Argentina negotiates electricity subsidies for northern provinces

Argentine Chief of Staff Diego Santilli and Energy Secretary María del Carmen Tettamanti are meeting with governors from the Norte Grande region to negotiate a ‘warm zone’ (zona cálida) electricity subsidy scheme. The initiative aims to provide relief for electricity bills in the NEA and NOA provinces, where extreme heat significantly increases energy consumption.

The proposed regime seeks to establish tariff differentials for high-temperature regions, similar to the existing ‘cold zone’ (zona fría) subsidies for gas in southern provinces. Legislative proposals include discounts of up to 50% or 70% for low-income households, as well as protections for hospitals and schools.

This negotiation carries political weight, as the national government seeks support from these governors to pass legislation that would modify the current ‘cold zone’ regime, potentially reducing gas subsidies in other regions to fund these new electrical benefits. The government estimates that implementing the warm zone benefits for the NOA region could cost approximately $90 million annually.