The government has already advanced in the first removal of electricity subsidies (since October) and has already denounced what the second will be likewhich will be executed from December. Between the two, the increase in electricity bills is around 90%. Yet one more phase to the left elimination of these subsidies, which will be specified in February 2023.
There is also no recomposition of the tariffs for distributors (such as Edenor and Edesur), which is present in the 2023 Budget Law.
The increase so far, of 90%, is almost striking one third of families. About 5 million customers will lose their electricity and gas subsidies. They are called N1, and are – for the official parameters – of “high income”. These are family groups that have earned more than $ 250,000 in the middle of the year (now that floor went up to $ 450,000 monthly), owning three properties or three cars.
Already high-income customers they had a subsidy removal in October – it was announced for September, but the government postponed it – which it represented an average increase of 40% on the electricity bill.
The Ministry of Energy has already formalized what the next haircut will be, with an increase of about 30%. This is demonstrated by a study by the consulting firm Economy & Energy, led by Nicolás Arceo the accumulated increases will be reflected in an increase from 57% to 89% en electricity bills for customers who will lose subsidies
The segments called “media” – they win in a range from 1 to 3.5 Indec’s base canasta – they will experiment corrections ranging from 3% to 52%, after the two subsidy removals. The increase depends on the consumption they have.
For the government, the middle income group is made up of households where its members get between $ 128,000 and $ 448,000.
Customers of higher income, but lower consumption electric, are the ones that will have the greatest excursions in their ballot papers, as a percentage.
The categories of customers of electricity distributors are divided into 9 levels, based on their consumption. This ranking (ranging from R1 to R9) is not defined by household income, but by the electricity required.
Families who have lost benefits, but consume little (R2) will have a 89% increase. in these two rounds of removal. R3 customers (also considered to be conservative consumers) will experience an 87% correction. Those that follow (R4, medium consumption, but low shot) will observe an 81% correction.
Of example, an R2 customer paid an average bill of $ 1,503 in June. With corrections, it will go to $ 2,738. An R3 home spent around $ 2,431, but in the summer it will be $ 4,392, according to estimates by Economy & Energy. An invoice named R4 will go from $ 2,929 in June to $ 5,237.
Customers with higher electricity consumption, but still within the high-income category, will pay lower increases. In the three categories with the highest consumption (R7, R8 and R9), the corrections range from 57%, 59% and 65% respectively.
An R7 house paid an average of $ 6,500 in June and will rise to $ 10,000 in the summer. An R9 user (a category that consumes between 6 and 7 times more than the Buenos Aires average) will go up from $ 17,700 in June to $ 28,000 in February.
Examples in the middle segment
In the corrections to the “average” income brackets (N3 in official jargon) there seems to be more equity. Those who have a high consumption will pay a greater increase. In this way the increase for a family in this segment but with low consumption will be 3% (like R1, R2 or R3). While a user from the same group (N3), will pay between 34% and 52% more than in June when it comes to high-rate categories (R8-R9).
The sectors of lower income (referred to as N2) will undergo almost no removal of the subsidy. The increase will be minimal, between 2% and 4%. To be in this group, you must have it income of less than $ 120,000minimum retirement or social benefit recipient.
The increases reflect that the state wants customers to bear most of the cost of the electrical system.
The electricity tariff consists of three parts: the seasonal price of energy – established by the Secretary of Energy of the Nation -, the value added of distribution (VAD), which is the margin of distributors established by their regulators and taxes.
The 90% redial known so far is intended solely for users to bear a greater percentage of the costs.
“The increases are at seasonal prices (…) by varying the allocation of the subsidy, starting in November. Nothing corresponds to the energy distributors as regards the impact on the electricity service bill ”, clarify the distributors.
Company margins will also improve, but later. The 2023 budget law orders to regularize the situation of distributors through an overall review of the tariffs three months after the sanction of this regulation. But there is still nothing concrete for those signatures. Edenor and Edesur have priority, according to the law.
NEITHER
Source: Clarin
