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Electricity tariffs: the Government recalculates and “levels” the increases

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The Government decided it another change more in electricity tariffs of the Buenos Aires Metropolitan Area (AMBA), where they operate Edenor and Edesur.

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Starting Monday 1 April will “soften” the increases for households with higher consumption, above 600 kilowatt hours (kWh) per month. The change was made official this Wednesday through resolutions 198 and 199/2024 of the National Electricity Regulatory Body (ENRE).

On February 16th, The Government had reduced the residential tariff categories from 9 to 4, which generated a large dispersion of percentage increases. Depending on the level of segmentation and tariff category, a user might have final increments on their ballot papers between 90% and 300%.

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The effect of the elimination of the 9 categories and the unification into 4 led families with consumption greater than 600 kWh per month to see a Increase in fixed expenses by 424%. and of 345% in the value of variable charges. And the effect was a big jump in the bills that started arriving in the last few days.

Now, with this regulatory change, the Government has divided the residential categories for the AMBA into 6 and has authorized a real reduction in tariffs for users who consume between 601 and 700 kWh per month; reduction of fixed expenses but increase of variable ones for those who ask for more; and an increase in those falling into the block from 501 to 600 kWh.

The average consumption of a home in Buenos Aires is between 300 and 350 kilowatt hours per month, but those without gas usually double their electricity demand to compensate for that energy source. Therefore, those without gas service could have a huge adjustment in their electric rates.

Edenor and Edesur tariffs will be updated again in May and will be indexed based on the evolution of wages (55%) and the combination of wholesale and retail inflation.

As Clarín stated, in February the Government defined the total elimination of subsidies at a national level for all level 1 (N1, high income) families of the segmentation, businesses, industries, hospitals, schools, clubs, buildings and public lighting, including others.

From mid-March we begin to see the first jumps in the bills of all non-domestic users, with increases of more than 300% and which reflect only part of the two-month period until state aid is completely eliminated. .

SN

Source: Clarin

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