Buenos Aires Energy Storage Subsidy Policy 2023

Will the government intervene in ENRE & enargas in 2024?

The decree also said the government would look to intervene in state electricity regulator ENRE and gas watchdog ENARGAS from the start of 2024, with government officials reviewing the working of the entities. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

Will the government cut a third of the energy and transport subsidies?

Caputo said Sunday during an interview with LN+ channel that the government plans to cut a third of the current energy and transport subsidies each year, meaning that consumers will pay the full tariff in three years. He added that the government wants to subsidize demand instead of supply.

Are subsidies a balancing act?

It is a tricky balancing act. On one hand inflation is headed towards 185% by the end of the year, the latest central bank poll estimated, which has left voters angry at constantly rising prices and dragged two-fifths of the population into poverty. Subsidies help ease the pain.

How will Milei's energy bills affect Argentines?

Energy costs pose a major challenge for Milei, who took office this month. He has pledged to overturn a deep fiscal deficit, but hiking energy bills will fan inflation already nearing 200% and hurt Argentines with two-fifths in poverty.

When will a new electricity tariff be applied in Argentina?

Those who do not have a domestic gas supply, for example, may consume more electricity because they use it to cook. In Argentina, modifications to utility tariffs have to be approved at a public hearing. If this new scheme is approved in December, it could be applied in February, Caputo said last week. Otherwise, it will be applied in March.

Why does Argentina need to cut spending?

Subsidies help ease the pain. Argentina, however, has a deep fiscal deficit, negative net dollar reserves and is playing a risky game of whack-a-mole with its debts to the IMF, bondholders, and more recently China. It badly needs to cut spending to get its finances in order.