Resolution SE 21/2025: Amendments to the Regulatory Framework of the Electricity Sector
Energy Department Report | Resolution SE 21/2025: Amendments to the Regulatory Framework of the Electricity Sector
On January 28, 2025, Resolution 21/2025 of the Secretariat of Energy (“Res. SE 21/2025“) was published in the Official Gazette. This resolution primarily: (a) lifts the suspension established by Resolution 95/2013 of the Secretariat of Energy, thereby reauthorizing Large Users to enter into Power Purchase Agreements; (b) allows thermal generators operating in the Spot Market to procure their own fuel, thereby removing CAMMESA from this role, except in cases where thermal generation supply contracts do not require self-management of fuel procurement and (c) repeals, as of February 1, 2025, Resolution 354/2020 of the Secretariat of Energy, which set firm gas volumes for Compañía Administradora del Mercado Mayorista Eléctrico S.A (“CAMMESA”, for its acronym in Spanish).
Res. SE 21/2025 aims to encourage new investments, promote the adoption of more efficient technologies and a more effective dispatch system, normalize the operation of the Wholesale Electricity Market (“WEM“), gradually decentralize fuel management, and establish values for unsupplied energy that accurately reflect market conditions.
The most relevant aspects of Res. SE 21/2025 are as follows:
1- Authorization of Contracts in the Term Market. The temporary suspension established in Section 9 of Resolution 95/2013 of the Secretariat of Energy (“Res. SE 95/13”) is lifted for electricity generation, self-generation, or cogeneration projects from conventional thermal, hydroelectric, or nuclear sources that have obtained or obtain commercial authorization as of January 1, 2025. This enables project holders to enter into supply contracts in the term market with demanding agents, distributors, or Large Users of the WEM.
Consequently, Large Users are exempted from the prior obligation to acquire energy exclusively through CAMESSA, as established in Section 9 of Res. SE 95/13 (except for existing regulatory exceptions, such as supply contracts between Large Users and renewable energy generators).
2-Repeal of the Additional Generation Availability Contracts Regime under the “Servicio de Energía Plus.” Sections 2 to 9 of Resolution 1281/2006 of the Secretariat of Energy, which regulated the so-called “Servicio de Energía Plus” are repealed. This regime allowed certain generators, cogenerators, and self-generators to enter into contracts to provide additional generation availability to Large Users to support increases in demand beyond their 2005 base demand.
Furthermore, Res. SE 21/25 establishes that the incorporation of new contracts or the renewal of contracts under the “Servicio de Energía Plus” regime may only take place until October 31, 2025. Existing contracts will remain in effect until their termination.
3- Autonomy in Fuel Management for Thermal Generators. Section 8 of the Res. SE 95/13 is amended to establish that (a) for Thermal Generation Supply Contracts without a self-management obligation, fuel procurement and dispatch will continue to be managed by CAMMESA, while (b) thermal generators operating in the Spot Market are authorized to manage their own fuel, with CAMMESA acting as a supplier of last resort.
Additionally, the resolution establishes that self-procured fuel costs will be recognized based on the corresponding reference price used and accepted in the Variable Production Cost Declaration, along with recognized freight costs, costs associated with Natural Gas Transportation and Distribution, and related taxes and fees.
4- Repeal of Resolution 354/2020. As of February 1, 2025, Resolution 354/2020 of the Secretariat of Energy is repealed. This resolution established (a) the firm gas volumes considered by CAMMESA, including volumes resulting from contracts under the GasAr Plan and those covered by the TOP obligation under the supply agreement between IEASA and YPFB, and (b) the manner in which CAMMESA must allocate natural gas quotas to thermal generators according to the dispatch priority order based on gas origin.
5- Cost of Scheduled Unsupplied Energy. As of February 1, 2025, the cost of Scheduled Unsupplied Energy will be set at USD 1,500/MWh, with the following failure rate thresholds concerning demand and their respective valuation: (a) up to 5% 350 USD/MWh; (b) up to 10% 750 USD/MWh and (c) more than 10% 1.500 USD/MWh. These values will remain in effect on a transitional basis until a socioeconomic evaluation of the valuation of the Cost of Unsupplied Energy is conducted.
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