Argentina
The Senate turned the reform of the cold zones regime into law and cut gas subsidies
The upper house approved by 38 votes to 8 a modification of the scheme that reduces the scope of the expansion enacted in 2021. The ruling party secured support in exchange for a commitment to compensation for provinces in warm-weather regions.
The Senate enacted the reform of the cold zones regime, an initiative that changes gas subsidies for residential users and reduces the territorial scope of the expansion approved in 2021. The vote ended with 38 votes in favor and 8 against, with no abstentions, according to Infobae, BAE Negocios and C5N.
The law keeps the benefit for the original areas covered by the scheme, including Patagonia, Malargüe and the Puna, but changes the conditions for the regions added later. According to Infobae and BAE Negocios, access will be tied to social and income criteria, with a cap of up to three basic baskets. Infobae placed that threshold at just over $4.7 million, while C5N estimated it at $4,400,000 for a family of four and Clarín at $4,816,000.
According to Infobae and BAE Negocios, cases such as people with disabilities and Malvinas veterans will also remain covered. C5N added that households with a Single Disability Certificate would be subject to later review by the Energy Secretariat and that households with a Family Housing Certificate from ReNaBaP also qualify.
Another of the main changes is the way the subsidy is applied. Infobae, BAE Negocios and C5N noted that the discount will no longer be calculated on distribution or on the total bill and will instead focus on the gas price component, which points to changes in the final impact on bills.
The approval was part of a political understanding to secure backing. Infobae and BAE Negocios indicated that the Government committed to compensation in electricity subsidies for provinces in warm-weather regions. BAE Negocios added that the negotiation was led by Diego Santilli and Luis Caputo, and that implementation would be through a resolution from the Energy Secretariat.
During the debate, Senator Flavia Royón defended the initiative. According to Infobae, she said: “We have to move toward a much fairer subsidy system in our country”. She also stressed that of 9,000,000 natural gas users, the historic cold zone covers 940,000 and the expanded one 3,360,000, while 6,210,000 users depend on gas cylinders.
There were objections from the opposition. Infobae quoted Mariana Juri, who spoke of “improvisation on a transcendental issue,” and Maximiliano Abad, who said: “You cannot replace one bad law with another bad law that is, moreover, arbitrary, unfair and lacking technical rigor”.
The session was also marked by movements in the chamber. According to Infobae, C5N and Clarín, the Peronist bloc left before the vote. Infobae noted that José Mayans and his group later complained because the text did not make explicit the part linked to warm-weather regions. Clarín added that the Justicialist bloc accused the Government of promoting a confrontation between northern and southern provinces.
Infobae indicated that, in addition to the ruling party, provincial lawmakers and the now former Kirchnerists from Convicción Federal Carolina Moisés, Sandra Mendoza and Guillermo Andrada also backed the measure. Clarín also mentioned that support and noted that the Radical bloc voted in a divided manner.
BAE Negocios added that the bill includes other changes linked to the energy system, including provisions on debts in the Wholesale Electricity Market, criteria for electricity and gas tariffs, updates on renewable energy and the repeal of hydrocarbon regimes replaced by later rules. C5N added that the law incorporates a mechanism to regularize debts of electricity distributors with CAMMESA and extends the incentives regime for renewable energy until 2045.
Sources
About this note. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not do its own reporting on this event.
