The Government authorizes the second stage of the privatization of ENARSA

The National Executive Power authorized the second stage of the privatization of Energía Argentina Sociedad Anónima (ENARSA) through Decree 1107/2026, published on September 28, 2026, in the First Section of the Official Gazette of the Argentine Republic. The regulation enables the sale of all state shares in Termoeléctrica Manuel Belgrano S.A. (TMB S.A.) and Termoeléctrica José de San Martín S.A. (TSM S.A.), and provides for the subsequent sale of the share package in Central Termoeléctrica Guillermo Brown S.A. (CTGB S.A.). The decree bears the signatures of President Javier Milei and Minister of Economy Luis Andrés Caputo, and was signed in the City of Buenos Aires on September 25, 2026.

The measure is issued within the framework of Article 7 of the Law of Bases and Starting Points for the Freedom of Argentines No. 27,742, which declared ENARSA subject to privatization, and continues the process initiated by Decree No. 286/25, which authorized the total privatization of the company and the sale of shares in Compañía Inversora en Transmisión Eléctrica CITELEC S.A. The procedure is framed under Article 4 of Annex I of Decree No. 695/24 and is processed under File No. EX-2026-88336690-APN-DGDA#MEC, with a complementary report from the Ministry of Economy identified as Annex II (IF-2026-90842290-APN-SE#MEC).

National and international public tender

Article 1 authorizes the sale of all ENARSA shares in TMB S.A. and TSM S.A., representing 65.01% and 68.83% of the capital stock of each company, respectively. These holdings are equivalent to 4,601,324 and 4,871,709 shares, subscribed by the Secretariat of Energy on March 11, 2021.

The operation will be implemented through national and international public bidding procedures, in accordance with Article 18, subsection 1) of Law No. 23,696 and its amendments. The trust companies manage combined cycle plants of at least 800 MW each, built within the framework of FONINVEMEM.

Guillermo Brown and the end of the trust

Article 2 authorizes the sale of the shares that result from the ownership of ENARSA in CTGB S.A., an operation that will become effective once its incorporation as a shareholder is completed. The Central Termoeléctrica Guillermo Brown Trust will expire on September 30, 2026, as agreed in the addendum to the trust contract signed on April 9, 2026.

The Ministry of Economy, with the assistance of the Special Temporary Executing Unit “Public Company Transformation Agency”, shall:

• Manage the liquidation of the trust and the subscription of shares in the name of ENARSA.
• Subsequently sell those shares through national and international public bidding.
• Safeguard in the bidding documents the preferential rights of the remaining shareholders provided for in the corporate bylaws.

Without a Participatory Ownership Program

Article 4 establishes that the chosen modality does not provide for the implementation of a Participatory Ownership Program nor the granting of preferences under the terms of Article 16 of Law No. 23,696. Article 6 provides for sending a copy of Annex II to the Bicameral Commission created by Article 14 of that same law within the scope of the Honorable Congress of the Nation.

The decree will enter into force on the day following its publication, while the Ministry of Economy acts as the Application Authority and will issue the complementary operational regulations.

The regulation defines the destination of strategic electrical assets and advances on the core of the official plan for the State’s withdrawal from thermal generation. For readers, it implies the transfer to the private sector of three generating companies and their power plants, with a direct impact on the wholesale electricity market and on the fulfillment of current works and supply contracts.

Source: Official Gazette of the Argentine Republic, September 28, 2026, First Section (official reference: Decree 1107/2026, notice No. 348025).