Energy Reforms

The section on energy in the Emergency Decree 70/2023 repeals a law on electricity transmission, specific provisions regarding the renewable distributed generation regime, certain emergency decrees related to the electricity sector, and a regime on maximum terms in fuel supply contracts to gas stations. Since these amendments apply to specific situations, in principle, they would not imply significant changes for the energy sector in general. The most important matter for this industry is probably the effective enforcement of the legal regimes for hydrocarbons, natural gas, and electricity —in practice, considerably altered by infralegal regulations—and, potentially, some kind of specific promotional regime for producing and exporting hydrocarbons.

The decree grants the Secretariat of Energy the power to readjust the structure of subsidies in force for natural gas and electricity public utilities under federal jurisdiction, in accordance with the emergency of the national energy sector declared through the Emergency Decree 55/2023, published on December 18, 2023, and the tariff revision established in it.

There are several provisions that, although not included under the energy section, may have a substantial impact on the industry. In particular, the national purchase regime, the repeal of the supply law, specific amendments to the Civil and Commercial Code and the Customs Code, the labor regime, and the land regime, among others. 

The provisions of the Decree may also have an impact on companies with federal government participation in the energy industry, such as CAMMESA, Yacimiento Carbonífero de Río Turbio SA, Dioxitek SA (which produces uranium dioxide powder for nuclear power plants), YPF SA, Y-TEC, Energía Argentina SA, and Nucleoeléctrica Argentina SA, among others.