The cost of energy is the most important component of the electricity bill.
The national electricity regulator (ENRE) has ordered distributors Edenor and Edesur to apply a 16.5% increase since Tuesday. In this way, the regulator respects the order of the Secretary of Energy.
The ministry announced on Friday that it had instructed regulators (Enargas in the gas service and ENRE in electricity in Buenos Aires and suburbs) to implement an increase. In electricity it is that corresponding to the seasonal price of electricity (PEST), which is the cost of electricity itself.
The cost of energy is the most important component of the electricity bill. That’s almost half of what each customer pays. The increase is 40%, which means that distributors will have to pay this increase to Cammesa, the wholesale administrator of the electrical system. But the impact on customers is 16%. As reported by the Government; this is the share of the increase that will be passed on directly to consumers.
“The provisions of Resolution SE no. 405/2022, with which the National Secretariat for Energy determined the increase in energy prices for the Wholesale Electricity Market at a national level, arranging the updating of the tariff table for the electricity distributors of the Metro Area of Buenos Aires (AMBA) ”, announced ENRE.
According to the regulator, “through ENRE Resolutions no. 171 and no. 172/2022 the positions to be implemented in the respective fields have been establishedconcessionaires of the public electricity distribution service Edenor and Edesur to residential and non-residential users and to large users. The update reflects the seasonal change in the price of energy and is independent of the income of transmission and distribution companies, ”according to that regulator.
“The tariff for families will have an average increase of 16.53% for those who do not receive a social rate and 7.7% for those who receive this benefit. Likewise, the average increase will be 16% for commercial users and 19% for categories T2 and T3, “ENRE said in a statement.
On Friday, the Secretary of Energy, led by Darío Martínez, it also ordered Enargas to advance in a close to 20% rebalancing for gas tariffs. He also did this through the decision that customers pay more for the gas itself. This component is called the Transportation System Admission Price (PIST).
Close to the Minister of Economy, Martín Guzmán, they feared that ENRE the decision of the Secretary of Energy does not apply. But the more Kirchnerist sectors of Energy had already expressed that, although they disagreed with the increase and would not cooperate, they would not even hinder it. And that’s what happened.
Soledad Manín, controller of ENRE, is aligned with Federico Basualdo, the undersecretary for electricity. Basualdo was the controller of ENRE before being promoted to undersecretary.
Provincial electricity distributors will also have to pay for this increase in the energy they consume, which is 36% more expensive. Some are considering their transfer to customers, while others may absorb the cost, according to industry comments.
The regulation of the Edesur and Edenor concessions is the responsibility of the national Executive. Instead, the jurisdiction of the domestic distributors is in each province. The regulators in each district must decide which increase policy each distributor requires.
In the case of gas, all concessions depend on the national state. The regulator is the Enargas. Energy ordered that agency to raise the price of gas paid by customers starting Tuesday. This is the “PIST” price, also called the “wellhead”. It is what users pay for the gas itself.
Source: Clarin
