Program for Power Factor Improvement

Resolution 85 of the Federal Electricity Regulatory Agency (ENRE), published in the Official Gazette on February 5, 2024, established the Power Factor Improvement Program for the areas awarded to distributors EDESUR and EDENOR.

I.          New power factor limit

As part of this program, ENRE raised the inductive power factor limit in the EDESUR and EDENOR awarded areas from 0.85 to 0.95. Below this limit, users will be subject to penalties.

II.       Measurements

Resolution 85 establishes that the measurement of the power factor and associated variables, as well as the definition of the characteristics of the correction equipment users will install, will be the responsibility of EDESUR and EDENOR in their corresponding awarded areas. The results of the tests will be reported to the users or to the owners’ associations in the case of premises or properties under the condominium or real estate complex regimes.

EDESUR and EDENOR cannot charge for the services of power factor measurement, determination of compensation volumes, notification to users or owners’ associations, or for the corresponding inspections and/or authorizations.

III.         Power factor correction equipment

Resolution 85 establishes that any property under the condominium or real estate complex regimes with a common general connection feeding all co-owners within a small or medium demand tariff category must install in the same property—if it has a value lower than the limit—a  power factor correction equipment that raises the power factor of the joint demand of the property to 0.95.

Resolution 85 also establishes that EDESUR and EDENOR may offer to supply and install power factor correction equipment, as a non-regulated activity. For this, they must carry out national and international bids with open purchase orders for the whole range of equipment to be used. These bids will provide a public-access list of final prices.

IV.      Transition regime

For a period of two years as from the publication of Resolution 85 in the Official Gazette, if the distributor verifies a power factor lower than the limit, the deadline to regularize the installations will be 180 calendar days for Tariff 1 users and 120 calendar days for Tariff 2 and 3 users.