Gas and Electricity Tariffs

General Tariff Review

Pursuant to Executive Decree No. 1020/2020 (“Decree 1020”), the Argentine Executive gave way to a process for renegotiating power and natural gas rates (including transmission and distribution) and subject to federal jurisdiction. The renegotiation process should not take more than 2 years. Until then, current revisions have been suspended.

The process was ordered via Decree 1020, which supersedes Article 5 of Law 27,541, that had authorized the Argentine Executive to renegotiate tariffs for a 180-day term starting December 2019. The process had already been previously extended and was nearing its end.

The sector’s regulatory agencies (i.e., ENRE and ENARGAS) were tasked with executing renegotiation agreements with service providers, subject to the approval of the Argentine Executive. The renegotiation process is to conclude with the execution of a Final Agreement (Acta Acuerdo Definitiva) after which a new tariff term will begin. 

Administrative Intervention

Decree 1020 also extended ENARGAS and ENRE’s administrative intervention, which began in March 2020, for one year or until the tariff renegotiation process is finalized. 

Tariff Freeze

Additionally, Decree 1020 extended, for 90 days or until the new transition tariffs are approved, the freeze on power and gas tariffs, subject to federal jurisdiction, which was also about to come to an end.