) 2017 2002 2003 2018 2004 2019 2005 2020 2006 Par 2022 Par 2017 2007 2021 2008 2022 20092010 analysis of economic-financial operations and results 22 10,00% 12,00% 0,00% 2,00% 4,00% 6,00% 8,00% decrease initsdebtaveragerate. bond, 2022 for swap bond 2017 the of consequence a as and 2010, In principal healthy and structure. comfortable thus market, a the creating in value debt maturities, the principal Company capitalizing the its above, extended chart considerably the in shown As AVERAGE DEBTRATE 8,67% 1995 1996 8,67% 1997 8,79% 1998 7,30% xeine a experienced Edenor 1999 8,06% 2000 8,93% 2001 4,34% 2002 4,42% 2003 3,60% 2004 4,73% 2005 6,44% 2006 3,80% 2007 4,88% 2008 9,06% 10,23% 2009 2010 9,78% analysis of economic-financial operations and results 23 n retn, u t lc o tasaec and transparency of lack predictability of theregulatorysystem. to due Argentina, in uncertainty prevailing industry’s energy the reflect Ratings expected. in as work to increase failed (MMC) the costs recover to applied by mechanism the years, authorized recent in rates entities regulatory in Argentine increases the Despite in delays recovering highercosts. possible of consequence a as margin distribution its of falls potential and prices volatile updating. Nevertheless, ratings anticipate continued and increases rate recent the of result a as profile financial its in improvement and market domestic the in company distribution energy important most Ratings reflect Ratings issued bytheCompany. series all to outlook, stable a with both level, wide an international level and a A1.ar rating at a country- at rating B2 the maintained America Latin Moody’s of execution the hedge instruments. by mitigated Argentine partially in pesos), generated domestically are while funds U.S.dollars in denominated largely is debt its (as mismatch currency of risk any to exposure the consider and Argentina, in risk mainly regulatory and political high ratings counterpart, a As and agoodcashreserve. maturities debt financial of schedule auspicious good an coverage, service debt the of ratios favorable by consider also held by the Company, position defined competitive ratings Edenor’s growth andafinancially-sound sovereigngrowth. benefitting from the prospects of a strong economic from Company the prevents currently which risk, regulatory the of influence intense the outlook, reflect they stable a with ratings, “raA” regards As with “raA” theUS$600millionNotesProgram. As of September 30, 2010, Standard & Poor´s rated Company’s RiskRating Edenor’s prevailing position as the as position prevailing e » » 1,000 facevalueofNotesClass7offered: U.S.$ each for exchange in receive will Company, the by accepted is offer whose and Offer Purchase price. Holders of Notes Class 7 who duly submit the repurchase a repurchase cash at 7 Class Notes of offering public made Company the Offer, the Swap and Offer Purchase the with Simultaneously » » be underwrittenasfollows: As provided for in the Price Supplement, Notes may U.S.$ 300million. to up of value face a of for 2022 due Notes placement fixed-rate swap or offering the public and launched issue Company the 2010, October In Notes Issuance OFFUNDING

| | up to and including November 1, In the 2010,case of Notes Class 7 offered after such Date, but U.S.$ 1,045. before offered 7 Class October 15,2010,U.S.$ 1,060,and Notes of case the In fractions. Notes of instead cash in amounts additional and 80.90 U.S.$ plus 2022, due Notes of value face 1,000 U.S.$ 2010, 1, November including and up to but Offering, Early the the Perform after to offered deadline 7 Class Notes of case the In amounts incashinsteadofNotesfractions,and of value face Notes due 2022, plus U.S.$ 1,000 100.90 and before additional U.S.$ offered 2010, 7 20, Class October Notes of case the In ratios establishedbelow: No. 7 due 2017 as a swap for Notes, at the swap Class Notes fixed-rate delivering by kind, in (ii) Notes placementandawardprocess,or the on based Date Issue the to prior Company the by fixed be to price issue the at cash, in (i) DESCRIPTION OFMAINSOURCES analysis of economic-financial operations and results 24 06 n U$ 600 s rnia fo Senior from principal Notes due2017. as 36,000 US$ and 2016 due Notes Par fixed-rate from principal as 7.3 Company billion US$ approximately the repaid operations, and repurchased market 2010, 31, different December in ended year fiscal During Repurchase ofNotes 2022. due lump payment a sum in amortization principal with year, each rate, fixed 9.75% a payable semiannually on October 25 and April 25 at date issue the from as interest accrue amount, principal the of 100% to 9, No. equalprice issue an and term, twelve-year a with Class Notes billion 230.3 U.S.$ new The to November1,2010. up delivered billion, 33.6 U.S.$ to equal value face 9.75% fixed rate and purchased Notes Class 7 for a a at 2022, due Notes for 2010, 1, November to up for a face value equal to U.S.$ 90.3 billion, delivered the offer, swap 7 Class Notes exchanged and the accepted Company of result a as Furthermore, value equaltoU.S.$ 140million. face a for Notes issued Company the cash, in Offer On October 25, 2010 and as a result of the Purchase rate Par Notes dueOctober2022. interest in 2011 and 2012 in relation with the fixed- repay to base), (EMTA transactions derivative NA Bank Chase JPMorgan with the executed fluctuations, Company rate exchange peso Argentine For the purposes of covering the risk of U.S.dollar/ Interest couponswaps terminated. were agreements these 2010, 31, December of As 55 US$ for Bank million (atAR$4.3424exchangerate). Hedging Standard with Currency Agreements Foreign (“NDF”) Forward Deliverable Non executed rate Company the peso, exchange Argentine and dollar covering US between risk of fluctuation purpose the For Foreign ExchangeHedging in full. amortized been had loan the 2010, 31, December 5 + rate BAIBOR ofAs payment. interest monthly to subject points floating a accrues loan This consecutive installments. six includedmonths of It grace term.and may yearbe amortized two in 18 formonthly out taken were million50 AR$ for loan aNación, Bancowith credit of line a of part as workforcemanagementand the On December 19, 2008, for the purpose of optimizing Line ofCredit-BancoNaciónLoans Rate Par Notesdue2019). Floating as billion 12.6 US$ and 2022, due Notes as principal Par as billion 230.3 US$ billion 2017, due Notes Senior 24.8 US$ (including debt Company billion financial 267.7 US$ the reached dollars the US in 2010, denominated of 31, principal outstanding December of As paying 100%ofprincipaldueundersuchSeries. 2016, due Notes Par fixed-rate redeemed fully on 13, Furthermore, December 2010, the Company analysis of economic-financial operations and results 25 f dates, intheeventofexchangeratefluctuations. maturity interest three the on amounts repay to bound is the regards as denominated in foreign currency that andthe Company coverage economic financial guarantee instruments These 10/25/12 04/25/12 10/25/11 04/25/11 Date Settlement decreased, from AR$ 222.9 billion in 2009 to to 2009 in billion 222.9 significantly AR$ has from Income decreased, Net Operational the 2009, 31, December ended year fiscal Regarding Net result Income tax Subtotal Extraordinary income Ordinary netincome expenditure Other incomeand income Financial andholding income Ordinary operational follows (amountsinAR$million): as is 2009 and 2010 31, December ended years Edenor’s | ANALYSIS OFFINANCIALRESULTS oprtv icm srcue f fiscal of structure income comparative Liabilities Amount in thousandof U.S. dollars Underlying 11,227 11,227 11,227 11,227

(159.8) (75.1) (74.0) (75.1) 2010 94.5 (9.8) 1.1 0.0 in thousandof Underlying AR pesos Liabilities Amount 51,578 51,578 51,578 51,296 222.9 169.9 2009 169.9 (76.3) (79.3) 90,6 23.3 0.0 increases recorded during the year under under year the during analysis. and recorded cost the of marketing increases result a as expenses, expenses administrative distribution billion, and 74.0 transmission in increase AR$ an by influenced totaled mainly 2010 31, December ended year fiscal the during recorded loss Net and transactions income/(loss) fromholdings. financial on tax in increase liabilities, and assets from derived income/(loss) difference rate billion exchange the by explained mainly 159.8 AR$ of is loss variation This analysis. under year a the during to 76.3 2009 AR$ in of loss billion a from increase, significant a experienced they results, financial Regarding • • • the particularprogressofcertainlineitems: noting worth is it standpoint, operational an From expenses. operational in increase underlying 18.5% the is decrease such for factor main The 2010. in billion 94.5 AR$

,4 as t 09 ered o ,5 as at 2010 year-end, asexplainedinitem20. days 7,25 to year-end 2009 at days 6,04 from affected adversely was ratio Delinquency 11.88%, vs. 2009) accordingtoTAM. 2010 (12.52%, year in previous recorded the level the to compared increased item in explained As positive item 15. in a detailed as had 5.9%, of variation has year-over-year which rise demand the by explained primarily the is to This year. previous compared as 6.7% by increased have item in explained As eeg lse have losses energy 19, , energy purchases purchases energy 18, analysis of economic-financial operations and results 26 h Earnings for2010fiscalyear Unappropriated Retained 2010 fiscalyearloss by Item absorbed the be loss Earnings. Retained proposes year Meeting Unappropriated fiscal General 2010 Directors that Ordinary of Shareholders’ Board The FORTHEYEAR g their estimationformula: and year previous the to compared as ratios economic main Company the reflects scheme following The

before taxes Ordinary profitability Liquidity

investments Long-term capital Creditworthiness RATIOS | | ALLOCATION OFINCOME(LOSS) MAINECONOMICRATIOS

Net worthexcluding Non-current assets fiscal yearresults Current liabilities Current assets AR$ millions Total liabilities (Loss)/ profits before taxes Total assets Amount in Net worth (74.0) (74.0)

i Financial and Statements. Report Annual this approves Meeting that General Ordinary Shareholders’ the by The Board of Directors’ compensation shall be fixed demands (37.7%), and which showed a 6.5% 6.5% a showed upturn. year-over-year which and (37.7%), large demands of performance the demands, with noting a share similar to that of residential worth is It total volume (around40.4%). demand the increase in share high year-over-year its to and its (6.1%) to due both trend, upward this in critical was demands, large of that Performance of residential demand, in addition to year-over-year 5.9% a increase in2010. had demand Energy | BUSINESS MANAGEMENT BUSINESS 12.31.2010 (3.44%) 0.72 1.47 0.77

12.31.2009 8.13% 1.00 0.91 0.84 analysis of economic-financial operations and results 27 Trade equipment andmachinery Metallic products, products Non-metallic mineral tobacco products Food, beverageand natural gasandwater). Basic services(Electricity, demand isconsiderablyreduced (2.0%). total in share its flow, demand total even the exceeding (7.4%), rates other all above rate growth a recorded settlements squatter emergency While demand flow. demands small (8.5%), representing a 6.5% contribution to the total of that to equal demand total in reflected a 4.4% rise. This segment also has a share (T2) kW 50 and kW 10 between demands Medium customers. residential and large of that than lower noticeably is segment such of increase the to contribution its relatively low share in total demand (8.0%), therefore recorded a 4.9% upward trend. This segment has a (T1G) kW 10 to up use general for demands Small Textile products Wood andwoodproducts Basic metallicindustries Paper andpaper-derived products Chemicals and communications Transport, storage and personalservices Community, soc. Activity of largedemandswasasfollows: in of demand the main activities Increase/decrease

Demand % Demand +15.0% +12.2% +10.9% +24.4% +7.6% +3.0% +5.4% +1.8% +2.7% +2.5% -0.2% -1.1%

demands T2 Medium demands T1 Small Rate following chart: the to according distributed was power This MW. 375 of increase power contracted a representing 2010, During as comparedtothepreviousyear. increase 6.7% a representing GWh, 22,052 totaled demand such supply to purchases energy while in GWh, 19,270 was tolls, and sales energy including distributed volume Energy calls receivedbytheCustomer CareCenter. increasing constantly all of 5% representing currently channel, contact important an 2009 became during implemented claims technical and Text messages balance. demands T3 Large outages due to non-payment by clients with with force and effect, and led to increases in clients by full in still is kWh, 1,000 exceeding consumption non-payment to due forbids outages which Ombudsman, the by as Power,requested Judicial the by rendered injunction preliminary The requests. commercial of number greatera to addition in lot, same the in built were apartments or housing where points those from the division” as “supply for stands requests ongoing yet of ground basis, bi-monthly a on kWh 1,000 exceeding consumption energy on significant impact a with 2008, Argentine October the in by Government declared increase rate The Total 63,986 (“SMS”) used to make for questions Customers 63,986 63,264 utmr wr connected, were customers 425 297 Power (MW) Edenor’s 375 294 11 70 Edenor’s area, analysis of economic-financial operations and results 28 and verysatisfied. of 2009 (78.5%) with 87.8% that of customers satisfied than better customer largely was of evaluate measurements result such consolidated to The as levels. satisfaction so obtained were results measurement October, and June During countries. CIER percentage of satisfied average the very exceeding and customers), (satisfied level Satisfaction involved. were America Central and America South energy in countries of 13 from aspects companies distribution different 56 distribution. the to relation in at measuring T1 Residential customer satisfaction Regional, Energética Integración Regional Commission the Integration year, by Electric lead study consecutive the in fourth participated the For calls managed attheCAT. of control telephone efficient an regards and care as customer requests ENRE’s compliance permit with will which access, online of hours 50,000 and capability multimedia listening with mode, Recording Total the under channels, Digital Recorder (NICE) new with 120 simultaneous recording a incorporating process, upgrading Telefónica, Center Care Customer The i udron a technology a undergoing is “CAT”) achieved an 80% General 80% an achieved Edenor (Centro de Atención Atención de (Centro ), aimed “CIER”), Cmsó de (Comisión Edenor from a positive result of 84.2% in 2009 to 82.3% 82.3% in 2010. to 2009 in 84.2% of result positive a reduced from sensitively was satisfaction Large Customers conducted, measurements to According • • • Large to following lineitems: sold were Customers for services an amount of AR$ 6,200,000 in the 2010, During Energy the of requirements Secretariat Resolution1281/06. the following the Medición de Demanda, of Systems authorization Measurement Demand operating and technical and installation of stage second the addition, In Power Steam Lata Station. la de Loma with customers supply agreements were executed on behalf of energy plus ten first the November, In 1. August customer,effective a of behalf on station Piedrabuena with supply energy electrical and Resolution 1281/06, Secretariat Energy the to Pursuant service. to invoicing. of days 1.5 to connected equal was Delinquency were users large 7 and T3 customers 189 2010, During of 7.5%. of energy demand toll in increase an and 5.5% of energy of demand T3) 3, (Tarifa 3 Rate in derives increase an from outcome This growth. demand 6.5% a large recorded 2010, in above, mentioned As j | | LARGE CUSTOMERS Counseling andother:AR$350,000 Maintenance: AR$400,000 Projects andworks:AR$5,450,000 otatd gi te power the again contracted Edenor “SMED”) was completed, Ssea de (Sistemas Edenor’s analysis of economic-financial operations and results 29 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1996 1999 1998 1997 1995 N˚ofClients

marketed energyvolume: h floig hr sos h pors of progress the shows chart following The Guma 100 100 114 121 124 124 109 98 93 81 80 71 71 79 87 72 GWh N˚ofClients 2459 2262 2334 1964 1887 1707 1459 1440 1552 2009 2118 2082 2072 1749 1366 681 pn akt ih epc t lre sr and users large to respect with market open Edenor’s

GumeyGupas 541 534 526 477 426 624 313 232 627 650 516 575 563 312 204 118 GWh 1432 1361 1360 1147 1315 1268 1022 1131 1153 1160 641 909 953 708 536 150 energysales Sharein 20.2% 19.9% 20.0% 17.4% 19.3% 19.0% 14.3% 17.0% 19.8% 22.9% 24.0% 25.0% 24.7% 21.4% 18.0% 8.5% analysis of economic-financial operations and results 30 were estimated based on the new subsidized subsidized new the on based estimated were 2009 to the same periods in 2010. These schemes September and as as in well August 2009 July and ENRE of apply the same two rate schemes applied in virtue June by authorized 421/2010 ENRE No. Resolution 2010, 21, July On been appliedsinceMay1,2010. have should that 7.103%, of value a for period, 2010 2009-April November the for Agreement, of Memorandum the of I Exhibit to pursuant MMC8 of application the regarding ENRE with approval 2010, 11, May On month period. points supply kWh/two- 1000 exceeding of not consumption with that includes additional ($), as Sp charges collected amount aggregate ratio, the that regards as resolution, such on Based program. PUREE the under period, month kWh./two- 1000 exceed not does consumption whose customers subsidize to applied ($/kWh.) ratio kp the the calculate to modified used formula of calculation 45/2010, means No. by Resolution ENRE, the ENRE 2010, 2, March On These immediately beforethosementionedabove. resolution. first force in schemes rate the pay to had the beneficiaries by governed are customers those of most that noting 628/2008 324/2008, No. No. Resolution ENRE by Resolution enforced that from and ENRE by enforced 300,000 scheme of rate the from average exempted were customers approximate an 2010, In Concession Agreement. k h idxn poiin st ot in forth set and provisions indexing covenants the adjustment dollar-based any 2002 continued in effect, rendering unenforceable 6, January on enacted 25.561) N° Ley Monetario, Régimen del Reforma y Económica Emergencia and Emergency de(Ley 25,561 No. Act Reform Regime Monetary Economic the 2010, During | | RATES ie a eus for request a filed Edenor to to Edenor Edenor’s

been appliedsince November1,2010. have should that 7.240%, of value a for period, 2010 2010-October May the for Agreement, of Memorandum the of I Exhibit to pursuant MMC9 of application the regarding ENRE with approval On November 12, 2010, No. Resolution ENRE again. once applied was 628/2008 by rate 2008 approved October the scheme 2010, 1, October of As within thesameenforcementperiod. additional charges value to be applied by PUREE the of modification the to led schemes rate these by the Argentine Government. On the other hand, identifying amounts subsidized and not subsidized of invoices, all charges floating the down breaking time. winter during increase registered consumption energy electrical the to due kWh bi- 1,000 exceeding consumption monthly with customers residential of invoicing the on impact the reducing at aimed was schemes these of application The 347/10. No. Resolution Secretariat Energy in forth set prices seasonal Edenor filed a request for continued Edenor analysis of economic-financial operations and results 31 Nominal (withoutinflation) U.S.$ Cents/kWh.ExchangerateusedU.S.$1 =AR$3.9758 Values includealltaxes Edenor ratesapplicableatDecember2010 Real (withinflation) Edenor rate was subjecttothefollowingcumulativevariations: Since the concession started, INTERNATIONAL MARKET EDENOR RESIDENTIALRATE SHAREINTHE U$S centavos / kWh Consumption: 275kWh/month 10 12 14 16 18 20 22 24 26 28 0 2 4 6 8 Edenor 2,5

14,1 Perú average Edenor rate average September 1992 Francia 16,8 304.84 86.63 Inglaterra 18,6 November 2010 España 23,1 144.31 144.31 25,0 Chile Variation % Brasil 25,1 -53% 67% analysis of economic-financial operations and results 32 U.S.$ Cents/kWh.ExchangerateusedU.S.$1 =AR$3.9758 Values includetaxes,exceptforVAT Edenor ratesapplicableatDecember2010 INTERNATIONAL MARKET EDENOR INDUSTRIALRATE SHAREINTHE U$S centavos / kWh Consumption: 1095MWh/monthMaximumdemand2.5MWinMV 10 11 12 13 14 15 16 0 1 2 3 4 5 6 7 8 9 Edenor 3,8 Perú 7,7 Francia 10,0 Inglaterra 13,2 13,4 Chile 15,3 Brasil España 15,6 analysis of economic-financial operations and results 33 xedn 1 k a rsdnil ead (higher demand residential as kW not 10 demandexceeding energy the all for subsidy constant 1169/08,July/09,applying100%andandJune ato passed, No. Resolution Secretariat Energy was staying. partially 652/09 Energy No. Resolution Subsequently, Secretariat consumption. minor for subsidies larger granting energy, demanded per as prices differential residential with set segmentation whichdemand force, in was 1169/08 No. October,SinceSecretariatEnergy Resolution2008, demand slight the to reduction recordedlastyear. opposed as rise demand a in noted be demand should It in 2009. to compared increase as 6.7% representing GWh, customers, including Large Users, reached 22,053 for purchase energy 2010, During l 10,00 20,00 30,00 40,00 50,00 60,00 70,00 0,00 | ENERGY PURCHASE | SEASONAL MARKETPRICE(AR$/MWh) Nov. 01 Abr. 02 21,90 May. 02 Jul. 02 30,08 Ago. 02 Oct. 02 29,99 Ene. 04 Nov. 02 29,48 own own Edenor’s Ago. 04 Feb. 04 35,70 Precio deMercadoEstacional($/MWh) Sep. 04 Dic. 04 44,45 MWh. The following graphic shows the average average purchase pricevariationforEdenorsince2001: the shows graphic following The MWh. AR$/ 61.59 of price annual average an at market seasonalthe at energy the all purchased Edenor Resolution No.652/09butfor2010. by applied method same the following issued, was 347/10 No. Resolution Secretariat Energy 2010, In well-differentiated fontandcolorinallinvoices. a with Subsidy” “ArgentineGovernment legend the established that Distribution Companies must include furtheris itkWh/bim.,exceeding demandand1000 residential of type same the all for sector each includedin price each to applied is subsidy 70% a September/09, and August In consumption). lower consumption sector prices are matched with those of Ene. 05 Dic. 05 48,84 Ene. 06 Dic. 06 51,07 Ene. 07 Dic. 07 52,63 Ene. 08 Dic. 08 54,83 n.0 Ene.10 Ene. 09 i.0 Nov. 10 Dic. 09 60,80 61,59 analysis of economic-financial operations and results 34 100% 120% 140% 160% 180% 200% 20% 40% 60% 80% 0% MARKET PRICEGROWTH(%) Nov. 01 Abr. 02 0% May. 02 Jul. 02 37% Ago. 02 Oct. 02 37% Ene. 04 Nov. 02 35% Ago. 04 Feb. 04 63% Sep. 04 Dic. 04 Crecimiento (%) 103% connections being standardized. and networks and suitable, made and shielded were conducted resulting in small dwellings being clandestine 210,000 were inspections customers standardized, 9,000 recovery, energy Regarding facilities vulnerability. to re-define new technological criteria to reduce the most the report and clients non-deprived by cases fraud significant criminally to with advisors closely legal its working continued Company The direct impact a on had the which non-technical factors the of losses one increase. was homes deprived these by theft energy network. The the todemand energy greater a causes winter during appliances demand.Themassive andsimultaneous suchuseof natural network, gas greater which caused energy a home-manufactured were identified of in deprived homes types with no accessappliances usedto several heatingfor supplying andthe waterhot winter, In compared to2009. as losses of value reduce to failing thus followed; During 2010, the energy recovery plan was partially m | ENERGY LOSSES| Ene. 05 Dic. 05 123% Ene. 06 Dic. 06 133% Ene. 07 Dic. 07 140% Ene. 08 Dic. 08 150% n.0 Ene.10 Ene. 09 i.0 Nov. 10 Dic. 09 178% 181% analysis of economic-financial operations and results 35

10 15 20 25 30 35 ht h nw ae cee a te greatest the had 1,000 exceeding consumption scheme on level increase rate new the that considering increases; rate pay to reluctant being for status delinquency a with bi- and basis monthly a on kWh with 1,000 exceeding customers consumption a those to supply of interruption the on based actions delinquency-related taking prevents filed which 15/2009 Ombudsman, action by legal in 2009 January in on served injunction preliminary the by affected adversely was balance delinquency The days. 7.25 to days 6.04 from increased days invoicing equivalent in expressed balance delinquency the 2010, During were inspections Night malls. and neighborhoods out in deprived carried were inspections Anti-fraud points abovethatofpreviousyear(11.88%). Móvil, Anual “TAM” ) (Tasa of total losses was Rate 12.52%, 0,64 percentage Annual Floating 2010 n 0 5 | ENERGY LOSSES ANNUAL RATE (%) DELINQUENCYMANAGEMENT 1992 30,00 1993 29,33 1994 20,20 1995 16,97 1996 14,37 1997 11,73 1998 10,66 from from Edenor 01 10,00 10,15 1999 Edenor 2000

11,06 2001 » » » » Such actionsincluded: in rise injunction. preliminary the with any interfere not did attack which actions alternative to with cases delinquency launched was plan comprehensivea analysis, under year the During of collections. development normal altered injunction this kWh, Edenor’s management. rate of annual beginning the since losses the energy of progress depicts figure following The remain that night. at open shops those in conducted further Supply outages, with notice served on ENRE, on served notice with outages, Supply customers’ of images dwellings andrequeststochange titlethereto. with inquiries situ In encourage delinquentcustomerstopay. and negotiate to calls telephone Customized to encouragedelinquentcustomerspay. logo VERAZ the with reminders payment Special 12,32 2002 12,65 2003 11,52 2004 10 11,06 11,04 2005 2006 11,60 2007 10,77 2008 2009 2010 11,88 12,52 analysis of economic-financial operations and results 36 described aboveamountedtoAR$4.8billion. overdue of and actions collections in all the processes involved accounts plan, this of result a As » » inactive balancethroughDecember2010. of 37.7% representing billion, 3.8 AR$ of amount aggregate disconnected an was reached have supply gauge) their electric removing by whose customers to (belonging accounts inactive from Collections BALANCE (INMILLIONOFAR$) amn rcvr atos n h cs of means oflegalactions. case by balances, the overdue significant with in accounts actions recovery Payment situ in Inquiries. from resulting re-categorizations Rate h (changeoftitle). upon non-compliance with section 2, paragraph i.6Dc0 i.8Dc0 n.0Fb1 a.0Ar1 a.0Jn1 u.0Ao1 e.0Ot1 o.0Dic.10 Nov.10 Oct.10 Sep.10 Ago.10 Jul.10 Jun.10 May.10 Abr.10 Mar.10 Feb.10 Ene.10 Dic.09 Dic.08 Dic.07 Dic.06 analysis of economic-financial operations and results 37 actions wereprimarilytaken. operative technical following the period, the Within o Investments Energy Recovery Maintenance Remedial MT-BT Maintenance Preventive MT-BT ACTS | TECHNICALMANAGEMENT | Reviews Projects (u) Inspections T1,T2andT3(u) Change intransformers(u) Tree pruning(u) Change inprotectionandhandlingequipmentchambersplatforms(u) Connections andrepairofterminalsinundergroundnetworks(u) Changes inposts(u) Claims inairandundergroundnetwork(u) Adjustments Eye reviews Tree pruning(u) Changes inconductors(mt.) Posts, Protection/handlingelements(u) graphics Thermo CONCEPT Platforms (u) bers (u) Terminals, PlatformsandCham- Conductors (km) wires (u) wall-like cabinet,connection Eye reviewcornerbox,mailbox/ Conductors andposts(km) AMOUNTS 412,374 103,120 239,138 14,541 20,861 14,654 16,652 15,410 24,439 2,094 6,009 6,260 6,935 7,455 474 751 analysis of economic-financial operations and results 38 a betterway. reducing response times and guiding workforce in were introduced teams to deal with certain claims, significantly motor-driven claims, technical with Towhen dealing and promptness flexibility achieve enhance to as workforce andquality. so given serially were courses recycling and training technician year, the During » » » accomplishments significant achieved during2010aresummarizedbelow: some such, As stand out: following the which among tasks, maintenance and planning of development the in introduced In the High Voltage area, improvements have been certification 9001:2000 ISO preservation wassuccessfullypassed. for audit IRAM were successfully passed: preservation certification for audits IRAM » » » » rdig ec Te opn blee that believes Company The etc. bridging, spots hot replacement, equipment removal, and installation down-leads as such facilities, operating with tasks approaching in beneficial is which substations, in area technical contact In particular, was training on provided potential increase the number of to tasks being carried out. companies both allowing company, that substation with exchange training for Uruguay from involving UTE with signed agreement out an under equipment carried tasks voltage on provided be to continued Training No. 311/01. Public Security System, as per ENRE Resolution Emergencia, “POE-NG3”); de Operativo (Plan Plan Operating Emergency ISO 14000,inEnvironmentalManagement; analysis of economic-financial operations and results 39 » In theControlCenterarea: » » » » h rfrihet f h Mdu Voltage Medium claim handling office was completed: the claim the of refurbishment The the needtoprogramout-of-service equipment. minimizing performance, enhanced overall an workprograms,of frequency times,resulting in maintenance system, up-to- will allow This for the the to re-analysis incorporated modes. being upon method, failures date avoid to as so with dealt be adjustments and checkups that reliability-basedpermitswhich2 method, RCM the incorporating is system maintenance The its performance,reducingmaintenanceneeds. thus enhancing reliability of the equipment and gas, SF6 in arc the equipment extinguishing of capable state-of-the-art with technology volume oil reduced and compressed air the replacing breakers, circuit kV 220 and 132 to made were changes technology 2010, During pluriannual likethisproject. are which of some pursued, be to continued will projects of andkind thistherefore,Innovation); Development (Research, Innovación) e I+D+I for potential Company considers that this activity has addressed.The be too interestto oftopics various much allow will that University the withcollaboration in works developmentof the forprojects other analyzing further is Company The time. repair lowest the and ditching of number reduced a on based impact environmental minor a with failures hydraulic locating quickly at aimed is Development.developmentResearchandThis Universidad Tecnológica with agreement Nacional an in in Pacheco forth set for as out carried being are wires OF in leaks hydraulic locating for methodologies measurement of tests Field without affecting servicecontinuity. maintenance facilities considerably the will improve methodology tasks this of under implementation and development Ivsiain Desarrollo (Investigación, » » » » MORÓN » times restoration experienced a50%improvement. date, to Up telemonitoring. of in terms in solution cost low very a to lead market the available widely technologies The these Modbus. of merge is encryptioned and mobile transported on based is finally protocol the while (GPRS) service telephone system bearer data The In Operationareas: » » » etr ws nrae, ersnig 8,617 a representing increased, was Centers Transformation 76 kVA. existing in 22,960 installed Power by power installed increasing added, were Centers Transformation new 133 rearranged inother18feeders. were loads and areas critical in quality the service improve to Substations new different added in were outlets Voltage Medium new 4 and Mejía Ramos Casanova Substations. Castelar, discharge to 6 new feeders were laid in Luzuriaga Substation the incorporationof6newfeeders. a 40 MVA transformer was built. This allows for with Pontevedra in Substation Pantanosa The restoration times. service electric reduce and decisions prompt take to as so center,time, control real the in to network Voltage Medium the in gauge short- circuit a at generated information designed convey were was to system points This installed. telemonitoring finally 300 2010, In was deployed. system location geographical units mobile The via datawasdeployed. units mobile to handling claim for system The into operation. put and built was office handling centralized analysis of economic-financial operations and results 40 » NORTH » » » » » » »

to negotiate the remaining fiber capacity. capacity. fiber remaining the negotiate to able be also will CyCSA and telemonitored be will elements handling manner, this In posts. for on of the cables laying fiber low optic voltage permits obtain to Merlo and Ituzaingó Matanza, La Hurlingham, Morón, in taken were actions preliminary CyCSA, company the Together with during performance high demanddays. their cleared, improving were largely feeders voltage medium 10 Matanza continued. La and Morón Merlo, of in districts the located Viviendas) de Federal (Plan Housing Plan Federal the under neighborhoods for developed be to continued networks New + JobPlan). wells water Trabajo”+ Agua “Plan (Waterof electrification the in AySa and Matanza La of with We the municipality closely are working still power final estimated at2,500kW. a with network, the to connected was Comerciales Centros Urbana client The 10,200 kW wasreceived. of demand final a to leading increase for a power request (Merlo)’s Neumáticos Pirelli Service QualityandProductQuality. of troubleshooting for renewed Low were section of km 176 Voltage in network or addition, poor condition of improper In increase. kVA improving theservicequality. successfully network, the from joints transition were wires 36 tranches,replaced, comprisingremoving376 Voltage Medium API-type 16-km were repowered. Substations Miguelete and Melo areas, critical in quality service improving of purposes the For » » » » OLIVOS » » » » » PILAR »

of MediumVoltage undergroundcable. Km 5.5 of laying the involve further power.They MVA 5.3 a with network, the clients to connected were Crousing Global and Catalent Trento, service quality. improve to and demand increased the satisfy to service into put were TransformationCenters 52 0 o Vlae n 4 eim otg new Voltage Medium feeders wereadded. 4 and Voltage Low 70 Aires invariousmunicipalities. Buenos of Province the of Government the by Plan promoted Emergencia) de Villas de Erradicación Eradication Squatter the Settlements under neighborhoods the to developed feed be to continued networks New Mdu Vlae e fees were feeders new Voltage commissioned. Medium 4 been have Centers assembled andinstalledthroughoutOlivos. Transformation new 99 carried out. were Fleni and Kraft SYAR, Edificio Libertador, Torres Horizons, Hotel Intercontinental, Remo, Premium de Nacional Pista of works Connection in criticalareas. different Substations to in improve addedthe service were quality feeders Voltage Medium new 2 Escobar. Transmission of district the in 25, route Overhead on closed was Line Voltage Medium and HenryFord tunnelinthedistrictofTigre. 27 No. Route Provincial of re-paving the López, of the new riverside road in the district of Vicente consequence a as re-located were Installations Pa de (Plan analysis of economic-financial operations and results 41 p » » » » » » » Network Own Total MT Own AT Own AT External (Times) FMIK kVA , ) forthelast5yearsarefollowing: “TTIK” por Interrupción de Total (Tiempo kVA with instalado, kVA installed kVA (Frecuencia Media de Interrupción por with Frequency Interruption Medium levels, “MT”) Tensión, (Alta Voltage High for series indicators Continuity

| SERVICEQUALITY | poor feedingwereregularized. with customers connected clandestinely 4,488 and theotherinGeneralRodríguez. Housing Plan were Federal connected, the one in under Malvinas Argentinas neighborhoods 2 98 kmofLowVoltage networkswerelaid. Voltage. of Km 14.4 were laid, network both of Medium underground and network overhead of Km 20 Voltage Medium/Low in transformers hasincreasedby28,6MVA. power Installed were expanded. were and built 118 other Centers Transformation Voltage 72 Centers Transformation Medium/Low MW. 13.5 to 5 from power its increased that Paseo power, MW Gas Linde and power MW 1.4 11 with Champagnat a are with customers Mall important Tortugas most the of Some “AT”) and Medium Voltage Media ( Tensión, 2,68 2,40 0,28 0,13 2006 ) and Total Interruption Time TotalInterruption and “FMIK”) 3,30 2,90 0,41 0,16 2007 3,92 3,41 0,52 0,17 2008 4,41 4,36 0,05 0,00 2009 5,10 4,80 0,30 0,03 2010 TTIK Customer by Observed (Times) FMIK External (Hours) Own AT Own AT Total Own MT Observed Network years werethefollowing: 5 last the for series SAIFI Continuity and SAIDI Voltage. indicators. High with as customer weight large indicator a same the has Voltage Low with customer residential a as lost, is weighting facilities affected the of importance the thetime same at but vision, network global a enabling advantage of the offer They with Voltage. kVA Medium/Low of instead customers of number the currently is base estimation the however, TTIK; and FMIK to analogous are and network Voltage as Low of component the include indicators These reported, also are recommended byIEEE1366. Frequency (“SAIFI”) Interruption Index Average System and System (“SAIDI”) Index indicators Duration Interruption FMIK Average international the indicators TTIK, continuity and the with Together Voltage and HighVoltage networks. Medium of Medium/High performance sole the i.e. of customers, powers the contracted and the Voltage of Medium/Low kVA with each transformers for downtime and outages number of average the represent indicators These Customer by 2006 2,81 2006 0,23 0,14 4,64 4,78 5,01 2007 3.47 2007 0,28 0,34 5,97 6,31 6,59 2008 0,25 0,58 7,48 8,06 8,31 4.10 2008 2009 0,00 0,01 8,78 8,79 8,79 4.42 2009 10,38 10,56 10,62 2010 5,13 2010 0,06 0,18 analysis of economic-financial operations and results 42 SAIFI External (Times) Own AT Own AT Own MT Total Own BT Observed Network in thehistorical series. included been have would values annual situation, extraordinary this of absence the In 31. December and 21 December between registered was indexes December to contribution of 70% than more that extensive so was 2010 December on impact The 33° reaching 37°, significantly affecting the network. during 9 days in a row, peak temperature exceeded December 2010 was a completely unusual month as winter-related July 2010. 30°C., in not effect considerable most their had factors peak exceeded as indexes, temperature on 2010 February impact and negative January a had temperatures High Customer by Observed Network Total Own BT Own MT Own At Own AT External (Hours) SAIDI Customer by 00,28 11,43 11,34 2006 2006 0,11 2,69 1,72 4,69 4,80 6,10 5,10 0,14 0,09

15,55 15,45 2007 2007 0,10 0,42 3,27 2,21 5,90 6,00 8,31 6,77 0,37 0,10 13,61 13,52 2008 2008 4,74 8,19 0,59 0,09 0,14 0,53 3,82 1,21 5,57 5,71 13,04 13,04 2009 2009 4,47 8,54 0,03 0,00 0,00 0,05 4,44 1,18 5,66 5,66 17,07 17,04 2010 2010 0,01 0,25 4,81 1,34 6,40 7,10 9,80 0,14 0,03 6,41 network tosolve anydeviation. requestedreportaworks oncarriedbe to the outin instead of the usual 3-day measurements, and further continued increasing 7-day measurement percentage, Regarding customers’ claims measurements, ENRE the qualityofproductdelivered. issued to the optimize investment focused on of enhancing quality are the reports systematic product, technical delivered to relation in recorded were In such network points where punishable deviations the earlydetectionofpotentialdiversions. recording equipment are being reviewed, emphasizing Electrical parameters controlled by network disruptions campaigns requiredbyENRE. of equipment availability without adversely affectingequipment the will be purchased, covering usefulany lifecontingency operation and additional Harmonic recordingpurchased,be existingthepartofas peak at park is recording Flicker continued equipment2011, to will manufactured) purchased During were 2010. during nationally are two last (the equipment of pieces control Flicker two and equipment of pieces control Harmonic new two equipment, control disruptions of policy replacement and updating the with accordance In and certificationoftherecordingequipmentpark. calibration the as measurements well as 2010, during made of were number Resolution required ENRE the 184/00, by requested as campaigns control disruptions and voltage to comes it When q affecting regularize theserviceinlessthanonehour. Substation, to managed Company the Malaver but Substations, other in 2/2/2010 on event significant a recorded network AT own The temperature reached 35.9°). peak the day, (That GWh 82.1 with maximum the 12/22/10 dated was network the but to delivery energy MW, 4.211 with 08/03/10 on The demand maximum historic value was registered | PRODUCTQUALITY | support tasks 44

of its interactive stall, was visited by more than 18,000 persons.

Companies’ Fairs at Universities, mainly at support tasks schools of Engineering, UTN Regional Bs As, UTN Regional Avellaneda, UBA, UADE, UCA. We managed to contribute to labor and professional development of students and graduates and to reinforce interaction bonds with the University.

Engineering Fair organized by Worktek.

Consortium: in 2010, AArEII (Asociación de Estudiantes de Ingeniería Industrial y carreras a | HUMAN RESOURCES afines) (Association of Students of Industrial Engineering and related careers) joined the NEW HIRES Consortium.

During 2010, the Company continued hiring By participating in all the events listed above, personnel, mostly increasing the number of the Company was able to increase, update employees in technical areas. Most new hires were and consolidate its databases, efficiently allocated to operative areas for the purposes of administering them and speeding-up processes. continuing reinforcing and creating new staff groups. In addition, in June, Edenor launched the program In order to continue improving the welcome process called “Becas por más Energía 2010” (2010 for new personnel, the Company re-designed the Scholarships for more Energy), where Edenor, employee orientation material and put actions into through Pampa Energía, offered staff’s children practice, fostering access to and acquisition of and family members the possibility to be awarded the Company’s know-how, then strengthening the a full scholarship for electrical Engineering career at employee’s own performance. Instituto Tecnológico de Buenos Aires.

JOBS In 2010, that program was further made available to technical high schools students that took part Focused on continued reinforcing relationships of the Internship Plan. To outspread the program with the education community and strengthening and invite students to an informative conference its corporate image in the labor market, Edenor at ITBA, Edenor visited high schools. There, attended conferences, tradeshows and events where Edenor was in contact with students, senior staff the most important companies had the chance to and, in certain cases, with parents. The invitation contact talented candidates. Such conferences and to join the program was greatly welcomed as tradeshows meant a good opportunity to attract nearly 50 students attended the conference and candidates interested in working at Edenor. took initial steps to participate in the Program.

In 2010, the Company participated in: Edenor, seeking long-lasting relationships with the educational community and as result of Expo Zona Jobs and Expo Bumeran: Virtual the “Prende tu Cabeza” (“Light up your Head”) employment tradeshow where Edenor, by means contest organized as a community project for support tasks 2010 ANNUAL TRAINING PLAN

During 2010, the training plan comprised 180 activities focused on developing job position skills, both for operational tasks and management tasks, totaling 45,700 training hours for own staff and 10,932 hours for contractors’ staff.

The most important courses include the training course FPR new technical employees and the “Supervisor Training Program” addressed to the Distribution and Marketing Division personnel.

As every year, training activities were focused on Safety, Environment, Quality and Safety in public thoroughfare issues.

Additionally, courses on ongoing professional training, English language and courses addressing attitude-related issues were delivered to professional staff and mid-level managers.

During 2010, 65 own facilitators and 20 independent facilitators from different well-known educational institutions and entities. technical schools located in the concession area, began designing a learning internship for OUTSTANDING ACTIVITIES the winners of the contest. COMPREHENSIVE TRAINING TO NEW SCHOLARSHIP PLAN TECHNICAL EMPLOYEES

The Company is proud of its ability to continue This course is aimed at providing the student with with the Program, in effect for more than 15 years the know-how and tools necessary for his/her in a row, particularly after the amendment of the future development as an employee. new law. The course lasts for 210 hours and is delivered at Despite the decrease in the number of scholars Edenor’s Training Center located in Villa Lynch. as compared to previous years, in 2010, Edenor incorporated 17 new students who, if added to last Safety is the core theme of each and every training year scholars, represent an average of 40 students. course, both in theory and as regards actual implementation of safety measures, taught in the 24 As every year, the program contemplates a follow- instruction manuals of the technical part of the course. up through meetings, where students share their experiences. During 2010, the stimulus allowance Classroom training is supplemented with visits was improved and Edenor worked harder, with the to the Company’s facilities (Materials central University, on the educational goals. warehouse, Substations, Control Center, etc.).

45 support tasks 46 people, with a total of 4,700 hours of training on this topic. on training of hours 4,700 of total a with were people, courses 100 1,180train to possible it making thus conducted, through activities Seven staff. administrative and intended technical for both implemented, be this to regarding continued topic programs special 2010, During SAFETY people, totaling904traininghoursonSAP. different areas of the Company the and training more than to 100 them delivering of possibility the Training Annual the Plan. The courses had by a significant impact due to identified needs the to were designed, in an attempt modules to provide responsesapplication different with courses Three SAP to includeallsupervisorsofthisDivision. 2011 in offered be to continue will program This total of5,212hours. a with participants, 86 had program training This 64 for lasted hours. program The performance. their the to on improve necessary to tools access and participants’ strengthening manager as on role supervisor’s focused the was program The SUPERVISORS TRAINING 203 techniciansweretrained. 2007, in program this of beginning very the From 8610 hours. totaling training, this received technicians 41 and delivered, were courses two 2010, During and thenprovidedwithatrainingcertificate. tested are participants course, each of end the At » down asfollows: broken conducted, were activities 8 2010, During Universidad to traincontractors’staff. with Tecnológica agreement Nacional, Regional Pacheco, continued Cooperation TRAINING PROGRAMFORCONTRACTORS in publicthoroughfare”. for fire workshop supervisors” and “Workshop SVP on of proactive actions and case Safety “Industrial in seat”, 18001/2007 instance “First “Ohsas Awareness”, Driving”, “Defensive such as provided, were courses important Other “Method forHigh-riseWork”. and Work” Risk Electrical in “Safety include topic, of the of terms importance the and in participants of both number courses, important most The

6 courses on “Training on Low Voltage Voltage Low on “Training Electrical Networks”. on courses 6 support tasks 47 Conducted Activities(withoutrepetitions) b Contractor Companies Hours ofTraining toStaffof Trained Staff(withoutrepetitions) Hours/Man Managerial/Development Hours Operative Training Hours Total Training Hours STATISTICS OFTHEYEAR update coursesheldinexternalinstitutions. and congresses seminars, from apart specialties, different studied who collaborators 12 of total a were there and Program, Degrees Postgraduate and Master’s the joined professionals 6 year, This awarding promoted, of thecosteducation. 100% and 50% further between cover that scholarships was higher in studies participation 2010, in year, every As MASTER’S ANDPOSTGRADUATE DEGREES of thistraininghaveparticipatedintheseactivities. 127 staff members from 7 contractors which are part » » hogot 00 te T ln n the and are described: Plan consolidated. IT Below, the main projects implemented the be to continued Plan TelecommunicationMid-term 2010, Throughout

| | cus o “uevso o Electrical of “Supervision on Networks”. course 1 and Terminals”. Joints Voltage Low and “Medium on course 1 IT ANDTELECOMMUNICATION

10,932 36,100 45,700 1,446 9,600 180 17 » » »

important being the project to migrate GIS GIS migrate and QUALITY databasestoHP-UX servers. to project the being important most the of one continued, performance and addition, tasks aimed at improving availability system trunking with 900 voice- and data-operated Nextel devices. In with replaced was system Communications Operative the end, field the To that entered. data of OMS quality and operation optimizing Nexus significantly the module, to connected directly phones), the (cellular devices claims mobile permits through individual of closing which and branching implemented, was solution mobile a system, Nexus regards As updated versions. system operative or program of distribution enabling features for the automatic or remote implemented, were tools administration and monitoring platform addition, In network. the than that of with the same password Directory, allow authentication through Microsoft Active tonecessary, as adjusted were Applications meetings. progress virtual of arranging quality faster a to due important an in features, resulting communication video and the messaging audio instant allows implement project to this Company of were execution boxes The capacity. email storage their expanding migrated, 2200 to were migrated tools implemented. IT was state-of-the-art and platform Microsoft Novell The for remainingcustomersbytheendof2011. implementation massive and 2011 July late by Customers implemented be to Large expected is solution efforts. of months entailed five which completed, already design is the stage and met, strictly are of project times the execution stage, new this In hired. services required for its implementation were consulting integration system Accenture’s product of Oracle was relaunched in 2010, and systems Billing”) & Care (“Customer CC&B the with commercial of replacement The support tasks 48 » » » » »

mrv dfeet set o Management of administration. aspects different to improve out carried been have projects act, (SOX) Sarbanes-Oxley the of requirements the Under being implementedintheregion. product first the of efficiently one more becoming managed, be to Purchases for allows The SAP-SRM product was implemented, which services tobeusedandregistered. those for allowed user per card identification installed and a virtual printing system with a sole and employee attendance control systems were service was enabled in all the building and entry communication solution was achieved. The WiFi integrated an implemented, tools Microsoft to Consequently, thanks numbers. extension 500 of total technology,a networkinvolving phone and buildingdata state-of-the-art IP with equipped was new The technology. edge cutting with it provide to out carried were tasks many building,new a officeshead movedtowereAs area throughanaccountingservice. each to allocated and distributed were costs half, by capitalizing devices their use. ofAs a second goal, number printing goal the reducing first of the achieving thus replaced, were All printers, photocopiers, scanners and plotters Plan, manyactionsweretaken: As part of the project to implement a new Safety » »

and implementationcycleofapplications. development the in participating areas the among functions of subdivision proper the account into taking programs, of versions different the and the library of for administration allow which implemented, were tools Manager Solution and Harvest SAP servers, switch,etc.). (pc, assets IT of stocktaking the in used be to implemented, be to started tool Altiris » » »

and have more capillarity thereat to bring bring to thereat capillarity more have and capacity transmission their expand Telecommunications networks, of availability improve networks, Voltage Medium telemanaging and telemonitoring for the prepared be allow to actions Company These Lopez. Vicente of district the in deployed were km 350 Further, connected. being are Munro Substations Sevel Migueletes, and Adelina, Villa Rotonda, laying, this Through Martín. San and Morón Febrero, de 3 of districts the in posts Voltage Low on deployed were fiber optic of km. 500 improved connectivity. and applications available of quality service enhanced seeking updated, be to contributed Offices Business of Network Corporate The by SACME. aligned with the new Control Center deployed be to and networks remote Telemonitoring recent most new of the deployment the support to technology with equipped be homogenous to and operation network the to make Company the allows action This project. Nexus-SCADA the in implemented communication protocol standard 60870-5-101/104 IEC the to migration the of completion permit that nodes 19 replacing by standardized be to began Network Trame Telemonitoring The » » »

asod, eutn i ipoe safety and efficiencyforusers. improved in resulting passwords, of -management self users and network new implemented, the to of access were the automatizing (“IDM”) System The first features of the Identity Management of Microsoft servers was carried out, out, features. carried was providing permits based on servers user-developed Microsoft of information the of process Classification A rules regulatingtheactivitywerereleased. A and new policy the safety most important support tasks 49 » »

Substations: in out carried were works following the 2010, In numbers. extension phone IP records it as technology, system telephone the positions in and of number the in both expansion, future support to capacity has platform This Genesys). (e.g., applications Center Call the with integration and system recording the of availability a enable will that greater art system system state-of-the- a with recording replaced was technology analog Center Call The Centers. Transformer the to communications secure » Network andOperativeTelephone System. new Corporate Protections, Telemonitoring, communications for Rey including of de Paso Substations, Telecommunications and Pantanosa of Start-up » » »

and Pantanosa Substations. Luzuriaga in systems Surveillance Video InstallationAccessControl,Intrusionofand ie ntok onn Pet Neo and Colegiales Substations. Nuevo Puerto joining network fiber ConnectionofMelo Substations tothe optic optic fiber ring joining Ramos Mejía and and Mejía Casanova Substations. Ramos joining ring fiber optic the to Substation Luzuriaga of Connection related parties 51

related parties

a | DESCRIPTION OF THE ECONOMIC GROUP

Edenor is a company under Pampa Energía S.A.’s control, the largest integrated energy company in Argentina. Pampa Energía is a publicly-held utility company operating at the Buenos Aires Stock Exchange (Bolsa de Comercio de Buenos Aires) (BCBA: PAMP) and at the New York Stock Exchange (NYSE: PAM). Its executive officers have outstanding track record and experience in energy investments in Argentina since 2005.

Through its subsidiaries, Pampa Energía participates in the generation, transmission and distribution of electricity:

In Generation, it has: » Nihuiles Hydroelectric Power Station » Diamante Hydroelectric Power Station » Güemes Steam Power Station » Piedra Buena Steam Power Station » Loma de la Lata Steam Power Station

In Generation, it has: » Transener » Transba

In Distribution, in has: » Edenor related parties (*1) and (*2) We will confirm PESA’s and Dilurey’s interests in IISA after calculating, with the financial team, the num- ber of preferred shares sold by PESA to Dilurey;

(*3) PESA holds 10,938,580 preferred shares (those shares were calculated based on the calculation of the capital stock), (*4) PESA holds 93,402,300 preferred shares (those shares were calculated based on the calculation of the capital stock).

52 related parties 53 b payable retroactively fromJanuary1,2008. 2.5 U.S.$ to Argentina, in levied as tax added value plus million, increased was EASA by rendered services the for consideration as Company the by with EASA, by means of which the amount to be paid directors approved of an amendment board to the Company’s agreement executed the 2008, April In service wasmadeonApril19,2006. of year first the to related Payment already obtained. been have which EASA, and Company the of directors and committees audit the by approved is agreement the once 2005) September from period being due (for the services rendered in the 12-month date as agreed by the parties, with the first payment another any year,on every or October in advance in paid be shall VAT, and plus year, per million 2 U.S.$ of is EASA by received be to consideration The advance. cause in days 60 any least at given notice without with time any at it parties terminate the may of each and 2005, September from as years five for force in be shall agreement The concession and contract andannualbudgetoftheCompany. renegotiation; rate of process the of aspects financial and entities; local financial foreign with relation strategies; derivative and businesses, hedging new of implementation and profitability feasibility, the and debt products; financial and commercial financial Company’s the new of restructuring of companies development advisory and financial by Company; the commitment of process making decision and generation financial of group return; financial the regarding advice and assistance include EASA by purposes of the Company. Services to be developed corporate the with consistent lines business new of development potential the to as related well services as which services, advisory under render shall EASA, EASA with Agreement Services Financial a signed Company the 2006, 4, April On Financial ServicesAgreementwithEASA RELATED PARTIES | M O S T S I G N I F I C A N T O P E R A T I O N S W I T H H T I W S N O I T A R E P O T N A C I F I N G I S T S O M Company against any liability arising out of the the of out arising liability any against the Company indemnify shall CYCSA Also, rendering services. its the of from obtained income of 10% as well as taxes, before customers, the to charges annual its of 2% Company the give shall CYCSA its web site. In exchange in for the use available of its web capacity site, the on depending authorize and evaluate shall Company the which site, web Company’s the access to requests periodic make shall CYCSA agreement, relevant the to the Pursuant of period. expiration the least to at prior days with 120 otherwise notifies parties the any of unless periods, 5-year subsequent for term each of expiration the at renewal automatic contemplates its also agreement The approved. the is for license the services telecommunication date CYCSA of rendering the from years ten of telecommunication term a for valid be shall agreement be The services. its of to rendering site the web in used Company’s the and of maintenance adjustment the to for related responsible expenses be all shall this CYCSA of agreement, provisions the Under Company. the like companies distribution energy existing of the infrastructure through images and information of transmission the services, communication Executive voice of integration the Argentine contemplates the which with Branch, accordance of in 764/2000 site, web Decree its of use the through customers Company’s the to services telecommunication render to right exclusive the CYCSA granted it which to according (“CYCSA”), an executed agreement with Company Comunicaciones y the Consumos S.A. 2007, 16, March On Agreement withComunicacionesyConsumosS.A. agreement weremodified. the of provisions other Apart no 2010. amendment, this 31, from August on held meeting was the at Directors amendment of Board Company’s Said the by approved 2010. 19, from as September years five by agreement the of extending term the 4.1, paragraph IV, section modifying signed, was Agreement originally-executed the to amendment new a 2010, 26, August on Moreover, related parties 54 this agreement, the Company agreed to establish of part As services. mail and facilities its of use the through services and marketing its to direct render right exclusive the PYSSA grant to agreed it which S.A. Servicios ( y Préstamos executed with Company agreement the an 2007, 16, March On Agreement withPréstamosyServiciosS.A. on December18,2008. exhibit mentioned above the approved of Directors Board Company’s the respect, this In date. effective its from as counted years, twenty to ten from validity of term the extends the and of Contract) (validity Contract Master the of XI section amended which executed, was contract the to exhibit second the 2008 November, in Likewise, in itsmeetingheldonNovember5,2008. exhibitmentioned above the approve to resolved worth noting that the Board Company’s of Directors is It installed. be to fiber optical the of capacity the of part use to right the Company the grants exhibit such Also, Service. Public the of rendering normal the affect not condition does fiber the optical said to that subject CYCSA, to belonging fiber optical of installation the for voltage low and medium high, of pipes the accompany that ducts triple and/or ducts and voltage low and high, medium of towers airline and posts use to right the by means of which the Company granted CYCSA executed, Web was Distribution Energy of the Use the for Permission of Granting of contract the to exhibit first the 2008 27, October on Furthermore, the ArgentineCommunicationsSecretary. of 179/2008 Resolution by granted eventually was which to, referred license the obtain to extensions 2008, the Board of Directors authorized such term 7, May and 2007 7, November on respect, this In extension. to subject be to provided were which execution, its from days 180 of term a in license telecommunication the obtain condition to had CYCSA the that to subject executed was contract The site. web its through services its of rendering ), a financial services company, under under company, services financial a “PYSSA” ), Director of the Company. Dr. Dellatorre is the the is Dellatorre Dr.alternate member oftheAuditCommittee. Company. the of Director Regular the is Dr.Salaverri Committee. Audit the the of member to regular a is Dr.Company.Errecondo services advisory legal renders regularly which Burgio, & González Dellatorre, Salaverri, Errecondo, firm law the of partners are Dellatorre Santiago and Salaverri Diego Errecondo, Javier Legal advice influence onthatspecificfieldoftheeconomy. as a result of the international financial crisis and its offices, Company’s the in suspended temporarily are contract mentioned the to linked activities The credit cards. and loans personal of services the and services assistance financial the render shall who S.A., Financiera Compañía Credilogros of staff the by served be the would in offices installed commercial notified be Edenor’s to PYSSA modules the 2008, that Company 28, February On 381/2007. No. Resolution its ENRE, which rendered the a favorable decision by means of of authorization the to subject was validity its that its provided of agreement The rendering services. the of out arising liability any against Company the indemnify to agreed has PYSSA Also, services of its 10% from as obtained income well as taxes, before to charges customers, the monthly its of 2% pay the shall Company PYSSA the agreement, the of provisions the Under period. relevant the of expiration the to by prior days 120 agreement least at given the notice a of means terminate to PYSSA of and Company the of right the to subject years, five of periods subsequent by renewed automatically be shall validity its and years five for valid be agreement shall The bills. including customers, sent its to mail the in include PYSSA to for material agreed marketing Company the customers. Furthermore, Company’s the to services lending and services financial its offer shall PYSSA which through offices their of some in modules special business social responsibility 56

Furthermore, it allows the Company to improve aspects of daily management, such as documentation, decision making, objective implementation and measuring of actions business and projects, thus achieving the optimization of resources and greater efficiency in the social management of all Systems. Consistently with these outlines and with the responsibility Strategic Vision, the expansion of the certification in Safety and Occupational Health management was obtained, as well as the preservation of the certifications obtained in Quality and Environmental a | BUSINESS SOCIAL RESPONSABILITY management, with the additional value of system integration. Edenor understands as Business Social Responsibility, “the company’s commitment to Participation in ISO 26,000 international contribute to the sustainable development with the standard development participation of its groups of interest, with the aim of improving life quality of society as a whole1”. This Edenor worked, at national and international activity is voluntarily developed and independent levels, in the drawing up and preparation of the of compliance with all the obligations imposed by first standard of social responsibility led by ISO. the rules in effect. This international standard was finally published in Edenor keeps sustainable development principles November 2010 and seeks to be a non-certifiable within the strategic core aspects of its management, guide for all types of organizations wishing to deal construing them as the continuous assurance of with topics of social responsibility in their daily the current and future business activity, making activities. social and environmental actions compatible with its economic performance and assuming the Edenor is part of the Argentine experts’ Committee, principles of the Global Pact fostered by the United operating in IRAM scope, with representation Nations. powers before ISO, responsible for ensuring proper use of ISO 26000 standard. The Company works with an Integrated Management system, which includes Safety, Global Pact Quality, Environmental, Occupational Health and Public Security systems, based on a standardized In February, 2010 the Communication of Progress policy, with common procedures and a was presented, informing progress by Edenor comprehensive documentary system. regarding promotion of the ten principles of the Pact. These actions are carried out for purpose of achieving synergies among the objectives of Said Communication complies with the all the systems and avoiding the repetition commitments undertaken by Edenor as regards and overlapping of processes among them. this voluntary initiative.

1 Argentine Business Council for Sustainable Development (Consejo Empresario Argentino para el Desarrollo Disponible, CEADS), 2003. business social responsibility IDEA - ADEERA and other business exchanges Corporate Social Responsibility in Emergencies

Edenor continued presiding over the Commission By 2010 early summer, Edenor took measures on Social Business Responsibility of IDEA. in addition to those included in the Emergency Throughout the year, actions continued to be Operation Plan, for the purposes of minimizing taken on the different issues of the corporate any impact on customers affected by the shortage agenda in connection with social responsibility, of energy caused by high temperatures and the with particular emphasis on the follow-up of increase in service demand. progress of international standards, safety at work for employees and environmental aspects Among the actions carried out, it is worth mentioning of corporate management, highlighting the the delivery of 580 water barrels in the cities of El impact on carbon emissions by the different Palomar and La Matanza, where supply was affected activities. and more than 10,000 phone calls to customers with special supply problems, affecting all the Company’s It also coordinated the Environment and Safety personnel to those tasks. Commission of the Association of Distribution Companies of Electrical Energy of the Argentine INTEGRATED MANAGEMENT SYSTEM Republic (Asociación de Distribuidores de Energía Eléctrica de la República Argentina, “ADEERA”), During November 2010, the IRAM Certification which held a meeting on a two-month basis. At Argentine Authority (Organismo Nacional de such meeting, sector problems were discussed, certificación IRAM) visited the Company for the in particular, aspects related to risks at work and purposes of conducting the independent audit of its the best labor practices aimed at minimizing Integrated Management System. accident risks. From Edenor’s standpoint, this audit was an important In promoting sustainable development, Edenor milestone, as it comprised all the Company’s continued working with CEADS on the promotion processes, which were assessed based on the criteria of initiatives of Social Responsibility through defined by ISO 9001, ISO 14001 and OHSAS 18001 presentations at congresses and business study standards on Quality, Environment, Industrial Safety cases, further creating an interaction process and Occupational Health, respectively. Consequently, with the Argentine authorities aimed at promoting Edenor became the first utility company receiving the corporate practices focused on this industry Certificate of the company as a whole under the three sustainability. international standards.

Report on Sustainability Depending on the success of this process, efforts, costs and resources will be streamlined, the With the experience gained after submitting decision-making process will simplify management Edenor’s First Report of Sustainability, the 2010 as much as possible, identification of targets to report was further prepared and presented. implement and execute working plans will be The purpose of this report is to be a tool for improved and actions overlapping will be left behind. communication and transparence of values, This achievement allows the Company to guarantee principles and results. The last report comprises to interested parties the rendering of a service in full the activity developed up to 2009 and foresees its compliance with internationally known management continuity over time. requirements.

57 business social responsibility 58 b hogot h ya, t il Lnh riig center, training Lynch Villa year, at the Throughout Qualifying trainingforemployees following objectives stoodoutamongothers: The Program. the Management in includedIntegrated were which 2010, for goals and Risk Evaluation laid the basis to define the objectives and Dangersidentification of for scheme 2009 The Public and Security ManagementProgram Health Occupational and Safety processes withsaidstandard. its all certifying of goal the achieved Edenor scope, Documents areas to Safety and Occupational Health and Technical and Project Assistance and Maintenance TechnicalPreventive of incorporation With the Certification. 18001:2007 OHSAS of the scope of expansion and audits preservation carried the out IRAM) Certificación, y of Normalización de Institute Argentine the Standardizationand Certification (Instituto 2010, Argentino November In certified under OHSAS Rule 18,001 since 2005. specificallywhatis relatedSecurity,to systemtheis as part of the Integrated Management system, and conducted in is Safety Industrial of management The 18,001 Rule OHSAS under Management of Certification

» » » » » » » |

INDUSTRIAL SAFETY Accident PreventionCampaigns. Information onandPreventionofDiseases. 18001 OHSAS of Management System. scope the of Expansion Thoroughfare Management. OccupationalSafetyandPublicthe Healthand within outcarriedactions promotion Internalof public thoroughfare. in safety for claims and accidents of Reduction activities ofownandcontractor’sstaff. at risks significant and moderate of Reduction Reduction ofRisksatBuildingsandFacilities. on the observance of rules and procedures for for procedures and rules of and observance elements EPP) the on personal, protection protección personal de of (elementos use the laid on emphasis special the of consequence a As Management withContractorCompanies personnel’s tasks. the of aspects environmental and improvements safety-related and health occupational of analysis the in body advisory an as acts and of Company the facilities different the of conditions safety and hygiene verifies further commission This view. of point overall an from task each of conditions risk the as well as occurrence, their of discussion reasons the the of and work at events or accidents about information of exchange the for intended is it and union, trade Fuerza” y “Luz of and Edenor of representatives of up made is commission This Occupational Health, SafetyandEnvironment Hygiene, on Commission Joint related totheoperationofnetwork. risks any prevent to and qualification employee’s the guarantee to as so employee, the to certification a provides Company the course, the passing After by theworkerarea. approval technical a and exams psychological and physical medical, several with coupled is training This network. voltage low and medium the operate qualifiedtobe coursetothis Employees passmust in network electric the This course is addressed to all employees operating Height riskandRisks/UseofEPP. Risk, Danger/ Incident, Accident/ Voltage, Check-up, Safety Posts Thoroughfare, Public in Safety Box/Gauges, in Works Distance, Safety PATyCC, of Placement Area, /Working Area Retrained Protected Area, Rules, Golden 5 issues: following the Theoryoneeducational testmodulecoveringaand and module educational Practice one into divided course 8-hour a through risks, electric of prevention on training provided division safety industrial the ocsin area. concession Edenor’s business social responsibility 59 eeomn o eeti distribution, the electric to contributing of continue development to attempt an In Participation inCidel by IRAMduringitscertificationaudit. strength a as defined was action This personnel. operative Company’s the all to apply will action this 2011, During accident. electric minimizing possible of any purposes the for risks, electric to in exposed employees technology to provided fabric clothes working fireproof the implement 2010, During Incorporation offireproofprotection. Technology innovation. independent auditconductedbyIRAM. the by strengths as identified were results These and court at accident improves efficiencyofcontractorcompanies. work-related the with dealing of risk potential the minimizes result This companies’ contractor employees wereconsiderablyimproved. from statistics accident 2010, in 2009, during accidents of prevention the 10 15 20 25 30 35 -5 0 5 Gravedad Frecuencia 25,20 used its best efforts to to efforts best its used Edenor 0820 2010 2009 2008 6,06 21,46 0,62 Lineal (Gravedad) Lineal (Frecuencia) 15,65 0,46 Edenor Edenor c areas. Transmission andDistribution remaining the of those area WWC frompoles to adding extended, was scope testing poles and isolated hydraulic lift testings. Moreover, with were dielectric coupled usual testings element WWC 2010, in plan, improvement the with line In Testing labforWWCelements putting facilitiesoutofservice. without out carried be may that tasks of type and This will training allow for an in increase the number Substations premises. Transformer Voltage High kV 220 and 132 the at Method, Potential the Voltageunder with Works on maintaining the decreasing trend since 2006. maintaining the decreasingtrendsince2006. thoroughfare with public related the 9% in of occurred reduction accidents in a was there 2010, Throughout Third Party Thoroughfare AccidentsinthePublic Uruguay, in UTE with executed know-how and technologies experiences, share to agreement the with line In Work withVoltage (WWV)toPotential Method Section thefollowingworks,whichwereselected: activity” sustainable a as distribution “Electric the for submitted Management Safety Public Thoroughfare and Development Sustainable the event, particular this For 2010. 2010”, 27-29, September on held Argentina “CIDEL Eléctrica) Distribución de Internacional (Congreso Distribution Electric on Congress International 4th the in participated

» » |

PUBLIC SAFETY an ElectricEmergencyPlan. of preparation Joint Firemen. for Emergencies Electric of case in actions of plan Improvement Implementation of fireproof work clothing. Edenor’s supplies, compared with 2009,supplies,comparedwith Edenor personnel took training courses business social responsibility 60 drse t te ulc n ulc aey were Safety Public included inbills. on public the to tips and addressed offices business at placed were Posters by theseentities. of accidents that took place during works performed are which contractors, remarkablereflectedthenumberreductionthe in in and personnel their for courses training with connection in Municipalities It should be highlighted the actions jointly taken with with distances Overhead Lines. of shortening of consequence a as Progress in Works of personnel by caused are accidents remaining while actions caused customers’ are by accidents of 50% group, this of Out and workers hired by municipalities companies utilityor otherby (users,contractors). negligence parties’ third by caused are (65%)accidents these of most public the thoroughfare in concludedduringbemay2010, it that accidents of analysis the on Based Relationships withCustomersandMunicipalities conditions detectedwiththenumberofaccidents. irregular of number the relating by verified was task this and effective, be to proved clearly supplies and In 2010, the new method of Review of all our facilities 100 20 40 60 80 NUMBERS OFACCIDENTS2006/2010 0 Enero 6 10 13 19 2 Febrero 11 15 24 31 6 Marzo 15 20 26 36 42 Abril 18 25 36 41 53 Mayo 26 30 39 48 60 Junio 30 31 47 52 62 0620 0820 2010 2009 2008 2007 2006 Julio d System waspreserved. such of certification Company the and 311/2001, was successfully conducted as per ENRE Resolution During 2010, IRAM Audit of the Public Safety System Certification 65,000 studentshadaccess. safety presenting programs to which approximately schools with contacts its continued Company The agenda related to that topic, its application to the the to application its topic, that to related agenda international the committees, such Argentina, in continued; in representative ISO as Committee, Systems Management Management Sub-Committee and Supporting Technologies Quality Quality Sub- the IRAM Committee, in Participation Participation inIRAM (ISO 9001:2008). the 2010 certificationwaspreserved in withtheupdated version and 1999, since standard 9001 ISO under certified System, is system Management management Quality Integrated the the of part As 33 33 50 58 67

| MANAGEMENTOFQUALITY Agosto 36 40 56 63 75 Septiembre 39 43 59 69 80 Octubre 46 50 63 80 84 oimr Diciembre Noviembre 51 58 72 84 90 102 55 60 78 90 business social responsibility 61 for Sustainable Development Sustainable for Entity Provincial Environmental the the by issued Certificates as Fitness well as Electricidad la de Regulador Ente by issued Pública) Conveniencia certificates Interest 2010, In Environmental impact certification remains uptodate. same the and 1999, since standard 14001 by certified is Management Environmental Electromagnetic Fields at Medium and Low Low and Medium Voltage Transformer Centers at Fields Electromagnetic regulations, i.e.1997uptodate. backto the initial start-up of operations according to of the Province of Buenos Aires and their scope dates (OrganismoProvincial paraDesarrolloel Sostenible) Development Sustainable for Entity Provincial the by grantedcertificateswereSaid hazardouswaste. warehouses of disposal its final and handling proper its of to thanks each for certificates Fitness of life at all times, In addition, seeking to improve its customers’ quality their constructionandoperation. environmental the and studies conducted to reduce any impact caused by start-up its for grounds technical the disclose to called Hearing Public a at involved community the of consideration the to submitted are works the all that noting worth is It Electrical transmissionline. connectionV.PinoPaz- Marcos delkVA 132 the of Construction and Substation Paz C. Jose new the “PasoSubstation;Rey”newdelthe Construction of of Construction Substation; “Nordelta” new the of of Province Constructionfollowingworks:the for Aires, Buenos the of Sostenible) Desarrollo el para e discussed. are rules Quality-related of review the and field local

| ENVIRONMENTAL MANAGEMENT band h Pbi Ne and Need Public the obtained Edenor Edenor obtained the Environmental (certificados de Necesidad y y Necesidad de (certificados (OrganismoProvincial f identifying thedifferentemissionsources. Company,Division,eachthebywhole,by and a as out carried activities the from deriving emissions of report and accounting the involves nationalfurther It withextent. sector the of precedent first the as fiscal first well as Company, the the by performed inventory as year that considering 2009, ended year fiscal recent most the involves inventory The Development andWorld Resource Institute. GHG on based SustainableforCouncil Business World was of Protocol and CEADS with together developed emissions was GHG action This of Gases). (Greenhouse Phase Inventory 1st the out policy, Development Sustainable theconsistency enhancetheof toorder in 2010, In Carbon Footprint their adjustment. for conditions existing economic and building the and areas chambers were adjusted, as applicable, considering Facilities Distribution Maintenance technical sectors of operative areas, six and Rules After analyzing the data gathered from Environment, electromagnetic fieldsfromelectricalequipment. of emissionsof influence future or currentpossible of use premises intended adjacent to the the centers so consideringas to identify any regulatory also but 77/98 the Resolution Secretariat only Energy under were compliance not chambers analyzing 41 inspected, hospitals. and institutions the educationalprivate for and public as suchpopulation, important considered places at located centers transformer those of program inspection 2010, During aey n efcet s o eeg i big played, being is energy of use efficient and safety origin, the on film 3D a Aires, Buenos of City the of Zoo the of cinema the in 2009, September Since Edenor atBuenosAiresZoo:a multi-sense experience

| EDUCATIONAL PROGRAMS a cmitd oad an towards committed was Edenor carried Edenor business social responsibility 62 Juvenil in 2010 (Children and Youth) Literature Fair in Edenorchicos participated in Feria del Libro Infantil y Edenorchicos (Feria delLibro): around 87,000 books and more than 300 computers. gave it then, since and, 1995 in started program The participated. children 15,000 around and schools 100 than more 2010 during and works, winning 4 selects Edenor than 100 books as prize. At the end of every month, more with bookcase a receives school winning the and posters, or models scale of form the in works their present to children encourages program The Vicente López. y Miguel San Fernando, San Morón, Paz, Marcos LasHeras, General Rodríguez, Malvinas Argentinas, Generalinworked itmunicipalities, 2010the in and of concession. area the within needs basic unsatisfied with zones programintended forelementary schools located in ok fr u School”) our Hundred for (“A Books escuela” nuestra para libros “Cien Cien librosparanuestraescuela than 1,010,000studentsattendedtheworkshop. more and visited been have schools 2060 lifetime, The program started in 1998, and during its 13-year more than80,000kidswatchedtheplay. San Morón, and participated, Tigre and Miguel San Argentinas, Fernando, Malvinas Escobar, of municipalities the of schools 150 around 2010, In energy. electrical was which of theme central main the play theatre participatory and educational an sharing concession, of area the within day every school elementary different a visited Future”) the The program “Conexión al futuro” (“Connection with Conexión alFuturo class themeparks. world- by offered that to similar quality picture a with Edenor coordinates the program with is educational Edenor’s g efficient use). and (safety homeit handlingwhen caringnecessary every and reaches it how generated, is, is it electricity how what origins, electricity about story technology-equipped and amusing an is film This 3D film. the play tospaceindoor rollingworkshops,an with concession area. The PICEE (Programa Integral de de Integral (Programa PICEE The area. concession electrical energy at home in low income sectors of the 2010, During Energy (PICEE) Electrical on Program Training Comprehensive new socialhomesinArgentina. the all to criteria efficiency energy incorporate to is district of Moreno. The long-term goal of the project the in Perla”neighborhood “La the in homes social 10 to efficiency energy incorporating project a of execution and design the in participated Edenor energía”, + por “Casas under projects recent in experience successful the on based 2010, During “10 Casaspor+energía”(10Homesforenergy)

| ACTIONS WITHTHECOMMUNITY funded a trainingprogramon afunded Edenor business social responsibility 63 o oiin hs nry itiuin opn i the in company distribution energy this position to journalists specialized and consultants company by developed Actions Edenor’s Image Sustainability). Energy and Home of(Conference Aires Buenos in Energética Sustentabilidad y Vivienda de Jornada the of sponsor main the was it December, in and Efficiency) Energy and Home Social on Conference (InternationalAiresBuenos inEnergéticaEficiencia y Social Vivienda de Internacional Jornada the in efficiency.InAugust, itparticipated energy asmain sponsor on stand the sponsoring Social, Vivienda home.at April,In theCompany participated Expoin energy of use efficient the with connection in held events important most the at presenceinstitutional 2010, During Events environmental caring. safetymeasures and influence of energy savings on electricity,home,electrical atenergy of rational use of origin the on informed areparticipated.Families “Gran Buenos Aires” area, and more westernthan 200 the people within neighborhoods different two to TrainingElectricalappliedProgramEnergy)onwas CapacitaciónEnergíaEléctrica)en (Comprehensive had an outstanding outstanding an had Edenor e oiin leaders, opinion led Edenor The BoardofDirectors Buenos Aires,March9,2011 Prensa Económicamagazine. row, a in years four December, for In companies. utility publicother all among imageregards as placefirst Edenor was so selected in a paper prepared by Alejandro Macfarlane President 6 schedule I Corporate Governance Report CNV General Resolution 516/2007 65

Committee, which renders an opinion thereon prior to the Board of Director’s consideration of the particular issue, and consequently, those internal rules and procedures are intended schedule I to reasonably ensure that the operations with “related parties” are conducted under market conditions as by and between independent parties, and, to that end, they shall be subject to this specific procedure of prior opinion and control carried out under the Company’s Legal CORPORATE GOVERNANCE REPORT Affairs Management’s coordination and which CNV General Resolution 516/2007 involves both Edenor’s Board of Directors and Audit Committee. INTRODUCTION Furthermore, in compliance with the provisions Edenor, through its Board of Directors, has prepared of sections 5.a) and 73.b) of the Transparency this Corporate Governance report in compliance Decree, all operations involving a relevant with General Resolution No. 516/2007 passed by amount conducted by the Company with its the Argentine Securities and Exchange Commission related parties are immediately reported as (Comisión Nacional de Valores, “CNV”). “relevant event” both to the CNV and to the markets where the Company’s securities are SCOPE listed.

1. Issuer - Economic Group Relation Finally, the financial statements as at December 31, 2010, in their respective notes, include The Company’s Board of Directors held a a paragraph where the operations of the meeting on February 26, 2008, and approved Company with its related parties are broken the Policy on how to conduct operations with down. the Company’s securities. In accordance with such Policy, the Company defined 2. Incorporation to the By-laws internal rules and procedures applicable to all operations to be carried out with the General responsibilities set forth in Resolution Company’s securities, which are subject 516/07 are included in the overall Framework to restrictions imposed for the purposes of of Edenor’s By-laws, which contemplates meeting the transparency standards related to certain aspects of the Act, which sets the nature of the relevant information to which forth provisions on the appointment of not only Edenor’s personnel but its related members of the Board of Directors and of companies’ personnel may have access. the Audit Committee, general and specific In addition, as regards operations involving responsibilities of those bodies. In addition, a relevant amount and that the Company there are internal rules and procedures as intends to conduct with all those individuals regards conflicts of interests and based on and/or legal persons that, in line with the the provisions of the Transparency Decree. provisions of section 73 of the Public Offer Additionally, the Rules of Procedure of Transparency Regime, Decree No. 677/2001 the Audit Committee, which is registered (“Transparency Decree”), are considered with the CNV, specifically contemplate the “related parties”, they are reported to the Audit provisions of such decree. Consequently, the schedule I - Corporate Governance Report Company’s Board of Directors considers that The Internal Audit Management reports directly for the time being it is not necessary to amend to the Audit Committee, as this is the body the Company’s By-laws for the purposes of responsible for overseeing all the tasks carried expressly and specifically incorporating any out by this Management and, in this sense, it or all the recommendations of the Act. regularly analyzes at its meetings the reports specially prepared by the Internal Audit. ON THE BOARD OF DIRECTORS IN GENERAL Furthermore, the Company has patterns 3. Responsibility for the Company’s Strategy and a mapping of significant business risks, which were prepared following the method Edenor’s Board of Directors actively established by the best practices as regards participates in and is highly involved with the risk administration and management. In that Company’s Administration and in preparing context, the Company’s Audit Committee is and approving the policies and general informed by the Internal Audit Management of strategies tailored to each particular moment the conclusions resulting from the application of of the Company. For the purposes of analyzing this management model and the actions to be and adopting decisions related to those and implemented in relation to the risks identified, other issues, the Company’s Board of Directors monitoring the continuous update of patterns holds meeting on a quarterly basis, or sooner and risk mapping. if so required by the corporate issues. 6. Audit Committee As regards Business Corporate Responsibility (Responsabilidad Social Empresaria, “RSE”), Members of the Audit Committee may be please refer to the main section of the Annual proposed by any of the members of the Board Report to find a description of all the RSE of Directors, including its Chairman. At the time projects fostered and developed by the of their proposal, if they are independent, that Company in 2010. status is verified, in accordance with the rules of independency established by the CNV, as well 4. Management Control as other issues that may be considered aspects that would affect independence (see item 12). As mentioned in the item above, the Company’s Board of Directors closely follows-up, controls 7. Number of Directors and monitors the implementation of general policies and strategies, of the compliance The Board of Directors is composed of twelve with the Budget, the annual plan and the regular directors and twelve alternate directors corporate goals and proper performance of appointed by the Company’s Shareholders’ the Company’s management. Meeting. Based on the tasks performed by the Board of Directors and on the Company’s flow of 5. Information and Internal Control. Risk business, the Board of Directors considers that it Management has the appropriate number of directors to duly perform its duties in line with the Company’s In order to ensure proper operation of the complex structure and the remarkable extent of internal control system, Edenor has an Internal the businesses carried out by it. Audit Management that develops its action plans to render an opinion on, among other Besides, the number of directors and the aspects, the effectiveness of the internal control. number of independent directors fall within

66 schedule I - Corporate Governance Report 67 11. 10. 9. 8.

ietr ae elrcgie businessmen well-recognized are Directors of Board Company’s the of members the All Directors’ Training andDevelopment not theindividualperformanceofitsmembers. of Board the Directors, considering of it as a collective membersbody, and as performance own their evaluate to themselves directors for intended is Questionnaire The Questionnaire”. Self-evaluation “Annual the implemented has Board of Directors, through the Audit Committee, the Meeting, Shareholders’ Company’s the by not or approved is directorsCompany’s the of performance individual the if Directors’ Notwithstanding of Board the Performance of Evaluation the Company’sdirectors’andauditors’duties. of performance proper ensure and enough are with the directors’ and auditors’ liability regime, along matter, this on limitations legal existing that believe We positions. same Auditors’ the hold may they where and companies other in Directors’ participation limit Company’s to necessary the nor is it convenient that neither considers Directors of Board The Participation inSeveralCompanies the Company’sformerexecutiveofficers. of composed be to Directors of Board the on is it a to have policy necessary nor relevant neither that considers Directors of Board The Members oftheBoardDirectors the Company’sBoardofDirectors. were by approved expressly and tasks specified clearly whose Committee, Executive the and Committee Audit the up made have Finally, the members of the Board of Directors 12). item the limits fixed by the legal rules in force (See 13. 12. DIRECTORS’ INDEPENDENCE is the outcome of a recruitment process jointly jointly process recruitment a of outcome the is of Company the of managers top Appointment Appointment ofExecutiveManagers the of provisions related Securities ExchangeCommission(SEC). and Act Oxley in Sarbanes- the and U.S.rules with compliance directors independent of comprised fully Committee Audit an has Edenor addition, In signed bythedirector). status is by evidenced independent an affidavit non- (the non-independent or independent of of status data the holds he whether and personal director each the of informed are listed are securities Company’s the the where and markets CNV the directors, the of following appointment term 10-day the CNV within the Rules, of provisions the with compliance in held, is meeting the After candidate. each of non-independent or independent of status the is of on, voted is latter issue this before the informed, Meeting, Shareholders’ the by whenever considered be to forward put directors, are candidates of appointment each regards as Rules, CNV the of XXI Chapter 4, section of provisions the with compliance In Independent Directors the of part training processplannedforthem. as year fiscal 2010 throughout in body, such within duties issues, their to relation close special different on trained were In addition, the members of the Audit Committee different the particular needs. on based year the throughout plans training develops Department Resources Human Company’s the that, Notwithstanding quality. professional of standards highest the with services render who professionalsand/or schedule I - Corporate Governance Report 68 16. RELATIONS WITHSHAREHOLDERS 15. 14. f h fnnil ttmns y h Bad of Board conference a arranges Company the Directors, the by statements financial the of approval following and basis, quarterly a On Duty toInformShareholders and theAuditCommittee’smeetings. independent Directors’of Board of the fromdifferentdirectors, meetings exclusive hold to Committee. Audit Consequently, the we consider of that it is responsibilities not necessary the withscenariothatregularand meetingshold in Directors Independent addition, In Directors. of where scenario directors are naturallikely to hold meetings is the the Board that believe We Independent Directors’Meeting the reportingregimesetforthbyCNVRules. of provisions the with complying by satisfied is requirementsuchthat believeindependent, we non- or independent of status director’s each of disclosure public the regards as Furthermore, all independentmembers. of comprised presently is body Committee; however,such Audit of Procedure of Rules the of I section in reflected is criterion same The to be appointed by each class of shareholders. of, at least, a majority of independent members, required to have an Audit Committee composed as Edenor makes public offers of its shares, it is However, Directors. of Board the of members be shall a on policy formal minimum number of independent no directors who has Company The Number ofIndependentDirectors relevant resolutionsandappointments. the consideration Directors’ of Board the to who, whenever they deem it necessary, submit carried out by the Company’s executive officers Edenor’s By-laws provide that, as long 18. 17.

foreign legalrules inforce. or domestic the by established scope the with and terms the under manner, the in markets, the to released be to information the identify to order in Company the to relevant event any a created areas, responsible for analyzing and discussing Company different its of up made Committee Disclosure the Furthermore, providing market. the informationto disclosed of the to reliability purposes and accuracy the for process, the financial-economic information generation of controls of design the documents of analysis the and the updated Company the certification Act, the with comply provided for in section 404 of Sarbanes Oxley to order In market. Process for disclosing information to Edenor. to related information they public to where access have investor” its the with at “Relations of has, Company website the Furthermore, all shareholders. to equally disclosed not previously information any disclosure of private information nor shareholder’s of any imply no with shall which inquiries, and deal questions to area identified The Company has procedures and a specifically from Questions Shareholders and Inquiries with Dealing or calls emails. phone by inquiries any with deal to mechanisms implemented has Company the addition, In answered. duly are shareholders the by analyzed raised inquiries or questions being any and period corporate relevant the during business corporate of course the on information complete provides it which in call with all the shareholders willing to participate, a pca section special a www.edenor.com, ’s Edenor’s schedule I - Corporate Governance Report 69 21. 20. 19.

the Shareholders’ Meeting. thereaftersubmitsproposalresolvedbea to by and year fiscal that to particular circumstances framework and specially analyses the economic regulatory the account into each taking year, in fiscal shareholders its to dividends pay to possibility the evaluates carefully Directors of on payment of dividends. The Company’s Board deem convenient not to establish a specific policy general and of the power market in particular, we in economythe fluctuationsofConsidering the Policy Dividend market undertheSEC’scontrol. stock Argentine the U.S.the in and control CNV’s the under market in operating Offer Regime, Public the to subject is Company The Control Market principle treatment applicable toshareholders. equal the not to are they contrary because also but effective to be proved they because only not proper We are force. meeting in to calls of means rules such that consider applicable the in set forth time of period the for and manner the in say, to published notices by is called are That shareholders and Decree. Law Transparency Companies’ the Argentine the By- laws, Company’s the in for provided means the by Meetings Shareholders’ in participate to called are shareholders Company’s The Shareholders’ Meeting the in Shareholders Minority of Participation decision- making processinatimelymanner. operating an enabling thus flow, provided high fluidity to the internal information Directors, of Board the and Management the top by held meetings regular organization, the with the along of levels all ongoing of that interaction noted be should it Moreover, 24. COMMITTEES 23. 22. RELATION WITHTHECOMMUNITY

Director Independent an by Chaired Committee Audit the of information. registration and and integrity in preservation and gears standards confidentiality highest of terms the means with electronic complies by sent information The accessing, the information. from changing and/or deleting, in general, damaging persons unauthorized prevent that protection data on rules the with complies it and mechanisms security strong has it reliability, its there, the posted information protects and safeguards website the to relation in Company the by used system The Requirements oftheWebsite continuous a enabling thus communication withthecommunity. site, the at questions and inquiries their submit to users allows and businesses its and Company the navigated, on information complete and and full has accessed it and easily be can it updated, to, it is accessed be constantly freely website: may content following website www.edenor.com.The the has Company The Communications byInternet Contractual the Transition Period. during authorization prior ENRE’s without dividends of payment make not any shall Edenor 1957/06, Decree approved by and Licensor the with as executed that Memorandum Agreement noting the in for worth provided is it Nevertheless, schedule I - Corporate Governance Report 70 27. 26. 25.

Committee as its duties would be the same same Compensation the be would a duties its as Committee create to deems Directors unnecessary of Board Company’s The Compensation Systems to theCompany. services audit external provides that company the of employees as neither as auditors act external also not do Committee the Supervisory of members the Company, the in laws, legal any restriction of thereof provided for in the domestic absence the Notwithstanding and Auditor Auditor Statutory as Capacity Double Rules ofProceduretheAuditCommittee. section 16, chapter. III of the CNV Rules and the of provisions the with line in thereon, opinion informed an renders and auditors external of performance the Company) financial the of annual statements the publishing time and the filing (at of Committee basis annual Audit an on Company’s evaluates, the turn, In Company shallnotexceed5yearinarow. the in tasks audit-related his out carry to firm auditing or association an of partner any for CNV Rules that set forth that the maximum term the by the of II Chapter 24.C.2), section itself of provisions abides Company Auditor. the Auditor, External the However, as regards the rotation of the External and/or Supervisory Committee the of members the of rotation The Company has no specific policy as regards Auditors External and/or Auditor Statutory of Rotation of Chairman isappointedamongthem. a and members, all independent be Committee, shall them Audit the the composing of provisions members the regards as the Act Sarbanes-Oxley with accordance In

28. works in collaboration with the Corporate Corporate the with Management. collaboration in works which of management Company’s scope the of action the within fall they Company’s appointments, regards the as while of Management, Affairs members Legal as act who attorneys the from support professional and technical the has Company the governance, for in its rules. In as addition, regards corporate performed by the Audit Committee as provided currently Governance are duties latter’s the Corporate Appointment as Committee a an and create Committee to deems Directors unnecessary of Board Company’s The Corporate and Governance Committee Committee Appointment Human ResourcesManagement. Company’s the by performed currently duties 7 financial statements financial statements 72 JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora FISCAL YEARN Legal address:6363LibertadorAvenue –AutonomousCityofBuenosAires (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. (1) Includes9,412,500treasurysharesasofDecember31,2010and 2009(Notes1and3.s).

face value1andvotepershare shares, book-entry Common, (amounts statedinpesos) AS OFDECEMBER31,2010(Note16.a) CAPITAL STRUCTURE governmental Argentine (the Justicia” de General regulatory agencyofcorporations):1,559,940 “Inspección the with number Registration Term oftheCorporation:ThroughAugust3,2087 of thelastamendmenttoBy-laws: May28,2007 of theArticlesIncorporation:August3,1992 Registry ofCommerce: Date ofregistrationwiththePublic agreement bywhichthispublicserviceisregulated(Note1). business: Main FINANCIAL STATEMENTS ASOFDECEMBER31,2010 financial statements Class ofshares Class C Class B(1) Class A o Distribution and sale of electricity in the area and under the terms of the concession concession the of terms the under and area the in electricity of sale and Distribution 19BEGINNINGONJANUARY 1,2010 Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A Socio

Subscribed andpaid-in 906,455,100 442,210,385 462,292,111 1,952,604 ALEJANDRO MACFARLANE Presidente EMPRESA DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)

BALANCE SHEETS AS OF DECEMBER 31, 2010 AND 2009 (stated in thousands of pesos)

2010 2009 CURRENT ASSETS Cash and banks 8,611 8,685 Investments (Exhibit D) 668,232 219,687 Trade receivables (Note 4) 421,193 389,236 Other receivables (Note 5) 43,361 61,098 Supplies 12,407 14,854 Total Current Assets 1,153,804 693,560

NON-CURRENT ASSETS Trade receivables (Note 4) 45,531 87,047 Other receivables (Note 5) 119,249 88,756 Investments in other companies (Exhibit C) 415 408 Supplies 23,249 18,584 Property, plant and equipment (Exhibit A) 3,689,482 3,482,386 Total Non-Current Assets 3,877,926 3,677,181

Total Assets 5,031,730 4,370,741

The accompanying notes 1 through 27 and supplemental exhibits A, C, D, E, G and H are an integral part of these financial statements.

Véase nuestro informe de fecha 9/3/2011 PRICE WATERHOUSE & CO S.R.L. C.P.C.E.C.A.B.A. Tº 1 - Fº 17

JOSÉ DANIEL ABELOVICH CARLOS MARTÍN BARBAFINA ALEJANDRO MACFARLANE por Comisión Fiscalizadora Socio Presidente Contador Público U.C.A C.P.C.E.C.A.B.A. Tº 175 - Fº 65

73 financial statements 74 JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Other liabilities (Note 10) 10) (Note liabilities Other these of financial statements part integral an are H and G E, D, C, A, exhibits supplemental and 27 through 1 notes accompanying The 6) (Note payable Tradeaccounts CURRENTLIABILITIES (stated inthousandsofpesos) BALANCE SHEETSASOFDECEMBER31,2010AND2009 (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. Taxes (Note 9) 9) Taxes (Note 8) (Note taxes security social and Salaries Liabilities Total Current 7) (Note Loans Accrued litigation (Exhibit E) E) (Exhibit litigation Accrued E) (Exhibit litigation Accrued 9) Taxes (Note 8) (Note taxes security social and Salaries Total Non-Current Liabilities Liabilities Total Non-Current Loans(Note7) 6) (Note payable Tradeaccounts NON-CURRENTLIABILITIES Other liabilities (Note 10) 10) (Note liabilities Other Total Liabilities Total Liabilities SHAREHOLDERS’ EQUITY (as per related statements) statements) related per (as EQUITY SHAREHOLDERS’ Total LiabilitiesandShareholders’Equity

Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A

Socio

2,923,552 2,923,552 2,108,178 2,108,178 5,031,730 1,035,113 2,137,053 2,137,053 378,505 378,505 984,518 984,518 180,432 180,432 786,499 786,499 111,080 111,080 50,633 50,633 57,832 57,832 54,108 54,108 50,984 50,984 8,989 8,989 6,816 6,816 4,542 4,542 2010

2,188,532 2,188,532 2,182,209 2,182,209 4,370,741 1,428,259 1,428,259 ALEJANDRO MACFARLANE 707,499 347,782 610,775 610,775 118,377 760,273 760,273 140,301 140,301 43,673 43,673 62,813 82,988 82,988 10,084 10,084 46,854 46,854 9,374 9,374 8,012 8,012 2009 Presidente financial statements 75 JOSÉ DANIEL ABELOVICH (Losses) Earningspercommonshare year the for income (loss) Net Income tax(Note3.m) Adjustment topresentvalueofnotes(Note3.j) other receivables(Notes13) arising fromtheapplicationofnewelectricityratescheduleand (Loss) Gain from the purchase of notes notes of purchase the from Gain (Loss) taxes before Income (Loss) Adjustment to present value of the retroactive tariff increase tariff retroactive the of value present to Adjustment Tax onfinancialtransactions Interest Exchangedifference Financialexpenses Generated byliabilities 23) and 22 3.j, (Notes results Holding Tax onfinancialtransactions Interest difference Exchange Generatedbyassets Financialincome(expense)andholdinggains(losses) 12) (Note net (Expense), Income Other Subtotal Administrativeexpenses(ExhibitH) margin Gross Transmission anddistributionexpenses(ExhibitH) Electricpowerpurchases Sellingexpenses(ExhibitH) 11) (Note sales Net (stated inthousandsofpesos) FOR THEYEARSENDEDDECEMBER31,2010AND2009 STATEMENTS OFINCOME (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. these of financial statements. part integral an are H and G E, D, C, A, exhibits supplemental and 26 through 1 notes accompanying The por ComisiónFiscalizadora

Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L.

CARLOS MARTÍN BARBAFINA

C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A

Socio

(1,069,747) 1,103,897 1,103,897 2,173,644 (178,897) (194,236) (636,289) (74,031) (75,167) (21,120) (91,335) (40,278) (12,484) (16,048) (14,680) 11,581 11,581 28,372 28,372 94,475 94,475 (9,810) (0.082) (4,198) (7,054) 1,136 7,412 7,412 2010 ALEJANDRO MACFARLANE

(1,003,362) Presidente 1,074,498 1,074,498 2,077,860 (144,034) (158,956) (548,583) 169,954 169,954 222,925 222,925 (79,311) (19,181) (87,739) (99,096) (11,713) (13,352) 90,643 90,643 81,455 81,455 16,204 16,204 37,589 37,589 21,402 21,402 (5,243) 23,290 23,290 0.101 3,413 3,413 2009 financial statements 76 JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora these of financial statements. part integral an are H and G E, D, C, A, exhibits supplemental and 27 through 1 notes accompanying The pesos) of thousands in (stated FOR THEYEARSENDEDDECEMBER31,2010AND2009 STATEMENTS OFCHANGESINSHAREHOLDERS'EQUITY (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. Balance at beginning of year year of beginning at Balance

held onApril7,2010(Note16.d) General AnnualMeeting Appropriation resolvedbythe Net income for the year year the for income Net

Balance at end of year year of end at Balance

Shareholders'contributions Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 (Note 16.a) Contador PúblicoU.C.A Nominal 897,043 897,043 897,043 897,043 Value 2010

Socio - -

Adjustment to Capital 986,142 986,142 986,142 986,142

- -

Additional Capital Paid-in 18,317 18,317 18,317 18,317

ALEJANDRO MACFARLANE - -

Treasury Stock Presidente NominalValue Note1 9,412 9,412 9,412 9,412

- -

AdjustmenttoCapital Treasury Stock 10,347 10,347 10,347 10,347 Note 1

- -

1,921,261 1,921,261 1,921,261 1,921,261 Total

Retainedearnings - -

Retained Earnings Legal Reserve Appropriated 59,476 59,476 64,008 64,008 4,532

-

Unappropriated Earnings Retained Retained 201,472 201,472 122,909 122,909 (74,031) (4,532)

2,182,209 2,182,209 2,108,178 2,108,178 Total (74,031)

-

2,091,566 2,091,566 2,182,209 2,182,209 2009 Total 90,643 90,643 - Balance at beginning of year year of beginning at Balance pesos) of thousands in (stated FOR THEYEARSENDEDDECEMBER31,2010AND2009 STATEMENTS OFCHANGESINSHAREHOLDERS'EQUITY (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A.

held onApril7,2010(Note16.d) General AnnualMeeting Appropriation resolvedbythe Net income for the year year the for income Net Balance at end of year year of end at Balance

Shareholders'contributions (Note 16.a) Nominal 897,043 897,043 897,043 897,043 Value 2010

- -

Adjustment to Capital 986,142 986,142 986,142 986,142

- -

Additional Capital Paid-in 18,317 18,317 18,317 18,317

- -

Treasury Stock NominalValue Note1 9,412 9,412 9,412 9,412

- -

financial statements 77 AdjustmenttoCapital JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora these of financial statements. part integral an are H and G E, D, C, A, exhibits supplemental and 27 through 1 notes accompanying The pesos) of thousands in (stated FOR THEYEARSENDEDDECEMBER31,2010AND2009 STATEMENTS OFCHANGESINSHAREHOLDERS’EQUITY (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. Treasury Stock 10,347 10,347 10,347 10,347 Note 1

- -

1,921,261 1,921,261 1,921,261 1,921,261 Total

Retainedearnings - -

Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. Retained Earnings CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Legal Reserve Appropriated Contador PúblicoU.C.A 59,476 59,476 64,008 64,008 4,532 Socio

-

Unappropriated Earnings Retained Retained 201,472 201,472 122,909 122,909 (74,031) (4,532)

2,182,209 2,182,209 2,108,178 2,108,178 Total (74,031) ALEJANDRO MACFARLANE

- Presidente

2,091,566 2,091,566 2,182,209 2,182,209 Total 2009 90,643 90,643 - financial statements 78 JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora pesos) of thousands in (stated FOR THEYEARSENDEDDECEMBER31,2010AND2009 STATEMENTS OFCASHFLOWS (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. Cash and cash equivalents at beginning of year (Note 18.a) 18.a) (Note year of beginning at equivalents cash and Cash Changes incashandequivalents Depreciation of property, plant and equipment (Note 12 and Exhibit A) A) Exhibit and 12 (Note equipment and plant property, of Depreciation providedbyoperatingactivities Adjustmentstoreconcilenet(loss)incomecashflows Allowance for other doubtful accounts (Exhibit E) E) (Exhibit accounts doubtful other for Allowance Recoveryofallowancefordoubtfulaccounts Allowancefordoubtfulaccounts(ExhibitE) 12) and 3.g (Notes property real of sale the from Gain Retirementofproperty, plantandequipment (ExhibitA) Cashflowsfromoperatingactivities equivalents cash and cash in increase Net 18.a) (Note year of end at equivalents cash and Cash ratescheduleandothertradereceivables(Note13) fromtheapplicationofnewelectricity Adjustmenttopresentvalueoftheretroactivetariffincreasearising Gain(Loss)fromthepurchaseofnotes(Note14) 3.j) (Note notes of value present to Adjustment investments from (Loss) Gain (ExhibitC) GainfrominvestmentinrelatedcompanySACMES.A. Income tax (Note 3.m) 3.m) (Note tax Income Recoveryoftheaccrualfortaxcontingencies loans on interest and difference Exchange Net (loss) income for the year year the for income (loss) Net

Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A

Socio

676,843 676,843 228,372 178,380 178,380 448,471 (74,031) (55,650) (11,581) 16,313 49,512 49,512 (5,266) (1,136) 1,125 4,891 4,891 4,198 4,198 7,054 2010 ALEJANDRO MACFARLANE (7) 0 0

Presidente 175,419 175,419 101,973 228,372 126,399 178,586 178,586 (26,956) (81,455) (35,553) 90,643 90,643 13,547 79,311 79,311 26,379 26,379 (3,413) 2,763 3,335 3,335 5,243 5,243 2009 (11) 0 financial statements 79 JOSÉ DANIEL ABELOVICH these of part integral an are H and G E, D, financial statements C, A, exhibits supplemental and 27 through 1 notes accompanying The (1) Netof145relatedtotheSoftwareleaseagreement(Note3.g) as ofDecember31,2009 Netcashflowsprovidedby(usedin)financingactivities Netincrease(decrease)inloans Cashflowsfromfinancingactivities Decrease in non-current investments investments non-current in Decrease Netcashflowsusedininvestingactivities receivables other in decrease (increase) Net receivables trade in decrease (increase) Net Changes inassetsandliabilities: Financialinterestpaid(netofcapitalized)(Notes3.gand18.b) Increaseinsupplies Increase in trade accounts payable payable accounts trade in Increase por ComisiónFiscalizadora Net increaseincashandequivalents (Note 12 and Exhibit A) A) Exhibit and 12 (Note Collectionofproperty, plantandequipmentsold Additionsofproperty, plantandequipment (1) Cashflowsfrominvestingactivities Netcashflowsprovidedbyoperatingactivities Financialandcommercialinterestcollected(Note18.b) Net (decrease) increase in accrued litigation litigation accrued in increase (decrease) Net useofelectricpower(PUREE) IncreaseforfundsderivingfromtheProgramrational liabilities other in Increase Decreaseintaxes taxes security social and salaries in Increase

Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17

Contador PúblicoU.C.A

Socio

(381,335) (388,770) 302,878 448,471 302,878 526,928 295,778 (64,908) (45,842) 60,232 69,015 69,015 34,853 74,495 74,495 (2,218) (8,249) 7,435 7,435 2010 (275) 245 245 ALEJANDRO MACFARLANE 0 0

(161,839) (175,453) (404,165) (404,165) Presidente 101,973 667,977 199,826 (76,827) (56,915) 13,614 13,614 48,070 48,070 10,616 10,616 32,230 27,173 27,173 15,221 39,292 39,292 (3,889) 5,342 5,342 2009 0

financial statements 80 1 (amounts statedinthousandsofArgentinepesos) AS OFDECEMBER31,2010AND2009 NOTES TOTHEFINANCIALSTATEMENTS (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. of liabilities assumed was added to the value of the total capital stock of 831,610, determined as indicated as determined 831,610, of stock capital total the of value the to added was assumed liabilities of 49% of the capital stock. In order to determine the value of the assets transferred from the SEGBA, amount remaining the of value the determine to “A”basis Class the of as totality used also was price This shares). determined on the basis of the price actually paid for 51% of 51% for paid actually price were the of SEGBA, basis the of on determined transfer the from arising capital net and liabilities assets, of values recorded the 1993, 22, February dated Government, Federal the of 282/93 No. Decree of provisions the with accordance In 1992, EASAtookovertheoperationsof approved on August 24, 1992 by Decree No. 1,507/92 of the Federal Government. Finally, on September 1, Edenor’s of 51% of transfer the for contract corresponding The date). such of as pesos Argentine in amount same “A”Class the awarded was EASA of shares formed July 21,1992byDecreeNo.714/92oftheFederal Corporation Government. Capital on International organized company a “A”EDENOR, Class Morgan of the shares J.P.for bid to (EASA) S.A. and Argentina Electricidad (ENDESA) S.A. Electricidad de Nacional Astra (ENHER), S.A. Ribagorzana, Compañía Argentina de Petróleo S.A. (ASTRA), Socièté del D’Amenagement Urbain et Rural (SAUR), Empresa Hidroeléctrica Nacional Empresa S.A.), (EDF International EDF power distributioncompaniesintowhichSEGBAhadbeendivided. electric three the of two S.A.), (EDESUR S.A. Sur Distribuidora Empresa and Company”) “the or “Edenor” the Class “A” shares, representing 51% of the 591/92, capital stock of Empresa Distribuidora No. Norte S.A. (hereinafter, Resolution by Utilities, and Works approved the Public Bidding Terms and and Conditions (Bid Economy Package) of the of International Public Bidding for Ministry the sale of the 1992, 14, May On seven businessunits:threeforthedistributionandfourgenerationofelectricpower. Gran Buenos Aires S.A. (SEGBA) del was declared to Eléctricos be subject Servicios to privatization; the by operation was divided out into carried power electric of sale and distribution transportation, of generation, business entire the companies, state-owned Argentine of program privatization the Federal and Argentine Government the of process reform the with agreement in and 24,065 No. Law with compliance In | ORGANIZATION ANDSTART UPOFTHECOMPANY capital stock was executed on August 6, 1992. The award as well as the transfer contract were contract transfer the as well as award The 1992. 6, August on executed was stock capital JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Edenor. based on a bid of US$ 427,973,000 (equivalent to the to (equivalent 427,973,000 US$ of bid a on based Edenor Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA Edenor’s C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. capital stock (represented by the by (represented stock capital Socio financial statements 81 aforementioned agreement, the ownership of the Company’s Class “B” common shares (representing 39% of company controlling the is which EASA, of stock capital the of 100% of acquisition the through control indirect Company’s the in and New Equity Ventures LLC (NEV), the formal take over by Dolphin took place, together with the change and EASA in interest its of assignments partial subsequent Dolphin’s and On September 15, 2005, by virtue of the stock purchase-sale agreement entered into by EDFI and Dolphin upon itsapprovalbythecorrespondingFrench andArgentinegovernmentalauthorities. place took agreement the of closing The (ESOP). Program Ownership Stock Employee the to according manner,in interest 25% a retain would EDFI this In shares. common “B” Class the of 14% and EASA “A”by Class held all shares of common transfer (Dolphin) pursuant to which it would assign 65% of 65% assign would it which to pursuant (Dolphin) S.A. Energía Dolphin with agreement draft a approved EDF of Directors of Board the 2005, 29, June On increased to90%. ASTRA) and SAUR. Therefore, the direct and indirect interest of EDF International S.A. (EDFI) in and EASA of acquired shares EDF) the of all subsidiary wholly-owned (a S.A. International EDF 2001, 29, June and 4 May On RegistryofCommerceonAugust7,1997. the Public with registered and 417/97 No. Resolution through Electricidad), la de Regulador Nacional Ente - (ENRE Electricity of Distribution the for Authority Regulatory National the by approved was name of change the of description of the Company’s core business. The amendment to the Company’s by-laws as a consequence Empresa Distribuidora y Comercializadora Norte S.A. (Edenor On June 12, 1996, the Extraordinary Shareholders’ Meeting approved the change of the Company’s name to have beengrantedguaranteesbyreciprocalguaranteecompaniesownedtheCompany. secured credit facilities to service vendors and suppliers acting in the distribution and extending sale of including electricity,laws, Argentine who under created trusts of trustee as act may Company the addition, In and Argentina abroad. These in activities both may be electricity conducted of directly by distribution the to related know-how and services management and other voice, data and image transmission services, and render advisory, training, maintenance, consulting, or transmission electricity provide to network the lease agency, regulatory the of approval the to subject area. Furthermore, the Company may subscribe or acquire shares of other electricity distribution companies, The corporate purpose of values asofthedateprivatization. above. Management estimates that the amounts of the assets transferred from SEGBA represented their fair JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Edenor is to engage in the distribution and sale of electricity within the concession , by Dolphin (90%) and IEASA (10%). Furthermore, as a result of the of result a as Furthermore, (10%). IEASA and (90%) Dolphin by Edenor, held by ENDESA Internacional, YPF S.A. (surviving company of company (surviving S.A. YPF Internacional, ENDESA by held Edenor . The remaining 10% would be kept by the employees the by kept be would 10% remaining The Edenor. Edenor or through subsidiaries or related companies. Edenor’s Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 ) S.A. so that the new name would reflect the C.P.C.E.C.A.B.A. Tº1-Fº17 capital stock (held by EDFI) through the through EDFI) by (held stock capital Contador PúblicoU.C.A. Socio to IEASA S.A. (IEASA) S.A. IEASA to Edenor Edenor financial statements 82 on April 29, 2007 the ESOP was partially cancelled in advance in conformity with a procedure set forth set procedure a with conformity in advance in cancelled partially was ESOP the 2007 29, April on shares held by the Employee Stock Ownership Program (ESOP), regard to the Company’s Class “C” With shoe) contemplatedintheprospectusforpublicoffering andsection2oftheunderwritingagreement. (green option over-allotment the exercised fully underwriters international the when offering international the shareholders NEV and EDFI informed that they had sold 57,706,040 Class “B” shares at the secondary international secondary the at that offering they sold 49,401,480 Company and 179,049,520 Class “B” shares, respectively. the Additionally, informed on May 1, 2007, EDFI and NEV shareholders “B” Class The the that nominal valueofeachshareis1.00,anadditionalpaid-incapital,amountingto121,249,wasrecorded. account Takinginto share. per 2.62 of price a at out carried was issuance aforementioned The was madeonthisdateof207,902,540ClassBshares. primary offering, fully placed as 3,742,245 ADS. It was also reported that a secondary international offering international the at subscribed shares new hundred) nine thousand forty-four hundred eight million four above- the by resolved as mentioned Board of increase, Directors, amounted capital to nine percent final (9%) which is The represented respectively.by 74,844,900 (seventy- Exchange, Stock York New the and Depositary Shares (“ADSs”), representing Class B shares, are traded on the Buenos Aires Stock Exchange offering process. As a result of the above-mentioned process, the Company’s Class B shares and American On June 14, 2007, the Board of Directors approved the final report on of Directorstodeterminethetermsandconditionsscopeprogram. by represented program, (ADRs) Receipts Board the of responsibility the be Depositary would it that and created be would (ADSs) Shares Depositary American American an that decided was it Additionally, entrusting theBoardofDirectorswithtasktakingnecessarystepstoimplementsuchresolutions. well as authorization to trade from both the Buenos Aires Stock Exchange and the New York Stock Exchange, Securities National the both fromCommission (CNV) offering and the Securities public and Exchange the Commission (SEC) for of the United authorization States of request America, as (10%), percent ten to up ExtraordinaryOrdinaryandtheShareholders’ 2006, increase capitalstock7,Meeting resolved to June On States ofAmerica. United (NYSE), Exchange YorkStock New the and (BCBA) Exchange Stock Aires Buenos the on shares its of trading the to limited not but including, markets, international and local in stock capital Company’s the of part of offering public the initiate to decided Directors of Board Company’s the 2006, 28, April On the and NEV by remaining 25%beingkeptbyEDFI. held being now stock capital Company’s the of 14% with changed stock) capital its of JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Edenor’s Socio capital increase and public financial statements 83 (text consolidatedbyDecreeNo.677/2001). 17,811 No. Law of 68 Section of provisions the and regulations Commission’s the Securities National the of 9 for offering public Book XXVII, a Chapter 29, Section launch of terms the both to to pursuant shares decided own Company’s the Directors of acquisition of Board Company’s the 2008, 23, October On whichtogetherown100%ofthecapitalstockEASA. andIEASAS.A, Dolphin EnergíaS.A. of stock capital the of 100% acquired S.A. Energía Pampa date, such Moreover,on Branch. London AG, Miguel Mindlin, Gustavo Mariani, Latin Damián American Energy Mindlin, LLC, New Marcelo Equity Ventures Marcos LLC and S.A., Deutsche Bank Energía Pampa by into entered Agreement Subscription Stock a shares described in the preceding paragraph for had exchange formally been the agreed that upon on informed September was 28, it 2007 under whereby EASA from notice a received Company the Furthermore, Energía S.A. Pampa of shares common for exchanged be would S.A. IEASA and S.A. Energía Dolphin of stock capital the of totality the that agreed was it whereby understanding of memorandum a into entered S.A. Energía (that own 100% of the stock of Electricidad Argentina S.A., the controlling company of The Company was notified that on June 22, 2007, the shareholders of Dolphin Energía S.A. and IEASA S.A. to includetheperformanceofobligationsassumedbyCompanyinthisAdjustmentAgreement. Argentine Government granted as security for the performance of the Concession Agreement willwhich be extendedwas ratified by Decree No. 1957/2006, stipulates that the pledge on theMoreover, Company’s shares section in favor of19 the of the Adjustment Agreement entered into by the Company and the Argentine Government, a datesubsequenttothoseofsaidAgreements. first-priority preferred security interest to any Class “A” Shares of the Company that EASA would acquire on 31, 1992 and July 14, 1994 which, in accordance with their second clause, EASA was required to extend the Concession Agreement of compliance with the Bidding Terms and Conditions of the International Public Bidding, the in provisions of the Government, Argentine the of favor in pledge regulatory the thereto extend “A”and Class shares new the register S.A. Valores de Caja that requested Company the 2007, 30, “A”April On outstanding. shares Class the all of 51% hold to continues EASA that “A”ensure Class to into shares converted were shares contributed the 2007, company.27, controlling April the On is which EASA, to NEV by them to transferred been had that Company the of shares “B” Class 38,170,909 contributed IEASA and Dolphin Furthermore, representing shares, 0.22% oftheCompany’scapitalstock,remainsoutstanding. “C” Class 1,952,604 of amount an statements, financial these of issuance of date been had the of which As offering. secondary domestic the shares, at sold was 2007, 27, 81,208,416 April on shares “B” Class of into converted amount an 2007, 30, April on and Government, Federal the by JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora , Edenor and S.A. the terms of the related pledge agreements signed on August Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio Edenor) and Pampa financial statements 84 comprised ofthefollowing(Note16.a): is shares 906,455,100 by represented stock, capital Company’s the 2009, and 2010 31, December of As of treasuryshares,thathadcommencedonNovember18,2008,cametoanend. repurchase the for conditions and 120-calendar-dayterms the the 2009, in 17, stipulated March period On class Bshareswithanominalvalueof1pesoeachatanacquisitioncost6,130. 9,412,500 of total a processes, acquisition both through acquired, Company the 2008 31, December of As volatility inthemarketvalueofsharesgeneral. high of context a in shares own its of price purchase the determine to flexibility more with Company the mechanism previously described continue to exist, and secondly because such mechanism would provide offering public the through process acquisition the motivated that reasons the decision because This firstly taken Regulations. was CNV’s the and 677/2001) No. Decree by consolidated (text 17,811 No. Law of 68 section of terms the with accordance in transactions market through shares own Company’s the of On November 14, 2008, the Company’s Board of Directors decided to continue with the acquisition process purchase priceofthesharestobeacquiredwithinframeworkofferinginamountpesos0.65. Company’sacquisitionshares.theFurthermore,theownfor of DirectorsCompany’s thetheoffixed Board On October 30, 2008, the National Securities Commission (CNV) approved and the above-mentioned terms basic public the offering modified Directors of conditions oftheaforementionedoffering. Board Company’s the 2008, 29, October on Furthermore, the NationalSecuritiesCommission(CNV). from offering public above-mentioned the for authorization requested Company the 2008, 27, October On the within acquired shares treasury the holding framework ofsection68DecreeNo.677/01. for term the years 3 for extend to votes of majority by resolved which Meeting Annual General the held Company the 2011, 3, March On Meeting. Shareholders’ Ordinary the by extended is period such unless date, acquisition from as a years three within of period Company maximum the by sold be shall provisions aforementioned the of virtue by acquired shares The JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 85 EASA (1) Market ingeneral(2) New EquityVentures LLC Banco Nación(3) EDF InternacionalS.A. 2 the resultsofitsoperations. on effect adverse an with shares, pledged the on foreclose to agreement, concession the in stipulated as Company’s Class A shares held by them, and, consequently, the Argentine Government would be entitled, with its payment obligations under the new debt, its creditors could obtain an attachment order against the On July 19, 2006, EASA carried out a restructuring of the totality of its financial debt. If EASA did not comply (3) Trustee ofthe EmployeeStockOwnershipProgram. (2) Includes9,412,500treasurysharesasofDecember31,2010and2009. (1) ThesharesarepledgedinfavoroftheArgentineGovernmentasevidencedbycertificateissuedCajadeValores. Holder 2010 specific fewexceptionsandclarificationsintroducedbyGeneral ResolutionNo.459/04oftheCNV. the Professional Council in Economic Sciences of the Autonomous City of Buenos Aires (CPCECABA), with by adopted as (FACPCE) Sciences Economic in Councils Professional of Federation Argentine the of 21 (consolidated text June 2003). As from January 1, 2004, the Company has applied the provisions of TR No. 18 Technicalthrough of 16 provisions and the 9 with 8, conformity Nos. in (TR) loss Resolutions and profit its determines and liabilities and assets its of values the determines Company operations, CNV,the its of the results of the reports 434/03 No. Resolution General by required as and 2003 1, January from As The amountsofthesefinancialstatementsarestatedinthousandsArgentinepesos. paragraphs. generally following the in mentioned is which that account into taking (CNV), Commission Securities National the by principles accounting with accordance in accepted in the City of Buenos Aires, Argentina (hereinafter “Argentine prepared and the criteria GAAP”) established been have statements financial These Financial statementspresentation | BASISOFPRESENTATION OFTHEFINANCIALSTATEMENTS JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora 462,292,111 442,210,366 1,952,604 19 0 Number ofshares 2009 462,292,111 442,210,356 1,952,604 Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA 19 10 C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio Class “C” “B” “B” “B” “A” % held 51.00 48.78 0.22 0 0 financial statements 86 expense that will be recorded as a result of maintaining the criterion applied up to the moment, whose moment, the distribution insubsequentyearshasbeenestimatedasfollows: to up applied criterion the maintaining of result a as recorded be will that expense the years, tax income subsequent the than lower in been have would liability,that expense tax tax income an recorded have deferred would Company a recognize to elected Company the had Additionally, 24,978, wouldhavebeenrecorded(Note3.m). to amounting account, year,tax the income for the operations under of results the to credit approximately a and 358,263 of liability tax deferred a 2010 31, December of as difference, temporary a as equipment and property,plant its of inflation for adjustment the of effect the recognize to chosen Company the Had With regard to item (ii), the Company has decided to disclose said effect in a note to the financial statements. their finaldisposal)exceedsrecordedvalue(Note3.g). the fair value (defined as the discounted value of net cash flows arising from both the use of the assets and Company’s financial position or the results of operations for the year ended December 31, 2010, given that the on impact significant a have not does change said equipment, and property,plant Company’s the on under (i) paragraph the preceding in the changementioned of the application of to theimpact regard With acquired wouldqualify)duringthetermoftheirconstructionanduntiltheyareinconditiontobeused. of interest cost on certain assets (only those assets that require an extended period of time to be produced or disclosethe effect ofsuch accounting change innotea to tothe financial statements or liabilityand (iii) the tax capitalization deferred a recognize either to Company the allowing difference, temporary a as assets, betweenaccountingthe valuestaxandresulting fromadjustmentthe inflationfor includednon-monetary in certain assets and their recoverable values, using discounted cash-flows; ii) the consideration of the difference of valuescomparisonthe between the i) noted: be followingcanaforementioned thethechanges Among and adoptedbytheCPCECABA(ResolutionCDNo.93/05)withcertainamendmentsclarifications. FACPCE with the amendments introduced by such Federation through April 1, 2005 (Resolution No. 312/05) Interpretationsand23andapplication22 the21, 18,17,16,14, the11, of9, 4,8, and Nos. 6,3,TR 2,of 1, the Argentine GAAP effective for fiscal years or interim periods beginning as from The CNV,January 1,through its2006, General Resolutionsby requiring Nos. 485/05 and 487/06, decided to implement certain changes in Year

2013 -2017 2018 -2022 Remainder Total 2012 2011 JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 21,043 21,826 93,840 358,263 139,345 82,209 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Effect ondeferredtaxresult Socio Nominalvalue financial statements 87 the financialstatements. on significant not is 2003 30, September through statements financial the restated having not of effect the that estimated has Company The 2003. 30, September through restated be to were statements financial that establish which GAAP Argentine with agree not does criterion This 2003. 1, March from as statements accordance with Resolution No. 441 of the CNV, the Company discontinued the restatement of its financial in currency.Consequently,and nominal in prepared be to had date such from as ending years fiscal for statements financial that establishing 664 No. Decree issued FederalGovernment the 2003, 25, March On Domestic WholesalePriceIndex. the of variations the on based inflation of effects the reflect to restated been have statements financial The original date as from such date through December 31, 2001, be considered as restated as of the latter date. with transactions as well as 1995, 31, August through currency the of power purchasing the in change the was established that inflation adjustment be reinstated and that the accounting basis restated as a result of was inflation of effects the reflect to discontinued until December statements 31, 2001. As from January 1, 2002, and financial in accordance with Argentine GAAP, the of it restatement the authorities, control of through currency August 31, the 1995. As of from such power date, and purchasing in accordance the with Argentine in GAAP and the changes requirements the of effects the reflect fully statements financial The Consideration oftheeffectsinflation statements hadraisedobjectionsoraskedforclarification. and further explanation of those aspects concerning Resolution No. 562 about which the issuers of financial corrections to, solutions provides which 576 No. Resolution issued CNV the 2010, 1, July Additionally,on relevant factonApril28,2010. a as informed was approval Such Commission. Securities National the of 562 No. Resolution General by required plan implementation specific the approved Directors of Board Company’s the 2010, 27, April On from thefiscalyearbeginningJanuary1,2012. with the provisions of TR No. 26. The application of such regulations will be mandatory for the Company as requested authorization for their being included in such public offering regime would have be required or to comply 17,811, No. Law to pursuant notes corporate or stock capital their of offering public a make that Furthermore, on December 29, 2009, the CNV issued Resolution No. 562, according to which those entities Buenos AiresthroughResolutionNo.52/2009. of City Autonomous the of Sciences Economic in Council Professional the of Board the by approved been have TR aforementioned Additionally,the 2011. 1, January from as beginning will years which fiscal respectively,for 24” effect in and be 23 22, 21, 18, 17, 16, 14, 11, 9, 8, 6, Nos. TR to “Changes and (IASB)” Board Standards Accounting International the of (IFRSs) of “AdoptionStandards Reporting 27 Financial and International the 26 Nos. TR approved FACPCE the 2009, 12, June and 20 March on Furthermore, JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 88 d The amountsthusdetermined: c 3 b a The mainvaluationcriteriausedinthepreparationofthesefinancialstatementsareasfollow: | | | Currentinvestments | | VALUATION CRITERIA 2. 1. » » Trade receivables » » » » » Cash andbanks » » Otherreceivablesandliabilities(excludingloans)

the timevalueofmoneyandrisksspecifictoreceivableattheirinitialmeasurement. nominal rate, which, in accordance with the Company’s criterion, reasonably reflected market assessments of annual 10.5% a at discounted collected, be to amount the of estimate best the of basis the on valued been Temporarythe from resulting have schedule Tariff17.b) rate (Note electricity the (RTT) of Regime application Services rendered but unbilled as of theeach year, atnominalvalue,exceptforthoseindicatedinthefollowingparagraphs; of endend the of of eachas unbilled but year,rendered services and arisingcollected, not but billed fromand rendered theServices retroactive increase deriving from the each year. of end the of as price market prevailing the at valued been have which Shares, and notes Corporate year. each of end the of as price market prevailing the at valued been have which funds, market Money Time deposits,whichincludetheportionofinterestincomeaccruedthroughendeachyear. is disclosedinExhibitG. In foreign currency: at the exchange rates in effect as of the end of each year. The corresponding detail In localcurrency:atnominalvalue. In foreigncurrency:attheexchangeratesineffectasof endofeachyear(ExhibitG). In localcurrency:atnominalvalue. consider theeffectsofthatwhichisstatedinNote13. Note. are net of an allowance for doubtful accounts, as described in more detail in paragraph h) of this JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 89 f

e | Non-currentinvestments | of eachyear. end the of as value recoverable their exceed not does whole, a as taken supplies, of value carrying The used formaintenanceorcapitalexpenditures. be will they whether on depending non-current and current into supplies classified has Company The The consumptionofsupplieshasbeenvaluedbasedontheaveragecostmethod. 2. Note in indicated as inflation of effects the reflect to restated cost acquisition at valued were Supplies Supplies »

components accruedonthebasisofinternalratereturndeterminedatsuchopportunity. transaction,theimplicitinterest financingplusofandtime the estimatedattheirprice cashvaluedat be obtainedArgentinebeenhavetheapplied,beenif had GAAP inasmuch establish they as must they that as of the closing date of each year. The values thus obtained do not differLiabilities, excludingsignificantly loans, have been valued fromatnominal value including,those ifany, that interest wouldexpense accrued transaction estimatedatthetimeoftheirbeingrecordedinassetsandliabilities,respectively. and paid, respectively, discounted at collected be a to rate amount thatestimate best reflectsthe of basis the the timeon valued valuebe must of liabilities moneyand receivables andother the risks specific to the thatwouldhave beenobtained theArgentineif GAAPhadbeen applied, inasmuch theyasestablish that expense accrued as of the end of each year. The values thus obtained do not differ significantly from those Otherreceivables andliabilities havebeen valued indicatedas above including, any,if interest income or 0 itrs hl i te eae cmay AM SA ( cmay raie b mas f equal of means companies by distribution organized by contributions company (a S.A. SACME company related the in held interest 50% applied by those to similar are SACME by used principles accounting The used. been have 2009 and 2010 31, In order to determine the equity value, the audited financial statements of SACME S.A. as of December equity value(ExhibitC). its at recorded been has SACME in investment the 2009, and 2010 31, December of As distributors. aforementioned the to supplied power electric the monitoring of charge in is S.A. SACME Package). Edenor forthepreparationofitsfinancialstatements. JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora S.A. and EDESUR S.A. in accordance with the Bid the with accordance in S.A. EDESUR and S.A. Edenor Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 90 57,443 and49,566respectively. to amounted capitalized costs indirect and direct 2009, and 2010 31, December ended years the During 2009 amountedto19.522and24,966,respectively. the year ended December 31, 2010. Financial costs capitalized for the years ended December 31, 2010 during and and 2009 through 2006 from 2001, to 1997 from equipment and property,plant on costs financial capitalized Company The completion. or assembly construction, production, its with pursued purpose the on depending assets, other of up start or production the in used be to as so condition in not is asset the and complete; substantially not are sold or used be to condition a in asset the put to activities necessary the period; required technically the exceed not does completion or assembly construction, production, of period the interrupted; not are processes those time; of periods long take nature, their to due processes, be may asset given any to relation in costs capitalized when financial such asset 17, is in No. the process TR of production, of construction, assembly provisions or completion, and the such with accordance In and equipmentbasedoneachtechnicalprocess. property,plant of classification the in changes certain made has Company the account, the of disclosure was which assets the of life determined on the basis of useful the above-mentioned engineering studies. Furthermore, in order estimated to improve the the over method straight-line been the has applying Depreciation by depreciation. calculated accumulated related the of net 2, effects Note the in reflect indicated as to inflation restated of cost acquisition at valued been have date such to subsequent Additions were used.Accordingly, itwasnotpossible todeterminethehistoricalcostoftransferredassets. to transferred assets the which in operations the or operations distribution records its or to respect with information financial maintained nor statements financial separate prepared neither SEGBA million, valuedpropertyplantandequipmentat868millionpesos. Bid Package for 139.2 million pesos less the fair Privatizationvalue of certain SEGBA assets received from the SEGBA for under 103.2 Company the by assumed debts the of value fair the to added when acquisition of stock at capital stock entire the capital value to Company’s used the was price of Such 51% date. of acquisition the million for 427 EASA US$ by the paid on based actually price determined been has equipment and plant property, of value total The on the basisofengineeringstudiesconductedbyCompany.accounts assets individual to allocated was SEGBA from transferred the assets the of of value total as The 2. Note in valued indicated as were inflation of 1992 effects the reflect 1, to restated and below, September described as date on privatization SEGBA by transferred equipment and plant Property, g | Property, plantandequipment JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. at 832 million pesos, which, which, pesos, million 832 at Edenor Socio Edenor financial statements 91 h value asoftheendeachyear. The recorded value of property, plant and equipment, taken as a whole, does not exceed their recoverable Income accountunderGainfromthesaleofrealproperty(Note12). This transaction resulted in a gain, net of expenses, of 5,266 which has been included in the Other (Expense) Juan B.JustoStreetoftheCityBuenosAiresforatotalpriceUS$2,000,000. 845 and 839, 837, at located property real the sold Company the 2010, 31, December ended year the In 2009, and respectively. 2010 31, December of as interest Financial under Income of Statement the in 1,088 and 256 A) as of December 31, 2009; 3,744 in Other Liabilities under Other (Note 10) as of December 31, 2009, and For this concept, the Company has recorded 11,849 in the Property, plant and equipment account (Exhibit value oftheassetandcorrespondingfinancialcharges. consideration thereof, theCompany(lessee)agreestomakeoneormorepaymentsthatcovercurrent and risks the all substantially transfer In not. or transferred be may title ownership whose asset, they leased the of ownership the to incident rewards that are contracts lease these of characteristics Common on November27,2008theaforementionedagreementwasamendedsoastoextenditsscope. Additionally,Lease. Finance a as considered been has Aires, Buenos of City Autonomous the of Sciences Economic in Council Professional the of 18 TechnicalNo. of Resolution 4.1 section of provisions the with Furthermore, on May 19, 2008 the Company entered into a software lease agreement, which, in accordance | Allowances(ExhibitE) The evolutionandbalancesofallowanceshavebeendisclosed inExhibitE. detailed analysisofaccountsreceivableinlitigation. a considered has Company the allowance, the of amount the calculating of purposes Additionally,for and collectionssubsequentthereto. year each of end the through billed services for collections of series historical the on based determined receivables trade been has of allowance the of amount valuation The value. recoverable the estimated their to adjust up receivables other to and recorded been has it accounts: doubtful for Allowance JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 92 i | Accruedlitigation The evolutionandbalancesoftheaccruedlitigationaccount havebeendisclosedinExhibitE. 1) Amounts havebeenaccruedforseveralcontingencies. not haveamaterialadverseeffectontheCompany’sresult ofoperationsoritsfinancialposition. will matters above the to relation in accrued amounts of excess in loss any that estimates Company losses when: (i) payment thereof is probable, and (ii) the amount can be reasonably estimated. The of each year, management evaluates these contingencies and records an accrual for related potential 2) amount of2,637,thustheremainingbalanceCompany’sdebttotals10,353(Note9). an concept this for paid Company the 2010, 31, December of As costs. court of 868 plus 12,122 to amounted debt Company’s the plan, regularization tax the of assessment the with accordance In » » » » » The mainfeaturesoftheaforementionedmoratoriumareasfollow: On April 27, 2009, the Company adhered to the tax regularization plan established in Law No. 26,476. appeal process,paymentofsuchclaimhadbeensuspended. TaxFederal the to Court and appeal the National Appellate on Court in Contentious was and Administrative Federal matter Matters. During the This 29,521. for accrual an recorded had Company the concepts, these For fines. to cases, some in and, charges interest to subject were contingencies fiscal for returns tax income its Tax9,300. approximately for taxes on additional related assessed had and 1998, and 1997 1996, years Company the by made accounts doubtful for allowances of to course ordinary the from arising business. The Argentine tax contingencies authority (“AFIP”) had challenged certain income tax tax deductions related certain including agencies, and government courts several in proceedings administrative and lawsuits certain to party a is Company The The Company is also a party to civil and labor lawsuits in the ordinary course of business. At the end 30% to50%reductionintaxagentsandAFIPattorneys’fees. The remainingbalancepayablein120monthlyinstallmentswitha0.75%interestrate. plan; regularization the to adherence of time the at existing debt the of 6% to equal payment initial An owed; Waiver of late payment/default and penalty interest in the amount exceeding 30% of the principal to theregularizationplan; Waiver of fines and penalties on which no final judgment has been issued at the time of adherence JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A.

Socio financial statements 93 k j | Loans | Shareholders’equityaccounts Derivative financialinstruments(Note7). under Loans – Liabilities Current in contra-account a with both 23.b) (Note results Holding under 2009 holding and and (expense) 2010 31, December of income as Income of Statement Financial the of account assets by the generated (losses) gains in Company the by recognized been have contracts- futures -Forwardand instruments financial of basis accounting the in changes the whereas 23.a), (Note difference Exchange under 2010 31, December of as Income of Statement the of account liabilities by generated (losses) gains holding and (expense) income Financial the in Company the by recognized Furthermore,been have Notes- -Corporate instruments financial of basis accounting the in changes the or liabilitiesattheirfairvalue,regardlessofwhethertheyaredesignatedashedginginstrumentsnot. Economic in Councils Professional Sciences (FACPCE), of which require that all derivative financial instruments be recognized as assets and/ Federation Argentine the of 18 No. Resolution Technical of 2 “Derivative financial instruments” (Note 23) have been valued in accordance with the provisions of section time oftheirinitialrecognition. transaction costs, plus financial results accrued on the basis of the internal rate of return estimated at the must be valued in accordance with the amount of money delivered and received, respectively, net of the debts financial that establish they as inasmuch applied, been had GAAP Argentine the if obtained been have would that those from significantly differ not do obtained thus values The year. each of end the of as accrued expense interest plus value nominal at valued been have debts financial the of rest The respectively.2009, and 2010 31, December of as 5,243 and 4,198 of losses generated measurement, initial the of time the at effect in rate market the at notes, the of flows cash future of value present to adjustment The market reflects reasonably that rate a at assessments ofthetimevaluemoneyandspecificdebtrisks,netissuanceexpenses. discounted paid, be to amount the of estimate best the of basis the on valued been have 14) (Note dollars States United in issued year-end,notes each the of As Stock over its nominal value has been included in the “Shareholders’ Contributions – Adjustment Adjustment – Contributions “Shareholders’ the to Capital”account. in included been has value nominal its accounts over Stock Capital” Paid-in Capital of “Additional value adjusted the and of excess The value. value” nominal their at maintained been have Nominal which - except Contributions 2, Note in indicated “Shareholders’ as the inflation of for effects the reflect to restated been have accounts These JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 94 m l | Statementofincomeaccounts | » » » » Company (Note1). The Treasury Stock account represents the nominal value of the Company’s own shares acquired by the Income taxandonminimumpresumedincome (Loss) Incomefortheyearbeforetaxes effect in (35%) tothe(loss)incomebeforetaxesforeachyear,rate isasfollows: tax the applying from result would that amount the and 2009, and 2010 31, December ended years the for income of statement the to charged as tax income the between reconciliation The of presentationthefinancialstatements). (the Board) No. 11/03 of the CPCECABA and General Resolution No. 487/06 of the CNV (Note 2 – Basis property, plant and equipment to of reflect the restatement effects of the inflation, the Regarding Company has purposes. applied Resolution tax MD and accounting for liabilities and assets of valuation the method consists of recognizing deferred tax assets and liabilities when temporary differences arise from The ArgentineGAAPrequirethe application ofthe deferred taxmethodtoaccount for incometax.This Accruals andother Adjustment forinflationofproperty, plantandequipment Permanent differences: (Loss) Incomefortheyearatapplicabletaxrate Applicable taxrate Income taxfortheyear Variation betweendeferredassets(liabilities)chargedto(loss) income Total incometaxchargefortheyear Adjustment Incometaxreturn value. nominal at stated is receivables trade other and Agreement Adjustment the in upon agreed increase The adjustment to present value of trade receivables related to the application of the retroactive tariff The adjustmenttopresentvalueofthenotesisstatedatnominalvalue. (expense) generatedbyassetsandliabilities. Financial income (expense) and holding gains (losses) have been disclosed separately under income The accountsthataccumulatemonetarytransactionshavebeendisclosedattheirnominalvalues. JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio (75,167) (26,308) 24,978 (1,136) 16,235 17,371 2010 35% 194 0

169,954 26,980 59,484 95,570 14,623 79,311 (7,153) 1,636 2009 35% financial statements 95 n | Operatingleases and LasHerassubstation. Nuevo) Puerto and Puerto Nuevo Central of perimeter the within located land of plot of a and buildings (comprised building headquarters the warehouses, administration, commercial two and technical offices), the Handling and Energy Transformation offices, Center (two commercial for are Buildings cancelable termsandleaseperiodsoftwotothirteenyears. have contracts lease operating All thereto. modifications of kind any making and/or use its changing clause for the term thereof); and there are prohibitions such as: transferring or sub-leasing the building, renewal automatic an has that for Center Transformation (except Energy and clauses Handling the term of contract renewal lease the nor clauses option purchase neither are there amounts; fixed as Common characteristics of these lease contracts are that lease payments (installments) are established As lessee,EDENORhasleasecontracts(buildings)whichclassifyasoperatingleases. Netdeferredtaxassets Property, plantandequipmentother Non-current deferredtaxliabilities Other Accruals Tax-loss carryforward Non-current deferredtaxassets as follows: is 2009 and 2010 31, December of as liabilities and assets tax deferred of Additionally,breakdown the Netdeferredtaxassets-Endingbalance income Variation betweendeferredassets(liabilities)chargedto(loss) Useoftaxlosscarryforward Netdeferredtaxassets-Initialbalance tax chargeof12,926(Note5). income presumed minimum a determined has Company the 2010, 31, December of as Furthermore, JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio (82,725) 104,446 104,446 187,171 162,053 13,532 11,586 14,623 87,075 2010 0

145,384 127,033 (58,309) (8,316) 87,075 87,075 14,058 38,571 80,768 4,293 2009 financial statements 96 2016 2015 2014 2013 2012 2011 2010 are asfollow: leases operating to respect with payments lease minimum future 2009, and 2010 31, December of As Total leaseexpenses follow: as are 2009 and 2010 31, December ended years the for Totalleases operating all for expenses rental Total futureminimumleasepayments are asfollow: leases operating to respect with collections lease minimum future 2009, and 2010 31, December of As automatic renewalclauses. granting them the right to use the poles of the Company’s network. Most of such lease contracts include lessor,As Total rental income for all operating leases for the years ended December 31, 2009 and 2008, is as follows: is 2008, and 2009 31, December ended years the for leases operating all for income Totalrental 2010 2013 2012 2011 2014 Total futureminimumleasecollections has entered into operating lease contracts with certain cable television companies television cable certain with contracts lease operating into entered has Edenor JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. 35,330 22,931 13,130 20,898 2,900 8,406 8,470 8,659 6,748 1,924 2010 2010 2010 Socio 147 89 20 0 0 27,385 12,294 12,831 11,884 2,167 2,645 8,400 8,478 2009 2009 2009 147 147 209 336 75 18 0 financial statements 97 o 2009 areasfollow: and 2010 31, December ended years the for plan benefits personnel the of components periodical The 9,789 (non-current),respectively(Note8). payment future represents liability and 6,845 and (current) 6,185 and 6,165 to amount 2009 and 2010 31, December accrued of as which obligations related The option. this them offer may Company the age, Early retirements payable corresponds to individual optional agreements. After employees reach a specific personnel benefits,respectively(Note8). other seniority-basedand as bonus account taxes” security social and “Salaries the under disclosed been have liabilities Such 2009. and actuarial 2010 31, of December of basis as the actuary independent on an respectively,by conducted 2009, studies and 2010 31, December of as plans both of beneficiaries the by accrued rights all account into taking determined been have employees, to granted be to plans) (pension benefits personnel other and bonus seniority-based above-mentioned the to related Liabilities | They includethefollowingcharges: Labor costliabilitiesandearlyretirementspayable » » » Total leaseincome(Note11)

Amortization ofrecognizednetactuarialloss Interest Cost these benefitsamountedto31,356and24,820,respectively(Note8). for accrual the 2009, and 2010 31, December of As effect. in agreements bargaining collective in for other personnel benefits (pension plan) of to be granted to years employees upon retirement, of as stipulated number and 2009,theaccrualforsuchbonusesamountedto12,4329,064,respectively(Note8), specified a with employees 2010 31, December of As effect. in to agreements bargaining collective in stipulated as employment, granted be to bonus seniority-based for for supplementarybenefitsofleavesabsencederivedfromaccumulatedvacation, JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. 18,114 2010 Socio 10,467 7,825 1,828 2010 814 13,582 2009 7,765 4,843 1,608 1,314 2009 financial statements 98

p personnel the to related assets any benefits plan(pensionplan). have not does Company the 2009, and 2010 31, December of As The actuarialmethodusedbytheCompanyis“ProjectedUnitCreditMethod”. Actuarial assumptionsusedwerethefollowing: of December31,2010and2009isasfollows: as plan benefits personnel the under commitments payment Company’s the in variations the of detail The | Customerdepositsandcontributions Customerdeposits Under theConcessionAgreement,Companyisallowedtoreceive customerdepositsinthefollowingcases: 4. 3. 2. 1. Total personnelbenefitsplan(Note8) Unrecognized netactuarialloss plan attheendofyear Payment commitmentsunderthepersonnelbenefits at theendofyear Payment commitmentsunderthepersonnelbenefitsplan Benefits paidtoparticipatingemployees Inflation Salary increase Discount rate Actuarial income(loss) Interest Cost at thebeginningofyear Payment commitmentsunderthepersonnelbenefitsplan When thecustomerisundergoingliquidatedbankruptcyor reorganizationproceedings. When thepowersupplyisreconnectedandCompanyable toverifytheillegaluseofservice(fraud). When servicehasbeensuspendedmorethanonceinone-year period; of thepremises; When the power supply is requested and the user is unable to provide evidence of his legal ownership JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio (10,136) (3,928) 31,356 41,492 41,492 31,195 4,572 7,825 1,828 2010 2010 18% 15% 24% (6,375) 24,820 31,195 31,195 26,623 11.5% 4,843 1,608 (886) (993) 2009 2009 15% 25% financial statements 99 q | Revenuerecognition agreements. Suchadvancesarestatedatnominalvalueasoftheendeachyear. The Company receives advances from certain customers for services to be provided based on individual Customer contributions principal amountplusanyinterestaccruedthereonarecreditedtothecustomer’saccount. When the conditions for which the Company is allowed to receive customer deposits no longer exist, the electric powerconsumption. of lack a Consequently, to payment. customer partially,or fully either recovers, Company the for owed amount any due disconnected so is service amount supply the the from when followed deducted are is procedures service Similar credited. supply the of disconnection the requesting of time the at (principal amount plus any interest accrued up to the date of reimbursement). Any balance outstanding credited is deposit customer’s the disconnected, be service supply the that requests customer a When at aspecificrateofBancodelaNaciónArgentinacalled“reference”rate. Customer deposits may be either paid in cash or through the customer’s bill and accrue monthly interest The Companyhasdecidednottorequestcustomerdepositsfromresidentialtariffcustomers. as fromFebruary 1,2007,wasapprovedbyResolutionNo.51/2007oftheENRE. applicableschedule, rate electricity new the that year fiscal this during was it as 17.b) (Note 2007 31, January through 2005 November of period the for consumption non-residential to Tariff (RTT) Regime from the of resulting rate Temporaryfrom schedule the deriving the application increase electricity tariff retroactive the from revenues recognized Company the 2007, 31, December ended year the During with thetransactionflowtoCompany. substantially been has completed, process the amount earning of revenues may revenue be reasonably measured Company’s and the the economic benefits associated when recognized are revenues All new connections,rightsofuseonpoles,transportationelectricitytootherdistributioncompanies,etc. distributionas services,suchconceptsincludedin other recognizes revenuesfrom alsoCompany The electricity year andhavebeenvaluedonthebasisofapplicabletariffs. from mainly each of end derive the at unbilled, and or billed whether supplied, basis electricity include revenues accrual Such distribution. an on recognized are operations from Revenues JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 100 s r | | Losses-Earningspershare Estimates cul eut ad mut my ifr rm h etmts sd n h peaain f h financial the of preparation the in used estimates statements. the from differ may amounts and results Actual statements. financial the of date the at liabilities and assets contingent of disclosure the and liabilities and assets of amounts reported the affect that estimates make to Management and Directors of Board The preparation of the financial statements in accordance with Argentine GAAP requires the Company’s Secretariat. Electric of Use Rational the Energy National the of 1037/2007 No. Resolution of provisions for the with accordance Powerin (PUREE), Program the of application the deducted from be deriving funds funds such excess the that from allow to and pending, was recognition whose 2007 October through 2007 May period the to corresponding (MMC) Mechanism Monitoring Cost the of application the from Authority for the Distribution of Electricity was instructed to consider the earmarking of the funds deriving By Note No. 1383 dated November 26, 2008 of the National Energy Secretariat, the National Regulatory 324/2008 (Note17.b). 2007 October No. Resolution of through provisions the with 2007 accordance in 2008, May 1, July from as tariff period the to transferred the were to corresponding those 2006 as well May as period 2007 the April for through (MMC) Mechanism Monitoring Cost the to corresponding amounts The Energy Secretariat. compensation mechanism established in the aforementioned Resolution No. 1037/2007 of the National MMC the approves which 710/2007 No. Resolution issued ENRE the Additionally,2007 25, October on applicable asfromMay1,2007,amountsto9.63%. 2007, April through 2006 May period the for adjustment MMC authority.the that regulatory establishes also the resolution The by granted is tariff the to transfer their until (PUREE), Power Electric of Use Rational the for Program the of implementation the from deriving customers, to made discounts and billed surcharges between difference the from resulting funds the from deducted be c) and b 17 (Note 2007 April through 2006 May period the for (MMC) Mechanism amounts Monitoring Cost Quarterly the the to as corresponding the well as for 25,957, No. Company Law of the 1 Section by by implemented (CAT) paid Coefficient Adjustment amounts the that establishes resolution Said Secretariat. the 2007 4, October On 2009 which amounts to 897,042,600 (net of the treasury shares as of December 31, 2010 and 2009 for 2009 and 2010 31, December of as shares treasury the of (net 897,042,600 to amounts which 2009 and 2010 31, December of as outstanding shares of number the of basis the on computed been has It JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora published Resolution No. 1037/2007 of the National Energy National the of 1037/2007 No. Resolution published Gazette Official Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 101 t u | Segmentinformation | Riskmanagement 3.j, 7and23.a). (Notes ParNotes Rate Fixed 9 Class debt, financial its of dates payment interest four next the in pay to instruments with the aim of hedging the exchange rate of the amounts in foreign currency that it will have Additionally, as of December 31, 2010, the Company has carried out transactions with derivative financial 7 and23.b). 5, (Notes exchange of rate dollar US the in fluctuations the by generated risk the mitigating of aim the with contracts futures and forward into entered has Company the 2009, and 2010 31, December of As floating rates;consequentlytheCompany’sexposuretointerestrateriskislimited(Note14). inU.S. dollars. Asof December 31, 2010, minimuma portion ofthe Company’s debts accrues interest at non-monetarydenominatedor Argentinein pesos, whereas themajority itsofliabilities aredenominated political and economic-related issues affecting the country. The majorityother andof governmentaltaxespolicies,economic thein changescontrols, priceCompany’sregulations, rates, interest assets are either The Company operates mainly in Argentina. Its business may be affected by inflation, currency devaluation, shares norcorporatenotesconvertibleintocommonshares. preferred neither issued has Company the as dilution, share per (loss) earning no is There 9,412,500). as describedaboveisnotnecessary. evaluates the Company’s performance based on net Management income. Accordingly, the distribution. disclosure of information of methods the and area geographical the customers, of category or type the process, distribution electricity the and services and products their of nature the to as similar are the provision of this public service. The Company’s activities have similar economic characteristics and and sale in a specific geographical area, pursuant to the terms of the concession agreement that governs distribution electricity segment, business single a in operates that monopoly natural a is Company The major customers. establishes the criterion to be applied by the Company to disclose its services, geographical areas and also 18 No. TR performance. asset’s an of determination the obtained, or resources of allocation the be for whether may information financial different which about activity Company’s the of components of selective information on operating segments in interim financial for reports. Operating segments followed are those be to reporting the requires criterion and statements, financial annual in segments operating on information reporting the establishes Resolution This met. are requirements certain provided In accordance with the provisions of TR No. 18, the Company is required to disclose segment information JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 102 v w | Concentration risks | Foreigncurrencytranslation/transactions As of the date of issuance of these financial statements, meetings aimed at negotiating the renewal the negotiating terms ofbothcollectivebargainingagreementsarebeingheld withtheabove-mentionedunions. at aimed meetings statements, financial these of issuance of date the of As Ministry ofLaborandSocialSecurityonNovember17,2006October5,2006,respectively. the by approved were agreements These respectively. 2007, 31, October and 2007 31, December on expired which Energía, de Empresas de Superior Personal de Asociación the and Federal Capital la de During 2005, two new collective bargaining agreements were signed with the lawsuits inprocessatsuchdate. originated in events occurred before the take-over date, as well as for any or other accrued obligations obligations deriving security from social and labor any for liable fully be will SEGBA Package, Bid the to According Secretariat. the Energy the to of 26/92 relation No. Resolution in through Company SEGBA by the transferred personnel and SEGBA both of responsibilities the forth sets Package Bid The in placeorthattherewillbenostrikesbeforeduringthenegotiationprocess. will be able to negotiate new collective bargaining agreements under the same terms as those currently Company the that guarantee no year.is fiscal There 2007 the of end the at expired unions with signed agreements bargaining collective Furthermore, operations. of results the and business Company’s the on effect adverse material a have could which future, the in strikes or disruptions work no be will there union were that ensure not employees may Company the stable, Company’s currently is unions with the relationship the Although members. of 80% approximately 2009, and 2010 31, December of As Related toemployeeswhoareunionmembers and 13,issubjecttocompliancewiththetermsofsuchagreement. respectively,2009, and 2010 31, December of as 54,823 and 33,047 to amount 4 Notes in disclosed as which Agreement, Framework the to related balances receivables 2010 trade of 31, collectibility The December 2009. and ended years the for sales of 10% than more for accounted customer single No The Company’saccountsreceivablederiveprimarilyfromthesaleofelectricpower. Related tocustomers as follows: The Company accounts for foreign currency denominated assets and liabilities and related transactions JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio Sindicato de Luz y Fuerza financial statements 103 x | Financialstatements comparison under “Financialincome(expense)andholdinggains(losses)”. The effect of such transactions has been included in the Statement of Income as “Exchange difference” the offerpriceisusedforliabilities. and assets, for used is price bid currency,the foreign in denominated balances and transactions For b) a) For conversionpurposes,thefollowingexchangeratesareused: collected, paidortobepaid. be to or collected amount the represents pesos in amount resulting the below.Thus, described rates exchange the using pesos into translated and are currency foreign transactions in denominated balances other outstanding collections, payments, sales, purchases, of measurements accounting The or intheresultsofoperationsforyearendedasthatdate. Such reclassifications do not imply any changes in shareholders’ equity as of December 31, 2009 and/ of as statements financial the for December 31,2010. used criteria disclosure the following purposes, comparative for reclassified been have 2009 31, December of as statements financial the in disclosed amounts Certain in foreigncurrency. the other exchange rate and in effect collections at the payments, date of for the financial transaction, statements, for the assets and of transactions denominatedinforeigncurrency;and liabilities denominated date the at effect in rate exchange the JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 104

Salesofelectricity Unbilled Receivables fromsalesofelectricity Non-Current: Allowancefordoubtfulaccounts(ExhibitE) Less: 4 AdjustmenttopresentvalueofFramework Agreement(Note13) electricityrateschedule(Note17.bitemd) Retroactivetariffincreasearisingfromtheapplicationof thenew Subtotal electricityrateschedule(Note17.bitemd) Retroactivetariffincreasearisingfromtheapplicationofnew Salesofelectricity Unbilled Billed Receivables fromsalesofelectricity: Current: The detailoftradereceivablesasDecember31,2010and2009isfollows: Framework Agreement (Notes 3.v and 13) fromtheapplicationofnewelectricityrateschedule (Note3.c) Adjustmenttopresentvalueoftheretroactivetariffincrease arising In litigation andothers(Note17.b) Specific fee payable for the expansion of the network, transportation Framework Agreement (Notes3.vand13) fromtheapplicationofnewelectricityrateschedule(Note3.c) Adjustmenttopresentvalueoftheretroactivetariffincreasearising BondsforthecancellationofdebtsProvinceBs.As.(Note13) NationalFund ofElectricity (Note 17.a) Bs.As.(Note13) Framework Agreement -Payment planagreementwiththeProvinceof AdjustmenttopresentvalueofFramework Agreement(Note13) | TRADERECEIVABLES

JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora

Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio (29,259) 421,193 450,452 149,046 216,749 14,681 45,531 45,531 21,442 018,55 33,047 (1,170) 4,477 8,743 3,437 2010 0 0 0 0 0

181,595 (19,688) 389,236 408,924 139,181 10,815 45,531 31,795 87,047 37,391 36,273 (4,710) (4,119) (2,516) (1,406) 2,459 2,292 2,840 2009 0 0 financial statements 105

Other onaccount) Tax onminimumpresumedincome(netofadvancesandpayments

Netdeferredtaxassets(Note3.m) Prepaidexpenses Non-current: Other(4) Tax onfinancialtransactions (4) foreign currency(ExhibitG)asofDecember31,2009. (3) (2) (1 5 Initialmarginsandother(3) Allowanceforotherdoubtfulaccounts(ExhibitE) Receivables from activities other than the main activity (2) Relatedparties(Note15) Advancestopersonnel Advancestosuppliers The detailofotherreceivablesasDecember31,2010and2009isfollows: Prepaid expenses (1) Current: | Includes 70and447inforeigncurrency(ExhibitG)asofDecember31,20102009,respectively. Related to initial margins on derivative financial instruments (Notes 3.u and 23.b), 22,899 of which are denominated in in denominated are which of 22,899 23.b), and 3.u (Notes instruments financial derivative on margins initial to Related Includes 607 and 129 in foreign currency (Exhibit G) as of December 31, 2010 and 2009, respectively. Includes 3,970and1,367inforeigncurrency(ExhibitG)asofDecember31,20102009,respectively. OTHERRECEIVABLES JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora

Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio (12,799) 119,249 104,446 12,283 43,361 10,062 23,321 1,321 1,199 3,693 4,169 6,276 4,014 4,625 2010 0

88,756 87,075 61,098 32,544 20,402 (7,908) 4,436 1,439 2,800 1,604 6,396 2009 242 682 142 0 financial statements 106 (3) DebtrecognitionandrefinancingagreemententeredintowiththeONABE(Note17.c). refinancing agreemententeredintowiththeONABE(Note17.c). (2) for8asofDecember31,2010(Note15). balances withPréstamosyServiciosS.A. respectively,and2009, and 2010 31, December of as 1,000 and 1,392 for S.A. SACME with balances includes Also, (1) 6 Unbilled electric power purchases Payables for purchase of electricity and other purchases (1) Current: The detailoftradeaccountspayableasDecember31,2010and2009isfollows: Customercontributions(Note3.p) Other(2)

Customerdeposits(Note3.p) Non-Current: Other(3)

| nlds 2 ad 8 a o Dcme 3, 00 n 20, epciey eae t te et eonto and recognition debt the to related respectively 2009, and 2010 31, December of as 683 and 821 Includes TRADEACCOUNTSPAYABLE nlds 003 n 2,3 i frin urny Ehbt ) s f eebr 1 21 ad 09 respectively. 2009, and 2010 31, December of as G) (Exhibit currency foreign in 29,034 and 20,053 Includes JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora

Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio 221,626 111,860 378,505 33,965 11,054 49,129 50,984 1,855 2010

214,693 347,782 92,945 28,874 11,270 11,270 44,179 46,854 2,675 2009 financial statements 107 (3) Netofissuanceexpensesfor44,202. (2) Inforeigncurrency(ExhibitG)asofDecember31,2010and2009. (1) 7 Principal Financialloans: Current: The detailofloansasDecember31,2010and2009isfollows: Subtotaldebtforfinancialloans Interest FloatingRatePar Notes-Class8 CorporateNotes(Note14): Subtotaldebtforcorporatenotes Derivativefinancialinstruments(Notes3.u,3.j,23.aand23.b) Interest(1) DebtforCorporateNotesatpresentvalue Adjustmenttopresentvalueofnotes(Note3.j) FloatingRatePar Notes-ClassA(2)

FloatingRatePar Notes-Class8 Corporate Notes(Note14): Non-current: FixedandIncrementalRatePar Notes-ClassA(2) FixedRateNotes-Class7(2) FloatingRatePar Notes-ClassA(2) DebtforCorporateNotesatpresentvalue Adjustmenttopresentvalueofnotes(Note3.j) Subtotaldebtforcorporatenotes FixedRateNotes-Class9(2)(3) | Includes19,691and13,996inforeigncurrency(ExhibitG)asofDecember 31,2010and2009,respectively. LOANS JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio 1,035,113 1,035,113 1,052,686 871,476 (17,573) 23,285 54,280 21,237 54,108 54,108 34,951 98,446 47,813 7,253 2,505 2010 (172) 0 0 0 0

565,022 707,499 707,499 729,442 (21,943) 43,333 43,638 17,464 39,350 15,885 39,350 82,988 58,236 58,091 48,093 6,001 2009 305 0 0 0 financial statements 108 8 Social Security (ANSES) Salaries payable and accruals Current: The detailofsalariesandsocialsecuritytaxesasDecember31,20102009isfollows: The detailoftaxesasDecember31,2010and2009isfollows: Provincial,municipalandfederalcontributionstaxes Current: Personnel BenefitsPlan Non-Current (Note3.o): Earlyretirementspayable(Note3.o) Value AddedTax (VAT) Seniority-based bonus withholdingsandpaymentsonaccount)(Note3.m) Incometaxandonminimumpresumedincome(netofadvances, Earlyretirementspayable Municipaltaxes Withholdings 9 Other Tax regularizationplanLawNo.26,476(Note3.i.1) | | SALARIESANDSOCIALSECURITYTAXES TAXES JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora

Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio 160,616 180,432 111,080 13,651 32,024 31,356 30,901 12,432 50,633 27,159 6,165 6,845 9,798 9,834 1,364 2010 2010 0

101,435 118,377 140,301 9,064 10,757 28,957 24,820 28,554 37,867 43,673 24,693 6,185 9,789 9,505 9,464 1,261 2009 2009 financial statements 109 Additionally, includes3,744relatedtothesoftwareleaseagreement(Note3.g)asofDecember31,2009. (1) Other (1) Current: The detailofotherliabilitiesasDecember31,2010and2009isfollows: 10 |OTHERLIABILITIES Tax regularizationplanLawNo.26,476(Note3.i.1) Non-Current: ENREpenaltiesanddiscounts(Note17ab) Non-current: Programfortherationaluseofelectricpower(PUREE)(Note17a) Includes 1,345and1,370inforeigncurrency(ExhibitG)asofDecember31,20102009,respectively.

JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio 455,421 984,518 529,097 4,542 8,989 4,542 2010 2010

377,456 610,775 233,319 8,012 9,374 8,012 2009 2009 financial statements 110 follows: as is 2008 and 2009 31, December ended years the for net - (expense) income other of breakdown The The breakdownofnetsalesfortheyearsendedDecember31,2010and2009isasfollows: Latepaymentcharges Salesofelectricity(1) 12 2009, and 2010 31, December ended years the respectively (Note17aandb). for 58,500 and 80,006 for penalties and discounts ENRE of Net (1) 11 Rightofuseonpoles(Note3.n) Reconnectioncharges Connectioncharges Recovery ofallowancefordoubtfulaccounts(1) Gain fromthesaleofrealproperty(Note3.g) Disposal ofproperty, plantandequipment(Exhibit A) Accrued litigation(ExhibitE) Net recoveryofaccruedlitigation(2) Other Severance paid Commissions onmunicipaltaxescollection Voluntary Retirements-Bonuses Net expensefromtechnicalservices Non-operating income

(2) RelatedtotheCompany’sadherencetaxregularizationplan (Note3.i). (1) RelatedtotheFramework AgreementProvinceofBuenosAires(Note13,ExhibitsEand H). | OTHER (EXPENSE) - INCOME, NET | NETSALES JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora

Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A.

Socio 2,125,390 2,173,644 (9,810) (10,103) (4,114) 22,197 18,114 (4,658) (1,125) (1,213) 5,266 4,905 2,393 5,550 2010 2010 247 985 0 0 2,035,845 2,077,860 (15,500) 23,290 20,686 13,582 21,236 23,431 (4,419) (2,763) (5,381) 2,047 5,700 2009 2009 4,529 3,844 (902) (785) 0 financial statements 111 13 | FRAMEWORKAGREEMENT the agreementisrenewedforaperiodoffouryearstocommence asfromJanuary1,2007. the Government of the Province of Buenos Aires and the Company, according to which the term of by into entered Agreement Framework New the to Addendum the ratifies which 732, No. Decree the 2009, 18, June on Additionally, the in established regulations the of extension the approves Addendum tothenewFramework AgreementinthetermsofResolutionNo.22/2004. Electricity of Authority Distribution Regulatory National the the for 158/2009, No. Resolution by 2009, 11, March on Furthermore, the agreementisrenewedforaperiodoffouryearstocommenceasfromJanuary1,2007. Agreement entered into by the Federal Government and the Company, according to which the term of Federal Planning, Public Investment and Services which ratifies the Addendum to the New Framework the 2008, 22, September On aforementioned Framework AgreementexpiredonDecember31,2006 The agree. so parties the should term four-year another for renewed be could and 2003 1, January from as as from to commence years provided four was agreement of framework new the term The 1, 2002. services September the all covered retroactively which and agreement, to previous similar the was of purpose that whose Aires, Buenos of Province the of Government the and Government Federal Argentine the with Agreement Framework new a signed Company the 2003, 6, October On shantytowns those which uptothenhadnotbeenrecognized. identify to as so conducted was census population new a Furthermore, effect. in be to continued Regulations the and Agreement Framework the of provisions original the period additional such During 31, 2002. August ending period fifty-month for an of additional the Agreement term the extend to agreed parties the recognized, be to had which appeared had shantytowns new the within period, although most stipulated originally fulfilled of them had and completely been also accomplished, considering that be could Agreement the of objectives the of all not that account into taking and circumstances, certain under adjustments and/or review to subject be could Agreement the of conditions and terms the that stipulated which Agreement, the of 13 section by permitted As shantytowns. and areas low-income to supplied electricity of for Fund non-payments any Special a from compensation receive to entitled is Company the Agreement, Framework at aimed Agreement Framework a signed Aires resolving the issue of Buenos supplying electricity to of low-income areas and shantytowns. Pursuant Province to such the of Government the and Government Federal the Argentine S.A., EDESUR with the together 10, Company, 1994, On January JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora ulse Rslto N. 0/08 f h Mnsr of Ministry the of 900/2008 No. Resolution published Gazette Official of the Province of Buenos Aires published published Aires Buenos of Province the of Gazette Official Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 112 14 | CORPORATE NOTESPROGRAM average termofmorethan8years,atancost 8%andfinalmaturityin2019. an with million, 376.4 US$ to reduced was 2006, February22, of as million 540.9 US$ to amounted which restructuring, the to prior debt defaulted the process, restructuring the of a As result 2006. 31, December year ended the fiscal out throughout debt was carried of the Company’s The restructuring Extrajudicial) (theAPE). Preventivo (Acuerdo agreement reorganization out-of-court an and/or Offer) Exchange Voluntary (the offer exchange voluntary a to debt pursuant such Restructuring) (the of notes and cash of exchange combination a the for through debt financial Company’s the of restructuring the for consent of solicitation a of launching the approved Directors of Board Company’s the 2006, 19, January On RESTRUCTURING OFFINANCIALDEBT and hasinitiatedthecorrespondingcollectionproceedings. concept this for collected be to amounts the validate to documentation the with ENRE the provided has Company the ratified, totally been respectively has Agreement 54,823, Framework the and that fact 33,047 the to Due to 4). (Note amount Aires Buenos of Province the of Government the and Government Federal Argentine the with balances 2009, and 2010 31, December of as Additionally, Company amountsto8,743(Note4). the by held Debts of Cancellation the for Bonds of balance the has 2010, 31, December of As agreement Directors. of Board aforementioned Company’s the and The Aires Buenos of 32,797. Province the of of Power Executive amount the by the ratified been in therein stated debt the Debts, of Cancellation the for Bonds with paid and verified Aires Buenos of Province the of which Government to the pursuant Aires Buenos of Province the of Government the with Agreement Plan Payment a into entered Company the 2010, March in regulations, their and Aires) Buenos de Provincia la de issuance of bonds for the cancellation of debts of such province (Bonos de Cancelación de Deudas the to related Aires Buenos of Province the of 2,789/09 No. Decree and 14,062 No. Law of virtue By received Company the 2010, December payments fromtheArgentineFederal Governmentfor20,000and19,291,respectively. through March and 2009 November-December During the correspondingnegotiations. have agreements abovementioned the statements, expired. Nevertheless, the Company considers that they will be renewed financial and has therefore begun these of issuance of date the of As JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 113 with thefirstinterestpaymentmaturingonAugust7,2009. year, each of 7 February and 7 November 7, August 7, May on quarterly payable 6.75%, of spread a plus rate BADLAR private floating a at issuance of date the from as interest accrue and amount principal the of 100% of price issue an at issued were notes corporate term four-year The 75,700. for Notes 8 Corporate Class of offering public the out carried and issued Company the 2009, 7, May On in maturity maximum with 150,000 to up of value 2013. nominal a for Notes Corporate rate floating of amended,as 23,576, No. Law of terms the under and Program the of framework the within offering, and public the issuance approved of Directors Board the Company’s 13, 2009, on April Furthermore, or redemptionoftheCompany’soutstandingDiscountCorporateNotesduein2014. payment for the purchase, used were Notes of the sale the Corporate from of Most the net proceeds and/or Argentina of abroad. market self-regulated and/or exchange stock other any on negotiation and/or trading their for authorization as well as Market PORTAL the on Notes Corporate the of listing the for authorization request may Company the Furthermore, Exchange. Stock Luxembourg the of market alternative the is which Market, MTF Euro the and Exchange, Stock Luxembourg the Argentina), of Corporate the market of OTC (the S.A. trading Electrónico Abierto the Mercado the Exchange, for Stock Aires Buenos the on authorization Notes requested has Company The 2017. 9, October on date maturity at payment sum lump a by amortized be will principal The 2008. 9, April on maturing payment interest first the year,with each of 9 October and 9 April on payable annum, per 10.5% of issue an at issued were at a rate as of the date fixed from issuance Notes interest and accrue amount, of of 100% price the principal Corporate term 10-year 7 The Class of million. 220 offering US$ public for the Notes out Corporate carried and issued Company the 2007, 9, October On 2017. in maturity maximum with million 250 US$ to up of value nominal a for Notes Corporate rate fixed of amended, as 23,576 No. Law of terms the under and Program the of public framework the and within issuance offering, the approved meeting Directors’ of Board Company’s the 2007, 28, June On Regulations. CNV’s the of VI Chapter of 76 section by required as CNV, the by approved duly been had that notes corporate of issuance the for Agreement Trust the of updating the approved Directors of Board Company’s the 2007, 14, June on held meeting the In 2006. 23, March on Directors of Board CNV’s the by issued 15,359 No. Resolution through CNV the by approved also was extension Said currency). other any in equivalent its (or million 600 US$ to up of time, any at outstanding Amount, Maximum a for Program Issuance Notes TermCorporate Medium- Global the of extension the approved Meeting General Annual the 2006, 23, February On JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 114 » » accepted bytheCompany, receivedthefollowing: of holders The Class 7 Corporate price. Notes who validly tendered repurchase their notes to the cash Purchase Offer and whose offers a public were at a Notes Corporate out 7 Class carried of repurchase Company the for the offering Offer, Exchange the and Offer Subscription the with Together » » subscribed: be may Notes Corporate the 2010, 28, September dated Supplement Pricing the of terms the with accordance In million. 300 US$ to up of value nominal a for 2022 in due Notes the and issuance by placement means of a public or offering an offer exchange of fixed rate Corporate Furthermore, the Company’s Board of Directors has approved, within the framework of the Program, capital the finance to Notes expenditures plan. Corporate the of sale the from proceeds net the used Company The andadmissionfortradingontheMercadoAbiertoElectrónicoS.A. Stock Exchange(BCBA) Aires Buenos the on Notes Corporate the of listing the for authorization requested has Company The due onMay7,2010. becamewhich of first the installments, quarterly and consecutive 13 in amortized is principal The

after suchdatethroughNovember1,2010. tendered Notes 7 Corporate Class of value nominal 1,000 US$ each for exchange in 1,045 US$ 2010 15, October before tendered Notes 7 Corporate Class of value nominal 1,000 US$ each for exchange in 1,060 US$ and 80.90 US$ plus 1,000, US$ of additional amountsincashinsteadoffractionsCorporateNotes. value nominal a for 2022 in due Notes Corporate 2010, 1, November through in the deadline after Offer Early the case of tendered Notes 7 Class Corporate instead offractionsCorporateNotes,and Notes cash in amounts Corporate additional and 2010, 100.90 US$ plus 20, 1,000, US$ of October value nominal a for before 2022 in due tendered Notes Corporate 7 Class of case the in Corporate Notes,pursuanttothefollowingexchangeratios: for exchange in 2017 due Notes Corporate rate fixed 7 Class of delivery the through kind, in (ii) basis oftheresultplacementandawardingprocedureCorporateNotes,or theon Issuance of Date the to prior Company the by determined price issue the at cash, in (i) JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 115 Notes: following the of comprised was 2009 and 2010 31, December of as structure debt Company’s The the of 83.3% approximately represented time. such at which outstanding Notes Corporate respectively, thousand, 36 and thousand 1,250 exchange and offer,repurchase the the Company cancelled Class of 7 Corporate Notes for result nominal values of a US$ 122,644 as thousand, 2010, 9, December and 4, November 25, October On its in held Notes Corporate 7 Class cancelled portfolio foranominalvalueofUS$65,310,000. Company the 2010, 18, October on Additionally, or increaseworkingcapital. and/ plan expenditures capital the finance and/or outstanding, currently debt the part in or whole in to in offer refinance Notes this the of from sale the Corporate use will the net proceeds The Company alternative the is which Market, MTF Exchange. Euro Stock the on Luxembourg the of trading market for admission and Exchange Stock market OTC (the Stock S.A. Aires Electrónico Buenos Company Abierto Luxembourgthe the on Notes Corporate the of listing the for authorization as well as Argentina), of The Mercado on the on 2022. Notes trading in for Corporate date the admission of and maturity listing Exchange The at the 2011. for payment 25, sum April authorization on lump a requested maturing has in payment amortized interest be first will the with principal year, October each on of 25 semiannually payable April 9.75%, and of 25 rate fixed a at accrue notes issuance of corporate an date at term the from twelve-year as issued The been interest amount. have principal the 230,301,000 of US$ 100% of of amount price an issue for Notes Corporate 9 Class new The 7 CorporateNotes. on of Class and the interest unpaid payment accrued including 1, paid US$ having 2010, 35,750,000, November through tendered been had that 33,593,000 US$ of value nominal a for Notes Corporate 7 Class purchased and accepted and Notes; Corporate 7 Class on interest unpaid and accrued of payments including cash, in 9,532,000 US$ paid and 90,301,000 US$ of value nominal a for 9.75% of rate fixed a at 2022, due Notes Corporate for 2010, 1, November through tendered been had that the offer, exchange the 90,301,000 US$ of value of a nominal for Notes 7 Corporate result Class exchanged and a accepted Company as Furthermore, million. 140 US$ of value nominal a for Notes On 25, October 2010 and as a result of Offer in the cash, Subscription the issued Corporate Company JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 116 Fixed Rate Discount Note Par Note Floating Rate Par Note Fixed Rate Total Total Par Note Type during fiscalyears2007,2008and2009wereasfollow: made payments and issued originally notes corporate dollar-denominated US for structure debt The Type Debt issuedinArgentinepesos: (1) Netofissuanceexpensesfor44,202. Fixed Rate Par Note (1) Fixed RatePar Note Floating RatePar Note Fixed RatePar Note Type Debt issuedinUnitedStatesdollars: Total Floating RatePar Note

Class B A B A A 7

JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Class

A A 9 7 inthousands

Initial debt structure 152,322 596,430 220,000 ofUS$ 50,289 73,485 87,678 12,656 December 31,2009 Debt structureasof in thousands

176,633 148,690 of US$ 15,287 12,656 Class 0 thousands of US$

Debt purchase 8 (Note7) December31,20092010 2008 fiscal (29,347) (17,500) (50,033) (3,186) year in Debtstructure(inthousandofpesos)as 0 0 0 (4,375) (27,853)15,287

Debt purchaseasof December 31,2010 in thousands

(139,217) (123,930) thousands of US$ (15,287) Debt purchase of US$ 2009 fiscal 0 0 Véase nuestroinformedefecha9/3/2011

year in (53,810) (86,038) PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65

C.P.C.E.C.A.B.A. Tº1-Fº17 75,700 75,700 Contador PúblicoU.C.A. 0 0 0

December 31,2010 Debt structureasof as ofDec31,2009 Socio Debt structure in thousands in thousands 256,600 148,690 219,184 of US$ of US$ 24,760 12,656 176,633 12,656 0

0 0 0

thousands of pesos (Note7)in Dec31,2009 Balanceasof Balance asof Dec 31,2010 in thousands 671,206 1,020,240 of pesos 565,022 (Note 7) 871,476 58,236 58,236 58,091 98,446 50,318 48,093 0 0 0 0 financial statements 117 Certain negativecovenantsstipulatedinthetrustagreement willbesuspendedoradjustedif: Company’s actionswithregardto,amongothers,thefollowing: the limit that covenants negative of series a include Notes Corporate the of conditions and terms The 1) NegativeCovenants The maincovenantsarethefollowing: (1) Netofissuanceexpensesfor44,202. the tablebelow: in detailed is cancellations or redemptions prepayments, adjustments, possible considering without debt, total of year by down broken debt, notes corporate the of schedule amortization principal The (b) (a) 2) SuspensionofCovenants » » » » » The Company’sLevelofIndebtednessisequaltoorlower than2.5. The Company’slong-termdebtratingisraisedtoInvestment Grade,or shares orpaymentsonsubordinateddebt). common Edenor’s of purchases dividends, others, among (including, payments certain making carrying outoftransactionswithshareholdersorrelatedparties; sale oftheCompany’sassetsrelatedtoitsmainbusiness; incurrence ofindebtedness,incertainspecifiedcases; encumbrance orauthorizationtoencumberitspropertyassets; JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora 2022 (1) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Year Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. 1,078,476 CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 871,484 103,468 C.P.C.E.C.A.B.A. Tº1-Fº17 Amount 25,152 14,182 25,803 25,802 Contador PúblicoU.C.A. 5,034 2,517 2,517 2,517 0 0 Socio financial statements 118 restrictive legend,asdefinedunderthetrustagreemententeredintoonOctober9,2007. with no interest coupons attached for a nominal value of US$ 220,000 thousand, which will Note” not Corporate bear “Global the registered fully one for agreement, trust the of framework the within issued them of both thousand), 59,750 US$ of value nominal a for (issued Note Corporate Global Restricted the and thousand) 160,250 US$ of value nominal a for (issued Note Corporate Global S Regulation the exchange to order in agreement complementary a into entered has Company Consequently,the freely transferabletoandfromanypersonwhoisnotarelatedcompanyof become had 2017 in due Notes Corporate 7 Class the amended, as 1933, of Act Securities US the of 144 rule under that Commission Securities National the informed Company the 2009, 13, April On related partiesoftheCompany. not are who holders Notes Corporate those by offer exchange authorized the after transferable freely be would and transfer their concerning restrictions no have would notes corporate exchanged The the sameoutstandingdebtandsubjecttosimilartermsconditions. new notes of the same class registered with the SEC in for accordance Notes with Corporate the the of Securities offer exchange Act, authorized representing an with connection in authorization requesting In accordance with the Registration Rights Agreement, the Company filed with the SEC an application 3) RegistrationRights performed duringthesuspensionofsuchcovenants. have may Company the which acts those affect not will covenants the of However,reinstatement the than 2.5,asapplicable,thesuspendednegativecovenantswillbeonceagainineffect. If the Company subsequently losses its Investment Grade rating or its Level of Indebtedness is higher JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio Edenor. financial statements 119 PARTIES -SECTION.33LAW 19550 15 | BALANCES ANDTRANSACTIONSWITHTHECONTROLLINGCOMPANY ANDRELATED parties areasfollow: As of December 31, 2010 and 2009, the outstanding balances with the controlling company and related and relatedparties. company controlling the with transactions out carries Company the business, of course normal the In

Current investments(ExhibitD) Transener S.A. Total Trade accountspayable(Note6) ended years the for parties December 31,2010and2009areasfollow: related and company controlling the with out carried Transactions Total PréstamosyServiciosS.A. SACMES.A. Other income ElectricidadArgentinaS.A. PréstamosyServiciosS.A. ComunicacionesyconsumosS.A. Other receivables(Note5) Total SACME S.A. SACMES.A. PréstamosyServiciosS.A. ElectricidadArgentinaS.A. Total Total Errecondo,Salaverri,Dellatorre,Gonzalez&Burgio Expenses fromservices ElectricidadArgentinaS.A. Financial expensesandinterest Total Errecondo,Salaverri,Dellatorre,Gonzalez&Burgio PréstamosyServiciosS.A. SACMES.A. JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍNBARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio (1,400) (1,392) 17,527 17,527 (9,771) (6,217) (9,771) (5,823) 4,169 4,168 2010 2010 (310) 210 205 (84) (8) 4 1 1 0 0

(7,063) (1,000) (5,553) (6,918) (1,000) (5,068) 1,604 1,603 2009 2009 (145) (415) (70) 19 10 0 0 0 9 0 0 1

financial statements 120 will be evaluated by the Company and access will be granted based on the available capacity of the of capacity available the on based granted be will access and Company the by evaluated be will with the agreement, CYCSA shall periodically request access to the Company’s network. Such request accordance In period. corresponding the of expiration the to prior days 120 than less no parties the of any by given is contrary the to notice unless years, five of periods subsequent for date expiration twenty to years by virtue of an addendum to the agreement. extended The agreement will be automatically renewed upon subsequently was services, telecommunications render to license the granted were CYCSA which on date the from commence to years ten originally was which agreement, the of term The services. telecommunications such of rendering the for network Company’s the of adapting the to related expenses and expenses maintenance all for responsible be will CYCSA agreement, the of terms the with accordance In network. Company’s the as such companies distribution electricity of infrastructure existing the through services transmission image and data voice, of integration the accordance with the provisions entered of Decree No. 764/2000 (CYCSA) of the Federal provide S.A. Government, to which contemplates right Consumos exclusive telecommunications services to the the Company customers CYCSA through y the use granted of the Company’s Company network in Comunicaciones the which to and pursuant agreement Company an into the 2007, 16, March On Agreement withComunicacionesyConsumosS.A. been not modified. have terms contractual the of rest The 2010. 19, September from 5 as for commence agreement to years the of term the extended which services, advisory technical of provision the for a On approved 31, to Board of August new 2010, the addendum the Directors Company’s agreement 2008. 1, January from as VAT,retroactively payable plus 2,500,000 US$ to increased been has S.A. Argentina Electricidad by provided services the of The addendum stipulates aforementioned that the amount to be paid by the the Company in consideration to addendum the approved Directors of Board the 2008, agreement fortheprovisionoftechnicaladvisoryservicesdatedMarch14,2008. 22, April on held meeting the At the to indemnification party.any other paying or obligations further any with comply to having without notice, days’ 60 giving by time any at agreement the terminate may parties VAT. the plus of Any 2,000,000 services, these of consideration In years. five of term a for and 2005 19, September from as matters financial on services advisory will technical EASA provide which to pursuant agreement an into entered EASA and Company the 2006, 4, April On (controllingcompany) Agreement withElectricidadArgentinaS.A. JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora will pay EASA an annual amount of US$ of amount annual an EASA pay will Edenor Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 121 Authority fortheDistributionofElectricity, whichapprovedthisthroughResolutionNo.381/2007. Regulatory National the of authorization the to subject was term its that established agreement The services.obligationitsrenderingany theindemnifyofarisingCompanyfrom for theagreedto PYSSA Furthermore, services. its from obtained profits the of 10% as well as taxes, before customers, from collectedchargesmonthly the of 2% Company the pay will PYSSAagreement, the of terms the with accordanceIn corresponding period.the ofexpiration the to prior days 120 than less noagreement periodsfiveofyears, unlesstheparties anyof givesnotice theother tohisintentionof terminateto the automaticallybesubsequentwill years,whichrenewedforfiveagreement theis ofinvoices.term The theCompany agreed includeto PYSSAmarketing material themailinsent customers, to including the its offices so that PYSSA be able to offer financial and loan services to Company customers. Furthermore, and mailing services. As part of the agreement, the Company agreed to theprovide exclusivephysical right spaceto conductin someits ofdirect and marketing services through the use ofcompany the engagedCompany’s in facilitiesthe rendering of financial services, pursuant to which the Company granted On PYSSAMarch 16, 2007, the Company entered into an agreement with Préstamos y Servicios S.A. (PYSSA), a Agreement withPréstamosyServiciosS.A. The effect. into went it which on date aforementioned addendumwasapprovedbytheCompany’sBoardofDirectorsonDecember18,2008. the from commence to years twenty to ten from agreement the agreementmainAgreement),(Termthetheof extending term modifiesofthus whichof the section XI agreement, the to addendum second the into entered CYCSA and Company the 2008, November During on November5,2008. held meeting the at Directors of Board Company’s the by approved was addendum aforementioned the that out pointed be must It installed. be to Edenor fiber optical the of grants capacity the of part use addendum to right the said Moreover, service. public the of supply normal the affect not fiber does optical to referred the that Low-voltage condition on and CYCSA, by owned Medium fiber optical High, of laying the accompanying for ducts ducts triple and/or ducts the and lines overhead Low-voltage and Medium High, of towers and poles the use to the right the addendum, CYCSA this granted to Company Pursuant 2008. of 27, Use October on the signed for was Permission Network of Distribution Granting Electricity the for Agreement the to addendum first the Furthermore, Secretariat throughResolutionNo.179/2008. Communications National the by granted was which license, telecommunications the obtain to was of theservicesthroughCompany’snetwork.Theagreement was signedonconditionthat CYCSA services. Furthermore, CYCSA will indemnify the Company for any obligation arising from the rendering charges collected from customers, before taxes, as well as 10% of the profits obtained from provision of annual the of 2% Company the grant will CYCSA network, the of use the of consideration In network. JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 122 16 | CAPITAL STOCK shares. beneficial owner and owner of record of not less than 51% of the be to required is EASA Notes, Corporate 2 Class of issuance the with connection Additionally,in the performanceofobligationsassumedunderConcession Agreement. for security as concession the of term entire “A”the Class during the pledged addition, are In shares the (i) in by-laws. included shares common of Company’s transfer the (iii) and the Agreement Concession the Law,(ii) for Organizations Business Argentine rules the with comply not do criterion, its Register atShare which, entries the such reject to keeps by-laws) Company’s the which in stated (as entitled Office), is shares, the of Register Public (the S.A. Valores de Caja Furthermore, of therequestforsuchapproval,otherwisetransferwillbedeemedapproved. prior approval of the ENRE. The ENRE must communicate its decision within the 90 with days upon only submission shares their transfer “A”may Class shareholders that provide by-laws Company’s The a h atvte rltd o h aoeetoe areet ae en eprrl ssedd n the in suspended temporarily been Company’s offices. have agreement aforementioned the to related activities The b As ofDecember31,2010and2009,theCompanyowns9,412,500ClassBtreasuryshares. the issuanceofadditionalsharesoranycommitmentasimilarnature. and prices rights, dates, or unusual voting rights. Moreover, participation there are no significant terms privileged of contracts allowing for either liquidation, of event the in preferences and/or dividends kind, any of shares preferred no are There share. per vote one i.e. rights, voting same the maintains share every and Each share. per vote one to right the and each peso one of value par a with shares C Class book-entry common, 1,952,604 and share; per vote one to right the and each peso one of and the right to one vote per share; 442,210,385 common, book-entry Class B shares with a par value each peso one of value par a with shares A Class book-entry common, 462,292,111 by shares, represented 906,455,100 to amounts stock capital Company’s the 2009, and 2010 31, December of As | General | RestrictiononthetransferofCompany’scommonshares JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Edenor’s Socio issued, voting and outstanding financial statements 123 the amountsduetoformerESOPparticipatingemployeesfor thetransferoftheirClassCshares. date of payment of the deferred purchase price, the Guarantee and Repurchase Fund had not fully paid calculatedbeaccordanceformula toinestablished awith general the transfer in agreement.the of As )Recompra y Garantía Fundde Repurchase atand Guarantee the (Fondo to shares their atransfer price ArgentinedeferredtherequiredGovernmentpurchasetheweremade,to to paymentprice wasof full accordanceIn regulationsthewith applicableESOP,the to participating employeesretired whobefore trust voting the and released was pledge the agreement wasterminated. accordingly, Government, purchase deferred Argentine the the paid to fully Argentine price employees the of participating favor ESOP in 2007, pledge 27, the April of On release until Government. and exercised price jointly purchase be deferred to the were of meetings) payment full shareholders’ extraordinary right and the (including ordinary at employees vote to participating of rights political all agreement, trust voting the with accordance in Furthermore, Government. Argentine the and employees participating ESOP the of benefit the the for as trustee, acting agreement, Argentina, trust de la Nación by Banco in trust held original were C shares the Class of terms the with accordance in Additionally, shares. C Class all of price purchase deferred the on of Government Argentine the released to payment was full upon 2007 pledge 27, April This government. the Argentine price, the of purchase favor in deferred pledged the were of shares C payment Class the for security As time. over shares C Class the of to payment defer were allowed employees participating agreement, to transfer the general Pursuant were signed. to implement the ESOP, a general transfer agreement, a voting trust agreement and a trust agreement took into consideration a number of factors including employee salary, position and seniority. In order were entitled to receive a eligible Company) specified number of Class the C shares, to certain be to calculated on the basis transferred of a program, formula that been had this who Through employees SEGBA decrees. former (including regulatory employees its and 23,696 No. the with Law compliance of in (ESOP) provisions Program Ownership Stock Employee an of creation the for capital stock, outstanding Company’s the of 10% representing shares, C Class Company’s the assigned Government Argentine the predecessor), Company’s (the SEGBA of privatization the of time the At c sell theirshares. nor interest ownership their modify not may shareholders majority the TransitionPeriod, Contractual ratified and Concession the the of end the through agreement the of of signing the from that stipulates 1957/06 No. Decree Grantor through the with signed Agreement Adjustment the of ten Section | EmployeeStockOwnershipProgram(ESOP) JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 124 d are outstanding (Notes1and16.a). stock capital Company’s the of 0.22% representing shares, C Class 1,952,604 2009, and 2010 31, December of As members. committee supervisory and directors electing when shares B Class of holders the with class single a as jointly vote will shares C Class remaining the of holders the and attributable to Class C shares are at present jointly exercised with those attributable to Class B shares previously rights political the by-laws, the with conformity In sold. and shares B Class into converted were shares such Program, the from separated been had that shares C Class the of offering public the before therefore Company, the of personnel by held be only may shares C Class the Program, Ownership Stock Employee the govern that decrees and laws agreements, the with accordance In above-mentioned claims. that believes management Company’s the as Company the against No accrual has been recorded in the financial statements in connection with the legal actions brought Ownership ProgramClassCsharesbekeptduringthecourseoflegalactions. Stock Employee the of offering the of proceeds the of portion a that so Fund Contingency a create to Argentina Nación la de Banco instructed Federalhas the Government pending, still is proceedings legal these of resolution the that fact the to Due Fund. such in deposited amounts the and shares C Class on Fund Repurchase and Guarantee the against injunctions prohibitory or orders attachment obtained have plaintiffs the claims, these of several In Fund.Repurchase and Guarantee the by them retirement in favoroftheGuaranteeandRepurchaseFund orincorrectcalculationofamountsto paid upon shares their of transfer the of non-payment to due either Fund Repurchase and Guarantee the by them to owed amounts unpaid the for payment claiming are Company are the who of employees plaintiffs former The compensation. seeking therefore are who plaintiffs the decision by This disputed creation. being its is of time the at Program Ownership Stock authorities Employee the corresponding in the participate by to eligible deemed not were SEGBA of employees former are plaintiffs who The Program. Ownership Stock Employee the of administration the to relation in cases in Guarantee and Repurchase Fund, the Argentine Government and, in few cases, against the Company, A number of former employees of both SEGBA and the Company have brought legal actions against the On April 7, 2010 the General Annual Meeting resolved that the income for the 2009 fiscal year be year fiscal 2009 the absorbed bytheUnappropriatedretainedearningsaccount: for income the that resolved Meeting Annual General the 2010 7, April On | Absorptionofunappropriatedretainedearnings: » » » Incomeforthe2009fiscalyear Unappropriatedretainedearningsforthe2009fiscalyear LegalReserve(5%oftheincomeforyear)(Note24) JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio is not responsible for the for responsible not is Edenor

(4,532) 90,643 86,111 financial statements 125 17 | REGULATORY FRAMEWORK a year, ResolutionsNos.324/2008and628/2008(Note17.b). fiscal 2008 the during applied schedules rate electricity the by established item adjustments b the and (caption vii) regime tariff temporary the in contemplated adjustment the The applied dates. has those Company over elapsed periods control six-month the to corresponding ENRE the by sued is- yet not resolutions for penalties accrued has Company the 2009, and 2010 31, December of As with thefollowingmajorissues: be credited to users affected by service deficiencies in future bills. Penalties are imposed in connection individual customers, rather than an averagecustomer value mustbemeasured.Asaresult, fines will to provided quality specific the instead, allowed, not is quality different of circuits and areas between both the product and the service provided by the Company. Within this new framework, compensation of quality the control to applied methods the in change a been has there 1996, 1, September from As make theCompanyliabletopenaltiesthatmayincludeforfeitureofconcession. will business Company’s the governing regulations and rules the and Agreement such of provisions the with comply to Failure Agreement. Concession the in established as product, technical the and The ENRE is empowered to: a) approve and control tariffs, and b) control the quality of both the service latory frameworkprovidedundertheaforementionedLawandregulationsissuedbyENRE. thority for the Distribution of Electricity (ENRE). In this connection, the Company is subject to the regu- Au- Regulatory National the created which 24,065, No. Law by regulated is business Company’s The | General 5. 4. 3. 2. 1. Failure tocomplywithpublicsafety regulations. the qualityofbothtechnicalproductandservice; evaluate to as so requirements processing and gathering information with comply to Failure and billingmistakes; bills of estimated number the times, connection service by customers, made claims complaints and of number the by measured as service, commercial of levels quality from Deviation frequency perKilovatios(KVA)interruption andtotalinterruptiontimeperKVA; average the by measured as service, technical of levels quality from Deviation work variations; net and levels voltage by measured as product, technical of levels quality from Deviation JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio - financial statements 126 were transferred to the tariff as from July 1, 2008, in accordance with the provisions of Resolution Resolution of provisions No. 324/2008(Note17.b). the with accordance in 2008, 1, July from as tariff the 2007 to October transferred through were 2007 May period the to corresponding those as well as 2007 2006 April May through period the for (MMC) Mechanism Monitoring Cost the to corresponding amounts The National EnergySecretariat. the of the 1037/2007 No. Resolution approves aforementioned the in which established mechanism compensation 710/2007 MMC No. Resolution issued ENRE the 2007 25, October on Additionally, 2006 throughApril2007,applicableasfromMay1,amountsto9.63%. May period the for adjustment MMC the that establishes also resolution The authority. regulatory gram for the Rational Use of Electric Power (PUREE), until their transfer to the tariff is granted by the Pro- the of implementation the from resulting customers, to made between discounts and billed surcharges difference the from resulting April funds the from through deducted 2006 be c) May and b items period 17.b the (Note 2007 for (MMC) Mechanism Monitoring Cost the to corresponding amounts the as Quarterly well as the 25,957, No. Law for of 1 Section by Company implemented (CAT) the Coefficient by Adjustment paid amounts the that establishes resolution Said Secretariat. On October 4, 2007 the retariat andestablishesthecompensationmechanismtobeused. 597/2006 which regulates the aforementioned Resolution No. 942/2006 of the National Energy Sec- No. Resolution issued ENRE the 2006 10, August On 4). (Note respectively 2009, and 2010 31, ber Decem- of as 2,840 and 3,437 for 25,957) No. Law of 1 (section Electricity” of Fund National the of Coefficient Trade Adjustment the “Quarterly for in Electricity, of maintains Fund -National Company Unbilled as the account that receivables receivable amounts the against applied be may funds excess such 2006, 1, July from As consumption. reduce to customers encouraging at aimed alties pen- and incentives tariff both of application the for provides which Power(PUREE), Electric of Use Rational the for Program the of implementation the from deriving customers, to made discounts and billed surcharges between difference the from resulting funds excess any of allocation the modifies which 942/2006 No. Resolution issued Secretariat Energy National the 2006 12, July on Moreover, those subjecttothecriteriaofTransition Period. and renegotiation the in consequently,included and, penalties Agreement the justment concerning Ad- the of date effective the concerning entity the with discussion open an maintaining to prejudice without penalties, collecting at aimed lawsuits suspend to obligation the with complied mostly has ENRE the that considered has management Company’s the 2010, 31, December of as addition, In and 377,456,respectively, andhavebeenincludedinothernon-currentliabilities(Note10). 455,421 to amount discounts and penalties ENRE for liabilities 2009, and 2010 31, December of As JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora published Resolution No. 1037/2007 of the National Energy Energy National the of 1037/2007 No. Resolution published Official Gazette Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 127 b to cover theMMC(CostMonitoringMechanism)increasesnottransferredtotariff. order in funds such keep to allowed was Company the that fact the to due is in- liabilities This in crease 10). (Note liabilities non-current other and in 529,097 disclosed to been amount have and (PUREE), respectively, Power 233,319 Electric of Use Rational the for Program the of plication ap- the from deriving funds excess the by generated liabilities 2009 and 2010 31, December of As ments bytheNationalRegulatoryAuthorityforDistributionofElectricityisstillpending. adjust aforementioned the of approval the statements, financial these of issuance of date the of As May2010-October November2009-April2010 May2009-October November2008-April2009 May2008-October representing 51% of 51% representing “A”Class shares the period, management each of end the At years. 10 of periods subsequent and years 15 of period first a periods: management into divided is concession the of term The years. 10 of period maximum additional an for extended be may and years 95 is concession the of term The further disbursements will be necessary. On the contrary, if EASA is not the highest bidder, then the bidder,then highest the not is EASA contrary,if the necessary.On be will disbursements further “A”Class the no own and to shares, continue will it bid, highest the makes EASA If bidding. public a November2007-April2008 AssessmentPeriod for theDistributionofElectricityMMCadjustmentrequests,inaccordancewithfollowingdetail: Additionally, as of December 31, 2010, the Company has submitted to the National Regulatory Authority applicable asfromNovember1,2007,amountsto7.56%. 2007, October through 2007 May period the for the adjustment MMC of The 1037/2007 Secretariat. No. Energy National Resolution of provisions the with accordance in (PUREE), Power Electric of Use Rational the for Program the of application the from deriving funds excess the from be deducted funds such that allow to and pending, was recognition whose 2007 October through 2007 May to period the corresponding (MMC) Mechanism Monitoring of Cost the application the from deriving tory Authority for the Distribution of Electricity was instructed to consider the earmarking of the funds By Note No. 1383 dated November 26, 2008 of the National Energy Secretariat, the National Regula- | Concession JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Edenor’s capital stock, currently held by EASA, must be offered for sale through sale for offered be must EASA, by held currently stock, capital Application Date November 2010 November 2009 November 2008 May 2010 May 2009 May 2008 Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio MMC Adjustment 7.103% 7.240% 5.068% 5.041% 5.684% 5.791% - financial statements 128 in Law No. 25,561 and supplementary regulations. Due to the appointment of a new Economy and Economy new a of appointment the to Due regulations. supplementary and 25,561 No. Law in Agreement within the framework of the process of renegotiation of the Concession Agreement set forth equation of the concession agreement. On September 21, 2005, the Company signed the Adjustment economic and financial the restore would that understanding an reach to willingness its ratified pany law.Com- the the by Nevertheless, contemplated as agreement the of terms the redefine to need the address properly not did it that grounds the on proposal the principle in rejecting purpose, such for agency’s requirements; provided an answer to the proposal and attended the public hearing convened hensive renegotiation agreement of the Concession Agreement. The compre- Company satisfied a the regulatory of basis the be would that Agreement Adjustment an of signing the proposed (UNIREN) As a part of the renegotiation process, the Unit of Renegotiation and Analysis of Public Utility Contracts contracts utility were extendedthroughDecember31,2005,2006,2007,2008,2009and2011,respectively. public renegotiate to period the and emergency economic of declaration the both 26,563 and 26,456 26,339, 26,204, 26,077, 25,972, Nos. Laws of provisions the with accordance In tive Power torenegotiatepublic utilitycontractstakingcertainrequirementsintoaccount. pesos at a rate of 1 peso per US dollar. Furthermore, Law No. 25,561 authorized the Federal Execu- Argentine into converted were rates and prices resulting The date. such from as void and null clared contracts entered into by the the Federalin Government, stipulated including those mechanisms related to indexation public utilities, other were any de- on as well based as countries, clauses other from indexation indexes price currencies, foreign other any or dollars adjustment US whereby in 25,561 denominated No. clauses Law passed Power Executive Federal the 2002, 6, January On the CompanyunderConcessionAgreementduringtermofConcession. MEM agents whenever required, under any the to terms of the facilities Concession. No its specific to fee must access be paid free by allow shall Company the addition, In required. be may that power all the electric to supply obliged being thus (MEM), Market Power Wholesale the Electric from power supply their obtain to authorized not are who users and all to area distribution concession power the within electric services render sales to right exclusive the has Company the purpose, such For quired toguaranteesourcesofsupply. re- be shall Company the purpose which for levels, due quality stipulated in with accordance demand in and meet time to as so electricity of availability and supply the guarantee to measures sary In accordance with the provisions of the Concession Agreement, the Company shall take the neces- after deductinganyamountsreceivabletowhichtheGrantorofconcessionmaybeentitled. “A”EASA Class to of delivered sale be the will from shares proceeds The bidding. public the of tions bidder who makes the highest bid must pay EASA the amount of the bid in accordance with the condi- JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 129 the President of Argentina on December 28, 2006 and published in the in published and 2006 28, December on Argentina of President the by signed 1957/06, No. Decree through Power Executive Federal the by ratified was agreement Said ix) viii) viii) vii) vi) v) iv) iii) ii) i) The AdjustmentAgreementestablishesthefollowing: the sametermsasthosestipulatedinagreementsignedonSeptember21,2005. Production Minister, on February 13, 2006 a new copy of the Adjustment Agreement was signed under

Agreement goesintoeffect,subjecttocompliancewithcertain requirements. Adjustment the which on date the and 2002 6, January between period the in arisen has origin or cause whose or notified, been have that those of as well as 2002 6, January before ENRE the by imposed penalties the of two-thirds approximately represent which installments, semiannual fourteen in Tariff(RTI) Company Structure the of Revision the of approval the after days 180 is above, vii item in described are which ENRE, the by imposed penalties the of term payment the the dateonwhichAdjustmentAgreementgoesintoeffect; and 6, 2002 January between period in the arisen has or origin cause or their notified, been have 6, 2002andthedateonwhichAdjustmentAgreementgoesintoeffect; of as well as 2002 6, January those that to have been notified, prior or whose cause or origin agency has arisen in the period regulatory between January such by notified dis- were as which customers counts, to payable are that ENRE the by imposed penalties the of adjustment the million 25.5 of investment additional an plus should itberequired(itemfbelow); 2006, during EDENOR by fulfilled be to million 178.8 of amount an for network electric the in plan investment minimum a of implementation the the for Distribution ofElectricitywillbeinchargesuchreview; Authority Regulatory National the 24,065, No. Law of provisions the with years. 5 accordance following In the for effect in remain and basis gradual a on effect into go will that regime in a tariff new result will which Tariff(RTI) Company of the Structure of a out Revision carrying the in shareholders its and Company the by national orforeigncourtsduetotheeffectscausedbyEconomicEmergencyLaw; filed actions legal and claims the of suspension the rendered; be to service the of quality of levels the and needy the for tariff” “social a of establishment the to theapprovalofregulatoryauthority; be subject payment dividend regime, the tariff that term during of said temporary the requirement expenditures; capital specified certain to allocated (VAD), distribution added value the in increase average 5% additional an and 15%, than more of tariff average the in increase an in result not may which margin, distribution the in increase average a 23% cluding in- 2005, 1, November Temporaryfrom a as of effective Tariffimplementation the (RTT) Regime the waiver of the penalties imposed by the ENRE that are payable to the Argentine State, which which State, Argentine the to payable are that ENRE the by imposed penalties the of waiver the JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio on January 8, January on Gazette Official financial statements 130 the itemsabove. tariffequivalentincreasestheDecemberwhichis2008,mentionedto 31,of 17,162 asinamount of an TheCompany has recorded the adjustment ofthe penalties described inthe Adjustment Agreement for as fromFebruary 1,2007.Thisdocumentprovidesforthefollowing: which approves the electricity rate schedule resulting from the RTI applicable to consumption recorded the 2007 5, February Additionally,on jurisdiction, federal the between theFederal ExecutivePower andtheCompany. within sale and distribution power electric of Agreement Concession the of Renegotiation Comprehensive the of basis fundamental the be will regulations, the by required dures proce- the other with compliance that, upon conditions and the terms agreement stipulates 2007. This f) e) d) c) b) reconnection service and costs connection service costs, distribution in increase average a) 23% A

ments of the Adjustment Agreement. Agreement. Adjustment the of ments require- the with compliance in values, monetary and physical in plan, investment annual justed ad- an of resolution, this of issuance the from days calendar 45 of period a within Presentation, (Note 4); as Unbilled from of sales electricity in Receivables Tradeunder included and Others, Receivables Transportation of the Network, for the Expansion fee payable as such the Specific (MEM), Market Power Electric Wholesale the to related concepts other of and out carried effectively those and transactions physical foreseen between deviations to corresponding differences the of Invoicing 2006 1, May from and above) b) and through January31,2007(itemc)above); a) (items 2007 31, January through 2005 1, from recorded November consumption non-residential for schedule rate electricity the new the from of arising application differences the of installments monthly consecutive and equal 55 in Invoicing consumption recordedfromMay1,2006throughJanuary31,2007; April 30, 2006, shows a percentage of 8.032%. This percentage will be applied to non-residential the of ending and 2005 1, I November beginning period six-month the Appendix for which Agreement, in Adjustment contemplated (MMC) Mechanism Monitoring Cost the of Implementation amounts to115,317.ThisamountisnetofthetransferredCAMMESAfor45,824; 2010 31, December of as which fund, required the up set has Company the regard, this In ment. Agree- Adjustment the of II Appendix in detailed plan infrastructure and works the of the execution to applied be to costs, distribution in increase average 5% additional an of Implementation of electricpowerdistribution,exceptfortheresidentialtariffs; costs ineffectwhichtheCompanycollectsasholderofconcessionpublicservice JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Official Gazette Official published Resolution No. 51/2007 of the ENRE the of 51/2007 No. Resolution published Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 131 place onAugust31,2007. the Revision of the Company Tariff Structure (RTI) goes into effect. Its original maturity would have taken whichondate thecommencefromfirstmanagement years whichtotheas extended to 5period is for Furthermore,the 2007 7, July on aforementioned the in time period. effect into go not does schedule rate electricity the new the if allowing Agreement ment effect, into goes RTI the from resulting Company and its shareholders to schedule resume the claims suspended as rate a consequence of the Adjust electricity the the which until on extended be date Agreement Adjustment the of 22 an section in forth present set must commitments and tions Company the that establishes investment 434/2007 plan before May 1, 2007 (which No. has already been complied with), and that the obliga- Resolution aforementioned The Agreement. the Adjustment in upon agreed percentages the maintaining later, months six effect take will second 2008 the 1, and February from as effect take will adjustment first the that establish which Agreement, ment the increase to the tariff will be made in accordance with the provisions of section 13.2 of the Adjust of transfer the Agreement, Adjustment the of 4 section in established tariff the than higher is RTI the from resulting tariff the that event the in that, stipulates also It 2008. 1, February on effect into go will RTI the from resulting schedule rate electricity new the that establishes Resolution the Furthermore, Company Tariff Structure(RTI)establishedintheaforementionedAdjustmentAgreementgoesintoeffect. theAdjustment Agreement will beineffect from January 6,2002 tothedate onwhich theRevision ofthe Inthis regard, the aforementioned Resolution provides that the contractual transition period established in December 28,2006. FederalGovernmentdatedthe of 1957 No.Decree ratifiedby Concessionandthe ofGrantor the and Companythe Adjustment Agreementbysignedthe in forthsetperiods time theadjustsretariatwhich the 2007, 30, April On already beenbilled. have 197,149 of total a for 2010 December through 2007 February of months the to corresponding of December31,2010,theinstallments this note. As d) of in itemb)ofparagraph ments, asdescribed install- monthly consecutive and equal 55 in invoiced being is 218,591, totaled which amount, Such 31, 2007 have been fully recognized in the financial statements for the year ended December 31, 2007. schedule applicable to non-residential consumption for the period of November 2005 through January Revenues from the retroactive tariff increase deriving from the implementation of the new electricity rate JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora published Resolution No. 434/2007 of the National Energy Sec - Energy National the of 434/2007 No. Resolution published Gazette Official Official Gazette Official published Resolution No. 467/07 of the ENRE pursuant Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio - - financial statements 132 628/2008 whichapprovesthevaluesofelectricityrateschedule tobeappliedasfromOctober1,2008. Consequently, National Distribution RegulatoryElectricity the the Authority Resolution ofissued for No. sale Market(MEM). Whole- Power Electric the in energy and power of prices reference seasonal new the approved which 1169/2008 No. Resolution issued Secretariat Energy National the 2008, 31, October on Furthermore, consumption. on depending average, on 30%, to 0% from ranged has users final for tariffs in increase the Therefore, added distributionby17.9%andhasbeenappliedtoconsumptionrecordedasfromJuly1,2008. value Company’s the increases schedule rate electricity aforementioned tariff.The the to transfer their the partial application of the adjustments corresponding to the Cost Monitoring Mechanism (MMC) and No. 324/2008 which approves the values of the Company’s electricity rate schedule that contemplates Resolution issued Electricity of Distribution the for Authority Regulatory National the 2008, 31, July On electricitygenerationplantswithMalaverSubstation. Central Puerto and Costanera Central connecting at aimed works the of execution the for used be will funds Such funds. such with Company the by made investments financial the on accrued interest any plus ment, Agree- Adjustment the of 4.7 Clause with compliance in up set fund special the of amount total the of In accordance with the aforementioned resolutions, the Company must transfer to 61.96% CAMMESA, dated December5,2005andJanuary26,2007,respectively. Secretariat, aforementioned the of 223/07 and 1875 Nos. Resolutions of provisions the Company with comply the that requested 1006/07 No. Note by Secretariat Energy the 2007, 19, September On new period,whichincludedthegroundsandcriteriabasedonrequestismade. the for proposal requirements revenue its submitted Company the 2009, 12, November on and, cess, With regard to the commencement of the Revision of the Tariff Structure, the ENRE has begun this pro- since February 1,2009. effect in be to expected was which RTI the from resulting schedule rate electricity the of application As of the date of issuance of these financial statements, no resolution has been issued concerning the of theCompanyTariff Structure(RTI)willgointoeffectinFebruary 2009. Revision the from modifies resulting schedule rate electricity which the that establishes and 865/2008 434/2007 No. Resolution No. Resolution issued Secretariat Energy National the 2008, 30, July On JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 133 deriving from the implementation thereof. This review and analysis process consisted of the verification verification the of consisted process analysis and thereof.review implementation This the from deriving No. 628/2008 of the ENRE –exceptions to the application of the electricity rate schedule- and the effects No. 55/2009, which established a period for the review and analysis of both the application of Resolution On August 10, 2009, the National Regulatory Authority for the Distribution of Electricity issued Disposition nature oftheseclaims. analogousthe to due16,986”, law constitutionalunderrights protectionof the proceedingforothers, Cristina vs Federal Government - Ministry of Planning - Resolution 1169/08 of the Energy Secretariat and 10, Clerk’s Office No. 20, ordered the joinder of these proceedings into the case entitled “Carbonel Silvia of the date of these financial statements, no decision has been made by the Court of Appeals. Court No. sioncausesirreparable an harmfiledappeal, an within thetermprescribed thelaw,by aboutwhich, as deci- said that Company,considering The S.A. EDELAP and Company the by requested been had that the case decided to reject that a summons be served upon the firm CAMMESA as a third-party defendant prescribedbythe law. OnNovember 27, 2009, and within the framework ofthis case, the Court hearing formalitiesthe under and time due in answeredCompany theCompany, whichthe upon served was vs. Federal Government – Resolution No. 1169 and Others, proceeding for the determination of a claim” 2009,proceedingsCourt.noticeJulythe1,SupremeOnof matter “Nationalthe ofthe in Ombudsman pellate Court be sustained. The appeal (“Queja por Recurso denegado”) is currently being analyzed by denegado”) to the Federal Supreme Court requesting that the extraordinary appeal rejected by the Ap- the case. As a final recourse, on December 7, 2009, the Company filed an appeal (“Queja por Recurso hearing court appellate the by rejected also was which decision, this against appeal” “Extraordinary an filed Company The jurisdiction. original of court the by granted injunction prohibitory the effect in tentious and Administrative Federal Matters No. V affirmed the first instance decision, thus maintaining pany and the Argentine Federal Government. On September 1, 2009, National Appellate Court in Con- Com- the by appealed been has measure precautionary The case. the on issued is ruling final a until sued with the rate hike resulting from the application of the resolutions questioned by the is- Ombudsman, bills of nonpayment the to due power cutting from prohibited is Company the which to according presentation, Ombudsman’s the of consequence a as case the hearing Court the by issued injunction Within the framework of the case, on January 27, 2009, the ENRE notified the Company of a prohibitory the RationalUseofElectricPower (PUREE). for Program the of application the and 2008 1, October from as effect into gone had schedule rate ity The National Ombudsman made a presentation against both the resolutions by which the new electric- increasing theCompany’svalueaddeddistribution. ergy price to tariffs, with the aim of reducing Federal Government grants to the electricity sector, without en- seasonal the in increase the of transfer the includes schedule rate electricity aforementioned The JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 134 31, 2009. whichapprovedwinterthequarterly October reschedulingperiod-2009the Augustfor 1, MEM the for On September 3, 2009, the Company was notified of Resolution No. 666/2009 of the Energy Secretariat, the RationalUseofElectricPower (PUREE)hadtoberecalculated. thesubsidized rate schedule-. Moreover, the surcharges billed due tothe application ofthe Program for GovernmentGrant” –its value isthedifference between thevalue arising from thefull rate schedule and the bills issued to customers into two concepts: “Unsubsidized Variable Charge” –full tariff- all andin “Federalcharge variable the down break to instructed were Companies Distribution Additionally,Electricity credit thecorrespondingadjustmentagainstamountpayableinnextbillingperiod. 433/09. In the case of bills that had already been paid, Electricity Distribution Companies were No.required628/2008 of the toENRE, this time applying the Electricity Rate Schedules approved in Resolution No. Resolution of provisions the following resolution, the of scope the within fell situation whose customers aforementionedThe resolutioninstructedthose Electricity to bills Distribution newissue Companies to in accordancewiththeprovisionsofsection7ResolutionNo.652/2009EnergySecretariat. Rate Schedule with unsubsidized Electricity the of values the -full-approved also resolution Additionally, the 2009. tariffs1, August midnight and 2009, 1, applicable to consumption recorded from midnightapproved the Junevalues of the Electricity 1,Rate Schedules applicable 2009,to consumption recorded from midnight June Consequently, on August 18, 2009, the Company was notified of Resolution No. 433/2009 of thethe quarterAugust-October 2009. ENRE, which established the unsubsidized reference market prices of energy for the months of June and reinstatingJuly partial2009 governmentand grants to the electricity generation sector. Furthermore, the resolutionAugust–September alsoand 2009, 2009June-Julyperiods the for valuesestablished newSecretariat, and of the reference market prices of energy set forth in sections 6, 7 and 8 of Resolution No. 1169/08 of that On August 14, 2009, the Energy Secretariat issued Resolution No. 652/09 which ordered the suspension which consumptionexceeded1,000kWhbimonthlyand/or500permonth. ElectricityDistribution Companies should notsendbills corresponding suchtoperiod thoseincases in Furthermore,aforementionedperiodcomprehendeddeterminedtheduringthewasthat by itprocess, customers whoseconsumptionexceeded1,000kWhbimonthlyand/or500permonth. 2009 to the date of issuance of the aforementioned disposition, in the case of small-demand residential for,grantedexceptionsMay implementationeffective fromofconsumptionrecorded the and to, effect in schedule rate the of application correct the of Companies Distribution Electricity three the in situ in JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 135 of Original Jurisdiction in Contentious and Administrative Federal Matters Number 8, in charge of Justice and EDELAP EDESUR, ENRE, the Government, Federal SERVICIOS DE ACCIÓN COMUNITARIA and the UNIÓN DE USUARIOS Y CONSUMIDORES against the COOP.LIBRES CONSUMIDORES DE associations: LTADA.PROVISIÓN consumer DE two by filed was complaintCompany. The the upon served was claim” - a determinationof Secretariat the for Energy proceedings ENRE, National - Government Federal VS COMUNITARIA ACCIÓN DE SERVICIOS DE On October 26, 2009, notice of the complaint “CONSUMIDORES LIBRES COOP. LTADA. DE PROVISIÓN August 1,2010. midnight from recorded consumption to applicable 433/2009, No. Resolution Authority’s Regulatory which approved the values of the ENRE, Company’s Electricity Rate the Schedule included of in Appendix IV 421/2010 of such No. Resolution of notified was Company the 2010, 23, July on Furthermore, tion No.433/2009,applicabletoconsumptionrecordedfrommidnightJune1,2010. Resolu- Authority’s Regulatory such of I Appendix in included Schedule Rate Electricity Company’s the 2010theCompany wasnotified ofResolution No.294/2010 oftheENRE, which approved thevalues of As a consequence of the aforementioned Resolution No. 347/2010 of the Energy Secretariat, on May 21, 433/2009 oftheENRE. No.Resolution of issuancethe to rise gave which652/2009, No.Resolution its in 2009 Secretariatin 30, 2010. It must be pointed out that this situation had already been contemplated by the National Energy application of sections 6, 7, and 8 of its Resolution No. 1169/2008 from June 1, 2010 through September notnegatively affecting user payment capacity, the National Energy Secretariat resolved tosuspend the companies.Therefore, considering the level of electricity consumption during winter and with the aim of classesincluded in the residential category of the electricity rate schedules social of different the referred the to of distribution capacity payment the also but period seasonal such in existing situation the only theseasonal prices tobepaid bythe customers ofdistribution companies should take into account not supporting such resolution, the National Energy Secretariat also stated that it considered it necessarying for the thatWholesale Electric Power Market (MEM) for the period May 1 - October 31, 2010. In the reasons schedul - winter the approved Secretariat Energy National the 347/2010, No. Resolution Furthermore,by Fixed Charge”. tricityRateSchedule approvedResolution by 469/09ENRENo.underthelegendtheof “Unsubsidized Elec- the of charges fixed the customers general-use and residential demand small to issued be to bills the in include to instructed were Companies Distribution Electricity Furthermore, Secretariat. Energy the schedule, with unsubsidized full tariffs to be applied as indicated in section 7 of Resolution No. 652/09 of NationalRegulatory Authority Distributionthefor Electricityof approved valuestheelectricitytheof rate OnSeptember 29, 2009, the Company was notified ofResolution No. 469/09 ofthe ENRE, whereby the JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. , and is pending in the National Court Court National the in pending is and Edenor, CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 136 The remedies sought in the complaint are as follow: follow: as are complaint the in sought remedies The DEFENSA DESUSDERECHOS,havejoinedthecomplaint. CONSUMIDORESENUSUARIOS Y DE UNIÓN and ADDUC consumerrights, ofdefense the fortions Ms. Liliana Heiland, attorney-at-law (deputy). In accordance with the terms of the complaint, the associa- been answeredbytheCompanywithintermandunder theformalitiesprescribedbylaw.has it cause, main the to regard With requested. been has which that rejected nor granted neither has Court the date, to of As Tariffthe process. Structure of Revision the of framework the within than other increases new issue to not ordered be authority application the that plaintiff the by requested subsidiarily also Finally,is suspended. it partially be resolutions to referred the of application the that requested Subsidiarily,is plaintiff. it the by questioned being resolutions the in established hikes rate the suspending of aim the with issued be measure precautionary a that requested is it Additionally, g) f) e) d) c) b) a)

ers onabimonthlybasis. Subsidiarily, should the main claim be rejected, that the defendants be ordered to bill all custom- ment bedeclarednullandunconstitutional. That the resolutions that extend the management periods contemplated in the Concession Agree- unconstitutional. and null declared be renegotiations tractual con- modify that authority governmental a by performed act any as well as resolutions the That Agreement isconsideredover. Concession the of Period Management the public that fact the international to “A” due an class shares, the through of bidding, process, sale the out carry to ordered be defendants the That justment Agreementbedeclarednullandunconstitutional. That the resolutions issued by the Energy Secretariat that extend the transition period of the Ad- That allthedefendantsbeunderobligationtocarryoutRevisionofTariff Structure(RTI). tions berefunded. unconstitutional, and, in consequence whereof, that the amounts billed by virtue of these resolu- and null declared be Secretariat Energy National the and Electricity of Distribution the for thority Au- Regulatory National the by issued rates electricity concerning resolutions last the all That JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 137 The remediessoughtinthecomplaintareasfollow: Office No.15,wasservedupontheCompany. Clerk’s – 2 No. Matters Federal Administrative and Contentious in Jurisdiction Original of Court tional Na- – CONTRACT” OF BREACH for S.A EDESUR – S.A. Edenor PARAvs. CIVIL DEFENSA CIÓN SU ASOCIA- FINANCIEROS “CONSUMIDORES complaint the of notice 2010, 31, Furthermore,March on ing thecaseconcerningCompany’srequestthatCAMMESAbesummonedasathird-partydefendant. them. As of the date of issuance of these financial statements, no decision has been made by the Court hear dants,except for the Federal Government, have already answered co-defen- remaining The defendant. third-party a as CAMMESA theupon served be summons a that noticerequesting of the complaint served upon and terms its all rejecting complaint the answered Company the period, time legal contemplated the Within out ofactionstoaddandclarifyexistingevidence,priortakinganydecisionthereon. carrying the ordered court the date, that on sought, relief provisional the to regard With process. the in involved periods time the extending thus proceeding, summary extraordinary an as brought been On February 11, 2010 the Court hearing the case decided to turn into ordinary the proceeding that had for theCompanywithinpass-throughmechanismintariff. effective are increases generation These Concession. the of Grantor the by ordered costs generation higher the of tariff the to transfer the of result the are they as inasmuch distribution, added value the on impact direct a have not do ENRE, the of 324/08 No. Resolution by granted one the of exception the with increases, rate to objected the mentioned, previously been has which that to reference With ), requesting, at such opportunity, that a summons be summons a of opportunity,that such lack at requesting, for legitimación”), de falta dismiss de (“excepción to standing motion a filed and complaint the answered Company the 2010, 22, April On » » » in accordancewiththeprovisionsofLawNo.26,361. Application of the “borrowing rate” in case of customer delay in complying with payment obligation, without distinguishingtheeffectivedayofpayment. which payment was made within the time period authorized in for such cases second those deadline (14 days) in but date”, due “second on administrative surcharge the of part ofReimbursement wholesale electricitymarket)invoicedthemthepurchasedfordistributionpurposes. defendantstheby whenCAMMESA(the company regulationchargethein of operation andthe of paid been hadVAT no which on FNEE) Electricity- of Fund(Nationalconcept a incorporationof the to due basis taxable “widened” illegally the on paid percentage VAT the of Reimbursement JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio - financial statements 138 Furthermore, otherlegalactions havebeenbroughtagainsttheCompany, whicharedetailedbelow: controlling companywillnothavetomakeanydisbursementwhatsoeverkeepthecontrolofEdenor. authorized to present as bidder in the referred to process and if its offer is selected as the winning bid, the ingoftheRTI comes toanend. Additionally, thecontrolling shareholder -Electricidad Argentina S.A.is- process for the sale of the shares must take place when the five-year tariff period beginning after the end- accordanceInprovisions thewithResolution of commencement 467/2007theENRE,No.the ofthe of of thedateissuancethesefinancialstatementshavenotyetbeensubmitted. as which proposal, its of preparation the from resulting schedules rate technical the submit Company the that requested ENRE the 2009, 18, December on Company the to notified 91,241, No. Note By the newperiod,whichincludedgroundsandcriteriabasedonrequestismade. for proposal requirements revenue its submitted Company the 2009, 12, November on and, process, this begun has ENRE the TariffStructure, the of Revision the of commencement the to regard With been compliedwith,asfromJune16,2010theproceedingsareyettoberesolved. step procedural this Having plaintiff. the to available made were pleadings These defendants. party third- as ENRE the (“AFIP”)and authorities tax Argentine the Government, Federal the upon served » » RSLTO 5/7 F H ER - ENRE THE OF 1957/06 DECREE 51/07 GOVERNMENT (RESOLUTION FEDERAL VS CONSUMIDORES Y USUARIOS DE “UNION already respondedtotheappellant’sbriefs. ContentiousAdministrativeandAppealsinIV. FederalMattersofNo.Company hasCourt Thethe to derivedproceedingswere the Ombudsman, thusNational the byappealed wasjudgment The – Clerk’s OfficeNo.7. 4 No. Matters Federal Administrative and Contentious in Court National in pending is case The Government –EPandholdingtheplaintiffliableforcosts”. judgment was entered “rejecting the complaint filed courtby lowerthe 2010,National 16,September On Ombudsman appeal. oncurrently againstis casethe third-partyThedefendant.Federal a as Thegranting “prohibitoryaof injunction” hasbeen requested. TheCompany hasbeen summoned declared unconstitutional. 25,790 - Decree No. 1957/06 – Decree No. 1959/06, Resolutions Nos. 50, 51 and 102 of the ENRE be DETERMINATIONTHEFORNo.Law legalthisofsectionthataction CLAIM”.of isaim4 The A OF “NATIONAL OMBUDSMAN VS FEDERAL GOVERNMENT LAW 25790 AND OTHERS, PROCEEDINGS JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora AD TES POEDNS O THE FOR PROCEEDINGS OTHERS, AND Edenor) Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 139

the Company, when entering into the “Adjustment Agreement” in September 2005, acquired the acquired 2005, September in “AdjustmentAgreement” the into entering Company,when the altered the balance of the economic and financial equation of the Concession Agreement and that Company’s right to increase rates but rather recognizes that the Federal Government had seriously the create not does it because effect” “retroactive such have not does 1957/06 Decree increase), the of retroactivity (alleged complaint the in issue at question main the considering and action– the of rejection limine in the to lead would and importance vital of is –which fact this to addition In filed. one the as claims present to Consumidores” y Usuarios de “Unión the of legitimación) de Court of Justice in similar cases. That being so specifically with regard to the lack of standing (falta Supreme the and Matters Administrative and Contentious in FederalAppeals the of both Court by applied criteria on based is opinion Such reversed. be will Company the against ruling court the that probability strong a is there advisors legal Company’s the of opinion the in because amount such estimate to premature is However,it harm. believe economic we significant very a suffer will It must be pointed out that if the lower court ruling is affirmed by the Appellate Court, the Company Appellate CourtinContentiousandAdministrativeFederal MattersNo.Vwillhearthecase. rendered.beenjudgmentwhichhad upon case the ofconcerningmeritsappeal thethe ofbases On December 13, 2010, the Company formally submitted to the Court of Original Jurisdiction the written the highercourt. of execution, which means that the court ruling will not be carried out until the appeal is resolved by upheld the petition of the Company and the Federal Government and granted the appeal with a stay An appeal with a stay of execution was filed on November 25, 2010. On December 2, 2010, the Court The judgmentsustainingthecomplaintwasenteredonNovember11,2010. The CompanyansweredthecomplaintonDecember9,2009. d) thatthereimbursementbeimplementedthroughacreditinfavorofcustomers. for theperiodofNovember1,2005throughJanuary31,2007; that c) of tariffsinfavortheCompany; b) that Resolution No. 51/07 of the ENRE be nullified inasmuch as it authorizes the retroactive increase as itestablishesthatthetariffincreasewillberetroactive; a) that clause 4.6 and related ones of Appendix I of the Adjustment Agreement be revoked, The remediessoughtinthecomplaintareasfollow: inasmuch Matters No.12,Clerks’Office23,wasservedupontheCompanyonDecember9,2009. which is pending in National Court of Original Jurisdiction in Contentious and Administrative Federal and Government Federal the against Consumidores y Usuarios de Unión rights consumer DETERMINATIONCLAIM”.complainttheNoticeA associationofOFthe filed by defense the for of Edenor be ordered to reimburse customers all the amounts paid as retroactive tariff increase JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio Edenor, financial statements 140

» » cuts thathadoccurredbetweenDecember20and31,2010,basedonthefollowing: powerthe for1,125 ofamount theRegulatorywhereby CompanytheinAuthorityENRE, the fined the of32/2011 ResolutionNo. issuance of the notifiedof wasCompany the 2011, February 9, On legal advisors,believesthatthereexistsolidargumentstosupportitsposition. as the Company’s management, based on both the aforementioned judgment and the opinion of its Therefore, no accrual has been recorded in these financial statements in connectionsuch balance. with these claims right to apply the temporary “Tariff Regime”, aimed at restoring -although partially and temporarily- judgment isissuedonthemaincause. for provisional remedies requesting that payment of the fined imposed be Court suspended until same a finalthe to applied has Company the Procedure, Commercial and Civil of Code Federal the of sections related and 207 section by authorized as that, to Prior void. and null declared be resolution the that obtaining of aim the with Matters, Federal Administrative and Contentious in Court Law No. 24,065, the Company will Appellate file a direct the appeal (“Recurso to Directo”) of 81 section of framework the within statements, financial these of issuance of date the of As hours. continuous 48 than more lasted that cuts power suffered who those to pesos 450 and hours, 48 to hours continuous 24 than more from lasted that cuts power suffered who those to pesos 350 hours, 24 to hours continuous 12 than more from lasted that cuts power suffered who customer residential small-demand each to pesos 180 following: the with accordance in cuts power the by affected who had been customers those to compensate was ordered the Company Furthermore, Amount ofthefine:375. authority). regulatory the by adopted criterion the to respectively,pursuant ENRE, the by issued regulationswith compliance supply,and powerincreased demand/demand for customer new the of Concession Agreement y) (supply all andthe electric b)power sub-sectionsrequired within the - concession area, 25 meeting section from arising obligations the withNon-compliance users, to respectively, pursuanttothecriterionadopted bytheregulatoryauthority).Amountoffine:750. service adequate guarantee to order in facilities of maintenance and demand, meet to electricity availability of and investments, necessary supply guarantee the make levels, quality ConcessionAgreement andsection Law24,065of27 (provide electric poweraccordancein with the of g) and sub-sections f) a), - obligations 25 sectionNon-compliance from arising the with JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 141 able upontheexecutionoftitledeedonadatetobe set bytheMinistryofEconomy. pay be will 273 of amount outstanding the while made been has 117 of property,payment down a real remaining the for As 12,375. of a at price title executed been have The properties these of eight expired. of deeds had contracts bailment gratuitous whose properties real these of nine 12,765, of amount an for acquired has Company the statements, financial these of issuance of date the of As 3,358 and 2,676 to amounts respectively,concept whichhavebeenrecordedinTrade this accountspayableunderOther(Note6). for owed principal 2009, and 2010 31, December of As annum per 18.5% of under theFrench the system, andarepayableasfromOctober2009. interest for compensatory 104 include of installments installments The 48 3,511. and of 2009, balance 25, remaining September on made Company the which 1,170, of payment advance an establishes agreement aforementioned the in stipulated payment of form The refinancing agreementfor4,681onSeptember25,2009. and recognition debt a into entered Company the which with (ONABE), Properties Public of Agency National the to made are controls and presentations these liquidated, been has entity residual BA’s pending obligation, in certain specified cases contemplated in the Bid Package. At present, as SEG- terminate the gratuitous bailment contract after demanding the performance by the Company of any may SEGBA whatsoever. compensation any to entitled be not will Company the over,and is period concession the when property grantor’s the become will which authorization, prior SEGBA’s constructions, upon new including properties, the to improvements of kind all make may Company The party liability, toSEGBA’ssatisfaction. contributions and charges levied taxes, on such properties any and for of the taking out of payment insurance against fire, the property damage and for third- responsible be would Company the and asset, each of characteristics the on based option, purchase a without or with years, 95 and 5 3, of Pursuant to the Bid Package, SEGBA granted the Company the free use of real property for periods c

| Concession of the use of real property real of use the of | Concession (Note 11). liabilities Other under liabilities Non-current in recorded been have paragraph, preceding the in on has mentioned based been which that which, 22,374, to approximately amount penalties Said JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio - financial statements 142 19

| INSURANCECOVERAGE

Additionallifeinsurance Mandatorylifeinsurance Comprehensive(1) Riskcovered of purposes for policies insurance following safeguarding itsassetsandcommercialoperations: the carries Company the 2010, 31, December of As a 18 b Interestcollectedduringtheyear | Cashandcashequivalents | Interest paid and collected: collected: and paid Interest | |

all highlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorless. equivalents cash as considers Company the Flows, Cash of Statement the of preparation the For

Time deposits Cash andBanks Statement ofCashFlows Total cashandequivalentsinthe Municipal bonds Government bonds Corporate notesandShares Money marketfunds CASHFLOW INFORMATION Interest paidduringtheyear JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora

December 676,843 533,251 117,458 31, 2010 17,523 As of 8,611 Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA 0 0 C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 US$ Contador PúblicoU.C.A. $ $

December31, For theyearsended Socio December 2010 31, 2009 228,372 112,441 27,191 80,055 As of (84,430) 8,685 60,232 0 0 Amount insured 665,486,167 92,125,592 32,244,000 (101,793) December 32,230 126,399 31, 2008 2009 30,717 88,548 As of 6,061 680 393 0 financial statements 143 20 | CLAIM OF THE PROVINCE OF BUENOS AIRES BOARD OFELECTRICPOWER CLAIMOFTHEPROVINCE OFBUENOSAIRESBOARD commitment assumed by the Province in the Federal Pact, and their avoidance of the Federal Supreme the condition of uncertainty generated by the provincial tax authorities’ insistence on not honoring the clarify authority maximum the that so Court, Supreme Federal the of Lawsuits Original of Secretariat At the same time, on June 23, 2005, a petition for a declaratory judgment proceeding was filed with the duly lodgedbytheCompany, thusbecomingfinal. appeal the of favor in pronounced Aires Buenos of Province the Taxof the Court 2007, 27, June On to certainCompanyDirectors. the claim extending 2002, June as of of through the of 2001 date for July the interest the period claim and surcharges includes that 7,720 of amount the in claim additional an include to complaint nal On March 20, 2007, the Board of Electric Power of the Province of Buenos Aires amended the origi- with theProvinceofBuenosAires’commitmentnottolevyanytaxesontransferelectricity. tions established by the aforementioned Decrees-law were unconstitutional, as they were incompatible Such appeals were filed on the grounds that the Federal Supreme Court had declared that the regula- ince of Buenos Aires, which had the effect of temporarily suspending the Company’s obligation to pay. Prov- Taxthe the of with Court decision Board’s the appealed Company the 2003, 23, December On 1997 throughJune2001. July from 9038/78 and 7290/67 Nos. Decrees-law by established taxes certain of agent collecting as act to failure alleged Company’s the to due 25,963, of amount an for fines imposed and claim, the of as of the date and interest surcharges includes that of 284,364 in the amount EDENOR against claim a filed (Board) Aires Buenos of Province the of Power Electric of Board the 2003, 1, December On facilities onprovidingactualservice,exceptforhigh,mediumandlowvoltagenetworks. from removal debris and flooding tremors, earth earthquake, hurricane, tornado, theft, partial fire, ]]Includes: (1) Landfreight Vehicles (theft,third-partyliabilityanddamages) Theftofsecurities Funeral andburialinsurance Riskcovered Importsfreight JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 US$ US$ Contador PúblicoU.C.A. $ $ $

Socio Amount insured 16,630,401 80,610,000 2,000,000 2,250,000 100,000 financial statements 144 21 | LEGALACTIONFORALLEGEDENVIRONMENTAL POLLUTION a declarationofcriminalliability, thestatusofinnocenceshouldprevail. for required certainty of degree the to guilt of presumption the transfer to unable was investigation, thorough a after Prosecutor, the if that stated also decision court’s appellate the Furthermore, tion. obtain a judgment that would put an end to the situation of uncertainty that implied criminal prosecu- the to right included by the Constitution, the to guaranteed at to due right pursuant process, trial defense that stated law, case as judgment “Chazarreta” the quoting court, appellate the decision, its In Juan AntonioLegisaandMs.MaríaCristinaMassei. Mr. officers, ENRE of acquittal the as well as Nadal, Rolland Christian and Ducre Roger Marcel Henri Lafontaine, Henri Ponasso, Francisco Márquez, Adalberto Julio Pironio, Luciano Lello, José Daniel Messrs. of acquittal the ordered had that jurisdiction original of court the by rendered judgment the affirmed Martín San of Appeals of Court Federal the 2008, 25, March on appeal, an of filing the After ordering the closingofcase.Thisdecisioncouldbeappealed. thus case, the in indicted been had that employees and officials Company all of acquittal definitive the Trialruled the Judge 2007 11, July on that notified was Company the 2007, 16, July On matter), whichonApril5,2006ruledthattheappealwasnotadmissible. appeal against this decision was filed in the An charges. on related indicted been had who officers public of ENRE two acquittal the order should Trialthe that Judge established whereof, in consequence and, be not proved, could pollution mental environ- of existence the that fact the on based was Appeals of Court the of decision The assets. Company’s the against order attachment the revoked charges accordingly, and, the defendants three all against dismissed Martín San of Appeals of Court Federal the 2005, 15, December On order. attachment the and employees its against brought charges the both against appeals filed Company the On 2005, 30, May costs. court and restoration repair, of damage cost environmental potential the cover to pesos million 150 of amount the in assets Company’s the on attachment of order an issued judge the violation, alleged this with connection In contamination. environmental (PCB)-related nyl On May 24, 2005,three of exist solidargumentstosupportitsposition. there that believes advisors, legal of its opinion the and pronouncement based aforementioned the on both management, Company’s the as claims these for recorded been has accrual no Therefore, Court’s decisions.TheaforementionedproceedingisstillpendingontheFederal SupremeCourt. JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Edenor’s employees were indicted on charges of polychlorinated biphe- Tribunal for this body de appellate Casación highest (the Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 145 22 | DISCRETIONARYTRUSTAGREEMENT 29, 2008 and duly informed to control authorities, the Company assigns the management of certain of management the assigns Company the authorities, control to informed duly and 2008 29, September on Directors of Board the by approved was which trust, the of establishment the Through cretionary trustagreement. dis- and irrevocable an into entered Limited Bank Macro and Company the 2008, 30, September On risdiction (Federal CourtofCampana –CriminalProceedings)fortheirfiling. ju- original of court the to sent be will proceedings thereof the involved, parties the all to notice given been as has soon as accordingly, conclusive, and final is decision this that mentioning worth is It appeal. the dismissed expressly Court Supreme the 2010, 26, May On sustained. Casación be de Queja” ) to the Federal Supreme Court requesting that the appeal dismissed by the (“Recurso appeal an filed Office Prosecutor’s The guaranties. constitutional of violation arbitrariness the nor alleged the neither proved and appealed, being resolution the supported that ments argu- the refute reasonably and specifically to failed it that grounds the on Office” Prosecutor’s the 2009, 27, May On served. notice the ecutor’s Office filed with such the to notified Pros - the period, was time legal contemplated the Within 2008. question 29, December on in Office Prosecutor’s The resolution sustained. The be well. Martín as San appeal of the Appeals rejected of Casación de TribunalCourt Federal the by dismissed appeal the that ing The Prosecutor’s Office filed an appeal (“Recurso de Queja”) to the the by affirmed was served, been had Federal CourtofAppealsSan Martín,whichrejectedtheProsecutingattorney’sappeal. thereof notice from as days 10 of extraordinary period an the through within Office appeal Prosecutor’s the by requested was reversal whose decision, The been proven. not had pollution environmental PCB-related of existence the which to according Court, Appellate of the resolution aforementioned on the based jurisdiction of original court of the decision the firmed af court appellate the Company, the by briefs legal corresponding the of filing the However,after limitations, asagrievance,amongotherpossibilities,causedbythedecisionofcourt. of statute the beyond being for action of criminal dismissal possible the by Prosecutor, cited the who appealed was jurisdiction original of judge the by ordered dismissal the that mentioning worth is It the ended, had phase Federal CourtofAppealsorderedtheconfirmationaforementionedresolution. investigation preliminary the that considering and foregoing, the on Based JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Tribunal an “Extraordinary appeal”. The defense has duly answered “dismissed the extraordinary appeal filed by the the by filed appeal extraordinary the Tribunal“dismissed Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio Tribunal de Casación request Tribunal de - - financial statements 146 23 | DERIVATIVE FINANCIALINSTRUMENTS a Income underHoldingresults. of Statement the of account assets by generated (losses) gains holding and (expense) income cial Finan- the in disclosed been have transaction this by generated results the 2009, 31, December of As transferred totheCompany. On September 3, 2009, the discretionary trust was dissolved and the trust property was liquidated and uid assetsforUS$2,000,000and1,000,000,respectively. liq- of assignment additional an out carried Company the 2008, 11, and 3 November Furthermore,on 2, October on out carried was 2008. 23,922,000 US$ of amount an for assets liquid of assignment The cordance withthetermsoftrust. ac- in future the in used be to are which 24,000,000, US$ to up of amount initial an for assets liquid Current liabilitiesunderLoans(Note7). in contra-account a with difference, Exchange under income of Statement the of account abilities li- by generated (losses) gains holding and (expense) income Financial the in recorded been has which 7,253, of loss a in resulted transaction this of impact economic the 2010, 31, December of As classified asassetsorliabilities,withacontra-accountinthefinancial gainsorlossesfortheyear. ments be recorded at their net realizable value or settlement value, depending (FACPCE),Sciences oninstru- hedging effective as designated not instruments derivative that requires which whether they have been provisions of Technical Resolution No. 18 of the Argentine tionsFederation as hedgingof Professional instruments. Councils Therefore, in Economicthey have beentransac- these designated formally not has recordedCompany The rates. exchange currency foreign in fluctuations in the accounting in accordance with the 14)-,maturing Aprilon 25, 2011, October 25,2011, April 25,2012and October 25,2012, the inevent of Companyinterestthemustonpay payment datesfinancialitsof debt–ClassFixedRate 9Notes (Note instrumentThisforeign provideseconomicamountsfinancialcurrencytheinanandthe that hedgeof exchange rateofthecashflowsandderivativesinterestpaymenttransactions. currency the foreign NA the Bank aim of with Chase hedging the JP with Morgan instrument financial derivativea with transaction a out carried Company the 2010, 31, December ended year the During | CorporateNotes JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 147

Standard Bank Standard Bank Standard Bank Banco Finansur Banco Finansur Standard Bank Entity Banco Finansur

ing gains(losses)generatedbyassetsaccountoftheStatement ofIncomeunderHoldingresults. 20,837 and 12,266, respectively that have been recorded in the Financial income (expense) and hold- of losses in resulted transactions these of impact economic the 2009, and 2010 31, December of As Entity Banco and S.A. Argentina Bank Standard with into wereasfollow: Finansur S.A., entered contracts the of features main The As ofDecember31,2010,thesetransactionshavebeenfullysettled. the by generated fluctuations intheUSdollarrateofexchange. risk the mitigate to order in instruments economic as them using contracts of aim futures the and with forward into entered has Company the 2009, and 2010 31, December of As b | Forward andFutures Contracts 12/31/2010 12/31/2010

JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora 0 0 0 0 0 0 0 0 Contracted Contracted thousands thousands amount in amount in of US$ of of US$ of 12/31/2009 12/31/2009 65,000 12,000 10,000 33,000 1,000 9,000

0 0 exchange exchange Average Average rate of rate of 4.4475 4.2735 4.4475 4.2400 4.2420 4.1645 4.2700

Transaction Transaction 09/30/2009 01/22/2010 10/01/2009 09/30/2009 07/27/2009 07/27/2009 01/25/2010 Véase nuestroinformedefecha9/3/2011 date date PRICE WATERHOUSE &COS.R.L.

CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A.

12/31/2010 12/31/2010 12/31/2010 06/30/2010 06/30/2010 04/30/2010 12/31/2010 Settlement Settlement Socio date date

of pesos) pesos) of of pesos) pesos) of

12/31/2010 BookvalueAssets BookvalueAssets 12/31/2010 (Liabilities)Note7 (Liabilities)Note7 (inthousands (inthousands 0 0 0 0 0 0 0 0 12/31/2009 12/31/2009 (6,001) (1,338) (1,115) (1,532) (1,814) (202) 0 0 financial statements 148 24 | RESTRICTIONSONTHEDISTRIBUTIONOFEARNINGS ENRE foranydistributionhavebeendisclosedinNote17.b). by by and the the the need for of Company approval dividends on the distribution restrictions Certain only beallowedundercertaincircumstancesdependingontheCompany’sindebtednessratio. may dividends of distribution time, this from As first. occurred whichever 2.5, than lower were ratio leverage Company’s the when time such until or 2008 24, April until dividends distribute to allowed not was Company the 14, Note in to referred debt financial Company’s the of restructuring the Since as determined from suchyearanddividendsorincomerelatedcompaniesinArgentina. income taxable the plus paid dividends less effect, into went law above-mentioned the which on date the preceding immediately year the of end the of as earnings retained propriated subject to a lower tax rate. Forbe income will tax purposes, who accumulated taxable income taxation shall be double the unap- of avoidance the for conventions from benefiting countries of residents are who shareholders to distributed dividends those for except withholding, tax income 35% final a to subject be shall distribution, or payment of date the preceding of as immediately year-end profits fiscal the taxable accumulated of excess in kind, in or cash in whether distributed, be to dends divi- 1998, December in passed 25,063, No. Law of provisions the with accordance in Moreover, of December31,2009totheaforementionedlegalreserve(Note16.d). as Earnings Retained Unappropriated of 4,532 appropriated 2010 7, April on held Meeting holders’ Share- Ordinary The stock. capital of 20% equals reserve such until reserve, legal the to propriated In accordance with the provisions of Law No. 19,550, 5% of the net income for the year must be ap- JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 149 COLLECTION ANDPAYMENT TERMS 25 | BREAKDOWNOFTEMPORARYINVESTMENTS,RECEIVABLES ANDLIABILITIESBY

With noexplicitduedate With Term are asfollow: 2010, 31, December of as below accounts the of balances the regulations, CNV’s the by required As Uptothreemonths Past due: duedate With the remainingaccruesinterestatafixedrate. whereas rate floating a at interest accrues debt the of 9.75% only average; on 10.35%, approximately to amount which rates, fixed and floating at interest accrues 14 Note in mentioned debt financial The (2) Comprisestotalliabilitiesexceptaccruedlitigationandfinancialdebts. (1) Excludesallowances. From threetosixmonths From sixtoninemonths From ninetotwelve months Overoneyear From threetosixmonths Uptothreemonths To becomedue: Total pastdue Total Total withduedate Total tobecomedue Overoneyear From ninetotwelve months From sixtoninemonths JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Investments 668,232 668,232 668,232 668,232

0 0 0 0 0 0 0 0 0 0 0

Véase nuestroinformedefecha9/3/2011 Receivables PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA 347,339 157,341 119,249 671,392 625,861 468,520 C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 45,531 68,939 25,667 19,917 12,087 30,731 1,070 Contador PúblicoU.C.A. (1) 153 709

Socio 1,035,113 1,089,221 1,089,221 1,089,221 Financial (Loans) 12,336 26,198 9,753 Debt 5,821 0 0 0 0 0 0 0

1,769,683 984,518 631,101 110,606 785,165 payables 785,165 14,502 14,470 14,486 Other (2) 0 0 0 0 0 0 financial statements 150 26 | SUBSEQUENT EVENTS SUBSEQUENT its indirect controlling company Pampa Energía S.A. (“Pampa”), whereby (“Pampa”), S.A. Energía Pampa company controlling indirect its On March 4, 2011, the Company’s Board of Directors decided to accept the gratuitous offer from c) Acquisitionofassets 280,000 andcarryinterestatanannualrateof14.5%onaverage. local from to be able to meet its future capital needs. These overdrafts facilities, whose average term is 90 days, total bank and loans of order in Bank) series Standard and Nación Banco a Macro, Banco Bank, Deutsche (JPMorgan, out entities took Company the 2011 16, February On b) Loanstakenout due notes” par rate “floating all in 2019,foranominalvalueofUS$12,656thousand(Note14). operations successive in Company and the prices market statements, at financial repurchased these has of issuance of date the through 2011 1, January From a) RepurchaseofCorporateNotes representing 0.01% of ESED’s capital stock and votes, (all the shares mentioned in items (ii) (ii) items in mentioned shares the (all votes, and stock capital ESED’s of (“ESED”) 0.01% S.A. Abiertos representing capital Eléctricos Sistemas EDELAR’s de of Empresa of 0.01% share common 1 (v) representing votes, and stock (“EDELAR”) S.A. Rioja la de Electricidad de tribuidora Edesal’s of Dis- Empresa of share common 0.01% 1 (iv) votes, and stock capital EGGSA’s of 0.02% representing representing (“Edesal”) S.A. (“EGSSA”) Luis S.A. Salta Generación Emdersa of shares common 600 San (iii) votes, common and stock capital 2 de (ii) Shares”), Distribuidora (“Emdersa Empresa votes of and shares stock capital Emdersa’s of 77.19% representing (“Emdersa”), S.A. EMDERSA of shares common 182,224,095 (i) AEIU from acquired Company Pampa as the acquiring party under the PESA-AEI Agreement. Therefore, on March 4, 2011, the offer,said of Company the by acceptance the of consequence a As part. second the the of under organized anónima) (sociedad laws corporation of Argentina, and AEI, a a company organized under the laws of S.A., the Cayman Islands, parties Argentina Servicios AEI part, (“AEIU”), first the of party Pampa, between and by and a AEI limited Utilities, company S.L., (sociedad limitada) organized under the 2011 laws of Spain 19, January on to into entitled entered was agreement Pampa an which assets, distribution electricity acquire (either directly or through one or more subsidiaries), certain from Grupo AEI in accordance with acquiring of possibility the JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio was appointed by by appointed was Edenor Edenor was offered offered was financial statements 151 US$ 0.68 per Emdersa’s common share, is still pending. Therefore, the situation generated by by generated situation the Therefore, pending. the potentialcoexistenceoftwopublicofferingsmust, in theCompany’sopinion,beclarified. still is share, common of price a Emdersa’s at AEIU per by out 0.68 carried US$ be to is The reasons same the for of that out regulations. offering carrying and acquisition Commission’s public authorization the the that fact Securities the to due made was National the consultation and aforementioned the 677/01 with No. accordance in Decree and of control company’s provisions that in change the to due Emdersa’s shareholders to make minority must Company the that shares Emdersa’s of acquisition the for offering ted the National Securities Commission about the steps to be followed with regards to the public In compliance with current regulations, it is hereby stated that the Company has formally consul- within themarket’sparameters. and adequate are values informed the that stating acquisition, the to prior opinion, their dered ren- Committee Audit Company’s the and Citigroup Both requested. also was paid Committee Audit be to have would that price the of the for to fairness Emdersa’s shares, the Residual the shares and AESEBA’s opinion shares. The opinion of the Company’sconcerning fairness a Directors, render of to Board (“Citigroup”) Company’s Inc. Markets the of Global services the Citigroup bank engaged Company investment the transaction, described above the evaluate to order In of any for AEIU to paid amount the of such Shares(Emdersa’sand/orResidualAESEBA’sShares). excess in thereof sale the for received amount the of 50% toequivalent payment a Company the from Pampareceive shares, to such entitled of be would res, the Residual Shares and AESEBA’s Shares, the Company sold either totally or partially any Sha- Emdersa’s of date acquisition following years 3 the within if that agreed additionally have parties the Company, the by accepted and Pampa by made offer the of framework the Within tricity distributionservicesinthenorthernandcentralpartofProvinceBuenosAires. capital the of 90% owns stock and turn votes in of Empresa Distribuidora de AESEBA Energía Norte, S.A. (“EDEN”), which provides elec- Furthermore, votes. and stock capital owns ESED’s of EDESA votes. 99.99% and stock capital EDELAR’s of 99.99% (iv) and votes, and stock capital and stock capital the of 90% (ii) votes of Empresa votes, Distribuidora de Electricidad and de Salta S.A. stock (“EDESA”), (iii) capital 99.98% of EGSSA’s EDESAL’s of 99.99% (i) owns: Emdersa for 49.998,280 US$ to and 90,000,000 AEIU US$ from to acquired AESEBA’s SharesacquiredfromAEIU. amounted Shares assets Residual the and aforementioned Shares the Emdersa’s for for Company the by paid price The shares common 29,118,127 of (vi) AESEBA and S.A. representing 99.99% of AESEBA’s Shares”) capital stock and votes (“AESEBA’s “Residual the as Shares”). to referred hereinafter (v) through JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 152 to which the Company will receive a US$ 5 million two-year term loan at an annual rate of 5%. 5%. of rate cordance withitsbusinessplan. annual an at loan ac- in make term to intends Company the that investments two-year several finance to used be will million loan The 5 US$ a pursuant receive agreement will an into Company the entered which S.A. to Energía Pampa and Company the 2011, 4, March On d) Loanwithrelatedcompanies(Section33LawNo.19,550) from authorization obtaining at aimed the correspondingcontrolauthorities. proceedings the initiated has Company the Furthermore, EDESAL iv) and 131,319.5 EDESA iii) 37,502.5. 31,178; in EDELAR ii) 80,000; distributed be EDEN i) will 2011, manner: 30, April following on the mature and 16% of rate annual an at interest carry which them to loans of series a loans,granted The negotiate. to position better a in them putting Company restructuring, the for allow to the order in 2011, 4, March on their by out taken Therefore, loans due. the calling for subsidiaries grounds constitutes companies acquired the of control in Finally, within the framework of the reported transaction for the acquisition of shares, the change holders. share- Emdersa’s with commitment irrevocable an constitutes and 2011, 4, March on Directors per of Board Company’s 0.49 the by approved US$ was offering acquisition public i.e. said of out AEIU, carrying The to paid Company the authority.control the by established period that the time and manner the at in share, common Emdersa’s share out carried common be will is Emdersa’s which it per control, offering price Emdersa’s same in acquisition change public new the the to out due carry make to to required obligation its assumed fully has Company The JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio financial statements 153 27 | FINANCIALSTATEMENTS TRANSLATION INTOENGLISHLANGUAGE in thecountriesofusersfinancialstatements,otherthanArgentina. shareholder’s equity or cash flows in accordance with accounting principles generally accepted ying financial statements are not intended to present the financial position, results of operation, accompan- Accordingly,the quantified. been not have used be to are statements financial the accepted ac- generally whichin countries the in accepted generally principles generally principles accounting the and Argentina in cepted accounting the principles between differences the accounting of with effects The Argentina. accordance in in presented and Spanish in pany Com- the by prepared originally those of translation English the are statements financial These JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Véase nuestroinformedefecha9/3/2011 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Socio Alejandro Macfarlane Presidente financial statements 154 JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora MAIN ACCOUNT (stated inthousandsofpesos)

(1) Includesnetvalueofretirementsforthesalerealpropertyas ofDecember31,2010for2,169(Notes3.gand12). PROPERTY, PLANTANDEQUIPMENT BALANCE SHEETSASOFDECEMBER31,2010AND2009 (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. Substations FACILITIES INSERVICE Highvoltagenetworks Medium voltage networks networks voltage Medium Low voltage networks networks voltage Low andplatforms chambers Transformation Meters Meters Buildings Buildings andfacilities Communicationsnetwork software projects projects software Furniture, equipmentand Total facilitiesinservice Transportation equipment equipment Transportation FURNITURE, TOOLSANDEQUIPMENT FURNITURE, Total furniture, tools and equipment equipment and tools Totalfurniture, Tools and other Tools other and Total assets subject to depreciation depreciation to subject Total assets Total 2010 Transmission Transmission Total 2009 Total constructioninprocess CONSTRUCTION INPROCESS Distributionandother OriginalValue

Véase nuestroinformedefecha9/3/2011 Atbeginning PRICE WATERHOUSE &COS.R.L.

1,027,225

1,771,311 1,771,311 5,630,190 5,892,243 5,892,243 6,213,895 5,818,111 5,818,111 CARLOS MARTÍN BARBAFINA ofyear C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 462,272 881,843 881,843 615,038 679,812 679,812 191,338 191,338 262,053 262,053 157,329 157,329 321,652 164,323 96,374 96,374 96,315 23,837 23,837 Contador PúblicoU.C.A 46,878 46,878 Socio

Additions 388,770 373,329 112,871 112,871 404,310 404,310 260,458 15,441 15,441 15,441 15,441 5,040 5,040 8,706 8,706 1,695 1,695

0 0 0 0 0 0 0 0 0 0 0 0 0

Retirements

(2,212) (2,634) (5,511) (5,942) (5,942) (8,526)

(122) (543) (112) (431) (282) (37) 0 0 0 0 0 0 0 0 0

Transfers (387,182) (255,508) (131,674) 111,931 387,182 387,182 387,182 ALEJANDRO MACFARLANE 19,743 65,657 65,657 58,022 58,022 45,774 66,029 66,029 13,332 13,332 6,694 EXHIBITA 0 0 0 0 0 0 0 0 0 0 0 Presidente

1,139,156 1,827,121 1,827,121 6,011,861 6,288,924 6,288,924 6,596,723 6,213,895 6,213,895 482,015 947,378 947,378 660,269 745,841 745,841 107,072 107,072 103,009 277,063 277,063 200,007 200,007 307,799 138,526 138,526 169,273 ofyear Atend 28,765 28,765 48,291 48,291

Atbeginning 1,032,580 1,032,580 2,494,984 2,731,509 2,731,509 2,731,509 2,561,853 2,561,853 ofyear 362,172 156,557 348,568 348,568 224,852 2 236,525 236,525 177,755 177,755 85,626 85,626 23,152 23,152 61,477 14,874 14,874 43,896 43,896 0 0 0 0

Retirements (1,444) (2,250) (2,648) (2,648) (5,763) (1) (104) (237) (465) (265) (398) Depreciation (96) (37) 0 0 0 0 0 0 0 0 0

166,125 178,380 178,380 178,380 175,419 175,419 For the 30,537 12,615 25,550 25,550 44,427 44,427 19,075 27,615 27,615 12,255 12,255 year 1,392 1,392 4,914 2,366 2,366 9,232 9,232 657 657 0 0 0 0

10 - 11% - 10 12 - 13% - 12 Annual 3 -4% 3 -4% 3 - 4% - 3 4 - 5% - 4 3 -4% 4 - 5% - 4 2 - 3% - 2 4 -5% Rate 20% - -

1,075,563 1,075,563 2,658,859 2,907,241 2,907,241 2,907,241 2,731,509 2,731,509 of year At end 392,709 169,172 374,014 374,014 243,690 313,241 313,241 186,950 186,950 248,382 248,382 24,079 24,079 66,391 44,288 44,288 17,144 17,144 0 0 0 0

book value 3,353,002 3,381,683 3,381,683 3,689,482 746,447 312,843 573,364 573,364 751,558 751,558 416,579 432,600 432,600 307,799 169,273 138,526 138,526 82,993 82,993 36,618 11,621 11,621 13,057 13,057 28,681 28,681 2010 Net 4,003 4,003 -

book value 3,135,206 3 3,482,386 3,482,386 ,160,734 ,160,734 665,053 305,715 533,275 533,275 738,731 738,731 390,186 394,186 394,186 321,652 164,323 157,329 157,329 73,222 73,222 34,838 13,583 13,583 25,528 25,528 2009 Net 2,982 2,982 8,963 8,963 - MAIN ACCOUNT (stated inthousandsofpesos) Substations PROPERTY, PLANTANDEQUIPMENT BALANCE SHEETSASOFDECEMBER31,2010AND2009 (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. FACILITIES INSERVICE Highvoltagenetworks Medium voltage networks networks voltage Medium Low voltage networks networks voltage Low andplatforms chambers Transformation Meters Meters Buildings Buildings andfacilities Communicationsnetwork software projects projects software Furniture, equipmentand Total facilitiesinservice Transportation equipment equipment Transportation FURNITURE, TOOLSANDEQUIPMENT FURNITURE, Total furniture, tools and equipment equipment and tools Totalfurniture, Total assets subject to depreciation depreciation to subject Total assets Tools other and Total 2010 Transmission Total 2009 Total constructioninprocess CONSTRUCTION INPROCESS Distributionandother OriginalValue

Atbeginning

1,027,225

1,771,311 1,771,311 5,630,190 5,892,243 5,892,243 6,213,895 5,818,111 5,818,111 ofyear 462,272 881,843 881,843 615,038 679,812 679,812 191,338 191,338 262,053 262,053 157,329 157,329 321,652 164,323 96,374 96,374 96,315 23,837 23,837 46,878 46,878

Additions 388,770 112,871 112,871 373,329 404,310 404,310 260,458 15,441 15,441 15,441 15,441 5,040 5,040 8,706 8,706 1,695 1,695

0 0 0 0 0 0 0 0 0 0 0 0 0

Retirements

(2,212) (2,634) (5,511) (5,942) (5,942) (8,526)

(122) (543) (112) (431) (282) (37)

0 0 0 0 0 0 0 0 0

Transfers (387,182) (131,674) (255,508) 111,931 387,182 387,182 387,182 19,743 65,657 65,657 58,022 58,022 45,774 66,029 66,029 13,332 13,332 6,694

0 0 0 0 0 0 0 0 0 0 0

1,139,156 1,827,121 1,827,121 6,011,861 6,288,924 6,288,924 6,596,723 6,213,895 6,213,895 482,015 947,378 947,378 660,269 745,841 745,841 107,072 107,072 103,009 277,063 277,063 200,007 200,007 307,799 138,526 138,526 169,273 ofyear Atend 28,765 28,765 48,291 48,291

(1)Includesnetvalue of retirementsforthesalerealpropertyasDecember31,20102,169(Notes3.gand12).

financial statements 155 Atbeginning JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora (stated in thousands of pesos) pesos) of thousands in (stated PROPERTY, PLANTANDEQUIPMENT BALANCE SHEETSASOFDECEMBER31,2010AND2009 (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. 1,032,580 1,032,580 2,494,984 2,731,509 2,731,509 2,731,509 2,561,853 2,561,853 ofyear 362,172 156,557 348,568 348,568 224,852 2 236,525 236,525 177,755 177,755 85,626 85,626 23,152 23,152 61,477 14,874 14,874 43,896 43,896 0 0 0 0

Retirements (1,444) (2,250) (2,648) (2,648) (5,763) (1) (104) (237) (465) (265) (398) Depreciation (96) (37) 0 0 0 0 0 0 0 0 0

166,125 178,380 178,380 178,380 175,419 175,419 For the 30,537 12,615 25,550 25,550 44,427 44,427 19,075 27,615 27,615 12,255 12,255 year 1,392 1,392 4,914 2,366 2,366 9,232 9,232 657 657 0 0 0 0 Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 10 - 11% - 10 12 - 13% - 12 C.P.C.E.C.A.B.A. Tº1-Fº17 Annual Contador PúblicoU.C.A 3 -4% 3 -4% 3 - 4% - 3 4 - 5% - 4 3 -4% 4 - 5% - 4 2 - 3% - 2 4 -5% Rate 20% - - Socio

1,075,563 1,075,563 2,658,859 2,907,241 2,907,241 2,907,241 2,731,509 2,731,509 of year At end 392,709 169,172 374,014 374,014 243,690 313,241 313,241 248,382 248,382 186,950 186,950 24,079 24,079 66,391 44,288 44,288 17,144 17,144 0 0 0 0

book value 3,353,002 3,381,683 3,381,683 3,689,482 746,447 312,843 573,364 573,364 751,558 751,558 416,579 432,600 432,600 307,799 169,273 138,526 138,526 82,993 82,993 36,618 11,621 11,621 28,681 28,681 13,057 13,057 2010 Net 4,003 4,003 -

ALEJANDRO MACFARLANE book value 3,135,206 3 3,482,386 3,482,386 EXHIBIT A ,160,734 ,160,734 665,053 305,715 533,275 533,275 738,731 738,731 390,186 394,186 394,186 321,652 164,323 157,329 157,329 73,222 73,222 34,838 25,528 25,528 13,583 13,583 2009 Presidente Net 2,982 2,982 8,963 8,963 - financial statements 156 JOSÉ DANIEL ABELOVICH features Nameand

NON-CURRENT

INVESTMENTS ofsecurities

pesos) of thousands in (stated Section33LawNo.19,550

asamended-Companies- RelatedCompany: SACME S.A. SACMES.A.

INVESTMENTS INOTHERCOMPANIES BALANCE SHEETSASOFDECEMBER31,2010AND2009 (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. Total por ComisiónFiscalizadora

non-endorsable common Class

Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 value Face Contador PúblicoU.C.A $ 1

Socio

Number 6,000

Adjusted

cost 15

Value on method equity

415 ALEJANDRO MACFARLANE

EXHIBIT C Presidente bookvalue 2010

Net 415 415

services Activity Electric power Main

12/31/2010 Date

Lastfinancialstatementissued InformationontheIssuer Nominal Capital Stock 12

Incomefor theyear 14

Equity 830

incapital Interest stock 50 %

bookvalue 2009 408 408 Net features Nameand

INVESTMENTS NON-CURRENT ofsecurities

SACME S.A. SACMES.A. RelatedCompany: asamended-Companies- Section33LawNo.19,550 pesos) of thousands in (stated Total INVESTMENTS INOTHERCOMPANIES BALANCE SHEETSASOFDECEMBER31,2010AND2009 (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A.

non-endorsable common Class

value Face $ 1

Number 6,000

Adjusted

cost 15

Value on method equity

415

bookvalue 2010

Net 415 415

financial statements 157 services Activity Electric JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora power (stated in thousands of pesos) pesos) of thousands in (stated INVESTMENTS INOTHERCOMPANIES BALANCE SHEETSASOFDECEMBER31,2010AND2009EXHIBITC (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. Main

12/31/2010 Date

Lastfinancialstatementissued InformationontheIssuer Nominal Capital Stock 12

Véase nuestroinformedefecha9/3/2011 Incomefor theyear PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 14

Contador PúblicoU.C.A Socio Equity 830

incapital Interest stock 50 %

ALEJANDRO MACFARLANE

bookvalue 2009 408 408 Net Presidente financial statements 158 JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora > Time deposits CURRENTINVESTMENTS MAINACCOUNT Netbookvalue pesos) of thousands in (stated (1) IncludesCorporateNotesofTransener for17,527asofDecember31,2010(Note15). S.A. OTHER INVESTMENTS BALANCE SHEETSASOFDECEMBER31,2010AND2009 (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. > CorporateNotes > Moneymarketfunds Total CurrentInvestments Total Investments in foreign currency (Exhibit G) G) (Exhibit currency foreign in in foreign currency (Exhibit G) G) (Exhibit currency foreign in inlocalcurrency

Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A Socio

EXHIBITD 668,232 668,232 117,458 533,251 533,251 17,523 17,523 2010

ALEJANDRO MACFARLANE Presidente 219,687 219,687 219,687 112,441 112,441 80,055 27,191 27,191 2009

financial statements 159 JOSÉ DANIEL ABELOVICH litigation Accrued liabilities Included innon-current litigation Accrued liabilities Included incurrent For otherdoubtfulaccounts For doubtfulaccounts current assets Deducted from ACCOUNT MAIN BALANCE SHEETSASOFDECEMBER31,2010AND2009 (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. 2010 pesos) of thousands in (stated ALLOWANCES ANDACCRUALS por ComisiónFiscalizadora

beginning beginning

ofyear 10,084 10,084 62,813 19,688 7,908 7,908 At

Véase nuestroinformedefecha9/3/2011 Additions PRICE WATERHOUSE &COS.R.L. 16,313 16,313 CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 4,891 4,891 3,613 3,613 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A 0 0

Retirements Socio

(8,594) (6,742)

(868)

0 0

Recoveries

(2,400)

0 0 0 0 0

ALEJANDRO MACFARLANE 12,799 12,799 57,832 57,832 29,259 end of of end year 6,816 6,816 At EXHIBITE

Presidente

end of of end 10,084 10,084 62,813 62,813 19,688 2009 year 7,908 7,908 At financial statements 160 JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora (stated in thousands of pesos) pesos) of thousands in (stated FOREIGN CURRENCYDENOMINATED ANDLIABILITIES ASSETS Expenses advanced advanced Expenses Otherreceivables deposits Time Investments banks and Cash CurrentAssets

Other margin Initial otherthanthemainactivity Receivablesfromactivities CorporateNotes Account BALANCE SHEETSASOFDECEMBER31,2010AND2009 (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. Total Assets Total CurrentAssets

ECU ECU ECU US$ US$ US$ US$ US$ US$ US$ US$ US$ Currency Currency amount

and and

(2) (2) 135,480,437 2010

4,452,058 4,452,058 1,008,586

Véase nuestroinformedefecha9/3/2011

382,816 382,816 111,954 PRICE WATERHOUSE &COS.R.L. 45,911 45,911 17,682 17,682 CARLOS MARTÍN BARBAFINA 5,797 C.P.C.E.C.A.B.A. Tº175-Fº65

C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A 0 0 0

Exchange Socio 5.2191 5.2191 5.2191 5.2191 rate (1) 3.936 3.936 3.936 3.936 3.936 3.936 3.936 3.936 3.936

557,168 557,168 533,251 thousands 17,523 17,523 amount in in amount of pesos pesos of 3,970 1,507 1,507 Booked 240 240 584 23 70 70 0 0 0 2009

ECU ECU ECU ECU US$ US$ US$ US$ US$ US$ US$ US$ US$ Currency Currency amount

and and (2) (2) 29,904,415

7,226,043 7,226,043 6,090,200 6,090,200 292,212 292,212 363,665 118,878 118,878

ALEJANDRO MACFARLANE

42,394 42,394 19,949 5,600 3,983

EXHIBITG

Presidente

amount in in amount thousands of pesos pesos of Booked Booked 165,802 165,802 112,441 27,170 27,170 22,899 22,899

1,099 1,099 1,367 229 229 447 447 108 21 21 financial statements 161 JOSÉ DANIEL ABELOVICH (stated in thousands of pesos) pesos) of thousands in (stated FOREIGN CURRENCYDENOMINATED ANDLIABILITIES ASSETS BALANCE SHEETSASOFDECEMBER31,2010AND2009 (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. Other Otherliabilities CorporateNotes Loans

Corporate Notes Notes Corporate Loans Non-Current Liabilities Total CurrentLiabilities (2) US$=USDollar;ECUEuro;CHFSwissFranc. (1) SellingandbuyingexchangerateofBancodelaNaciónArgentina ineffectattheendofyear. Total Liabilities Total Non-CurrentLiabilities Trade accountspayable Current Liabilities Account

por ComisiónFiscalizadora

Currency Currency

US$ US$ ECU ECU ECU CHF US$ US$ US$ amount

and and 255,969,567 255,969,567

(2) (2) 2010 5,582,495 4,476,084

Véase nuestroinformedefecha9/3/2011

338,302 153,989 304,112 304,112 PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A

0

Exchange 3.976 3.976 5.2726 4.2429 5.2726 5.2726 Socio rate (1) 3.976 3.976 3.976

Booked

1,061,329 1,017,735 1,017,735 thousands 22,196 17,797 43,594 amount in in amount of pesos pesos of 1,345 1,603 1,603

653 0 2009

Currency Currency

US$ US$ ECU ECU ECU CHF US$ US$ US$

amount

176,633,106

and and (2) (2) 3,682,978 7,513,124 347,618 108,826

ALEJANDRO MACFARLANE 15,438 15,438 8,913 Booked Booked

EXHIBITG

Presidente amount in in amount thousands of pesos pesos of 715,606 671,206 671,206 44,400 13,996 28,550

1,321 400 84 84 49

financial statements 162 JOSÉ DANIEL ABELOVICH por ComisiónFiscalizadora Fees Securityservices Rentandinsurance Work bythirdparties Suppliesconsumption Allowancefordoubtfulaccounts Bankcommissions Postage andtelephone Salaries and social security taxes Total 2009 Total 2010 Other Taxes andcharges Committeemembers’fees DirectorsandSupervisory andequipment Depreciationofproperty, plant Temporary personnel Reimbursementstopersonnel Advertising Computerservices Description INFORMATION REQUIREDBY SECTION64CLAUSE b)OFLAW No.19,550 (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. (stated in thousands of pesos) pesos) of thousands in (stated FOT THEYEARSENDESDECEMBER31,2010AND2009

and Distribution Distribution and Transmission Expenses 118,440 293,265 548,583 636,289 169,402 36,788 6,162 3,914 5,656 1,034

849 164 350 264 0 0 1 0 0 Véase nuestroinformedefecha9/3/2011

PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº175-Fº65 C.P.C.E.C.A.B.A. Tº1-Fº17

Contador PúblicoU.C.A 2010 Expenses Expenses Selling Socio 158,956 194,236 48,131 21,204 10,667 11,531 68,100 20,554 4,033 1,207 6,708

491 663 662 217 63 0 0 5

Administrative Expenses Expenses 144,034 178,897 14,264 13,887 76,983 18,444 26,746 2,932 2,754 2,034 3,239 2,302 3,672 4,945 5,468 746 481

0 0

1,009,422 ALEJANDRO MACFARLANE 180,458 438,348 178,380 Total 18,841 40,204 21,204 10,667 19,221 22,857 18,444 33,804 9,585 3,566 3,672 2,117 1,732 6,322

Presidente - EXHIBIT H

165,341 330,358 851,573 175,419 11,697 37,727 18,582 15,038 19,940 16,769 28,602 Total 2009 6,854 9,373 2,291 2,860 1,918 2,571 6,233

- financial statements 163 1 DECEMBER 31,2010,2009,2008,2007AND2006 INFORMATIVE SUMMARYFORTHEYEARSENDED 1025 AzopardoStreet-Federal Capital (EDENORS.A.) EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. market oftheLuxembourgStock Exchange. alternative the is which Market, MTF Euro the on trading for admission and Exchange Stock Luxembourg Electrónico the on Notes Abierto Corporate the of listing Mercado the for the authorization as well on as Argentina), of trading market OTC (the for S.A. admission and Exchange Stock Aires Buenos the on Notes Corporate the of listing the for authorization requested has Company The 2022. in date maturity at payment sum lump a in amortized be will principal The 2011. 25, April on maturing payment interest first issuance at a fixed rate of 9.75%, payable semiannually on October 25 and April 25 of each year, with the of 100% of the principal amount. The twelve-year term corporate notes accrue interest as from the date of price issue an at issued been have 230,301,000 US$ of amount an for Notes Corporate 9 Class new The Notes. Corporate 7 Class on interest unpaid and accrued of payment the including 35,750,000, US$ paid having 2010, 1, November through tendered been had that 33,593,000 US$ of value nominal a for Notes Corporate 7 Class purchased and accepted and Notes; Corporate 7 Class on and interest unpaid accrued of payments including cash, in 9,532,000 US$ paid and 90,301,000 US$ had of value that a nominal for 9.75% of 90,301,000 rate fixed US$ a at 2022, of due Notes value Corporate for 2010, nominal 1, November a through tendered for been Notes Corporate 7 Class exchanged and accepted Corporate issued Notes Company for a the nominal value cash, of in US$ 140 million. Offer Furthermore, as a Subscription result the of the of exchange offer,result a the Companyas and 2010 25, October On increasing servicequalitylevelsandmeetingcurrentnewcustomerdemand. to allocated mainly was amount This 388,770. totaled equipment and plant property, in investment The of 2009. The demand for electricity, in units of power, in the concession area, increased 6.6% as compared to that operating net the to compared as income of222,925recordedinthepreviousyear. 94,475, to amounting significantly worsened income operating Net year, theCompany’s shareholders’equityamountsto2,108,178. the of end the of As 74,031. of loss net a recorded Company the 2010, 31, December ended year the In (Figures statedinthousandsofpesosasindicatedNote2tothefinancialstatements) (Not coveredbytheIndependentAuditors’Report) | GENERALCOMMENTS financial statements 164 Residual Sharesand/orAESEBA’s Shares). and/or Shares (Emdersa’s Shares such of any for AEIU to paid amount the of excess in thereof sale the for received amount the of 50% to equivalent payment a Pampa Company the from shares, receive to such entitled of be would any partially or totally either sold Company the Shares, have AESEBA’s and parties Shares the Company, the by Residual the accepted Shares, Emdersa’s of date and acquisition following 3 years the within if Pampa that agreed additionally by made offer the of framework the Within acquired fromAEIUandtoUS$49.998,280forAESEBA’s Shares acquiredfromAEIU. for the aforementioned assets amounted to US$ 90,000,000 for Emdersa’s Shares and the Residual Shares common share of Empresa de Sistemas Eléctricos Abiertos S.A. (“ESED”). The price paid by the Company S.A. Salta Generación Emdersa of (“EGSSA”), shares (iv) 1 common common share of Empresa 600 Distribuidora de Electricidad (iii) de la Rioja S.A. (“Edesal”), (“EDELAR”), (v) 1 S.A. Luis San de Distribuidora Empresa of shares common 2 (ii) (“Emdersa”), S.A. EMDERSA of shares common 182,224,095 (i) AEIU acquiring party under the PESA-AEI Agreement. Therefore, on March 4, 2011, the Company acquired from As a consequence of the acceptance by the Company of said offer, and betweenPampa, partyofthesecondpart. partyofthefirstpart,andAEIUtilities,S.L., more subsidiaries), from Grupo AEI in accordance with an agreement entered into on January 19, 2011 by certain electricity distribution assets, which Pampa was entitled to acquire (either directly or through one or controlling company Pampa Energía S.A. (“Pampa”), whereby On March 4, 2011, the Company’s Board of Directors decided to accept the gratuitous offer from its indirect carry interestatanannualrateof14.5%onaverage. and 280,000 total days, 90 is term average whose facilities, These needs. capital future its meet to able from overdrafts bank and in Bank) to order be and Standard Nación Banco Macro, Banco Bank, loans Deutsche (JPMorgan, entities of local series a out took Company the 2011 16, February on Furthermore, for anominalvalueofUS$12,656thousand. 2019, in due notes” par rate “floating all operations successive in and prices market at repurchased has Additionally, from January 1, 2011 through the date of issuance of these the financial statements, Company time. such at outstanding 1,250 thousand, Notes of 122,644 Corporate the 83.3% approximately US$ represented which respectively, of 36 and thousand, thousand values nominal for Notes Corporate 7 Class cancelled Company the offer, exchange and repurchase the of result a as 2010, 9, December and 4, November 25, October On portfolio foranominalvalueofUS$65,310,000. its in held Notes 7 Corporate Class cancelled Company the 2010, 18, October on this, with connection In and/or plan expenditures capital the increase workingcapital. finance and/or outstanding, currently debt refinance the to part offer in this or in whole Notes in Corporate the of sale the from proceeds net the use will Company The Edenor was offered the possibility of acquiring Edenor was appointed by Pampa as the financial statements 165 The loan will be used to finance several investments that the Company intends to make in accordance accordance in with itsbusinessplan. make to intends Company the that investments several agreement finance to used an be will loan into The 5%. entered of rate annual an S.A. at loan term two-year Energía million 5 US$ a Pampa receive will Company and the which to pursuant Company the 2011, 4, March on Additionally, the from authorization obtaining at corresponding controlauthorities. aimed proceedings the initiated has Company the Furthermore, EDELAR 31,178;iii)EDESA131,319.5andiv)EDESAL37,502.5. ii) 80,000; EDEN i) manner: following the in distributed be will 2011, 30, April on mature and 16% of rate annual an at interest carry the which loans, for The allow negotiate. to to position order better a in in them them putting to restructuring, loans of series a granted Company the 2011, 4, March on Therefore, due. subsidiaries their by out taken loans the calling for grounds constitutes companies acquired the of Finally, within the of for of framework the the the transaction shares, acquisition reported change in control public shareholders. said Emdersa’s with commitment of irrevocable an out carrying The authority. control the by was offering by approved the acquisition Board of Company’s on Directors March 4, 2011, and constitutes established period time and manner the in per share, common price Emdersa’s per same 0.49 US$ the i.e. AEIU, to at paid out Company the that carried share common be Emdersa’s will which control, Emdersa’s in change new the required to is it due make offering to acquisition public the out carry to obligation its assumed fully has Company The regulations. Commission’s Securities National the and 677/01 No. Decree of provisions the with accordance in and control company’s that in change the to due shareholders minority Emdersa’s to make must Company the that shares Emdersa’s of acquisition National Securities Commission about the steps to be the followed with regards to the public offering for the consulted formally has Company the that stated hereby is it regulations, current with compliance In the to prior opinion, their acquisition, statingthattheinformedvaluesareadequateandwithinmarket’sparameters. rendered Committee Audit Company’s also the was and shares, Committee Citigroup Audit Emdersa’s Both Company’s for requested. the paid of opinion be The to shares. have AESEBA’s would and shares that Residual price the the of fairness the Board concerning Company’s the Directors, to of opinion fairness a render to (“Citigroup”) Inc. Markets Global Citigroup bank In order to evaluate the the above transaction, described Company engaged the services of the investment financial statements 166 Non-Current Assets Non-Current Assets Current 2 ACCOUNTS (figuresstatedinthousandsofpesosasindicatedNote2tothefinancialstatements) TotalAssets Current Liabilities Current Shareholders’ Equity Shareholders’ Total Liabilities Non-Current Liabilities Shareholders’ Equity Total Liabilitiesand | COMPARATIVE BALANCESHEETSTRUCTURE

12.31.2010 5,031,730 5,031,730 2,108,178 2,108,178 2,923,552 5,031,730 3,877,926 3,877,926 1,153,804 2,137,053 786,499 786,499

12.31.2009 4,370,741 2,182,209 2,188,532 4,370,741 3,677,181 1,428,259 693,560 760,273

587,077 12.31.2008 4,134,630 2,043,064 2,091,566 4,134,630 3,547,553 1,407,480 635,584

1,333,460 12.31.2007 3,847,606 3,847,606 1,873,025 1,974,581 1,974,581 3,847,606 3,351,265 3,351,265 496,341 539,565 539,565

12.31.2006 3,534,663 3,534,663 1,864,313 1,670,350 1,670,350 3,534,663 3,187,196 3,187,196 1,428,712 347,467 347,467 435,601 435,601 financial statements 167 4 for the year the for Net (loss)income

purchases (1) Electric Power income operating Net 3 (1) Therelatedamountsincludetollfees. Income tax Income net income, (expense) Other (losses) gains (expense) andholding Financial income ACCOUNTS (figuresstatedinthousandsofpesosasindicatedNote2tothefinancialstatements) electricity (1) Sales of CONCEPT (NotcoveredbytheIndependentAuditors’Report) before taxes before (Loss) Income | COMPARATIVE INCOMESTRUCTURE | STATISTICAL DATA (INUNITSOFPOWER)

UNIT GWh GWh

12.31.2010 (159,832) (74,031) (75,167) 94,475 94,475 (9,810) 1,136 1,136

12.31.2010 22,053 19,292

12.31.2009 222,925 169,954 (79,311) (76,261) 90,643 23,290 12.31.2009 20,676 18,220

12.31.2008 123,115 302,915 184,289 (61,174) (61,174) (29,825) (88,801) 12.31.2008 20,863 18,616

(124,984) (124,984) 12.31.2007 12.31.2007 (182,755) (182,755) 122,458 429,201 247,442 247,442 20,233 17,886 996

167,182 167,182 (22,944) (22,944) 12.31.2006 12.31.2006 18,700 16,632 293,066 293,066 125,884 125,884 112,922 112,922 35,906 35,906 financial statements 168 6 incomefortheyear Equityexcluding(loss) taxes Shareholders’ before taxes income (Loss)Income Total assets assets Non-current Fixed Total liabilities Solvency Shareholders’Equity Currentliabilities Current Assets 5 become aware of any circumstance that may require the introduction of changes to the plan or may may or plan the to changes of not introduction has the Directors indicate apossibledeviation fromtheestablishedobjectivesanddate. require of may Board that the IFRS, circumstance the any of of aware plan become implementation specific the of monitoring the From concluded. be to about is on impact the of implementation IFRS of diagnosis a Company the producing at aimed process the present, At accordance in approved. duly advanced plan has the with process implementation the statements, financial these of date the of As of issuers the which about 562 No. Resolution concerning financial statementshadraisedobjectionsoraskedforclarification. aspects those of explanation further and to, corrections solutions No. 576 provides on which July 1, the Resolution 2010, CNV Additionally, issued reporting financial international the of adoption the of effects standards. the of assessment the which plan contemplates implementation specific the approved Directors of Board Company’s the 2010, 27, April On the for mandatory to be will required Company asfromthefiscalyearbeginningJanuary1,2012. regulations be such of would application regime The 26. No. offering TR of public have provisions or the such with in 17,811, comply No. included Law being to their that pursuant for notes entities authorization corporate those or requested which stock to capital their according of 562, offering No. public a Resolution make issued CNV the 2009, 29, December On (Not coveredbytheIndependentAuditors’Report) INTERNATIONAL FINANCIALREPORTING STANDARDS RATIOS | PROGRESS TOWARD COMPLIANCEWITHTHEIMPLEMENTATION| PROGRESS PLANOFTHE | RATIOS 12.31.2010 (3.44)% 0.77 0.72 1.47

12.31.2009 8.13% 0.84 1.00 0.91

12.31.2008 9.36% 0.86 1.02 0.92

12.31.2007 13.36% 0.87 1.05 0.92

12.31.2006 9.14% 0.90 0.90 0.80 financial statements 169 7 that during the first electricity rate period different rate structures were in effect. effect. in were structures rate different period rate electricity first the during that the fact despite rate schedule, and an rate electricity structure ENRE in to both order an present electricity the by provided be to were that information accurate and data of lack the to due options the of each for level voltage per requirements revenue the included only it that regulatory stating clearly included considerations, presentation legal and the Finally, stages. semiannual equal three in tariff the to transfer the account into took options three the of each in made calculations of the Furthermore, each options. proposed supports the that equation financial and economic the affect directly could Company the by made proposal the in contemplated parameters and/or occurrence criteria the in actual change the any that on and depends assumptions the of proposals the of sustainability the that out adjustment pointed was rate It electricity criterion. and requirement revenue resulting analysis, rate profitability analysis, costs lowest costs (known as of group the of study with the in of market terms study, consumption to of meet the demand a homogeneous required certain facilities base capital plan, management demand, environmental projected proposal options: campaign, each proposed measurement the which of on each supporting based studies assumptions detailed the the and prepared, introduction, was an included proposal Each effect. in a third and one which ENRE contemplates a the quality regime of and cost of 467/08 undelivered energy No. similar to the one Resolution currently in contemplated proposals included two the presentation proposals; The different three Secretariat. Energy the of 865/08 No. Resolution and Government, the Federal of 1957/06 No. Decree by ratified and UNIREN the and Company the by into entered AGREEMENT ADJUSTMENT requirements the of terms the revenue with of accordance in ENRE, the proposal of 467/08 No. the Resolution both ENRE in required the to submitted Company the 2009, 12, November On February 1,2009. since effect in be to expected was which RTI the from the resulting schedule rate concerning electricity the of issued application been has resolution no statements, financial these of issuance of date the of As Tariff Structure(RTI)willgointoeffectonFebruary 1,2009. No. 434/2007 and establishes that the electricity rate schedule resulting from the Revision of the Company On July 30, 2008, the National Energy Secretariat issued Resolution No. 865/2008 which modifies Resolution electricity rateschedulewouldgointoeffectonFebruary 1,2008. the in published was that Secretariat, Energy National the Tariffof Company 434/2007 the No. of Resolution Revision (RTI), the Structure to regard With Furthermore, taxcollectioncontinuedincreasing,asitoccurredduring2009. during 2009. During 2010, the Argentine economy recorded an increase in growth rates as compared to those recorded (Not coveredbytheIndependentAuditor’sReport) | OUTLOOK “Sistemas Eléctricos Representativos” ), plan, investments contemplated operating on April 30, 2007, established that the new the that established 2007, 30, April on Gazette Official financial statements 170 for the Distribution of Electricity the MMC adjustment requests, in accordance with the following following the with accordance in requests, adjustment MMC the detail: Electricity of Distribution the for Authority Regulatory National to the submitted has the Company the 2010, 31, as to of December Additionally, due submitted been yet not have statements financial these which of proposal, aforementioned reasons. its issuance of of preparation date the the from the of that resulting as requested schedules ENRE rate the 2009, technical 18, the December submit on Company Company the to notified 91,241, No. Note By the which by resolutions the new electricityrateschedulehadgoneintoeffectasfromOctober1,2008. against presentation a made Ombudsman National the 2009, January In affecting user payment capacity, the National Energy Secretariat resolved to suspend the application of application the suspend to resolved Secretariat Energy National the capacity, payment user affecting negatively not of aim the with and winter during consumption electricity of level the considering Therefore, included in the residential category of the electricity rate schedules of the referred to distribution companies. classes social different the of capacity payment the also but period seasonal such in existing situation the the seasonal prices to be paid by the customers of distribution companies should take into account not only that necessary it considered it that stated also Secretariat Energy National the resolution, such supporting reasons the In 2010. 31, October - 1 May period the for (MEM) Market Power Electric Wholesale the for Furthermore,scheduling winter the approved Secretariat Energy National 347/2010, the No. Resolution by Mechanism) increasesnottransferredtothetariff. Monitoring (Cost MMC the cover to order in funds such keep to allowed was Company the to that fact due the is liabilities in increase The liabilities. non-current other in disclosed been have and respectively application of the Program for the Rational Use of Electric Power (PUREE), amount to 529,097 and 233,319 the from deriving funds excess the by generated liabilities 2009 and 2010 31, December of as addition, In costs. operating in recorded increase the to due business the of equation financial and economic the restore to however,pending; still is Electricity order in situation the regularize to taken being are steps necessary the The approval of the aforementioned adjustments by the National Regulatory Authority for the Distribution of AssessmentPeriod May2010-October November 2009-April2010 May2009-October November 2008-April2009 May2008-October November 2007-April2008 Application Date November 2010 November 2009 November 2008 May 2010 May 2009 May 2008 MMC Adjustment 7.103% 5.068% 5.791% 7.240% 5.041% 5.684% financial statements 171 » Furthermore, otherlegalactions havebeenbroughtagainsttheCompany, whicharedetailedbelow: balance ofBondsfortheCancellationDebtsheldbyCompanyamountsto8,743. the 2010 31, December of As Directors. of Board Company’s the and Aires Buenos of Province the of Power debt stated therein in the amount of 32,797. The aforementioned agreement has been ratifiedthe byGovernment the Executive of the Province of Buenos Aires verified and paid with Bonds for theentered into Cancellationa Payment Plan Agreement with the Government of ofthe Province Debts,of Buenos Aires pursuant to the which de Cancelación de Deudas de la Provincia de Buenos Aires) the and their of regulations, 2,789/09 No. in March Decree 2010, and the Company 14,062 No. province of Buenos Aires related to the issuance of bonds for the cancellation of Law debts of such province (Bonos of virtue by and Agreement, Framework the Concerning Authority’s ResolutionNo.433/2009,applicabletoconsumptionrecordedfrommidnightAugust1,2010. approved the values of the Company’s Electricity Rate Schedule included in Appendix IV of such Regulatory which ENRE, the of 421/2010 No. Resolution of notified was Company the 2010, 23, July Furthermore,on 433/2009, applicabletoconsumptionrecordedfrommidnightJune1,2010. Company’s Electricity Rate Schedule included in Appendix I of such Regulatory Authority’s Resolution No. 2010 the Company was notified of Resolution No. 294/2010 of the ENRE, which approved the values of the 21, May on Secretariat, Energy the of 347/2010 No. Resolution aforementioned the of consequence a As in itsResolutionNo.652/2009,whichgaverisetotheissuanceof433/2009ENRE. be pointed out that this situation had already been contemplated by the National Energy Secretariat in 2009 sections 6, 7, and 8 of its Resolution No. 1169/2008 from June 1, 2010 through September 30, 2010. It must responded totheappellant’sbriefs. already IV.has No. Company Matters FederalThe Administrative and Contentious in Appeals of Court the to derived were proceedings the thus Ombudsman, National the by appealed was judgment The Office No.7. The case is pending in National Court in Contentious and Administrative Federal Matters No. 4 - Clerk’s - EPandholdingtheplaintiffliableforcosts”. was entered “rejecting the complaint filed by the National Ombudsman against the Federal Government a third-party defendant. The case is currently on appeal. On September 16, 2010, lower court judgment as summoned been has Company The requested. been has injunction” “prohibitory a of granting The declared unconstitutional. be ENRE the of 102 and No. 51 50, Law Nos. Resolutions 1959/06, of No. Decree 4 - 1957/06 No. section Decree - that 25,790 is action legal this of aim The CLAIM”. A OF DETERMINATION THE FOR PROCEEDINGS OTHERS, AND 25790 LAW GOVERNMENT FEDERAL VS OMBUDSMAN “NATIONAL financial statements 172 » qain f h Cneso Areet n ta te opn, hn neig no h “Adjustment the into entering when Company, the that and Agreement Concession the of equation recognizes that the Federal rather Government had but seriously rates altered the increase balance of to the economic right and Company’s financial the create not does it because effect” “retroactive such the increase),Decree1957/06nothave retroactivity ofdoes (alleged the complaint in at issue question in the to lead would and importance vital of is –which fact this to addition In filed. one the as claims present to Consumidores” y Usuarios de “Unión the of legitimación) de (falta standing of the lack to regard with specifically so That being cases. similar the both by applied Federal Court criteria of Appeals in on Contentious and based Administrative Matters and is the Supreme Court opinion of Justice Such in reversed. court be the will that Company probability the strong against a ruling is there advisors legal Company’s the of opinion the in because amount such estimate to premature is it However,believe harm. we economic significant very a suffer will Company the Court, Appellate the by affirmed is ruling court lower the if that out pointed be must It Appellate CourtinContentiousandAdministrativeFederal MattersNo.Vwillhearthecase. the Jurisdiction, Original of Court written the bases of the appeal to concerning the merits of the submitted case upon which judgment formally had been rendered. Company the 2010, 13, December On higher court. the by resolved is appeal the until out carried be not will ruling court the that means which execution, Federalthe and Company the of petition the upheld of stay a with appeal the granted Governmentand Court the 2010, 2, December On 2010. 25, November on filed was execution of stay a with appeal An Judgment sustainingthecomplaintwasenteredonNovember11,2010. The CompanyansweredthecomplaintonDecember9,2009. d) thatthereimbursementbeimplementedthroughacreditinfavorofcustomers. the periodofNovember1,2005throughJanuary31,2007; c) that of tariffsinfavortheCompany; increase retroactive the authorizes it as inasmuch nullified be ENRE the of 51/07 No. Resolution that b) as itestablishesthatthetariffincreasewillberetroactive; inasmuch revoked, be Agreement Adjustment the of I Appendix of ones related and 4.6 clause that a) The remediessoughtinthecomplaintareasfollow: No. 23,wasservedupontheCompanyonDecember9,2009. Office Clerks’ 12, No. Matters Federal Administrative and Contentious in Jurisdiction Original of Court de Usuarios y Consumidores against the Federal Government and 1957/06 Edenor, which is pending in National DECREE GOVERNMENT OF A CLAIM”. Notice of the complaint filed by the association for the defense of consumer rights Unión FEDERAL VS CONSUMIDORES (RESOLUTION Y 51/07 OF THE USUARIOS ENRE - DE “UNION Edenor be ordered to reimburse customers all the amounts paid as retroactive tariff increase for Edenor) AND OTHERS, PROCEEDINGS FOR THE DETERMINATION rejection of the action– and considering the main the considering and action– the of rejection limine financial statements 173

Buenos Aires,March9,2011 » » occurred betweenDecember20and31,2010,basedonthefollowing: whereby the Regulatory Authority fined the Company in the amount of 1,125 for the power cuts that had On February 9, 2011, the Company was notified of the issuance of Resolution No. 32/2011 of the ENRE, legal advisors,believesthatthereexistsolidargumentstosupportitsposition. its of opinion the and judgment aforementioned the both on based management, Company’s the as claims these with connection in statements financial these in recorded been has accrual no Therefore, restoring -althoughpartiallyandtemporarily- suchbalance. at aimed “TariffRegime”, temporary the apply to right the acquired 2005, September in Agreement” preceding paragraph,havebeenrecordedinNon-current liabilities underOther(Note11). Said penalties amount to approximately 22,374, which, based on that which has been mentioned in the that paymentofthefinedimposedbesuspendeduntilafinal judgmentisissuedonthemaincause. Commercial Procedure, the Company has applied to the and Civil same of Court Code Federalfor the provisional of remedies sections related requesting and 207 section by authorized as that, to Prior void. and null declared be resolution the that obtaining of aim the with Matters, Federal Administrative and Directo” (“Recurso appeal direct a file will Company the 24,065, No. Law of 81 section of framework the within statements, financial these of issuance of date the of As pesos tothosewhosufferedpowercutsthatlastedmorethan48continuoushours. 450 and hours, 48 to hours continuous 24 than more from lasted that cuts power suffered who to those pesos 350 hours, 24 to hours continuous 12 than more from lasted that cuts power suffered who the power cuts in accordance with the following: 180 pesos to each small-demand residential customer by affected been had who customers those compensate to ordered was Company the Furthermore, the fine:375. respectively,by the ENRE, pursuant to the criterion adopted by the regulatory authority). Amount of the of new y) customer demand/demand for increased and power supply, and b) compliance with regulations issued sub-sections – meeting 25 area, concession the within required power electric the all (supply Agreement Concession section from arising obligations the with Non-compliance users, to service respectively, pursuanttothecriterionadopted bytheregulatoryauthority).Amountoffine:750. adequate guarantee to order in electricity facilities of of maintenance availability and demand, and meet supply to guarantee investments, necessary the make levels, quality with accordance in power the electric (provide of 24,065 Law g) of and 27 section f) and Agreement a), Concession sub-sections – 25 section from arising obligations the with Non-compliance ) to the Appellate Court in Contentious in Court Appellate the to ) Alejandro Macfarlane Chairman financial statements 174 Norte Sociedad Anónima (Edenor ) S.A. (hereinafter, We have audited the accompanying balance sheets of Empresa Distribuidora y Comercializadora ) Sociedad Anónima(EdenorS.A. Empresa DistribuidorayComercializadoraNorte To theBoardofDirectorsandShareholders REPORT OFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM Autonomous CityofBuenosAires,March9,2011. the AutonomousCityofBuenosAires. generally accepted in Argentina approved by the Professional Council of Economic Sciences of principles accounting with conformity in ended, then years the for flows cash and operations of position financial the respects, material all fairly,in present above to referred statements financial the opinion, our In opinion. our for basis reasonable a provide audits our that believe We presentation. statement financial accounting the principles used and assessing significant estimates made includes by management, also as well as audit evaluating the overall An statements. financial the in disclosures and material amounts the of supporting evidence basis, free test a are on examining, includes statements audit An misstatement. financial the whether about assurance reasonable obtain to audit the perform and plan we that require standards Those States). (United Board Oversight Accounting Company Public the of standards the with accordance in audits our conducted We on ouraudits. based statements financial these on opinion an express to is responsibility Company’s Our management. the of responsibility the are statements financial These ended. then years the for flows cash of and equity shareholders’ in changes of income, of statements related the 2009, t eebr 1 21 ad 09 n te eut o its of results the and 2009 and 2010 31, December at S.A. Edenor Edenor ) S.A. as of December 31, 2010 and C.P.C.E.Ciudad AutónomadeBuenosAires PRICE WATERHOUSE &COS.R.L. CARLOS MARTÍN BARBAFINA C.P.C.E.C.A.B.A. Tº1-Fº17 Contador PúblicoU.C.A. Tomo 175-Folio 65 Socio financial statements 175 a) that: inform we above, described extent the with conducted, audit. the on Based 2. 1. EMPRESA DISTRIBUIDORAYCOMERCIALIZADORANORTES.A. To theShareholdersof Report Committee’s Supervisory

in force in the City of Buenos Aires; Aires; Buenos of City the in force in standards accounting professional with conformity in ended, then year fiscal the for flows cash and equity shareholders’ its in changes operations, its of results the 2010, 31, December of as position In our opinion, the financial statements of documents. related and other of books accounts the with Company’s are consistent thereat disclosed the figures competence, of field our Argentine of extent 66, the to No. and, 677/01 section No. Decree by and 19,550 required No. Law information Companies’ the includes it that verified have we 2010, 31, December ended year fiscal the for Report Annual Directors’ of Board the regards as Furthermore, within theexclusivecompetenceofBoardDirectorsandShareholders’Meeting. fall they as decisions, operational and marketing financing, administrative, business any assessed not have We made statements. financial the estimates of presentation overall the significant evaluating Company,and and the by used standards accounting the assessing as well as statements, financial the in disclosures the supporting evidence basis, selective a on examining, includes audit assurance reasonable obtain to audit An mistakes. his or significant misstatements of material free are statements performs financial the whether about and plans 2011. auditor 9, the March that dated Price requires report audit review auditors, An limited independent unqualified an Company’s issued who the S.R.L., by Co. & performed Waterhouse audit the on based conducted was review Our aspects. documentary the and to formal concerns decisions as insofar those by-laws of Company’s the and conformity law the and minutes, Meetings’ Shareholders’ and Directors’ of Board in disclosed as decisions, corporate on information remaining the with consistency its and reviewed standards in documents the included information of significant the Such including of reasonability the verification the standards, auditing standards. prevailing the auditing to subject reviewed prevailing be to with statements financial require accordance in conducted was review Our Company’s the are statements C, financial A, the responsibility. of exhibits issue and and 26 preparation to The 1 thereto. notes H and and G ended, E, then D, year fiscal the for flow cash of statement and December 31, 2010, the related statement of income, statement of changes in stockholders´ equity of as “Edenor”) EMPRESA as of to referred sheet (hereinafter S.A. NORTE balance COMERCIALIZADORA Y general DISTRIBUIDORA the reviewed have we Exchange, Stock Aires Buenos the of Argentine the of Rules the 19,550, Regulations the and (“CNV”) Valores) de No. Nacional (Comisión Law Commission Exchange and of Securities 294 section of provisions the with accordance In present fairly, in all material respects, its financial financial its respects, material all in fairly, present Edenor financial statements 176 City ofBuenosAires,March9,2011. The provisionsofsectionNo.294Law19,550havebeendulymet. d) c) b)

Federación ArgentinadeConsejosProfesionalesCienciasEconómicas). Sciences (Federación in Economic Councils the of Professional Federation in by Argentine the issued rules for professional relevant provided financing terrorism and laundering assets on procedures the applied have We the with compliance relevant professionalrules. on statements own auditors’ the considering after auditors, independent the Edenor of policies the auditing of and quality accounting the to relation in mentioning worth is opinion, our in that, matter no report we Rules, c) competence oftheBoardDirectors. exclusive the within fall therein included events future on Statements thereto. objections no have we competence, of field our of extent the to and, Report Annual Directors’ of Board the read have We n codne ih h poiin o ls prgah f eto N. , hpe XI f h CNV the of XXI Chapter 4, No. section of paragraph last of provisions the with accordance In nor to the degree of objectivity and independence of of independence and objectivity of degree the to nor JOSÉ DANIEL ABELOVICH By SupervisoryCommittee Regular Member