Energy consumption and subsidy trends shift in Argentina and Chile

Energy consumption and fiscal policy trends are shifting across South America. In Argentina, energy subsidies saw a real interannual increase of 74.1% during the first half of 2026, rising from $1,195 million in the first half of 2025 to $2,147 million. This growth occurs despite the replacement of tariff segmentation with Focused Energy Subsidies (SFE) and poses a challenge to fiscal balance as state revenues decline.

In the Argentine province of Entre Ríos, an economic report shows that while total electricity demand (328,406 MWh) is lower than in Córdoba or Santa Fe, per capita consumption remains comparable to the region. Industrial consumption grew by 8% year-on-year, while commercial use fell by 5%. Entre Ríos maintains the lowest residential, commercial, and industrial tariffs in the Central Region due to provincial interventions and subsidies.

In Chile, academic Denis Riquelme suggests that the energy-saving justifications for daylight saving time are no longer valid. Due to a more diversified electrical matrix and the widespread use of efficient LED technology, the impact of time changes on energy consumption has diminished, suggesting that future evaluations should focus on health, security, and productivity.