Argentine SMEs report surging electricity costs under new energy scheme

Argentine small and medium-sized enterprises (SMEs) are reporting severe financial distress following changes to the electricity market. The Industriales Pymes Argentinos (IPA) has warned that the new energy contracting scheme, implemented via Resolution 400/2025 of the Secretariat of Energy, has led to electricity bills multiplying by as much as four times for some companies.

The reform, which began on November 1, 2025, modified the rules of the Wholesale Electricity Market (MEM) to allow large users to contract energy and power directly. However, IPA reports that of approximately 6,000 affected companies, only about 800 have successfully secured supply contracts. This lack of participation has left many businesses exposed to the spot market, where prices have significantly exceeded seasonal projections.

Even companies that did manage to sign contracts are facing difficulties, with some reporting additional charges that have doubled their originally agreed-upon costs. The IPA has called for government intervention, citing increased debt and potential business failures amidst a broader decline in industrial activity and consumption.