Argentina voids 3.3GW thermal supply award decisions, trims Cammesa powers

Argentina’s government scrapped award decisions made in a 2023 regulated thermoelectric supply auction while making other regulatory tweaks.

The moves come amid expectations of an overhaul of the electric power sector by the Javier Milei administration, which favors a decentralized contract market. 

Wholesale power market administrator Cammesa had awarded 3.3GW in supply contracts last November.

In a resolution published Wednesday announcing the decision, the federal energy department said that, to spur efficiencies, greater competition and freedom was needed in the power generation sphere, without the intervention of Cammesa or the State. 

In April the department had extended by 60 working days a window for the signing of contracts.

In related news, the department scrapped resolution No. 2,022 of 2005, which concerns additional Cammesa functions in spheres including regulation.

The department said resolution No. 2,022 was established against a different economic backdrop and in an electric sector operating context that was not in line with principles and rules established in privatization-focused electric power law No. 24,065 of 1992.

Reasons cited echoed those given in the decision to scrap the auction awards. 

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