On February 1, the Government of Argentina removed the subsidies on electricity and raised prices to reduce fiscal expenditures and encourage investment in the energy sector. In Argentina, the federal government only controls energy costs in the capital and its suburbs. Provincial governments outside of Buenos Aires set their own rates. Utility tariffs have been largely frozen since the country’s economic crisis of 2001/02, and sharp price hikes are now expected. However, to protect vulnerable households against the impact on their purchasing power the measure was implemented in conjunction with the introduction of a new social tariff to provide subsidies on the basis of income and assets owned.