the government Moving forward with changing the support system for public electricity and gas services. On the one hand, the executive seeks to simplify the current scheme. But also He wants to reduce spending on this supportThis means an increase in the bills that families pay.
The government’s first decision is to cancel “Tariff segmentation“This system, implemented by Sergio Massa as Minister of Economy (in the presidency of Alberto Fernández), divided households into three groups: high income (N1), middle (N3), and low (N2). According to this classification, benefits were allocated or not.
This chart It will become extinct It will be replaced by two more specific categories: Supported and unsupported.
Subsidized families will also receive fewer benefits. In the case of electricity, they will receive a 50% discount on the electricity cost of their tickets. But it won’t be like that all year round. The discount will be applied to 150% consumption Kilowatt hours per month In the fall and spring months, but it will rise to 300 kilowatts per month During times of greatest demand (summer and winter).
It is estimated that the average household consumes Between 150 kWh and 200 kWh per month In mild months, it can rise to a range between… 300 kWh to 350 kWh when demand is highest.
Consumption exceeding these blocks will pay the “full” rate without deductions.
“Relief” 2026
To mitigate the impact, in January 2026 There will be an additional 25% bonus. Thus, the discount reaches 75% during the first month. But this additional increase will gradually diminish throughout the year until it disappears in December.
Those households with declared incomes below three Common Basic Baskets (CBT) will be able to receive benefits on the ballot. This means that there will be reductions in the cost of electricity and gas Those earning less than $3,641,397.
In the case of gas, There will be a 50% subsidy on the cost of gas between April and September. On the other hand, there will be no support between October and March, as it is estimated that they are the months of low consumption due to high temperatures. However, they will also receive a temporary exemption of an additional 25% from January, which will expire at the end of the year.
This system replaces the previous division (which defined three categories: N1, N2 and N3), as well as the social rate and the home programme.
The government will conduct a non-binding public consultation to “Listen to proposals“. Decision of the Ministry of Energy (which relies on the Ministry of Economy headed by Luis Caputo) It is to reduce public spending on subsidies.
People and households already registered on the Register for Access to Energy Subsidies (RASE) will be automatically migrated to the new system. You will also have the option to update your information.
Cleansing
According to the government, this cleansing process will allow a series of mistakes to be erased. Energy detected 2.6 million families classified as low-income did not meet the requirements to receive these benefits. In the energy review, they found 370 thousand cases registered in the names of the deceased and More than 15,500 homes in countries Who received benefits as if they were weak.
As for the lower sectors (N2 in the previous system), they received discounts of 70% of the cost of the electricity they consume, and this percentage reaches 80% in the case of gas In AMBA (Buenos Aires City as well as its environs), according to the IIEP Tariffs and Subsidies Observatory (UBA-Conicet).
The middle sectors (N3) had Average discount of 56% on electricity costs and 75% on gas.
The only users who were paying almost full price were high-income earners.
Electricity and gas bills consist of three components: The cost of the service represents the majority of the bill and is what the national state subsidizes.. The remainder is for transmission and distribution rates (Edenor-Edesur in AMBA), the amounts of which are regulated and adjusted by an index somewhat lower than inflation.
Jugs
Gas cylinder users will also have changes. It’s about to 3,364,065 registered in the home program. Intended for those who use 10kg bottles or propane gas. Since January, they must register on the official website www.argentina.gob.ar/subsidios.
The previous regime wasMessy, unfair and full of leaks“, as the energy company describes it. “A significant portion of the subsidies went to households that were not at risk, and this was something that needed to be corrected immediately,” is the official reasoning.
“Public hearings” will be used for those who oppose the measure to make their arguments known. “If proposals emerge from there that are superior or better than those proposed, He will be heard “Maybe it’s merged,” that’s what they think in the executive branch.
The administration of Javier Miley received a state allocated a 1.5% of GDP for support For public services (electricity, water and gas). For this year, he estimates that this item will represent 0.65% of GDP. The goal for 2025 is to be so 0.5% of the total From economics.
The government is convinced that, through these changes, households with incomes below the threshold of the three cash-based transfer programs, vulnerable sectors (because the program is more “precise”), and those who use jugs will be protected.
On the other hand, there are middle-income families – who today enjoy benefits – who will lose them.
revision
The government has been working on this reform for a year with the help of the World Bank. It aims to correct the status of millions of families incorrectly registered in the support register.
The current support system depends on that There were 4.9 million high-income households. They have 3 or more cars, 3 or more properties and own other assets (boats, sailboats, financial assets) that allow us to conclude that they do not need subsidies. This is class N1.
This group (N1) had almost no subsidies. From their bills, they pay approximately 90% of the cost of electricity and 76% of the cost of gas. People who have not filled out the support register are also in this category. The government considered them “high-income people” because they did not request any subsidy.
The largest group was low-income families. There were approximately 8.5 million homes, Class N2. They can consume a “basic” block of electricity with large subsidies, but pay a little more when they exceed the basic block. In any case, what they pay is only enough to cover 26% of the costs.
There were approximately three million households identified as N3, middle-income. They earn between $1.2 million and $3.6 million per monthYou have up to 2 properties and/or a vehicle that is less than 3 years old since leaving the factory. They also have a subsidized amount of consumption, which becomes more expensive once they exceed this limit. In any case, what they paid does not justify even half of the cost they consume.
impact
He demonstrated economic support for water, energy and transportation Real reduction of 44% cumulative annually as of November 2025According to the IIEP Monitor on Rates and Subsidies (UBA-CONICET).
According to this work by specialists Alejandro Aenestos and Julián Rojo, subsidies to Cammesa – the wholesale company that runs the electrical system – fell by 35% in real terms, that is, with inflation deducted. In the case of Inarsa – which imports gas for the winter months – the subsidy decreased by 71%.
Subsidies explain only 6.4% of national primary spending, half of the previous year’s spending, and are a key pillar of the fiscal surplus: One-third of the improvement in surplus is due to reduced subsidies.
As of November, AMBA households were paying cover rates on average 52% of the actual costWhile the state faces the remaining 48%. In the case of electricity, the state covered 42% of the cost, while in gas, the government covered 54% of the cost.
Although users classified as N1 (high income) received real increases in their bills of more than 500% in 2024, they still received an 11% subsidy on electricity and 24% on gas.
In 2022, economic support for these services (and transportation) It reached $31 billionaccording to the Tariff Observatory, while They expected $7.5 billion (about 500 million US dollars) by 2025.
Just for comparison, the government of Alberto Fernandez It has allocated more than 12,000 million US dollars In energy subsidies during 2022, a similar figure is calculated for 2021. In 2023, it could have reached about $9 billion, according to estimates.