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Privatization/Concession | Government/Regulations | Thermo/combined cycle generation | Renewable generation | Distribution
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MeneameThe loss by President Cristina Fernández's wing of the Peronist party in Argentina's past congressional election could be the basis for a swing away from submission to the executive branch towards liberalization of the country's energy sector, Alberto Cisneros, CEO and president of Venezuela-based Global Business Consultants, told BNamericas.
Natural gas and power prices in Argentina are heavily regulated below market values, and the government also subsidizes expensive imported fuel which artificially inflates demand. Natural gas producers and power generators, meanwhile, are hesitant to invest in the country because of the low prices.
"The new congress, which will be sworn in on December 15, will no longer accept power and influence as passively in adopting bills that would be meaningless or senseless. My guess is that from December onwards the situation in Argentina could change," Cisneros said.
The new political environment is coupled with an upcoming presidential election in 2011, for which new potential candidates have already emerged.
With these new political factors at play, Cisneros said he expects to see Fernández's government liberalize prices due to a fear that, if it does not, political rivals will assume power and be willing to take such measures.
"I'm not trying to say that everything in Argentina is going to be fixed from now on. What I'm trying to stress is that there are new opportunities for that to happen and that those opportunities have not been present before," Cisneros said.
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