From June 1, 2024, Buenos Aires Province enacted a revamped Social Tariff Regime under Resolution MIySP No. 771/2024, establishing fixed monthly discounts applied to electricity bills based on consumption brackets. Residential consumers using up to 150 kWh per month benefit from a 70% reduction compared to standard residential tariffs, while those consuming up to 300 kWh receive a 40% discount. Beyond 300 kWh, the subsidy diminishes by 6% for every additional 100 kWh consumed. Eligibility is limited to individuals with gross monthly incomes up to twice the minimum wage, including retirees, pensioners, registered monotributistas in lower categories, beneficiaries of social programs, domestic workers under special social security regimes, unemployment insurance holders, war veterans, and persons with certified disabilities. Exclusions apply to those owning multiple properties, luxury vehicles or aircraft, and vehicles under ten years of age unless exempted.
The provincial subsidy model extends coverage beyond the previous 1.7 million beneficiaries to 3 million by incorporating users classified as N2 under the national energy subsidy segmentation, translating to households earning less than ARS 870,000 monthly. This expansion significantly increased provincial expenditure on energy subsidies. The province also eliminated the provincial electricity tax from 4% to 0.01% for beneficiaries.
Looking ahead, as announced by Minister Carlos Bianco, effective January 2026, Buenos Aires will adjust the Social Tariff framework to mirror changes proposed by the national government, replacing the current three-tier income classification (N1, N2, N3) with a binary system distinguishing subsidized households from unsubsidized based on income relative to the cost of three basic household consumption baskets. Approximately 79,500 users residing in gated communities will lose access to subsidies following joint reviews with ARBA and the Ministry of Economy. However, the province will maintain subsidies for users losing national eligibility, contingent on registration via OCEBA’s platform and compliance with updated criteria. The intent is to communicate these policy shifts proactively to avoid abrupt subsidy terminations.
Compliance verification involves data matching through the SINTYS system and local distributors updating databases monthly. User registration and benefit applications are processed within an approximate 30-day window. The strategy aims to maintain social protection for vulnerable populations while adapting to evolving national energy policies.
This article was curated and published as part of our South American energy market coverage.
