Why do strong increases in light occur? A guide to understanding the maze of numbers on ballot papers

Increases in (light) electricity tariffs are already being felt in homes, businesses, industries, buildings, clubs and multiple other facilities across the country. The bubbles of light multiplied several times in the last months.

At the national level, the Government has predicted an increase in the price of wholesale energy, which has resulted in the removal of subsidies for all high-income or high-wealth families and those who have not requested or renounced state aid (level 1 -N1- users of the segmentation) and all other non-domestic users.

And in the metropolitan area of ​​Buenos Aires (AMBA), as well as in the provinces and municipalities, there has been a increase in distributors’ margins.

How to understand changes in your electricity bills

Next, Clarion presents to guide to understanding electricity bills after increases. A brief summary of what to watch: energy consumption, tariff categories and the four different prices already existing this year in the concession areas Edenor and Edesur.

• Consumption: As always, the central element of a ticket is energy consumption. In the case of electricity, it is measured in kilowatt hours (kWh), which changes the variable rate. During the summer consumption is usually higher than the rest of the year.

• New fare categories: The Government first reduced and then expanded the categories based on consumption levels on which fixed and variable tariffs are defined. The higher the category, the more you pay.
• As of February 16, the 9 existing categories (R1 to R9) were reduced to 4. Seeing the severe impact it would have on thousands of homes, the National Electricity Regulatory Agency (ENRE) reversed course and moderated these changes, to distribute from April 1st into 6 categories (from R1 to R6).

• Different prices for the same service: the combination of tariff increases, elimination of subsidies, progress and reversals in a new categorization of users based on their consumption has led AMBA to have 4 different prices so far this year at the same level of electricity demand.
• From the from January 1st to January 31stthe old tariffs, inherited from the Government, were in force.
• For 15 days, from From February 1st to 15thonly the new wholesale energy prices (effective from February to April inclusive) were applied with the elimination of subsidies for some users and slight increases for middle-income and vulnerable families.
• Between February 16th and March 31stwholesale prices and new distribution and transport values ​​for four categories of households based on consumption.
• From April 1st from now on, expanding to six user categories.

What are the four items to consider in electricity bills?

1. Energy consumption e invoiced period (companies read the meters Every two months).
2. Monthly billingwith fixed and variable charges.
3. Consumption category, from R1 to R9 (until mid-February); up to R4 (45 days between February and March), or up to R6 from April.
4. The fixed tariff has had greater increases than the variable tariff, to obtain a flat rate throughout the year. The effect for the user is that in the summer there is not such a notable jump in the bill, starting from higher bases; while for companies they are rewarded by costs, which remain stable throughout the year.

An example. A Tier 1 (high-income) household in Recoleta paid $16,250 in Februarycorresponding to the second monthly installment of the invoiced consumption period between 30 October and 28 December 2023 – a two-month period -, with a total demand of 860 kilowatt hours (kWh) and “ex” R4 category.

In March that same family rose to $32,800, because it started paying the first monthly installment of the two-month consumption period between December 28, 2023 and February 28, 2024, with a jump in consumption to 1,381 kWh and an upgrade to ” ex R7″. This is why the fixed rate and variable rate have increased slightly.

Finally, In April, that user received a bill for $80,500which is the second monthly installment of the invoiced period but has several different rates: those for January, those for part of February and those for the last half of that month.

With the same consumption, the fixed portion increased by 419% and the variable portion by 180%. But the final increase in the bill was 395% (it was multiplied by 5 in two months) due to the category change, consuming more energy.

These changes are occurring across the country, and especially in AMBA, which has seen significantly lagged rates.

There is further: In recent months, around 10,000 users out of a total of 5 million have received bills of up to $0 (“free”) for reimbursements of previous consumption.

On these tickets there are readings indicating that this is a fine corresponding to ENRE resolutions 850 to 853 of 2023, which companies sanctioned for billing errors or problems experienced with the service in 2022. Once these returns are completed, users will pay the actual consumption at full rate..

As Edenor and Edesur begin billing for the period starting in March, the rate increase will be much more noticeable and excludes it from state aid, as Clarín already said weeks ago. Out of every $100 a family pays to AMBA, $40 goes towards the cost of electricity production; $35 for taxes; and $25 goes to distributors.

The intention of the Government is lower public spending in energy subsidies and bring about a change in users: generate awareness that energy is expensive all over the world and that it is necessary to consume it rationally and efficiently. What is not used in the domestic market will be sent as exports and there will be a favorable trade balance for Argentina, with a greater inflow of dollars.