Energy Crisis Tensions in Argentina as Government Urges Caution over Delays in Payments to Electricity Generators

During a crisis, the former official of Mauricio Macri urged clients to exercise caution and expect delays in public spending. He questioned whether the government would prioritize paying retirees or energy companies when faced with a shortfall of funds. The debt for electricity subsidies, which was increased in early 2024, has caused tension between the government and energy companies. The debt with electricity generators amounts to approximately $1.3 billion, while gas producers are owed an additional $900 million.

Energy companies such as Central Puerto, Pampa Energía, YPF Luz, and others are heavily leveraged with loans from international banks. The delay in payments from the government has led to concerns about legal security and supply risks for these companies. Companies like Pampa Energy and AES have expressed their concerns about the government’s default on payments and have sent statements to the National Securities Commission to clarify their situations and debts. Both companies insist they currently have no financial problems but warn that prolonged delays in payments could impact their operations.

Cammesa, a company with equal ownership between the Ministry of Energy, generators, transporters, distributors, and users, acts as a financial intermediary in the energy market. The decision to stop paying subsidies to achieve a fiscal surplus has caused debts to accumulate, leading to tensions in the sector. The Renovador Front and the General Confederation of Labor have raised concerns about the lack of real surplus in public spending due to unpaid energy subsidies. They argue that if these subsidies had been paid, public spending would have increased significantly in the sector.

In conclusion, the delay in payments from the government to energy companies has raised concerns about legal security, supply risks, and potential international trials. The sector is urging the government to prioritize payments to ensure liquidity, predictability