----

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**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Empresa      Distribuidora y Comercializadora Norte S.A.**

| **Distribution                and Marketing Company of the North S.A.** |   | **Argentine                Republic**                          |
|-------------------------------------------------------------------------|--------|----------------------------------------------------------------|
| (Translation                of registrant’s name into English)    |   | (Jurisdiction                of incorporation or organization) |

**Azopardo      1025**

**Ciudad      de Buenos Aires, C1107ADQ**

**Buenos      Aires, Argentina**

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**Securities      registered or to be registered pursuant to Section 12(b) of the      Act:**

| **Title                of each class:**                                                                                                                              |   | **Name                of each exchange on which registered** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|
| Class                B Shares                                                                                                                                        |   | New                York Stock Exchange, Inc.*                |
| American Depositary Shares, or ADSs, evidenced by AmericanDepositary                Receipts, each representing 20 Class B Shares |   | New                York Stock Exchange, Inc.                 |

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**Securities      registered or to be registered pursuant to Section 12(g) of the Act:**
**None**

**Securities      for which there is a reporting obligation pursuant to Section 15(d) of the      Act: **
**N/A**

**Indicate      the number of outstanding shares of each of the issuer’s classes of capital or      common stock as of the close of the period covered by the annual report:      462,292,111 Class A Ordinary Shares, 442,210,385 Class B Ordinary Shares and      1,952,604 Class C Ordinary Shares**

**Indicate      by check mark if the registrant is a well-known seasoned issuer, as defined      in      Rule 405 of the Securities Act. **
**Yes      **
**o**
**      No **
**þ**

**If      this report is an annual or transition report, indicate by check mark if the      registrant is not required to file reports pursuant to Sections 13 or 15(d)      of the Securities Exchange Act of 1934. Yes **
**o**
**      No **
**þ**

**Note:  Checking      the box above will not relieve any registrant required to file reports pursuant      to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their      obligations under those Sections.**

**Indicate      by check mark whether the registrant (1) has filed all reports required to      be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934      during the preceding 12 months (or for such shorter period that the      registrant was required to file such reports) and (2) has been subject to      such filing requirements for the past 90 days. Yes **
**þ**
**      No **
**o**

**Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, or a non-accelerated filer. See definition of “accelerated      filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.      (Check one):**

**Large      accelerated filer **
**o**
**      Accelerated filer **
**o**
**      Non-accelerated filer **
**þ**

**Indicate      by check mark which basis of accounting the registrant has used to prepare      the      financial statements included in this filing: U.S. GAAP **
**o**
**      IFRS **
**o**
**      Other **
**þ**

**If      “Other” has been checked in response to the previous question, indicate by check      mark which financial statement item the registrant has elected to follow:      Item 17 **
**o**
**      Item 18 **
**þ**

**If      this is an annual report, indicate by check mark whether the registrant is      a      shell company (as defined by Rule 12b-2 of the Exchange Act). Yes**
**o**
**      No **
**þ**

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| Item 1.                                   | Identity                  of Directors, Senior Management and Advisors                                         |   | 2   |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------|--------|-----|
| Item 2.                                   | Offer                  Statistics and Expected Timetable                                                       |   | 2   |
| Item 3.                                   | Key                  Information                                                                               |   | 2   |
| Item                  4.                       | Information                  on the Company                                                                    |   | 19  |
| Item 4A.                                  | Unresolved                  Staff Comments                                                                     |   | 44  |
| Item 5.                                   | Operating                  and Financial Review and Prospects                                                  |   | 44  |
| Item 6.                                   | Directors,                  Senior Management and Employees                                                    |   | 81  |
| Item 7.                                   | Major                  Shareholders and Related Party Transactions                                             |   | 88  |
| Item 8.                                   | Financial                  Information                                                                         |   | 92  |
| Item 9.                                   | The                  Offer and Listing                                                                         |   | 95  |
| Item 10.                                  | Additional                  Information                                                                        |   | 97  |
| Item 11.                                  | Quantitative                  and Qualitative Disclosures about Market Risk                                    |   | 117 |
| Item 12.                                  | Description                  of Securities Other than Equity Securities                                        |   | 118 |
| Item 13.                                  | Defaults,                  Dividend Arrearages and Delinquencies                                               |   | 118 |
| Item 14.                                  | Material                  Modifications to the Rights of Security Holders and Use of                  Proceeds |   | 118 |
| Item 15.                                  | Controls                  and Procedures                                                                       |   | 118 |
| Item 16A.                                 | Audit                  Committee Financial Expert                                                              |   | 119 |
| Item 16B.                                 | Code                  of Ethics                                                                                |   | 119 |
| Item 16C.                                 | Principal                  Accountant Fees and Services                                                        |   | 119 |
| Item 16D.                                 | Exemptions                  from the Listing Standards for Audit Committees                                    |   | 120 |
| Item 16E.                                 | Purchases                  of Equity Securities by the Issuer and Affiliated                  Purchasers       |   | 120 |
| Item 17.                                  | Financial                  Statements                                                                          |   | 120 |
| Item 18.                                  | Financial                  Statements                                                                          |   | 120 |
| Item 19.                                  | Exhibits                                                                                                       |   | 120 |
| Index                  to Financial Statements |                                                                                                           | F-1    |

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**PART I**

**Introduction**

*sociedad      anónima*

**Item      1.**
***Identity      of Directors, Senior Management and Advisors***

**Item      2.**
***Offer      Statistics and Expected Timetable***

**Item      3.**
***Key      Information***

**FORWARD-LOOKING      STATEMENTS**

|   | · | the                outcome and timing of the integral tariff revision process we are                currently undertaking with the Argentine National Electricity Regulator                (*Ente                Nacional Regulador de la Electricidad,*                or                the ENRE) and, more generally, uncertainties relating to future government                approvals to increase or adjust our                tariffs; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | general                political, economic, social, demographic and business conditions                in                Argentina and particularly in the geographic market we                serve; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                impact of regulatory reform and changes in the regulatory environment                in                which we operate; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | electricity                shortages; |
|--------|--------|---------------------------------------|

|   | · | potential                disruption or interruption of our                service; |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | restrictions                on the ability to exchange Pesos into foreign currencies or to transfer                funds abroad; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                revocation or amendment of our concession by the granting                authority; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | our                ability to implement our capital expenditure plan, including our                ability                to arrange financing when required and on reasonable                terms; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | fluctuations                in inflation and exchange rates, including a devaluation of the Peso;                and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | additional                matters identified in “Risk                factors.” |
|--------|--------|--------------------------------------------------------------------------------------------|

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**SELECTED      FINANCIAL DATA**

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|                                                                                                                                                                                                                                                                                           |   | **For the year ended December 31,**                                          |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|-------------|
|                                                                                                                                                                                                                                                                                           |   | **2007**                                                                                              |        | **2006** |   | **2005** |   | **2004** |   | **2003** |   |
|                                                                                                                                                                                                                                                                                           |   | **(in millions, except for per share and per ADS data)** |        |
| **Statement                  of operations data****Argentine                  GAAP**                                                                                                                                                                                                           |   |                                                                                                  |        |   |   |   |   |   |   |   |   |   |   |
| Net                  sales(1)                                                                                                                                                                                                                                                                  |   | U.S. $                                                                                           | 629.4       |   | Ps. | 1,981.9 |   | Ps. | 1,378.3 |   | Ps. | 1,262.2 |   | Ps. | 1,107.2 |   | Ps. | 942.9 |   |
| Electric                  power purchases                                                                                                                                                                                                                                                      |   |                                                                                                  | (282.6      | ) |   | (889.9 | ) |   | (799.1 | ) |   | (757.7 | ) |   | (599.1 | ) |   | (439.8 | ) |
| Gross                  margin                                                                                                                                                                                                                                                                  |   |                                                                                                  | 346.8       |   |   | 1,092.0 |   |   | 579.3 |   |   | 504.5 |   |   | 508.1 |   |   | 503.1 |   |
| Transmission                  and distribution expenses                                                                                                                                                                                                                                        |   |                                                                                                  | (132.6      | ) |   | (417.6 | ) |   | (362.1 | ) |   | (346.1 | ) |   | (332.8 | ) |   | (304.5 | ) |
| Selling                  expenses                                                                                                                                                                                                                                                              |   |                                                                                                  | (38.3       | ) |   | (120.6 | ) |   | (87.9 | ) |   | (86.0 | ) |   | (81.8 | ) |   | (71.6 | ) |
| Administrative                  expenses                                                                                                                                                                                                                                                       |   |                                                                                                  | (39.6       | ) |   | (124.7 | ) |   | (93.3 | ) |   | (72.9 | ) |   | (60.7 | ) |   | (59.3 | ) |
| Net                  operating income (loss)                                                                                                                                                                                                                                                   |   |                                                                                                  | 136.3       |   |   | 429.2 |   |   | 35.9 |   |   | (0.4 | ) |   | 32.7 |   |   | 67.7 |   |
| Financial                  income (expenses) and holding gains (losses):                                                                                                                                                                                                                       |   |                                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Generated                  by assets:                                                                                                                                                                                                                                                          |   |                                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exchange                  difference                                                                                                                                                                                                                                                           |   |                                                                                                  | (0.3        | ) |   | (0.9 | ) |   | 2.6 |   |   | 2.1 |   |   | 4.8 |   |   | (6.1 | ) |
| Interest                                                                                                                                                                                                                                                                                       |   |                                                                                                  | 4.3         |   |   | 13.4 |   |   | 13.9 |   |   | 12.9 |   |   | 10.1 |   |   | 14.7 |   |
| Exposure                  to inflation and holding results                                                                                                                                                                                                                                     |   |                                                                                                  | —     |   |   | 0.1 |   |   | 0.1 |   |   | (0.6 | ) |   | (11.0 | ) |   | (2.5 | ) |
| Generated                  by liabilities:                                                                                                                                                                                                                                                     |   |                                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial                  expenses                                                                                                                                                                                                                                                            |   |                                                                                                  | (6.7        | ) |   | (21.0 | ) |   | (25.4 | ) |   | (14.1 | ) |   | (10.1 | ) |   | (9.7 | ) |
| Exchange                  difference                                                                                                                                                                                                                                                           |   |                                                                                                  | (9.5        | ) |   | (29.9 | ) |   | (13.3 | ) |   | (29.0 | ) |   | (26.1 | ) |   | 225.8 |   |
| Interest                                                                                                                                                                                                                                                                                       |   |                                                                                                  | (23.7       | ) |   | (74.5 | ) |   | (101.3 | ) |   | (119.5 | ) |   | (87.7 | ) |   | (79.9 | ) |
| Exposure                  to inflation and holding results                                                                                                                                                                                                                                     |   |                                                                                                  | —     |   |   | — |   |   | — |   |   | (0.2 | ) |   | 9.3 |   |   | 15.1 |   |
| Adjustment                  to present value of the retroactive tariff increase arising from                  the                  application of the new electricity rate schedule and from the Payment                  Plan                  Agreement with the Province of Buenos Aires(2) |   |                                                                                                  | (9.4        | ) |   | (29.6 | ) |   | — |   |   | — |   |   | — |   |   | — |   |
| Gain                  on extinguishment of former debt(3)                                                                                                                                                                                                                                      |   |                                                                                                  | —     |   |   | — |   |   | 179.2 |   |   | — |   |   | — |   |   | — |   |
| Adjustment                  to present value of notes(4)                                                                                                                                                                                                                                       |   |                                                                                                  | (6.8        | ) |   | (21.5 | ) |   | 57.1 |   |   | — |   |   | — |   |   | — |   |
| Loss                  from the purchase and redemption of notes(5)                                                                                                                                                                                                                             |   |                                                                                                  | (3.2        | ) |   | (10.2 | ) |   | — |   |   | — |   |   | — |   |   | — |   |
| Adjustment                  to present value of purchased and redeemed                  notes(4)                                                                                                                                                                                               |   |                                                                                                  | (2.7        | ) |   | (8.6 | ) |   | — |   |   | — |   |   | — |   |   | — |   |
| Other                  income (expenses), net                                                                                                                                                                                                                                                  |   |                                                                                                  | 0.3         |   |   | 1.0 |   |   | (22.9 | ) |   | (0.7 | ) |   | (12.0 | ) |   | (14.3 | ) |
| Income                  (loss) before taxes                                                                                                                                                                                                                                                    |   |                                                                                                  | 78.6        |   |   | 247.4 |   |   | 125.9 |   |   | (149.6 | ) |   | (89.9 | ) |   | 210.7 |   |
| Income                  tax(6)                                                                                                                                                                                                                                                                 |   |                                                                                                  | (39.7       | ) |   | (125.0 | ) |   | 167.2 |   |   | — |   |   | — |   |   | — |   |
| Net                  income (loss)                                                                                                                                                                                                                                                             |   | U.S.                $                                                                                 | 38.9        |   | Ps. | 122.5 |   | Ps. | 293.1 |   | Ps. | (149.6 | ) | Ps. | (89.9 | ) | Ps. | 210.7 |   |
| Net                  income (loss) per ordinary share – basic and diluted                                                                                                                                                                                                                |   |                                                                                                  | 0.043       |   |   | 0.135 |   |   | 0.352 |   |   | (0.180 | ) |   | (0.108 | ) |   | 0.253 |   |
| Dividends                  declared per ordinary share(7)                                                                                                                                                                                                                                      |   |                                                                                                  | —     |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Net                  income per ADS(8)— basic and diluted                                                                                                                                                                                                                                |   |                                                                                                  | 0.858       |   |   | 2.702 |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Number                  of shares outstanding                                                                                                                                                                                                                                                  |   |                                                                                                  | 906,455,100 |   |   | 906,455,100 |   |   | 831,610,200 |   |   | 831,610,200 |   |   | 831,610,200 |   |   | 831,610,200 |   |
|                                                                                                                                                                                                                                                                                           |   |                                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **U.S.                  GAAP**                                                                                                                                                                                                                                                                 |   |                                                                                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  sales/service revenues                                                                                                                                                                                                                                                    |   | U.S.                $                                                                                 | 615.1       |   | Ps. | 1,937.0 |   | Ps. | 1,403.5 |   | Ps. | 1,334.9 |   |   | — |   |   | — |   |
| Electric                  power purchases                                                                                                                                                                                                                                                      |   |                                                                                                  | (282.6      | ) |   | (889.9 | ) |   | (799.1 | ) |   | (757.7 | ) |   | — |   |   | — |   |
| Transmission                  and distribution expenses                                                                                                                                                                                                                                        |   |                                                                                                  | (151.6      | ) |   | (477.5 | ) |   | (450.3 | ) |   | (425.3 | ) |   | — |   |   | — |   |
| Gross                  margin                                                                                                                                                                                                                                                                  |   |                                                                                                  | 180.9       |   |   | 569.6 |   |   | 154.1 |   |   | 151.0 |   |   | — |   |   | — |   |
| Operating                  expenses, net                                                                                                                                                                                                                                                       |   |                                                                                                  | (65.9       | ) |   | (207.5 | ) |   | (194.1 | ) |   | 185.0 |   |   |   |   |   |   |   |
| Net                  operating income (loss)                                                                                                                                                                                                                                                   |   |                                                                                                  | 115.0       |   |   | 362.1 |   |   | 40.0 |   |   | (33.1 | ) |   | — |   |   | — |   |
| Financial                  (expense), net and holding gains                                                                                                                                                                                                                                    |   |                                                                                                  | (14.8       | ) |   | (46.5 | ) |   | (133.3 | ) |   | (139.1 | ) |   | — |   |   | — |   |
| Net                  income (loss) before income taxes                                                                                                                                                                                                                                         |   |                                                                                                  | 100.3       |   |   | 315.7 |   |   | (173.3 | ) |   | (172.1 | ) |   | — |   |   | — |   |
| Income                  tax                                                                                                                                                                                                                                                                    |   |                                                                                                  | (31.7       | ) |   | (99.9 | ) |   | 128.0 |   |   | 8.1 |   |   | — |   |   | — |   |
| Net                  income (loss) for the year                                                                                                                                                                                                                                                |   |                                                                                                  | 68.5        |   |   | 215.8 |   |   | (45.3 | ) |   | (164.0 | ) |   | — |   |   | — |   |
| Net                  income (loss) per ordinary share – basic and                  diluted(7)                                                                                                                                                                                            |   |                                                                                                  | 0.238       |   |   | 0.238 |   |   | (0.054 | ) |   | (0.197 | ) |   | — |   |   | — |   |
| Net                  income (loss) per ADS(8)— basic and diluted                                                                                                                                                                                                                         |   |                                                                                                  | 4.761       |   |   | 4.761 |   |   | — |   |   | — |   |   | — |   |   | — |   |

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| (1) | Net                sales for 2007 include the retroactive portion of the tariff increase,                which amounts in aggregate to Ps. 218.6 million, and is being                invoiced in 55 consecutive monthly installments, starting in February                2007. As of December 31, 2007 we had invoiced Ps. 47.3 million of                this amount. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Reflects                the adjustment to present value of the retroactive portion of the                tariff                increase that is being invoiced in 55 consecutive monthly installments,                starting in February 2007, and the adjustment to present value of                Ps. 38.4                million due under the payment plan agreement with the Province of                Buenos                Aires that is being invoiced in 18 installments, starting in January                2007.                As of December 31, 2007, the Government of the Province of Buenos                Aires                had paid Ps. 18.6 million of the amount due under the payment plan                agreement with the Province of Buenos Aires and Ps. 47.3 million of                the retroactive tariff adjustment had been invoiced to our non-residential                customers. In accordance with Argentine GAAP, we account for these                long-term receivables at their present value, which we calculate                at a                discount rate of 10.5%, and record a charge as an                adjustment to present value of these two receivables. See “Item 4.                Information on the Company —Framework agreement (Shantytowns).” |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (3) | Our                debt restructuring generated a one-time gain of                Ps. 179.2 million, reflecting the recognition of a                Ps. 55.3 million waiver of principal amount on our financial                debt, a Ps. 75 million waiver of accrued interest on our                financial debt and a Ps. 65.7 million waiver of penalties                related to the non-payment of our financial debt, which more than                offset                Ps. 16.8 million in related restructuring costs. See “Item 5.                Operating and Financial Review and Prospects—Liquidity and capital                resources—Debt” for a description of the restructuring                notes. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | We                record our financial debt in our balance sheet at the fair value                reflecting our management’s best estimate of the amounts expected to be                paid at each year end. The fair value is determined as the present                value                of the future cash flows to be paid (including payment of interest)                under                the terms of the debt discounted at a rate commensurate with the                risk of                the debt instrument and time value of money, which, for purposes                of our                financial statements, was calculated using a market interest rate                of 10%                in 2006 and 10.5% in 2007. We did not record any adjustment to present                value in any year before the year ended December 31, 2006 because our                financial debt was in default. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | In                2007, we repurchased U.S. $43.7 million principal amount of our                outstanding Fixed Rate Par Notes due 2016 and U.S. $218 million principal                amount of our outstanding Discount Notes due 2014. We also redeemed                U.S.                $22 million principal amount of our outstanding Discount Notes due                2014.                As of December 31, 2007 we had no Discount Notes due 2014 outstanding. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | In                2006, our income tax result reflects the reversal of net deferred                tax                assets, primarily due to the fact that, as a consequence of the                ratification of the Adjustment Agreement in January 2007 and the                renegotiation of our financial debt in April 2006, we generated                taxable income that allowed us to offset a significant portion of                the tax                loss carryforwards we generated in 2002. We recorded a tax charge                of                Ps. 125.0 million in the year ended December 31, 2007 due to a                significant increase in our taxable income, that was partially offset                by                the tax deduction of ENRE penalties, which allowed us to partially                offset                our tax loss carryforwards generated in 2002. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | We                have not declared or paid any dividends since August 14,                2001. |
|-----|-------------------------------------------------------------------------------------------------|

| (8) | Each                ADS represents 20 Class B ordinary                shares. |
|-----|-------------------------------------------------------------------------------|

----

|                                                              |   | **As of December, 31,** |    |
|-------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                              |   | **2007**                               |    | **2006** |   | **2005** |   | **2004** |   | **2003** |   |
|                                                              |   | **(in millions)**                 |    |
| **Balance sheet data**                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |
| **Argentine                  GAAP**                               |   |                                   |    |   |   |   |   |   |   |   |   |   |   |
| Current                  Assets:                                  |   |                                   |    |   |   |   |   |   |   |   |   |   |   |
| Cash                  and banks                                   |   | U.S. $                            | 1.1     |   | Ps. |  3.5 |   | Ps. | 0.5 |   | Ps. |  11.7 |   | Ps. |  8.5 |   | Ps. | 9.6 |   |
| Investments                                                       |   |                                   | 31.0    |   |   | 97.7 |   |   | 32.2 |   |   | 296.5 |   |   | 242.6 |   |   | 163.8 |   |
| Trade                  receivables                                |   |                                   | 109.9   |   |   | 346.0 |   |   | 270.9 |   |   | 231.9 |   |   | 194.8 |   |   | 181.5 |   |
| Other                  receivables                                |   |                                   | 8.3     |   |   | 26.0 |   |   | 30.2 |   |   | 21.7 |   |   | 10.0 |   |   | 9.0 |   |
| Supplies                                                          |   |                                   | 7.4     |   |   | 23.2 |   |   | 13.6 |   |   | 13.8 |   |   | 13.5 |   |   | 17.5 |   |
| Total                  current assets                             |   | U.S.                $                  | 157.6   |   | Ps. |  496.3 |   | Ps.  | 347.5 |   | Ps.  |  575.6 |   | Ps.  |  469.4 |   | Ps. |  381.4 |   |
| Non-Current                  Assets:                              |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trade                  receivables                                |   |                                   | 31.9    |   |   | 100.3 |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Other                  receivables                                |   |                                   | 45.8    |   |   | 144.1 |   |   | 256.5 |   |   | 74.7 |   |   | 59.3 |   |   | 60.3 |   |
| Investments                  in other companies                   |   |                                   | 0.1     |   |   | 0.4 |   |   | 0.4 |   |   | 0.4 |   |   | 0.4 |   |   | 0.4 |   |
| Supplies                                                          |   |                                   | 4.4     |   |   | 13.8 |   |   | 4.9 |   |   | 36.5 |   |   | 31.4 |   |   | 32.0 |   |
| Property,                  plant and equipment                    |   |                                   | 982.1   |   |   | 3,092.7 |   |   | 2,925.4 |   |   | 2,889.3 |   |   | 2,944.1 |   |   | 2,994.4 |   |
| Total                  non-current assets                         |   |                                   | 1,064.2 |   |   | 3,351.3 |   |   | 3,187.2 |   |   | 3,000.9 |   |   | 3,035.3 |   |   | 3,087.0 |   |
| Total                  assets                                     |   |                                   | 1,221.8 |   |   | 3,847.6 |   | Ps. |  3,534.7 |   | Ps. |  3,576.5 |   | Ps. |  3,504.6 |   | Ps.  | 3,468.4 |   |
| Current                  liabilities:                             |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trade                  account payable                            |   |                                   | 100.4   |   |   | 316.2 |   |   | 267.6 |   |   | 205.1 |   |   | 154.3 |   |   | 104.2 |   |
| Loans                                                             |   |                                   | 9.3     |   |   | 29.3 |   |   | 2.0 |   |   | 1,620.1 |   |   | 1,525.6 |   |   | 1,223.3 |   |
| Salaries                  and social security taxes               |   |                                   | 19.0    |   |   | 59.9 |   |   | 51.4 |   |   | 34.1 |   |   | 31.2 |   |   | 29.6 |   |
| Taxes                                                             |   |                                   | 26.9    |   |   | 84.6 |   |   | 62.2 |   |   | 67.9 |   |   | 44.3 |   |   | 43.5 |   |
| Other                  liabilities                                |   |                                   | 3.1     |   |   | 9.7 |   |   | 26.4 |   |   | 175.8 |   |   | 139.0 |   |   | 85.2 |   |
| Accrued                  litigation                               |   |                                   | 12.7    |   |   | 39.9 |   |   | 25.9 |   |   | 18.3 |   |   | 12.3 |   |   | 9.8 |   |
| Total                  current liabilities                        |   | U.S.                $                  | 171.4   |   | Ps. | 539.6 |   | Ps.  | 435.6 |   | Ps.  |  2,121.3 |   | Ps.  | 1,906.7 |   | Ps.  | 1,495.6 |   |
| Non-current                  liabilities:                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trade                  account payable                            |   |                                   | 11.3    |   |   | 35.5 |   |   | 31.3 |   |   | 26.8 |   |   | 23.1 |   |   | 20.3 |   |
| Loans(1)                                                          |   |                                   | 301.4   |   |   | 949.1 |   |   | 1,095.5 |   |   | — |   |   | — |   |   | 286.0 |   |
| Salaries                  and social security taxes               |   |                                   | 7.8     |   |   | 24.7 |   |   | 20.3 |   |   | 12.4 |   |   | 10.9 |   |   | 10.7 |   |
| Other                  liabilities                                |   |                                   | 89.4    |   |   | 281.4 |   |   | 241.1 |   |   | — |   |   | — |   |   | — |   |
| Accrued                  Litigation                               |   |                                   | 13.6    |   |   | 42.8 |   |   | 40.6 |   |   | 38.7 |   |   | 37.0 |   |   | 38.9 |   |
| Total                  non-current liabilities                    |   |                                   | 423.5   |   |   | 1,333.5 |   |   | 1,428.7 |   |   | 77.8 |   |   | 71.0 |   |   | 355.8 |   |
| Total                  liabilities                                |   | U.S.                $                  | 594.8   |   | Ps. |  1,873.0 |   | Ps.  | 1,864.3 |   | Ps.  | 2,199.2 |   | Ps. | 1,977.7 |   | Ps.  | 1,851.4 |   |
| Shareholders’                  equity                       |   |                                   | 627.1   |   |   | 1,974.6 |   |   | 1,670.4 |   |   | 1,377.3 |   |   | 1,526.9 |   |   | 1,616.8 |   |
| Total                  liabilities and shareholders’ equity |   | U.S.                $                  | 1,221.8 |   | Ps. | 3,847.6 |   | Ps.  | 3,534.7 |   | Ps.  | 3,576.5 |   | Ps.  | 3,504.6 |   | Ps.  | 3,468.4 |   |
|                                                              |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **U.S.                  GAAP**                                    |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                  assets                                   |   | U.S.                $                  | 170.4   |   | Ps. | 536.7 |   | Ps. | 547.0 |   | Ps. | 728.8 |   |   | — |   |   | — |   |
| Property,                  plant and equipment, net               |   |                                   | 1,008.5 |   |   | 3,175.7 |   |   | 3,016.4 |   |   | 3,009.7 |   |   | — |   |   | — |   |
| Other                  non-current assets                         |   |                                   | 110.1   |   |   | 346.6 |   |   | 201.5 |   |   | 145.5 |   |   | — |   |   | — |   |
| Total                  assets                                     |   | U.S.                $                  | 1,289.0 |   | Ps. |  4,059.0 |   | Ps. | 3,764.9 |   | Ps.  | 3,884.0 |   |   | — |   |   | — |   |
| Current                  liabilities                              |   | U.S.                $                  | 182.2   |   |   | Ps.                  573.7 |   |   | Ps.                  470.0 |   |   | Ps.                  2,124.8 |   |   | — |   |   | — |   |
| Non-current                  liabilities                          |   |                                   | 640.9   |   |   | 2,018.2 |   |   | 2,225.1 |   |   | 640.3 |   |   | — |   |   | — |   |
| Total                  liabilities                                |   |                                   | 823.1   |   |   | 2,591.9 |   |   | 2,695.1 |   |   | 2,765.1 |   |   |   |   |   |   |   |
| Shareholders’                  equity                       |   |                                   | 465.9   |   |   | 1,467.1 |   |   | 1,069.8 |   |   | 1,118.8 |   |   | — |   |   | — |   |
| Total                  liabilities and shareholders’ equity |   | U.S.                $                  | 1,289.0 |   | Ps. |  4,059.0 |   | Ps. | 3,764.9 |   | Ps. | 3,884.0 |   |   | — |   |   | — |   |

----

|                                                                                                                                                                                                                                                                            |   | **Year ended December 31,** |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                                                                                                                                                                                                            |   | **2007**                                   |    | **2006** |   | **2005** |   | **2004** |   | **2003** |   |
|                                                                                                                                                                                                                                                                            |   |                                       |    |   |   |   |   |   |   |   |   |   |   |
| **Cash                flow data**                                                                                                                                                                                                                                               |   |                                       |    |   |   |   |   |   |   |   |   |   |   |
| **Argentine                GAAP**                                                                                                                                                                                                                                               |   |                                       |    |   |   |   |   |   |   |   |   |   |   |
| Operating                activities:                                                                                                                                                                                                                                            |   |                                       |    |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                                                                                                                                                                                                                                |   | U.S.$                                      | 38.9    |   | Ps. | 122.5 |   | Ps. | 293.1 |   | Ps. | (149.6 | ) | Ps. | (89.9 | ) | Ps. | 210.7 |   |
| Adjustment                to reconcile net income (loss) to net cash flows provided by (used                in)                operating activities:                                                                                                                            |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                of property, plant and equipment                                                                                                                                                                                                                    |   |                                       | 55.4    |   |   | 174.4 |   |   | 179.0 |   |   | 178.4 |   |   | 174.9 |   |   | 174.7 |   |
| Retirement                of property, plant and equipment                                                                                                                                                                                                                      |   |                                       | 0.4     |   |   | 1.1 |   |   | 0.7 |   |   | 0.9 |   |   | 0.5 |   |   | 1.4 |   |
| Gain                on extinguishment of former debt                                                                                                                                                                                                                            |   |                                       | — |   |   | — |   |   | (179.2 | ) |   | — |   |   | — |   |   | — |   |
| Adjustment                to present value of notes                                                                                                                                                                                                                             |   |                                       | 6.8     |   |   | 21.5 |   |   | (57.1 | ) |   | — |   |   | — |   |   | — |   |
| Loss                from the purchase and redemption of notes                                                                                                                                                                                                                   |   |                                       | 3.2     |   |   | 10.2 |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Adjustment                to present value of the repurchased and redeemed notes                                                                                                                                                                                                |   |                                       | 2.7     |   |   | 8.6 |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Adjustment                to present value of the retroactive tariff increase arising from                the                application of the new electricity rate schedule and of the Payment                Plan                Agreement with the Province of Buenos Aires |   |                                       | 9.4     |   |   | 29.6 |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Gain                from investments in affiliated parties                                                                                                                                                                                                                      |   |                                       | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Exchange                differences, interest and penalties on loans                                                                                                                                                                                                            |   |                                       | 22.1    |   |   | 69.5 |   |   | 49.1 |   |   | 139.0 |   |   | 66.4 |   |   | (171.4 | ) |
| Supplies                recovered from third parties                                                                                                                                                                                                                            |   |                                       | — |   |   | — |   |   | (5.8 | ) |   | — |   |   | — |   |   | — |   |
| Increase                in trade receivables due to the unbilled portion of the retroactive                tariff                increase                                                                                                                                       |   |                                       | (54.4   | ) |   | (171.3 | ) |   | — |   |   | — |   |   | — |   |   | — |   |
| Income                tax                                                                                                                                                                                                                                                       |   |                                       | 39.7    |   |   | 125.0 |   |   | (167.2 | ) |   | — |   |   | — |   |   | — |   |
| Changes                in operating assets and liabilities:                                                                                                                                                                                                                     |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                in trade receivables (net of the unbilled portion of the retroactive                tariff increase)                                                                                                                                                    |   |                                       | (11.7   | ) |   | (36.9 | ) |   | (39.0 | ) |   | (37.1 | ) |   | (13.3 | ) |   | (4.8 | ) |
| Net                (increase) in other receivables                                                                                                                                                                                                                              |   |                                       | (2.7    | ) |   | (8.4 | ) |   | (23.1 | ) |   | (27.2 | ) |   | (9.7 | ) |   | (7.2 | ) |
| (Increase)                decrease in supplies                                                                                                                                                                                                                                  |   |                                       | (5.8    | ) |   | (18.4 | ) |   | 1.4 |   |   | (5.4 | ) |   | 4.6 |   |   | (3.9 | ) |
| Increase                in trade accounts payable                                                                                                                                                                                                                               |   |                                       | 16.7    |   |   | 52.7 |   |   | 67.1 |   |   | 54.4 |   |   | 52.9 |   |   | 11.2 |   |
| Increase                in salaries and social security taxes                                                                                                                                                                                                                   |   |                                       | 4.1     |   |   | 12.9 |   |   | 25.2 |   |   | 4.5 |   |   | 1.8 |   |   | 8.6 |   |
| Increase                (decrease) in taxes                                                                                                                                                                                                                                     |   |                                       | 7.1     |   |   | 22.5 |   |   | (5.7 | ) |   | 23.6 |   |   | (8.9 | ) |   | 7.6 |   |
| Increase                in other liabilities                                                                                                                                                                                                                                    |   |                                       | 5.6     |   |   | 17.7 |   |   | 91.7 |   |   | 36.8 |   |   | 53.7 |   |   | 14.4 |   |
| Net                increase in accrued litigation                                                                                                                                                                                                                               |   |                                       | 5.1     |   |   | 16.2 |   |   | 9.5 |   |   | 7.7 |   |   | 0.7 |   |   | 10.8 |   |
| Financial                interest paid, net of interest capitalized                                                                                                                                                                                                             |   |                                       | (8.1    | ) |   | (25.5 | ) |   | (26.7 | ) |   | (46.5 | ) |   | (55.5 | ) |   | (60.3 | ) |
| Financial                interest collected                                                                                                                                                                                                                                     |   |                                       | 1.0     |   |   | 3.2 |   |   | 2.2 |   |   | 2.0 |   |   | 5.4 |   |   | 5.8 |   |
| Net                cash flow provided by operating activities                                                                                                                                                                                                                   |   |                                       | 135.7   |   |   | 427.2 |   |   | 215.0 |   |   | 181.5 |   |   | 202.8 |   |   | 198.0 |   |
| Investing                activities:                                                                                                                                                                                                                                            |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Addition                to property, plants and equipment                                                                                                                                                                                                                       |   |                                       | (107.0  | ) |   | (336.9 | ) |   | (179.7 | ) |   | (124.5 | ) |   | (125.1 | ) |   | (80.6 | ) |
| Net                cash flow used in investing activities                                                                                                                                                                                                                       |   |                                       | (107.0  | ) |   | (336.9 | ) |   | (179.7 | ) |   | (124.5 | ) |   | (125.1 | ) |   | (80.6 | ) |
| Financing                activities:                                                                                                                                                                                                                                            |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Decrease                in loans                                                                                                                                                                                                                                                |   |                                       | (64.7   | ) |   | (203.6 | ) |   | (310.8 | ) |   | — |   |   | — |   |   | — |   |
| Capital                increase                                                                                                                                                                                                                                                 |   |                                       | 57.7    |   |   | 181.8 |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Net                cash flows used in financing activities                                                                                                                                                                                                                      |   |                                       | (6.9    | ) |   | (21.8 | ) |   | (310.8 | ) |   | — |   |   | — |   |   | — |   |
| Cash                variations:                                                                                                                                                                                                                                                 |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                at beginning of year                                                                                                                                                                                                                                        |   | U.S. $                                | 10.4    |   | Ps. | 32.7 |   | Ps. |  308.1 |   | Ps. | 251.1 |   | Ps. | 173.4 |   | Ps. | 56.5 |   |
| Cash                at end of the year                                                                                                                                                                                                                                          |   |                                       | 32.1    |   |   | 101.2 |   |   | 32.7 |   |   | 308.1 |   |   | 251.1 |   |   | 173.4 |   |
| Net                increase (decrease) in cash                                                                                                                                                                                                                                  |   |                                       | 21.8    |   |   | 68.5 |   |   | (275.5 | ) |   | 57.0 |   |   | 77.8 |   |   | 116.9 |   |

----

|                                         |   | **Year ended December 31,** |    |
|----------------------------------------------|--------|--------------------------------------------|---------|
|                                         |   | **2007**                                   |    | **2006** |   | **2005** |   | **2004** |   | **2003** |   |
| **Operating                  data**     |   |                                       |    |   |   |   |   |   |   |   |   |
| **Argentine                  GAAP**          |   |                                       |    |   |   |   |   |   |   |   |   |
| Energy                  sales (in GWh):      |   |                                       |    |   |   |   |   |   |   |   |   |
| Residential                                  |   |                                       | 7,148   |   |   | 6,250 |   |   | 5,819 |   |   | 5,413 |   |   | 5,150 |   |
| Small                  Commercial            |   |                                       | 1,485   |   |   | 1,433 |   |   | 1,387 |   |   | 1,322 |   |   | 1,192 |   |
| Medium                  Commercial           |   |                                       | 1,552   |   |   | 1,446 |   |   | 1,354 |   |   | 1,293 |   |   | 1,217 |   |
| Industrial                                   |   |                                       | 3,628   |   |   | 3,364 |   |   | 3,195 |   |   | 3,685 |   |   | 2,976 |   |
| Wheeling                  system(1)          |   |                                       | 3,111   |   |   | 3,211 |   |   | 2,984 |   |   | 2,100 |   |   | 2,364 |   |
| Others:                                      |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Public                  Lighting             |   |                                       | 643     |   |   | 650 |   |   | 642 |   |   | 646 |   |   | 637 |   |
| Shantytowns                                  |   |                                       | 301     |   |   | 261 |   |   | 279 |   |   | 275 |   |   | 257 |   |
| Others(2)                                    |   |                                       | 18      |   |   | 18 |   |   | 17 |   |   | 18 |   |   | 18 |   |
| Customers                  (in thousands)(3) |   |                                       | 2,490   |   |   | 2,445 |   |   | 2,404 |   |   | 2,353 |   |   | 2,317 |   |
| Energy                  losses (%)           |   |                                       | 11.6    | % |   | 11.1 | % |   | 11.0 | % |   | 11.5 | % |   | 12.7 | % |
| MWh                  sold by employee        |   |                                       | 7,230.6 |   |   | 6,736.6 |   |   | 6,395.9 |   |   | 5,936.8 |   |   | 5,435.3 |   |
| Customers                  per employee      |   |                                       | 997.8   |   |   | 982.3 |   |   | 970.8 |   |   | 940.7 |   |   | 897.6 |   |

----

| (1) | Wheeling                charges represent our tariffs for large users, which consist of a                fixed                charge for recognized technical losses and a charge for our distribution                margins but exclude charges for electric power purchases, which are                undertaken directly between generators and large                users. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents                energy consumed internally by our company and our                facilities. |
|-----|--------------------------------------------------------------------------------------------------------|

| (3) | We                define a customer as one meter. We may supply more than one consumer                through a single meter. In particular, because we measure our energy                sales                to each shantytown collectively using a single meter, each shantytown                is                counted as a single customer. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**EXCHANGE      RATES**

|                                       |   | **Low**                                    |   | **High** |   | **Average** |   | **Period                End** |   |
|--------------------------------------------|--------|--------------------------------------------|--------|----------|--------|-------------|--------|-------------------------------|--------|
|                                       |   | **(Pesos                per U.S. Dollar)** |   |
| **Year                ended December 31,** |   |                                       |   |     |   |        |   |                          |   |
| 2003                                       |   |                                       | 2.74   |     |   | 3.36        |   |                          | 2.95   | (1) |   | 2.93 |   |
| 2004                                       |   |                                       | 2.94   |     |   | 2.99        |   |                          | 2.95   | (1) |   | 2.98 |   |
| 2005                                       |   |                                       | 2.98   |     |   | 3.04        |   |                          | 3.01   | (1) |   | 3.03 |   |
| 2006                                       |   |                                       | 3.03   |     |   | 3.11        |   |                          | 3.07   | (1) |   | 3.06 |   |
| 2007                                       |   |                                       | 3.06   |     |   | 3.18        |   |                          | 3.12   | (1) |   | 3.15 |   |
|                                       |   |                                       |   |     |   |        |   |                          |   |   |   |   |   |
| **Month**                             |   |                                       |   |     |   |        |   |                          |   |   |   |   |   |
| December                2007               |   |                                       | 3.13   |     |   | 3.15        |   |                          | 3.14   | (2) |   | 3.15 |   |
| January                2008                |   |                                       | 3.13   |     |   | 3.16        |   |                          | 3.15   | (2) |   | 3.16 |   |
| February                2008               |   |                                       | 3.15   |     |   | 3.17        |   |                          | 3.16   | (2) |   | 3.16 |   |
| March                2008                  |   |                                       | 3.15   |     |   | 3.17        |   |                          | 3.16   | (2) |   | 3.17 |   |
| April                2008             |   |                                       | 3.15   |     |   | 3.18        |   |                          | 3.17   | (2) |   | 3.16 |   |
| May                2008                    |   |                                       | 3.16   |     |   | 3.18        |   |                          | 3.17   | (2) |   | 3.17 |   |
| June                2008(3)           |   |                                       | 3.03   |     |   | 3.11        |   |                          | 3.06   | (2) |   | 3.03 |   |

----

*Source*

| (1) | Represents                    the average of the exchange rates on the last day of each month                    during the                    period. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Average                    of the lowest and highest daily rates in the                    month. |
|-----|---------------------------------------------------------------------------------------------------|

| (3) | Represents                    the corresponding exchange rates from June 1 through June                    20. |
|-----|----------------------------------------------------------------------------------------------------------------|

----

**RISK      FACTORS**

**Risks      related to Argentina**

*Overview*

*sociedad      anónima*

*Argentina’s      current growth and stability may not be sustainable*

----

*The      continuing rise in inflation may have adverse effects on the Argentine      economy*

*Instituto      Nacional de Estadísticas y Censos*

*The      methodology used to calculate the consumer price index (CPI), as published      by      the INDEC, has been questioned, as have been other indexes related to the      CPI*

*Argentina’s      ability to obtain financing from international markets is limited, which may      impair its ability to implement reforms and foster economic      growth*

----

*Significant      fluctuations in the value of the Peso against the U.S. Dollar may adversely      affect the Argentine economy*

*Government      measures to address social unrest may adversely affect the Argentine      economy*

*Further      shocks to Argentina’s financial sector could threaten the financial system and      lead to renewed political and social tensions, adversely affecting the Argentine      economy*

----

*The      Argentine economy could be adversely affected by economic developments in other      global markets*

**Risks      relating to the electricity distribution sector**

*The      Argentine government has intervened in the electricity sector in the past,      and      is likely to continue intervening*

*Electricity      distributors were severely affected by the emergency measures adopted during      the      economic crisis, many of which remain in effect*

----

*Electricity      demand may be affected by future tariff increases*

*Energy      shortages may act as a brake on growing demand for electricity and disrupt      distribution companies’ ability to deliver electricity to their customers, which      could result in customer claims and material penalties imposed on these      companies*

**Risks      relating to our business**

*Our      business and prospects depend on our ability to negotiate further improvements      to our tariff structure, including increases in our distribution      margin*

*Revisión      Tarifaria Integral*

----

*We      may not be able to adjust our tariffs to reflect increases in our distribution      costs in a timely manner, or at all, which may have a material adverse effect      on      our results of operations*

*Proceedings      challenging the renegotiation of our concession*

*Asociación      Civil por la Igualdad y la Justicia*
*Consumidores      Libres Cooperativa Limitada de Provisión de Servicios de Acción      Comunitaria*

*We      have been, and may continue to be, subject to fines and penalties that could      have a material adverse effect on our results of operations*

----

*Our      financial difficulties led us to curtail our capital expenditures following      the      economic crisis and we may need to make further investments in our network      to      meet anticipated increases in energy demand*

*If      we      are unable to control our energy losses, our results of operations could be      adversely affected*

*The      Argentine government could foreclose its pledge over our Class A shares      under certain circumstances, which could have a material adverse effect on      our      business and financial condition*

|   | · | the                fines and penalties we incur in any given year exceed 20% of our                gross                energy sales, net of taxes (which corresponds to our energy                sales); |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we                repeatedly and materially breach our concession and do not remedy                these                breaches upon the request of the                ENRE; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                controlling shareholder, EASA, creates any lien or encumbrance over                our                Class A shares (other than the existing pledge in favor of the                Argentine government); |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we                or EASA obstruct the sale of Class A shares at the end of any                management period under our                concession; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | EASA                fails to obtain the ENRE’s approval in connection with the disposition of                our Class A shares; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                shareholders amend our articles of incorporation or voting rights                in a way                that modifies the voting rights of the Class A shares without the                ENRE’s approval; or |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | EASA                does not desist from its ICSID claims against the Argentine government                following completion of the RTI and the approval of a new tariff                regime. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Our      concession may be revoked if we are declared bankrupt, which would have a      material adverse effect on our ability to operate as a going      concern*

*We      employ a largely unionized labor force and could be subject to an organized      labor action*

*We      might incur material labor liabilities in connection with our      outsourcing*

*We      currently are not able to effectively hedge our currency risk and, as a result,      a devaluation of the Peso may have a material adverse effect on our results      of      operations and financial condition*

----

*Our      insurance may not be sufficient to cover certain losses*

*A      substantial number of our assets are not subject to attachment or      foreclosure*

*If      our controlling shareholder fails to meet its debt service obligations, its      creditors may take measures that could have a material adverse effect on*
*our      results of operations*

*Our      exclusive right to distribute electricity may be adversely affected by      technological or other changes in the energy distribution      industry*

----

**Risks      relating to ADSs and our Class B common shares**

*Restrictions      on the movement of capital out of Argentina may impair the ability of holders      of      ADRs to receive dividends and distributions on, and the proceeds of any sale      of,      the Class B common shares underlying the ADSs*

*Our      ability to pay dividends is limited *

*Our      shareholders’ ability to receive cash dividends may be limited*

*Under      Argentine law, shareholder rights may be fewer or less well defined than in      other jurisdictions*

----

*Holders      of ADRs may be unable to exercise voting rights with respect to the Class B      common shares underlying the ADSs at our shareholders’meetings*

*Developments      in other emerging market countries, including Argentina, may adversely affect      the Argentine economy and, therefore, the market price of the Class B common      shares and the ADSs*

*Our      shareholders may be subject to liability for certain votes of their      securities*

**Item 4.**
***Information      on the Company***

----

|   |   | **Demand (GWh)**                       |    |
|--------|--------|---------------------------------------------|---------|
|   |   | **Wholesale Electricity****Market(1)** |    | **Edenor****Demand(2)** |   | **Edenor Demand as a****% of Wholesale****Electricity Market** |   |
| 2007   |   |                                        | 102,950 |   |   | 20,233 |   |   | 19.7 | % |
| 2006   |   |                                        | 97,590  |   |   | 18,700 |   |   | 19.2 | % |
| 2005   |   |                                        | 92,340  |   |   | 17,623 |   |   | 19.1 | % |

*Source:      Compañía Administradora del Mercado Mayorista Eléctrico, S.A. *

| (1) | Includes                  demand in the Patagonia wholesale electricity market (*Mercado                  Eléctrico Mayorista Sistema Patagónico*,                  or MEMSP). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Calculated                as electricity purchased by us and our wheeling system                customers. |
|-----|------------------------------------------------------------------------------------------------------------|

**THE      ARGENTINE ELECTRICITY INDUSTRY**

**Historical      background**

*Dirección      General de Centrales Eléctricas del Estado*
*Agua      y Energía Eléctrica S.A.*

*Compañía      Italo Argentina de Electricidad*
*Compañía      Argentina de Electricidad*
*Servicios      Eléctricos del Gran Buenos Aires*

----

|   | · | converted                public utility tariffs from their original U.S. Dollar values to                Pesos at                a rate of Ps. 1.00 per                U.S. $1.00; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | froze                all regulated distribution margins relating to the provision of public                utility services (including electricity distribution                services); |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | revoked                all price adjustment provisions and inflation indexation mechanisms                in                public utility concessions (including energy concessions);                and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | empowered                the Executive Branch to conduct a renegotiation of public utility                contracts (including energy concessions), including the tariffs for                public                utility services. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Fondo      de Inversiones Necesarias que Permitan Incrementar la Oferta de Energía      Eléctrica en el Mercado Eléctrico Mayorista*

*cargos      específicos*

----

*Secretaría      de Energía*

|   | · | large                users in the wholesale electricity market and large customers of                distribution companies (in both cases above 300 kilowatts), such                as us,                will be authorized to secure energy supply up to their “base demand”                (equal to their demand in 2005) by entering into term contracts;                and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | large                users in the wholesale electricity market and large customers of                distribution companies (in both cases above 300 kilowatts) must satisfy                any consumption in excess of their base demand with energy from the                *Energía                Plus*                (Energy Plus) system at unregulated market prices. The Energy Plus                system                consists of the supply of additional energy generation from new generation                and/or generating agents, co-generators or auto-generators who are                not                agents of the electricity market or who as of the date of the resolution                were not part of the wholesale electricity market. Large users in                the                wholesale electricity market and large customers of distribution                companies                can also enter into contracts directly with these new generators                or                purchase energy at unregulated market prices through                CAMMESA. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Regulatory      authorities**

|   | (1) | the                Secretary of Energy (*Secretaría                de Energía*)                of the Ministry of Federal Planning, Public Investment and Services                (*Ministerio                de Planificación Federal, Inversión Pública y Servicios*),                and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | the                National Electricity Regulator (*Ente                Nacional Regulador de la Electricidad*,                or the ENRE). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | enforcement                of compliance with the Regulatory Framework Law and related                regulations; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | control                of the delivery of electric services and enforcement of compliance                with                the terms of concessions; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | adoption                of rules applicable to generators, transmitters, distributors, electricity                users and other related parties concerning safety, technical procedures,                measurement and billing of electricity consumption, interruption                and                reconnection of supplies, third-party access to real estate used                in the                electricity industry and quality of services                offered; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | prevention                of anticompetitive, monopolistic and discriminatory conduct between                participants in the electricity                industry; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | imposition                of penalties for violations of concessions or other related regulations;                and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | arbitration                of conflicts between electricity sector                participants. |
|--------|--------|-------------------------------------------------------------------------------------------------|

*Consejo      Federal de la Energía Eléctrica*
*Fondo      Subsidiario para Compensaciones Regionales de Tarifas a Usuarios      Finales*

----

**The      wholesale electricity market**

*Overview*

|   | · | a                term market in which generators, distributors and large users enter                into                long-term agreements on quantities, prices and                conditions; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                spot market, in which prices are established on an hourly basis as                a                function of economic production costs, represented by the short-term                marginal cost of production measured at Ezeiza 500 kV substation,                the                system’s load center, and demand;                and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                stabilization fund, managed by CAMMESA, that absorbs the differences                between purchases by distributors at seasonal prices and payments                to                generators for energy sales at the spot                price. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Operation      of the wholesale electricity market*

*Compañía      Administradora del Mercado Mayorista Eléctrico S.A.,*

|   | · | managing                the national interconnection system pursuant to the Regulatory Framework                Law and related regulations, which                includes: |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | determining                technical and economic dispatch of electricity (i.e., schedule of                production for all generating units on a power system to match production                with demand) in the national interconnection                system; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | maximizing                the system’s security and the quality of electricity                supplied; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | minimizing                wholesale prices in the spot                market; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | planning                energy capacity needs and optimizing energy use pursuant to the rules                set                out from time to time by the Secretary of Energy,                and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | monitoring                the operation of the term market and administering the technical                dispatch                of electricity pursuant to any agreements entered into in such                market; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | acting                as agent of the various wholesale electricity market                participants; |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | · | purchasing                or selling electricity from or to other countries by performing the                relevant import/export operations;                and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | providing                consulting and other services related to these                activities. |
|--------|--------|----------------------------------------------------------------------------------------------------|

----

*Wholesale      electricity market participants*

*Generators*

*Asociación      de Generadores de Energía Eléctrica de la República Argentina*

*Transmitters*

*Compañía      de Transporte de Energía Eléctrica en Alta Tensión*

*Asociación      de Transportistas de Energía Eléctrica de la República      Argentina*

*Distributors*

*Asociación      de Distribuidoras de Energía Eléctrica de la República      Argentina,*

----

*Large      users*

*Grandes      Usuarios Mayores*
*Grandes      Usuarios Menores*
*Grandes      Usuarios Particulares,*

*Asociación      de Grandes Usuarios de Energía Eléctrica de la República      Argentina*

*Traders*

*Spot      market*

*Spot      prices*

*Seasonal      Prices*

----

|   | · | prices                charged by CAMMESA to distributors changed only twice per year (in                summer                and winter), with interim quarterly revisions in case of significant                changes in the spot price of energy, despite prices charged by generators                in the wholesale electricity market fluctuating                constantly; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | prices                were determined by CAMMESA based on the average cost of providing                one MWh                of additional energy (its marginal cost), as well as the costs associated                with the failure of the system and several other factors;                and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | CAMMESA                would use seasonal database and optimization models in determining                the                seasonal prices and would consider both anticipated energy supplies                and                demand as follows: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | in                determining supply, CAMMESA would consider energy supplies provided                by                generators based on their expected availability, committed imports                of                electricity and the availability declared by                generators; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | in                determining demand, CAMMESA included the requirements of distributors                and                large users purchasing in the wholesale electricity market as well                as                committed exports. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Stabilization      Fund*

*Term      market*

**HISTORY      AND DEVELOPMENT OF THE COMPANY**

*sociedad      anónima*

----

*Compañía      de Transporte de Energía Eléctrica en Alta Tensión S.A. *

----

**BUSINESS      OVERVIEW**

*Our      strengths*

|   | · | *We                are the largest electricity distributor in Argentina.*We                serve the largest number of electricity customers in Argentina, which                at                December 31, 2007 amounted to 2,490,064 customers. Our electricity                purchases, used to meet customer demand in our service area, accounted                for                approximately 19.7% of total electricity demand in the country in                2007. As                a result of being the largest electricity distributor in Argentina                in                terms of volume and customers, we have strong bargaining power with                respect to many of our operating expenses, including salaries, and                benefit                from economies of scale. We also actively participate in industry                decision-making bodies and are working closely with the Argentine                government to address Argentina’s current energy                challenges. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | *We                distribute electricity to an attractive and diversified client base                in a                highly developed area of Argentina.*We                operate on an exclusive basis in the northwestern zone of the greater                Buenos Aires metropolitan area and the northern portion of the City                of                Buenos Aires, which is one of Argentina’s largest industrial and                commercial centers. We have a highly concentrated, urban client base                characterized by high purchasing power and low delinquency in payments                of                electricity bills (with an average of less than five days of past due                bills outstanding). Our geographically concentrated and urban client                base                also allows us to operate more efficiently with relatively lower                distribution costs. Finally, we have a balanced distribution of clients                (residential, commercial,                industrial). |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | *We                have substantial experience in the operation of electricity distribution                systems with strong operating performance and efficiency for the                characteristics of our concession area.*                We                have substantial experience in the operation of electricity distribution                systems and have received multiple ISO certifications on our commercial,                technical and administrative processes, including on the quality                of our                services and safety and environmental standards. We were declared                by the                ENRE a self-operating business in 1997, which means we are not required                to                have a strategic operator conduct our business and allows us to act                as an                operator in other electricity businesses. We believe that our energy                losses are low compared to other electricity distribution companies                in                Latin America. In addition, we have maintained what we believe are                optimal                levels of operating efficiency, with 997.8 customers per employee                and                7,230.6 MWh sold per employee in                2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | *We                have a well-balanced capital structure.*As                of December 31, 2007, the total principal amount of our financial                debt                amounted to U.S. $312.7 million, with an average life of                approximately nine years. We have continued to strengthen our capital                structure since the 2006 restructuring of our debt, acquiring, as                of                December 31, 2007, U.S. $79.7 million principal amount of                restructuring notes, and refinancing a portion of the restructured                debt                (U.S. $204.0 million principal amount) with the issuance in October                2007 of U.S. $220 million principal amount of 10.5% senior notes due                2017. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | *We                have a stable, committed and seasoned management team.*Our                management team has not changed significantly since 1992, despite                the                changes to and from foreign ownership of our company since our                privatization. In accordance with our concession, we are operating                our                electricity distribution business without the assistance of an external                technical operator. Our new controlling shareholder has maintained                our                management team, and added financial expertise primarily for the                restructuring of our financial debt. We encourage internal promotion                and                provide training and other opportunities for our employees to continue                to                grow with our business. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Our      strategy*

|   | · | *Complete                our tariff renegotiation process*.                Following the increase in our distribution margins charged to our                non-residential customers agreed by the Argentine government in                September 2005 and ratified by the executive branch in                January 2007, our management is currently focused on completing our                integral tariff revision process with the ENRE. Our integral tariff                proposal will include, among other factors, a recalculation of the                compensation we receive for our distribution services based on a                revision                of our asset base and rate of return. For this purpose, we will present                a                post-tax return on our gross asset base, which we estimate was 3.4%                in                2007 without taking into account the retroactive portion of the VAD                increase, which we believe is still extremely low considering our                annual                post-tax return before the economic crisis. Our average annual post-tax                return on our gross asset base from 1997 through 2001 was 9.6%. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | *Continue                to serve our concession area with a high quality of service.*We                aim to continue serving our clients in accordance with the terms                of our                concession, distributing electricity within our area meeting or exceeding                the required quality standards. We intend to continue to dedicate                a                significant portion of our capital expenditures to the maintenance,                enhancement and expansion of our network to achieve this                goal. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | *Undertake                a reclassification of our smaller customers by economic activity                rather                than level of demand to optimize our tariff base*.                We intend to reclassify our client base based on type of economic                activity                and purchasing power rather than only on levels of electricity demand.                We                believe this will allow us to shift clients who currently fall within                our                lowest tariff categories, to other, more appropriate categories,                including                professionals and small businesses which, due to their low demand,                are                currently classified as residential customers, and to charge them                accordingly. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | *Focus                on increasing our operating efficiency and optimizing our level of                energy                losses*.                We are committing significant resources to improving the quality                of our                technical services and the safety of our public infrastructure to                allow us                to reduce the amount of fines imposed by Argentine regulatory authorities                in the ordinary course of our operations. We intend to build new                entry                points for our network in Tigre (previously called Escobar), Province                of                Buenos Aires, and Malaver, City of Buenos Aires, which will significantly                improve the quality and reliability of our network. Currently, our                objective is to maintain energy losses at an optimum level, taking                into                account the marginal cost of reducing such losses and the level at                which,                pursuant to the terms of our concession, we are reimbursed for the                cost of                such losses. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Our      concession*

----

|   | · | a                cost adjustment mechanism (CMM), pursuant to which our distribution                costs                are reviewed semiannually (or, under certain circumstances, more                often)                and adjusted if deemed appropriate by the ENRE to cover increases                in our                distribution costs; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an                obligation to make capital expenditures of approximately                Ps. 204 million for specified projects in 2006, which we                complied with although we were not required to given that the Adjustment                Agreement was not ratified in 2006; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                obligation to meet specified service quality standards more stringent                than                the ones originally contemplated in our                concession; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                restriction on our ability to pay dividends without prior ENRE approval                during the period in which we are conducting the                RTI; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | forgiveness                of approximately one-third of our accrued and unpaid fines, subject                to                certain conditions relating to compliance with our capital expenditures                obligations and service quality standards, and a 7-year payment plan                for                the balance, commencing 180 days after the date on which the RTI                comes into effect; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                obligation to apply a social tariff regime for low-income customers,                which                regime will be defined in the context of the RTI;                and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                obligation to extend our network to provide service to certain rural                areas. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

----

*Geographic      Exclusivity*

| **Operating territory** |   | **Districts**                                                                                                     |
|------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|
| Morón                   |   | Morón,                Ituzaingó, Hurlingham, Merlo, Marcos Paz, Las Heras and La                Matanza |
| Norte                        |   | Ciudad                de Buenos Aires, San Martín and Tres de Febrero                                        |
| Olivos                       |   | Vicente                López, San Isidro, San Fernando, Tigre and Escobar                                    |
| Pilar                        |   | Moreno,                Gral, Rodríguez, Pilar, Malvinas Argentinas, J.C. Paz and San                Miguel   |

| **Operating territory** |   | **Area****(km****2****)** |   | **Customers****(in thousands)** |   | **% of Sales** |   |
|------------------------------|--------|---------------------------|--------|--------------------------------------|--------|--------------------------|--------|
| Morón                   |   |                      | 1,761  |                                 |   | 806.0                    |   |   | 32.4 | % |   | 27.1 | % |
| Norte                        |   |                      | 164    |                                 |   | 779.3                    |   |   | 31.3 | % |   | 28.7 | % |
| Olivos                       |   |                      | 1,624  |                                 |   | 458.6                    |   |   | 18.4 | % |   | 23.4 | % |
| Pilar                        |   |                      | 1,088  |                                 |   | 446.1                    |   |   | 17.9 | % |   | 20.8 | % |
| Total                        |   |                      | 4,637  |                                 |   | 2,490.0                  |   |   | 100 | % |   | 100 | % |

*Our      obligations*

|   | · | the                time required to connect new users; |
|--------|--------|--------------------------------------------------------|

|   | · | voltage                fluctuations; |
|--------|--------|--------------------------------------|

----

|   | · | interruptions                or reductions in service; and |
|--------|--------|------------------------------------------------------------|

|   | · | the                supply of electricity for public lighting and to certain                municipalities. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

*Quality      standards*

| High                voltage                             |   |   | -5.0% to +5.0   | % |
|---------------------------------------------------------|--------|--------|---------------------------|---|
| Overhead                network (medium or low voltage) |   |   | -8.0% to +8.0   | % |
| Buried                network (medium or low voltage)   |   |   | -5.0% to +5.0   | % |
| Rural                                                   |   |   | -10.0% to +10.0 | % |

----

| **Category of user**                        |   | **Frequency of****interruptions****(maximum number of****interruptions per****semester)** |   | **Duration of interruption****(maximum amount of time****per interruption)****(1)** |   |
|-------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------|--------|
| High                voltage                           |   |                                                                                                          | 3      |                                                                                                              |   | 2                hours |   |
| Medium                voltage                         |   |                                                                                                          | 4      |                                                                                                              |   | 3                hours |   |
| Low                voltage: (small and medium demand) |   |                                                                                                          | 6      |                                                                                                              |   | 10                hours |   |
| Large                demand                           |   |                                                                                                          | 6      |                                                                                                              |   | 6                hours |   |

|                                                       |   | **Year ended December 31,** |   |
|------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                       |   | **2007**                                   |   | **2006** |   | **2005** |   | **2004** |   | **2003** |   |
| Average                frequency of interruptions          |   |                                       | 2.78   |   |   | 2.81 |   |   | 3.38 |   |   | 2.63 |   |   | 3.19 |   |
| Average                duration of interruption (in hours) |   |                                       | 6.59   |   |   | 5.01 |   |   | 5.10 |   |   | 4.31 |   |   | 4.70 |   |

*force      majeure*

*Fines      and penalties*

----

*Reserva      de Fondos de Terceros del ENRE*

|                                                                                                                                          |   | **Year                ended December 31,** |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                                                                          |   | **2007**                                   |    | **2006** |   | **2005** |   | **2004** |   | **2003** |   | **2002** |   | **2001** |   | **2000** |   | **1999** |   | **1998** |   |
| Accruals                at beginning of year                                                                                                  |   |                                       | 241,079 |   |   | 169,650 |   |   | 99,277 |   |   | 63,422 |   |   | 49,022 |   |   | 18,955 |   |   | 13,642 |   |   | 17,437 |   |   | 11,038 |   |   | 8,550 |   |
| Plus:                Charged to Results for period                                                                                            |   |                                       | 23,940  |   |   | 25,200 |   |   | 72,736 |   |   | 36,000 |   |   | 14,643 |   |   | 31,661 |   |   | 16,384 |   |   | 13,640 |   |   | 14,754 |   |   | 5,940 |   |
| Quality                of Technical Service                                                                                                   |   |                                       | 6,950   |   |   | 10,390 |   |   | 4,860 |   |   | 4,710 |   |   | 3,241 |   |   | 5,639 |   |   | 5,184 |   |   | 4,002 |   |   | 4,876 |   |   | — |   |
| Quality                of Technical Product                                                                                                   |   |                                       | 910     |   |   | 590 |   |   | 1,110 |   |   | 6,900 |   |   | 6,541 |   |   | 5,533 |   |   | 2,863 |   |   | 2,880 |   |   | 1,832 |   |   | — |   |
| Quality                of Commercial Service                                                                                                  |   |                                       | 1,080   |   |   | 1,210 |   |   | 60 |   |   | 1,170 |   |   | 504 |   |   | 1,504 |   |   | 1,704 |   |   | 874 |   |   | 599 |   |   | — |   |
| Public                Safety                                                                                                                  |   |                                       | 10,290  |   |   | 6,730 |   |   | 25,430 |   |   | 10,850 |   |   | 2,041 |   |   | 4,940 |   |   | 4,219 |   |   | 6,276 |   |   | 2,705 |   |   | — |   |
| Transport                Technical Function                                                                                                   |   |                                       | 230     |   |   | 410 |   |   | 20 |   |   | 183 |   |   | 204 |   |   | 204 |   |   | 85 |   |   | 304 |   |   | 311 |   |   | — |   |
| Reporting                Violations                                                                                                           |   |                                       | 4,400   |   |   | 5,630 |   |   | 33,730 |   |   | 12,187 |   |   | 1,704 |   |   | 4,891 |   |   | 1,874 |   |   | (220 | ) |   | 2,235 |   |   | — |   |
| Others                                                                                                                                        |   |                                       | 80      |   |   | 240 |   |   | 7,526 |   |   | — |   |   | 408 |   |   | 8,950 |   |   | 455 |   |   | (477 | ) |   | 2,196 |   |   | 5,940 |   |
| Less:                Paid during period:                                                                                                      |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Quality                of Technical Service                                                                                                   |   |                                       | 27      |   |   | 8 |   |   | 1,644 |   |   | 5 |   |   | 6 |   |   | 918 |   |   | 3,294 |   |   | 5,572 |   |   | 5,574 |   |   | 484 |   |
| Quality                of Technical Product                                                                                                   |   |                                       | 6       |   |   | 1 |   |   | (4 | ) |   | (55 | ) |   | 4 |   |   | 1 |   |   | 2,303 |   |   | 4,179 |   |   | 963 |   |   | 89 |   |
| Quality                of Commercial Service                                                                                                  |   |                                       | 1,494   |   |   | 373 |   |   | 112 |   |   | 136 |   |   | 103 |   |   | 314 |   |   | 1,443 |   |   | 1,001 |   |   | 486 |   |   | 2,154 |   |
| Public                Safety                                                                                                                  |   |                                       | 4       |   |   | — |   |   | — |   |   | — |   |   | 3 |   |   | 14 |   |   | 2,086 |   |   | 6,119 |   |   | 1,209 |   |   | 202 |   |
| Transport                Technical Function                                                                                                   |   |                                       | 139     |   |   | 349 |   |   | 40 |   |   | — |   |   | 126 |   |   | 347 |   |   | 168 |   |   | 470 |   |   | 123 |   |   | 523 |   |
| Others                                                                                                                                        |   |                                       | 38      |   |   | 12 |   |   | 572 |   |   | 60 |   |   | 1 |   |   | — |   |   | 1,777 |   |   | 94 |   |   | — |   |   | — |   |
| Total                paid during period                                                                                                       |   |                                       | 1,708   |   |   | 743 |   |   | 2,364 |   |   | 146 |   |   | 243 |   |   | 1,594 |   |   | 11,071 |   |   | 17,435 |   |   | 8,355 |   |   | 3,452 |   |
| Plus:                Adjustment to fines and penalties pursuant to the ratification of                the                Adjustment Agreement |   |                                       | 18,084  |  |  | 46,972 |   |  | — |  |   | — |   |  | — |   |   | — |   |  | — |   |  | — |  |  | — |  |  | — |   |
| Accruals                at year-end                                                                                                           |   |                                            | 281,395 |   |   | 241,079 |   |   | 169,650 |   |   | 99,277 |   |   | 63,422 |   |   | 49,022 |   |   | 18,955 |   |   | 13,642 |   |   | 17,437 |   |   | 11,038 |   |

----

*Foreclosure      of pledge over our Class A shares or revocation of our      concession*

|   | · | we                incur penalties in excess of 20% of our gross energy sales, net of                taxes                (which corresponds to our energy sales) in any given                year; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                controlling shareholder, EASA, fails to obtain the ENRE’s approval in                connection with the disposition of our Class A                shares; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | material                and repeated breaches of our concession that are not remedied upon                request                of the ENRE; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | EASA                creates any lien or encumbrances on our Class A shares (other than                the pledge to the Argentine                government); |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | EASA                or Edenor obstruct the sale of the Class A shares at the end of any                management period under our                concession; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                shareholders amend our articles of incorporation or voting rights                in a way                that modifies the voting rights of the Class A shares without the                ENRE’s approval; or |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                shareholders or former shareholders fail to desist from any ICSID                claims                against the Argentine government following completion of the RTI                and the                approval of a new tariff regime. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Periodic      bidding for control of Edenor*

*Default      of the Argentine government*

----

*Our      network*

|                                                                                                 |   | **At                  December 31,** |   |
|------------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                                                 |   | **2007**                             |   | **2006** |   | **2005** |   |
| **Kilometers                  of transmission lines**                                           |   |                                 |   |   |   |   |   |   |   |   |
| High                  voltage                                                                   |   |                                 | 1,338  |   |   | 1,310 |   |   | 1,232 |   |
| Medium                  voltage                                                                 |   |                                 | 8,806  |   |   | 8,719 |   |   | 8,548 |   |
| Low                  voltage                                                                    |   |                                 | 23,910 |   |   | 23,753 |   |   | 23,512 |   |
| Total                                                                                           |   |                                 | 34,054 |   |   | 33,782 |   |   | 33,292 |   |
| **Transformer                  capacity (MVA)**                                                 |   |                                 |   |   |   |   |   |   |   |   |
| High                  voltage/high voltage                                                      |   |                                 | 7,128  |   |   | 7,128 |   |   | 7,128 |   |
| High                  voltage/medium voltage                                                    |   |                                 | 5,866  |   |   | 5,746 |   |   | 5,666 |   |
| Medium                  voltage/low voltage and medium voltage/medium                  voltage  |   |                                 | 5,136  |   |   | 4,950 |   |   | 4,621 |   |
| Total                                                                                           |   |                                 | 18,130 |   |   | 17,824 |   |   | 17,415 |   |

*Sociedad      Anónima Centro de Movimiento de Energía*
*Sistema      Interconectado Nacional*

*Minsterio      de Planificación Federal, Inversión Pública y Servicios *
*Sistema      Argentino de Interconexión*

----

*Systems*

|   | · | A                complete upgrade of our information systems to a new generation of                equipment with new versions of Windows and MS                Office; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                first step of the Nexus-Scada project, which allowed us to connect                all of                our substations to a supervisory control and data acquisition system; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                first step of the implementation of the NEXUS-GIS system, which permits                the association of cartographic information with information on our                database; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An                upgrade of our SAP system to the new MySAP ERP 6.0 version, with                the                implementation of the PS (*Control                de Proyectos*,                or Project Control), BW (Business Warehouse) and TRE (*Tesoreria                Extendida*,                or Extended Treasury), as well as the redefinition of some of our                existing                processes to obtain better standards and solutions; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Changes                within our billing system, which allow us to bill T1 customers for                new                businesses; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                transition to XNet servers, which allow us to improve the performance                and                security of our internet, intranet and electronic mail applications;                and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                implementation of the new Loyal-DMS system, which covers all of the                standards of our company, and the new Loyal-QMS system, which registers                all incidents related with our Quality                System; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                second step of the Nexus-Scada project, which includes the integration                of                the Scada systems with the DMS and allow the registration of AT/MT                operations or processes in real time; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                second step of the implementation of the NEXUS-GIS system, which                includes                the Call Center, Outage Management System (OMS), Quality Service                and                Quality Product, and interfaces with SCADA-DMS; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                installation of a new institutional Web Page, including a new intranet                developed with a new generation of technology;                and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A                complete overhaul of our commercial systems, which we expect will                be                launched in 2008 and be completed by                2010. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Customers*

|   | · | Residential                (T1-R1 and T1-R2): residential customers whose peak capacity demand                is                less than 10kW. In 2007, this category accounted for approximately                40% of                electricity sales. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Small                commercial (T1-G1 and T1-G2): commercial customers whose peak capacity                demand is less than 10kW. In 2007, this category accounted for                approximately 8% of electricity                sales. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Medium                commercial (T2): customers whose peak capacity demand is equal to                or                greater than 10kW but less than 50kW. In 2007, this category accounted                for                approximately 9% of electricity                sales. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Industrial                (T3): industrial customers whose peak capacity demand is equal to                or                greater than 50kW. This category is applied to high-demand customers                according to the voltage at which each customer is connected. The                voltage                ranges included in this category are the following: (i) Low Voltage                (LV): voltage less than or equal to 1 kV; (ii) Medium Voltage (MV):                voltage greater than 1kV but less than 66 kV; and (iii) High Voltage                (HV): voltage equal to or greater than 66kV. In 2007, this category                accounted for approximately 20% of our electricity sales. This category                does not include customers who purchase their electricity requirements                directly through the wholesale electricity market under the wheeling                system. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Wheeling                System: large users who purchase their electricity requirements directly                from generation or broker companies through the wholesale electricity                market. These tariffs follow the same structure as those applied                under the                Industrial category described above. As of December 31, 2007, the                total number of such large users was 569, and in 2007 this category                represented approximately 17% of our electricity                sales. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Others:                public lighting (T1-PL) and shantytown customers whose peak capacity                demand is less than 10kW. In 2007, this category accounted for                approximately 5% of electricity sales. See “—Framework agreement                (Shantytowns).” |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | reporting                by our employees tasked with reading meters to identify observed                commercial activities which are being performed by residential                customers, |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | conducting                internet surveys to identify advertisements for commercial services                (such                as medical or other professional services) that are linked to a                residential customer’s address, and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | analyzing                customer demand to determine whether we should further evaluate the                peak                capacity demand of a given customer whose use might exceed                10kW. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Reading,      billing and collecting*

*Residential      (Tariff 1-R)*

|   | · | Tariff                1-R1: bimonthly energy demand less than or equal to 300                kWh |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | Tariff                1-R2: bimonthly energy demand greater than 300                kWh |
|--------|--------|-----------------------------------------------------------------------------------------|

*Small      commercial (Tariff 1-G)*

|   | · | Tariff                1-G1: bimonthly energy demand less than or equal to 1600                kWh |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | Tariff                1-G2: bimonthly energy demand greater than 1600 kWh but less than                or equal                to 4000 kWh |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Tariff                1-G3: bimonthly energy demand greater than 4000                kWh |
|--------|--------|------------------------------------------------------------------------------------------|

*horas      de valle*

|                             |   | **At December 31,** |      |
|----------------------------------|--------|-------------------------------|-----------|
|                             |   | **2007**                      |      | **2006** |   | **2005** |   | **2004** |   |
| Residential                      |   |                          | 2,162,586 |   |   | 2,118,447 |   |   | 2,084,713 |   |   | 2,038,874 |   |
| Small                commercial  |   |                          | 292,617   |   |   | 293,162 |   |   | 287,567 |   |   | 283,673 |   |
| Medium                commercial |   |                          | 28,676    |   |   | 27,414 |   |   | 26,157 |   |   | 25,064 |   |
| Industrial                       |   |                          | 5,217     |   |   | 5,067 |   |   | 4,615 |   |   | 4,765 |   |
| Wheeling                system   |   |                          | 569       |   |   | 507 |   |   | 704 |   |   | 384 |   |
| Other*                           |   |                          | 399       |   |   | 392 |   |   | 385 |   |   | 368 |   |
| Total                            |   |                          | 2,490,064 |   |   | 2,444,989 |   |   | 2,404,141 |   |   | 2,352,211 |   |

| * | Represents                public lighting and shantytown                customers. |
|---|------------------------------------------------------------------------------------|

----

*Slow-Paying      Accounts and Past Due Receivables*

*Energy      losses*

----

|                                  |   | **Year                  ended December 31,** |   |
|---------------------------------------|--------|----------------------------------------------|--------|
|                                  |   | **2007**                                     |   | **2006** |   | **2005** |   | **2004** |   | **2003** |   | **2002** |   | **2001** |   | **2000** |   | **1999** |   | **1998** |   |
| Technical                  losses     |   |                                         | 9.6    | % |   | 8.6 | % |   | 8.3 | % |   | 8.1 | % |   | 8.0 | % |   | 7.8 | % |   | 7.5 | % |   | 7.3 | % |   | 8.0 | % |   | 7.9 | % |
| Non-technical                  losses |   |                                         | 2.0    | % |   | 2.5 | % |   | 2.7 | % |   | 3.4 | % |   | 4.7 | % |   | 4.5 | % |   | 3.6 | % |   | 2.7 | % |   | 2.2 | % |   | 2.7 | % |
| Total                  losses         |   |                                         | 11.6   | % |   | 11.1 | % |   | 11.0 | % |   | 11.5 | % |   | 12.7 | % |   | 12.3 | % |   | 11.1 | % |   | 10.0 | % |   | 10.1 | % |   | 10.6 | % |

*Framework      agreement (Shantytowns)*

----

** **

*Insurance*

|   | · | sub-stations,                with a deductible of                U.S. $75,000. |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | commercial                offices, with a deductible of U.S. $1,500 for each                office. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | deposits                and other properties (including underground cells and real property                (non                electricity distribution related)), with a deductible of U.S.                $10,000. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | terrorist                acts up to U.S. $10 million, with a deductible of                U.S. $50,000. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

----

*Environmental      management*

*polychlorinated      biphenil*

*Instituto      Argentino de Normalización*

*New      businesses *
*** ***

----

*Seasonality*

**PROPERTY,      PLANT AND EQUIPMENT**

*Revisión      Tarifaria Integral*

**Item      4A.**
**Unresolved      Staff Comments**

**Item      5.**
***Operating      and Financial Review and Prospects***

**OPERATING      RESULTS**

----

**Factors      affecting our results of operations**

|                                        |   | **Year                  ended December 31,** |          |
|---------------------------------------------|--------|----------------------------------------------|---------------|
|                                        |   | **2007**                                     |          | **2006** |   | **2005** |   |
|                                        |   | (in                  millions of Ps. )  |          |
| Energy                  sales (1)      |   | Ps.                                          |  1,972.7 |   | Ps. | 1,372.5 |   | Ps. | 1,311.0 |   |
| Fines                  and penalties   |   |                                         | (23.9         | ) |   | (25.2 | ) |   | (72.7 | ) |
| Net                  energy sales      |   |                                         | 1,948.7       |   |   | 1,347.3 |   |   | 1,238.2 |   |
| Late                  payment charges  |   |                                         | 17.1          |   |   | 12.6 |   |   | 11.6 |   |
| Connection                  charges    |   |                                         | 4.0           |   |   | 2.6 |   |   | 2.6 |   |
| Reconnection                  charges  |   |                                         | 1.4           |   |   | 1.6 |   |   | 1.4 |   |
| Pole                  leases           |   |                                         | 10.7          |   |   | 14.3 |   |   | 8.3 |   |
| **Net                  sales**         |   | **Ps.**                                      | **1,981.9**   |   | **Ps.** | **1,378.3** |   | **Ps.** |  **1,262.2** |   |

|   | (1) | Energy                sales for 2007 include the retroactive portion of the increase in                our                distribution margins, which amounts in aggregate to Ps. 218.6 million                and will be invoiced in 55 consecutive monthly installments. We began                invoicing these installments in February 2007 and, as of December                31,                2007, we had invoiced Ps. 47.3 million of this amount. ** ** |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      |   | **Year                  ended December 31,** |   |
|-------------------------------------------|--------|----------------------------------------------|--------|
|                                      |   | **2007**                                     |   | **2006** |   | **2005** |   | **2004** |   | **2003** |   |
|                                      |   | **(in                  GWh)**                |   |
| Residential                          |   |                                         | 7,148  |   |   | 40 | %  |   | 6,250 |   |   | 38 | %  |   | 5,819 |   |   | 37 | %  |   | 5,413 |   |   | 37 | %  |   | 5,150 |   |   | 37 | % |
| Small                  commercial    |   |                                         | 1,485  |   |   | 8 | % |   | 1,433 |   |   | 9 | % |   | 1,387 |   |   | 9 | % |   | 1,322 |   |   | 9 | % |   | 1,192 |   |   | 9 | % |
| Medium                  commercial   |   |                                         | 1,552  |   |   | 9 | % |   | 1,446 |   |   | 9 | % |   | 1,354 |   |   | 9 | % |   | 1,293 |   |   | 9 | % |   | 1,217 |   |   | 9 | % |
| Industrial                           |   |                                         | 3,628  |   |   | 20 | % |   | 3,364 |   |   | 20 | % |   | 3,195 |   |   | 20 | % |   | 3,685 |   |   | 25 | % |   | 2,976 |   |   | 22 | % |
| Wheeling                  system(1)  |   |                                         | 3,111  |   |   | 17 | % |   | 3,211 |   |   | 19 | % |   | 2,984 |   |   | 19 | % |   | 2,100 |   |   | 14 | % |   | 2,364 |   |   | 17 | % |
| Others:                                   |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Public                  lighting     |   |                                         | 643    |   |   | 4 | % |   | 650 |   |   | 4 | % |   | 642 |   |   | 4 | % |   | 646 |   |   | 4 | % |   | 637 |   |   | 4 | % |
| Shantytowns                          |   |                                         | 311    |   |   | 2 | % |   | 261 |   |   | 2 | % |   | 279 |   |   | 2 | % |   | 275 |   |   | 2 | % |   | 257 |   |   | 2 | % |
| Others(2)                            |   |                                         | 8      |   |   | — |   |   | 18 |   |   | — |   |   | 17 |   |   | — |   |   | 18 |   |   | — |   |   | 18 |   |   | — |   |
| Total                                |   |                                         | 17,886 |   |   | 100 | % |   | 16,632 |   |   | 100 | % |   | 15,677 |   |   | 100 | % |   | 14,752 |   |   | 100 | % |   | 13,811 |   |   | 100 | % |

| (1) | Wheeling                charges represent our tariffs for large users, which consist of a                fixed                charge for recognized technical losses and a charge for our distribution                margins but exclude charges for electric power purchases, which are                undertaken directly between generators and large                users. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents                energy consumed internally by our company and our                facilities. |
|-----|--------------------------------------------------------------------------------------------------------|

|                                      |   | **Year                  ended December 31,** |        |
|-------------------------------------------|--------|----------------------------------------------|-------------|
|                                      |   | **2007****(1)**                              |        | **2006** |   | **2005** |   | **2004** |   | **2003****(2)** |   |
|                                      |   | **(in                  millions of Pesos)**  |        |
| Residential                          |   | Ps.                                          |  488.7 |   |   | 29 | %  | Ps. | 445.4 |   |   | 32 | %  | Ps.  | 421.8 |   |   | 32 | %  | Ps. | 395.7 |   |   | 35 | %  | Ps. | 376.9 |   |   | 40 | % |
| Small                  commercial    |   |                                         | 276.5       |   |   | 16 | % |   | 202.7 |   |   | 15 | % |   | 197.2 |   |   | 15 | % |   | 150.3 |   |   | 13 | % |   | 131.0 |   |   | 14 | % |
| Medium                  commercial   |   |                                         | 288.1       |   |   | 17 | % |   | 216.5 |   |   | 16 | % |   | 204.1 |   |   | 16 | % |   | 159.0 |   |   | 14 | % |   | 131.3 |   |   | 14 | % |
| Industrial                           |   |                                         | 481.9       |   |   | 28 | % |   | 376.8 |   |   | 27 | % |   | 358.6 |   |   | 27 | % |   | 325.4 |   |   | 29 | % |   | 200.8 |   |   | 22 | % |
| Wheeling                  system(3)  |   |                                         | 84.9        |   |   | 5 | % |   | 60.7 |   |   | 4 | % |   | 57.1 |   |   | 4 | % |   | 35.4 |   |   | 3 | % |   | 39.5 |   |   | 4 | % |
| Others:                                   |   |                                         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Public                  lighting     |   |                                         | 55.2        |   |   | 3 | % |   | 46.9 |   |   | 4 | % |   | 46.3 |   |   | 4 | % |   | 42.0 |   |   | 4 | % |   | 39.5 |   |   | 4 | % |
| Shantytowns                  and others   |   |                                         | 29.1        |   |   | 2 | % |   | 23.6 |   |   | 2 | % |   | 26.0 |   |   | 2 | % |   | 13.1 |   |   | 1 | % |   | 13.1 |   |   | 1 | % |
| Total                                |   |                                         | 1,704.4     |   |   | 100 | % | Ps.  | 1,372.5 |   |   | 100 | % | Ps.  | 1,311.0 |   |   | 100 | % | Ps.  | 1,120.9 |   |   | 100 | % | Ps. | 932.1 |   |   | 100 | % |

| (1) | Does                not include the retroactive portion (Ps. 218.6 million ) of our                tariff increase, Ps. 47.3 million of which we have invoiced as of                December 31, 2007, and the CMM adjustment for the period May 2006                - April                2007, applicable as of May 1, 2007 and collected through PUREE funds,                for                a total amount of Ps. 49.6                million. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Does                not include any adjustment for                inflation. |
|-----|------------------------------------------------------------------------------|

| (3) | Wheeling                charges represent our tariffs for large users, which consist of a                fixed                charge for recognized energy losses and a charge for our distribution                margins but exclude charges for electric power purchases, which are                undertaken directly between generators and large                users. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Argentine      Economic Conditions and Inflation***

----

|                                                                    |   | **Year                ended December 31,**  |    |
|-------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                    |   | **2007**                                         |    | **2006** |   | **2005** |   | **2004** |   | **2003** |   |
| Real                GDP (% change)                                      |   |                                             | 8.7     |   |   | 8.5 |   |   | 9.2 |   |   | 9.0 |   |   | 8.8 |   |
| Nominal                GDP (in millions of Pesos)                       |   |                                             | 812,072 |   |   | 654,413 |   |   | 532,268 |   |   | 447,643 |   |   | 375,909 |   |
| Real                Consumption (% change)                              |   |                                             | 8.7     |   |   | 7.3 |   |   | 8.5 |   |   | 8.3 |   |   | 7.0 |   |
| Real                Investment (% change)                               |   |                                             | 14.4    |   |   | 18.7 |   |   | 22.7 |   |   | 34.4 |   |   | 38.2 |   |
| Industrial                Production (% change)                         |   |                                             | 7.5     |   |   | 8.3 |   |   | 7.7 |   |   | 10.6 |   |   | 16.3 |   |
| Consumer                Price Index                                     |   |                                             | 8.5     |   |   | 9.8 |   |   | 12.3 |   |   | 6.1 |   |   | 3.7 |   |
| Nominal                Exchange Rate (in Ps. /U.S.$ at period end) |   |                                             | 3.16    |   |   | 3.06 |   |   | 3.04 |   |   | 2.98 |   |   | 2.93 |   |
| Exports                (in millions of U.S.$)                           |   |                                             | 55,933  |   |   | 46,569 |   |   | 40,013 |   |   | 34,550 |   |   | 29,939 |   |
| Imports                (in millions of U.S.$)                           |   |                                             | 44,780  |   |   | 34,159 |   |   | 28,692 |   |   | 22,445 |   |   | 13,851 |   |
| Trade                Balance (in millions of U.S.$)                     |   |                                             | 11,153  |   |   | 12,410 |   |   | 11,321 |   |   | 12,105 |   |   | 16,088 |   |
| Current                Account (% of GDP)                               |   |                                             | 2.8     |   |   | 3.8 |   |   | 3.0 |   |   | 2.2 |   |   | 6.3 |   |
| Reserves                (in millions of U.S.$)                          |   |                                             | 46,176  |   |   | 32,037 |   |   | 28,077 |   |   | 19,650 |   |   | 14,120 |   |
| Tax                Collection (in millions of Pesos)                    |   |                                             | 199,781 |   |   | 150,008 |   |   | 119,252 |   |   | 98,285 |   |   | 72,275 |   |
| Primary                Surplus (in millions of Pesos)                   |   |                                             | 25,719  |   |   | 23,156 |   |   | 19,661 |   |   | 17,360 |   |   | 8,688 |   |
| Public                Debt (% of GDP at December 31)                    |   |                                             | 56.0    |   |   | 76.4 |   |   | 70.7 |   |   | 125.7 |   |   | 140.3 |   |
| Public                Debt Service (% of GDP)                           |   |                                             | 5.4     |   |   | 5.1 |   |   | 5.4 |   |   | 5.8 |   |   | 3.2 |   |
| External                Debt (% of GDP at December 31)                  |   |                                             | 47.6    |   |   | 51.3 |   |   | 64.4 |   |   | 112.4 |   |   | 129.5 |   |

*Sources:*

*Economic      crisis*

*de      facto*

----

*Banco      de la Nación Argentina*

|   | · | converted                public utility tariffs from their original U.S. Dollar values to                Pesos at                a rate of Ps. 1.00 per                U.S. $1.00; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | froze                all regulated distribution margins relating to the provision of public                utility services (including electricity distribution                services); |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | revoked                all price adjustment provisions and inflation indexation mechanisms                in                public utility concessions (including our concession);                and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | empowered                the Executive Branch to conduct a renegotiation of public utility                contracts (including our concession) and the tariffs set therein                (including our tariffs). |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Economic      recovery*

----

*Restructuring      of External Debt*

*Consolidation      of Economic Recovery*

|   | · | *The                economy has been recovering strongly since the economic                crisis*:                According to data published by INDEC, the Argentine economy reached                a low                in the second quarter of 2002 and has been growing rapidly since,                with                8.8% growth in 2003, 9.0% in 2004, 9.2% in 2005, 8.5% in 2006 and                8.7% in                2007, led by domestic demand and exports. From a demand perspective,                private sector spending was accompanied by a combination of liberal                monetary and conservative fiscal policies. Growth in spending, however,                has consistently exceeded the rate of increase in revenue and nominal                GDP                growth. From a supply perspective, the trade sector has benefited                from a                depressed real exchange rate, which was supported by the intervention                of                the Central Bank in the foreign exchange market. Real exports have                improved, in part due to growth in Brazil, and the current account                has                improved significantly, registering surpluses in 2004, 2005, 2006                and                2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | *Fiscal                policy has improved substantially in the last six years*:                The consolidated public sector primary surplus has improved by 4.4%                of GDP                since 2001, from a deficit of 0.9% in 2001 to a surplus of 3.5% in                2007,                driven mainly by greater public revenues and cautious public spending                according to INDEC. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | *Monetary                policy has remained expansionary*:                Real interest rates have remained negative since 2005, which has                led to                increased domestic spending. The real exchange rate has been stabilized                by                the Central Bank through U.S. Dollar purchases in the foreign exchange                market. According to data published by INDEC, inflation was 12.3%                in 2005,                9.8% in 2006 and 8.5% in 2007. The decreases in the rate of inflation                in                2006 and 2007 were mainly due to a regime of price support arrangements                implemented by the Argentine government. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | *Argentina’s                risk profile has improved considerably*:                According to Reuters, based on the U.S. Dollar-denominated BODEN                2012 bond                spread over the comparable U.S. treasury note, Argentina’s country risk                premium decreased from 4,765 basis points as of December 31, 2004 to                471 basis points as of December 31, 2005, decreased to 235 basis                points as of December 31, 2006. On January 3, 2007, Argentina’s risk                premium reached its lowest point, decreasing to 189 basis points.                As of                December 27, 2007, however, Argentina’s country risk premium had increased                to 629 basis points. Argentina’s risk premium was 862 basis points as of                June 20, 2008. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Tariffs***

|   | · | the                cost of electric power purchases, which we pass on to our customers,                and a                fixed charge (which varies depending on the category and level of                consumption of each customer and their energy purchase prices) to                cover a                portion of our energy losses in our distribution activities (determined                by                reference to a fixed percentage of energy and power capacity for                each                respective voltage level set forth in our                concession); |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                regulated distribution margin, which is known as the value-added                for                distribution, or VAD; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | any                taxes imposed by the Province of Buenos Aires or the City of Buenos                Aires,                which may differ in each                jurisdiction. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Recognition      of cost of electric power purchases*

* *
*Fondo      Nacional de Energía Eléctrica*

----

*Recognition      of cost of energy losses*

*plan      de disciplina del mercado*

|                                |   | **Year                ended December 31,** |   |
|-------------------------------------|--------|--------------------------------------------|--------|
|                                |   | **2007**                                   |   | **2006** |   | **2005** |   |
| Technical                losses     |   |                                       | 9.6    | %  |   | 8.6 | %  |   | 8.3 | % |
| Non-technical                losses |   |                                       | 2.0    | % |   | 2.5 | % |   | 2.7 | % |
| Total                losses         |   |                                       | 11.6   | % |   | 11.1 | % |   | 11.0 | % |

----

*Distribution      margin or value-added for distribution (VAD)*

*Historical      Overview of VAD. *

*Adjustment      Agreement. *
*Acta      Acuerdo sobre la Adecuación del Contrato de Concesión del Servicio Público de      Distribución y Comercialización de Energía Eléctrica*

----

----

|                                         |   | **VAD**              |   | **Average                Taxes** |   | **Electric                Power Purchases** |   |
|----------------------------------------------|--------|----------------------|--------|----------------------------------|--------|---------------------------------------------|--------|
| **Tariff****(1)**                            |   | **November****2001** |   | **January****2005**              |   | **February****2007****(2)**                 |   | **November****2001** |   | **January****2005** |   | **February****2007****(2)** |   | **November****2001** |   | **January****2005** |   | **February****2007****(2)** |   |
| Residential:                                 |   |                 |   |                             |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| T1R1                                         |   |                 | 49.4   | %                                |   | 44.5                                        | %      |   | 44.5 | % |   | 28.7 | % |   | 28.7 | % |   | 28.7 | % |   | 21.9 | % |   | 26.8 | % |   | 26.8 | % |
| T1R2                                         |   |                 | 36.2   | %                                |   | 33.0                                        | %      |   | 33.0 | % |   | 29.2 | % |   | 29.2 | % |   | 29.2 | % |   | 34.6 | % |   | 37.8 | % |   | 37.8 | % |
| Small                Commercial:             |   |                 |   |                             |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| T1G1                                         |   |                 | 55.1   | %                                |   | 40.0                                        | %      |   | 47.8 | % |   | 25.7 | % |   | 25.7 | % |   | 25.7 | % |   | 19.2 | % |   | 34.3 | % |   | 26.5 | % |
| T1G2                                         |   |                 | 53.6   | %                                |   | 31.1                                        | %      |   | 43.6 | % |   | 25.6 | % |   | 25.6 | % |   | 25.6 | % |   | 20.7 | % |   | 43.2 | % |   | 30.7 | % |
| Medium                Commercial (T2)        |   |                 | 43.3   | %                                |   | 27.9                                        | %      |   | 35.5 | % |   | 25.6 | % |   | 25.6 | % |   | 25.6 | % |   | 31.0 | % |   | 46.4 | % |   | 38.9 | % |
| Industrial:                                  |   |                 |   |                             |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| T3                low tension below 300kw    |   |                 | 44.2   | %                                |   | 26.5                                        | %      |   | 34.3 | % |   | 25.7 | % |   | 25.7 | % |   | 25.7 | % |   | 30.1 | % |   | 47.8 | % |   | 40.1 | % |
| T3                low tension above 300kw    |   |                 | 42.6   | %                                |   | 24.5                                        | %      |   | 32.1 | % |   | 25.6 | % |   | 25.6 | % |   | 25.6 | % |   | 31.8 | % |   | 49.9 | % |   | 42.3 | % |
| T3                medium tension below 300kw |   |                 | 29.3   | %                                |   | 14.1                                        | %      |   | 19.7 | % |   | 25.7 | % |   | 25.7 | % |   | 25.7 | % |   | 45.0 | % |   | 60.3 | % |   | 54.6 | % |
| T3                medium tension above 300kw |   |                 | 27.3   | %                                |   | 12.3                                        | %      |   | 17.5 | % |   | 25.7 | % |   | 25.7 | % |   | 25.7 | % |   | 47.0 | % |   | 62.0 | % |   | 56.8 | % |
| Average                tariff                |   |                 | 41.2   | %                                |   | 28.5                                        | %      |   | 33.9 | % |   | 27.2 | % |   | 27.2 | % |   | 27.2 | % |   | 31.5 | % |   | 44.2 | % |   | 38.9 | % |

| (1) | T1R1                refers to residential customers whose peak capacity demand is less                than 10                kW and whose bimonthly energy demand is less than or equal to 300                kWh.                T1R2 refers to residential customers whose peak capacity demand is                less                than 10 kW and whose bimonthly energy demand is greater than 300                kWh. T1G1                refers to commercial customers whose peak capacity demand is less                than                10kW and whose bimonthly energy demand is less than or equal to 1600                kWh.                T1G2 refers to commercial customers whose peak capacity demand is                less                than 10 kW and whose bimonthly energy demand is greater than 1600                kWh. T2                refers to commercial customers whose peak capacity demand is greater                than                10 kW but less than 50 KW. T3 refers to customers whose peak capacity                demand is equal to or greater than 50 kW. The T3 category is applied                to                high-demand customers according to the voltage (tension) at which                each                customer is connected. Low tension is defined as voltage less than                or                equal to 1 kV and medium tension is defined as voltage greater than                1kV                but less than 66 kV. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes                the effect of the increase in VAD to our non-residential customers                pursuant to the Adjustment Agreement, as adjusted by the May 2006                CMM, but excludes the amount of the retroactive portion of the increase                for the period from November 2005 through                January 2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Integral      Tariff Revision*
*Revisión      Tarifaria Integral*

----

*Social      Tariff Regime. *

***Demand***

*Electricity      demand*

----

| **Year** |   | **Electricity                Demand****(1)** |    | **Edenor                Demand****(2)** |   | **Edenor’s                Demand****as                a % of Total Demand** |   |
|----------|--------|----------------------------------------------|---------|-----------------------------------------|--------|-----------------------------------------------------------------------------------|--------|
|     |   | **(in                GWh)**                  |    |
| 1994     |   |                                         | 55,827  |                                    |   | 11,386                                                                            |   |   | 20.4 | % |
| 1995     |   |                                         | 57,839  |                                    |   | 11,629                                                                            |   |   | 20.1 | % |
| 1996     |   |                                         | 61,513  |                                    |   | 12,390                                                                            |   |   | 20.1 | % |
| 1997     |   |                                         | 66,029  |                                    |   | 13,046                                                                            |   |   | 19.8 | % |
| 1998     |   |                                         | 69,103  |                                    |   | 13,768                                                                            |   |   | 19.9 | % |
| 1999     |   |                                         | 71,689  |                                    |   | 14,447                                                                            |   |   | 20.2 | % |
| 2000     |   |                                         | 75,591  |                                    |   | 15,148                                                                            |   |   | 20.0 | % |
| 2001     |   |                                         | 78,098  |                                    |   | 15,414                                                                            |   |   | 19.7 | % |
| 2002     |   |                                         | 76,483  |                                    |   | 14,865                                                                            |   |   | 19.4 | % |
| 2003     |   |                                         | 82,261  |                                    |   | 15,811                                                                            |   |   | 19.2 | % |
| 2004     |   |                                         | 87,477  |                                    |   | 16,673                                                                            |   |   | 19.1 | % |
| 2005     |   |                                         | 92,340  |                                    |   | 17,623                                                                            |   |   | 19.1 | % |
| 2006     |   |                                         | 97,590  |                                    |   | 18,700                                                                            |   |   | 19.2 | % |
| 2007     |   |                                         | 102,950 |                                    |   | 20,233                                                                            |   |   | 19.7 | % |

*Source:      Compañía Administradora del Mercado Mayorista Eléctrico, S.A. *

| (1) | Includes                demand in the Patagonia wholesale electricity market (*Mercado                Eléctrico Mayorista Sistema Patagónico*,                or MEMSP). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Calculated                as electricity purchased by us and our wheeling system                customers. |
|-----|------------------------------------------------------------------------------------------------------------|

|     |   | **Argentina**  |       | **City of Buenos Aires** |   | **Greater Buenos Aires** |    | **Edenor**                              |      |
|----------|--------|----------------|------------|-----------------------------------------|--------|------------------------------------|---------|-----------------------------------------|-----------|
| **Year** |   | **Population** |       | **% change****(previous****year)** |   | **Population**                     |    | **% change****(previous****year)** |      | **Population** |   | **% change****(previous****year)** |   | **Customers** |   | **% change****(previous****year)** |   |
| 1994     |   |           | 33,668,665 |                                    |   | —                            |    |                                    | 2,908,769 |   |   | — |   |   | 8,216,105 |   |   | — |   |   | 2,083,126 |   |   | — |   |
| 1995     |   |           | 34,047,214 |                                    |   | 1.12                               | %  |                                    | 2,889,854 |   |   | (0.65 | )%  |   | 8,293,743 |   |   | 0.94 | %  |   | 2,089,060 |   |   | 0.28 | % |
| 1996     |   |           | 34,399,581 |                                    |   | 1.03                               |    |                                    | 2,870,924 |   |   | (0.66 | ) |   | 8,371,714 |   |   | 0.94 |   |   | 2,139,451 |   |   | 2.41 |   |
| 1997     |   |           | 34,745,807 |                                    |   | 1.01                               |    |                                    | 2,851,982 |   |   | (0.66 | ) |   | 8,450,013 |   |   | 0.94 |   |   | 2,189,652 |   |   | 2.35 |   |
| 1998     |   |           | 35,135,933 |                                    |   | 1.12                               |    |                                    | 2,833,030 |   |   | (0.66 | ) |   | 8,528,639 |   |   | 0.93 |   |   | 2,206,467 |   |   | 0.77 |   |
| 1999     |   |           | 35,500,001 |                                    |   | 1.04                               |    |                                    | 2,814,070 |   |   | (0.67 | ) |   | 8,607,589 |   |   | 0.93 |   |   | 2,240,300 |   |   | 1.53 |   |
| 2000     |   |           | 35,878,053 |                                    |   | 1.06                               |    |                                    | 2,795,106 |   |   | (0.67 | ) |   | 8,656,859 |   |   | 0.57 |   |   | 2,259,285 |   |   | 0.85 |   |
| 2001     |   |           | 36,260,130 |                                    |   | 1.06                               |    |                                    | 2,776,138 |   |   | (0.68 | ) |   | 8,684,438 |   |   | 0.32 |   |   | 2,266,164 |   |   | 0.30 |   |
| 2002     |   |           | 36,616,276 |                                    |   | 0.98                               |    |                                    | 2,757,170 |   |   | (0.68 | ) |   | 8,846,348 |   |   | 1.86 |   |   | 2,250,454 |   |   | (0.69 | ) |
| 2003     |   |           | 37,036,535 |                                    |   | 1.15                               |    |                                    | 2,738,203 |   |   | (0.69 | ) |   | 8,926,561 |   |   | 0.91 |   |   | 2,317,157 |   |   | 2.96 |   |
| 2004     |   |           | 37,430,949 |                                    |   | 1.06                               |    |                                    | 2,719,240 |   |   | (0.69 | ) |   | 9,007,080 |   |   | 0.90 |   |   | 2,353,211 |   |   | 1.56 |   |
| 2005     |   |           | 37,809,002 |                                    |   | 1.01                               |    |                                    | 2,730,870 |   |   | 0.43 |   |   | 9,069,530 |   |   | 0.69 |   |   | 2,404,141 |   |   | 2.16 |   |
| 2006     |   |           | 38,209,777 |                                    |   | 1.06                               |    |                                    | 2,715,304 |   |   | (0.57 | ) |   | 9,151,156 |   |   | 0.90 |   |   | 2,444,989 |   |   | 1.70 |   |
| 2007     |   |           | 38,614,801 |                                    |   | 1.06                               |    |                                    | 2,716,024 |   |   | 0.03 |   |   | 9,224,365 |   |   | 0.80 |   |   | 2,490,064 |   |   | 1.84 |   |

*Source:      Fundación Norte y Sur*

----

----

*Capacity      demand*

*Central      Puerto*
*Central      Costanera*
*Malaver*
*Central      Puerto*
*Central      Costanera*
*Malaver*
*Malaver*

*Seasonality      of Demand*

----

----

***Taxes      on electricity tariffs***

----

***Framework      agreement (Shantytowns)***

***Operating      Expenses***

*i.e.*

----

**Summary      Historical Results of Operations**

|                                                                                                                                                                                                                                                                              |   | **Year                ended December 31,** |          |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------------|
|                                                                                                                                                                                                                                                                              |   | **2007**                                   |          | **2006** |   | **2005** |   |
|                                                                                                                                                                                                                                                                              |   | **(in                millions of pesos)**  |          |
| Net                sales                                                                                                                                                                                                                                                          |   | Ps.                                        |  1,981.9 |   | Ps. | 1,378.3 |   | Ps. | 1,262.2 |   |
| Electric                power purchases                                                                                                                                                                                                                                           |   |                                       | (889.9        | ) |   | (799.1 | ) |   | (757.7 | ) |
| Gross                margin                                                                                                                                                                                                                                                       |   |                                       | 1,092.0       |   |   | 579.3 |   |   | 504.5 |   |
| Transmission                and distribution expenses                                                                                                                                                                                                                             |   |                                       | (417.6        | ) |   | (362.1 | ) |   | (346.1 | ) |
| Selling                expenses                                                                                                                                                                                                                                                   |   |                                       | (120.6        | ) |   | (87.9 | ) |   | (86.0 | ) |
| Administrative                expenses                                                                                                                                                                                                                                            |   |                                       | (124.7        | ) |   | (93.3 | ) |   | (72.9 | ) |
| Net                operating income (loss)                                                                                                                                                                                                                                        |   |                                       | 429.2         |   |   | 35.9 |   |   | (0.4 | ) |
| Financial                income (expenses) and holding gains (losses)                                                                                                                                                                                                             |   |                                       |          |   |   |   |   |   |   |   |
| Generated                by assets                                                                                                                                                                                                                                                |   |                                       | 12.7          |   |   | 16.5 |   |   | 14.4 |   |
| Generated                by liabilities                                                                                                                                                                                                                                           |   |                                       | (125.5        | ) |   | (140.0 | ) |   | (162.9 | ) |
| Gain                on extinguishment of former debt                                                                                                                                                                                                                              |   |                                       | —       |   |   | 179.2 |   |   | — |   |
| Adjustment                to present value of notes                                                                                                                                                                                                                               |   |                                       | (21.5         | ) |   | 57.1 |   |   | — |   |
| Adjustment                to present value of the retroactive tariff increase arising from                the                application of the new electricity rate schedule and from the Payment                Plan                Agreement with the Province of Buenos Aires |   |                                       | (29.6         | ) |   | — |   |   | — |   |
| Loss                from the purchase and redemption of notes                                                                                                                                                                                                                     |   |                                       | (10.2         | ) |   | — |   |   | — |   |
| Adjustment                to present value of purchased and redeemed notes                                                                                                                                                                                                        |   |                                       | (8.6          | ) |   | — |   |   | — |   |
| Other                income (expenses), net                                                                                                                                                                                                                                       |   |                                       | 1.0           |   |   | (22.9 | ) |   | (0.7 | ) |
| Net                income (loss) before income tax                                                                                                                                                                                                                                |   |                                       | 247.4         |   |   | 125.9 |   |   | (149.6 | ) |
| Income                tax                                                                                                                                                                                                                                                         |   |                                       | (125.0        | ) |   | 167.2 |   |   | — |   |
| Net                income (loss)                                                                                                                                                                                                                                                  |   | Ps.                                        | 122.5         |   | Ps. | 293.1 |   | Ps. | (149.6 | ) |

**Year      ended December 31, 2007 compared with year ended December 31,      2006.**

***Net      sales***

|   | · | the                application from February 1, 2007 of the increase in our distribution                margins, or VAD, including the additional increase resulting from                the                implementation of the CMM for the period from November 2005 to April                2006                (which together represented a 38.3% overall increase in our VAD charged                to                our non-residential customers); |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                accrual of the full amount corresponding to the retroactive portion                of the                VAD increase (including CMM for the period from November 2005 to                April                2006) charged to our non residential customers for the period from                November 1, 2005 through January 31, 2007, which amounted to Ps.                218.6                million, of which, as of December 31, 2007, we had invoiced Ps. 47.3                million; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                recognition in October 2007 of an additional 9.63% increase in our                VAD                corresponding to the implementation of the CMM for the period from                May                2006 to April 2007. Such VAD increase amounting to Ps.49.6 is effective                since May 1, 2007; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                7.5% increase in the volume of energy sold in 2007, compared to the                volume                sold in 2006. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

***Electric      power purchases***

***Gross      margin***

***Transmission      and distribution expenses***

----

|                                                           |   | **Year                ended December 31,** |            |
|----------------------------------------------------------------|--------|--------------------------------------------|-----------------|
|                                                           |   | **2007**                                   |            | **% on 2007****net sales****(excluding****unbilled****retroactive****adjustment)**** ****(1)** |   | **2006** |   | **% on 2006****net sales** |   |
|                                                           |   | (in                millions of Pesos)      |            |
| Salaries                and social security taxes              |   | Ps.                                        | 125.8           |   |   | 30.1 | % |   | 6.9 | % | Ps. | 96.8 |   |   | 26.7 | % |   | 7.0 | % |
| Supplies                                                       |   |                                       | 22.9            |   |   | 5.5 | % |   | 1.3 | % |   | 20.1 |   |   | 5.5 | % |   | 1.5 | % |
| Outsourcing                                                    |   |                                       | 74.2            |   |   | 17.8 | % |   | 4.1 | % |   | 53.8 |   |   | 14.9 | % |   | 3.9 | % |
| Depreciation                of property, plant & equipment |   |                                       | 169.5           |   |   | 40.6 | % |   | 9.4 | % |   | 171.2 |   |   | 47.3 | % |   | 12.4 | % |
| Others                                                         |   |                                       | 25.2            |   |   | 6.0 | % |   | 1.4 | % |   | 20.2 |   |   | 5.6 | % |   | 1.5 | % |
| **Total**                                                      |   | **Ps.**                                    | ** 417.6** |   |   | **100.0** | **%  ** |   | **23.1** | **%  ** | **Ps.** | **362.1** |   |   | **100.0** | **%  ** |   | ** 26.3** | **%** |

| 1) | Calculated                on the basis of net sales excluding the unbilled amount of the retroactive                portion of the VAD increase charged to our non-residential customers,                but                including the full amount of the May 2007 CMM (Ps.49.6 million),                which                results in net sales of Ps. 1,810.6 million. These amounts are not                intended to be representative of what they would have been if the                retroactive tariff increase had been in effect only during the reported                period. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Selling      expenses***

*Acuerdo      Marco*

|                                              |   | **Year                ended December 31,** |      |
|---------------------------------------------------|--------|--------------------------------------------|-----------|
|                                              |   | **2007**                                   |      | **% on 2007****net sales****(excluding****unbilled****retroactive****adjustment)**** ****(1)** |   | **2006** |   | **% on****2006 net****sales** |   |
|                                              |   | (in                millions of Pesos)      |      |
| Salaries                and social security taxes |   | Ps.                                        | 25.4      |   |   | 21.0 | % |   | 1.4 | % | Ps. | 20.5 |   |   | 23.3 | % |   | 1.5 | % |
| Allowance                for doubtful accounts    |   |                                       | 30.7      |   |   | 25.4 | % |   | 1.7 | % |   | 11.6 |   |   | 13.2 | % |   | 0.8 | % |
| Outsourcing                                       |   |                                       | 29.4      |   |   | 24.4 | % |   | 1.6 | % |   | 25.1 |   |   | 28.6 | % |   | 1.8 | % |
| Taxes                and charges                  |   |                                       | 11.1      |   |   | 9.2 | % |   | 0.6 | % |   | 9.1 |   |   | 10.3 | % |   | 0.7 | % |
| Others                                            |   |                                       | 24.0      |   |   | 20.0 | % |   | 1.3 | % |   | 21.6 |   |   | 24.7 | % |   | 1.6 | % |
| **Total**                                         |   | **Ps.**                                    | **120.6** |   |   | **100.0** | **%  ** |   | **6.7** | **%  ** | **Ps.** | ** 87.9** |   |   | **100.0** | **%  ** |   | **6.4** | **%** |

----

| 1) | Calculated                on the basis of net sales excluding the unbilled amount of the retroactive                portion of the VAD increase charged to our non-residential customers,                but                including the full amount of the May 2007 CMM (Ps.49.6 million),                which                results in net sales of Ps. 1,810.6 million. These amounts are not                intended to be representative of what they would have been if the                retroactive tariff increase had been in effect only during the reported                period. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Administrative      expenses***

|                                              |   | **Year                ended December 31,** |      |
|---------------------------------------------------|--------|--------------------------------------------|-----------|
|                                              |   | **2007**                                   |      | **% on 2007 net****sales****(excluding****unbilled****retroactive****adjustment)**** ****(1)** |   | **2006** |   | **% on 2006****net sales** |   |
|                                              |   | (in                millions of Pesos)      |      |
| Salaries                and social security taxes |   | Ps.                                        | 36.5      |   |   | 29.3 | % |   | 2.0 | % | Ps. | 31.6 |   |   | 33.9 | % |   | 2.3 | % |
| Computer                services                  |   |                                       | 11.4      |   |   | 9.2 | % |   | 0.6 | % |   | 8.1 |   |   | 8.7 | % |   | 0.6 | % |
| Outsourcing                                       |   |                                       | 10.9      |   |   | 8.7 | % |   | 0.6 | % |   | 4.9 |   |   | 5.3 | % |   | 0.4 | % |
| Tax                on financial transactions      |   |                                       | 31.5      |   |   | 25.3 | % |   | 1.7 | % |   | 19.2 |   |   | 20.5 | % |   | 1.4 | % |
| Advertising                expenses               |   |                                       | 15.4      |   |   | 12.3 | % |   | 0.8 | % |   | 10.0 |   |   | 10.7 | % |   | 0.7 | % |
| Others                                            |   |                                       | 19.0      |   |   | 15.2 | % |   | 1.0 | % |   | 19.5 |   |   | 20.9 | % |   | 1.4 | % |
| **Total**                                         |   | **Ps.**                                    | **124.7** |   |   | **100.0** | **%  ** |   | **6.9** | **%  ** | **Ps.** | **93.3** |   |   | **100.0** | **%  ** |   | **6.8** | **%** |

----

| (1) | Calculated                on the basis of net sales excluding the unbilled amount of the retroactive                portion of the VAD increase charged to our non-residential customers,                but                including the full amount of the May 2007 CMM (Ps.49.6 million),                which                results in net sales of Ps. 1,810.6 million. These amounts are not                intended to be representative of what they would have been if the                retroactive tariff increase had been in effect only during the reported                period. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Net      operating income (loss)***

***Financial      income (expenses) and holding gains (losses)***

----

|   | · | A                Ps. 26.8 million decrease in interest expenses, mainly resulting                from                lesser adjustment by VAD increases in fines and penalties (Ps. 18.1                million in the year ended December 31,2007 compared to Ps. 47.0 million                in                the year ended December 31, 2006); |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A                Ps. 4.3 million decrease in financial expenses (which expenses for                the                year ended December 31, 2006 incorporated Ps. 10.1 million of costs                relating to our initial public equity offering);                and, |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | An                increase of Ps. 16.6 million in exchange losses (Ps. 29.9 million                in the                year ended December 31, 2007, compared to the Ps. 13.3 million in                the year                ended December 31, 2006). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Adjustment      to present value of the retroactive tariff increase arising from the application      of the new electricity rate schedule and of the Payment Plan Agreement with      the      Province of Buenos Aires***

***Gain      on extinguishment of former debt***

***Loss      from the purchase and redemption of notes and adjustment to present value of      purchase and redeemed notes***

***Adjustment      to present value of notes***

----

***Other      income (expenses), net***

***Income      tax***

|  | (i) | the                reversal of the deferred tax asset related to the use of the tax                loss                carry-forward due to a significant increase in our taxable income                which                was partially offset by a tax deduction for the ENRE fines and penalties                in 2007; and, |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | an                increase in the allowance for impairment of deferred tax assets due                to the                fact that management estimated that a higher portion of our tax loss                carry-forward would not be offset against future taxable income before                expiring at the end of 2007. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Net      income (loss)***

**Year      ended December 31, 2006 compared with year ended December 31,      2005**

***Net      sales***

|   | · | a                4.3% increase in the average GWh consumption per customer, which                we                believe is due to the general improvement in macroeconomic conditions                in                Argentina; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | a                1.7% increase in the number of our                customers. |
|--------|--------|-------------------------------------------------------------------------------|

***Electric      power purchases***

***Gross      margin***

***Transmission      and distribution expenses***

|                                                           |   | **Year                ended December 31,**         |   |
|----------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                           |   | **2006**                                           |   | **2005** |   |
|                                                           |   | **(in                millions of Pesos and in %)** |   |
| Salaries                and social security taxes              |   | Ps.                                                | 96.8   |   |   | 26.7 | % | Ps. | 74.3 |   |   | 21.5 | % |
| Supplies                consumption                            |   |                                               | 20.1   |   |   | 5.6 | % |   | 16.6 |   |   | 4.8 | % |
| Outsourcing                                                    |   |                                               | 53.8   |   |   | 14.9 | % |   | 38.3 |   |   | 11.1 | % |
| Depreciation                of property, plant and equipment   |   |                                               | 171.2  |   |   | 47.3 | % |   | 175.6 |   |   | 50.7 | % |
| Technical                assistance fee/operating agreement(1) |   |                                               | 7.1    |   |   | 2.0 | % |   | 26.9 |   |   | 7.8 | % |
| Others                                                         |   |                                               | 13.1   |   |   | 3.6 | % |   | 14.4 |   |   | 4.1 | % |
| Total                                                          |   | Ps.                                                | 362.1  |   |   | 100.0 | %   | Ps. | 346.1 |   |   | 100.0 | % |

----

| (1) | Replaced                operator fee as from 2005. |
|-----|----------------------------------------------------|

***Administrative      expenses***

----

|   | · | a                Ps. 3.8 million (24.2%) increase in other expenses attributable                mainly to a Ps. 3.5 million increase in depreciation of                property, plant and equipment; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                Ps. 6.6 million (26.4%) increase in salaries and social security                taxes attributable to an increase in compensation required by the                terms of                our collective bargaining agreements and applicable labor                regulations; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                Ps. 5.9 million increase in advertising expenses (including                institutional relations, radio advertising and community service                programs                principally related to a special program targeting efficient energy                use                among our customers); and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                Ps. 1.9 million (30.6%) increase in computer services due mainly                to the scheduled renewal of our software                licenses. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                              |   | **Year                ended December 31,** |   |
|---------------------------------------------------|--------|--------------------------------------------|--------|
|                                              |   | **2006**                                   |   | **%** |   | **2005** |   | **%** |   |
|                                              |   | **(in                millions of Pesos)**  |   |
| Salaries                and social security taxes |   | Ps.                                        | 31.6   |   |   | 33.9 | %   | Ps. | 25.0 |   |   | 34.3 | % |
| Computer                services                  |   |                                       | 8.1    |   |   | 8.7 |   |   | 6.2 |   |   | 8.5 |   |
| Outsourcing                                       |   |                                       | 4.9    |   |   | 5.3 |   |   | 4.8 |   |   | 6.6 |   |
| Advertising                expenses               |   |                                       | 10.0   |   |   | 10.7 |   |   | 4.1 |   |   | 5.6 |   |
| Tax                on financial transactions      |   |                                       | 19.2   |   |   | 20.6 |   |   | 17.1 |   |   | 23.4 |   |
| Others                                            |   |                                       | 19.5   |   |   | 20.9 |   |   | 15.7 |   |   | 21.4 |   |
| Total                                             |   | Ps.                                        | 93.3   |   |   | 100.0 | % | Ps. | 72.9 |   |   | 100.0 | % |

***Selling      expenses***

|                                              |   | **Year                ended December,**   |   |
|---------------------------------------------------|--------|-------------------------------------------|--------|
|                                              |   | **2006**                                  |   | **%** |   | **2005** |   | **%** |   |
|                                              |   | **(in                millions of Pesos)** |   |
| Salaries                and social security taxes |   | Ps.                                       | 20.5   |   |   | 23.3 | % | Ps. | 18.4 |   |   | 21.4 | % |
| Allowance                for doubtful accounts    |   |                                      | 11.6   |   |   | 13.2 |   |   | 18.0 |   |   | 20.9 |   |
| Outsourcing                                       |   |                                      | 25.1   |   |   | 28.6 |   |   | 22.1 |   |   | 25.7 |   |
| Taxes                and charges                  |   |                                      | 9.1    |   |   | 10.3 |   |   | 9.0 |   |   | 10.5 |   |
| Others                                            |   |                                      | 21.6   |   |   | 24.6 |   |   | 18.5 |   |   | 21.4 |   |
| Total                                             |   | Ps.                                       | 87.9   |   |   | 100.0 | %   | Ps. | 86.0 |   |   | 100.0 | % |

***Net      operating income (loss)***

----

***Financial      income (expenses) and holding gains (losses)***

** **

***Financial      debt result, net***

***Adjustment      to present value of notes***

***Other      income (expenses), net***

***Income      tax***

----

***Net      income (loss)***

**LIQUIDITY      AND CAPITAL RESOURCES**

***Sources      and uses of funds***

|                                                                |   | **Year                ended December 31,** |   |
|---------------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                                |   | **2007**                                   |   | **2006** |   | **2005** |   |
|                                                                |   | **(in                millions of Pesos)**  |   |
| Cash                at the beginning of the year                    |   | Ps.                                        | 32.7   |   | Ps. | 308.1 |   | Ps. | 251.1 |   |
| Net                cash provided by operating activities            |   |                                       | 427.2  |   |   | 215.0 |   |   | 181.5 |   |
| *Of                which:*                                          |   |                                       |   |   |   |   |   |   |   |   |
| Financial                interest paid, net of interest capitalized |   |                                       | (25.5  | ) |   | (26.7 | ) |   | (46.5 | ) |
| Net                cash used in investing activities                |   |                                       | (336.9 | ) |   | (179.7 | ) |   | (124.5 | ) |
| Net                cash used in financing activities                |   |                                       | (21.8  | ) |   | (310.8 | ) |   | — |   |
| Cash                at the end of the year                          |   | Ps.                                        | 101.2  |   | Ps. | 32.7 |   | Ps. | 308.1 |   |

***Net      cash provided by operating activities***

----

|   | · | a                Ps. 67.1 million increase in trade accounts payable (compared to                a Ps. 54.4 million increase in 2005), which reflected                principally increased energy purchases due to growing demand in our                area, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                Ps. 91.7 million increase in other liabilities (compared to a                Ps. 36.8 million increase in 2005), attributable primarily to an                increase in unpaid fines owed to the ENRE (Ps. 24.5 million), an                adjustment (Ps. 47.0 million) attributable to the amount of                fines and penalties payable pursuant to the ratification of the Adjustment                Agreement and fees and expenses related to our debt restructuring                and our                initial public offering (Ps. 11.1 million),                and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                Ps. 25.2 million increase in salaries and social security taxes                payable (compared to a Ps. 4.5 million increase in 2005), as a                consequence of a greater provision for paid holidays and higher debt                for                early retirements. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                Ps. 39.0 million increase in trade receivables in 2006 (compared                to a similar amount in 2005) attributable mainly to an increase in                energy                sales, and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                Ps. 23.1 million increase in other receivables due primarily to                payments of tax on presumptive minimum income                (Ps. 19.9 million), which we expect to be able to set off                against future income tax                liabilities. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a                Ps. 54.4 million increase in trade accounts payable in                2005, |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | a                Ps. 23.6 million increase in taxes payable in                2005, |
|--|--------|------------------------------------------------------------------------------------------|

|  | · | a                Ps. 36.8 million increase in other liabilities in 2005,                and |
|--|--------|---------------------------------------------------------------------------------------------|

|  | · | a                slight increase in salaries and social security taxes and accrued                litigation in 2005. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------|

|  | · | a                Ps. 37.1 million increase in our trade receivables in 2005,                which reflected an increase in amounts owed to us by the Argentine                government and the Province of Buenos Aires under the framework agreement                for electricity provided to                shantytowns, |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a                Ps. 27.2 million increase in other receivables in 2005, which                reflected an increase in pre-judgment attachments by the ENRE for                unpaid                fines (which we record as receivables until a final decision is rendered),                and |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a                slight increase in supplies. |
|--|--------|-----------------------------------------------|

----

***Net      cash used in investing activities***

***Net      cash used in financing activities***

***Capital      expenditures***

|   | · | U.S. $88 million                in 2008, |
|--------|--------|----------------------------------------------------|

|   | · | U.S. $99 million                in 2009, |
|--------|--------|----------------------------------------------------|

|   | · | U.S. $90 million                in each of 2010 and 2011, |
|--------|--------|---------------------------------------------------------------------|

----

|   | · | U.S. $86 million                in 2012, |
|--------|--------|----------------------------------------------------|

|   | · | U.S. $90 million                in 2013, |
|--------|--------|----------------------------------------------------|

|   | · | U.S. $86 million                in 2014, |
|--------|--------|----------------------------------------------------|

|   | · | U.S. $87 million                in 2015, and |
|--------|--------|--------------------------------------------------------|

|   | · | U.S. $90 million                in 2016. |
|--------|--------|----------------------------------------------------|

|                                                |   | **Year                ended December 31,** |   |
|-----------------------------------------------------|--------|--------------------------------------------|--------|
|                                                |   | **2007**                                   |   | **2006** |   | **2005** |   |
|                                                |   | **(in                millions of Pesos)**  |   |
| Supplies                                            |   | Ps.                                        | 235.3  |   | Ps. | 146.1 |   | Ps. | 62.3 |   |
| Network                maintenance and improvements |   |                                       | 70.0   |   |   | 45.3 |   |   | 40.5 |   |
| Legal                requirements(1)                |   |                                       | 12.3   |   |   | 8.6 |   |   | 8.3 |   |
| Communications                and telecontrol       |   |                                       | 7.0    |   |   | 8.8 |   |   | 4.6 |   |
| Others                                              |   |                                       | 18.1   |   |   | 6.9 |   |   | 8.8 |   |
| Total                                               |   | Ps.                                        | 342.7  |   | Ps. | 215.7 |   | Ps. | 124.5 |   |

----

| (1) | Capital                expenditures required to be made to comply with the ENRE quality                standard                and other regulations. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

*Malaver*

***Debt***

----

|   | · | U.S. $123,773,586                Fixed Rate Par Notes due December 14, 2016 (of which U.S. $80,047,997                remains outstanding as of December 31, 2007), with approximately                50% of                the principal due and payable at maturity and the remainder due in                semiannual installments commencing June 14, 2011, and bearing                interest starting at 3% and stepping up to 10% over                time; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | U.S. $12,656,086                Floating Rate Par Notes due December 14, 2019 (of which U.S.                $12,656,086 remains outstanding as of December 31, 2007), with the                same                payment terms as the Fixed Rate Par Notes and bearing interest at                LIBOR                plus a spread, which starts at 1% in 2008 and steps up to 2% over                time;                and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | U.S. $239,999,985                Discount Notes due December 14, 2014 (as of December 31, 2007, none                of our Discount Notes due 2014 were outstanding), with 60% of the                principal due and payable at maturity and the remainder due in semiannual                installments commencing on June 14, 2008, and bearing interest at a                fixed rate that starts at 3% and steps up to 12% over                time. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | limitations                on our ability to sell or pledge assets or make investments in third                parties; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | limitations                on our ability to incur new                indebtedness; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | limitations                on our ability to make capital                expenditures; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | limitations                on our ability to pay dividends; |
|--------|--------|-------------------------------------------------------------|

|   | · | limitations                on our ability to repurchase our common shares;                and |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | limitations                on our ability to enter into transactions with shareholders and affiliates                other than on an arm’s length                basis. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | greater                than 2.5, but not greater than 3.0, we must apply 50% of our excess                cash                to prepay or repurchase restructuring                notes; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | greater                than 3.0, but not greater than 3.5, we must apply 75% to prepay or                repurchase restructuring notes, unless we commit to use 50% of the                excess                cash for capital expenditures, in which case we must apply the remaining                50% to prepay or repurchase restructuring notes,                and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | greater                than 3.5, we must apply all of our excess cash to prepay or repurchase                restructuring notes. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

**CRITICAL      ACCOUNTING POLICIES AND ESTIMATES**

*Allowance      for doubtful accounts*

|                                                      |   | **Year                ended December 31,**    |   |
|-----------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                      |   | **2007**                                      |   | **2006** |   | **2005** |   |
|                                                      |   | **(in                millions of Ps. )** |   |
| **Allowance                for doubtful accounts:**  |   |                                          |   |   |   |   |   |
| Beginning                balance                          |   |                                          | 25.6   |   |   | 20.2 |   |   | 33.8 |   |
| Additions                                                 |   |                                          | 30.1   |   |   | 10.9 |   |   | 18.0 |   |
| Retirements                                               |   |                                          | (15.7  | ) |   | (5.5 | ) |   | (31.6 | ) |
| Ending                balance                             |   |                                          | 40.0   |   |   | 25.6 |   |   | 20.2 |   |

----

*Revenue      recognition*

*Impairment      of long-lived assets*

----

*Accrued      litigation*

*Income      tax and tax on presumptive minimum income*

|                                                                              |   |  **Amount** |    | **Tax Rate****35%** |   | **Year****Expiring** |   |
|-----------------------------------------------------------------------------------|--------|------------------|---------|--------------------------|--------|----------------------|--------|
| Tax                loss carryforward in 2002                                      |   |             | 98,519  |                     |   | 34,482               |   |   | 2007 |   |
| Tax                loss carryforward in 2005                                      |   |             | 23,761  |                     |   | 8,316                |   |   | 2010 |   |
| Total                tax loss carryforward as of December                31, 2007 |   |             | 122,280 |                     |   | 42,798               |   |   |   |   |

----

*Labor      cost liabilities*

|   | · | paid                leave for accumulated vacation; |
|--------|--------|-----------------------------------------------------|

|   | · | bonuses                to employees with a specified number of years of employment and who                are                included in our collective bargaining                agreements; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | benefits                to employees (pension plan) which are included in our collective                bargaining agreements, to be given at the time of retirement;                and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | early                retirement payables. |
|--------|--------|-------------------------------------------|

----

*Financial      debt*

**PRINCIPAL      DIFFERENCES BETWEEN ARGENTINE GAAP AND U.S GAAP**

**OFF-BALANCE      SHEET ARRANGEMENTS**

----

**TABULAR        DISCLOSURE OF CONTACTUAL OBLIGATIONS**

|                                                                       |   | **Payments due by period**     |                           |
|----------------------------------------------------------------------------|--------|-----------------------------------------------|--------------------------------|
|                                                                       |   | **Total**                                     |                           | **Less than****1 year** |   | **1-3****years** |   | **4-5****years** |   | **After****5 years** |   |
|                                                                       |   | **(in                    millions of Pesos)** |                           |
| Long                    term debt obligations                    (1)  |   |                                          | Ps.                    1,895.4 |   |   | 88.8 |   |   | 187.7 |   |   | 250.0 |   |   | 1,368.9 |   |
| Accrued                    fines and penalties(2)                     |   |                                          | 281.4                          |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Financial                    assistance fees(3)                       |   |                                          | 21.7                           |   |   | 7.9 |   |   | 13.8 |   |   | — |   |   | — |   |
| Operating                    leases(4)                                |   |                                          | 2.8                            |   |   | 2.1 |   |   | 0.5 |   |   | 0.3 |   |   | — |   |
| Capital                    expenditures(5)                            |   |                                          | —                        |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Accrued                    Litigation(6)                                   |   |                                          | 36.0                           |   |   | — |   |   | 36.0 |   |   | — |   |   | — |   |
| Others                                                                     |   |                                          | —                        |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Total                                                                      |   |                                          | Ps.                    2,237.3 |   |   | Ps.                    98.8 |   |   | Ps.                    238.0 |   |   | Ps.                    250.3 |   |   | Ps.                    1,368.9 |   |

----

| (1) | Includes                      amortization of principal and interest payments, including                      our                      management’s current estimates of future market rates in respect of our                      floating rate debt (which amounted to U.S. $12.6 million as of                      December 31, 2007). We record our debt obligations on our balance                      sheet at                      their net present value in accordance with Argentine GAAP.                      As a result,                      the amounts shown do not reflect the nominal amount owed under                      our debt                      instruments. See “—Debt” for a description of these restructuring notes,                      including amortization and interest payment terms and mandatory                      prepayment                      with excess cash provisions. All of our indebtedness is unsecured.                      None of                      our indebtedness is guaranteed. We expect to pay approximately                      U.S. $27.8 million of interest in                      2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes                  adjustments made to reflect the ratification of the Adjustment                  Agreement.                  We were required to make an adjustment to a portion of our accrued                  fines                  and penalties totaling Ps. 47.0 million to reflect the recent increase                  to                  our VAD pursuant to the Adjustment Agreement and the May 2006 CMM                  and Ps.                  18.1 million to reflect the CMM adjustment for the period May 2006– April                  2007. In addition, pursuant to the terms of the Adjustment Agreement,                  the                  Argentine government agreed, subject to the fulfillment of certain                  conditions, to forgive, upon the completion of the RTI, approximately                  Ps.                  71.4 million of our accrued fines and penalties and allow us to                  pay the                  remaining Ps. 210.0 million of these fines and penalties in semi-annual                  installments over a 7-year period commencing 180 days after the                  RTI comes                  into effect. Because the Adjustment Agreement was not ratified                  until                  January 2007, we have recalculated the amounts of accrued fines                  and                  penalties subject to the payment plan under the terms of the Adjustment                  Agreement as well as the amounts subject to forgiveness. See “Item 4.                  Information on the Company—Our concession —Fines and                  penalties.” |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Fees                  payable under our financial services agreement with EASA, our controlling                  shareholder. This agreement expires in 2010. See “Related party                  transactions.” |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Minimum                  required lease payments. |
|-----|---------------------------------------------------|

| (5) | Our                  concession does not require us to make any specified amount of                  capital                  expenditures, but requires us to meet certain quality and other                  service                  standards. See “—Capital                  expenditures.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Represents                  a contingent liability for the tax claim that we have with the                  Argentine                  Tax Authority related to the income tax deduction of the allowance                  for bad                  debts for the three fiscal years ended December 31, 1996, December                  31,                  1997 and December 31, 1998. This tax claim is based on the fact                  that we                  could not demonstrate that the accounts receivable had collectability                  risk                  factors as it is described by the Argentine Income Tax Law. The                  amount                  recorded for this tax claim includes interests and penalties accrued                  as of                  December 31, 2007. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Item        6.**
***Directors,        Senior Management and Employees***

**Directors        and Senior Management**

**Board        of directors**

| **Name  **                                   |   | **Position**                        |   | **Age** |   | **Year of appointment****(class electing director)** |
|--------------------------------------------------------|--------|-------------------------------------|--------|---------|--------|--------------------------------------------------------------------------|
| Alejandro                  Macfarlane                  |   | Chairman                  and CEO   |   | 41      |   | 2008                  (Class A)                                          |
| Marcos                  Marcelo Mindlin**              |   | Vice                  Chairman      |   | 43      |   | 2008                  (Class A)                                          |
| Damián                  Miguel Mindlin**          |   | Director                            |   | 41      |   | 2008                  (Class A)                                          |
| Gustavo                  Mariani                       |   | Director                            |   | 36      |   | 2008                  (Class A)                                          |
| Luis                  Pablo Rogelio Pagano             |   | Director                            |   | 54      |   | 2008                  (Class A)                                          |
| Eduardo                  Llanos*                       |   | Director                            |   | 64      |   | 2008                  (Class A)                                          |
| Maximiliano                  Alejandro Fernández* |   | Director                            |   | 47      |   | 2008                  (Class A)                                          |
| Ricardo                  Alejandro Torres              |   | Director                            |   | 48      |   | 2008                  (Class B/C)                                        |
| Diego                  Martín Salaverri           |   | Director                            |   | 43      |   | 2008                  (Class B/C)                                        |
| Edgardo                  Alberto Volosín          |   | Director                            |   | 54      |   | 2008                  (Class B/C)                                        |
| Ignacio                  Chojo Ortiz*                  |   | Director                            |   | 62      |   | 2008                  (Class B/C)                                        |
| Rafael                  Mancuso*                       |   | Director                            |   | 65      |   | 2008                  (Class B/C)                                        |
| Javier                  Douer                          |   | Alternate                  Director |   | 33      |   | 2008                  (Class A)                                          |
| Pablo                  Díaz                       |   | Alternate                  Director |   | 49      |   | 2008                  (Class A)                                          |
| Brian                  Henderson                       |   | Alternate                  Director |   | 62      |   | 2008                  (Class A)                                          |
| Jorge                  Miguel Grecco                   |   | Alternate                  Director |   | 49      |   | 2008                  (Class A)                                          |
| Ariel                  Schapira                        |   | Alternate                  Director |   | 45      |   | 2008                  (Class A)                                          |
| Ricardo                  Sericano                      |   | Alternate                  Director |   | 59      |   | 2008                  (Class A)                                          |
| Maia                  Chmielewski                      |   | Alternate                  Director |   | 27      |   | 2008                  (Class B/C)                                        |
| Gabriel                  Cohen                         |   | Alternate                  Director |   | 49      |   | 2008                  (Class B/C)                                        |
| Alejandro                  Mindlin**                   |   | Alternate                  Director |   | 31      |   | 2008                  (Class B/C)                                        |
| Carlos                  Correa Urquiza*                |   | Alternate                  Director |   | 37      |   | 2008                  (Class B/C)                                        |
| Eduardo                  Maggi                         |   | Alternate                  Director |   | 51      |   | 2008                  (Class B/C)                                        |

----

| * | Independent                  under Argentine law and under Rule 10A-3 under the Securities                  Exchange Act of 1934, as amended. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | The                  following family relationships exist within the board of directors:                  Marcos                  Marcelo Mindlin, Damián Miguel Mindlin and Alejandro Mindlin are                  brothers. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Alejandro        Macfarlane. *
*Instituto        para el Desarrollo Empresarial Argentino*
*Consejo        Argentino para las Relaciones Internacionales*

----

*Marcos        Marcelo Mindlin. *
*Cámara        Argentina de Energía*
*Centro        de Estudios Macroeconómicos*

*Damián        Miguel Mindlin. *

*Gustavo        Mariani. *
*Centro        de Estudios Macroeconómicos*

*Luis        Pablo Rogelio Pagano. *

*Eduardo        Llanos*

*Maximiliano        Alejandro Fernández*

----

*Ricardo        Alejandro Torres. *

*Diego        Martín Salaverri*

*Edgardo        Alberto Volosín. *

*Ignacio        Chojo Ortiz. *

*Rafael        Mancuso*

*Javier        Douer. *

*Pablo        Díaz. *
*Subsecretaría        de Energía Eléctrica*

*Brian        Henderson. *

----

*Jorge        Miguel Grecco. *

*Ariel        Schapira*

*Ricardo        Sericano*

*Maia        Chmielewski*
*.        *

*Gabriel        Cohen*
*.        *

*Alejandro        Mindlin. *

*Carlos        Florencio Correa Urquiza. *

*Eduardo        Maggi*
*.        *

**BOARD        PRACTICES**

----

|   | · | a                  duty to disclose all material events related to the company, including                  any                  fact or situation which is capable of affecting the value or trading                  of                  the securities of the company; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                  duty of loyalty and diligence; |
|--------|--------|---------------------------------------------------|

|   | · | a                  duty of confidentiality; and |
|--------|--------|-------------------------------------------------|

|   | · | a                  duty to consider the general interests of all shareholders over                  the                  interests of controlling                  shareholders. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Executive        committee**

**Audit        committee**

*omité        de auditoría*

|   | · | monitoring                  our internal control, administrative and accounting                  systems; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | supervising                  the application of our risk management                  policies; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | providing                  the market adequate information regarding conflicts of interests                  that may                  arise between our company and our directors or controlling                  shareholders; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | rendering                  opinions on transactions with related parties;                  and |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | supervising                  and reporting to regulatory authorities the existence of any kind                  of                  conflict of interest. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **Name  **                                     |     | **Position** |     | **Class electing member** |   |
|----------------------------------------------------------|--------------------|--------------|--------------------|-------------------------------------|--------|
| Ignacio                  Chojo Ortiz(1)                  |               |         | President          |                                |   | Class                  B |   |
| Maximiliano                  Alejandro Fernández(1) |               |         | Member             |                                |   | Class                  A |   |
| Eduardo                  Llanos(1)                       |               |         | Member             |                                |   | Class                  A |   |

**Senior        management**

| **Name  **                          |   | **Current Position** |                                            | ** Age** |   |
|-----------------------------------------------|--------|---------------------------|-------------------------------------------------|---------------|--------|
| Alejandro                  Macfarlane         |   |                      | Chief                  Executive Officer        |          |   | 41 |   |
| Luis                  Pablo Rogelio Pagano    |   |                      | Chief                  Financial Officer        |          |   | 54 |   |
| Ricardo                  Sericano             |   |                      | Technical                  Director             |          |   | 59 |   |
| Eduardo                  Maggi                |   |                      | Director                  of Operations         |          |   | 51 |   |
| Gustavo                  Gené            |   |                      | Principal                  Accounting Officer   |          |   | 51 |   |
| Jorge                  Miguel Grecco          |   |                      | Director                  of External Relations |          |   | 49 |   |
| Edgardo                  Alberto Volosín |   |                      | Director                  of Corporate Affairs  |          |   | 54 |   |

*Gustavo        Gené*

**Supervisory        committee**

*Comisión        Fiscalizadora*

| **Name**                                                  |   | **Position** |                              | **Year of appointment****(class electing member)** |   |
|-----------------------------------------------------------|--------|--------------|-----------------------------------|------------------------------------------------------------------------|--------|
| Javier                  Errecondo                         |   |         | Member                            |                                                                   |   | 2008                  (Class A) |   |
| José                  Daniel Abelovich(1)            |   |         | Member                            |                                                                   |   | 2008                  (Class A) |   |
| Marcelo                  Javier Ruiz                  (1) |   |         | Member                            |                                                                   |   | 2008                  (Class B/C) |   |
| Santiago                  Dellatorre                      |   |         | Alternate                  member |                                                                   |   | 2008                  (Class A) |   |
| Marcelo                  Fuxman(1)                        |   |         | Alternate                  member |                                                                   |   | 2008                  (Class A) |   |
| Roberto                  Daniel Murmis(1)                 |   |         | Alternate                  member |                                                                   |   | 2008                  (Class B/C) |   |

----

----

*Javier        Errecondo*

*José        Daniel Abelovich*

*Marcelo        Javier Ruiz *

*Santiago        Dellatorre *

*Marcelo        Fuxman*

*Roberto        Daniel Murmis *

**COMPENSATION**

**EMPLOYEES**

*Sindicato        de Luz y Fuerza*
*Asociación        del Personal Superior de SEGBA*
*Sindicato        de Luz y Fuerza*
*Asociación        del Personal Superior de SEGBA*
*Sindicato        de Luz y Fuerza *
*Asociación        del Personal Superior de SEGBA, *

----

**SHARE        OWNERSHIP**

**Item        7.**
***Major        Shareholders and Related Party Transactions***

|                                                  |   | **Class** |   | **Shares** |   | **(%)**     |   |
|-------------------------------------------------------|--------|-----------|--------|------------|--------|-------------|--------|
| Electricidad                  Argentina S.A.(1)       |   |      | A      |       |   | 462,292,111 |   |   | 51.0 | % |
| Employee                  Stock Participation Program |   |      | C      |       |   | 1,952,604   |   |   | 0.2 | % |
| Public                                                |   |      | B      |       |   | 442,210,385 |   |   | 48.8 | % |
| Total                                                 |   |      |   |       |   | 906,455,100 |   |   | 100.0 | % |

----

----

**Acquisition        by Dolphin Energía and IEASA**

**Initial        Public Offering **

**Acquisition        by Pampa Holding S.A.**

----

**Employee        Stock Participation Program**

*Programa        de Propiedad Participada,*

----

**RELATED        PARTY TRANSACTIONS**

**Financial        Services Agreement with EASA**

**Agreement        with Comunicaciones y Consumos S.A.**

**Operating        and technical assistance agreements**

----

**Item        8.**
***Financial        Information***

**LEGAL        AND ADMINISTRATIVE PROCEEDINGS**

**Legal        proceedings **

***Tax        claims***

----

***Environmental        claims***

*Tribunal        de Casación*
*Sala        I de la Cámara Federal de San Martín*
*Minsterio        Público*

***Proceedings        challenging the renegotiation of our concession***

*Asociación        Civil por la Igualdad y la Justicia*
*Consumidores        Libres Cooperativa Limitada de Provisión de Servicios de Acción        Comunitaria*

**DIVIDENDS**

----

|   | · | if                  our leverage ratio is greater than 2.5, but not greater than 3.0,                  we may                  apply 50% of our excess cash to pay                  dividends; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | if                  our leverage ratio is greater than 3.0, but not greater than 3.5,                  we may                  apply 25% of our excess cash to pay dividends;                  and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | if                  our leverage ratio is greater than 3.5, we may not pay                  dividends. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

***Amount        available for distribution***

*Bonos        de Participación para el Personal *

**SIGNIFICANT        CHANGES**

----

**Item        9.**
***The        Offer and Listing***

**OFFER        AND LISTING DETAILS**

|   |   | **Buenos Aires Stock****Exchange** |   | **New York Stock****Exchange** |   |
|--------|--------|----------------------------------------------|--------|------------------------------------------|--------|
|   |   | **Pesos per Share**                |   | **U.S. dollars per ADS**  |   |
|   |   | **High**                                     |   | **Low**                                  |   | **High** |   | **Low** |   |
| 2007   |   |                                         | 4.00   |                                     |   | 2.70 |   |   | 25.87 |   |   | 16.93 |   |

|                            |   | **Buenos Aires Stock****Exchange** |   | **New York Stock****Exchange** |   |
|---------------------------------|--------|----------------------------------------------|--------|------------------------------------------|--------|
|                            |   | **Pesos per Share**                |   | **U.S. dollars per ADS**  |   |
|                            |   | **High**                                     |   | **Low**                                  |   | **High** |   | **Low** |   |
| **2007**                        |   |                                         |   |                                     |   |   |   |   |   |
| Second                  Quarter |   |                                         | 3.39   |                                     |   | 2.70 |   |   | 22.29 |   |   | 16.96 |   |
| Third                  Quarter  |   |                                         | 3.82   |                                     |   | 2.75 |   |   | 24.98 |   |   | 17.00 |   |
| Fourth                  Quarter |   |                                         | 4.00   |                                     |   | 3.42 |   |   | 25.87 |   |   | 21.21 |   |

|     |   | **Buenos Aires Stock****Exchange** |   | **New York Stock****Exchange** |   |
|----------|--------|----------------------------------------------|--------|------------------------------------------|--------|
|     |   | **Pesos per Share**                |   | **U.S. dollars per ADS**  |   |
|     |   | **High**                                     |   | **Low**                                  |   | **High** |   | **Low** |   |
| **2007** |   |                                         |   |                                     |   |   |   |   |   |
| December |   |                                         | 3.65   |                                     |   | 3.42 |   |   | 23.00 |   |   | 21.21 |   |
| **2008** |   |                                         |   |                                     |   |   |   |   |   |   |   |   |   |
| January  |   |                                         | 3.51   |                                     |   | 3.22 |   |   | 22.22 |   |   | 20.20 |   |
| February |   |                                         | 3.40   |                                     |   | 3.03 |   |   | 21.55 |   |   | 18.45 |   |
| March    |   |                                         | 3.18   |                                     |   | 2.80 |   |   | 20.05 |   |   | 16.93 |   |
| April    |   |                                         | 3.30   |                                     |   | 2.96 |   |   | 20.87 |   |   | 18.20 |   |
| May      |   |                                         | 3.00   |                                     |   | 2.60 |   |   | 18.96 |   |   | 15.28 |   |
| June(1)  |   |                                         | 2.67   |                                     |   | 2.00 |   |   | 16.62 |   |   | 12.30 |   |

----

**Markets**

**Trading        on the Buenos Aires Stock Exchange**

*Trading        in the Argentine securities market*

*Regulation        of the Argentine securities market*

----

***Item        10.***
***Additional        Information***

**MEMORANDUM        AND ARTICLES OF INCORPORATION**

***Description        of capital stock***

*sociedad        anónima, *
*Sociedades        Anónimas.*

*pro        rata*

----

**Corporate        purpose**

**Shareholders’        liability**

**Appraisal        rights**

|   | · | a                  merger or spin-off in which we are not the surviving corporation,                  unless                  the acquiror shares are authorized for public offering or listed                  on any                  stock exchange; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                  transformation of our corporate legal                  status; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | a                  fundamental change in our by-laws; |
|--------|--------|-------------------------------------------------------|

|   | · | a                  change in our domicile outside                  Argentina; |
|--------|--------|-------------------------------------------------------------------------------|

----

|   | · | a                  voluntary termination of the public offering or listing                  authorization; |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | a                  decision in favor of our continuation upon delisting or cancellation                  of                  our public offering authorization;                  or |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                  total or partial recapitalization following a mandatory reduction                  of our                  capital or liquidation |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

**Redemption        or repurchase**

*sociedad        anónima*

**Preemptive        and accretion rights**

*pro        rata*
*pro        rata*

----

*pro      rata*
*pro      rata*

*pro      rata*

**Voting      rights**

**Registration      requirements of foreign companies holding Class B shares**

*Inspección      General de Justicia*

**Liquidation      rights**

**Ordinary      and extraordinary shareholders meetings**

----

**Special      shareholders meetings of classes of shares**

**Notices      of meetings**

**Quorum      and voting requirements**

----

*Caja      de Valores S.A. *

**Election      of directors**

**Form      and transfer**

*Caja      de Valores *
*Caja      de Valores *
*Caja      de Valores*
*Caja      de Valores*
*Caja      de Valores *
*Caja      de Valores*
*Caja      de Valores *
*Caja      de Valores *

***Certain      Differences between Argentine and U.S. Corporate Law***

**Mergers,      Consolidations, and Similar Arrangements **

----

**Anti-Takeover      Provisions **

|   | · | prior                to the date of the transaction in which the shareholder became an                interested shareholder, the board of directors of the corporation                approves                either the business combination or the transaction that resulted                in the                shareholder becoming an interested                shareholder; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | upon                consummation of the transaction that resulted in the shareholder                becoming                an interested shareholder, the interested shareholder owns at least                85% of                the voting stock of the corporation, excluding shares held by directors,                officers, and employee stock plans; or |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | at                or after the date of the transaction in which the shareholder became                an                interested shareholder, the business combination is approved by the                board                of directors and authorized at a shareholders’ meeting by at least 66 2/3%                of the voting stock which is not owned by the interested shareholder. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Shareholders’      Suits **

*Class      Action Lawsuits*

**Shareholder      Proposals **

----

**Calling      of Special Shareholders’ Meetings **

**Cumulative      Voting **

**Approval      of Corporate Matters by Written Consent **

**Amendment      of Certificate of Incorporation **

*(acta      constitutiva)*

**Amendment      of Bylaws **

----

**Staggered      board of directors **

**MATERIAL      CONTRACTS**

**EXCHANGE      CONTROLS**

|   | · | such                funds may be transferred only outside the local exchange market after                a                365-day period from the date of entry of the funds into                Argentina; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | any                amounts resulting from the exchange of such funds are to be credited                to an                account within the Argentine banking system; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                non-transferable, non-interest-bearing deposit must be maintained                for a                term of 365 calendar days, in an amount equal to 30% of any inflow                of                funds to the local foreign exchange market arising from certain enumerated                transactions; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | such                deposit shall be in U.S. dollars in any of the financial entities                of                Argentina and may not be used as collateral or guaranty for any credit                transaction. Any breach to the provisions of Decree 616/05 is subject                to                criminal penalties of the Exchange                Regime. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Money      laundering**

|   | · | Crimes                related to illegal trafficking and commercialization of narcotics                (Law                No. 23,737); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Crimes                related to arms trafficking (Law                No. 22,415); |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | Crimes                related to the activities of an illegal association as defined in                Article                210 bis of the Penal Code; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Illegal                acts committed by illegal associations (Article 210 of the Penal                Code)                organized to commit crimes for with political or racial                objectives; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Crimes                of fraud against the Public Administration (Article 174, Section                5 of the                Penal Code); |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Crime                against the Public Administration under Chapters VI, VII, IX and                IX bis of                Title XI of Book Two of the Penal                Code; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Crimes                of underage prostitution and child pornography under Articles 125,                125                bis, 127 bis and 128 of the Penal                Code. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | obtaining                from clients documents that indisputably prove the identity, legal                status,                domicile and other information, to accomplish any type of activity                intended; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | reporting                any suspicious activity or                operation; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | keeping                any monitoring activities in connection with a proceeding pursuant                to the                Money Laundering Law confidential from both clients and third                parties. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**TAXATION**

----

**Argentine      Tax Considerations**

*Dividends      tax*

*Capital      gains tax*

*Resident      individuals. *

*Foreign      beneficiaries. *

*Local      entities. *

*Personal      Assets tax*

*valor      patrimonial proporcional*

*Value      added tax*

----

*Transfer      taxes*

*Stamp      taxes*

*Other      taxes*

*Tax      treaties*

**U**
**nited**
**      S**
**tates**
**      F**
**ederal**
**      I**
**ncome**
**      T**
**ax**
**      C**
**onsiderations**

|   | · | a                dealer in securities or currencies; |
|--------|--------|------------------------------------------------------|

|   | · | a                trader in securities that elects to use a mark-to-market method of                accounting for securities holdings; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                bank; |
|--------|--------|------------------------|

|   | · | a                life insurance company; |
|--------|--------|------------------------------------------|

|   | · | a                tax-exempt organization; |
|--------|--------|-------------------------------------------|

|   | · | a                person that holds ADSs that are a hedge or that are hedged against                interest rate or currency risks; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                person that holds ADSs as part of a straddle or conversion transaction                for                tax purposes; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                person who is liable for the alternative minimum                tax; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | a                person whose functional currency for U.S. tax purposes is not the                U.S.                Dollar; or |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                person that owns or is deemed to own 10% or more of any class of                our                stock. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|   | · | a                citizen or resident of the United                States; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | a                U.S. domestic corporation; or |
|--------|--------|------------------------------------------------|

|   | · | otherwise                subject to U.S. federal income tax on a net income basis with respect                to                income from the ADS. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

*Dividends*

*Sale      or Other Disposition*

----

*Foreign      Tax Credit Considerations*

*U.S.      Information Reporting and Backup Withholding Rules*

**DESCRIPTION      OF AMERICAN DEPOSITARY SHRAES**

*American      depositary receipts*

----

*Dividends      and other distributions*

*How      will investors receive dividends and other distributions on the      shares?*

*Cash*

*Shares*

*Rights      to purchase additional common shares*

*Other      Distributions*

----

*Deposit,      withdrawal and cancellation*

*How      are ADSs issued?*

*How      do ADS holders cancel ADSs and obtain shares?*

*How      do ADS holders interchange between certified ADSs and uncertified      ADSs?*

*Voting      rights*

*How      do holders ADSs vote?*

----

|   | · | we                do not wish the depositary to vote those deposited                securities; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | we                think there is substantial shareholder opposition to the particular                question; or |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | we                think the particular question would have an adverse impact on our                shareholders. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

*Fees      and expenses*

| ***Persons                  depositing common shares or ADS holders must                  pay*****:**                                                                                                                                                                                 |  ***For*****:** |                                                                                                                                                                                                                                                                        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| $5.00                  (or less) per 100 ADSs (or portion of 100 ADSs)                                                                                                                                                                                                                | ·               | Issuance                  of ADSs, including issuances resulting from a distribution of common                  shares or rights or other property                                                                                                                          |
|                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                  | ·               | Cancellation                  of ADSs for the purpose of withdrawal, including if the deposit                  agreement                  terminates                                                                                                                        |
|                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                        |
| $0.02                  (or less) per ADS.                                                                                                                                                                                                                                             | ·               | Any                  cash distribution to the holder of the ADSs                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                        |
| $0.02                  (or less) per ADS per year.                                                                                                                                                                                                                                    | ·               | Depositary                  services                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                        |
| A                  fee equivalent to the fee that would be payable if securities distributed                  to the holder of ADSs had been common shares and the shares had                  been                  deposited for issuance of ADSs                                   | ·               | Distribution                  of securities distributed to holders of deposited securities which                  are                  distributed by the depositary to ADR holders                                                                                         |
|                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                        |
| Registration                  or transfer fees                                                                                                                                                                                                                                        | ·               | Transfer                  and registration of common shares on our common share register                  to or from                  the name of the depositary or its agent when the holder of ADSs                  deposits                  or withdraw common shares. |
|                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                        |
| Expenses                  of the depositary in converting foreign currency to U.S.                  Dollars                                                                                                                                                                           |                 |                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                        |
| Expenses                  of the depositary                                                                                                                                                                                                                                           | ·               | Cable,                  telex and facsimile transmissions (when expressly provided in the                  deposit                  agreement)                                                                                                                              |
|                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                        |
| Taxes                  and other governmental charges the depositary or the custodian                  have to pay                  on any ADSs or common share underlying ADSs, for example, stock                  transfer                  taxes, stamp duty or withholding taxes |                 |                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                  |                 |                                                                                                                                                                                                                                                                        |
| Any                  charges incurred by the depositary or its agents for servicing                  the                  deposited securities                                                                                                                                        | ·               | No                  charges of this type are currently made in the Argentine market                                                                                                                                                                                         |

----

*Payment      of taxes*

*Reclassifications,      recapitalizations and mergers*

| ***If                we:***                                                                                                                                                                                                                                                                                                                                                                                                                                               | ***Then:***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Change                the nominal or par value of our common shares Reclassify,                split up or consolidate any of the deposited securities Distribute                securities on the common shares that are not distributed to the holders                of                ADSs Recapitalize,                reorganize, merge, liquidate, sell all or substantially all of our                assets,                or take any similar action | The                cash, shares or other securities received by the depositary will                become                deposited securities. Each ADS will automatically represent its equal                share of the new deposited securities. The                depositary may distribute some or all of the cash, shares or other                securities it received. It may also deliver new ADRs or ask the holder                of                ADSs to surrender their outstanding ADRs in exchange for new ADRs                identifying the new deposited securities.  |

*Limitations      on obligations and liability*

*Limits      on      our obligations and the obligations of the depositary; limits on liability      to      holders      of ADRs*

----

|   | · | are                only obligated to take the actions specifically set forth in the                deposit                agreement without negligence or bad                faith; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | are                not liable if either of us is prevented or delayed by law or circumstances                beyond our control from performing our obligations under the deposit                agreement; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | are                not liable if either of us exercises discretion permitted under the                deposit agreement; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | have                no obligation to become involved in a lawsuit or other proceeding                related                to the ADRs or the deposit agreement on behalf of holders of ADSs                or on                behalf of any other party; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | may                rely upon any documents we believe in good faith to be genuine and                to have                been signed or presented by the proper                party. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Requirements      for depositary actions*

|   | · | payment                of stock transfer or other taxes or other governmental charges and                transfer or registration fees charged by third parties for the transfer                of                any common shares or other deposited                securities; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | satisfactory                proof of the identity and genuineness of any signature or other                information it deems necessary; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | compliance                with regulations it may establish, from time to time, consistent                with the                deposit agreement, including presentation of transfer                documents. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*The      right of holders of ADSs to receive the common shares underlying their      ADRs*

*Pre-release      of ADSs*

----

*Direct      Registration System*

*Shareholder      communications and inspection of register of holders of ADSs*

*Amendment      and termination*

*pro      rata*

----

**DOCUMENTS      ON DISPLAY**

**Item      11.**
***Quantitative      and Qualitative Disclosures about Market Risk***

***Foreign      currency risk***

----

**Item      12.**
***Description      of Securities Other than Equity Securities***

**PART II**

**Item      13.**
***Defaults,      Dividend Arrearages and Delinquencies***

**Item      14.**
***Material      Modifications to the Rights of Security Holders and Use of      Proceeds***

**Use      of Proceeds**

**Item      15.**
***Controls      and Procedures***

----

**Item 16A.**
***Audit      Committee Financial Expert***

**Item 16B.**
***Code      of Ethics***

**Item 16C.**
***Principal      Accountant Fees and Services***

**Audit      and Non-Audit Fees **

|                              |   | **Year ended December 31,** |          |
|-----------------------------------|--------|--------------------------------------------|---------------|
|                              |   | **2007****(1)**                            |          | **2006****(2)** |   |
|                              |   |                                       |          |
| Audit                fees         |   | Ps.                                        |  800,500 |   | Ps. | 3,940,501 |   |
| Audit-related                fees |   |                                       | 707,725       |   |   | 87,424 |   |
| Tax                fees           |   |                                       | 94,600        |   |   | 64,000 |   |
| Other                fees         |   |                                       | -             |   |   | - |   |
| Total                             |   | Ps.                                        | 1,602,825     |   | Ps. | 4,091,925 |   |

*Banco      Nación*

*Banco      Nación*

----

**Audit      Committee Pre-Approval Policies and Procedures**

**Item 16D.**
***Exemptions      from the Listing Standards for Audit Committees***

**Item 16E.**
***Purchases      of Equity Securities by the Issuer and Affiliated      Purchasers***

**PART III**

**Item      17.**
***Financial      Statements***

**Item      18.**
***Financial      Statements***

**Item      19.**
***Exhibits***

| 1.1 | Corporate                bylaws of Edenor, S.A. (*estatutos                sociales*)                (English translation) (previously filed as Exhibit 3.1 to Edenor’s                Registration Statement on Form F-1 (File No. 333-141894) on April                4, 2007                and incorporated by reference                herein.) |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1 | Form                of Deposit Agreement among Edenor, S.A., The Bank of New York, as                depositary, and the Holders from time to time of American Depositary                Shares issued thereunder, including the form of American Depositary                Receipts (previously filed as Exhibit 4.1 to Edenor’s Amendment No. 2 to                Registration Statement on Form F-1 (File No. 333-141894) on April                20, 2007                and incorporated by reference                herein.) |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Indenture                dated April 24, 2006, between Empresa Distribuidora y Comercializadora                Norte S.A., as Issuer, and The Bank of New York, as Trustee, Co-Registrar                and Paying Agent, and Banco Santander Río S.A., as Registrar, Transfer and                Paying Agent in Argentina and Representative of the Trustee in                Argentina. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3 | Indenture                dated October 9, 2007, between Empresa Distribuidora y Comercializadora                Norte S.A., as Issuer, and The Bank of New York, as Trustee, Co-Registrar                and Paying Agent, and Banco Santander Río S.A., as Registrar, Transfer and                Paying Agent in Argentina and Representative of the Trustee in                Argentina. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | Registration                Rights Agreement, dated October 9, 2007, between Edenor, S.A. and                Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. as                Representatives of the Initial                Purchasers. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.1 | Certification                of Chief Financial Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002. |
|------|----------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | Certification                of Chief Executive Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002. |
|------|----------------------------------------------------------------------------------------------------------------------------------------|

| 13.1 | Certification                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002. |
|------|-------------------------------------------------------------------------------------------------------------|

----

**SIGNATURE**

|   | Empresa                Distribuidora y Comercializadora NorteSociedad                Anónima |
|--------|---------------------------------------------------------------------------------------------------|
|   |                                                                                              |   |
|   | By:                                                                                               | /s/                Luis Pablo Rogelio Pagano  |
|   |                                                                                              | Name: Luis                Pablo Rogelio Pagano Title:                  Chief                Financial Officer |

----

**Index      to      financial statements**

| **Audited                Financial Statements**                                                                                             |   | **Page** |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|
|                                                                                                                                        |   |     |
| Report                of Independent Registered Public Accounting Firm                                                                      |   | F-2      |
|                                                                                                                                        |   |     |
| Balance                Sheets as of December 31, 2007 and 2006                                                                         |   | F-4      |
|                                                                                                                                        |   |     |
| Statements                of Income for the years ended December 31, 2007, 2006 and                2005                                |   | F-6      |
|                                                                                                                                        |   |     |
| Statements                of Changes in Shareholders’ Equity for the years ended December 31,                2007, 2006 and 2005 |   | F-7      |
|                                                                                                                                        |   |     |
| Statements                of Cash Flows for the years ended December 31, 2007, 2006 and                2005                            |   | F-7      |
|                                                                                                                                        |   |     |
| Notes                to the Financial Statements                                                                                            |   | F-8      |

----

**INDEPENDENT      AUDITORS’ REPORT**

| Deloitte & Co. S.R.L. |
|------------------------------------------|
| Florida 234, Piso 5° |
| C1005AAF                                 |
| Ciudad Autónoma                |
| de Buenos Aires                |
| Argentina                                |
|                                     |
| Tel: (54-11) 4320-2700         |
| Fax: (54-11) 4325-8081         |
| www.deloitte.com                         |

**Report of Independent      Registered Public Accounting Firm **

| A member firm of    |
|------------------------------------|
| Deloitte Touche Tohmatsu |

----

----

**EMPRESA        DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)**

**BALANCE        SHEETS AS OF DECEMBER 31, 2007 AND 2006**

|                                                                  |   | **2007** |      | **2006** |   |
|-----------------------------------------------------------------------|--------|----------|-----------|----------|--------|
| **CURRENT                  ASSETS**                                   |   |     |      |     |   |
| Cash                  and banks                                       |   |     | 3,459     |     |   | 481 |   |
| Investments                  (Note 25 - Exhibit D)                    |   |     | 97,739    |     |   | 32,192 |   |
| Trade                  receivables (Note 4)                           |   |     | 345,979   |     |   | 270,938 |   |
| Other                  receivables (Note 5)                           |   |     | 25,990    |     |   | 30,221 |   |
| Supplies                                                              |   |     | 23,174    |     |   | 13,635 |   |
| Total                  Current Assets                                 |   |     | 496,341   |     |   | 347,467 |   |
|                                                                  |   |     |           |     |   |  |   |
| **NON-CURRENT                  ASSETS**                               |   |     |           |     |   |  |   |
| Trade                  receivables (Note 4)                           |   |     | 100,300   |     |   | 0 |   |
| Other                  receivables (Note 5)                           |   |     | 144,107   |     |   | 256,475 |   |
| Investments                  in other companies (Note 25 - Exhibit C) |   |     | 390       |     |   | 378 |   |
| Supplies                                                              |   |     | 13,759    |     |   | 4,921 |   |
| Property,                  plant and equipment (Note 25 - Exhibit A)  |   |     | 3,092,709 |     |   | 2,925,422 |   |
| Total                  Non-Current Assets                             |   |     | 3,351,265 |     |   | 3,187,196 |   |
|                                                                  |   |     |           |     |   |  |   |
| **Total                  Assets**                                     |   |     | 3,847,606 |     |   | 3,534,663 |   |
|                                                                  |   |     |           |     |   |  |   |
| **CURRENT                  LIABILITIES**                              |   |     |           |     |   |  |   |
| Trade                  accounts payable (Note 6)                      |   |     | 316,152   |     |   | 267,640 |   |
| Loans                  (Note 7)                                       |   |     | 29,290    |     |   | 2,029 |   |
| Salaries                  and social security taxes (Note 8)          |   |     | 59,904    |     |   | 51,446 |   |
| Taxes                  (Note 9)                                       |   |     | 84,641    |     |   | 62,192 |   |
| Other                  liabilities (Note 10)                          |   |     | 9,710     |     |   | 26,380 |   |
| Accrued                  litigation (Note 25 - Exhibit E)             |   |     | 39,868    |     |   | 25,914 |   |
| Total                  Current Liabilities                            |   |     | 539,565   |     |   | 435,601 |   |
|                                                                  |   |     |           |     |   |  |   |
| **NON-CURRENT                  LIABILITIES**                          |   |     |           |     |   |  |   |
| Trade                  accounts payable (Note 6)                      |   |     | 35,466    |     |   | 31,250 |   |
| Loans                  (Note 7)                                       |   |     | 949,062   |     |   | 1,095,490 |   |
| Salaries                  and social security taxes (Note 8)          |   |     | 24,694    |     |   | 20,287 |   |
| Other                  liabilities (Note 10)                          |   |     | 281,395   |     |   | 241,079 |   |
| Accrued                  litigation (Note 25 - Exhibit E)             |   |     | 42,843    |     |   | 40,606 |   |
| Total                  Non-Current Liabilities                        |   |     | 1,333,460 |     |   | 1,428,712 |   |
| **Total                  Liabilities**                                |   |     | 1,873,025 |     |   | 1,864,313 |   |
|                                                                  |   |     |           |     |   |  |   |
| **SHAREHOLDERS'                  EQUITY (as per related statements)** |   |     | 1,974,581 |     |   | 1,670,350 |   |
|                                                                  |   |     |           |     |   |  |   |
| **Total                  Liabilities and Shareholders' Equity**       |   |     | 3,847,606 |     |   | 3,534,663 |   |

----

**EMPRESA        DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)**

**STATEMENTS        OF INCOME**

**FOR        THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005**

|                                                                                                                                                                                                                                                                                                    |   | **2007** |          | **2006** |   | **2005**    |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------------|----------|--------|-------------|--------|
| Net                  sales (Note 11)                                                                                                                                                                                                                                                                    |   |     | 1,981,928     |     |   | 1,378,326   |   |   | 1,262,210 |   |
| Electric                  power purchases                                                                                                                                                                                                                                                               |   |     | (889,885      | )        |   | (799,073    | )      |   | (757,675 | ) |
|                                                                                                                                                                                                                                                                                                    |   |     |               |     |   |             |   |   |  |   |
| **Gross                  margin**                                                                                                                                                                                                                                                                       |   |     | **1,092,043** |     |   | **579,253** |   |   | **504,535** |   |
|                                                                                                                                                                                                                                                                                                    |   |     |               |     |   |             |   |   |  |   |
| Transmission                  and distribution expenses (Note 25 - Exhibit H)                                                                                                                                                                                                                           |   |     | (417,553      | )        |   | (362,118    | )      |   | (346,132 | ) |
| Selling                  expenses (Note 25 - Exhibit H)                                                                                                                                                                                                                                                 |   |     | (124,656      | )        |   | (87,930     | )      |   | (85,967 | ) |
| Administrative                  expenses (Note 25 - Exhibit H)                                                                                                                                                                                                                                          |   |     | (120,633      | )        |   | (93,299     | )      |   | (72,874 | ) |
|                                                                                                                                                                                                                                                                                                    |   |     |               |     |   |             |   |   |  |   |
| **Net                  operating income (loss)**                                                                                                                                                                                                                                                        |   |     | **429,201**   |     |   | **35,906**  |   |   | **(438** | **)** |
|                                                                                                                                                                                                                                                                                                    |   |     |               |     |   |             |   |   |  |   |
| Financial                  income (expenses) and holding gains (losses)                                                                                                                                                                                                                                 |   |     |               |     |   |             |   |   |  |   |
| Generated                  by assets                                                                                                                                                                                                                                                                    |   |     |               |     |   |             |   |   |  |   |
| Exchange                  difference                                                                                                                                                                                                                                                                    |   |     | (855          | )        |   | 2,569       |   |   | 2,072 |   |
| Interest                                                                                                                                                                                                                                                                                                |   |     | 13,426        |     |   | 13,885      |   |   | 12,885 |   |
| Holding                  results                                                                                                                                                                                                                                                                        |   |     | 135           |     |   | 89          |   |   | (567 | ) |
| Generated                  by liabilities                                                                                                                                                                                                                                                               |   |     |               |     |   |             |   |   |  |   |
| Financial                  expenses (*)                                                                                                                                                                                                                                                                 |   |     | (21,042       | )        |   | (25,404     | )      |   | (14,130 | ) |
| Exchange                  difference                                                                                                                                                                                                                                                                    |   |     | (29,938       | )        |   | (13,318     | )      |   | (28,989 | ) |
| Interest                  (**)                                                                                                                                                                                                                                                                          |   |     | (74,508       | )        |   | (101,280    | )      |   | (119,542 | ) |
| Holding                  results                                                                                                                                                                                                                                                                        |   |     | 0             |     |   | 0           |   |   | (240 | ) |
|                                                                                                                                                                                                                                                                                                    |   |     |               |     |   |             |   |   |  |   |
| Adjustment                  to present value of the retroactive tariff increase arising from                  the                  application of the new electricity rate schedule and of the Payment                  Plan                  Agreement with the Province of Bs.As. (Notes 13 and 17.b) |   |     | (29,618       | )        |   | 0           |   |   | 0 |   |
| Gain                  on extinguishment of former debt (Note 3.k)                                                                                                                                                                                                                                       |   |     | 0             |     |   | 179,243     |   |   | 0 |   |
| Adjustment                  to present value of notes (Note 3.k)                                                                                                                                                                                                                                        |   |     | (21,495       | )        |   | 57,138      |   |   | 0 |   |
| Loss                  from the purchase and redemption of notes (Notes 3.k and 14)                                                                                                                                                                                                                      |   |     | (10,228       | )        |   | 0           |   |   | 0 |   |
| Adjustment                  to present value of purchased and redeemed notes                                                                                                                                                                                                                            |   |     | (8,632        | )        |   | 0           |   |   | 0 |   |
|                                                                                                                                                                                                                                                                                                    |   |     |               |     |   |             |   |   |  |   |
| Other                  income (expense), net (Note 12)                                                                                                                                                                                                                                                  |   |     | 996           |     |   | (22,944     | )      |   | (652 | ) |
|                                                                                                                                                                                                                                                                                                    |   |     |               |     |   |             |   |   |  |   |
| Income                  (loss) before taxes                                                                                                                                                                                                                                                             |   |     | 247,442       |     |   | 125,884     |   |   | (149,601 | ) |
| Income                  tax (Note 3.n)                                                                                                                                                                                                                                                                  |   |     | (124,984      | )        |   | 167,182     |   |   | 0 |   |
|                                                                                                                                                                                                                                                                                                    |   |     |               |     |   |             |   |   |  |   |
| **Net                  income (loss) for the year**                                                                                                                                                                                                                                                     |   |     | **122,458**   |     |   | **293,066** |   |   | **(149,601** | **)** |
|                                                                                                                                                                                                                                                                                                    |   |     |               |     |   |             |   |   |  |   |
| Earnings                  (losses) per common share                                                                                                                                                                                                                                                     |   |     | 0.14          |     |   | 0.35        |   |   | (0.18 | ) |

| Fees                    related to the Corporate Notes Issuance Program (Note 23)                              |   |   | (7,403  | )      |   | 0       |   |   | 0       |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Expense                    related to the public offering of capital stock (Notes 1 and                    15) |   |   | 0       |   |   | (10,604 | )      |   | 0       |   |
| Financial                    assistance Electricidad Argentina S.A. (Note 15)                                  |   |   | (6,219  | )      |   | (8,133  | )      |   | 0       |   |
| Withholdings                    income tax and other financial expense                                         |   |   | (7,420  | )      |   | (6,667  | )      |   | (14,130 | )      |
| Total                                                                                                          |   |   | (21,042 | )      |   | (25,404 | )      |   | (14,130 | )      |

----

**EMPRESA        DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)**

**STATEMENTS        OF CHANGES IN SHAREHOLDERS' EQUITY**

**FOR        THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005**

|                                                                                                                                                                                                                                                    |   | **2007**                                       |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|-------------|
|                                                                                                                                                                                                                                                    |   | **Shareholders'                contributions** |        | **Retained                earnings** |   |   |   |
|                                                                                                                                                                                                                                                    |   |                                           |        |   |   |   |   |   |   | **Appropriated** |   | **Unappropriated** |   |   |   |
|                                                                                                                                                                                                                                                    |   |                                           |        |   |   |   |   |   |   | **Retained** |   | **Retained** |   |   |   |
|                                                                                                                                                                                                                                                    |   | **Nominal**                                    |        | ** Adjustment** |   | ** Additional** |   |   |   | **Earnings** |   | **Earnings** |   |   |   |
|                                                                                                                                                                                                                                                    |   | **Value**                                      |        | **to** |   | **Paid-in** |   |   |   | (Note                26.II.m) |   | **Accumulated** |   |   |   |
|                                                                                                                                                                                                                                                    |   | (Note                16.a)                     |        | **Capital** |   | **Capital** |   | **Total** |   | **Legal                Reserve** |   | **Deficit** |   | **Total** |   |
|                                                                                                                                                                                                                                                    |   |                                           |        |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                as of December 31, 2004**                                                                                                                                                                                                      |   |                                           | **831,610** |   |   | **996,489** |   |   |   |   |   | **1,828,099** |   |   | **53,320** |   |   | **(354,534** | **)** |   | **1,526,885** |   |
|                                                                                                                                                                                                                                                    |   |                                           |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Net                loss for the year                                                                                                                                                                                                                    |   |                                           | -           |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (149,601 | ) |   | (149,601 | ) |
|                                                                                                                                                                                                                                                    |   |                                           |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Balance                as of December 31, 2005**                                                                                                                                                                                                      |   |                                           | **831,610** |   |   | **996,489** |   |   | **-** |   |   | **1,828,099** |   |   | **53,320** |   |   | **(504,135** | **)** |   | **1,377,284** |   |
|                                                                                                                                                                                                                                                    |   |                                           |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Net                income for the year                                                                                                                                                                                                                  |   |                                           | -           |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 293,066 |   |   | 293,066 |   |
|                                                                                                                                                                                                                                                    |   |                                           |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Balance                as of December 31, 2006**                                                                                                                                                                                                      |   |                                           | **831,610** |   |   | **996,489** |   |   | **-** |   |   | **1,828,099** |   |   | **53,320** |   |   | **(211,069** | **)** |   | **1,670,350** |   |
|                                                                                                                                                                                                                                                    |   |                                           |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Capital                increase resolved by the Board of Directors' meeting held on June                14,                2007, as per the powers granted by the Shareholders' Meeting of June                7,                2006 (Notes 1 and 16). |   |                                           | **74,845**  |   |   | - |   |   | **106,928** |   |   | **181,773** |   |   | - |   |   | - |   |   | 181,773 |   |
| Net                income for the year                                                                                                                                                                                                                  |   |                                           | -           |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 122,458 |   |   | 122,458 |   |
|                                                                                                                                                                                                                                                    |   |                                           |             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Balance                as of December 31, 2007**                                                                                                                                                                                                      |   |                                           | **906,455** |   |   | **996,489** |   |   | **106,928** |   |   | **2,009,872** |   |   | **53,320** |   |   | **-88,611** |   |   | **1,852,123** |   |

----

**EMPRESA        DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)**

**STATEMENTS        OF CASH FLOWS**

**FOR        THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005**

|                                                                                                                                                                                                                                                                                          |   | **2007** |         | **2006** |   | **2005**     |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------------|----------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                          |   |     |         |     |   |         |   |
| **Cash                flows from operating activities**                                                                                                                                                                                                                                       |   |     |         |     |   |         |   |
| Net                income (loss) for the year                                                                                                                                                                                                                                                 |   |     | 122,458      |     |   | 293,066      |   |   | (149,601 | ) |
|                                                                                                                                                                                                                                                                                          |   |     |              |     |   |              |   |   |  |   |
| **Adjustments                to reconcile net income (loss) to net cash flows provided by**                                                                                                                                                                                                   |   |     |              |     |   |              |   |   |  |   |
| **operating                activities**                                                                                                                                                                                                                                                       |   |     |              |     |   |              |   |   |  |   |
| Depreciation                of property, plant and equipment (Note 25 - Exhibit A)                                                                                                                                                                                                            |   |     | 174,357      |     |   | 178,980      |   |   | 178,443 |   |
| Retirement                of property, plant and equipment (Note 25 - Exhibit A)                                                                                                                                                                                                              |   |     | 1,105        |     |   | 650          |   |   | 894 |   |
| Gain                (loss) from investments in affiliated parties                                                                                                                                                                                                                             |   |     | (12          | )        |   | (10          | )      |   | 5 |   |
| Gain                on extinguishment of former debt (Note 3.k)                                                                                                                                                                                                                               |   |     | 0            |     |   | (179,243     | )      |   | 0 |   |
| Loss                from the purchase and redemption of notes (Notes 3.k and 14)                                                                                                                                                                                                              |   |     | 10,228       |     |   | 0            |   |   | 0 |   |
| Adjustment                to present value of purchased and redeemed notes                                                                                                                                                                                                                    |   |     | 8,632        |     |   | 0            |   |   | 0 |   |
| Adjustment                to present value of notes (Note 3.k)                                                                                                                                                                                                                                |   |     | 21,495       |     |   | (57,138      | )      |   | 0 |   |
| Exchange                difference, interest and penalties on loans                                                                                                                                                                                                                           |   |     | 69,541       |     |   | 49,061       |   |   | 138,975 |   |
| Supplies                recovered from third parties                                                                                                                                                                                                                                          |   |     | 0            |     |   | (5,782       | )      |   | 0 |   |
| Income                tax (Note 3.n)                                                                                                                                                                                                                                                          |   |     | 124,984      |     |   | (167,182     | )      |   | 0 |   |
| Increase                in trade receivables due to the unbilled portion of the retroactive                tariff                increase                                                                                                                                                     |   |     | (171,281     | )        |   | 0            |   |   | 0 |   |
| Adjustment                to present value of the retroactive tariff increase arising from                the                application of the new electricity rate schedule and of the Payment                Plan                Agreement with the Province of Bs.As. (Notes 13 and 17.b) |   |     | 29,618       |     |   | 0            |   |   | 0 |   |
|                                                                                                                                                                                                                                                                                          |   |     |              |     |   |              |   |   |  |   |
| **Changes                in assets and liabilities:**                                                                                                                                                                                                                                         |   |     |              |     |   |              |   |   |  |   |
| Increase                in trade receivables (net of the unbilled portion of the retroactive                tariff increase)                                                                                                                                                                  |   |     | (36,853      | )        |   | (39,009      | )      |   | (37,099 | ) |
| Net                (increase) in other receivables                                                                                                                                                                                                                                            |   |     | (8,385       | )        |   | (23,088      | )      |   | (27,152 | ) |
| (Increase)                Decrease in supplies                                                                                                                                                                                                                                                |   |     | (18,377      | )        |   | 1,433        |   |   | (5,411 | ) |
| Increase                in trade accounts payable                                                                                                                                                                                                                                             |   |     | 52,728       |     |   | 67,065       |   |   | 54,428 |   |
| Increase                in salaries and social security taxes                                                                                                                                                                                                                                 |   |     | 12,865       |     |   | 25,180       |   |   | 4,459 |   |
| Increase                (Decrease) in taxes                                                                                                                                                                                                                                                   |   |     | 22,449       |     |   | (5,695       | )      |   | 23,574 |   |
| Increase                in other liabilities                                                                                                                                                                                                                                                  |   |     | 17,748       |     |   | 91,667       |   |   | 36,791 |   |
| Net                increase in accrued litigation                                                                                                                                                                                                                                             |   |     | 16,191       |     |   | 9,537        |   |   | 7,659 |   |
|                                                                                                                                                                                                                                                                                          |   |     |              |     |   |              |   |   |  |   |
| Financial                interest paid (net of interest capitalized) (Note 18.b)                                                                                                                                                                                                              |   |     | (25,484      | )        |   | (26,668      | )      |   | (46,494 | ) |
| Financial                interest collected (Note 18.b)                                                                                                                                                                                                                                       |   |     | 3,175        |     |   | 2,175        |   |   | 2,038 |   |
| **Net                cash flows provided by operating activities**                                                                                                                                                                                                                            |   |     | **427,182**  |     |   | **214,999**  |   |   | **181,509** |   |
|                                                                                                                                                                                                                                                                                          |   |     |              |     |   |              |   |   |  |   |
| **Cash                flows from investing activities**                                                                                                                                                                                                                                       |   |     |              |     |   |              |   |   |  |   |
| Additions                of property, plant and equipment                                                                                                                                                                                                                                     |   |     | (336,851     | )        |   | (179,671     | )      |   | (124,482 | ) |
| **Net                cash flows used in investing activities**                                                                                                                                                                                                                                |   |     | **(336,851** | **)**    |   | **(179,671** | **)**  |   | **(124,482** | **)** |
|                                                                                                                                                                                                                                                                                          |   |     |              |     |   |              |   |   |  |   |
| **Cash                flows from financing activities**                                                                                                                                                                                                                                       |   |     |              |     |   |              |   |   |  |   |
| Decrease                in loans (Note 14)                                                                                                                                                                                                                                                    |   |     | (203,579     | )        |   | (310,794     | )      |   | 0 |   |
| Capital                increase (Note 1 and 16.a)                                                                                                                                                                                                                                             |   |     | 181,773      |     |   | 0            |   |   | 0 |   |
| **Net                cash flows used in financing activities**                                                                                                                                                                                                                                |   |     | **(21,806**  | **)**    |   | **(310,794** | **)**  |   | **0** |   |
|                                                                                                                                                                                                                                                                                          |   |     |              |     |   |              |   |   |  |   |
| **Increase                (Decrease) in Cash and Cash Equivalents**                                                                                                                                                                                                                           |   |     | **68,525**   |     |   | **(275,466** | **)**  |   | **57,027** |   |
| Cash                and Cash Equivalents at the beginning of year                                                                                                                                                                                                                             |   |     | 32,673       |     |   | 308,139      |   |   | 251,112 |   |
| **Cash                and Cash Equivalents at the end of year**                                                                                                                                                                                                                               |   |     | **101,198**  |     |   | **32,673**   |   |   | **308,139** |   |

----

**EMPRESA      DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. **

**(EDENOR      S.A.)**

**NOTES      TO THE FINANCIAL STATEMENTS**

**1.      **
**ORGANIZATION      AND START UP OF THE COMPANY**

----

*Ente      Nacional Regulador de la Electricidad)*

----

|   | a) | 51%                of the Company’s capital stock, represented by 462,292,111 Class “A”                shares, which have been pledged in favor of the Argentine Government                as                evidenced by the certificate issued by Caja de Valores, is held by                EASA, |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | 48.78%                of the Company’s capital stock, represented by 442,210,356 Class “B”                shares is traded in the market, |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | 0.22%                of the Company’s capital stock, represented by 1,952,604 Class “C” shares                is held by Banco Nación as trustee of the Employee Stock Ownership                Program, and |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | 19                and 10 Class “B” shares are held by NEV and EDFI,                respectively. |
|--------|----|--------------------------------------------------------------------------------------------------------------|

----

**2.      **
**BASIS      OF PRESENTATION OF THE FINANCIAL STATEMENTS**

**Financial      statements presentation**

----

| Year                       |   | Effect on deferred tax resultNominal value |    |
|----------------------------|--------|---------------------------------------------------------------------|---------|
| 2008                       |   |                                                                | 27,541  |   |
| 2009                       |   |                                                                | 26,396  |   |
| 2010                       |   |                                                                | 25,011  |   |
| 2011                       |   |                                                                | 24,084  |   |
| 2012                - 2016 |   |                                                                | 106,866 |   |
| 2017                - 2021 |   |                                                                | 88,058  |   |
| Remainder                  |   |                                                                | 140,921 |   |
| **Total**                  |   |                                                                | 438,877 |   |

**Consideration      of the effects of inflation**

**Changes      in Argentine GAAP**

|                                                         |   | 2007   |   | 2006   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|
| Cost                                                         |   |   | 1,125  |   |   | 813 |   |
| Interest                                                     |   |   | 2,874  |   |   | 1,816 |   |
| Amortization                of recognized net actuarial loss |   |   | 760    |   |   | 208 |   |
|                                                         |   |   | 4,759  |   |   | 2,837 |   |

----

|                                                                                                                           |   | 2007   |   | 2006   |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Payment                commitment under the personnel benefits plan at the beginning of                the                year |   |   | 15,352 |   |   | 9,703 |   |
| Cost                                                                                                                           |   |   | 1,125  |   |   | 813 |   |
| Interest                                                                                                                       |   |   | 2,874  |   |   | 1,816 |   |
| Actuarial                loss                                                                                                  |   |   | 761    |   |   | 3,703 |   |
| Benefits                paid to participating employees                                                                        |   |   | (1,029 | )      |   | (683 | ) |
| Payment                commitment under the personnel benefits plan at the end of the                year                      |   |   | 19,083 |   |   | 15,352 |   |
|                                                                                                                           |   |   |   |   |   |   |   |
|                                                                                                                           |   |   |   |   |   |   |   |
| Payment                commitment under the personnel benefits plan at the end of the                year                      |   |   | 19,083 |   |   | 15,352 |   |
| Unrecognized                net actuarial loss                                                                                 |   |   | (5,716 | )      |   | (5,714 | ) |
| Total                personnel benefits plan (pension plan) (Note 8)                                                           |   |   | 13,367 |   |   | 9,638 |   |

| Years ofretirement |   |   |   |
|-------------------------|--------|--------|--------|
| 2008                    |   |   | 2,480  |   |
| 2009                    |   |   | 2,553  |   |
| 2010                    |   |   | 3,054  |   |
| 2011                    |   |   | 3,389  |   |
| 2012                    |   |   | 4,070  |   |
| 2013-2017               |   |   | 14,787 |   |

|                                                         |   | 2008   |   |
|--------------------------------------------------------------|--------|--------|--------|
| Cost                                                         |   |   | 1,306  |   |
| Interest                                                     |   |   | 3,977  |   |
| Amortization                of recognized net actuarial loss |   |   | 761    |   |
|                                                         |   |   | 6,044  |   |

| Payment                commitment under the personnel benefits plan at the end of                2007 |   |   | 19,083 |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Effect                of 1% increase                                                                  |   |   | 18,050 |   |
| Effect                of 1% decrease                                                                  |   |   | 20,261 |   |

|                           |   | 2007   |   | 2006 |   |
|--------------------------------|--------|--------|--------|------|--------|
| Discount                rate   |   |   | 21     | %    |   | 19 | % |
| Salary                increase |   |   | 20     | %    |   | 15 | % |
| Inflation                      |   |   | 14     | %    |   | 12 | % |

----

**3.      **
**VALUATION      CRITERIA**

**a)        **
**Cash        and banks:**

|  | - | In                local currency: at nominal value. |
|--|---|-----------------------------------------------------|

|  | - | In                foreign currency: at the exchange rate in effect as of the end of                each                year. The corresponding detail is disclosed in Note 25 - Exhibit                G. |
|--|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**b) **
**Current        investments:**

|  | - | Time                deposits, which include the portion of interest income accrued through                the                end of each year; those denominated in foreign currency have been                valued                at the rate of exchange in effect as of the end of each                year, |
|--|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | Money                market funds, which have been valued at the prevailing market price                as of                the end of each year, and |
|--|---|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | Notes                receivable (Euro Commercial Paper), which have been valued at the                prevailing market price as of the end of the year translated into                pesos at                the rate of exchange in effect as of year-end. |
|--|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**c)        **
**Trade        receivables:**

|  | - | Services                rendered and billed but not collected, and services rendered but                unbilled                as of the end of each year, at nominal value, except for the ones                indicated in the following                paragraph; |
|--|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | Services                rendered but unbilled as of the end of the year ended December 31,                2007,                arising from the retroactive increase deriving from the application                of the                new electricity rate schedule (Note 17.b) have been valued on the                basis of                the best estimate of the amount to be collected, discounted at a                10.5%                annual nominal rate, which, in accordance with the Company’s criterion,                reasonably reflects market assessments of the time value of money                and                risks specific to the receivable. A similar procedure was followed                with                the amount included in the payment plan agreement signed with the                Province                of Buenos Aires under the Framework Agreement (Note                13). |
|--|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | are                net of an allowance for doubtful accounts, as described in more detail                in                paragraph i) of this Note. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | consider                the effects of that which is stated in Note                13. |
|--------|----|----------------------------------------------------------------------------------------|

**d)        **
**Other        receivables and liabilities (excluding loans):**

----

**e)          **
**Municipal          Bonds**

*Bonos      de Saneamiento Financiero Municipal*

**f)        **
**Supplies:**

**g)        **
**Non-current        investments:**

**h)        **
**Property,        plant and equipment:**

----

**i)        **
**Allowances        (Note 25 - Exhibit E):**

|  | · | for                doubtful accounts: it has been recorded to adjust the valuation of                trade                receivables and other receivables up to their estimated recoverable                value.                The amount of the allowance has been determined based on the historical                series of collections for services billed through the end of each                year and                collections subsequent thereto. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | for                impairment of value of deferred tax assets: as of December 31, 2007                and                2006 the Company has partially impaired the deferred tax asset with                a                valuation allowance. (Note 3.n) |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | for                impairment of value of Municipal Bonds: due to impairment indicators,                as                of December 31, 2006 the Company recorded an allowance to reduce                the value                of such bonds to their expected recoverable amount (Note                3.e). |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | for                impairment of value of Argentine bonds 2004: due to the public voluntary                debt swap, the Company assessed in 2004 an allowance for impairment                of                these bonds. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**j)        **
**Accrued        litigation:**

----

**k)        **
**Loans:**

**l)        **
**Shareholders'        equity accounts:**

**m)        **
**Statement        of income accounts:**

|  | - | The                accounts that accumulate monetary transactions for the 2007, 2006                and 2005                fiscal years have been disclosed at their nominal                values. |
|--|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | The                charges for non-monetary assets consumed have been valued at cost                restated                to reflect the effects of inflation on the basis of the date of                acquisition of such assets, as indicated in Note                2. |
|--|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | Financial                income (expense) and holding gains (losses) have been disclosed separately                under income (expense) generated by assets and by liabilities. |
|--|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | The                adjustment to present value of the notes is stated at nominal                value. |
|--|---|--------------------------------------------------------------------------------------------------------|

|  | - | The                gain on extinguishment of former debt of the 2006 fiscal year is                stated at                nominal value. |
|--|---|--------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | The                adjustment to present value of trade receivables related to both                the                application of the retroactive tariff increase agreed upon in the                Adjustment Agreement and the payment plan agreement signed with the                Province of Buenos Aires for amounts deriving from the Framework                Agreement                for the 2007 fiscal year is stated at nominal value. |
|--|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | The                adjustment to present value of purchased                and redeemed                notes for the 2007 fiscal year is stated at nominal                value. |
|--|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | The                loss from the purchase and redemption of notes for the 2007 fiscal                year is                stated at nominal value. |
|--|---|------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**n)        **
**Income        tax and tax on minimum presumed income:**

|                                                                                                              |   | **2007** |    | **2006** |   | **2005** |   |
|-------------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|----------|--------|
| Income                tax calculated at the tax rate in effect on the                income before taxes          |   |     | 86,605  |     |   | 44,060   |   |   | (52,361 | ) |
| Permanent                differences                                                                              |   |     |    |     |   |     |   |   |   |   |
| Adjustment                for inflation of property, plant and equipment                                          |   |     | 31,300  |     |   | 33,407   |   |   | 34,253 |   |
| Accruals                and other                                                                                 |   |     | 4,858   |     |   | 35,277   |   |   | 0 |   |
| Income                tax                                                                                         |   |     | 122,763 |     |   | 112,744  |   |   | (18,108 | ) |
| Increase                (Decrease) in the allowance for impairment of value of deferred tax                assets |   |     | 2,221   |     |   | (279,926 | )      |   | 18,108 |   |
| Income                tax for the year                                                                            |   |     | 124,984 |     |   | (167,182 | )      |   | 0 |   |

| **Allowance                for impairment of value of deferred tax assets**                                       |   |   |   |   |   |     |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|----------|--------|
| Balance                at beginning of year                                                                       |   |   | 32,261 |   |   | 312,187  |   |   | 294,079 |   |
| Increase                (Decrease) in the allowance for impairment of value of deferred tax                assets |   |   | 2,221  |   |   | (279,926 | )      |   | 18,108 |   |
| Balance                at end of year                                                                             |   |   | 34,482 |   |   | 32,261   |   |   | 312,187 |   |

----

|                                                                                                                                                                                                                     |   | **2007** |    | **2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|
| **Non-current                deferred tax assets**                                                                                                                                                                       |   |     |    |     |   |
| Tax-loss                carry forward                                                                                                                                                                                    |   |     | 42,798  |     |   | 143,886 |   |
| Allowance                for doubtful accounts                                                                                                                                                                           |   |     | 12,906  |     |   | 6,426 |   |
| Accruals                                                                                                                                                                                                                 |   |     | 45,926  |     |   | 93,179 |   |
| Adjustment                to present value of the retroactive tariff increase arising from                the                application of the new electricity rate schedule and other trade                receivables |   |     | 10,366  |     |   | 0 |   |
| Supplies                valuation                                                                                                                                                                                        |   |     | 50      |     |   | 159 |   |
|                                                                                                                                                                                                                     |   |     | 112,046 |     |   | 243,650 |   |
| **Non-current                deferred tax liabilities**                                                                                                                                                                  |   |     |    |     |   |   |   |
| Current                investments                                                                                                                                                                                       |   |     | (250    | )        |   | 0 |   |
| Property,                plant and equipment                                                                                                                                                                             |   |     | (22,642 | )        |   | (24,209 | ) |
| Adjustment                to present value of the notes                                                                                                                                                                  |   |     | (12,475 | )        |   | (19,998 | ) |
|                                                                                                                                                                                                                     |   |     | (35,367 | )        |   | (44,207 | ) |
|                                                                                                                                                                                                                     |   |     |    |     |   |   |   |
| **Net                deferred tax assets before allowance for impairment of value of deferred                tax assets**                                                                                                |   |     | 76,679  |     |   | 199,443 |   |
|                                                                                                                                                                                                                     |   |     |    |     |   |   |   |
| **Allowance                for impairment of value of deferred tax assets**                                                                                                                                              |   |     | (34,482 | )        |   | (32,261 | ) |
| **Net                deferred tax assets**                                                                                                                                                                               |   |     | 42,197  |     |   | 167,182 |   |

|                                                    |   | **Amount** |    | **Tax                rate****35%** |   | **Year****expiring** |   |
|---------------------------------------------------------|--------|------------|---------|------------------------------------|--------|----------------------|--------|
| Tax                loss carry forward 2002              |   |       | 98,519  |                               |   | 34,482               |   |   | 2007 |   |
| Tax                loss carry forward 2005              |   |       | 23,761  |                               |   | 8,316                |   |   | 2010 |   |
| Total                tax losses as of December 31, 2007 |   |       | 122,280 |                               |   | 42,798               |   |   |   |   |

**ñ)        **
**Operating        leases:**

----

|                                            |   | **2007** |      | **2006** |   | **2005**  |   |
|-------------------------------------------------|--------|----------|-----------|----------|--------|-----------|--------|
| 2006                                            |   |     | -         |     |   | -         |   |   | 1,574 |   |
| 2007                                            |   |     | -         |     |   | 2,569     |   |   | 1,434 |   |
| 2008                                            |   |     | 2,052     |     |   | 856       |   |   | 594 |   |
| 2009                                            |   |     | 179       |     |   | 180       |   |   | 39 |   |
| 2010                                            |   |     | 147       |     |   | 147       |   |   | 39 |   |
| 2011                                            |   |     | 147       |     |   | 147       |   |   | 39 |   |
| 2012                                            |   |     | 147       |     |   | 147       |   |   | 39 |   |
| 2013                                            |   |     | 147       |     |   | 147       |   |   | 39 |   |
| **Total                minimum lease payments** |   |     | **2,819** |     |   | **4,193** |   |   | **3,799** |   |

|                                     |   | **2007** |   | **2006** |   | **2005** |   |
|------------------------------------------|--------|----------|--------|----------|--------|----------|--------|
| **Total                rental expenses** |   |     | 2,405  |     |   | 2,624    |   |   | 3,531 |   |

|                                               |   | **2007** |       | **2006** |   | **2005**  |   |
|----------------------------------------------------|--------|----------|------------|----------|--------|-----------|--------|
| 2006                                               |   |     | -          |     |   | -         |   |   | 8,021 |   |
| 2007                                               |   |     | -          |     |   | 8,133     |   |   | 6,590 |   |
| 2008                                               |   |     | 9,680      |     |   | 987       |   |   | 30 |   |
| 2009                                               |   |     | 7,576      |     |   | 62        |   |   | 7 |   |
| 2010                                               |   |     | 14         |     |   | 0         |   |   | 0 |   |
| 2011                                               |   |     | 9          |     |   | 0         |   |   | 0 |   |
| 2012                                               |   |     | 9          |     |   | 0         |   |   | 0 |   |
| **Total                minimum lease collections** |   |     | **17,283** |     |   | **9,182** |   |   | **14,648** |   |

|                                             |   | **2007** |   | **2006** |   | **2005** |   |
|--------------------------------------------------|--------|----------|--------|----------|--------|----------|--------|
| **Total                rental income (Note 11)** |   |     | 10,745 |     |   | 14,315   |   |   | 8,312 |   |

**o)        **
**Labor        cost liabilities and Early retirements payable:**

----

|  | - | for                supplementary benefits of paid leaves of absence derived from accumulated                vacation, |
|--|---|-----------------------------------------------------------------------------------------------------------------------|

|  | - | for                seniority-based bonus to be granted to employees with a specified                number                of years of employment, as stipulated in collective bargaining agreements                in effect (as of December 31, 2007 and 2006, the accrual for such                bonuses                amounted to 5,684                and                4,847 respectively), and |
|--|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | for                other personnel benefits (pension plan) to be granted to employees                upon                retirement, as stipulated in collective bargaining agreements in                effect                (as of December 31, 2007 and 2006, the accrual for these benefits                amounted                to 13,367                and                9,638 respectively). |
|--|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**p)        **
**Customer        deposits and contributions:**

**Customer      deposits:**

**Customer      contributions:**

**q)        **
**Revenue        recognition:**

----

*Official      Gazette*

**r)        **
**Estimates:**

**s)        **
**Earnings        per common share:**

**t)        **
**Segment        information:**

----

**u)        **
**Risk        management:**

**v)        **
**Concentration        risks:**

**Related      to employees who are union members**

*Sindicato      de Luz y Fuerza de la Capital Federal*
*Asociación      de Personal Superior de Empresas de Energía*
*Sindicato      de Luz y Fuerza de la Capital Federal*
*Asociación      de Personal Superior de Empresas de Energía*

----

*Sindicato      de Luz y Fuerza de la Capital Federal*
*Asociación      de Personal Superior de Empresas de Energía*

**w)        **
**Foreign        currency translation/ transactions:**

**4.      **
**TRADE      RECEIVABLES**

|                                                                                                                                                                                     |   | **2007** |    | **2006** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|
| **Current:**                                                                                                                                                                             |   |     |    |     |   |
|                                                                                                                                                                                     |   |     |    |     |   |
| Receivables                from sales of electricity:                                                                                                                                    |   |     |    |     |   |
|                                                                                                                                                                                     |   |     |    |     |   |
| Billed                                                                                                                                                                                   |   |     | 177,263 |     |   | 112,706 |   |
|                                                                                                                                                                                     |   |     |    |     |   |   |   |
| Unbilled                                                                                                                                                                                 |   |     |    |     |   |   |   |
| Sales                of electricity                                                                                                                                                      |   |     | 123,641 |     |   | 92,803 |   |
| Retroactive                tariff increase arising from the application of the new electricity                rate schedule (Note 17.b item d)                                           |   |     | 44,101  |     |   | 0 |   |
| Adjustment                to present value of the retroactive tariff increase arising from                the application of the new electricity rate schedule (Note                3.c) |   |     | (2,526  | )        |   | 0 |   |
| Framework                Agreement (Notes 3.c and 13)                                                                                                                                    |   |     | 4,579   |     |   | 45,552 |   |
| Framework                Agreement - Payment plan agreement with the Province of Bs.                As. (Note 13)                                                                        |   |     | 13,557  |     |   | 0 |   |
| Adjustment                to present value of the Framework Agreement - Payment plan                agreement with the Province of Bs. As. (Note 3.c)                                    |   |     | (212    | )        |   | 0 |   |
| National                Fund of Electricity (Note 17.a)                                                                                                                                  |   |     | 3,036   |     |   | 23,015 |   |
| Cannon                payable for the expansion of the network, transportation and                others (Note 17.b)                                                                |   |     | 12,628  |     |   | 11,882 |   |
| In                litigation                                                                                                                                                             |   |     | 9,918   |     |   | 10,603 |   |
|                  Subtotal                                                                                                                                                           |   |     | 385,985 |     |   | 296,561 |   |
| Less:                                                                                                                                                                                    |   |     |    |     |   |   |   |
| Allowance                for doubtful accounts (Note 25 - Exhibit E)                                                                                                                     |   |     | (40,006 | )        |   | (25,623 | ) |
|                                                                                                                                                                                     |   |     | 345,979 |     |   | 270,938 |   |

----

|                                                                                                                                                                                    |   | **2007** |    | **2006** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|
| **Non-Current:**                                                                                                                                                                        |   |     |    |     |   |
| Receivables                from sales of electricity:                                                                                                                                   |   |     |    |     |   |
| Unbilled                                                                                                                                                                                |   |     |    |     |   |
| Retroactive                tariff increase arising from the application of the newelectricity                rate schedule (Note 17.b item d)                                           |   |     | 127,180 |     |   | 0 |   |
| Adjustment                to present value of the retroactive tariff increase arisingfrom                the application of the new electricity rate schedule (Note                3.c) |   |     | (26,880 | )        |   | 0 |   |
|                                                                                                                                                                                    |   |     | 100,300 |     |   | 0 |   |

**5.      **
**OTHER      RECEIVABLES**

|                                                                                                         |   | **2007** |    | **2006** |   |
|--------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|
| **Current:**                                                                                                 |   |     |    |     |   |
|                                                                                                         |   |     |    |     |   |
| Prepaid                expenses (1)                                                                          |   |     | 1,910   |     |   | 1,305 |   |
| Advances                to suppliers                                                                         |   |     | 224     |     |   | 1,082 |   |
| Advances                to personnel                                                                         |   |     | 685     |     |   | 238 |   |
| Related                parties (2) (Note 15)                                                                 |   |     | 448     |     |   | 4,877 |   |
| Prepaid                Technical Assistance Services (3)                                                     |   |     | 15,182  |     |   | 4,338 |   |
| Preliminary                attachments - ENRE - (Note 17.a)                                                  |   |     | 59      |     |   | 67 |   |
| Municipal                Bonds (Note 3.e)                                                                    |   |     | 0       |     |   | 11,836 |   |
| Allowance                for impairment of value of Municipal Bonds (Note 25 - Exhibit                E)     |   |     | 0       |     |   | (5,918 | ) |
| Other                debtors (4)                                                                             |   |     | 7,271   |     |   | 10,837 |   |
| Allowance                for other doubtful accounts (Note 25 - Exhibit E)                                   |   |     | (2,900  | )        |   | (2,300 | ) |
| Other                (5)                                                                                     |   |     | 3,111   |     |   | 3,859 |   |
|                                                                                                         |   |     | 25,990  |     |   | 30,221 |   |
| **Non-current:**                                                                                             |   |     |    |     |   |   |   |
|                                                                                                         |   |     |    |     |   |   |   |
|  Other                debtors (Note 16.c)                                                               |   |     | 0       |     |   | 3,077 |   |
| Tax                credit on minimum presumed income (Note 3.n)                                              |   |     | 101,910 |     |   | 86,031 |   |
| Net                deferred tax assets (Note 3.n)                                                            |   |     | 76,679  |     |   | 199,443 |   |
| Allowance                for impairment of value of deferred tax assets (Note 25 - Exhibit                E) |   |     | (34,482 | )        |   | (32,261 | ) |
| Other                                                                                                        |   |     | 0       |     |   | 185 |   |
|                                                                                                         |   |     | 144,107 |     |   | 256,475 |   |

|  | (1) | Includes                101 in foreign currency (Note 25 - Exhibit G) as of December 31,                2006. |
|--|-----|---------------------------------------------------------------------------------------------------------------|

|  | (2) | Includes                4,429 in foreign currency (Note 25 - Exhibit G) as of December 31,                2006. |
|--|-----|-----------------------------------------------------------------------------------------------------------------|

|  | (3) | In                foreign currency (Note 25 - Exhibit G) as of December 31, 2007 and                2006,                respectively. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|  | (4) | Includes                769                in                foreign currency (Note - 25 Exhibit G) as of December 31,                2007. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | (5) | Includes                754 in foreign currency (Note 25 - Exhibit G) as of December 31,                2006. |
|--|-----|---------------------------------------------------------------------------------------------------------------|

**6.      **
**TRADE      ACCOUNTS PAYABLE**

|                                                                        |   | **2007** |    | **2006** |   |
|-----------------------------------------------------------------------------|--------|----------|---------|----------|--------|
| **Current:**                                                                |   |     |    |     |   |
|                                                                        |   |     |    |     |   |
| Payables                for purchase of electricity and other purchases (1) |   |     | 221,098 |     |   | 158,371 |   |
| Unbilled                electric power purchases                            |   |     | 82,191  |     |   | 92,877 |   |
| Customer                contributions (Note 3.p)                            |   |     | 11,759  |     |   | 16,123 |   |
| Other                                                                       |   |     | 1,104   |     |   | 269 |   |
|                                                                        |   |     | 316,152 |     |   | 267,640 |   |
|                                                                        |   |     |    |     |   |   |   |
| **Non-Current:**                                                            |   |     |    |     |   |   |   |
|                                                                        |   |     |    |     |   |   |   |
| Customer                deposits (Note 3.p)                                 |   |     | 35,466  |     |   | 31,250 |   |

----

|   | (1) | Includes                34,633 and                16,271 in foreign currency (Note 25 - Exhibit G) as of December 31,                2007                and 2006, respectively. Also, includes balances with SACME S.A. for                757                and 676 as of December 31, 2007 and 2006, respectively and balances                with                Errecondo, Salaverri, Dellatorre, Gonazalez & Burgio for 74 and 16 as                of December 31, 2007 and 2006 (Note                15). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **7.** | **LOANS** |
|--------|-----------|

|                                                                                      |   | **2007** |   | **2006** |   |
|-------------------------------------------------------------------------------------------|--------|----------|--------|----------|--------|
| **Current:**                                                                              |   |     |   |     |   |
| Bank                overdraft:                                                            |   |     |   |     |   |
| Principal                                                                                 |   |     | 12,200 |     |   | 0 |   |
| Interest                                                                                  |   |     | 16     |     |   | 0 |   |
| Subtotal                                                                                  |   |     | 12,216 |     |   | 0 |   |
|                                                                                      |   |     |   |     |   |   |   |
| Notes:                                                                                    |   |     |   |     |   |   |   |
|  In                foreign currency (Note 25 - Exhibit G and Note                14) |   |     |   |     |   |   |   |
| Interest                (Note 14)                                                         |   |     | 17,074 |     |   | 2,029 |   |
|                                                                                      |   |     | 29,290 |     |   | 2,029 |   |

|                                                                               |   | **2007** |    | **2006** |   |
|------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|
|                                                                               |   |     |    |     |   |
| **Non-current:**                                                                   |   |     |    |     |   |
|                                                                               |   |     |    |     |   |
| Notes:                                                                             |   |     |    |     |   |
|  In                foreign currency (Note 25 - Exhibit G and Notes 14 and 23) |   |     |    |     |   |
| Fixed                Rate Notes - Class 7                                          |   |     | 692,779 |     |   | 0 |   |
| Fixed                and Incremental Rate Par Notes - Class A                      |   |     | 228,262 |     |   | 225,009 |   |
| Fixed                and Incremental Rate Par Notes - Class B                      |   |     | 23,810  |     |   | 153,986 |   |
| Floating                Rate Par Notes - Class A                                   |   |     | 39,854  |     |   | 38,753 |   |
| Fixed                and Incremental Rate Discount Notes - Class A                 |   |     | 0       |     |   | 466,409 |   |
| Fixed                and Incremental Rate Discount Notes - Class B                 |   |     | 0       |     |   | 268,471 |   |
| Subtotal                                                                           |   |     | 984,705 |     |   | 1,152,628 |   |
|  Adjustment                to present value of notes                     |   |     | (35,643 | )        |   | (57,138 | ) |
| Notes                at present value                                         |   |     | 949,062 |     |   | 1,095,490 |   |

**8.      **
**SALARIES      AND SOCIAL SECURITY TAXES**

|                                                |   | **2007** |   | **2006** |   |
|-----------------------------------------------------|--------|----------|--------|----------|--------|
| **Current:**                                        |   |     |   |     |   |
|                                                |   |     |   |     |   |
| Salaries                payable and accruals        |   |     | 51,870 |     |   | 44,423 |   |
| Social                Security (ANSES)              |   |     | 5,640  |     |   | 4,703 |   |
| Early                retirements payable (Note 3.o) |   |     | 2,394  |     |   | 2,320 |   |
|                                                |   |     | 59,904 |     |   | 51,446 |   |
| **Non-Current**(Note                3.o)**:**       |   |     |   |     |   |   |   |
|                                                |   |     |   |     |   |   |   |
| Other                personnel benefits (Note 2)    |   |     | 13,367 |     |   | 9,638 |   |
| Seniority-based                bonus                |   |     | 5,684  |     |   | 4,847 |   |
| Early                retirements payable            |   |     | 5,643  |     |   | 5,802 |   |
|                                                |   |     | 24,694 |     |   | 20,287 |   |

----

**9.      **
**TAXES      **

|                                                                     |   | **2007** |   | **2006** |   |
|--------------------------------------------------------------------------|--------|----------|--------|----------|--------|
| **Current:**                                                             |   |     |   |     |   |
|                                                                     |   |     |   |     |   |
| Provincial,                municipal and federal contributions and taxes |   |     | 25,212 |     |   | 19,568 |   |
| Value                Added Tax (VAT)                                     |   |     | 22,411 |     |   | 11,935 |   |
| Tax                on minimum presumed income                            |   |     | 6,786  |     |   | 6,507 |   |
| Withholdings                                                             |   |     | 5,077  |     |   | 4,894 |   |
| Municipal                taxes                                           |   |     | 20,823 |     |   | 15,044 |   |
| Other                                                                    |   |     | 4,332  |     |   | 4,244 |   |
|                                                                     |   |     | 84,641 |     |   | 62,192 |   |

**10.      **
**OTHER      LIABILITIES**

|                                                                                                                               |   | **2007** |    | **2006** |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|
| **Current:**                                                                                                                       |   |     |    |     |   |
|                                                                                                                               |   |     |    |     |   |
| Technical                Assistance (1) (Note 15)                                                                                  |   |     | 0       |     |   | 4,465 |   |
| Capital                expenditures fund – CAMMESA (Note 17.b)                                                          |   |     | 1,931   |     |   | 0 |   |
| Fees                related to the initial public offering of capital stock                (2)                                     |   |     | 818     |     |   | 3,820 |   |
| Fees                related to debt restructuring (Note 25 - Exhibit G)                                                            |   |     | 0       |     |   | 7,299 |   |
| Fees                related to the issuance of Corporate Notes (3) (Note 25 - Exhibit                G and                Note 23) |   |     | 4,176   |     |   | 0 |   |
| Program                for the rational use of electric power (PUREE)                                                              |   |     | 91      |     |   | 6,926 |   |
| Other                (4)                                                                                                           |   |     | 2,694   |     |   | 3,870 |   |
|                                                                                                                               |   |     | 9,710   |     |   | 26,380 |   |
| **Non-current:**                                                                                                                   |   |     |    |     |   |   |   |
| ENRE                penalties (Note 17 a and b)                                                                                    |   |     | 281,395 |     |   | 241,079 |   |

| (1) | In                  foreign currency (Note 25 - Exhibit G) as of December 31, 2006.                  The 4,465                  correspond to a balance with Electricidad Argentina S.A. as of                  December                  31, 2006 (Note 15).                                                                                                                           |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Includes                  818 and 3,764 in foreign currency (Note 25 - Exhibit G) as of December                  31,                  2007 and 2006, respectively.                                                                                                                                                                                                                     |
| (3) | In                  foreign currency (Note 25 - Exhibit G) as of December 31,                  2007.                                                                                                                                                                                                                                                                                    |
| (4) | Includes                  1,855 and 2,435 in foreign currency (Note 25 - Exhibit G) as of                  December                  31, 2007 and 2006, respectively. Also, includes balances with Errecondo,                  Salaverri, Dellatorre, Gonzalez & Burgio for 628 and 208 as of                  December 31, 2007 and 2006, respectively (Note                  15). |

**11.      **
**NET      SALES**

----

|                                      |   | **2007** |      | **2006** |   | **2005**  |   |
|-------------------------------------------|--------|----------|-----------|----------|--------|-----------|--------|
|                                      |   |     |      |     |   |      |   |
| Sales                of electricity (1)   |   |     | 1,948,737 |     |   | 1,347,295 |   |   | 1,238,241 |   |
| Late                payment charges  |   |     | 17,099    |     |   | 12,557    |   |   | 11,617 |   |
| Pole                leases           |   |     | 10,745    |     |   | 14,315    |   |   | 8,312 |   |
| Connection                charges    |   |     | 3,986     |     |   | 2,586     |   |   | 2,642 |   |
| Reconnection                charges       |   |     | 1,361     |     |   | 1,573     |   |   | 1,398 |   |
|                                      |   |     | 1,981,928 |     |   | 1,378,326 |   |   | 1,262,210 |   |

**12.      **
**OTHER      INCOME (EXPENSE) – NET**

|                                                                                                                     |   | **2007** |    | **2006** |   | **2005** |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|----------|--------|
|                                                                                                                     |   |     |    |     |   |     |   |
| Forgiveness                of operator's compensation (Note 15)                                                          |   |     | 0       |     |   | 0        |   |   | 25,852 |   |
| Non                operating income                                                                                      |   |     | 1,467   |     |   | 4,093    |   |   | 1,337 |   |
| Commissions                on municipal taxes collection                                                                 |   |     | 1,761   |     |   | 1,537    |   |   | 1,479 |   |
| Net                expense from technical services                                                                       |   |     | (1,770  | )        |   | (437     | )      |   | 995 |   |
| Voluntary                retirements and terminations                                                                    |   |     | (7,192  | )        |   | (14,122  | )      |   | (7,962 | ) |
| Severance                paid                                                                                            |   |     | (4,283  | )        |   | (3,019   | )      |   | (8,508 | ) |
| Accrued                litigation                                                                                        |   |     | (16,750 | )        |   | (13,400  | )      |   | (10,050 | ) |
| Supplies                recovered from third parties                                                                     |   |     | 0       |     |   | 5,782    |   |   | 0 |   |
| Rebate                of technical assistance services and financial expenses EDF International                (Note 15) |   |     | 14,845  |     |   | 0        |   |   | 0 |   |
| Income                from reimbursements of network replacement (Note 17.a)                                             |   |     | 7,203   |     |   | 0        |   |   | 0 |   |
| Disposal                of property, plant and equipment                                                                 |   |     | (1,105  | )        |   | (650     | )      |   | (335 | ) |
| Other                                                                                                                    |   |     | 7,180   |     |   | (2,728   | )      |   | (3,460 | ) |
|                                                                                                                     |   |     | 996     |     |   | (22,944  | )      |   | (652 | ) |

**13.      **
**FRAMEWORK      AGREEMENT**

~~s~~

----

*Official      Gazette*
*Official      Gazette*

*Official      Gazette*

----

**14.**
**RESTRUCTURING      OF FINANCIAL DEBT**

*cuerdo      Preventivo Extrajudicial)*

**The      Restructuring**

| · | If                  creditors holding at least 66% but less than 93% of the aggregate                  outstanding amount give their consent to the Restructuring, the                  Company,                  the Supporting Creditors and the APE Representative, on behalf                  of                  Consenting Creditors, will promptly execute the Restructuring Agreement,                  and the Company may, at its own option, either proceed with a Mandatory                  Exchange through the APE or an In-APE Exchange on the Consummation                  Date or                  on the In-APE Exchange Date, respectively, subject in each case                  to the                  fulfillment of the Conditions to the APE Restructuring                  Alternatives; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| · | If                  creditors holding at least 93% but less than 98% of the aggregate                  outstanding amount give their consent to the Restructuring, the                  Company                  may, at its own option, either proceed with an In-APE Exchange                  (subject to                  the fulfillment of the Conditions to the APE Restructuring Alternatives)                  on the In-APE Exchange Date or carry out the Voluntary Exchange                  Offer                  (subject to the fulfillment of the Conditions to the Voluntary                  Exchange                  Offer) on the Voluntary Exchange Date; or                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| · | If                  creditors holding at least 98% of the aggregate outstanding amount                  give                  their consent to the Restructuring, the Company will carry out                  the                  Voluntary Exchange Offer (subject to the fulfillment of the Conditions                  to                  the Voluntary Exchange Offer) on the Voluntary Exchange                  Date.                                                                                                                                                                                                                                                                                                                                                                                        |

----

| · | The                  Fixed Rate Par Option: For each US$ 1,000 principal amount of outstanding                  financial debt, creditors received Fixed Rate Par Notes for a nominal                  value of US$ 1,000. The amount of Fixed Rate Par Notes issued under                  the                  Restructuring was not subject to a maximum amount. Interest on                  Fixed Rate                  Par Notes will be payable semiannually in arrears at an annual                  fixed rate,                  as detailed in the table below, and principal will be due and payable                  in                  semiannual installments based on the amortization schedule detailed                  in the                  table below: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Year                          |   | Annual                  Interest Rate onFixed                  Rate Par Notes |   | Annually                  ScheduledAmortization |
|-------------------------------|--------|-------------------------------------------------------------------------------|--------|-------------------------------------------------|
| 1                             |   | 3.0%                                                                          |   | 0.0%                                            |
| 2                             |   | 4.0%                                                                          |   | 0.0%                                            |
| 3                             |   | 5.0%                                                                          |   | 0.0%                                            |
| 4                             |   | 6.0%                                                                          |   | 0.0%                                            |
| 5                             |   | 8.0%                                                                          |   | 0.0%                                            |
| 6                             |   | 9.0%                                                                          |   | 10.0%                                           |
| 7                             |   | 9.5%                                                                          |   | 10.0%                                           |
| 8                  through 11 |   | 10.0%                                                                         |   | 10.0%,                  10.0%, 10.0%, 50.0%     |

| · | The                  Floating Rate Par Option: For each US$ 1,000 principal amount of                  outstanding financial debt, creditors received Floating Rate Par                  Notes for                  a nominal value equal to (i) US$ 1,000 plus (ii) any accrued and                  unpaid                  interest as of December 31, 2005 (excluding penalty interest and                  additional amounts, if any) in respect of such US$ 1,000 principal                  amount                  of outstanding financial debt (or, in the case of Gain Trust Notes,                  any                  accrued and unpaid interest as of December 31, 2005 (excluding                  any penalty                  interest and additional amounts, if any) in respect of such US$                  1,000                  principal amount of Gain Trust Notes). A maximum of US$ 50 million                  principal amount of outstanding financial debt could be exchanged                  under                  this option. Interest on Floating Rate Par Notes will be payable                  semiannually in arrears at an annual rate equal to LIBOR plus a                  spread,                  and principal will be due and payable in semiannual installments                  based on                  the amortization schedule detailed in the table                  below: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Year                        |   | Annual                Spread Floating                Rate Par Notes |   | Annually                ScheduledAmortization                                 |
|-----------------------------|--------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|
| 1                           |   | 0.0%                                                                |   | 0.0%                                                                          |
| 2                           |   | 0.0%                                                                |   | 0.0%                                                                          |
| 3                           |   | 1.0%                                                                |   | 0.0%                                                                          |
| 4                through 6  |   | 1.5%                                                                |   | 0.0%,                0.0%, 5.0%                                               |
| 7                through 14 |   | 2.0%                                                                |   | 5.0%,                5.0%, 5.0%, 5.0%, 5.0% 10.0%,10.0%,                50.0% |

| · | The                  Combination Option: For each US$ 1,000 principal amount of outstanding                  financial debt, creditors received (i) a cash payment of US$ 283                  and (ii)                  Discount Notes for a nominal value of US$ 667. A fixed amount of                  US$ 360                  million principal amount of outstanding financial debt could be                  exchanged                  under this option. Interest on Discount Notes will be payable semiannually                  in arrears at an annual fixed rate, and principal will be due and                  payable                  in semiannual installments based on the amortization schedule detailed                  in                  the table below: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Year                         |   | Discount                  Applicable toAnnual                  Interest Rate |   | Annually                  ScheduledAmortization  |
|------------------------------|--------|------------------------------------------------------------------------------|--------|--------------------------------------------------|
| 1                            |   | 3.0%                                                                         |   | 0.0%                                             |
| 2                            |   | 3.5%                                                                         |   | 0.0%                                             |
| 3                            |   | 10.0%                                                                        |   | 5.0%                                             |
| 4                            |   | 11.0%                                                                        |   | 5.0%                                             |
| 5                  through 9 |   | 12.0%                                                                        |   | 5.0%,                  5.0%, 10.0%, 10.0%, 60.0% |

|                                    |   |   |                                                |                                                              |                                                                              |                                                                            |
|-----------------------------------------|--------|--------|-----------------------------------------------------|-------------------------------------------------------------------|-----------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| Type                                    |   | Class  | Debt                  structure in thousands of US$ | Debt                  purchase and redemption in thousands of US$ | Post-purchase                  and redemption debts structure in thousands of US$ | Balance                  as of December 31, 2007 (Note 7) in thousands of pesos |
|                                    |   |   |                                                |                                                              |                                                                              |                                                                            |
| Fixed                  Rate Par Note    |   | A      | 73.485                                              | (998)                                                             | 72.487                                                                            | 228.262                                                                         |
|                                    |   | B      | 50.289                                              | (42,728)                                                          | 7.561                                                                             | 23,810                                                                          |
| Floating                  Rate Par Note |   | A      | 12.656                                              | 0                                                                 | 12.656                                                                            | 39.854                                                                          |
| Discount                  Note          |   | A      | 152.322                                             | (152,322)                                                         | 0                                                                                 | 0                                                                               |
|                                    |   | B      | 87.678                                              | (87,678)                                                          | 0                                                                                 | 0                                                                               |
| Total                                   |   |   | 376,430                                             | (283,726)                                                         | 92.704                                                                            | 291.926                                                                         |

----

| **Year** |   | **Amount                  in****thousands                  of****US$** |   |
|----------|--------|------------------------------------------------------------------------|--------|
| 2011     |   |                                                                   | 8,638  |   |
| 2012     |   |                                                                   | 8,638  |   |
| 2013     |   |                                                                   | 8,638  |   |
| 2014     |   |                                                                   | 8,638  |   |
| 2015     |   |                                                                   | 8,638  |   |
| 2016     |   |                                                                   | 40,654 |   |
| 2017     |   |                                                                   | 1,266  |   |
| 2018     |   |                                                                   | 1,266  |   |
| 2019     |   |                                                                   | 6,328  |   |
|     |   |                                                                   | 92,704 |   |

|   | - | Based                on the level of excess cash (leverage ratio) and subject to maintaining                an                established minimum cash balance of US$ 15 million, the Company will                be                subject to the following conditions: |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The                Company may make permitted capital expenditures up to an agreed-upon                annual amount. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------|

----

|   | - | Upon                the occurrence of an Adverse Event, EDENOR, at its discretion, may                elect                to defer, reschedule and capitalize up to one year of principal                amortization payments and one year of interest payments on any or                all                series of notes by written notice to the holders on each payment                date or                prior thereto. This provision may be invoked only once in respect                of both                an Adverse Cash Flow Event and an Adverse Devaluation Event during                the                term of the Notes. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The                Company may incur additional indebtedness subject to certain conditions                that are described in the trust agreement for the issuance of the                corporate notes. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Restricted                Payments: No dividends shall be paid until April 24, 2008 or until                such                time when the Company’s Leverage Ratio is lower than 2.5, whichever occurs                first. Fees payable under the technical assistance agreement shall                not                exceed US$ 2 million. Payments to EASA shall not exceed US$ 2.5 million                in                any fiscal year. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The                Company may suspend compliance with any covenants provided that its                leverage ratio is equal to or lower than                2.5. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | In                the case that the Company carries out a primary equity public offering                and                as long as the Company’s Leverage ratio is higher than 2.5, the Company                shall be required to apply 25% of the net cash proceeds of the base                offering amount to purchase notes through market purchases, taking                into                account that the Company shall have a two-year period to make the                aforementioned purchases of notes through market purchases and the                Company                shall have no obligation to make the aforementioned purchases of                notes at                a price greater than the nominal value of the                Notes. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**15.      **
**BALANCES      AND TRANSACTIONS WITH RELATED PARTIES**

|                                                     |   | **2007** |    | **2006** |   |
|----------------------------------------------------------|--------|----------|---------|----------|--------|
| Other                receivables                (Note 5) |   |     |    |     |   |
| Electricidad                Argentina S.A.               |   |     | 0       |     |   | 4,429 |   |
| SACME                S.A.                                |   |     | 448     |     |   | 448 |   |
| **Total**                                                |   |     | **448** |     |   | **4,877** |   |

| Trade                accounts payable                (Note 6)          |   |   |     |   |   |     |   |
|------------------------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
| Errecondo,                Salaverri, Dellatorre, Gonzalez & Burgio |   |   | (74      | )      |   | (16      | )      |
| SACME                S.A.                                              |   |   | (757     | )      |   | (676     | )      |
| **Total**                                                              |   |   | **(831** | **)**  |   | **(692** | **)**  |

| Other                liabilities                (Note 10)              |   |   |     |   |   |
|------------------------------------------------------------------------|--------|--------|----------|--------|--------|
| Electricidad                Argentina S.A.                             |   |   | 0        |   |   | (4,465 | ) |
| Errecondo,                Salaverri, Dellatorre, Gonzalez & Burgio |   |   | (628     | )      |   | (208 | ) |
| **Total**                                                              |   |   | **(628** | **)**  |   | **(4,673** | **)** |

----

|                                                                   |   | **2007**     |         | **2006** |   | **2005**    |   |
|------------------------------------------------------------------------|--------|--------------|--------------|----------|--------|-------------|--------|
| Other                income                                            |   |         |         |     |   |        |   |
| Electricidad                Argentina S.A.                             |   |         | 8            |     |   | 4           |   |   | 117 |   |
| EDF                Global Solución                                |   |         | 0            |     |   | 0           |   |   | 80 |   |
| **Total**                                                              |   |         | **8**        |     |   | **4**       |   |   | **197** |   |
| Expenses                from services                                  |   |         |         |     |   |        |   |   |   |   |
| SACME                S.A.                                              |   |         | (3,337       | )        |   | (2,334      | )      |   | (1,954 | ) |
| EDF                Global Solución                                |   |         | 0            |     |   | (659        | )      |   | (4,161 | ) |
| Electricidad                Argentina S.A.                             |   |         | (275         | )        |   | 0           |   |   | (5,780 | ) |
| EDF                S.A (**)                                            |   |         | (3,727       | )        |   | (7,128      | )      |   | (26,912 | ) |
| Errecondo,                Salaverri, Delatorre, Gonzalez & Burgio  |   |         | 0            |     |   | (1,392      | )      |   | (300 | ) |
| Estudio                Beccar Varela                                   |   |         | 0            |     |   | (30         | )      |   | (6 | ) |
| **Total**                                                              |   |         | **(7,339**   | **)**    |   | **(11,543** | **)**  |   | **(39,113** | **)** |
| *Financial                expenses, interest and penalties*            |   |         |         |     |   |        |   |   |   |   |
| EDF                International (**)                                  |   |         | 0            |     |   | (7,873      | )      |   | (18,752 | ) |
| Electricidad                Argentina S.A.                             |   |         | (6,219       | )        |   | (8,133      | )      |   | 0 |   |
| Errecondo,                Salaverri, Dellatorre, Gonzalez & Burgio |   |         | (4,352       | )        |   | (244        | )      |   | 0 |   |
| Estudio                Beccar Varela                                   |   |         | 0            |     |   | (245        | )      |   | 0 |   |
| **Total**                                                              |   |         | **(10,571**  | **)**    |   | **(16,495** | **)**  |   | **(18,752** | **)** |
|                                                                   |   |         |         |     |   |        |   |   |   |   |
| *Financial                debt restructuring result*                   |   |         |         |     |   |        |   |   |   |   |
| EDF                International (**)                                  |   |         | **0**        |     |   | **38,114**  |   |   | **0** |   |
|                                                                   |   |         |         |     |   |        |   |   |   |   |
| *Adjustment                to present value of notes (*)*              |   |         |         |     |   |        |   |   |   |   |
| EDF                International (**)                                  |   |    |    |     |   | **12,658**  |   |   | **0** |   |

**Operating      and Technical Assistance Agreements **

----

**Agreement      with Electricidad Argentina S.A. (controlling company)**

----

**Agreement      with Comunicaciones y Consumos S.A.**

**Agreement      with Préstamos y Servicios S.A.**

**Agreement      with EDF Global Solución S.A. **

----

**16.      **
**CAPITAL      STOCK**

**a)          **
**General          **

**b)            **
**Restriction            on the transfer of the Company’s common shares**

**c)            **
**Employee            Stock Ownership Program (ESOP)**

----

*Fondo      de Garantía y Recompra*

**17.      **
**REGULATORY      FRAMEWORK**

**a)            **
**General            **

|   | 1. | Deviation                from quality levels of technical product, as measured by voltage                levels                and network variations; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Deviation                from quality levels of technical service, as measured by the average                interruption frequency per Kilovatios (KVA) and total interruption                time                per KVA; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3. | Deviation                from quality levels of commercial service, as measured by the number                of                claims and complaints made by customers, service connection times,                the                number of estimated bills and billing                mistakes; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Failure                to comply with information gathering and processing requirements                so as to                evaluate the quality of both the technical product and the technical                service; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 5. | Failure                to comply with public safety                regulations.  |
|--------|----|---------------------------------------------------------------------------------------|

*Official      Gazette*

----

**b)              **
**Concession              **

| i)   | the                  implementation of a Temporary Tariff Regime (RTT) effective as                  from                  November 1, 2005, including a 23% average increase in the distribution                  margin, which may not result in an increase in the average tariff                  of more                  than 15%, and an additional 5% average increase in the value added                  distribution (VAD), allocated to certain specified capital expenditures;                    |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ii)  | the                  requirement that during the term of said temporary tariff regime,                  dividend                  payment be subject to the approval of the regulatory                  authority;                                                                                                                                                                                                                                                                                             |
| iii) | the                  establishment of a “social tariff” for the needy and the levels of quality                  of the service to be rendered;                                                                                                                                                                                                                                                                                                                                                    |
| iv)  | the                  suspension of the claims and legal actions filed by the Company                  and its                  shareholders in national or foreign courts due to the effects caused                  by                  the Economic Emergency Law;                                                                                                                                                                                                                                           |
| v)   | the                  carrying out of a Revision of the Company Tariff Structure (RTI)                  which                  will result in a new tariff regime that will go into effect on                  a gradual                  basis and remain in effect for the following 5 years. In accordance                  with                  the provisions of Law N° 24,065, the National Electric Power Regulatory                  Authority will be in charge of such                  review; |

----

| vi)   | the                  implementation of a minimum investment plan in the electric network                  for an                  amount of 178.8 million to be fulfilled by EDENOR during 2006,                  plus an                  additional investment of 25.5 million should it be required (item                  f                  below);                                                                                                                                                                                                                                                                                                                                                      |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| vii)  | the                  adjustment of the penalties imposed by the ENRE that are payable                  to                  customers as discounts, which were notified by such regulatory                  agency                  prior to January 6,  2002 as well as of those that have been                  notified, or whose cause or origin has arisen in the period between                  January 6, 2002 and the date on which the Adjustment Agreement                  goes into                  effect;                                                                                                                                                                                 |
| viii) | the                  waiver of the penalties imposed by the ENRE that are payable to                  the                  Argentine State, which have been notified, or their cause or origin                  has                  arisen in the period between January 6, 2002 and the date on which                  the                  Adjustment Agreement goes into effect;                                                                                                                                                                                                                                                                                                                          |
| ix)   | the                  payment of the penalties imposed by the ENRE, which are described                  in                  paragraph vii above, in fourteen semiannual installments, which                  represent                  approximately two-thirds of the penalties imposed by the ENRE before                  January 6, 2002 as well as of those that have been notified, or                  whose                  cause or origin has arisen in the period between January 6, 2002                  and the                  date on which the Adjustment Agreement goes into effect, subject                  to                  compliance with certain                  requirements. |

*Official      Gazette*

*Official      Gazette*

| a) | A                  23% average increase in distribution costs, service connection                  costs and                  service reconnection costs in effect which the Company collects                  as the                  holder of the concession of the public service of electric power                  distribution, except for the residential tariffs;                                                                                                                                                                                           |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b) | Implementation                  of an additional 5% average increase in distribution costs, to                  be applied                  to the execution of the works and infrastructure plan detailed                  in Appendix                  II of the Adjustment Agreement. In this regard, the Company has                  set up the                  required fund, which as of December 31, 2007 amounts to 12,420.                  This                  amount is net of the amounts transferred to CAMMESA for                  20,479;        |
| c) | Implementation                  of the Cost Monitoring Mechanism (MMC) contemplated in Appendix                  I of the                  Adjustment Agreement, which for the six-month period beginning                  November 1,                  2005 and ending April 30, 2006, shows a percentage of 8.032%. This                  percentage will be applied to non-residential consumption recorded                  from                  May 1, 2006 through January 31, 2007;                                                                          |
| d) | Invoicing                  in 55 equal and consecutive monthly installments of the differences                  arising from the application of the new electricity rate schedule                  for                  non-residential consumption recorded from November 1, 2005 through                  January                  31, 2007 (items i) and ii) above) and from May 1, 2006 through                  January 31,                  2007 (item iii) above);                                                                                            |
| e) | Invoicing                  of the differences corresponding to deviations between foreseen                  physical                  transactions and those effectively carried out and of other concepts                  related to the Wholesale Electric Power Market (MEM), such as the                  Specific                  fee payable for the expansion of the network, Transportation and                  Others,                  included in Trade Receivables under Receivables from sales of electricity                  as Unbilled (Note 4); |
| f) | Presentation,                  within a period of 45 calendar days from the issuance of this resolution,                  of an adjusted annual investment plan, in physical and monetary                  values, in                  compliance with the requirements of the Adjustment Agreement.                                                                                                                                                                                                                                                                 |

----

*Official      Gazette*

*Official      Gazette*

**c)      Concession of the use of real property**

----

**18.      **
**CASH      FLOW INFORMATION**

**a)**
**Cash      and cash equivalents:**

|                                                                          |   | **As                of****December****31,                2007** |    | **As                of****December****31,                2006** |   | **As                of****December****31,                2005** |   |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|---------|-----------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|
| Cash                and Banks                                                 |   |                                                            | 3,459   |                                                            |   | 481                                                             |   |   | 11,659 |   |
| Time                deposits                                                  |   |                                                            | 12,087  |                                                            |   | 1,360                                                           |   |   | 278,238 |   |
| Money                market funds                                             |   |                                                            | 0       |                                                            |   | 30,832                                                          |   |   | 18,242 |   |
| Notes                receivable (Euro Commercial Paper)                       |   |                                                            | 85,652  |                                                            |   | 0                                                               |   |   | 0 |   |
| Total                cash and cash equivalents in the Statement of Cash Flows |   |                                                            | 101,198 |                                                            |   | 32,673                                                          |   |   | 308,139 |   |

**b)**
**Interest      paid and collected: **

|                                              |   | **For                the years ended****December                31,** |    |
|---------------------------------------------------|--------|-----------------------------------------------------------------------|---------|
|                                              |   | **2007**                                                              |    | **2006** |   | **2005** |   |
| Interest                paid during the year (*)  |   |                                                                  | (38,149 | ) |   | (35,951 | ) |   | (46,494 | ) |
| Interest                collected during the year |   |                                                                  | 3,175   |   |   | 2,175 |   |   | 2,038 |   |

**19.      **
**INSURANCE      COVERAGE**

| **Risk                covered**                                    |   | **Amount                insured** |
|--------------------------------------------------------------------|--------|-----------------------------------|
|                                                               |   |                              |
| Comprehensive                (1)                                   | US$    | 417,516,597                       |
| Mandatory                life insurance                            | $      | 17,570,250                        |
| Theft                of securities                                 | US$    | 100,000                           |
| Vehicles                (theft, third party liability and damages) | $      | 7,719,700                         |
| Land                freight                                        | US$    | 2,000,000                         |
| Imports                freight                                     | $      | 2,250,000                         |

----

|   | (1) | Includes:                fire, partial theft, tornado, hurricane, earthquake, earth tremors,                flooding and debris removal from facilities on facilities providing                actual                service, except for high, medium and low voltage                networks. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**20.      **
**CLAIM      OF THE PROVINCE OF BUENOS AIRES BOARD OF ELECTRIC      POWER**

**21.      **
**LEGAL      ACTION FOR ALLEGED ENVIRONMENTAL POLLUTION**

*Tribunal      de Casación*

**22.      **
**RESTRICTIONS      ON THE DISTRIBUTION OF EARNINGS**

----

**23.      **
**CORPORATE      NOTES PROGRAM**

*Main      Covenants:*

----

|  | (a) | The                      Company’s long-term debt rating is raised to Investment Grade,                      or |
|--|-----|-----------------------------------------------------------------------------------------------------------------------|

|  | (b) | The                      Company’s Level of Indebtedness is equal to or lower than                      2.5. |
|--|-----|--------------------------------------------------------------------------------------------------------------------|

----

| **24.** | **BREAKDOWN                OF TEMPORARY INVESTMENTS, RECEIVABLES AND LIABILITIES BY****COLLECTION                AND PAYMENT TERMS** |
|---------|--------------------------------------------------------------------------------------------------------------------------------------|

| **Term**                                  |   | **Investments** |   | **Receivables** |   | **Loans** |   | **Other payables** |    |
|-------------------------------------------|--------|-----------------|--------|-----------------|--------|-----------|--------|-------------------------|---------|
|                                      |   |            |   | (1)             |   |      |   | (2)                     |    |
|                                      |   |            |   |            |   |      |   |                    |    |
| With                no explicit due date  |   |            | 0      |            |   | 0         |   |                    | 0       |   |   | 281,395 |   |
|                                      |   |            |   |            |   |      |   |                    |    |   |   |   |   |
| With                due date              |   |            |   |            |   |      |   |                    |    |   |   |   |   |
|                                      |   |            |   |            |   |      |   |                    |    |   |   |   |   |
| Past                due:                  |   |            |   |            |   |      |   |                    |    |   |   |   |   |
|                                      |   |            |   |            |   |      |   |                    |    |   |   |   |   |
| Up                to three months         |   |            | 0      |            |   | 50,014    |   |                    | 0       |   |   | 0 |   |
| From                three to six months   |   |            | 0      |            |   | 10,359    |   |                    | 0       |   |   | 0 |   |
| From                six to nine months    |   |            | 0      |            |   | 5,818     |   |                    | 0       |   |   | 0 |   |
| From                nine to twelve months |   |            | 0      |            |   | 5,006     |   |                    | 0       |   |   | 0 |   |
| Over                one year              |   |            | 0      |            |   | 100,935   |   |                    | 0       |   |   | 0 |   |
| Total                past due             |   |            | 0      |            |   | 172,132   |   |                    | 0       |   |   | 0 |   |
|                                      |   |            |   |            |   |      |   |                    |    |   |   |   |   |
|                                      |   |            |   |            |   |      |   |                    |    |   |   |   |   |
| To                become due:             |   |            |   |            |   |      |   |                    |    |   |   |   |   |
|                                      |   |            |   |            |   |      |   |                    |    |   |   |   |   |
| Up                to three months         |   |            | 97,739 |            |   | 231,155   |   |                    | 29,290  |   |   | 447,593 |   |
| From                  three to six months |   |            | 0      |            |   | 3,964     |   |                    | 0       |   |   | 13,794 |   |
| From                six to nine months    |   |            | 0      |            |   | 3,808     |   |                    | 0       |   |   | 4,511 |   |
| From                nine to twelve months |   |            | 0      |            |   | 3,816     |   |                    | -       |   |   | 4,510 |   |
| Over                one year              |   |            | 0      |            |   | 278,889   |   |                    | 949,062 |   |   | 60,160 |   |
| Total                to become due        |   |            | 97,739 |            |   | 521,632   |   |                    | 978,352 |   |   | 530,568 |   |
|                                      |   |            |   |            |   |      |   |                    |    |   |   |   |   |
| Total                with due date        |   |            | 97,739 |            |   | 693,764   |   |                    | 978,352 |   |   | 530,568 |   |
|                                      |   |            |   |            |   |      |   |                    |    |   |   |   |   |
| Total                                     |   |            | 97,739 |            |   | 693,764   |   |                    | 978,352 |   |   | 811,963 |   |

|  | (1) | Excludes                  allowances |
|--|-----|--------------------------------------|

|  | (2) | Comprises                  total liabilities except accrued litigation and debt                  notes. |
|--|-----|---------------------------------------------------------------------------------------------------------|

----

**25.**
**OTHER      INFORMATION**

| **EMPRESA                  DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)** |
|----------------------------------------------------------------------------------------|
|                                                                                   |   |   |   |   |   |   |   |   |   |
| **FINANCIAL                  STATEMENTS AS OF DECEMBER 31, 2007 AND 2006**             |
|                                                                                   |   |   |   |   |   |   |   |   |  **EXHIBIT                  A****Page                  1 of 2** |
| **PROPERTY,                  PLANT AND EQUIPMENT**                                     |   |

|                                                      |   | **Original                value**       |      | **Depreciation** |   | **Net**         |   |
|-----------------------------------------------------------|--------|-----------------------------------------|-----------|------------------|--------|-----------------|--------|
| **MAIN                ACCOUNT**                      |   | **At                beginning of year** |      | **Additions**    |   | **Retirements** |   | **Transfers** |   | **At                end of year** |   | **At                beginning of year** |   | ** Retirements** |   | **For                the year** |   | **Annual                rate** |   | **Useful                lives** |   | **At                end of year** |   | **book                value 2007** |   |
| **FACILITIES                IN SERVICE**                  |   |                                    |      |             |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Substations                                               |   |                                    | 849,840   |             |   | 0               |   |   | 0 |   |   | 22,725 |   |   | 872,565 |   |   | 284,103 |   |   | 0 |   |   | 26,064 |   |   | 3                - 4 | % |   | 25-35 |   |   | 310,167 |   |   | 562,398 |   |
| High                voltage networks                      |   |                                    | 343,107   |             |   | 0               |   |   | (777 | ) |   | 39,576 |   |   | 381,906 |   |   | 122,853 |   |   | (367 | ) |   | 11,113 |   |   | 3                - 4 | % |   | 25-35 |   |   | 133,599 |   |   | 248,307 |   |
| Medium                voltage networks                    |   |                                    | 748,656   |             |   | 0               |   |   | (59 | ) |   | 25,331 |   |   | 773,928 |   |   | 275,357 |   |   | (34 | ) |   | 24,192 |   |   | 3                - 4 | % |   | 25-35 |   |   | 299,515 |   |   | 474,413 |   |
| Low                voltage networks                       |   |                                    | 1,628,179 |             |   | 0               |   |   | (740 | ) |   | 30,704 |   |   | 1,658,143 |   |   | 878,202 |   |   | (270 | ) |   | 58,794 |   |   | 4                - 5 | % |   | 20-25 |   |   | 936,726 |   |   | 721,417 |   |
| Transformation                chambers and platforms      |   |                                    | 460,791   |             |   | 0               |   |   | 0 |   |   | 30,368 |   |   | 491,159 |   |   | 175,334 |   |   | 0 |   |   | 15,857 |   |   | 3                - 4 | % |   | 25-33 |   |   | 191,191 |   |   | 299,968 |   |
| Meters                                                    |   |                                    | 546,887   |             |   | 0               |   |   | 0 |   |   | 36,483 |   |   | 583,370 |   |   | 211,057 |   |   | 0 |   |   | 24,109 |   |   | 4                - 5 | % |   | 20-25 |   |   | 235,166 |   |   | 348,204 |   |
| Buildings                                                 |   |                                    | 76,215    |             |   | 0               |   |   | 0 |   |   | 1,364 |   |   | 77,579 |   |   | 19,955 |   |   | 0 |   |   | 1,098 |   |   | 2                - 3 | % |   | 33-45 |   |   | 21,053 |   |   | 56,526 |   |
| Communications                network and facilities      |   |                                    | 83,637    |             |   | 0               |   |   | 0 |   |   | 586 |   |   | 84,223 |   |   | 48,273 |   |   | 0 |   |   | 4,327 |   |   | 4                - 5 | % |   | 20-25 |   |   | 52,600 |   |   | 31,623 |   |
| Total                facilities in service                |   |                                    | 4,737,312 |             |   | 0               |   |   | (1,576 | ) |   | 187,137 |   |   | 4,922,873 |   |   | 2,015,134 |   |   | (671 | ) |   | 165,554 |   |   |  |   |   |  |   |   | 2,180,017 |   |   | 2,742,856 |   |
| **FURNITURE,                TOOLS AND EQUIPMENT**         |   |                                    |           |             |   |            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Furniture,                equipment and software projects |   |                                    | 161,913   |             |   | 6,295           |   |   | 0 |   |   | 0 |   |   | 168,208 |   |   | 151,031 |   |   | 0 |   |   | 6,998 |   |   | 12-13 | % |   | 7-8 |   |   | 158,029 |   |   | 10,179 |   |
| Tools                and other                            |   |                                    | 44,922    |             |   | 257             |   |   | 0 |   |   | 0 |   |   | 45,179 |   |   | 41,213 |   |   | 0 |   |   | 1,235 |   |   | 10-11 | % |   | 9-10 |   |   | 42,448 |   |   | 2,731 |   |
| Transportation                equipment                   |   |                                    | 15,066    |             |   | 664             |   |   | (364 | ) |   | 0 |   |   | 15,366 |   |   | 13,376 |   |   | (164 | ) |   | 570 |   |   | 20 | % |   | 5 |   |   | 13,782 |   |   | 1,584 |   |
| Total                furniture, tools and equipment       |   |                                    | 221,901   |             |   | 7,216           |   |   | (364 | ) |   | 0 |   |   | 228,753 |   |   | 205,620 |   |   | (164 | ) |   | 8,803 |   |   |  |   |   |  |   |   | 214,259 |   |   | 14,494 |   |
| Total                assets subject to depreciation       |   |                                    | 4,959,213 |             |   | 7,216           |   |   | (1,940 | ) |   | 187,137 |   |   | 5,151,626 |   |   | 2,220,754 |   |   | (835 | ) |   | 174,357 |   |   |  |   |   |  |   |   | 2,394,276 |   |   | 2,757,350 |   |
| **CONSTRUCTION                IN PROCESS**                |   |                                    |           |             |   |            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Transmission                                              |   |                                    | 114,270   |             |   | 100,609         |   |   | 0 |   |   | (62,301 | ) |   | 152,578 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | - |   |   |  |   |   | 0 |   |   | 152,578 |   |
| Distribution                and other                     |   |                                    | 72,693    |             |   | 234,924         |   |   | 0 |   |   | (124,836 | ) |   | 182,781 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | - |   |   |  |   |   | 0 |   |   | 182,781 |   |
| Total                construction in process              |   |                                    | 186,963   |             |   | 335,533         |   |   | 0 |   |   | (187,137 | ) |   | 335,359 |   |   | 0 |   |   | 0 |   |   | 0 |   |   |  |   |   |  |   |   | 0 |   |   | 335,359 |   |
| Total                2007                                 |   |                                    | 5,146,176 |             |   | 342,749         |   |   | (1,940 | ) |   | 0 |   |   | 5,486,985 |   |   | 2,220,754 |   |   | (835 | ) |   | 174,357 |   |   |  |   |   |  |   |   | 2,394,276 |   |   | 3,092,709 |   |

----

| **EMPRESA                DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)** |   |
|--------------------------------------------------------------------------------------|--------|
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **FINANCIAL                STATEMENTS AS OF DECEMBER 31, 2006 AND 2005**             |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   **EXHIBIT                A****Page                2 of 2 ** |
| **PROPERTY,                PLANT AND EQUIPMENT**                                     |   |  |

|                                                      |   | **Original                value**       |      | **Depreciation** |   | **Net**          |   | **Net**       |   |
|-----------------------------------------------------------|--------|-----------------------------------------|-----------|------------------|--------|------------------|--------|---------------|--------|
| **MAIN                ACCOUNT**                      |   | **At                beginning of year** |      | **Additions**    |   | **Retire-ments** |   | **Transfers** |   | **At                end of year** |   | **At                beginning of year** |   | **Retire-ments** |   | **For                the year** |   | **Annual                rate** |   | **Useful                lives** |   | **At                end of year** |   | **book                value 2006** |   | **book                value 2005** |   |
| **FACILITIES                IN SERVICE**                  |   |                                    |      |             |   |             |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Substations                                               |   |                                    | 836,488   |             |   | 0                |   |          | 0      |   |   | 13,352 |   |   | 849,840 |   |   | 258,469 |   |   | 0 |   |   | 25,634 |   |   | 3                - 4 | % |   | 25-35 |   |   | 284,103 |   |   | 565,737 |   |   | 578,019 |   |
| High                voltage networks                      |   |                                    | 334,438   |             |   | 0                |   |          | 0      |   |   | 8,669 |   |   | 343,107 |   |   | 112,232 |   |   | 0 |   |   | 10,621 |   |   | 3                - 4 | % |   | 25-35 |   |   | 122,853 |   |   | 220,254 |   |   | 222,206 |   |
| Medium                voltage networks                    |   |                                    | 729,954   |             |   | 0                |   |          | (361   | ) |   | 19,063 |   |   | 748,656 |   |   | 251,714 |   |   | (105 | ) |   | 23,748 |   |   | 3                - 4 | % |   | 25-35 |   |   | 275,357 |   |   | 473,299 |   |   | 478,240 |   |
| Low                voltage networks                       |   |                                    | 1,592,898 |             |   | 0                |   |          | (915   | ) |   | 36,196 |   |   | 1,628,179 |   |   | 814,680 |   |   | (539 | ) |   | 64,061 |   |   | 4                - 5 | % |   | 20-25 |   |   | 878,202 |   |   | 749,977 |   |   | 778,218 |   |
| Transformation                chambers and platforms      |   |                                    | 430,609   |             |   | 0                |   |          | (22    | ) |   | 30,204 |   |   | 460,791 |   |   | 160,060 |   |   | (4 | ) |   | 15,278 |   |   | 3                - 4 | % |   | 25-33 |   |   | 175,334 |   |   | 285,457 |   |   | 270,549 |   |
| Meters                                                    |   |                                    | 503,662   |             |   | 0                |   |          | 0      |   |   | 43,225 |   |   | 546,887 |   |   | 188,702 |   |   | 0 |   |   | 22,355 |   |   | 4                - 5 | % |   | 20-25 |   |   | 211,057 |   |   | 335,830 |   |   | 314,960 |   |
| Buildings                                                 |   |                                    | 75,026    |             |   | 0                |   |          | 0      |   |   | 1,189 |   |   | 76,215 |   |   | 18,501 |   |   | 0 |   |   | 1,454 |   |   | 2                - 3 | % |   | 33-45 |   |   | 19,955 |   |   | 56,260 |   |   | 56,525 |   |
| Communications                network and facilities      |   |                                    | 83,637    |             |   | 0                |   |          | 0      |   |   | 0 |   |   | 83,637 |   |   | 44,078 |   |   | 0 |   |   | 4,195 |   |   | 4                - 5 | % |   | 20-25 |   |   | 48,273 |   |   | 35,364 |   |   | 39,559 |   |
| Total                facilities in service                |   |                                    | 4,586,712 |             |   | 0                |   |          | (1,298 | ) |   | 151,898 |   |   | 4,737,312 |   |   | 1,848,436 |   |   | (648 | ) |   | 167,346 |   |   |  |   |   |  |   |   | 2,015,134 |   |   | 2,722,178 |   |   | 2,738,276 |   |
| **FURNITURE,                TOOLS AND EQUIPMENT**         |   |                                    |           |             |   |             |   |          |        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Furniture,                equipment and software projects |   |                                    | 157,015   |             |   | 4,898            |   |          | 0      |   |   | 0 |   |   | 161,913 |   |   | 141,898 |   |   | 0 |   |   | 9,133 |   |   | 12-13 | % |   | 7-8 |   |   | 151,031 |   |   | 10,882 |   |   | 15,117 |   |
| Tools                and other                            |   |                                    | 44,391    |             |   | 531              |   |          | 0      |   |   | 0 |   |   | 44,922 |   |   | 39,211 |   |   | 0 |   |   | 2,002 |   |   | 10-11 | % |   | 9-10 |   |   | 41,213 |   |   | 3,709 |   |   | 5,180 |   |
| Transportation                equipment                   |   |                                    | 15,412    |             |   | 386              |   |          | (732   | ) |   | 0 |   |   | 15,066 |   |   | 13,609 |   |   | (732 | ) |   | 499 |   |   | 20 | % |   | 5 |   |   | 13,376 |   |   | 1,690 |   |   | 1,803 |   |
| Total                furniture, tools and equipment       |   |                                    | 216,818   |             |   | 5,815            |   |          | (732   | ) |   | 0 |   |   | 221,901 |   |   | 194,718 |   |   | (732 | ) |   | 11,634 |   |   |  |   |   |  |   |   | 205,620 |   |   | 16,281 |   |   | 22,100 |   |
| Total                assets subject to depreciation       |   |                                    | 4,803,530 |             |   | 5,815            |   |          | (2,030 | ) |   | 151,898 |   |   | 4,959,213 |   |   | 2,043,154 |   |   | (1,380 | ) |   | 178,980 |   |   |  |   |   |  |   |   | 2,220,754 |   |   | 2,738,459 |   |   | 2,760,376 |   |
| **CONSTRUCTION                IN PROCESS**                |   |                                    |           |             |   |             |   |          |        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Transmission                                              |   |                                    | 50,347    |             |   | 85,944           |   |          | 0      |   |   | (22,021 | ) |   | 114,270 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | - |   |   |  |   |   | 0 |   |   | 114,270 |   |   | 50,347 |   |
| Distribution                and other                     |   |                                    | 78,547    |             |   | 124,023          |   |          | 0      |   |   | (129,877 | ) |   | 72,693 |   |   | 0 |   |   | 0 |   |   | 0 |   |   | - |   |   |  |   |   | 0 |   |   | 72,693 |   |   | 78,547 |   |
| Total                construction in process              |   |                                    | 128,894   |             |   | 209,967          |   |          | 0      |   |   | (151,898 | ) |   | 186,963 |   |   | 0 |   |   | 0 |   |   | 0 |   |   |  |   |   |  |   |   | 0 |   |   | 186,963 |   |   | 128,894 |   |
| Total                2006                                 |   |                                    | 4,932,424 |             |   | 215,782          |   |          | (2,030 | ) |   | 0 |   |   | 5,146,176 |   |   | 2,043,154 |   |   | (1,380 | ) |   | 178,980 |   |   |  |   |   |  |   |   | 2,220,754 |   |   | 2,925,422 |   |   | - |   |
| Total                2005                                 |   |                                    | 4,810,822 |             |   | 124,482          |   |          | (2,880 | ) |   | 0 |   |   | 4,932,424 |   |   | 1,866,697 |   |   | (1,986 | ) |   | 178,443 |   |   |  |   |   |  |   |   | 2,043,154 |   |   | - |   |   | 2,889,270 |   |

----

**EMPRESA        DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)**

**FINANCIAL        STATEMENTS AS OF DECEMBER 31, 2007 AND 2006**

**INVESTMENTS        IN OTHER COMPANIES**

|                                    |   |      |           |      |   |       |   |         |   |         |   |            |   | **Information                  on the Issuer** |   |                                                  |   |                            |   |
|-----------------------------------------|--------|-----------|----------------|-----------|--------|------------|--------|--------------|--------|--------------|--------|-----------------|--------|------------------------------------------------|--------|-------------------------------------------------------|--------|---------------------------------|--------|
|                                    |   |      |           |      |   |       |   |         |   | **Value**    |   | Net             |   |                                           |   | **Last                  financial statements issued** |   | **%                  interest** |   | **Net** |   |
|                                    |   |      |           |      |   |       |   |         |   | ** on** |   | ** book**  |   |                                           |   |                                                  |   |                            |   | **Income** |   |   |   | **in** |   | **book** |   |
| **Name                  and features**  |   |      |           | **Face**  |   |       |   | **Adjusted** |   | **equity**   |   | ** value** |   | **Main**                                       |   |                                                  |   |                            |   | **for                  the** |   |   |   | **capital** |   | **value** |   |
| **of                  securities**      |   | **Class** |           | **value** |   | **Number** |   | **cost**     |   | **method**   |   | **2007**        |   | **activity**                                   |   | **Date**                                              |   | **Capital**                     |   | **year** |   | **Equity** |   | **stock** |   | **2006** |   |
|                                    |   |      |           |      |   |       |   |         |   |         |   |            |   |                                           |   |                                                  |   |                            |   |   |   |   |   |   |   |   |   |
| **NON-CURRENT**                         |   |      |           |      |   |       |   |         |   |         |   |            |   |                                           |   |                                                  |   |                            |   |   |   |   |   |   |   |   |   |
| **INVESTMENTS**                         |   |      |           |      |   |       |   |         |   |         |   |            |   |                                           |   |                                                  |   |                            |   |   |   |   |   |   |   |   |   |
|                                    |   |      |           |      |   |       |   |         |   |         |   |            |   |                                           |   |                                                  |   |                            |   |   |   |   |   |   |   |   |   |
| Art.                  33 Law No. 19,550 |   |      |                |      |   |       |   |         |        |         |   |            |   |                                           |        |                                                  |   |                            |   |   |  |   |   |   |   |   |  |   |   |   |   |   |  |   |   |  |   |   |  |   |
| -Companies-                             |   |      |                |      |   |       |   |         |        |         |   |            |   |                                           |        |                                                  |   |                            |   |   |  |   |   |   |   |   |  |   |   |   |   |   |  |   |   |  |   |   |  |   |
|                                    |   |      |                |      |   |       |   |         |        |         |   |            |   |                                           |        |                                                  |   |                            |   |   |  |   |   |   |   |   |  |   |   |   |   |   |  |   |   |  |   |   |  |   |
| Affiliated                  Company:    |   |      |                |      |   |       |   |         |        |         |   |            |   |                                           |        |                                                  |   |                            |   |   |  |   |   |   |   |   |  |   |   |   |   |   |  |   |   |  |   |   |  |   |
| SACME                  S.A.             |   |      | common         |      | $      | 1          |   |         | 6,000  |         |   | 15              |   |                                           | 390    |                                                  |   | 390                             |   |   | Electric |   |   | 12/31/2007 |   |   | 28 |   |   | 24 |   |   | 780 |   |   | 50 |   |   | 378 |   |
|                                    |   |      | non-endorsable |      |   |            |   |         |        |         |   |            |   |                                           |        |                                                  |   |                            |   |   | power                  services |   |   |  |   |   |  |   |   |   |   |   |  |   |   |  |   |   |  |   |
|                                    |   |      |                |      |   |       |   |         |        |         |   |            |   |                                           |        |                                                  |   |                            |   |   |   |   |   |  |   |   |  |   |   |   |   |   |  |   |   |  |   |   |  |   |
| Total                                   |   |      |                |      |   |            |   |         |        |         |   |                 |   |                                           |        |                                                  |   | 390                             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   | 378 |   |

----

| **EMPRESA                  DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)** |
|----------------------------------------------------------------------------------------|
|                                                                                   |   |   |   |
| **FINANCIAL                  STATEMENTS AS OF DECEMBER 31, 2007 AND 2006**             |
|                                                                                   |   |   |   |
|                                                                                   |   |   | **EXHIBIT                  D** |
|                                                                                   |   |   |   |
| **OTHER                  INVESTMENTS**                                                 |
|                                                                                   |   |   |   |
| (stated                  in thousands of pesos)                                        |   |   |   |

|                                                         |   | **Net                  book value** |   |
|--------------------------------------------------------------|--------|-------------------------------------|--------|
| **MAIN                  ACCOUNT**                            |   | **2007**                            |   | **2006** |   |
|                                                         |   |                                |   |   |   |
| **CURRENT                  INVESTMENTS**                     |   |                                |   |   |   |
|                                                         |   |                                |   |   |   |
| Time                  deposits                               |   |                                |        |   |   |  |   |
| .                  in foreign currency (Note 25 - Exhibit G) |   |                                | 0      |   |   | 1,360 |   |
| .                  in local currency                         |   |                                | 12,087 |   |   | 0 |   |
|                                                         |   |                                |        |   |   |  |   |
| Money                  market funds                          |   |                                |        |   |   |  |   |
| .                  in local currency                         |   |                                | 0      |   |   | 30,832 |   |
|                                                         |   |                                |        |   |   |  |   |
| Notes                  receivable (Euro Commercial Paper)    |   |                                |        |   |   |  |   |
| .                  in foreign currency (Note 25 - Exhibit G) |   |                                | 85,652 |   |   | 0 |   |
|                                                         |   |                                |        |   |   |  |   |
| Total                                                        |   |                                | 97,739 |   |   | 32,192 |   |

----

| **EMPRESA                  DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)** |
|----------------------------------------------------------------------------------------|
|                                                                                   |   |   |   |   |
| **FINANCIAL                  STATEMENTS AS OF DECEMBER 31, 2007 AND 2006**             |
|                                                                                   |   |   |   | **EXHIBIT                  E****Page                  1 of 3 ** |
| **ALLOWANCES                  AND ACCRUALS**                                           |
|                                                                                   |   |   |   |   |
| (stated                  in thousands of pesos)                                        |   |   |   |   |

|                                                                |   | **2007**                     |   |
|---------------------------------------------------------------------|--------|------------------------------|--------|
| **MAIN**                                                            |   | **At**                       |   |   |   |   |   | **At** |   |
| **ACCOUNT**                                                         |   | **beginning**                |   |   |   |   |   | **end** |   |
|                                                                |   | **of                  year** |   | **Additions** |   | **Retirements** |   | **of                  year** |   |
|                                                                |   |                         |   |   |   |   |   |   |   |
| **Deducted                  from current assets**                   |   |                         |   |   |   |   |   |   |   |
|                                                                |   |                         |   |   |   |   |   |   |   |
| For                  doubtful accounts                              |   |                         | 25,623 |   |   | 30,100 |   |   | (15,717 | ) |   | 40,006 |   |
|                                                                |   |                         |        |   |   |   |   |   |  |   |   |  |   |
| For                  other doubtful accounts                        |   |                         | 2,300  |   |   | 600 |   |   | 0 |   |   | 2,900 |   |
|                                                                |   |                         |        |   |   |   |   |   |  |   |   |  |   |
| For                  impairment of value of Argentina Bonds 2004    |   |                         | 0      |   |   | 0 |   |   | 0 |   |   | 0 |   |
|                                                                |   |                         |        |   |   |   |   |   |  |   |   |  |   |
| **Deducted                  from non-current assets**               |   |                         |        |   |   |   |   |   |  |   |   |  |   |
|                                                                |   |                         |        |   |   |   |   |   |  |   |   |  |   |
| For                  impairment of value of Municipal bonds         |   |                         | 5,918  |   |   | 0 |   |   | (5,918 | ) |   | 0 |   |
|                                                                |   |                         |        |   |   |   |   |   |  |   |   |  |   |
| For                  impairment of value of net deferred tax assets |   |                         | 32,261 |   |   | 2,221 |   |   | 0 |   |   | 34,482 |   |
|                                                                |   |                         |        |   |   |   |   |   |  |   |   |  |   |
| **Included                  in current liabilities**                |   |                         |        |   |   |   |   |   |  |   |   |  |   |
|                                                                |   |                         |        |   |   |   |   |   |  |   |   |  |   |
| Accrued                  litigation                                 |   |                         | 25,914 |   |   | 16,750 |   |   | (2,796 | ) |   | 39,868 |   |
|                                                                |   |                         |        |   |   |   |   |   |  |   |   |  |   |
| **Included                  in non-current liabilities**            |   |                         |        |   |   |   |   |   |  |   |   |  |   |
|                                                                |   |                         |        |   |   |  |   |   |  |   |   |  |   |
| Accrued                  litigation                                 |   |                         | 40,606 |   |   | 2,237 |   |   | 0 |   |   | 42,843 |   |

----

| **EMPRESA                  DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)** |
|----------------------------------------------------------------------------------------|
|                                                                                   |   |   |   | **EXHIBIT                  E****Page                  2 of 3 ** |
| **ALLOWANCES                  AND ACCRUALS**                                           |
|                                                                                   |   |   |   |   |
| (stated                  in thousands of pesos)                                        |   |   |   |   |

|                                                                |   | **2006**                     |    |
|---------------------------------------------------------------------|--------|------------------------------|---------|
| **MAIN**                                                            |   | **At**                       |    |   |   |   |   | **At** |   |
| **ACCOUNT**                                                         |   | **beginning**                |    |   |   |   |   | **end** |   |
|                                                                |   | **of                  year** |    | **Additions** |   | **Retirements** |   | **of                  year** |   |
|                                                                |   |                         |    |   |   |   |   |   |   |
| **Deducted                  from current assets**                   |   |                         |    |   |   |   |   |   |   |
|                                                                |   |                         |    |   |   |   |   |   |   |
| For                  doubtful accounts                              |   |                         | 20,228  |   |   | 10,895 |   |   | (5,500 | ) |   | 25,623 |   |
|                                                                |   |                         |         |   |   |   |   |   |  |   |   |  |   |
| For                  other doubtful accounts                        |   |                         | 1,605   |   |   | 695 |   |   | 0 |   |   | 2,300 |   |
|                                                                |   |                         |         |   |   |   |   |   |  |   |   |  |   |
| For                  impairment of value of Argentina Bonds 2004    |   |                         | 0       |   |   | 0 |   |   | 0 |   |   | 0 |   |
|                                                                |   |                         |         |   |   |   |   |   |  |   |   |  |   |
| **Deducted                  from non-current assets**               |   |                         |         |   |   |   |   |   |  |   |   |  |   |
|                                                                |   |                         |         |   |   |   |   |   |  |   |   |  |   |
| For                  impairment of value of Municipal bonds         |   |                         | 6,008   |   |   | 561 |   |   | (651 | ) |   | 5,918 |   |
|                                                                |   |                         |         |   |   |   |   |   |  |   |   |  |   |
| For                  impairment of value of net deferred tax assets |   |                         | 312,187 |   |   | 0 |   |   | (279,926 | ) |   | 32,261 |   |
|                                                                |   |                         |         |   |   |   |   |   |  |   |   |  |   |
| **Included                  in current liabilities**                |   |                         |         |   |   |   |   |   |  |   |   |  |   |
|                                                                |   |                         |         |   |   |   |   |   |  |   |   |  |   |
| Accrued                  litigation                                 |   |                         | 18,332  |   |   | 13,400 |   |   | (5,818 | ) |   | 25,914 |   |
|                                                                |   |                         |         |   |   |   |   |   |  |   |   |  |   |
| **Included                  in non-current liabilities**            |   |                         |         |   |   |   |   |   |  |   |   |  |   |
|                                                                |   |                         |         |   |   |  |   |   |  |   |   |  |   |
| Accrued                  litigation                                 |   |                         | 38,651  |   |   | 1,955 |   |   | 0 |   |   | 40,606 |   |

----

| **EMPRESA                DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)** |
|--------------------------------------------------------------------------------------|
|                                                                                 |   |   |   | **EXHIBIT                E****Page                3 of 3 ** |
| **ALLOWANCES                AND ACCRUALS**                                           |
|                                                                                 |   |   |   |   |
| (stated                in thousands of pesos)                                        |   |   |   |   |

|                                                              |   | **2005**                   |    |
|-------------------------------------------------------------------|--------|----------------------------|---------|
| **MAIN**                                                          |   | **At**                     |    |   |   |   |   | **At** |   |
| **ACCOUNT**                                                       |   | **beginning**              |    |   |   |   |   | **end** |   |
|                                                              |   | **of                year** |    | **Additions** |   | **Retirements** |   | **of                year** |   |
|                                                              |   |                       |    |   |   |   |   |   |   |
| **Deducted                from current assets**                   |   |                       |    |   |   |   |   |   |   |
|                                                              |   |                       |    |   |   |   |   |   |   |
| For                doubtful accounts                              |   |                       | 33,792  |   |   | 18,011 |   |   | (31,575 | ) |   | 20,228 |   |
|                                                              |   |                       |         |   |   |   |   |   |  |   |   |  |   |
| For                other doubtful accounts                        |   |                       | 1,250   |   |   | 355 |   |   | 0 |   |   | 1,605 |   |
|                                                              |   |                       |         |   |   |   |   |   |  |   |   |  |   |
| **Deducted                from non-current assets**               |   |                       |         |   |   |   |   |   |  |   |   |  |   |
|                                                              |   |                       |         |   |   |   |   |   |  |   |   |  |   |
| For                impairment of value of Argentina Bonds 2004    |   |                       | 10,500  |   |   | 0 |   |   | (10,500 | ) |   | 0 |   |
|                                                              |   |                       |         |   |   |   |   |   |  |   |   |  |   |
| For                impairment of value of Municipal bonds         |   |                       | 5,919   |   |   | 89 |   |   | 0 |   |   | 6,008 |   |
|                                                              |   |                       |         |   |   |   |   |   |  |   |   |  |   |
| For                impairment of value of net deferred tax assets |   |                       | 294,079 |   |   | 18,108 |   |   | 0 |   |   | 312,187 |   |
|                                                              |   |                       |         |   |   |   |   |   |  |   |   |  |   |
| **Included                in current liabilities**                |   |                       |         |   |   |   |   |   |  |   |   |  |   |
|                                                              |   |                       |         |   |   |   |   |   |  |   |   |  |   |
| Accrued                litigation                                 |   |                       | 12,349  |   |   | 5,983 |   |   | 0 |   |   | 18,332 |   |
|                                                              |   |                       |         |   |   |   |   |   |  |   |   |  |   |
| **Included                in non-current liabilities**            |   |                       |         |   |   |   |   |   |  |   |   |  |   |
|                                                              |   |                       |         |   |   |  |   |   |  |   |   |  |   |
| Accrued                litigation                                 |   |                       | 36,975  |   |   | 1,676 |   |   | 0 |   |   | 38,651 |   |

----

| **EMPRESA                  DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)** |
|----------------------------------------------------------------------------------------|
|                                                                                   |   |   |   |   |   |   |   |
| **FINANCIAL                  STATEMENTS AS OF DECEMBER 31, 2007 AND 2006**             |
|                                                                                   |   |   |   |   | **EXHIBIT                  G** |
| **FOREIGN                  CURRENCY DENOMINATED ASSETS AND LIABILITIES**               |

|                                                                                                                                  |   |                                  |                                                         |         |         |                                                                                                               |   |                                     |                                                                                 |                           |         |                                                                                             |   |   |                                                                                             |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------------------------------------------------------------|--------------|--------------|--------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------|--------------|--------------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------|
|                                                                                                                                  |   | **2007**                              |                                                         | **2006**     |         |
|                                                                                                                                  |   | **Foreign                  currency** |                                                         | **Exchange** |         | **Booked**                                                                                                         |   | **Foreign                  currency**    |                                                                                 | **Booked**                     |         |
| **Account**                                                                                                                           |   | **type                  and**         |                                                         | **rate**     |         | **amount                  in**                                                                                     |   | **type                  and**            |                                                                                 | **amount                  in** |         |
|                                                                                                                                  |   | **amount                  (2)**       |                                                         | (1)          |         | **thousands**                                                                                                      |   | **amount                  (2)**          |                                                                                 | **thousands**                  |         |
|                                                                                                                                  |   | **    **          |                                                         |              |         | **of                  pesos**                                                                                      |   | **      ** |                                                                                 | **of                  pesos**  |         |
| Current                  Assets                                                                                                       |   |                                  |                                                         |         |         |                                                                                                               |   |                                     |                                                                                 |                           |         |                                                                                             |   |   |                                                                                             |
| Cash                  and banks                                                                                                       |   |                                  | US$                                                          |         |         | 158,237                                                                                                            |   |                                     | 3.109                                                                                |                           |         | 492                                                                                              |   |   | US$                                                                                              |   |   | 61,953 |   |   | 187 |   |
|                                                                                                                                  |   |                                  | ECU                                                          |         |         | 30,649                                                                                                             |   |                                     | 4.5724                                                                               |                           |         | 140                                                                                              |   |   | ECU                                                                                              |   |   | 31,288 |   |   | 125 |   |
| Investments                                                                                                                           |   |                                  |                                                         |         |         |                                                                                                               |   |                                     |                                                                                      |                           |         |                                                                                                  |   |   |                                                                                             |   |   |   |   |   |  |   |
| Time                  deposits                                                                                                        |   |                                  | US$                                                          |         |         | 0                                                                                                                  |   |                                     | 3.109                                                                                |                           |         | 0                                                                                                |   |   | US$                                                                                              |   |   | 450,184 |   |   | 1,360 |   |
| Notes                  receivable (Euro Commercial Paper)                                                                             |   |                                  | US$                                                          |         |         | 27,549,541                                                                                                         |   |                                     | 3.109                                                                                |                           |         | 85,652                                                                                           |   |   | US$                                                                                              |   |   | 0 |   |   | 0 |   |
| Other                  receivables                                                                                                    |   |                                  |                                                         |         |         |                                                                                                               |   |                                     |                                                                                      |                           |         |                                                                                                  |   |   |                                                                                             |   |   |   |   |   |  |   |
| Prepaid                  expenses                                                                                                     |   |                                  | US$                                                          |         |         | 0                                                                                                                  |   |                                     | 3.109                                                                                |                           |         | 0                                                                                                |   |   | US$                                                                                              |   |   | 33,450 |   |   | 101 |   |
| Prepaid                  Technical Assistance Services                                                                                |   |                                  | US$                                                          |         |         | 4,883,086                                                                                                          |   |                                     | 3.109                                                                                |                           |         | 15,182                                                                                           |   |   | US$                                                                                              |   |   | 1,435,544 |   |   | 4,338 |   |
| Related                  companies                                                                                                    |   |                                  | US$                                                          |         |         | 0                                                                                                                  |   |                                     | 3.109                                                                                |                           |         | 0                                                                                                |   |   | US$                                                                                              |   |   | 1,465,585 |   |   | 4,429 |   |
| Other                  debtors                                                                                                        |   |                                  | US$                                                          |         |         | 247,433                                                                                                            |   |                                     | 3.109                                                                                |                           |         | 769                                                                                              |   |   | US$                                                                                              |   |   | 0 |   |   | 0 |   |
| Other                                                                                                                                 |   |                                  | US$                                                          |         |         | 0                                                                                                                  |   |                                     | 3.109                                                                                |                           |         | 0                                                                                                |   |   | US$                                                                                              |   |   | 249,637 |   |   | 754 |   |
|                                                  |   |                                  |            |         |    |                                                                       |   |                                     |                               |                           |    |                                 |   |   |                                 |   |   |                                  |   |   |                                   |   |
| Total                  Current Assets                                                                                                 |   |                                  |            |         |         |                                                                                                          |   |                                     |                                                                                 |                           |         | 102,235                                                                                          |   |   |                                                                                             |   |   |                            |   |   | 11,294 |   |
| Total                  Assets                                                                                                         |   |                                  |                 |         |         | **                      **                                                                     |   |                                     |                               |                           |         | 102,235                                                                                          |   |   | ** **                                                                                       |   |   |            |   |   | 11,294 |   |
| Current                  Liabilities                                                                                                  |   |                                  |                                                         |         |         |                                                                                                                    |   |                                     |                                                                                 |                           |         |                                                                                                  |   |   |                                                                                             |   |   |  |   |   |  |   |
| Trade                  accounts payable                                                                                               |   |                                  | US$                                                          |         |         | 10,109,541                                                                                                         |   |                                     | 3.149                                                                                |                           |         | 31,835                                                                                           |   |   | US$                                                                                              |   |   | 5,050,196 |   |   | 15,464 |   |
|                                                                                                                                  |   |                                  | ECU                                                          |         |         | 604,106                                                                                                            |   |                                     | 4.6315                                                                               |                           |         | 2,798                                                                                            |   |   | ECU                                                                                              |   |   | 199,772 |   |   | 807 |   |
|                                                                                                                                  |   |                                  |                                                         |         |         |                                                                                                                    |   |                                     |                                                                                 |                           |         |                                                                                                  |   |   |                                                                                             |   |   |   |   |   |  |   |
| Loans                  notes                                                                                                          |   |                                  | US$                                                          |         |         | 5,421,935                                                                                                          |   |                                     | 3.149                                                                                |                           |         | 17,074                                                                                           |   |   | US$                                                                                              |   |   | 662,494 |   |   | 2,029 |   |
| Other                  liabilities                                                                                                    |   |                                  |                                                         |         |         |                                                                                                                    |   |                                     |                                                                                 |                           |         |                                                                                                  |   |   |                                                                                             |   |   |  |   |   |  |   |
| Technical                  assistance                                                                                                 |   |                                  | US$                                                          |         |         | 0                                                                                                                  |   |                                     | 3.149                                                                                |                           |         | 0                                                                                                |   |   | US$                                                                                              |   |   | 1,458,322 |   |   | 4,465 |   |
| Fees                  related to the initial public offering of capital stock                                                         |   |                                  | US$                                                          |         |         | 259,717                                                                                                            |   |                                     | 3.149                                                                                |                           |         | 818                                                                                              |   |   | US$                                                                                              |   |   | 1,229,162 |   |   | 3,764 |   |
| Fees                  related to debt restructuring                                                                                   |   |                                  | US$                                                          |         |         | 0                                                                                                                  |   |                                     | 3.149                                                                                |                           |         | 0                                                                                                |   |   | US$                                                                                              |   |   | 2,383,781 |   |   | 7,299 |   |
| Fees                  related to corporate notes issuance program                                                                     |   |                                  | US$                                                          |         |         | 1,322,369                                                                                                          |   |                                     | 3.149                                                                                |                           |         | 4,164                                                                                            |   |   | US$                                                                                              |   |   | 0 |   |   | 0 |   |
|                                                                                                                                  |   |                                  | ECU                                                          |         |         | 2,650                                                                                                              |   |                                     | 4.6315                                                                               |                           |         | 12                                                                                               |   |   | ECU                                                                                              |   |   | 0 |   |   | 0 |   |
| Other                                                                                                                                 |   |                                  | US$                                                          |         |         | 397,527                                                                                                            |   |                                     | 3.149                                                                                |                           |         | 1,252                                                                                            |   |   | US$                                                                                              |   |   | 738,336 |   |   | 2,261 |   |
|                                        |   |                                  | ECU                                                          |         |         | 130,117                                                                                                            |   |                                     | 4.6315                                                                               |                           |         | 603                                                                                              |   |   | ECU                                                                                              |   |   | 42,986 |   |   | 174 |   |
| Total                  Current Liabilities                                                                                            |   |                                  | **  **                                             |         |         |                                                                       |   |                                     |                                                                            |                           |         | 58,556                                                                                           |   |   |                                                                                             |   |   | **   ** |   |   | 36,263 |   |
| Non-Current                  Liabilities                                                                                              |   |                                  |                                                         |         |         |                                                                                                                    |   |                                     |                                                                                 |                           |         |                                                                                                  |   |   |                                                                                             |   |   |  |   |   |  |   |
|                                                                                                                                  |   |                                  |                                                         |         |         |                                                                                                                    |   |                                     |                                                                                 |                           |         |                                                                                                  |   |   |                                                                                             |   |   |  |   |   |  |   |
| Loans                  notes                                                                                                          |   |                                  | US$                                                          |         |         | 312,704,116                                                                                                        |   |                                     | 3.149                                                                                |                           |         | 984,705                                                                                          |   |   | US$                                                                                              |   |   | 376,429,657 |   |   | 1,152,628 |   |
| Total                  Non-Current Liabilities                                                                                        |   |                                  |                                                         |         |         |                     |   |                                     |                                                   |                           |         | 984,705                                                                                          |   |   |                                                                                             |   |   |                               |   |   | 1,152,628 |   |
| Total                  Liabilities                                                                                                    |   |                                  |                                               |         |         |                                                                                                     |   |                                     |                                                        |                           |         | 1,043,261                                                                                        |   |   |                                                               |   |   |   |   |   | 1,188,891 |   |

| (1)                  Selling and buying exchange rate of Banco de la Nación Argentina in effect                  at the end of the year. |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (2)                  US$ = US Dollar; ECU = Euro                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **EMPRESA                  DISTRIBUIDORA Y COMERCIALIZADORA NORTE S.A. (EDENOR S.A.)** |   |
|----------------------------------------------------------------------------------------|--------|
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **INFORMATION                  REQUIRED BY SECTION 64 CLAUSE b) OF LAW No. 19,550**    |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |  **EXHIBIT                H** |   |
| **FOR                  THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005**              |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (stated                  in thousands of pesos)                                        |   | **2007** |   | **2006** |   | **2005** |   |
|                                                                                   |   | **Transmission                  and** |   |   |   |   |   |   |   |   |   |   |   |
| **Description**                                                                        |   | **Distribution** |   | **Selling** |   | **Administrative** |   |   |   |   |   |   |   |
| **     **                                                     |   | **Expenses** |   | **Expenses** |   | **Expenses** |   | ****Total**** |   | **Total** |   |  **Total** |   |
| Salaries                  and social security taxes                                    |   |   | 125,800 |   |   | 25,368 |   |   | 36,544 |   |   | 187,712 |   |   | 148,908 |   |   | 117,733 |   |
| Postage                  and telephone                                                 |   |   | 1,358 |   |   | 8,068 |   |   | 1,364 |   |   | 10,790 |   |   | 9,838 |   |   | 8,440 |   |
| Bank                  commissions                                                      |   |   | 0 |   |   | 7,816 |   |   | 0 |   |   | 7,816 |   |   | 6,663 |   |   | 6,037 |   |
| Allowance                  for doubtful accounts                                       |   |   | 0 |   |   | 30,700 |   |   | 0 |   |   | 30,700 |   |   | 11,590 |   |   | 18,011 |   |
| Supplies                  consumption                                                  |   |   | 22,949 |   |   | 868 |   |   | 1,651 |   |   | 25,468 |   |   | 22,606 |   |   | 18,765 |   |
| Work                  by third parties                                                 |   |   | 74,170 |   |   | 29,397 |   |   | 10,855 |   |   | 114,422 |   |   | 83,840 |   |   | 65,249 |   |
| Rent                  and insurance                                                    |   |   | 2,275 |   |   | 635 |   |   | 3,176 |   |   | 6,086 |   |   | 4,178 |   |   | 5,319 |   |
| Security                  service                                                      |   |   | 3,992 |   |   | 193 |   |   | 741 |   |   | 4,926 |   |   | 4,057 |   |   | 3,810 |   |
| Professional                  fees                                                     |   |   | 1,705 |   |   | 166 |   |   | 3,061 |   |   | 4,932 |   |   | 4,078 |   |   | 5,268 |   |
| Computer                  services                                                     |   |   | 43 |   |   | 2,089 |   |   | 11,416 |   |   | 13,548 |   |   | 10,146 |   |   | 8,448 |   |
| Advertising                                                                            |   |   | 0 |   |   | 0 |   |   | 15,362 |   |   | 15,362 |   |   | 9,975 |   |   | 4,055 |   |
| Reimbursements                  to personnel                                           |   |   | 5,613 |   |   | 1,157 |   |   | 1,353 |   |   | 8,123 |   |   | 7,145 |   |   | 7,410 |   |
| Temporary                  personnel                                                   |   |   | 267 |   |   | 1,374 |   |   | 341 |   |   | 1,982 |   |   | 1,943 |   |   | 1,684 |   |
| Depreciation                  of property, plant and equipment                         |   |   | 169,483 |   |   | 1,683 |   |   | 3,191 |   |   | 174,357 |   |   | 178,979 |   |   | 178,443 |   |
| Technical                  assistance - Operator's compensation                        |   |   | 8,583 |   |   | 0 |   |   | 0 |   |   | 8,583 |   |   | 7,128 |   |   | 26,912 |   |
| Directors                  and Supervisory Committee members' fees                     |   |   | 0 |   |   | 0 |   |   | 1,194 |   |   | 1,194 |   |   | 852 |   |   | 535 |   |
| Tax                  on financial transactions                                         |   |   | 0 |   |   | 0 |   |   | 31,544 |   |   | 31,544 |   |   | 19,159 |   |   | 17,058 |   |
| Taxes                  and charges                                                     |   |   | 1,181 |   |   | 11,077 |   |   | 1,183 |   |   | 13,441 |   |   | 10,252 |   |   | 10,172 |   |
| Other                                                                                  |   |   | 134 |   |   | 42 |   |   | 1,680 |   |   | 1,856 |   |   | 2,010 |   |   | 1,624 |   |
| Total                  2007                                                            |   |   | 417,553 |   |   | 120,633 |   |   | 124,656 |   |   | 662,842 |   |   | - |   |   | - |   |
| Total                  2006                                                            |   |   | 362,118 |   |   | 87,930 |   |   | 93,299 |   |   | - |   |   | 543,347 |   |   |               |   |
| Total                  2005                                                            |   |   | 346,132 |   |   | 85,967 |   |   | 72,874 |   |   | - |   |   | - |   |   | 504,973 |   |

----

**26.      **
**SUMMARY      OF SIGNIFICANT DIFFERENCES BETWEEN ARGENTINE GAAP AND US GAAP**

**I.**
**Differences      in Valuation Methods**

***a)***
***Deferred      income taxes***

----

***b)***
***Interest      capitalized – net***

----

***c)***
***Asset      retirement obligations - net***

----

***d)***
***Troubled      debt restructuring***

----

***e) ***
***Accounting      for costs of securities offering***

***f)***
***Capital      transaction - Operator's compensation***

***g)***
***Accounting      for stock transferred by Argentine government to      employees***

----

----

***h)***
***Effects      of conforming to US GAAP***

|                                                                               |   | **As                of December,** |        |
|------------------------------------------------------------------------------------|--------|------------------------------------|-------------|
|                                                                               |   | **2007**                           |        | **2006** |   | **2005** |   |
| **Net                income (loss) in accordance with Argentine GAAP**             |   |                               | **122,458** |   |   | **293,066** |   |   | **(149,601** | **)** |
|                                                                               |   |                               |        |   |   |   |   |   |   |   |
| (a)                Deferred income tax (Note 26.II.a)                              |   |                               | 25,129      |   |   | (39,171 | ) |   | 8,105 |   |
| (b)                Interest capitalized – net (Note 26.II.b)                 |   |                               | (5,095      | ) |   | (5,095 | ) |   | 4,516 |   |
| (c)                Asset retirement obligations – net (Note 26.II.c)         |   |                               | (500        | ) |   | (885 | ) |   | (1,212 | ) |
| (d)                Troubled debt restructuring (Note 26.II.d)                      |   |                               | 73,805      |   |   | (293,519 | ) |   | - |   |
| (e)                Accounting for costs of securities offering (Note 26.I.e)       |   |                               | -           |   |   | 313 |   |   | - |   |
| (f)                Capital Transaction-Operator’s compensation (Note 26.I.f) |   |                               | -           |   |   | - |   |   | (25,852 | ) |
|                                                                               |   |                               |        |   |   |   |   |   |   |   |
| **Net                income (loss) in accordance with US GAAP**                    |   |                               | **215,797** |   |   | **(45,291** | **)** |   | **(164,044** | **)** |

|                                                                                                |   | **As                of December,** |          |
|-----------------------------------------------------------------------------------------------------|--------|------------------------------------|---------------|
|                                                                                                |   | **2007**                           |          | **2006** |   | **2005** |   |
| **Shareholder’s                equity in accordance with Argentine GAAP**                     |   |                               | **1,974,581** |   |   | **1,670,350** |   |   | **1,377,284** |   |
|                                                                                                |   |                               |          |   |   |   |   |   |   |   |
| (a)                Deferred income tax (Note 26.II.a)                                               |   |                               | (362,223      | ) |   | (387,352 | ) |   | (350,181 | ) |
| (b)                Interest capitalized- net (Note 26.II.b)                                         |   |                               | 84,684        |   |   | 89,778 |   |   | 94,873 |   |
| (c)                Asset retirement obligations - net (Note 26.II.c)                                |   |                               | (4,536        | ) |   | (4,036 | ) |   | (3,151 | ) |
| (d)                Troubled debt restructuring (Note 26.II.d)                                       |   |                               | (219,714      | ) |   | (293,519 | ) |   | - |   |
| (e)                Pension Plan (Note 26.II. e)(*)                                                  |   |                               | (5,716        | ) |   | (5,714 | ) |   | - |   |
| (f)                Accounting for costs of securities offering (Note 26.I. e)                       |   |                               | -             |   |   | 313 |   |   | - |   |
| (g)                Capital transaction-Operator’s compensation ( Note 26.I.                f) |   |                               | -             |   |   | - |   |   | - |   |
|                                                                                                |   |                               |          |   |   |   |   |   |   |   |
| **Shareholder’s                equity in accordance with US GAAP**                            |   |                               | **1,467,076** |   |   | **1,069,820** |   |   | **1,118,825** |   |

----

|                                                                                                                                    |   | **As                of December,** |          |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|---------------|
|                                                                                                                                    |   | **2007**                           |          | **2006** |   | **2005** |   |
| **Shareholder’s                equity in accordance with US GAAP -****Beginning                balance**                          |   |                               | **1,069,820** |   |   | **1,118,825** |   |   | **1,257,017** |   |
|                                                                                                                                    |   |                               |          |   |   |   |   |   |   |   |
| Net                income (loss) for the year in accordance with US GAAP                                                                |   |                               | 215,797       |   |   | (45,291 | ) |   | (164,044 | ) |
| Capital                increase                                                                                                         |   |                               | 74,845        |   |   |   |   |   |   |   |
| Additional                paid in capital                                                                                               |   |                               | 106,928       |   |   | - |   |   | 25,852 |   |
| Accumulated                Other Comprehensive Income – Pension Plan                adjustment, net of tax benefit (Note 26.II.e) |   |                               | (1            | ) |   | (3,714 | ) |   | - |   |
| Accounting                for costs of securities offering (Note 26.I.e)                                                                |   |                               | (313          | ) |   | - |   |   | - |   |
|                                                                                                                                    |   |                               |          |   |   |   |   |   |   |   |
| **Shareholder’s                equity in accordance with US GAAP – Ending                balance**                          |   |                               | **1,467,076** |   |   | **1,069,820** |   |   | **1,118,825** |   |

**II. **
**Additional        disclosure requirements**

***a)***
***Deferred          income taxes***

----

|                                                                                                                                                                        |   |                                    |         |     |   |        |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------------|----------|--------|-------------|--------|
|                                                                                                                                                                        |   | **As                  of December 31,** |         |
|                                                                                                                                                                        |   | **2007**                                |         | **2006** |   | **2005**    |   |
| Income                  tax under Argentine GAAP:                                                                                                                           |   |                                    |         |     |   |        |   |
| Current                  income tax                                                                                                                                         |   | -                                       |         | -        |   | -           |   |
| Deferred                  income tax - (expense) benefit                                                                                                                    |   |                                    | (122,763     | )        |   | (112,744    | )      |   | 18,108 |   |
| (Increase)                  decrease of the allowance for impairment of value of deferred tax                  assets                                                       |   |                                    | (2,221       | )        |   | 279,926     |   |   | (18,108 | ) |
| **Total                  income tax benefit (expense) under Argentine GAAP**                                                                                                |   |                                    | **(124,984** | **)**    |   | **167,182** |   |   | **-** |   |
|                                                                                                                                                                        |   |                                    |         |     |   |        |   |   |   |   |
| US                  GAAP adjustments:                                                                                                                                       |   |                                    |         |     |   |        |   |   |   |   |
|                                                                                                                                                                        |   |                                    |         |     |   |        |   |   |   |   |
| Adjustment                  for inflation on property, plant and equipment                                                                                                  |   |                                    | 31,300       |     |   | 33,407      |   |   | 34,253 |   |
| Capitalization                  of interest                                                                                                                                 |   |                                    | 1,783        |     |   | 1,783       |   |   | (1,582 | ) |
| Deferred                  income tax effect on the adjustment to present value of the                  notes                                                                |   |                                    | (7,523       | )        |   | 19,998      |   |   | - |   |
| Deferred                  income tax effect on troubled debt restructuring                                                                                                  |   |                                    | (18,308      | )        |   | 82,733      |   |   | - |   |
| Asset                  Retirement Obligation                                                                                                                                |   |                                    | 314          |     |   | 171         |   |   | 424 |   |
| Supplies                  valuation and others                                                                                                                              |   |                                    | 504          |     |   | 281         |   |   | - |   |
| Accruals                  - ENRE Penalties                                                                                                                                  |   |                                    | -            |     |   | 24,991      |   |   | - |   |
| Current                  investments                                                                                                                                        |   |                                    | 250          |     |   | -           |   |   | - |   |
| Other                  social security taxes accruals                                                                                                                       |   |                                    | -            |     |   | (62         | )      |   | - |   |
| **US                  GAAP adjustments**                                                                                                                                    |   |                                    | **8,320**    |     |   | **163,302** |   |   | **33,095** |   |
|                                                                                                                                                                        |   |                                    |         |     |   |        |   |   |   |   |
| Increase                  of the allowance for impairment of value of deferred tax                  assets                                                                  |   |                                    | 16,809       |     |   | (202,473    | )      |   | (24,990 | ) |
|                                                                                                                                                                        |   |                                    |         |     |   |        |   |   |   |   |
| **US                  GAAP adjustments including increase of the allowance for impairment                  of                  value of deferred tax assets (Note 26.I.h)** |   |                                    | **25,129**   |     |   | **(39,171** | **)**  |   | **8,105** |   |
|                                                                                                                                                                        |   |                                    |         |     |   |        |   |   |   |   |
| **Income                  tax (expense) benefit under US GAAP**                                                                                                             |   |                                    | **(99,855**  | **)**    |   | **128,011** |   |   | **8,105** |   |
|                                                                                                                                                                        |   |                                    |         |     |   |        |   |   |   |   |
|                                                                                                                                                                        |   |                                    |         |     |   |        |   |   |   |   |
| **As                  of December 31,**                                                                                                                                     |   |                                    |
|                                                                                                                                                                        |   |                                    | **2007**     |     |   | **2006**    |   |   | **2005** |   |
|                                                                                                                                                                        |   |                                    |         |     |   |        |   |   |   |   |
| (Increase)                  decrease of the allowance for impairment of value of deferred tax                  assets                                                       |   |                                    |         |     |   |        |   |   |   |   |
| Under                  Argentine GAAP                                                                                                                                       |   |                                    | (2,221       | )        |   | 279,926     |   |   | (18,108 | ) |
| US                  GAAP adjustments                                                                                                                                        |   |                                    | 16,809       |     |   | (202,473    | )      |   | (24,990 | ) |
| **Variation                  of the valuation allowance under US GAAP**                                                                                                     |   |                                    | **14,588**   |     |   | **77,453**  |   |   | **(43,098** | **)** |

|                                                                                                                                                                                                                     |   | **As                of December 31, 2007**   |             |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-------------|
|                                                                                                                                                                                                                     |   | **Argentine                GAAP****balance** |        | **US                GAAP****adjustment** |    | **US                GAAP****balance** |   |
|                                                                                                                                                                                                                     |   |                                         |        |   |   |   |   |
| Deferred                tax assets                                                                                                                                                                                       |   |                                         |        |   |   |   |   |
| Tax                losses carry forward                                                                                                                                                                                  |   |                                         | 42,798      |   |   | - |   |   | 42,798 |   |
| Allowance                for doubtful accounts                                                                                                                                                                           |   |                                         | 12,906      |   |   | - |   |   | 12,906 |   |
| Accruals                                                                                                                                                                                                                 |   |                                         | 45,926      |   |   | 28,454 |   |   | 74,380 |   |
| Adjustment                to present value of the retroactive tariff increase arising from                the                application of the new electricity rate schedule and other trade                receivables |   |                                         | 10,366      |   |   | - |   |   | 10,366 |   |
| Troubled                debt restructuring                                                                                                                                                                               |   |                                         | -           |   |   | 64,425 |   |   | 64,425 |   |
| Supplies                valuation                                                                                                                                                                                        |   |                                         | 50          |   |   | 125 |   |   | 175 |   |
| **Total                deferred tax assets**                                                                                                                                                                             |   |                                         | **112,046** |   |   | **93,004** |   |   | **205,050** |   |
|                                                                                                                                                                                                                     |   |                                         |        |   |   |   |   |   |   |   |
| Allowance                for impairment of value of deferred tax assets                                                                                                                                                  |   |                                         | (34,482     | ) |   | - |   |   | (34,482 | ) |
|                                                                                                                                                                                                                     |   |                                         |        |   |   |   |   |   |   |   |
| **Total                deferred tax assets, net**                                                                                                                                                                        |   |                                         | **77,564**  |   |   | **93,004** |   |   | **170,568** |   |
|                                                                                                                                                                                                                     |   |                                         |        |   |   |   |   |   |   |   |
| Deferred                tax liabilities                                                                                                                                                                                  |   |                                         |        |   |   |   |   |   |   |   |
| Property,                plant and equipment                                                                                                                                                                             |   |                                         | (22,642     | ) |   | (467,790 | ) |   | (490,432 | ) |
| Adjustment                to present value of notes                                                                                                                                                                      |   |                                         | (12,475     | ) |   | 12,475 |   |   | - |   |
| Supplies                valuation                                                                                                                                                                                        |   |                                         | -           |   |   | (111 | ) |   | (111 | ) |
| Current                investments                                                                                                                                                                                       |   |                                         | (250        | ) |   | 199 |   |   | (51 | ) |
| **Total                deferred tax liabilities**                                                                                                                                                                        |   |                                         | **(35,367** | **)** |   | **(455,227** | **)** |   | **(490,594** | **)** |
|                                                                                                                                                                                                                     |   |                                         |             |   |   |  |   |   |  |   |
| **Total                net deferred tax assets (liabilities) (Note                26.I.h)**                                                                                                                              |   |                                         | **42,197**  |   |   | **(362,223** | **)** |   | **(320,026** | **)** |

----

|   |   | **As                  of December 31, 2006**   |        |
|--------|--------|------------------------------------------------|--------|
|   |   | **Argentine                  GAAP****balance** |   | **US                  GAAP****adjustment** |    | **US                  GAAP****balance** |   |

|                                                                                            |   |   |        |   |   |         |   |
|-------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------------|--------|
| Deferred                  tax assets                                                            |   |   |        |   |   |         |   |
| Tax                  losses carry forward                                                       |   |   | 143,886     |   |   | -            |   |   | 143,886 |   |
| Allowance                  for doubtful accounts                                                |   |   | 6,426       |   |   | -            |   |   | 6,426 |   |
| Accruals                                                                                        |   |   | 93,179      |   |   | 28,751       |   |   | 121,930 |   |
| Troubled                  debt restructuring                                                    |   |   | -           |   |   | 82,733       |   |   | 82,733 |   |
| Supplies                  valuation                                                             |   |   | 159         |   |   | 63           |   |   | 222 |   |
| **Total                  deferred tax assets**                                                  |   |   | **243,650** |   |   | **111,547**  |   |   | **355,197** |   |
|                                                                                            |   |   |        |   |   |         |   |   |   |   |
| Allowance                  for impairment of value of deferred tax assets                       |   |   | (32,261     | )      |   | (16,809      | )      |   | (49,070 | ) |
|                                                                                            |   |   |        |   |   |         |   |   |   |   |
| **Total                  deferred tax assets, net**                                             |   |   | **211,389** |   |   | **94,738**   |   |   | **306,127** |   |
|                                                                                            |   |   |        |   |   |         |   |   |   |   |
| Deferred                  tax liabilities                                                       |   |   | -           |   |   | -            |   |   | - |   |
| Property,                  plant and equipment                                                  |   |   | (24,209     | )      |   | (501,422     | )      |   | (525,631 | ) |
| Adjustment                  to present value of notes                                           |   |   | (19,998     | )      |   | 19,998       |   |   | - |   |
| Supplies                  valuation                                                             |   |   | -           |   |   | (615         | )      |   | (615 | ) |
| Non                  current investments                                                        |   |   | -           |   |   | (51          | )      |   | (51 | ) |
| **Total                  deferred tax liabilities**                                             |   |   | **(44,207** | **)**  |   | **(482,090** | **)**  |   | **(526,297** | **)** |
|                                                                                            |   |   |        |   |   |         |   |   |   |   |
| **Total                  net deferred tax assets (liabilities) (Note                  26.I.h)** |   |   | **167,182** |   |   | **(387,352** | **)**  |   | **(220,170** | **)** |

----

|   |   | **As                  of December 31, 2006**   |        |
|--------|--------|------------------------------------------------|--------|
|   |   | **Argentine                  GAAP****balance** |   | **US                  GAAP****adjustment** |    | **US                  GAAP****balance** |   |

|                                                                                            |   |   |        |   |   |         |   |
|-------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------------|--------|
| Deferred                  tax assets                                                            |   |   |        |   |   |         |   |
| Tax                  losses carry forward                                                       |   |   | 209,738     |   |   | -            |   |   | 209,738 |   |
| Allowance                  for doubtful accounts                                                |   |   | 6,271       |   |   | -            |   |   | 6,271 |   |
| Deferred                  exchange difference                                                   |   |   | 95,025      |   |   | 2,660        |   |   | 97,685 |   |
| Accruals                                                                                        |   |   | 14,531      |   |   | -            |   |   | 14,531 |   |
| Troubled                  debt restructuring                                                    |   |   | 6,490       |   |   | -            |   |   | 6,490 |   |
| Supplies                  valuation                                                             |   |   | 166         |   |   | (166         | )      |   | 0 |   |
| **Total                  deferred tax assets**                                                  |   |   | **332,221** |   |   | **2,494**    |   |   | **334,715** |   |
|                                                                                            |   |   |        |   |   |         |   |   |   |   |
| Allowance                  for impairment of value of deferred tax assets                       |   |   | (312,187    | )      |   | 185,664      |   |   | (126,523 | ) |
|                                                                                            |   |   |        |   |   |         |   |   |   |   |
| **Total                  deferred tax assets, net**                                             |   |   | **20,034**  |   |   | **188,158**  |   |   | **208,192** |   |
|                                                                                            |   |   |        |   |   |         |   |   |   |   |
| Deferred                  tax liabilities                                                       |   |   |        |   |   |         |   |   |   |   |
| Property,                  plant and equipment                                                  |   |   | (20,034     | )      |   | (537,620     | )      |   | (557,654 | ) |
| Adjustment                  to present value of notes                                           |   |   | -           |   |   | (668         | )      |   | (668 | ) |
| Supplies                  valuation                                                             |   |   | -           |   |   | (51          | )      |   | (51 | ) |
| **Total                  deferred tax liabilities**                                             |   |   | **(20,034** | **)**  |   | **(538,339** | **)**  |   | **(558,373** | **)** |
|                                                                                            |   |   |        |   |   |         |   |   |   |   |
| **Total                  net deferred tax assets (liabilities) (Note                  26.I.h)** |   |   | **0**       |   |   | **(350,181** | **)**  |   | **(350,181** | **)** |

|                                                                                                       |   | **As                  of December 31,** |         |
|------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------------|
|                                                                                                       |   | **2007**                                |         | **2006** |   | **2005** |   |
|                                                                                                       |   |                                    |         |   |   |   |   |
| Income                  tax calculated at tax rate on net loss before taxes under US                  GAAP |   |                                    | (110,478     | ) |   | 60,655 |   |   | 60,251 |   |
|                                                                                                       |   |                                    |         |   |   |   |   |   |   |   |
| Permanent                  differences:                                                                    |   |                                    |         |   |   |   |   |   |   |   |
| Effect                  on capitalized IPO Costs                                                           |   |                                    | -            |   |   | 110 |   |   | - |   |
| Accruals                  and others                                                                       |   |                                    | (3,965       | ) |   | (10,207 | ) |   | - |   |
| **Subtotal**                                                                                               |   |                                    | **(114,443** | **)** |   | **50,558** |   |   | **51,203** |   |
| Variation                  of the valuation allowance under US GAAP                                        |   |                                    | 14,588       |   |   | 77,453 |   |   | (43,098 | ) |
| **Income                  tax (expense) benefit under US GAAP**                                            |   |                                    | **(99,855**  | **)** |   | **128,011** |   |   | **8,105** |   |

|                                                                                                                                                                                                                             |   | **As                  of December 31, 2007** |         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------------|
|                                                                                                                                                                                                                             |   | **Total**                                    |         | **Current** |   | **Non                  Current** |   |
|                                                                                                                                                                                                                             |   |                                         |         |   |   |   |   |
| Deferred                  tax assets                                                                                                                                                                                             |   |                                         |         |   |   |   |   |
| Tax                  losses carry forward                                                                                                                                                                                        |   |                                         | 42,798       |   |   | 34,482 |   |   | 8,316 |   |
| Allowance                  for doubtful accounts                                                                                                                                                                                 |   |                                         | 12,906       |   |   | - |   |   | 12,906 |   |
| Accruals                                                                                                                                                                                                                         |   |                                         | 74,380       |   |   | 7,616 |   |   | 66,764 |   |
| Adjustment                  to present value of the retroactive tariff increase arising from                  the                  application of the new electricity rate schedule and other trade                  receivables |   |                                         | 10,366       |   |   | - |   |   | 10,366 |   |
| Troubled                  debt restructuring                                                                                                                                                                                     |   |                                         | 64,425       |   |   | (1,734 | ) |   | 66,159 |   |
| Supplies                  valuation                                                                                                                                                                                              |   |                                         | 175          |   |   | - |   |   | 175 |   |
| **Total                  deferred tax assets**                                                                                                                                                                                   |   |                                         | **205,050**  |   |   | **40,364** |   |   | **164,686** |   |
|                                                                                                                                                                                                                             |   |                                         |         |   |   |   |   |   |   |   |
| Allowance                  for impairment of value of deferred tax assets                                                                                                                                                        |   |                                         | (34,482      | ) |   | (34,482 | ) |   | - |   |
|                                                                                                                                                                                                                             |   |                                         |         |   |   |   |   |   |   |   |
| **Total                  deferred tax assets, net**                                                                                                                                                                              |   |                                         | **170,568**  |   |   | **5,882** |   |   | **164,686** |   |
|                                                                                                                                                                                                                             |   |                                         |         |   |   |   |   |   |   |   |
| Deferred                  tax liabilities                                                                                                                                                                                        |   |                                         |         |   |   |   |   |   |   |   |
| Property,                  plant and equipment                                                                                                                                                                                   |   |                                         | (490,432     | ) |   | (30,834 | ) |   | (459,598 | ) |
| Adjustment                  to present value of notes                                                                                                                                                                            |   |                                         | -            |   |   | - |   |   | - |   |
| Supplies                  valuation                                                                                                                                                                                              |   |                                         | (111         | ) |   | - |   |   | (111 | ) |
| Current                  investments                                                                                                                                                                                             |   |                                         | (51          | ) |   | (51 | ) |   | - |   |
| **Total                  deferred tax liabilities**                                                                                                                                                                              |   |                                         | **(490,594** | **)** |   | **(30,885** | **)** |   | **(459,709** | **)** |
|                                                                                                                                                                                                                             |   |                                         |         |   |   |   |   |   |   |   |
| **Total                  net deferred tax**                                                                                                                                                                                      |   |                                         | **(320,026** | **)** |   | **(25,003** | **)** |   | **(295,023** | **)** |

----

|                                                                      |   | **As                  of December 31, 2006** |         |
|---------------------------------------------------------------------------|--------|----------------------------------------------|--------------|
|                                                                      |   | **Total**                                    |         | **Current** |   | **Non                  Current** |   |
|                                                                      |   |                                         |         |   |   |   |   |
| Deferred                  tax assets                                      |   |                                         |         |   |   |   |   |
| Tax                  losses carry forward                                 |   |                                         | 143,886      |   |   | 135,570 |   |   | 8,316 |   |
| Allowance                  for doubtful accounts                          |   |                                         | 6,426        |   |   | 6,426 |   |   | - |   |
| Accruals                                                                  |   |                                         | 121,930      |   |   | 68,483 |   |   | 53,447 |   |
| Troubled                  debt restructuring                              |   |                                         | 82,733       |   |   | (11,517 | ) |   | 94,250 |   |
| Supplies                  valuation                                       |   |                                         | 222          |   |   | 222 |   |   | - |   |
| **Total                  deferred tax assets**                            |   |                                         | **355,197**  |   |   | **199,184** |   |   | **156,013** |   |
|                                                                      |   |                                         |         |   |   |   |   |   |   |   |
| Allowance                  for impairment of value of deferred tax assets |   |                                         | (49,070      | ) |   | - |   |   | (49,070 | ) |
|                                                                      |   |                                         |         |   |   |   |   |   |   |   |
| **Total                  deferred tax assets, net**                       |   |                                         | **306,127**  |   |   | **199,184** |   |   | **106,943** |   |
|                                                                      |   |                                         |         |   |   |   |   |   |   |   |
| Deferred                  tax liabilities                                 |   |                                         |         |   |   |   |   |   |   |   |
| Property,                  plant and equipment                            |   |                                         | (525,631     | ) |   | (33,331 | ) |   | (492,300 | ) |
| Supplies                  valuation                                       |   |                                         | (615         | ) |   | - |   |   | (615 | ) |
| Current                  investments                                      |   |                                         | (51          | ) |   | - |   |   | (51 | ) |
| **Total                  deferred tax liabilities**                       |   |                                         | **(526,297** | **)** |   | **(33,331** | **)** |   | **(492,966** | **)** |
|                                                                      |   |                                         |         |   |   |   |   |   |   |   |
| **Total                  net deferred tax**                               |   |                                         | **(220,170** | **)** |   | **165,853** |   |   | **(386,023** | **)** |

***b)***
***Interest      capitalized – net***

|                                                   |   | **As                of December 31,** |   |
|--------------------------------------------------------|--------|---------------------------------------|--------|
|                                                   |   | **2007**                              |   | **2006** |   | **2005** |   |
| Interest                expense incurred under US GAAP |   |                                  | 56,424 |   |   | 93,583 |   |   | 111,560 |   |
| Interest                capitalized under US GAAP      |   |                                  | 12,665 |   |   | 9,283 |   |   | 9,440 |   |

|                                                          |   | **As                of December 31,** |   |
|---------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                          |   | **2007**                              |   | **2006** |   | **2005** |   |
| Interest                capitalized under US GAAP             |   |                                  | -      |   |   | - |   |   | 9,440 |   |
| Depreciation                on interest capitalized           |   |                                  | (5,095 | ) |   | (5,095 | ) |   | (4,924 | ) |
| Interest                capitalized – net (Note 26.I.h) |   |                                  | (5,095 | ) |   | (5,095 | ) |   | 4,516 |   |

|                                                          |   | **As                of December 31,** |    |
|---------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                          |   | **2007**                              |    | **2006** |   | **2005** |   |
| Interest                capitalized                           |   |                                  | 125,294 |   |   | 125,294 |   |   | 125,294 |   |
| Depreciation                on interest capitalized           |   |                                  | (40,610 | ) |   | (35,516 | ) |   | (30,421 | ) |
| Interest                capitalized – net (Note 26.I.h) |   |                                  | 84,684  |   |   | 89,778 |   |   | 94,873 |   |

----

***c)***
***Asset      retirement obligations***

|                                                               |   | **As                of December, 31** |   |
|--------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                               |   | **2007**                              |   | **2006** |   | **2005** |   |
| Asset                retirement costs                              |   |                                  | (409   | ) |   | 2,502 |   |   | 5,654 |   |
| Less:                accumulated depreciation                      |   |                                  | (1,309 | ) |   | (1,330 | ) |   | (1,205 | ) |
| Net                book value                                      |   |                                  | (1,718 | ) |   | 1,172 |   |   | 4,449 |   |
| Asset                retirement obligation                         |   |                                  | (2,818 | ) |   | (5,208 | ) |   | (7,600 | ) |
| Net                Shareholder’s equity impact (Note 26.I.h) |   |                                  | (4,536 | ) |   | (4,036 | ) |   | (3,151 | ) |

|                                                  |   | **For                the years ended as of December 31,** |   |
|-------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                                  |   | **2007**                                                  |   | **2006** |   | **2005** |   |
| Depreciation                of asset retirement costs |   |                                                      | 21     |   |   | (125 | ) |   | (283 | ) |
| Accrued                interest                       |   |                                                      | (521   | ) |   | (760 | ) |   | (929 | ) |
| Total                impact (Note 26.I.h)             |   |                                                      | (500   | ) |   | (885 | ) |   | (1,212 | ) |

|                                                              |   | **As                of December 31,** |   |
|-------------------------------------------------------------------|--------|---------------------------------------|--------|
|                                                              |   | **2007**                              |   | **2006** |   | **2005** |   |
| Accumulated                depreciation of asset retirement costs |   |                                  | (1,309 | ) |   | (1,330 | ) |   | (1,205 | ) |
| Accrued                interest                                   |   |                                  | (3,227 | ) |   | (2,706 | ) |   | (1,946 | ) |
| Total                impact (Note 26.I.h)                         |   |                                  | (4,536 | ) |   | (4,036 | ) |   | (3,151 | ) |

| **Balance                as of January 1, 2005**   |   |   | **9,294** |   |
|----------------------------------------------------|--------|--------|-----------|--------|
| Accrued                interest                    |   |   | 929       |   |
| Payments                                           |   |   | (2,623    | )      |
| **Balance                as of December 31, 2005** |   |   | **7,600** |   |
| Accrued                interest                    |   |   | 760       |   |
| Payments                                           |   |   | (3,152    | )      |
| **Balance                as of December 31, 2006** |   |   | **5,208** |   |
| Accrued                interest                    |   |   | 521       |   |
| Payments                                           |   |   | (2,911    | )      |
| **Balance                as of December 31, 2007** |   |   | **2,818** |   |

----

***d)***
***Troubled      debt restructuring***

|                                                                               |   | **As                  of December 31,** |          |
|------------------------------------------------------------------------------------|--------|-----------------------------------------|---------------|
|                                                                               |   | **2007**                                |          | **2006** |   |
| **Financial                  debt (current and non current) under Argentine GAAP** |   |                                    | **978,352**   |   |   | **1,097,519** |   |
|                                                                               |   |                                    |          |   |   |   |   |
| Waiver                  of principal                                               |   |                                    | 55,314        |   |   | 55,314 |   |
| Waiver                  of unpaid accrued interest                                 |   |                                    | 77,658        |   |   | 77,658 |   |
| Waiver                  of unpaid accrued penalties                                |   |                                    | 65,726        |   |   | 65,726 |   |
| Adjustment                  to present value of the notes                          |   |                                    | 35,643        |   |   | 57,138 |   |
| Interest                  expense                                                  |   |                                    | 71,036        |   |   | 37,683 |   |
| Loss                  from the purchase and redemption of notes                    |   |                                    | (10,228       | ) |   | - |   |
| Adjustment                  to present value of purchased and redeemed notes       |   |                                    | (8,632        | ) |   | - |   |
| Gain                  on debt restructuring                                        |   |                                    | (66,803       | ) |   | - |   |
|                                                                               |   |                                    |          |   |   |   |   |
| **Financial                  debt (current and non current) under US GAAP**        |   |                                    | **1,198,066** |   |   | **1,391,038** |   |
|                                                                               |   |                                    |          |   |   |   |   |
| Total                  impact in shareholders’ equity (Note 26.I.h.)         |   |                                    | 219,714       |   |   | 293,519 |   |

|                                                                         |   | **For                  the year ended December 31,** |       |
|------------------------------------------------------------------------------|--------|------------------------------------------------------|------------|
|                                                                         |   | **2007**                                             |       | **2006** |   | **2005** |   |
|                                                                         |   |                                                 |       |   |   |   |   |
| Waiver                  of principal                                         |   |                                                 |       |   |   | (55,314 | ) |   | - |   |
| Waiver                  of unpaid accrued interest                           |   |                                                 |       |   |   | (77,658 | ) |   | - |   |
| Waiver                  of unpaid accrued penalties                          |   |                                                 |       |   |   | (65,726 | ) |   | - |   |
| Adjustment                  to present value of the notes                    |   |                                                 | 21,495     |   |   | (57,138 | ) |   | - |   |
| Interest                  expense                                            |   |                                                 | (33,353    | ) |   | (37,683 | ) |   | - |   |
| Loss                  from the purchase and redemption of notes              |   |                                                 | 10,228     |   |   | - |   |   | - |   |
| Adjustment                  to present value of purchased and redeemed notes |   |                                                 | 8,632      |   |   | - |   |   | - |   |
| Gain                  on debt restructuring                                  |   |                                                 | 66,803     |   |   | - |   |   | - |   |
| **Total                  impact (Note 26.I.h)**                              |   |                                                 | **73,805** |   |   | **(293,519** | **)** |   | - |   |

***e)***
***Pension          Plan***

----

----

|                                                 |   | **As                  of December 31,** |      |
|------------------------------------------------------|--------|-----------------------------------------|-----------|
|                                                 |   | **2007**                                |      | **2006** |   | **2005** |   |
| Components                  of net year benefit cost |   |                                    |      |   |   |   |   |   |   |   |
| Service                  cost                        |   |                                    | 1,125     |   |   | 813 |   |   | 689 |   |
| Interest                  cost                       |   |                                    | 2,874     |   |   | 1,816 |   |   | 1,186 |   |
| Recognized                  net actuarial loss       |   |                                    | 760       |   |   | 208 |   |   | 169 |   |
| **Net                  year benefit cost**           |   |                                    | **4,759** |   |   | **2,837** |   |   | **2,044** |   |

----

|                                                              |   | **As                  of December 31,** |       |
|-------------------------------------------------------------------|--------|-----------------------------------------|------------|
|                                                              |   | **2007**                                |       | **2006** |   | **2005** |   |
| **Benefit                  obligation – beginning of year** |   |                                    | **15,352** |   |   | **9,703** |   |   | **7,902** |   |
| Service                  cost                                     |   |                                    | 1,125      |   |   | 813 |   |   | 689 |   |
| Interest                  cost                                    |   |                                    | 2,874      |   |   | 1,816 |   |   | 1,186 |   |
| Actuarial                  loss                                   |   |                                    | 761        |   |   | 3,703 |   |   | 495 |   |
| Benefits                  paid to participants                    |   |                                    | (1,029     | ) |   | (683 | ) |   | (569 | ) |
| **Benefit                  obligation – end of year**       |   |                                    | **19,083** |   |   | **15,352** |   |   | **9,703** |   |

|                                             |   | **As                  of December 31,** |       |
|--------------------------------------------------|--------|-----------------------------------------|------------|
|                                             |   | **2007**                                |       | **2006** |   | **2005** |   |
| Projected                  benefit obligation    |   |                                    | 19,083     |   |   | 15,352 |   |   | 9,703 |   |
| Unrecognized                  net actuarial loss |   |                                    | -          |   |   | - |   |   | (2,219 | ) |
| **Other                  personnel benefits**    |   |                                    | **19,083** |   |   | **15,352** |   |   | **7,484** |   |

| **Balance                  as of January 1, 2006**   |   |   | **0**     |   |
|------------------------------------------------------|--------|--------|-----------|--------|
| Application                  of SFAS 158             |   |   | 3,714     |   |
| **Balance                  as of December 31, 2006** |   |   | **3,714** |   |
| Net                  actuarial loss for the year     |   |   | 1         |   |
| **Balance                  as of December 31, 2007** |   |   | **3,715** |   |

| 2008      |   |   | 2,480  |   |
|-----------|--------|--------|--------|--------|
| 2009      |   |   | 2,553  |   |
| 2010      |   |   | 3,054  |   |
| 2011      |   |   | 3,389  |   |
| 2012      |   |   | 4,070  |   |
| 2013-2017 |   |   | 14,787 |   |

| Service                cost                       |   |   | 1,306     |   |
|---------------------------------------------------|--------|--------|-----------|--------|
| Interest                cost                      |   |   | 3,977     |   |
| Amortization                of net actuarial loss |   |   | 761       |   |
| **Net                year benefit cost**          |   |   | **6,044** |   |

----

|                                                       |   | **As                  of December 31,** |   |
|------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                       |   | **2007**                                |   | **2006** |   | **2005** |   |
| Projected                  benefit obligation              |   |                                    | 19,083 |   |   | 15,352 |   |   | 9,703 |   |
| Effect                  of a one-percentage-point increase |   |                                    | 18,050 |   |   | 14,487 |   |   | 9,119 |   |
| Effect                  of a one-percentage-point decrease |   |                                    | 20,261 |   |   | 16,340 |   |   | 10,372 |   |

|                                                          |   | **2007** |   | **2006** |   | **2005** |   |
|---------------------------------------------------------------|--------|----------|--------|----------|--------|----------|--------|
| Weighted-discount                rate                         |   |     | 21.0   | %        |   | 18.0     | %      |   | 18.0 | % |
| Weighted-salary                increase                       |   |     | 20.0   | %        |   | 16.0     | %      |   | 13.0 | % |
| Weighted-long                term inflation                   |   |     | 14.0   | %        |   | 12.0     | %      |   | 12.0 | % |
| Actuarial                Method: Projected Unit Credit Method |   |     |   |     |   |     |   |   |   |   |

***f)***
***Basic          and diluted earnings per share***

|                                                                             |   | **For                  the years ended December 31,** |        |
|----------------------------------------------------------------------------------|--------|-------------------------------------------------------|-------------|
| **Net                  earning (loss) per share**                                |   | **2007**                                              |        | **2006** |   | **2005** |   |
|                                                                             |   |                                                  |        |   |   |   |   |
| Numerator:                                                                       |   |                                                  |        |   |   |   |   |
| Net                  income (loss) for the year                                  |   |                                                  | 215,797     |   |   | (45,291 | ) |   | (164,044 | ) |
|                                                                             |   |                                                  |        |   |   |   |   |   |   |   |
| Denominator:                                                                     |   |                                                  |        |   |   |   |   |   |   |   |
| Weighted                  average number of shares used in basic and diluted EPS |   |                                                  | 906,455,100 |   |   | 831,610,200 |   |   | 831,610,200 |   |
|                                                                             |   |                                                  |        |   |   |   |   |   |   |   |
| **Net                  earning (loss) per share - basic and diluted**            |   |                                                  | **0.238**   |   |   | **(0.054** | **)** |   | **(0.197** | **)** |

----

***g)***
***Segment          information***

***h)***
***Cash          flow information***

----

| **Summarized                  statements of cash flows**                                                                                                   |   |                                                        |         |     |   |         |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------------|----------|--------|--------------|--------|
|                                                                                                                                                       |   |                                                        |         |     |   |         |   |
|                                                                                                                                                       |   | **For                  the years ended as of December 31,** |         |
| **Reconciliation                  of cash flows under Argentine GAAP and US GAAP**                                                                    |   | **2007**                                                    |         | **2006** |   | **2005**     |   |
|                                                                                                                                                       |   |                                                        |         |     |   |         |   |
| **Net                  cash flow provided by operating activities under Argentine GAAP**                                                                   |   |                                                        | **427,182**  |     |   | **214,999**  |   |   | **181,509** |   |
| Reclasification                  from operating activities to investing activities:                                                                        |   |                                                        |              |     |   |              |   |   |  |   |
| Additions                  to property, plant and equipment due to capitalization of interests                  (Note                  26.I.b and 26.II.b) |   |                                                        | -            |     |   | -            |   |   | 9,440 |   |
| Proceeds                  from sale of investments (Argentine Bond 2004) (Note 3.e.2.)                                                                     |   |                                                        | -            |     |   | -            |   |   | (4,584 | ) |
| Effect                  of exchange rate changes on cash and cash equivalents                                                                              |   |                                                        | (12,198      | )        |   | (5,398       | )      |   | (3,409 | ) |
| **Net                  cash flow provided by operating activities under US GAAP**                                                                          |   |                                                        | **414,984**  |     |   | **209,601**  |   |   | **182,956** |   |
|                                                                                                                                                       |   |                                                        |              |     |   |              |   |   |  |   |
| **Net                  cash flow used in investing activities under Argentine GAAP**                                                                       |   |                                                        | **(336,851** | **)**    |   | **(179,671** | **)**  |   | **(124,482** | **)** |
| Reclasification                  from investing activities to operating activities:                                                                        |   |                                                        |              |     |   |              |   |   |  |   |
| Additions                  to property, plant and equipment due to capitalization of interests                  (Note                  26.I.b and 26.II.b) |   |                                                        |              |     |   |              |   |   | (9,440 | ) |
| Proceeds                  from sale of investments (Argentine Bond 2004) (Note 3.e.2.)                                                                     |   |                                                        |              |     |   |              |   |   | 4,584 |   |
| **Net                  cash flow used in investing activities under US GAAP**                                                                              |   |                                                        | **(336,851** | **)**    |   | **(179,671** | **)**  |   | **(129,338** | **)** |
|                                                                                                                                                       |   |                                                        |              |     |   |              |   |   |  |   |
| **Net                  cash flow used in financing activities under Argentine GAAP / US                  GAAP (*)**                                        |   |                                                        | **(21,806**  | **)**    |   | **(310,794** | **)**  |   | - |   |
|                                                                                                                                                       |   |                                                        |              |     |   |              |   |   |  |   |
| **Net                  increase (decrease) in cash and cash equivalents under US GAAP**                                                                    |   |                                                        | **56,327**   |     |   | **(280,864** | **)**  |   | **53,618** |   |
|                                                                                                                                                       |   |                                                        |              |     |   |              |   |   |  |   |
| Effect                  of exchange rate changes on cash and cash equivalents                                                                              |   |                                                        | 12,198       |     |   | 5,398        |   |   | 3,409 |   |
|                                                                                                                                                       |   |                                                        |              |     |   |              |   |   |  |   |
| **Cash                  and cash equivalents at the beginning of the year**                                                                                |   |                                                        | **32,673**   |     |   | **308,139**  |   |   | **251,112** |   |
|                                                                                                                                                       |   |                                                        |              |     |   |              |   |   |  |   |
| **Cash                  and cash equivalents at the end of the year**                                                                                      |   |                                                        | **101,198**  |     |   | **32,673**   |   |   | **308,139** |   |

|                                                                                      |   |   |        |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|
| (*)                  In                  2007, under US GAAP the breakdown is as follows: |   |   |        |   |   |   |   |   |   |   |
|                                                                                      |   |   |        |   |   |   |   |   |   |   |
| Proceeds                  from issuing notes                                              |   |   | 719,838     |   |   |   |   |   |   |   |
| Payments                  on redeemed notes                                               |   |   | (923,417    | )      |   |   |   |   |   |   |
| Capital                  increase                                                         |   |   | 181,773     |   |   |   |   |   |   |   |
| **Net                  cashflow used in financing activities**                            |   |   | **(21,806** | **)**  |   |   |   |   |   |   |
|                                                                                      |   |   |        |   |   |   |   |   |   |   |

***i)***
***Disclosure      about fair value of financial instruments***

----

|  | § | Cash,                time deposits, money market funds, trade receivables, other receivables,                short term trade accounts payable and short term other liabilities:                the                carrying amounts approximate fair value due to the short term maturity                of                these instruments. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | Client                deposits: these long term payables have not a fair value different                from                their carrying amount. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | § | Loans:                the carrying amount approximates the fair value due to the Company’s                financial debt was accounted at present value as it is described                in Note                3.k. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***j)***
***Statement          of Income classification differences between Argentine GAAP and US          GAAP***

***Net      Sales***

***Gross      margin***

***Operating      income***

----

***Financial      income (expense) net and holding gains***

----

|                                                       |   | **2007** |        | **2006** |   | **2005**     |   |
|------------------------------------------------------------|--------|----------|-------------|----------|--------|--------------|--------|
| Net                  sales / Services revenues             |   |     | 1,936,980   |     |   | 1,403,526    |   |   | 1,334,946 |   |
| Electric                  power purchases                  |   |     | (889,885    | )        |   | (799,073     | )      |   | (757,675 | ) |
| Transmission                  and Distribution Expenses    |   |     | (477,454    | )        |   | (450,324     | )      |   | (425,339 | ) |
| **Gross                  margin**                          |   |     | **569,641** |     |   | **154,129**  |   |   | **151,932** |   |
| Operating                  expenses net                    |   |     | (207,510    | )        |   | (194,119     | )      |   | (185,010 | ) |
| **Net                  operating income (loss)**           |   |     | **362,131** |     |   | **(39,990**  | **)**  |   | **(33,078** | **)** |
| Financial                  (expense) net and holding gains |   |     | (46,479     | )        |   | (133,312     | )      |   | (139,071 | ) |
| **Net                  income (loss) before income tax**   |   |     | **315,652** |     |   | **(173,302** | **)**  |   | **(172,149** | **)** |
| Income                  tax                                |   |     | (99,855     | )        |   | 128,011      |   |   | 8,105 |   |
| **Net                  income (loss) for the year**        |   |     | **215,797** |     |   | **(45,291**  | **)**  |   | **(164,044** | **)** |
|                                                       |   |     |        |     |   |         |   |   |   |   |
| **Earning                  (loss) per ordinary share**     |   |     | **0.238**   |     |   | **(0.054**   | **)**  |   | **(0.197** | **)** |

|                                                |   | **December 31,****2007** |      | **December 31,****2006** |   |
|-----------------------------------------------------|--------|-------------------------------|-----------|-------------------------------|--------|
| Current                  Assets                     |   |                          | 536,705   |                          |   | 546,964 |   |
| Property,                  plant and equipment, net |   |                          | 3,175,672 |                          |   | 3,016,372 |   |
| Other                  non-current assets           |   |                          | 346,563   |                          |   | 201,535 |   |
| Current                  liabilities                |   |                          | 573,668   |                          |   | 469,980 |   |
| Non-current                  liabilities            |   |                          | 2,018,199 |                          |   | 2,225,071 |   |
| Shareholders’                  equity         |   |                          | 1,467,076 |                          |   | 1,069,820 |   |

***k)***
***Valuation          of Property, plant and equipment***

***l)***
***SFAS          Interpretation No. 48, “Accounting for uncertainty in income taxes – an          interpretation of FASB Statement No. 109” (“FIN          48”)***

----

| Recognized                uncertain tax position, opening balance                                 |   |   | 33,791 |   |
|---------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Gross                increase due to interest on prior year uncertain tax                position |   |   | 2,236  |   |
| Recognized                uncertain tax position, ending balance                                  |   |   | 36,027 |   |

***m)***
***SFAS          No. 157, Fair Value Measurements***

***n)***
***SFAS          No. 159, The Fair Value Option for Financial Assets and Financial          Liabilities***

***o)***
***Recent          and new accounting pronouncements***

*Business      Combinations.*

----

*Accounting      for Uncertainty in Income Taxes, *

*fair      value *

*Fair      Value Measurements, *

*Accounting      for Derivative Instruments and Hedging Activities*

----

*“Disclosures      about Derivative Instruments and Hedging Activities”*

| On                May 9, 2008, the FASB issued SFAS No. 162. This statement identifies                the                sources of accounting principles and the framework for selecting                the                principles to be used in the preparation of financial statements                of                nongovernmental entities that are presented in conformity with generally                accepted accounting principles (GAAP) in the United States (the GAAP                hierarchy). Under the new statement the hierarchy is as                follows:Level                A — FASB Statements of Financial Accounting Standards and Interpretations,                FASB Statement 133 Implementation Issues, FASB Staff Positions, AICPA                Accounting Research Bulletins and APB Opinions that are not superseded                by                actions of the FASB, and rules and interpretive releases of the SEC                for                SEC registrants. Level                B — FASB Technical Bulletins and, if cleared by the FASB, AICPA Industry                Audit and Accounting Guides and Statements of Position.Level                C — AICPA Accounting Standards Executive Committee Practice Bulletins                that                have been cleared by the FASB, consensus positions of the EITF, and                Topics                discussed in Appendix D of EITF Abstracts.Level                D — Implementation Guides (Q&As) published by the FASB staff, AICPA                Accounting Interpretations, AICPA Industry Audit and Accounting Guides                and                Statements of Position not cleared by the FASB, and practices that                are                widely recognized and prevalent either generally or in the                industry.The                Company does not anticipate that the adoption of this new statement                at the                effective date will have a significant effect in its financial                statements. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***p)***
***Subsequent          events***

**Absorption      of accumulated deficit**

**Agreement      for the provision of technical advisory services with Electricidad Argentina      S.A. (controlling company)**

**Agreement      with the **
***Ministerio      de Planificación Federal, Inversión Pública y      Servicios***

*Ministerio      de Planificación Federal, Inversión Pública y Servicios*
*Sistema      Argentino de Interconexión*

----