The national government extended the electricity sector emergency until December 31, 2027, covering generation, transmission, and distribution segments under federal jurisdiction. The measure, formalized through Decree of Necessity and Urgency (DNU) 585/2026 and published this Monday in the Official Gazette, maintains the exceptional regime in effect since December 2023.
According to the decree’s rationale, the decision is based on the ongoing normalization process of the energy market and the need to avoid inconsistencies during the transition. The Executive argues that technical, operational, economic, and regulatory conditions persist that justify maintaining extraordinary tools to ensure the system’s operation.
Among the arguments put forward, it is highlighted that the normalization process of the Wholesale Electricity Market (MEM) is still under development and requires a stable regulatory framework to complete the planned reforms. Additionally, it notes that in recent years progress has been made in restoring the payment chain, updating seasonal prices, reducing blanket subsidies, and implementing new rules, but these measures are still in a transition phase.
The government also linked this extension to the gas sector emergency, which was already extended until the end of 2027. The interdependence between both markets—natural gas is the main input for thermoelectric generation—makes it necessary to unify deadlines to avoid regulatory mismatches that could affect supply security.
The electricity system data is alarming: during 2025, the operating reserve margin was only 4.4% against the annual peak demand, a level considered insufficient to handle contingencies. Furthermore, the generation fleet is aging, transmission infrastructure operates with reduced margins, and numerous transformer stations exceed 90% utilization.
The decree also mentions the continued gradual reduction of the gap between the seasonal price paid by users and the actual supply cost, a policy that must be coordinated with the targeted subsidy scheme to achieve an economically sustainable system.
The Executive justified the use of a DNU arguing that the imminent expiration of the current emergency—which was set to expire on July 9, 2026—prevented waiting for ordinary legislative proceedings. The opposition has already announced it will challenge the measure in Congress, accusing the government of ruling by decree and failing to resolve the underlying problems of the electricity sector.
Meanwhile, Argentines continue to pay increasingly higher rates and endure recurring blackouts. The extension of the emergency only confirms that the system is on the brink of collapse and that the government has no clear plan to exit this crisis. Until when?
Para mí esto es un choreo a mano armada. 4,4% de reserva no es fragilidad, es sabotaje planificado. Los mismos amigos del poder se llenan los bolsillos mientras nos dejan a oscuras. Me parece que este DNU es un salvataje para los especuladores eléctricos. Vergüenza de gobierno, firmado: ElCheVive77
y bue lo sabiamos los zurdos de siempre nos dejan este sistema de mie*do 4,4% de reserva una verguenza para mi esto es una estafa se llenan los bolsillos con la transicion energetica mientras nosotros nos bancamos los cortes hasta 2027 viva la libertad carajo firmado @ElVerdulero77