Chainsaw: Milei unifies the gas and electricity entities into a single organization

Through Decree 452/2025, the national government has formalized the creation of the National Regulatory Agency for Gas and Electricity, an entity that will replace the current ENARGAS and ENRE and will operate under the jurisdiction of the Secretariat of Energy of the Ministry of Economy.

The measure was signed by President Javier Milei, Chief of Cabinet Guillermo Francos, and Minister of Economy Luis Caputo, and aims to simplify regulatory structures, reduce costs, and adapt the institutional framework to international standards.

A new regulator with expanded powers

The new agency must begin operations within a maximum period of 180 days. Its creation is based on Article 161 of Law 27,742, which authorized the Executive to issue regulations to reorganize the regulatory agencies for natural gas and electricity.

The new entity will absorb all functions and powers of ENARGAS and ENRE, including oversight, advising the Executive Branch, preparing the annual budget, and imposing sanctions within the respective regulatory frameworks. It will have autonomy, functional and budgetary independence, and the capacity to act in both public and private law.

Structure and appointment of the board

The board will be composed of five members, appointed by the Executive Branch from among individuals with technical training and experience in the energy sector. The positions will last five years, with the possibility of unlimited renewal, and there will be staggered terminations to ensure institutional continuity.

The Secretariat of Energy will be responsible for the selection process, and must submit the proposal within 15 days. Prior to each appointment or removal, the Executive must submit the grounds to a congressional committee, which will have 30 days to issue a non-binding opinion.

Transition: personnel, assets, and operations

The decree provides for the full transfer of personnel, assets, and property from ENARGAS and ENRE to the new agency. Current working conditions are guaranteed until the final relocation of personnel is completed. In addition, during the transition process, the current structures will continue to operate to ensure the uninterrupted operation of the national energy system.

The final organizational structure must be approved within the next 180 days.

Financing and oversight

The agency will be financed by the inspection and control fee established in Laws 24,076 (gas) and 24,065 (electricity), as well as subsidies, transfers, donations, financial benefits, and the sale of CNG stickers, among other sources of income.

The annual budget must be published on its website before being submitted to the Executive, allowing sector stakeholders to submit substantiated objections, although these will not be binding.

The new agency will be subject to the external public oversight regime, and labor relations will be governed by the Labor Contract Law, without application of the National Public Employment System (SINEP) regime.

A step toward state modernization

This reform is part of the objectives of administrative simplification and efficiency in public spending promoted by Milei's government, and seeks to advance convergence with OECD standards, aligning the regulation of public services with models adopted by developed countries.