Cold Zone Regime: Changes in the Energy Sector
Law 27,828 Amends the Cold Zone Regime and Introduces Changes to the Energy Sector
The new legislation broadens the scope of the surcharge used to fund gas consumption subsidies, changes the eligibility conditions for certain benefits, and adds provisions on electricity, renewable energy, and hydrocarbons.
On October 13, 2026, Law 27,828 was published in the Official Gazette of the Argentine Republic. It amends the Cold Zone Regime and sets out new provisions applicable to the energy sector.
Among the main changes is the broader scope of the surcharge that funds the Trust Fund for Gas Consumption Subsidies. It now covers all natural gas consumed, or sold for consumption, through networks or pipelines within the national territory, regardless of its final destination or use, subject to certain exceptions.
A Surcharge That Reaches Business Consumption
The law establishes a surcharge of up to 7.5% on the price of natural gas at the point of entry into the transportation system, applicable to volumes consumed or sold for consumption through networks or pipelines, whatever their final use.
As a result, the regime also covers gas used for commercial, industrial, and productive activities, which may have economic consequences for companies that use this resource in their operations.
The following are exempt from the surcharge:
- Volumes intended for the export of natural gas or liquefied natural gas (LNG).
- Gas injected into the transportation system from imported, regasified LNG.
The National Executive Branch may raise or lower the surcharge by up to 50% relative to the level set by the law.
The new regime will remain in force until December 31, 2031.
Changes to Cold Zone Subsidies
The legislation keeps the benefits for the Patagonian Region, the Malargüe department in Mendoza, and the Puna region, under the conditions set out in the law.
For the other bioenvironmental zones covered by the regime, it establishes an additional discount for residential users who are registered in the Targeted Subsidies Regime and meet certain socioeconomic requirements.
The criteria considered include household income, holding a family housing certificate, pensions for veterans of the South Atlantic War, and certain disability-related circumstances.
Other Changes in the Energy Sector
In addition to the amendments to the Cold Zone Regime, Law 27,828 includes provisions relevant to various segments of the energy market:
- Electricity market: establishes mechanisms to offset certain revenue shortfalls of distribution and transmission companies arising from tariff emergency regimes, subject to the conditions set out in the law.
- Renewable energy: extends until December 31, 2045, the period for tax-free access to and use of renewable energy sources, and, on an exceptional basis, allows the assignment of supply contracts to be authorized under certain conditions.
- Electricity and gas tariffs: introduces changes related to the recognition of energy procurement costs and their pass-through to tariffs.
- Hydrocarbons: repeals certain promotional regimes, while preserving the vested rights of holders of previously approved projects in the cases provided for by the law.
Impact on Businesses
The broader scope of the natural gas surcharge is one of the most significant aspects for the business sector.
Companies that use natural gas in industrial processes, commercial establishments, or other activities should assess its potential effect on their energy costs and review how it affects their supply and billing terms.
Law 27,828 took effect on October 13, 2026, the date of its publication in the Official Gazette.