Argentina has one of the most competitive deregulated power sectors in South America. Since 1991, the government has pursued an aggressive privatization program in tandem with the creation of an open electricity market, which has attracted foreign investors and project partners attracted by the economic growth in the country. Today, power generation capacity generally satisfies domestic demand, but there remain some remote areas that have yet to be connected to the national grid. The functions of generation, transmission, and distribution are open to the private sector, but there are restrictions on ownership of more than one function within the industry. The law guarantees access to the grid in order to create a competitive environment and to allow generators to serve customers anywhere in the country.
Generation is carried on by independent companies, including some state-owned companies.
Generators earn income from the sale of electricity and from providing reserve capacity to the system. Transmission companies operate as a regulated monopoly with regulated prices, and are not allowed to sell power. Distribution companies also operate as regulated monopolies within concession areas that are awarded on a competitive basis for 95 years. Tariffs are regulated by ENRE and include connection and usage charges. While most distribution companies have been privatized, some remain in the hands of the provincial governments.