The Government moves forward with the privatization of Transener and initiates the sale of Enarsa

The Government of Javier Milei will publish a decree in the coming days that enables the privatization of Energía Argentina S.A. (Enarsa), initiating the sale of strategic assets such as its stake in Citelec, the company that controls Transener, the country's main electricity transporter.

According to Infobae, the process includes a national and international public tender to divest the share package that Enarsa currently holds in Citelec. The official intention is to complete this operation before mid-year.

The privatization will begin with the sale of Transener

Enarsa owns 50% of Citelec's shares, while the other 50% is held by Pampa Energía, the company of Marcelo Mindlin. Together, these stakes amount to 51% of Transener, a company that operates more than 12,400 kilometers of electric transmission lines.

Although Pampa Energía has statutory priority to acquire the share package, the decree in preparation expressly rules out that option. Additionally, Article 31 of Law 24.065 prevents a generator like Pampa Energía from having full control of a transporter.

The Government seeks to ensure transparency in the privatization process, without giving preferences to shareholders or employees, something that will also be established by the decree.

Expectation for the impact of the tariff review

Another key component in this operation is the completion of the Five-Year Tariff Review (RQT), which will define the income scheme for energy transporters over the next five years. A clear tariff structure could attract investors interested in acquiring control of Transener.

The Energy and Mining Secretary Coordinator, Daniel González, had already announced in December, during Petroleum Day, that the goal was to divest this asset before mid-2025.

Enarsa will be restructured and will retain only two businesses

The privatization of Transener is just the first step. The Government plans to proceed with the sale of another 17 Enarsa assets, although it acknowledges that these processes will be more complex. The intention is for the state company to retain only the operation of Liquefied Natural Gas and the commercialization of natural gas.

Enarsa also participates in the thermal power plants Manuel Belgrano and General San Martín, owns sections of the Gasoducto Norte and the Perito Moreno, and coordinates the construction of the Santa Cruz dams (Néstor Kirchner and Jorge Cepernic).

As part of the agreement with the International Monetary Fund (IMF), the Government committed to reactivating negotiations with China to obtain financing to complete these works.

More privatizations on the agenda

The Bases Law promoted by the Executive includes the total privatization of Enarsa and Intercargo, and the partial transfer —via concession or incorporation of private capital— of Aysa, Belgrano Cargas, Sofse, and Corredores Viales.

Additionally, the opening of Nucleoeléctrica Argentina and Yacimientos Carboníferos Fiscales to private investments was authorized.