Economy Politics Country 2026-01-16T22:46:00+00:00

Argentina Increases Electricity Subsidies for Northern Provinces

Argentina's government has raised subsidized electricity limits in northern provinces to account for high temperatures and cooling needs. New rules, part of the Focused Energy Subsidies (SEF) system, apply in 'very warm' and 'warm' zones.


Argentina Increases Electricity Subsidies for Northern Provinces

The National Government has increased subsidized electricity consumption limits in the Northwest (NOA) and Northeast Argentine (NEA) provinces, amid the implementation of the new Focused Energy Subsidies (SEF) system. According to Argentine News Agency, the measure will focus on the months with high temperatures in the country's northern regions. Through the Secretariat of Energy, the Government raised the subsidized consumption cap for the hottest months (December, January, and February) in the 'very warm' and 'warm' zones, according to the IRAM 11603 climate classification. Measured in kilowatt-hours (kWh), the new measures are defined as follows: in 'very warm' zones, the subsidized block increases from 300 kWh to 550 kWh per month; in 'warm' zones, the block is set at 370 kWh per month. In the rest of the country, the summer block remains at 300 kWh per month. From Energy, they detailed that the objective is 'to recognize the climatic reality and the greater needs for using fans and air conditioners in the northern provinces, where there is also less access to gas by networks and electricity is the main resource for cooling homes'. In this sense, they justified the decision based on the proposals made by the northern provinces, regulatory bodies, and ombudsmen during the Public Consultation on the new subsidy scheme. 'The central objective of the SEF is reinforced: to focus State aid on those who really need it, with clear, predictable, and transparent rules throughout the country,' concluded the Secretariat, which is part of the Ministry of Economy. The new subsidy scheme came into effect. The focused subsidy system is now in force. Through Resolution 13/2026, published this Friday in the Official Gazette, the Executive branch launched the SEF, which covers electricity, natural gas by networks, propane gas, and liquefied petroleum gas (LPG) in cylinders. This system establishes base consumption blocks for electrical energy.