Economy Politics Local 2025-12-31T13:29:14+00:00

Argentina Confirms New Electricity Tariff Hikes

Despite widespread power outages, Argentina's government has officially approved a tariff increase for electricity distributors Edenor and Edesur, set to take effect in January.


Argentina Confirms New Electricity Tariff Hikes

The national government confirmed the new electricity tariffs that will come into effect in January, with a 2.31% increase for Edenor and 2.24% for Edesur, amidst a widespread power outage in much of the Buenos Aires Metropolitan Area (AMBA). The increase in the Own Distribution Cost (CPD) that the companies will pass on to users in the first month of 2026 was formalized through Resolutions 841 and 842/2025, published this Wednesday in the Official Gazette. The regulations explained that the adjustment arose from the monthly application of the indexation formula provided for in Article 17 of Resolution ENRE 304/2025, based on the premise of ensuring that the distributor's remuneration maintains its real value over five years, as reported by the Argentine News Agency. In this regard, it was detailed that “the objective of the update mechanism established is that the value of the remun received by the distributor remains in real terms throughout the five-year tariff period”. To calculate the update, the variations in the Wholesale Price Index (IPIM) and the Consumer Price Index (IPC), published by the National Institute of Statistics and Censuses (INDEC), which were 1.59% and 2.47% respectively in November, are taken. The adjustment formula weights IPIM at 67% and IPC at 33%, resulting in a 1.88% increase in the distributor's CPD before the full update. By incorporating the total cost, in January Edenor's CPD increases by 2.31% compared to December and Edesur's CPD rises by 2.24% relative to the previous month's value. The official texts highlighted that “for the base consumption (and, where applicable, for the excess consumption) of Residential Level 2 and Level 3 users, the bonuses established at the wholesale price of the Energy corresponding to Residential Level 1 users, or those that may be established in the future by the Secretariat of Energy, will be applied”.