The Argentine government instituted on Monday (7) new measures to dereguity of the electricity sector and the creation of a new organism that unifies the functions of the previously regulating gas and electricity regulatory bodies.
The measure was taken by a decree signed by Argentina’s president, Javier Milei.
Changes in the electrical sector regime were established for the purpose of “strengthening competition, liberalizing the hiring between private, ensuring investments and ensuring the free choice of supplier by users,” according to the decree.
Total opening is also allowed to international trade in electricity. These operations, from now on, may only be vetoed by the state for technical or supply safety reasons.
Through another decree, the government created the national regulatory entity of gas and electricity, which will replace within 180 days the two existing ones that operated separately: National Regulatory Electricity Regulatory (ENRE) and National Gas Regulatory Entity (Enargas).
The decision, according to the government, seeks to “optimize the use of public resources”.
The board of directors of the new body created by Milei will be composed of five members designated by the Executive, with non -binding parliamentary endorsement.
The reform, moreover, allows the possibility of entering into purchase and sale contracts among individuals, reversing the restrictions imposed in 2013. The objective, according to the government, is to promote stability and predictability in supply and long -term investments.
The right of end users to choose their supplier has also been confirmed, allowing them to hire energy without regulatory obstacles or operational impediments.
The standard introduces regulatory mechanisms that will allow users to know what they are paying, excluding taxes or charges alien to invoiced goods and services. At the same time, it encourages the development of electricity transmission infrastructure, stimulating private investment, according to the decree issued on Monday.
“The national government returns to the electric sector its true essence: an industry based on private investment, economic and financial self-sufficiency, market signs and freedom of choice,” the Argentine government said in a statement published on its official website.
The deregulation of the energy sector was effective a few days after a gas supply crisis in Argentina, due to the high demand because of low temperatures resulting from a wave of polar cold.
