Javier Milei's government began the full privatization of ENARSA

The Government of Javier Milei approved the complete privatization of Energía Argentina S.A. (Enarsa), the state company involved in various firms in the energy sector. The measure was formalized through Decree 286/2025, published in the early hours of today in the Official Gazette.

This way, the libertarian administration initiated the process of selling the company, starting with the sale of 50% of the shares of Citelec S.A., the company that controls Transener, the main operator of the high-voltage electricity transmission system in the country.

According to the provisions, the sale will be carried out through a public tender with both national and international participation, supported by articles 17 and 18 of the State Reform Law 23.696.

This initiative is part of the framework of the Basic Law and constitutes the first phase of a broader plan for the withdrawal of the State from the direct management of public companies. The decree clarifies that the goal is to transfer the ownership of Enarsa "through the separation of activities and assets of each business unit", implementing a "staged procedure" that ensures operational continuity and the development of ongoing projects.

The adopted model responds to a gradual strategy aimed at encouraging the participation of private capital in areas where state administration didn't achieve the expected results. "State intervention has been unable to provide an efficient and profitable solution for the National State", the decree's rationale argues.

Pampa, the firm controlled by Marcelo Mindlin, currently owns the remaining 50% of Citelec, but won't have priority to acquire the shares that will be put up for sale.

The decree also emphasizes the obligation to respect the limits set in article 31 of Law 24.065, which prohibits the same company from simultaneously acting as a generator and transporter of electricity, to avoid vertical integration in the sector.

During the year 2023, the Argentine State allocated to Enarsa more than 1,200 million pesos, paid with the taxes of Argentines, a figure that, according to the decree, highlights the inefficiency of the current public administration model.

"To ensure the company's operations continue efficiently and competitively, it's essential to promote and increase the incorporation of private investors", the official document justifies.

Meanwhile, Milei's Government considers that the prompt completion of the Five-Year Tariff Review (RQT) process—which will set the authorized increases for the next five years along with investment plans—could create an attractive scenario for potential buyers of the state's part of Transener.

The sale of the stake in Citelec represents just the first step within a more extensive program that contemplates the gradual privatization of other Enarsa business units, including the Manuel Belgrano and José de San Martín thermal power plants, the Perito Moreno Gas Pipeline, and the hydroelectric dams under construction in Santa Cruz: Néstor Kirchner and Jorge Cepernic.

The entire process will be coordinated by the Ministry of Economy, in collaboration with the Temporary Special Executive Unit known as the "Public Companies Transformation Agency", which will be responsible for issuing the necessary regulations and ensuring compliance with the relevant legal framework.