Javier Milei's government has decided to move forward with a measure of significant fiscal and symbolic impact: it will eliminate electricity and gas tariff subsidies for households located in gated communities, country clubs, and high-income areas throughout the country.
The initiative, which had already been implemented in the Buenos Aires Metropolitan Area (AMBA), will be extended nationwide as part of Milei's government's adjustment plan.
Stricter segmentation by location
The Energy Secretariat will be responsible for applying a new criterion to exclude users from the subsidy scheme. Unlike the current system, which is based on self-declared income through the Energy Subsidy Access Registry (RASE), the new approach will take into account objective variables such as the property's georeferenced location and the level of maintenance fees.
This means that users living in areas classified as high-income will automatically lose the subsidy, regardless of whether they were listed as beneficiaries. "The State can't subsidize those who live in top-level neighborhoods," official sources stated to justify the new approach.
Fiscal savings and support for the provinces
According to government estimates, in AMBA more than 15,500 households were removed from the subsidized regime, which represented fiscal savings of nearly $3 billion annually. Now, the aim is to replicate this policy in districts such as Córdoba, Mendoza, Santa Fe, Tucumán, and Salta, with the active collaboration of provincial governments.
In addition, digital tools such as the "Mi Argentina" application and the Energy Secretariat's website will be enabled so that users can check their status, update information, file complaints, and request reconsideration if they believe the measure affects them unfairly.
New subsidy logic
The new scheme aims to focus state assistance on truly vulnerable sectors and reduce public spending. Meanwhile, authorities are working on a second stage that would include cross-audits with tax agencies to detect inconsistencies in users' asset declarations.
