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Argentina Caps AySA Increases and Approves Contract to Privatize Majority Stake

New monthly caps run to August to ease bills during the shift to a private operator.

Overview

  • Argentina’s Economy Ministry on Tuesday approved the concession contract and share-transfer framework that enables a public tender for at least 51% of AySA to a private operator.
  • ERAS, the water regulator, set on Monday new caps that limit effective monthly bill rises to 4% through April and 3% from May to August 2026 under an update formula tied to prices and wages.
  • The regulator ordered AySA to file first- and second‑quarter 2026 financial reports for oversight and kept protections like the Social Tariff and zonal discounts in place.
  • AySA has reported a tariff lag with losses above 95,000 million pesos and says the gap narrowed from 21.05% in December 2025 to 12.26% in April 2026.
  • The approved contract requires AySA to complete its 2024–2026 transition plan and move any unmet targets into the 2027–2031 tariff cycle, with the ministry tasked to safeguard service continuity.