Argentina: Utility Compromise Could Avert Something Worse

With energy companies threatening to cut new investment and reduce production due to mounting losses, Buenos Aires has come up with a compromise plan to raise gas and utility rates for large-scale industrial consumers. While this would raise the cost of business for manufacturers and other companies operating in Argentina, the plan might help to avoid more drastic measures by the government — with many more negative consequences such as a severe power crisis and/or the nationalization of privately run utilities.