Argentina: Milei Formalizes Privatization of State-Owned Energy Company

Through Decree 286/2035, the government of President Javier Milei in Argentina authorized the sale of 100% of the shares of Energía Argentina SA (ENARSA) in CITELEC SA, the parent company of Transener, responsible for electricity transmission throughout the country.

The decision, announced this Wednesday, marks the beginning of the full privatization process of the state-owned company created in 2004 to promote strategic hydrocarbon and energy projects. According to the decree, the privatization will be carried out by separating the activities and assets of each of ENARSA’s business units, which include oil exploration, transportation, storage, and marketing of hydrocarbons.

El Gobierno de Javier Milei anunció que implementará un nuevo sistema de subsidios para las tarifas de electricidad y gas natural como parte del acuerdo alcanzado con el Fondo Monetario Internacional (FMI)https://t.co/Iuc0J3sX7D
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The Ministry of Economy, led by Luis Caputo, will be responsible for defining the operational rules for the process. Meanwhile, the Agency for the Transformation of Public Enterprises, created to reorganize state assets, will act as the executing unit.

The Casa Rosada (Argentina’s Presidential Palace) defended the measure, pointing out that ENARSA allegedly “required multimillion-dollar transfers from the National Treasury” to maintain a structure that “has not yielded the expected results.” In a statement, they stated that the privatization seeks to “regulate the functioning of the state” and allow the private sector, “with investment capacity and experience,” to manage critical services such as electricity transmission.

Furthermore, the government insisted that the measure would improve service quality, foster competition, and guarantee “real and sustainable prices for all Argentinians.” The official statement further argued that “The private sector not only can do better but is also the natural engine of investment, employment, and innovation.”

Argentina: Cristina Fernández Criticizes Milei’s Economic Policy

Criticism and redefinition of the state’s role
The sale of ENARSA involves transferring a company that, for two decades, led strategic projects such as hydrocarbon exploration and the expansion of the electricity grid to the private sector. Despite criticism of the company’s historical role, the government emphasized that the state will now focus on “organizing, regulating, and ensuring the proper functioning of the energy system,” moving away from direct management.

The privatization debate now focuses on implementation timelines and the potential impact on tariffs and employment. While the ruling party insists that the measure will relieve public coffers, opposition and union sectors warn of the risks of concentrating essential services in private hands.

(Telesur)

Translation: Orinoco Tribune

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