Developments in the Electricity Sector: Extension of the Emergency, and Transmission Expansions through Public Works Concessions

Extension of the Emergency of the Electricity Sector

On June 2, 2025, Decree No. 370/2025 (“Decree 370“), was published in the Official Gazette, extending the emergency of the National Energy Sector, originally declared by Decree No. 55/2023 (and extended by Decree 1023/2024), with respect to the segments of power generation, transportation and distribution under federal jurisdiction, and transportation and distribution of natural gas, until July 9, 2026.

Additionally:

1. The intervention of the National Electricity Regulatory Entity (“ENRE”, for its acronym in Spanish) and the National Gas Regulatory Entity (“ENARGAS”, for its acronym in Spanish) is extended until July 9, 2026, or until the boards of directors of the new National Gas and Electricity Regulatory Entity (created by Article 161 of Law No. 27,742) are constituted and operational, whichever occurs first.
2. The “Transition Period towards Targeted Energy Subsidies”, established by Decree No. 465/2024, is extended until July 9, 2026, in order to allow the Secretariat of Energy to continue issuing all necessary acts for the implementation of the provisions set forth in said decree, for the restructuring of the energy subsidy scheme, and for defining the specific mechanisms that will ensure the allocation and effective receipt of subsidies by users.
3. The provinces are invited to coordinate with the Secretariat of Energy on the necessary emergency actions to ensure the provision of electricity distribution services under their jurisdiction, as well as the implementation of the measures resulting from the subsidy restructuring process.

Electricity Transmission Expansions through Public Works Concessions

On June 2, 2025, Resolution No. 715/2025 of the Ministry of Economy (“Resolution 715“) was published in the Official Gazette, declaring that the execution of certain electricity transmission infrastructure works (in high and extra-high voltage) -identified in its Annex I-, is as priority.

Resolution 715 explains that, in order to reduce public spending, it aims to generate conditions for the private sector to undertake the construction, operation and maintenance of these expansion projects. Therefore, the works will be executed under the public works concessions scheme established by Law 17,520 (as amended by Law 27,742), which enables the development of private investment and financing structures. 

Highlights of Resolution 715 include:

1. It declares that the execution of the transmission grid expansion works identified in Resolution 715 (and any additional works subsequently determined by the Ministry) is a priority. These works will be carried out under the terms of Law No. 17,520.
2. The concessionaire’s remuneration for these transmission expansions may be sourced from a transmission expansion tariff, which will be applied to users designated as beneficiaries of the works.
3. The Secretariat of Energy – or whoever it designates – is assigned with the task of incorporating a new section into “The Procedures” (SEE Res. 61/1992) including, within the modalities of expansions to the electricity transmission grid, the Transmission Expansions by Public Works Concession. The new section must include the following guidelines:

1. The concession agreement must provide for a monthly remuneration in favor of the concessionaire during the period of operation and maintenance of the works. The payment must be made directly to the concessionaires by CAMMESA, under the terms and conditions provided in chapter 5 (“Invoicing, Collection and Settlement”) of The Procedures.
2. The expansions may be financed through the payment of a transmission expansion tariff by the users defined as beneficiaries of the works.
3. The concessionaire will carry out the operation and maintenance of the expansion works under the supervision of the transmission company of the corresponding jurisdiction, for which purpose the concessionaire will undertake the role of Independent Transmission Company. It will be governed by Title V of Annex 16 of The Procedures, the provisions that will be included in the new section, the concession agreement, and the relevant bidding documents. At the same time as the concession agreement is executed, the corresponding Technical License must also be signed.
4. Upon completion of the contractual operation and maintenance period, the concessionaire must transfer the constructed facilities to the National Government at zero value, after which the operation and maintenance may be assigned by the Granting Authority to the Transmission Company whose system the expansion integrates.
5. Issuance of the Certificate of Public Convenience and Necessity for the expansion works will imply the approval of the corresponding Administrative Electroduct Easements, in accordance with Law No. 19,552.

Finally, the Secretariat of Energy –or whoever it designates– is authorized to issue supplementary and clarifying regulations for the implementation of Resolution 715.

To access the full text of the new regulations, click on the following links: Decree No. 370/2025 and Resolution No. 715/2025.

For any questions or inquiries, please contact:

• Ignacio Minorini Lima
• Juan Zocca
• Manuel Mazza

This is a general comment and in no way presupposes legal advice or opinion. If required, please contact our professionals.