THE removal of subsidies that the Nation defined in February to eliminate the fiscal deficit quadruple the electricity bills of non-residential users such as SMEs in trade, industry and construction -with impact on expenses-, sanatoriums, hotels and the Street lighting of the Municipalities, among others.
He increase in tariffs it is a central element of the economic program of Javier Milei and Luis Caputo, in two directions: a adjustment equivalent to $3 billion in energy subsidies and the recomposition of the distributors’ cash register to improve the quality of the public service.
Last month, the government eliminated all electricity subsidies, except those targeting low- and middle-income households (Level 2 -N2- and Level 3 -N3- of the segmentation, respectively). Furthermore, in the Buenos Aires Metropolitan Area (AMBA) there was an increase in margins of Edenor and Edesurwhile the provinces adjusted the incomes of the distributors and cooperatives they regulate in their jurisdictions.
In recent days these effects have begun to be felt throughout the country. According to what they said Clarion sources from the energy sector, the Hotels of an important businessman in Mendoza went from paying $15 million a month in electricity to $65 million, with fewer tourists staying. It’s a 333% increase.
THE MUNICIPALITY OF ESTEBAN ECHEVERRÍA RECEIVED AN ELECTRICITY BILL OF 270 MILLION DOLLARS
We received the city street lighting bill in the amount of $271,114,175. In February the rate was $71,882,479, which means an increase of 382% in just one month.
On the invoice… pic.twitter.com/0gKSzfEmQP
— Fernando Gray (@fernandogray) March 19, 2024
The mayor of Esteban EcheverríaFernando Gray, protested because he received a Electric lighting bill increasing by 277%: from $71.8 million paid in February to $271.1 million in March. In the City of Buenos AiresThis was reported by administrative sources the electricity bill rose to almost 270%. It’s inside Mar del Plata337%.
“We believe that the time has come to take for granted that services have a value and that we have to pay for them, we have already tried the alternative and we have record inflation”, defended the Government Ramón Lanús, mayor of San Isidro and PRO.
Miguel Summapresident of Argentine Chamber of Horizontal Ownership and Real Estate Activities (CAPHAI), commented: “In a 13-story office building on Avenida Córdoba, around Tribunals, which was paying $500,000 in February, the bill reached $1,700,000 this month.” “There are buildings where the electricity to meet the goal has gone from $6,000 to $25,000,” she added.
There are some administrations that are already sending spending increases this month, specifying that part of the increase corresponds to the impact of electricity on the consortium.
Vittoria Loisilawyer and member of Lega Consorzio Immobiliare Orizzontalesaid: “This month the effect has started to be noticeable and with the next expenditure, even more so. The increase in some cases could have been 350% and the impact for owners and tenants is proportional to the impact has the energy on construction costs, which it can be 10% to 20%. In those that have several elevators or servicesthe impact could be greater.”
The situation transcends the limits of AMBA and multiplies across the country. In Córdoba, the sausage merchant Dario Villaruel went to pay for the energy with a invoice cart.
The provincial governor, Martin Llaryorahe began to concede credits to pay for electricity in 3 installments. The same thing happens in Tierra del Fuego, with the cooperative of Rio Grande. Missions He also launched a plan to pay the bill in three installments.
In Salta, governor Gustavo Sáenz protested against the historic asymmetries of electricity bills between the Interior and the AMBA, which have nothing to do with subsidies for the cost of energy, which are uniform throughout the country.
In the energy sector the considerations are very varied. In one company they assure: “We consider these measures positive. Ultimately, value will be given to energy and users will begin to internalize its efficient use. of resources.” In another company, despite having an income below inflation, they doubt the sustainability of this plan and fear that the late payment.
Meanwhile, the Government is preparing to define the Basic Energy Basket (CBE) in the next few days, which will come into force from May throughout the country and will place limits on subsidized “reasonable” consumptionas long as they represent more than 10% of the family income.
Walter Martello, deputy ombudsman of the province of Buenos Aires, estimated that small businesses They will pay between $120,000 and $469,000 per month, depending on consumption.
Is in the National Electricity Regulatory Agency (ENRE) confirmed to Clarion that a high-income (N1) household consuming more than 600 kilowatt hours (kWh) per month had a bill until last month of less than $30,000, which will now increase to more than $120,000.
A report from Interdisciplinary Institute of Political Economy (IIEP) of the UBA and Conicet have calculated it increases for businesses and industries on average AMBA 311% and 286%respectively.
From May there will be a new round of subsidy removal to low- and middle-income families, as well as the update for those with high income or wealth, who could duplicate again the cost of energy for the winter, according to the first projections of the wholesale electricity market management company (Cammesa).
The income of AMBA distributors – Added Value of Distribution, VAD will also be updated monthly in relation to inflation and salary developments.
Source: Clarin