Under SEF, subsidized electricity consumption will receive a 50% discount on monthly usage blocks of 300 kWh during high-demand seasons (summer and winter) and 150 kWh in moderate seasons. Additional consumption beyond these blocks will be billed at full rates. Gas subsidies apply seasonally, with 50% coverage between April and September, aligning with peak heating demand, and no subsidies in the summer months. An exceptional 25% additional subsidy will be granted in January 2026 for both services to ease the transition, tapering off throughout the year.
The government plans automatic data migration of pre-registered users in the Registro de Acceso a los Subsidios Energéticos (RASE), with monthly declarations allowed for updates. New applicants, particularly LPG users formerly under Programa Hogar (an estimated 3.36 million users), will need to register via official channels.
This policy addresses identified discrepancies where nearly 2.6 million recipients previously received subsidies without meeting criteria, including deceased individuals and affluent households in gated communities. By focusing resources on genuinely vulnerable groups, the government aims to enhance fiscal sustainability, improve transparency, and encourage energy consumption discipline. The reform aligns with broader fiscal consolidation efforts, anticipating reduced subsidy outlays and moving toward tariff structures reflecting actual costs, which may increase financial pressures on middle and upper-income consumers currently benefiting from indirect subsidies.
This article was curated and published as part of our South American energy market coverage.
