As the blue dollar soared at a rate of more than 20 pesos in one day, Economy Minister Sergio Massa and the controller of electricity distributor Edesur Jorge Ferraresi announced on Monday a plan of works that the company will carry out in all the municipalities of its concession areain the south of the Buenos Aires Metropolitan Area (AMBA).
Although the investment amount has not been specified, It is estimated to be $7,000 million. The works will be in all municipalities. The most important of those announced will be in the Miter substationIn the city of Buenos Aires.
Massa underlined it the money for these works will come “from 37% of what is foreseen in the tariffsThat money will come from what is collected by customers through invoices.
These works will last 180 days. A long-term five-year plan will be announced in two weeks, according to Massa. There weren’t many technical details.
Almost all the mayors of the Edesur concession were present at the event, which was held at the Kirchner Cultural Center (CCK).
Electricity bills will increase at least twice this year in the city of Buenos Aires and in the Conurbano. The first increase was on April 1st and the next one will start on June 1st.
This is demonstrated by a calculation carried out by the consultancy firm Economía & Energía the increases will be from 19% to 48%depending on the category of households in the grant register.
The increase-tariffs-high income For segments N1 (high income, who have not applied for benefits or who want to continue saving in dollars), the increase will be on average 19%. An average ticket in this segment will run from $4,375 to $5,200 a monthaccording to Economia e Regioni, the consultancy company chaired by Nicolás Arceo.
In any case, within N1 customers -more than a third of the standard-, the increases will also be modified according to their consumption levels. Customers named R1-R2-R3 (low electricity demand) will see an increase of between 12% and 15%. A bill that is $3,500 today will go up to $4,000, or a $5,700 bill will go up to $6,400.
The increase will be felt most in homes with the greatest demand. They are categories from R7 to R9. To get an idea, they would already be paying over $10,000. There, the increase will be closer to 30%. A $12,000 bill will expand to $16,000, and a bill that is now around $17,000 will increase to $22,000.
Furthermore, from May subsidies for electricity costs will be removed, which account for 60% of the bill. The removal of benefits will be for higher income sectors (N1), as well as those who want to continue accessing the savings dollar and households who have not registered on the benefit register.
Middle-income families will see a 30% increase.. They are called N3. These are clients who have asked for a portion of their benefits to be withheld for them because household income was under $360,000 when the segmentation was launched mid-year.
In Buenos Aires electricity bills, almost half of what is paid is the electricity cost. Distributors and transporters – those who bring electricity to homes and businesses – keep just over a quarter of the ticket (27%). The rest are taxes.
A “median” utility bill — a “category average” — will range from $2,700 to $3,500 in middle-income households. Again, the impact will differ depending on consumption.
Likewise, he specified that “this project will be carried out by survey conducted jointly by municipality of the concession area” that Ferraresi presented to the ministeror, to the controller of the National Electricity Regulatory Agency (ENRE), Walter Martello; the Secretary of Energy, Flavia Royon; and the Undersecretary of Electricity, Santiago Yanotti.
For his part, Ferraresi stressed that this plan “It has been agreed with the mayors of all the municipalities of the concession area, after the territorial survey”.
Last week, ENRE fined Edesur $132.665 million, which will go directly as compensation to users for the power outages that occurred in the early days of last December.
Minister Massa announced it in mid-March the intervention for 180 days of Edesur “for the purposes of checking compliance with the works and improving the service” that it must provide in its concession area, in response to the service cuts that left thousands of users without electricity in the summer.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.