S&P: Demand pressures Argentine power sector

Standard & Poor's said in a report that increased power consumption in Argentina since 2003, coupled with low capacity additions, has resulted in a significant decrease in electric power reserves there.

According to the report, the Argentine government has taken numerous measures to deal with this situation, including importing fuel oil and electric power as well as restricting power and natural gas exports.

"These measures have averted sizable power interruptions at the 'interruptible' large users thus far, but the outlook will be uncertain until the abovementioned investments materialize and these would scarcely have a significant effect on supply until the second half of 2007," said S&P credit analyst Sergio Fuentes.

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