Argentina
FAM rejected the Zona Fría reform and warned of higher gas bills
The Argentine Federation of Municipalities questioned the changes approved by the Senate and said they would harm millions of users. The new law keeps benefits in some regions, but conditions access in areas added in 2021.
The Argentine Federation of Municipalities expressed its rejection of the reform of the Zona Fría Regime approved in the Senate and warned that it will affect gas rates across broad areas of the country. The organization, which brings together more than 500 mayors, said in a statement that the measure promoted by the government of Javier Milei will affect millions of users.
According to Ámbito, BAE Negocios and Crónica, the FAM questioned the modification of a scheme that granted differential rates in regions with low temperatures, where heating demand is higher. The organization said the removal of that relief will deal a blow to household budgets.
According to Ámbito, the new law preserves the benefit for users in Patagonia, Malargüe and the Puna region. By contrast, in the localities added to the regime during the 2021 expansion, the discount will no longer be automatic and will depend on each household meeting the criteria of the Targeted Energy Subsidies regime.
Ámbito reported that more than 1.6 million users in more than 90 municipalities could lose tariff assistance if they do not enter the new targeted system, especially in localities in Buenos Aires, Córdoba, Santa Fe and Mendoza. It also noted that the subsidy will no longer be calculated on the total tariff, but on the price of gas at the Transportation System Entry Point.
Crónica added that the FAM is chaired by Fernando Espinoza. In its statement, the federation said it will continue working to defend the rights it considers affected by the reform.
Sources
About this note. Written by El Notero with assistance from artificial intelligence, based on what was published by the cited outlet. El Notero did not conduct its own reporting on this event.
