Through CREG Resolution 101 120 of 2026, the Energy and Gas Regulatory Commission established a temporary incentive program for the efficient use of electricity, applicable to regulated users of the National Interconnected System to encourage reduced energy consumption during periods of energy shortages caused by the El Niño phenomenon, through benefits for those who conserve energy and additional charges for those who exceed certain consumption levels.
This regulation does not modify the current rate formulas, nor does it replace the regulated rates applied by suppliers; rather, it establishes an extraordinary and temporary mechanism for economic incentives.
How does the Program work?
The Program begins by defining an individual daily consumption target for each regulated user whose billing cycle is no longer than bimonthly.
For this purpose, each supplier shall calculate each user’s individual target based on the formula established in the Resolution in order to determine the individual target for the billing meter-reading cycle, which will serve as the reference for establishing whether the user consumed below or above their individual target.
When the billed consumption during a billing cycle is less than 90% of the individual target, the user will generate Recognized Saved Consumption (“CAR” per its acronym in Spanish), calculated in accordance with the methodology set forth in the Resolution.
The CAR will be used to determine the financial benefit the user will receive, which will be credited to the user’s account on the bill for the following billing period, provided that the following conditions are met, as detailed below: (i) having a positive accumulated CAR; (ii) the consumer must not fall into any of the categories of users excluded from the Program; (iii) the consumer must not be in arrears on energy service payments; and (iv) the consumer must not have committed fraud in the measurement of consumption.
If the billed consumption exceeds 110% of the individual target, the user must pay an additional charge on the excess consumption. This charge will be calculated by applying a differential factor based on the regulated user’s category:
• 1.30 for residential users in tiers 1, 2, and 3.
• 1.50 for residential users in tiers 4, 5, and 6.
• 1.70 for commercial and industrial users.
This charge does not constitute an increase in the energy service rate, as it is exclusively part of a temporary mechanism to discourage excessive consumption. Furthermore, the funds collected do not become part of the suppliers’ assets, but rather form a fund administered by each supplier in each of the markets in which it operates.
The fund will be used exclusively to finance the benefits received by users who have succeeded in reducing their energy consumption .
At the close of each settlement period, the suppliers will distribute these funds among the users eligible for the program in proportion to each user’s accumulated CAR. For this reason, the financial benefit each user receives will be a variable amount that depends on (i) the recognized savings they have generated and (ii) the funds available in the fund during the respective settlement period. Consequently, the Program is a self-financing mechanism in which savings incentives are funded exclusively by the charges applied to users who exceed their consumption target.
Who is eligible for the Program?
The program operates automatically for regulated users with monthly or bimonthly billing, without the need to complete any paperwork with the supplier; however, the Resolution establishes a list of excluded entities, such as hospitals, educational institutions, public entities, certain self-generators, and users with special energy needs, among others.
How long is the Program in effect?
The Resolution establishes an initial term of 6 months, beginning on August 15, 2026; that is, it will remain in effect until February 14, 2027.
However, the Program may be extended for successive periods of equal duration, provided that the conditions of energy shortages, low hydrological levels, or risks to the reliability of the electricity supply, which led to the adoption of the Resolution, persist.