The national government declares that the energy system is on the verge of collapse and extends the emergency until 2026.

The national government has decided to extend the energy emergencyfor another year throughout the country , a measure that directly affects the electricity and natural gas generation, transmission, and distribution sectors under federal jurisdiction. The new period will be in effect until July 2026 , as established by Decree 370/2025 , published this Monday in the Official Gazette .

The decision is justified, according to the official text, by the fact that the "exceptional circumstances" that led to the previous declarations of the state of emergency, which formally began in 2023, still persist. In the words of the government, the current administration inherited "an energy system in ruins," plagued by structural deficits and "a lack of clear market signals."

The decree emphasizes that lifting the emergency at this time would jeopardize the stability of the Wholesale Electricity Market (MEM) and warns of potential consequences such as interruptions in CAMMESA payments , breaches of contracts with generators, and a scenario of increased debt for distributors.

Furthermore, NA reported, the need for the current regulatory bodies ENRE and ENARGAS to continue operating under intervention is reaffirmed, until the new National Energy Regulatory Body is formed, one of the most ambitious structural reforms planned by the ruling party.

Among the highlights, the Executive noted that real coverage of the cost of natural gas has not yet been achieved, which requires sustained state contributions that do not always reach the most vulnerable sectors. At the same time, a transition process toward targeted subsidies is underway, which aims to replace the current, still massive, schemes with more selective and efficient mechanisms.

The modernization of the electrical system is also still pending: an aging generating fleet , transportation problems , and repeated distribution failures create a complex landscape that the government is seeking to reverse through investment, regulatory reforms, and reduced public spending.

In parallel, the priority is to complete the construction of infrastructure for gas transportation , which is key to self-sufficiency and exports to neighboring countries.

The decree's text is not lacking in allusions to previous administrations. The Executive emphasizes that "the energy crisis is a direct consequence of years of distorting intervention, indiscriminate subsidies, and chronic disinvestment ," which makes it necessary to maintain extraordinary measures to avoid a collapse.

Thus, the energy emergency becomes a strategic element of the macroeconomic stabilization plan of Javier Milei's government , which seeks to balance fiscal accounts without interrupting essential services.

The extension also ratifies the " Transition Period toward Targeted Energy Subsidies ," which enables the Ministry of Energy to unilaterally redefine who receives assistance and under what criteria. This includes reviewing improperly registered beneficiaries , eliminating overlaps such as the Cold Zone regime , and evaluating the HOGAR Program following the deregulation of bottled gas .