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Milei’s Energy Overhaul Advances After Deputies Panels Back Rollback of ‘Zona Fría’ Gas Subsidies

The plan replaces broad geographic gas discounts with aid targeted through a means-tested registry.

Overview

  • A joint meeting of the Energy and Budget committees approved a majority report that sends the government’s energy reform to the full Chamber for debate.
  • The bill would end the 2021 expansion of Zona Fría and keep automatic discounts only for Patagonia, Malargüe and the Puna, shifting other users to the Subsidios Energéticos Focalizados (SEF) registry.
  • About 1.6 million users would lose automatic Zona Fría coverage while roughly 1.8 million people already on SEF could still qualify for targeted help.
  • Subsidies would apply to the gas consumed by compensating the price at the entry point to the transport system, not to fixed distribution or transport charges, with eligible homes getting up to 75% off the gas portion of winter use that is about 40% of a typical bill.
  • Provincial officials warn of sharp hikes, with a San Luis senator projecting 30%–40% higher bills in most areas and up to 50% for some households, as the ruling bloc and allies signed the majority opinion, some in dissent, and the package also proposes settling distributor debts with Cammesa if firms waive claims and extending tax certainty for renewables.