The National Government, through a recent resolution, established the new Seasonal Price of the Electric power (PEST) corresponding to the winter seasonal programming and new prices for the gas at the Point of Entry to the Transportation System (PIST). These new prices They will be transferred to invoices from the current month of June 2024that is, it already applies to consumption that began to take place since last Saturday.
The decision is the first carried out by the Ministry of Energy since the six-month “transition period” began in which it will have broad powers to modify prices and subsidies.
The percentage increase in electricity bills It varies significantly depending on the income level of the users. For high-income users (N1), the bill will increase by 22.85%. Middle-income users (N3) will experience a much more significant increase, with an increase of 155.88%. On the other hand, low-income (L2) users will see a 99.29% increase in their electricity bills.
For the aforementioned period, the Stabilized Price of Electrical Energy (PEE), the Stabilized Price of Transportation (PET) and the Power Reference Prices (POTREF) have been established. These prices will be applied according to the different times of the day: peak (6pm to 11pm), off-peak (11pm to 5am) and rest (5am to 6pm).
The prices established by user segments are as follows:
- N1 (high income) and productive sectors (commerce and industry): Between $56,019 and $59,298/kWh.
- N3 (average income): The base consumption will be $30,000/kWh, while the excess consumption will be charged at the values indicated for segment N1.
- N2 (low income): The base consumption will be $20,000/kWh, and the excess consumption will be paid at the values indicated for segment N1.
N1 users, without subsidies, will suffer electricity increases of 23%, N2 users 99.92% and N3 users 155%
To illustrate the impact of these changes, consider an average residential consumption of 260 kWh monthly. Under this new pricing structure, the final monthly invoices will be as follows depending on the segmentation level:
- N1 (high income): The bill will go from $24,710 to $30,355.
- N3 (average income): The bill will go from $6,585 to $16,850.
- N2 (low income): The bill will go from $6,295 to $12,545.
On the other hand, Resolution 90/2024 published by Energía establishes new consumption limits with subsidies. This implies that users N2 and N3 that exceed these limits will pay more for electricity and the ballots could be even heavier.
“For the demand of users categorized in the Level 2 the base consumption limit is set at THREE HUNDRED AND FIFTY (350) kWh/month”says the standard. This segment did not have a consumption limit with subsidies with the scheme that had been in effect since 2022 and that the Government modified this Wednesday. For cold areas the limit will be 700 kWh/month.
This update of the PEST seeks to normalize the electricity sector, establishing a single price that will allow residential users to contribute with greater coverage of the supply cost. The Government, in accordance with the provisions of Decree 465/24, determines wholesale price bonuses according to the income levels of users and up to a certain consumption limit.
Federal and provincial energy distributors must show on their invoices the amount of the bonus that each user receives from the National State. Based on this structure, the National Electricity Regulatory Entity (ENRE) and local jurisdictions will define the new tariff tables, including transportation and distribution values, as appropriate.
This update is made after having postponed said adjustment until May 2024, thus seeking a more gradual transition towards the normalization of prices in the electricity sector.
The National Government has established new prices for gas at the Point of Entry to the Transportation System (PIST), which will be reflected in invoices starting in June 2024. These adjustments seek to guarantee a sustainable and equitable supply, avoid shortages and ensure the economic viability of the energy sector.
For N1 residential users (high income) and productive sectors (commerce and industry), the new price will be 3.30 USD/MMBTU, according to the distributor. As for middle (N3) and low (N2) income users, prices were set as follows:
- N3 (average income): The base consumption will be 2.34 USD/MMBTU, while the excess consumption will be paid at 3.30 USD/MMBTU.
- N2 (low income): The base consumption will be 2.14 USD/MMBTU, and the excess consumption will be paid at 3.30 USD/MMBTU. For certain tariff subzones (Buenos Aires Sur, Chubut Sur, Province of Neuquén, Cordillerano, Santa Cruz Sur and Tierra del Fuego), excess consumption will be paid at 2.50 USD/MMBTU.
With these adjustments, a single price is established for all users, promoting greater coverage of the supply cost by residential users. In addition, the Government, in line with Decree 465/24, offers discounts on wholesale prices, depending on the income level and consumption limit of users.
N1 users, without subsidies, will suffer gas increases of 9.27%, N2 users 32.98% and N3 users 9.81%
During June 2024, the average monthly invoices for the different segmentation levels will be as follows:
- N1 (high income)with an average consumption of 149 m³, will go from $25,756 to $28,142 (9.27% increase).
- N3 (average income)with an average consumption of 171 m³, will go from $24,465 to $26,865 (9.81% increase).
- N2 (low income)with an average consumption of 159 m³, will go from $15,638 to $20,797 (32.98% increase).
ENARGAS will define the new tariff tables, including transportation and distribution values, based on this updated price structure. This adjustment, which was postponed from May 2024, aims to reflect the real costs and variability in the supply of natural gas, thus guaranteeing the necessary investments for the sector and promoting responsible use of the supply.
