A key executive at Edesur resigned amid tensions with the government and market pressure.

Gianluca Palumbo resigned as Managing Director of Edesur , the main electricity distributor in the southern Buenos Aires metropolitan area and the City of Buenos Aires, amid tensions with the government and market pressure. The company announced its decision to the Buenos Aires Stock Exchange and BYMA on July 29. Palumbo will remain associated with the ENEL Group, the Italian holding company that controls Edesur, but in a different capacity.

The executive's departure comes at a critical time for the company, which is facing complaints about service quality, union disputes, and a strong clash with the national government . Therefore, attention is already focused on the Special Assembly convened for August 28 at the company's headquarters at San José 140, where his replacement will be chosen.

The change in Edesur's management comes after a year marked by criticism. During 2024, the company was under scrutiny for repeated outages in the AMBA region and its performance during peak demand. Javier Milei 's administration demanded immediate improvements and tightened controls over the concession, not ruling out sanctions if targets are not met.

Furthermore, ENEL is keeping its divestment plan in Argentina on hold. Although the group has already sold assets in other countries in the region, the local economic situation and the lack of clear rules forced it to halt the sale of its stake in Edesur. Relations with the government remain tense, and the lack of progress maintains uncertainty in the sector.

Edesur distributes energy to more than 2.5 million homes and businesses, so any change in its operations generates repercussions in the markets and among users. According to industry data, the company suffered a drop in dollar revenue due to frozen rates , while facing increased investment demands and a complex union environment, with threats of strikes and wage demands.

In this context, the change in leadership seems significant. Analysts believe the profile of the new director will determine whether Edesur aims to sustain its operations in the country or prepares for a more orderly exit. The decisions made in the coming weeks could determine the fate of the electricity service in one of the most densely populated areas in the country.

Although Gianluca Palumbo's resignation was presented as part of an internal process, it is interpreted as a symptom of the deterioration facing ENEL in Argentina . With tariffs that are not keeping up with inflation and growing political pressure, the company's management is becoming increasingly difficult.

The board reconfiguration could be just the first step in a more profound rethink. If clear rules and predictability aren't defined in the medium term, the possibility of ENEL withdrawing permanently and leaving its place to operators with less financial backing grows. For Edesur, this would imply further risks in a system already operating at its limits. And for Javier Milei 's government, a warning: the energy sector needs urgent responses .