The Government advances with the removal of subsidies and electricity and gas prices increase

The new guidelines set by the Executive They were known this Tuesday through four resolutions published in the Official Gazette, framed within the transition stage to go from generalized to targeted subsidies, which runs from June 1 to November 30.

From the Secretary of Energy explained that “this marks the beginning of the process to move from a generalized subsidy regime to a focused one, in which the user can know the cost of the kwh of electrical energy and m3 of natural gas, which is identical for all, and the assistance that the National State provides to users according to their payment capacity and that reaches up to a limited consumption limit through the recognition of a lower payment (bonus)”.

Currently, subsidies are segmented according to three types of households: high-income (N1), low-income (N2) and middle-income (N3). The N2 and N3 are those that cover the least part of the costs of the energy they consume.

The light

The area headed by Eduardo Rodríguez Chirillo decided to update the Seasonal Energy Price (PEST) for the May-October period at $57,214 per megawatt hour (MWh) for all residential users. This value has not been updated since last year and is used to calculate part of the final cost of the rates.

The regulations established that for high-income households the impact of the PEST update is total. While for low-income (Level 2) and medium-income (Level 3) households, a bonus of 71.9% and 55.9%, respectively, will be applied to that value.

In this way, Energía calculated as an example, considering average residential consumption of 260 KWh, that the bills will go from:

• N1 will go from $24,710 to $30,355

• N3 will go from $6,585 to $16,850

• N2 will go from $6,295 to $12,545

In addition, new consumption limits were set, so users who exceed them will pay more for electricity service. High-income households have no caps. While for those with medium incomes, the new cap on the subsidized amount will be 250 kWh/month, replacing the previous 400 kWh/month.


Those with low incomes, for their part, will have a maximum subsidized consumption of 350 kWh/month, “removing the fact that these users had no limit to subsidized consumption, encouraging efficient and responsible consumption with this measure,” Energy specified.

Regarding the new consumption limits for electrical users without access to the natural gas service through networks and indiluted propane gas through networks, located in certain bioclimatic zones, it was set at 500 kWh/month for the N3 and 700 kWh/month for the N2, only for the period from June 1 to August 31, 2024.

From the energy area they explained that “consumption less than the established limits is called base consumption”, so “consumption at the previously established limits will be considered surplus consumption and will be paid at the PIST and PEST prices set by the Ministry of Energy. , without bonus”.

The gas

Energy also updated the price of natural gas in the Point of Entry to the Transportation System (PIST), which is transferred to the final rates, establishing the cost for the May-October period at US$4 per million BTU.

The users of N1 (high income) They will continue to pay the entire PIST price determined since they do not receive subsidies. The N2 users will have a 64% bonus on the price paid by high-income earners, while the residential N3 They will have a 55% bonus on the PIST.

Regarding the caps or subsidized consumption limits, in the case of natural gas, the N1 do not have caps. Middle-income households maintain current limits, according to the distributor, while for low-income households, the same consumption limits apply as for N3.

From Energy they clarified that “Specific subsidy regimes such as Social Tariff and Cold Zone are maintained”while “for Public Good entities, Neighborhood and Town Clubs, and other categories of similar non-profit users, in the terms of Laws No. 27,218 and 27,098, bonuses are applied to the price of natural gas and electrical energy for N2 for the total volume consumed”.

They also reported that users who have already requested their inclusion in the Registry of Access to Energy Subsidies (RASE) will not have to register again.

Likewise, they argued for the tariff update, maintaining that “in times of scarcity and adjustment of State resources, it is necessary to review and reorder subsidies to contribute to fiscal balance without neglecting help for vulnerable users.”

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