Argentine Energy Sector – Emergency

The Argentine Executive Power has declared a state of emergency in the segments of electricity generation, transportation, and distribution, as well as in the transportation and distribution of natural gas under federal jurisdiction, through the Urgent and Necessity Decree No. 55/2023. The measure came into effect on December 18, 2023, with its publication in the Official Gazette.

The emergency

• The emergency and its associated actions will be in effect until December 31, 2024.
• The SECRETARY OF ENERGY is instructed to develop, implement, and put into effect a program of necessary actions.
• The objective is to establish price sanction mechanisms under competitive conditions, maintain income levels, and cover investment needs to ensure the continuous provision of public services for the transportation and distribution of electricity and natural gas.

Tariff review

• The initiation of the tariff review for electricity and natural gas transportation and distribution services is determined.
• The resulting new tariff schedules cannot come into effect after December 31, 2024.
• Until the tariff review process is completed, temporary tariff adjustments and periodic adjustments may be approved, aiming to ensure the continuity and normal provision of the involved public services, based on the results of the tariff review.
• Mechanisms for citizen participation in the process of temporary tariff adjustment are established.

Intervention of ENRE and ENARGAS

• The intervention of the NATIONAL ELECTRICITY REGULATORY ENTITY (ENRE) and the NATIONAL GAS REGULATORY ENTITY (ENARGAS) is ordered from January 1, 2024, until the appointment of new Board members.
• The SECRETARY OF ENERGY has the authority to appoint the intervenors of ENRE and ENARGAS.
• Among their powers, the intervenors are responsible for conducting the tariff review process.
• The SECRETARY OF ENERGY must initiate the process of selecting members of the ENARGAS Board within 180 days. It is also required to review and/or redirect and/or confirm and/or annul the process of selecting members of the ENRE Board.

Federal coordination

• Provinces are invited to coordinate with the SECRETARY OF ENERGY the necessary emergency actions to ensure the provision of electrical distribution services in their jurisdictions.

For more information, please contact:

Mariano Luchetti: mariano.luchetti@bruchoufunes.com

Ignacio Minorini Lima: ignacio.minorini.lima@bruchoufunes.com

Juan Zocca: juan.zocca@bruchoufunes.com