A recent report reflected a significant change in the energy subsidies scheme at the national level: there were 20% more homes that lost the entire national benefit in relation to 2024, both in the natural gas and electricity service.
In general, more families went to level 1 and must face the full cost of energy. The shift between levels especially affected the vulnerable sectors.
It should be remembered that subsidies segmentation was devised by Martín Guzmán and applied by Sergio Massa, who determined that all users, except who asked to keep it, would lose the subsidy. In 2024, under the management of Luis Caputo, the crossroads were ordered with official databases and the mandatory registration for those who received social rate.
Since June 2024, N2 and N3 have a subsidized monthly limit of consumption, both in gas and electricity. In parallel, the government applied progressive increases in rates: users N2 were the most affected, with 745% increases in gas and 465% in electricity, while the N1 already paid the full price.
Levels: impact on vulnerable users
The most worrying phenomenon, according to the report, was the generalized shift between the levels. “The most vulnerable users, level 2, passed to level 3, which corresponds to the average income users, and those of average income rose to those of high income,” he said.
More and more poor homes receive less subsidies and pay more for electricity and natural gas rates. These poor households were considered high income for the consumption made of their services.
In turn, the Milei government put a top of 350 kWh/month for poor households, which they did not have before, and all surplus consumption is without subsidy. In the case of level 3 of the average sectors, they had a top of 400 kWh per month that was reduced to 250 kWh. This process generated that rates rates percentage further fall on poor users than in the rest.
In the case of gas, users of level 2 (N2) descended 17%, from 276,618 to 230,890 households: there are 45,728 less families with social rate. On the other hand, in electricity, the fall was 18%, with a reduction of 122,463 households: there were 676,075 in 2024 and now there are 553,612.
As for level 3 (N3), users with average income, the data show a slight fall in gas, with 4,807 users less (3%), but an increase in electricity: it went from 302,484 to 328,173 families in that segment.
More than 40% already pay full rate throughout the country
At the national level, 42% of households – more than 6.9 million – pays the complete cost of electricity, and 44% of gas users pay 88% of the cost of production, according to the report presented by Guillermo Francos before the National Congress. (With El Once information)
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