Senate to Begin Debate on Cold Zone Subsidy Changes
The Senate will begin committee proceedings this Wednesday on the bill modifying the subsidy regime for natural gas in so-called Cold Zones. The meeting will take place at 4 p.m. and will be led by a plenary session of the Mining, Energy and Fuels Commission, and the Budget and Treasury Commission.
The initiative obtained half approval from the Chamber of Deputies on May 20, but remained without progress for nearly four months due to the ruling party's difficulties in securing support in the Upper House. Officials from Javier Milei's administration were called to present at this first hearing.
Participants will include Secretary of Energy and Mining Coordination Daniel Cristian González Casartelli; Secretary of Energy MarÃa Carmen Tettamanti; and Undersecretary of Electrical Energy Damián Eduardo Sanfilippo. The ruling party will seek to obtain a favorable committee opinion and enable subsequent floor debate, where it still needs to build a majority.
The parliamentary landscape began to shift in August following conversations with governors from northern provinces. Negotiations aimed to reformulate the subsidy scheme and incorporate a proposal for assistance to so-called hot zones, with the goal of broadening provincial support for the project.
Under the new design, 1,600,000 users would cease receiving the benefit, while 1,800,000 subscribers enrolled in the Targeted Energy Subsidies program would retain a discount exceeding 75% on natural gas consumption during winter. The regime would reach vulnerable households, families with members holding a Single Disability Certificate, holders of lifetime pensions for South Atlantic War veterans, and beneficiaries of the National Popular Neighborhoods Registry.
The reform would also modify the subsidy base: it would be applied per cubic meter of natural gas consumed rather than on the total bill, which includes fixed charges. The bill also incorporates provisions related to electricity debt.