Electricity and Gas Tariffs: The Argentine Executive Establishes New Extensions

Background

The Social Solidarity and Productive Reactivation Law No. 27541, passed in December 2019, among other matters declared a public emergency in different areas  and established that electric power and natural gas rates (including both transmission and distribution services) be frozen, subject to federal jurisdiction and for a term of 180 days. 

During that period, the Argentine Executive was authorized to initiate a renegotiation process of the General Tariff Review (RTI).

Law No. 27541 also authorized the Argentine Executive Branch to intervene the Federal Electricity Regulatory Agency and the Federal Gas Regulatory Agency (ENRE and ENARGAS, respectively).

The freezing term was first extended through Executive Decree No. 543/2020, and later through Executive Decree No. 1020/2020, published on December 16, 2020. Decree 1020 established that the renegotiation process should be finished within a 2-year term.

A few days before the expiration of the term the Argentine Executive had self-imposed in Decree 1020, new extensions were established through Executive Decree No. 815/2022, published on December 7, 2022.
 

General Tariff Review

The deadline for renegotiating of the RTI was extended until December 16, 2023.
 

Administrative Intervention

Decree 815 also extended the intervention of ENRE and ENARGAS (in force since March 2020) until January 1, 2024 or until new tariff charts resulting from the RTI final agreements enter into force, whichever occurs first.
 

Transition Tariff adjustment

Finally, in accordance with Decree 1020, Decree 815 instructed ENARGAS and ENRE to take the necessary measures to implement a transitional tariff adjustment. By means of Resolution No. 523/2022, published in the Official Gazette on December 13, ENARGAS called a public hearing scheduled for January 4, 2023 in which, among other matters, the transitional tariffs for the services of natural gas transmission and distribution will be submitted for consideration.