Tariff increases and social unrest: to avoid conflicts, the Government will keep the register open to receive subsidies

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Government accelerated the removal of electricity and gas subsidies, an old request from the IMF. The slew of raises that will be given starting this May will do the electricity bills go up 450% compared to last year (3 times more than inflation) e those of gas advance 179%.

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These increases, which are the highest, are expected to affect higher-income households. They are those who have registered in the Register of Access to Energy Contributions (RASE) but whose members as a whole they charge more than 3.5 basic baskets (for a typical household), today at $670,000 or those who, despite having an income higher than that value, have not registered because they do not want to give information to the State and know that they will lose their subsidies anyway. Or those who want to keep buying dollar savings.

But there is one group who have incomes of less than $670,000 who, for various reasons, did not register despite the requirements and needed assistance.

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The Government fears that in this group there will continue to be many people who cannot pay the increases and who gradually collect the bill social unrest is growingin the midst of the tension which is already generating monthly inflation parked above 7%.

For this reason, in conjunction with the publication of the new tariffs in the Official Gazette in recent days, the authorities have come out to insist that registrations continue to be open to maintain subsidies to “protect the middle and lower class and that they can access the with fair and reasonable rates”indicated to the Ministry of Energy.

Registration is done by filling out the form on the argentina.gob.ar/subsidios website or at the stands that the Secretariat has set up in various neighborhoods precisely to encourage people to register.

According to the portfolio led by Flavia Royón, from May – when the subsidies for high incomes end – almost 7 out of 10 Argentines will continue to receive state aid.

“The 30-33 percent who don’t need government subsidies because their income allows them to meet their bills will pay full price. They are family groups that have a minimum income of $670,000. The increase represents less than 0.2% of their income”, they kept in Energia.

“Those who cannot pay have the possibility of making an act of notoriety to be protected by the state. The only information they need are the identification number and the customer code of the services”, they added.

What will the increase in electricity tariffs look like?

High income N1: In electricity, subsidies will be lifted in May and tariff increases will also take place in June. Thus, an average utility bill for a home in this group will be approximately $10,670 in June, a leap of 446% compared to the $1,953 the same family paid in June 2022, according to the consultancy Economía & Energía, led by Nicolás Arceo.

Median income (N3): these families will have a subsidized 400 kWh block and, if exceeded, will have to pay the full rate. They will have a year-over-year increase of 181%. In 2022, his average bill was $1,953, and that will rise to $5,500 in June.

Low income (N2): they will keep the benefits, but will have a 114% rate increase. In one year, it will go from $1,600 to $3,500.

What will the increase in gas tariffs look like?

High income N1: the increase in accumulated gas bills since last winter is 179%. As of June 2022, the bill was around $2,446 and in May, it will reach $6,821. The increase is 179%.

Median income (N3): They will go from a $2,446 bill last winter to $5,000 this winter.

Low income (N2): In this case, tickets will increase by 47%, going from an average of $1,691 to $2,485.

Source: Clarin

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