The Argentine government and the governors of the Norte Grande region have reached a crucial agreement to advance the Cold Zones law in the Senate. After a meeting led by Economy Minister Luis Caputo and Cabinet Chief Diego Santilli at the Palacio de Hacienda, a new scheme for electricity subsidies in warm and very warm areas was defined.
Details of the Agreement
According to sources from Infobae and La Voz, the agreement establishes that the subsidy for very warm zones will increase from 300 kWh to 550 kWh, and for warm zones from 150 kWh to 300 kWh, applicable from November to April.
The meeting, lasting over an hour, included governors Raúl Jalil (Catamarca), Gustavo Sáenz (Salta), Leandro Zdero (Chaco), and Carlos Sadir (Jujuy), as well as representatives from other provinces of the Norte Grande. Also participating were the Secretary of Energy and Mining, Daniel González, and the Secretary of Energy, María Tettamanti.
“In the framework of the dialogue table with northern governors, together with Diego Santilli and the Secretary of Energy, we agreed on a proposal to redefine energy subsidies in warm and very warm zones, a historic demand of the provinces. We agreed to work together to implement it as soon as possible,”
Santilli highlighted the speed of the agreement: “In less than a week we listened to the governors' demands, sat down to work, and found a solution. This is a historic claim from the North, and we have shown that when there is dialogue and willingness to find solutions, the Nation and provinces can work together and give concrete responses to the people.”
New Subsidies by Zone
| Zone | Before | Now |
|---|---|---|
| Very warm | 300 kWh | 550 kWh |
| Warm | 150 kWh | 300 kWh |
Effective from November to April
Participants
- Luis Caputo (Economy Minister)
- Diego Santilli (Cabinet Chief)
- Raúl Jalil (Catamarca)
- Gustavo Sáenz (Salta)
- Leandro Zdero (Chaco)
- Carlos Sadir (Jujuy)
- María Tettamanti (Energy Secretary)
Political Context: The Cold Zones Law
The agreement is part of negotiations to get the Senate to pass the reform of the Cold Zones regime, which already has half-sanction from the Chamber of Deputies. This reform reduces gas discounts for higher-income households but maintains benefits for those earning less than three basic baskets, people with disabilities, and residents of low-income neighborhoods.
The government estimates the reform will generate fiscal savings of $272,099 million (Argentine pesos). However, the new subsidy for warm zones will involve additional spending estimated between USD 71 million and USD 90 million annually (equivalent to about $134,000 million at the wholesale exchange rate).
The discussion arose because northern governors conditioned their support for the Cold Zones law on creating compensation for higher electricity consumption in summer, especially in provinces where many households lack natural gas pipelines.
Impact on Córdoba and Other Provinces
The Cold Zones reform affects regions incorporated in 2021, including Buenos Aires, Córdoba, Santa Fe, Mendoza, San Luis, San Juan, Salta, Jujuy, La Rioja, Catamarca, and Tucumán. In Córdoba, it is estimated that the province will lose half of its current gas subsidies, sparking criticism from local political sectors.
Tuesday's agreement represents a sign of détente between the Casa Rosada and a group of governors from different political backgrounds, amid disputes over resources and public works.
Today's meeting continued conversations initiated last week in Posadas, Misiones, during the 24th Assembly of the Regional Council of the Norte Grande. On that occasion, governors Gildo Insfrán (Formosa) and Ricardo Quintela (La Rioja) did not participate, nor did they attend this Tuesday's meeting.
Next Steps
The Senate has not yet set a date to debate the Cold Zones reform. The outcome of this meeting and the formalization of the warm-zone benefit could unlock the necessary support. Meanwhile, the government seeks to advance other reforms in the upper house, such as the elimination of the PASO (primary elections), which analysts say is postponed to December.
This negotiation is also part of Diego Santilli's political strategy, who appears in polls as a natural candidate for anti-Kirchnerism in the province of Buenos Aires, building territorial capital through agreements with governors.