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Reforms in the Electric Power and Natural Gas Sector

On July 7, 2025, the Government of Argentina issued Decrees 450/2025, 451/2025, and 452/2025 ("Decree 450," "Decree 451," and "Decree 452"), pursuant to the powers delegated to  the Executive Branch by Section 162 of the Foundations Law 27.742 (the "Foundations Law", see our commentary here).

• Decree 450 amends Laws 15,336 and 24.065 -key laws comprising the electric sector’s regulatory framework-. It also sets a 24-month transition period for revising regulations and issuing supplementary rules.
• Decree 451 enacts a revised text of Law 24,076 on Natural Gas (see our commentary here and here).
• Decree 452 establishes the National Regulatory Body for Gas and Electricity (the "Regulatory Body").

A summary of the main aspects of these Decrees is provided below:

1. Transition period

Decree 450 establishes a 24-month transition period to revise applicable regulations and complementary rules in accordance with the objectives of Law 24,065. During this period, the Secretary of Energy ("SE") must adopt regulations to:

1. Promote market competition in the hydrocarbon sector, enabling free contracting of fuels by electricity generators and preventing market dominance.

2. Ensure effective mechanisms for improving payment collection from electricity distribution utilities.

3. Establish remuneration criteria for thermal generation and optimize the procurement of natural gas, LNG, gasoil, and fuel oil.

4. Gradually assign energy contracts entered by CAMMESA to distributors and large users of the Wholesale Electricity Market ("WEM").

5. Assign fuel contracts entered by CAMMESA.

6. Review the “Procedures for Operation Scheduling, Load Dispatch and Price Calculation in the WEM” for potential repeal or replacement.

2. Decree 450

2.1. Amendments to Law 15,336

1. Scope expansion: Decree 450 expands the scope of Law 15,336 to include electricity commercialization as a regulated activity.

2. Legal nature: Electricity purchase and sale operations are classified as civil and commercial acts, in line with the National Civil and Commercial Code.

3. Federal Jurisdiction: Provinces may regulate their local electric systems but must follow federal rules for distribution service providers in the National Interconnection Grid (“NIG”) and the WEM, in line with the objectives established by Law 24,065.

4. Local Limitations: Local regulations must not obstruct the federal objective of a unified electricity market or prevent cost transfers in the WEM. Specifically:
   1. Illegitimate local taxes: Taxes disguised as service fees that are not based on actual services or exceed their cost are restricted.
   2. Barriers to cost recovery: Local rules cannot:
      1. Prevent WEM cost pass-through to rates.
      2. Restrain payment of distributor debts through CAMMESA.
      3. Undermine the financial sustainability of the electricity market.

5. National jurisdiction activities: National concessions remain mandatory for:
   1. Hydropower facilities exceeding 500 kW.
   2. Public transport and electricity distribution services.

   New rules for hydro concessions include 60-years limits, removal of royalty contributions to the National Electric Energy Fund, end-user choice and free commercialization, and use of private law for water and land rights. Upon expiration of the concession, a public bidding process is mandatory.

6. Redefinition of the Federal Electric Energy Council (“FEEC”): The FEEC becomes a technical-advisory body, which is instructed to offer non-binding opinions on national electric system planning, establish the allocation index of the National Electric Energy Fund, and inform the SE about local compliance with Law 24,065 rate principles.Each province and the City of Buenos Aires (“CABA”)will appoint one representative and alternate. Congress may name three representatives for the senators and three deputies.

7. Reform of the National Electric Energy Fund (“NEEF”): The NEEF will be composed of a 2% surcharge per kWh on WEM sales, reimbursements with interest from prior loans, and other contributions (e.g., donations).It will be administered by the SE, which will allocate:
   1. 1. 19.86% of total revenue to high-voltage transmission works identified by the SE to ensure supply and high quality; and
      2. 80.14% will be distributed between:
         1. the Subsidiary Fund for Regional Tariff Compensation (60%) -allocated by the FEEC to provinces adhering to Law 24,065-
         2. the Special Fund for Electric Development of the Provinces (40%).

   Assets from the dissolved Federal Electric Transport Trust Fund will be transferred to the SE for use in these transmission works. Section 31 bis requires that jurisdictions receiving resources from these funds must prove that their distribution service providers comply with Law 24.065 tariff rules and are updated on WEM payments.

8. Reform of the Special Fund for Electric Development of the Interior:
   The fund is restructured by eliminating rate surpluses and surcharges imposed by the National Executive in CABA and Greater Buenos Aires and by increasing its share of contributions from the NEEF. The FEEC role in distributing the fund’s revenue is removed and new rules intended to ensure the return of loans are established.

9. Powers of the SE: The SE’s role is narrowed to strategic oversight and advisory functions.

10. Repealed Provisions: The reform repeals Section 26 and 28 of Law 15,336 -related to the transitional operation of the FEEC-, Sections 45 to 48 -on administrative sanctions, now governed by Law 24,065-, and Law 25,957, which had created the former Federal Electric Transport Trust.

2.2. Amendments to Law 24,065

1. Redefinition of Purpose – Updates the general policy objectives of Law 24.065: Law 24.065 is revised to redefine its general objectives, now including:
   1. Promotion of term PPAs among private parties.
   2. Rate regulation based on actual supply costs.
   3. Consumer choice.
   4. Price quality alignment through economic signals.
   5. Energy diversification, smart metering, and demand-side tools.
   6. International electricity trade and regional system integration; and
   7. System’s financial sustainability.

2. New WEM Participants – Adds new roles such as prosumers, marketers, and storage operators: New market actors are introduced into the WEM, including:
   1. User-generators comprised by the distributed generation regime of Law 27,424; and
   2. Other participants defined by regulation, including marketers and storage operators.

3. Distribution Utility Obligations: Distributors remain responsible for supplying their end-users within their concession area and must now procure at least 75% of their demand from the Corporate PPA market.

4. Certificate of Public Convenience and Necessity: The Regulatory Body must ensure public disclosure of these certificate applications and hold a public hearing before deciding whether to grant them or not.

5. Prevention of anticompetitive practices: Acts involving anticompetitive conduct, including abuse of dominant position and unfair competition are prohibited. The Regulatory Body must intervene to protect users and refer relevant cases to the National Competition Authority, as required by the Foundations Law. It may also adopt measures to safeguard user rights and ensure compliance.

6. Essential transmission works not included in existing concessions: The SE, after consulting with CAMMESA, may authorize transmission works not included in current contracts if they are technically and economically essential to the operation of the Argentine Interconnection System ("SADI", for its Spanish acronym). For these purposes:
   1. The use of resources from the NEEF is authorized.
   2. The Regulatory Body may include the cost of the expansion in the relevant tariff structure.
   3. Contracting must be done through open, competitive, and auditable procedures.

7. Private initiative for SADI expansions: The National Executive may authorize generators, distributors, and/or large users to build transmission lines or expansions at their own expense, provided that competition in the WEM is not affected. These facilities will not be considered public transmission services, and the National Executive will regulate modalities, technical requirements, use priority, and authorization conditions. Section 31 bis confirms that private SADI transport works may be carried out at the agent’s own risk. Expansion alternatives will be defined by regulation, including projects under Law 17.520 on Public Works Concessions. In this line, Resolution 715/2025 from the Ministry of Economy prioritizes certain transmission works to be executed under this framework (see our comments on these changes here and here).For each project, the regulation will define:
   1. Technical and economic impact assessments based on CAMMESA’s report-
   2. Conditions for COD-
   3. Dispatch priority rules (limited to investment recovery period) and possible assignment to WEM actors-
   4. Priority dispatch rules for renewable energy in case of curtailment; and
   5. Compensation mechanisms corresponding to expansion works.

8. Simplification of international electricity trade: The SE may authorize electricity imports and exports using efficient, transparent, and competitive mechanisms. It may also reject operations for technical or economic reasons affecting national supply security.

9. Corporate PPA Market:  Enshrined via new Section 39 bis. WEM-based PPAs are essential to policy goals and demand coverage. Local rules hindering these contracts are prohibited.

10. Rate Determination Principles: For distribution rates, WEM electricity acquisition costs will include:
    1. Spot market purchase prices and the weighted average from term market contracts under SE contracting rules.
    2. High-voltage transport costs; and
    3. System services managed by CAMMESA.

    Bills must itemize these charges and may not include local taxes or unrelated charges.

11. Creation and Functions of the Regulatory Body: Established as national authority under SE, replacing ENRE. Inherits all regulatory powers.

12. Amendment to Law 19,552 on Electric Easements: the law is amended to establish administrative easements in favor of national jurisdiction concessionaires, entitle affected property owners to compensation, excluding lost profits, and enable faster proceedings.

3. Decree 451

Decree 451 enacts a consolidated text of Law 24,076, amending the natural gas legal framework to reflect the creation of the new Regulatory Body. The Regulatory Body replaces the National Gas Regulatory Body (“ENARGAS”) in all functions.

4. Decree 452

Decree 452 constitutes the Regulatory Body pursuant to Section 161 of the Foundations Law, consolidating the functions previously held by ENARGAS and ENRE. Operating under the SE, the Regulatory Body must become operational within 180 calendar days of the decree’s publication. It is granted administrative and budgetary autonomy, functional independence, and full legal capacity to act under both public and private law.

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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Macarena Becerra, Rocío Valdez, María Paz Albar Díaz, Victoria Barrueco, Sol Villegas Leiva, and/or Manuel Crespi.

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Argentina extends the Emergency in the Energy Sector

On June 2^nd, 2025, the Government of Argentina released Decree 370/2025 (“Decree 370”), that extends the emergency of the energy sector previously declared by Decree 55/2023 and extended by Decree 1023/2024 (please see our comments here and here), until July 9^th 2026.

Decree 307 is applicable to the segments of power generation, transmission and distribution of electric energy, as well as to transport and distribution of natural gas under federal jurisdiction.

Moreover, Decree 307:

1. Extends the transition towards focalized energy subsidies period until July 9^th, 2026 for the Secretary of Energy to continue implementing the necessary acts for the implementation of the measure, to advance in the restructuring of the subsidy regime, and to establish the specific mechanisms to assign and collect them by the users.
2. Extends the intervention of gas and power regulators –ENRE and ENARGAS– until the new entity established by Foundations Law is constituted or July 9^th, 2026, whichever occurs first.

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For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Victoria Barrueco, and/or Manuel Crespi.

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New framework for power transmission system expansions

On June 2, 2025, the Ministry of Economy published Resolution 715/2025 (the “Resolution 715”) which defines the execution of certain expansions of the power transmission system as a priority and indicates that such expansions shall be carried out under the terms of the Public Works Concession Law No. 17,520, a legal framework recently amended by the Foundations Law (Ley Bases) with a strong emphasis on bankability, as described here.

This measure is framed within Decree 55/2023 (as extended by Decree 1023/2024), which declared the emergency of the national energy sector (see our comments on these regulations here and here), and takes into account the high risk of electricity shortages and transmission limitations in Argentina’s federal network.

Resolution 715 establishes that the Secretary of Energy (“SE”) shall approve regulations to include public works concessions within the alternatives for transmission system expansions. Such regulations shall include, among others, that the contractor may finance the expansions by means of a monthly payment to be funded by a rate collected from end-users of the service identified as beneficiaries, as well as that the operation and maintenance of the expansion shall be done by the concessionaire, acting as an Independent Transmission Carrier.

As a result, public works concessions will become a new mechanism for carrying out expansions of the transmission system through private investment and financing. This is a significant measure aimed not only to address the current situation of the system, but also to enable and remove barriers to other industries and projects that are currently limited by the lack of transmission capacity.

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For additional information, please contact: Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Macarena Becerra, María Paz Albar Díaz, Rocío Valdez, Victoria Barrueco, Sol Villegas Leiva, and/or Manuel Crespi.

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