Gradual Rise in Electricity Tariffs in Argentina

The Argentine government confirmed a gradual reduction in electricity subsidies for middle and low-income users this year. The implementation will help mitigate the impact of rising tariffs, aligning with ongoing inflation efforts. The new scheme aims for equitable bonuses for electricity and natural gas consumption by 2025.


Gradual Rise in Electricity Tariffs in Argentina

The government has confirmed that the reduction of electricity subsidies for middle and low-income users will take place gradually throughout the current year. This decision was supported by the publication of Resolution 36/2025 in the Official Bulletin, following the initial clarification made by the Minister of Economy, Luis Caputo, in a television interview.

The official document issued today explained that the recommendation for a gradual implementation is due to the existing gap between benefits for vulnerable electricity and natural gas users. It is emphasized that this measure aligns with the guidelines of the Ministry of Economy for the disinflation process.

The comparison between the number of households using electricity and natural gas was substantiated, indicating that the larger number of households using electricity will allow for gradual adjustments so they can adapt their consumption habits predictably. It is noted that around 60% of the 16 million households using electricity receive state assistance for paying their bills.

For its part, the Energy Secretariat considers it necessary to adjust the benefits for electricity and natural gas consumption. A previous regulation had established a unification of subsidy percentages for different income segments, leading to a noticeable increase in the electricity bills of N2 and N3 users. In response, the government decided to eliminate the immediate implementation of cuts to electricity subsidies, aiming to mitigate the impact on tariffs and align them with inflation.

Finally, it was established that the equalization of these benefits will be achieved by the end of 2025, with an increase of 1.6% in the February bills, as was initially planned.