The national government will adjust subsidies for the Cold Zone: more than 150,000 users will lose benefits.

The national government will move forward with a new cut in the energy subsidy system. This time, the measure will affect more than 150,000 users of the Zona Fría program , who until now enjoyed a 50% discount on their natural gas bills. However, after inconsistencies were detected, this benefit will be reduced to 30%.

The decision comes just days after the cancellation of energy assistance for 15,500 users in Puerto Madero, gated communities, and country clubs, where income tax returns had been filed that the Executive Branch deemed incompatible with the subsidy conditions.

According to the Energy Secretariat , headed by María Tettamanti , 370,000 accounts were found in the names of some 150,000 holders who had access to the Cold Zone regime, but who had multiple meters, a condition that, for the Government, invalidates the “vulnerability” category.

The adjustment is part of the official policy of reducing energy subsidies to promote efficiency and eliminate unjustified benefits. According to official estimates, the reduction in Puerto Madero and high-income neighborhoods will mean savings of more than $3 billion for the public coffers. The reduction in the Cold Zone could imply another significant saving, not yet officially quantified.

Created in 2002 by Law No. 25,565, the system subsidizes gas in regions with lower temperatures, primarily Patagonia, the Puna region, and Malargüe (Mendoza). In 2021, it was expanded by Law No. 27,637 to 231 departments across the country, reaching 4.3 million users.

The scheme distinguishes between general users (30% subsidy) and people considered vulnerable (50%). However, the system is funded by a surcharge applied to the wholesale gas price (PIST), meaning all users in the country indirectly pay for the benefit, without requiring funds from the National Treasury.

One of the central pillars of the adjustment is the detection of high consumption in the southern region, which cannot be explained solely by the climate. According to a study cited by the Ministry of Energy itself, led by specialist Salvador Gil , 9% of users in the south of the country consume 29% of the national residential gas. According to his analysis, climatic conditions only justify 18%, and the excess is due to subsidies that encourage waste.

"Generalized subsidies promote consumption and discourage efficiency," said Gil, a professor at the National University of San Martín. Compared to European cities with a similar climate, households in southern Argentina consume up to four times more gas for heating.

Decree 465/23, extended by Tettamanti until May 31 of this year, authorizes the Executive Branch to review and adjust subsidy regimes in order to "transfer the real costs of energy" and ensure assistance only to the most vulnerable sectors.

The measure is in line with a series of reforms promoted by the government to reorganize the tariff and subsidy system. According to a recent report by the UBA-Conicet (National University of Buenos Aires) (UBA-Conicet), a 77% reduction in energy subsidies and a 68% reduction in total spending on subsidies was recorded last year.

The report also reflects that users, on average, currently cover barely 50% of the cost of natural gas. Even with the new rates, the data show that the utility basket (gas, electricity, transportation) has increased 500% since December, compared to a cumulative inflation of 149%, indicating that relative prices still need to adjust.

The current policy represents a radical shift from the Kirchnerist approach. Although Cristina Kirchner signed a decree in 2007 declaring "the rational use of energy to be of national interest," the generalized subsidy scheme was further intensified during her administration.

Between 2008 and 2022, the country spent nearly USD 200 billion on energy subsidies and gas and fuel imports. In contrast, countries like Uruguay chose to promote energy savings and invest in renewables, currently achieving one of the highest levels of clean energy in the world.

By adjusting the Cold Zone subsidies, the government seeks to correct historical distortions, reduce public spending without completely cutting off assistance to those who truly need it, and advance a more efficient energy mix.

Tettamanti, who spearheads the strategy, maintains that it is possible to consume less without losing quality of life, simply by eliminating the incentives that promote waste. The challenge now will be to achieve this balance without generating a social crisis in the regions affected by the cuts.