Empresa Distribuidora y Cmrclzdr Nort : Primer Trimestre 17 - Informe de Ganancias

First Quarter

2017

	Stock Information:	Investor Relations Contacts:
	Ticker: EDN	Leandro Montero
	New York Stock Exchange	Chief Financial Officer
	Ratio: 20 Class B = 1 ADR	Verónica Gysin
	Buenos Aires Stock Exchange	Planning and Capital Markets Manager
	Tel: [phone]

Edenor announces first quarter 2017 results

Buenos Aires, Argentina, May 10, 2017. Empresa Distribuidora y Comercializadora Norte S.A. (NYSE: EDN; Buenos Aires Stock Exchange: EDN) ("EDENOR" or "the Company"), Argentina's largest electricity distributor, today announced its results for the first quarter of 2017. All figures are stated in Argentine Pesos and have been prepared in accordance with International Financing Reporting Standards ("IFRS"). Solely for the convenience of the reader, Peso amounts as of and for the quarter ended on March 31, 2017 have been translated into U.S. Dollars at the selling price quoted by Banco de la Nación Argentina of AR$ 15.39 per U.S. Dollar. HIGHLIGHTS Mandatory Capital Stock Reduction

As of December 31th, 2016, our negative results exceeded 100% of our reserves and more than 50% of our capital stock, therefore, in accordance with Section 206 of the Argentine Corporations Law No. 19,550, we were required to mandatorily reduce our capital stock.

As of the date of this report, in light of the recent completion of the RTI process through Resolution No. 63, enforce as from February 1st, 2017, our board of directors is currently analyzing the impact thereof on our financial position, estimating that the expected future revenues will allow us to revert this situation. On April 18th, 2017, our shareholders' meeting decided not to approve the capital stock reduction at that time. However, if this situation remains the same for the first and second quarters of 2017, our board of directors will convene an extraordinary shareholder's meeting to reconsider the capital stock reduction. As of March 31th, 2017, the company negative retained earnings decreased enough in order to avoid the mandatory Capital Stock Reduction situation.

Corporate Reorganization: Merger of CTLL, EASA & IEASA

On March 29th, 2017, Electricidad Argentina S.A. ("EASA" - EDENOR´s controlling and majority shareholder) approved, ad referendum of the corresponding shareholder resolutions and the corresponding approvals of the controlling entities, the merger by absorption between Central Térmica Loma de la Lata S.A. ("CTLL"), as merging and surviving company, and EASA and IEASA S.A. ("IEASA") - EASA's majority shareholder - as the merged/absorbed companies, which will be dissolved without liquidation. Accordingly, the merger plan was approved as well as the merger consolidated financial statements. Such companies, CTLL and EASA and IEASA, belong to the same group, Pampa Energía S.A., which is their direct and/or indirect controller.

In accordance with the applicable regulations, EDENOR and EASA informed the ENRE and requested the corresponding authorization. As of the date of this press release, the merger process was ongoing.

Ordinary and Extraordinary Shareholders' Meeting

On April 18th, 2017, the Ordinary and Extraordinary Shareholders' Meeting of the Company approved the appointment of Carlos Alberto Lorenzetti as Independent Regular Director to replace Ricardo López Antonelli, whose term of office expired on December 31st, 2016. At the same time, Diana Elena Mondino, Santiago Lucas Jonas Aguilar,

José María Tenaillon, Ignacio Gustavo Álvarez Pizzo, Juan Martin Monge Varela and Carlos Andrés Rodriguez Lubary were appointed Independent Interim Directors. Likewise, Messrs. Ricardo Torres' and Gustavo Mariani's positions as Chairman and Vice president were renewed, respectively. Regarding the Audit Committee, the same members of the precedent fiscal year continued by means of the appointment of Eduardo Llanos, Maximiliano Alejandro Fernández and Lucas Amado as regular members.

The Ordinary and Extraordinary Shareholders' Meeting approved the "long term incentive plan" addressed to Edenor's staff with the purpose of keeping and attracting key staff and promoting the highest performance by offering company's shares to the executive and management levels and other key employees. The plan will be administered and executed by an implementing committee to be composed of three members of the Company's Executive Committee, which, in April of each year will decide on the implementation of the plan for the respective calendar year and shall issue the corresponding annual granting resolution.

International Centre for Settlement of Investment Disputes (ICSID)

On March 28th, 2017, the Secretary of the International Centre for the Settlement of Investment Disputes (ICSID) registered the discontinuation of the arbitration initiated in August 2003 by EDF International and EASA against the National Government, related to the breach of the concession contract by the latter, as a consequence of the passing of the Public Emergency Law and the reform of the foreign exchange Regime N° 25.561.

The waiver of the claimants was a condition within the Memorandum of Agreement regarding Edenor's Contractual Renegotiation, which had to be fulfilled after the issuance of the tariff schedule resulting from the Integral Tariff Review process, which was approved by means of Resolution No. 63/17 issued by the National Regulatory Entity for Electricity ("ENRE"), effective as of February 1st 2017.

Likewise, on April 26th, 2017, Edenor was notified that the Ministry of Energy and Mining ("MEyM") established that the Secretary of Energy ("SEE"), with the participation of the Tariff Policies Coordinating Authority and the ENRE, should stipulate in a 120 day-term the existence of pending obligations up to the effective date of the tariff schedules resulting from the Integral Tariff Review process, and with reference to the Memorandum of Agreement entered into on February 13th, 2006. In such case, the treatment to be given to said obligations should be stated.

ENRE Note 125,248

On March 29th, 2017, through Note No. 125,248, the ENRE established a new methodology for the calculation of fines and penalties, determining that fines must be valued according to the KWh values in effect as of the first day of the semester during which the event giving rise to the penalty occurred or the KWh value in effect as of the day of occurrence of the event in the case of penalties arising from specific events. This change, which was necessary for a more adequate operation of the sanctioning regime, allowed the society to account a positive adjustment to the provision for fines and penalties of Ps. 413.7 million.

Regulatory Framework - Electricity dependents Law

On April 26th, 2017, the Senate passed by unanimous vote a bill created by the Representatives Chamber of Deputies aimed at guaranteeing the free of charge and permanent electricity supply to the individuals designated as electricity dependents who, due to health problems, require medical equipment to avoid life or health risks. The law establishes that the holder of the service or his/her cohabitant registered as "Electricity dependent due to health issues" will be exempted from paying connection rights and shall be granted with a free of charge and special tariff treatment in the supply of electrical energy under National jurisdiction, by the acknowledgment of the total amount of the service billing. To this end, the bill states that the Executive Power will allocate the budget items required.

In millon of Pesos

1° Q 2017

1° Q 2016

% Variation

First Quarter 2017 Operating Figures

Revenue from sales	5,366.6	2,990.1	79.5%
Electricity pow er purchase	(2,533.6)	(1,317.3)	92.3%
Net operating income (loss)	816.6	238.3	242.7%
Net income (loss)	421.4	(125.0)	437.0%

Revenues from sales increased 79.5% to AR$ 5,366.6 million in the first quarter of 2017 compared to AR$ 2,990.1 million in the first quarter of 2016, mainly explained by the tariff increase obtained as from February 1st, 2017 through the completion of the Integral Tariff Revision (RTI), by means of Resolution No. 63/2017. Volume of energy sold decreased 2.5% to 5,527 GWh in the first quarter of 2017 from 5,666 GWh in the first quarter of 2016, basically due to a fall of 4.0% in small commercial demands and 2% in industrial and wheeling system demands. Electricity power purchases increased 92.3% to AR$ 2,533.6 million in the first quarter of 2017 compared to AR$ 1,317.3 million in the same period of 2016, mainly due to the growth in the average purchase price of approximately 184% since February 1st, 2017 through Resolution No. 20-E /2017 of the SEE (Secretariat of Electric Energy). Net operating income increased AR$ 578.4 million amounting a gain of AR$ 816.6 million in the first quarter of 2017 compared to a gain of AR$ 238.3 million in the same period of 2016. This positive result was mainly explained by the RTI tariff recognition of 42% on February 2017, partially offset by the increase in the purchase price mentioned above. As far as operating expenses are concerned, there was an increase of AR$ 333.1 million in salaries attributable to the employee compensation granted during 2017 amounting a total outcome of AR$ 1,066.7, million partially compensated by an AR$

537.0 million decrease in accrued fines and penalties, due to enforcement of the ENRE Note No. 125,248.

Net income (loss) shows an increase of AR$ 546.4 million, amounting a gain of AR$ 421.4 million in the first quarter of 2017, compared to a loss of AR$ 125.0 million in the same period of 2016, mainly due to the operating results explained above and to a lower loss of AR$ 401.3 million in financial results caused by a lower exchange rate difference. Adjusted EBITDA

Adjusted EBITDA has increase to a gain of AR$ 611.1 million in the first quarter ended March 31, 2017, compared to a gain of AR$ 674.0 million in the same period of 2016.

In millon of Pesos	1° Q 2017	1° Q 2016
Net operating income before resolution 32/15	816.6	(274.3)
Depreciation of property, plant and equipment	97.5	81.9
EBITDA	914.1	(192.4)
Resolution 32/15 recognition and others(1)	-	512.6
Penalties adjustments(2)	(332.8)	336.2
Commercial Interests	29.8	17.7
Adjusted EBITDA	611.1	674.0

1. Includes additional income under this resolution and PUREE funds.

2. Includes retroactive adjustments required by Notes No. 120,151 (apr. 16') & 125,248 (feb. 17').