keys to understand how it will be transferred to rates

The new measures established by the Executive were known this Tuesday through four resolutions published in the Official bulletinframed within the transition stage to move from generalized to targeted subsidieswhich runs from June 1 to November 30.

How electricity and gas subsidies will be applied

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Electricity and gas rates have risen since June due to a new reduction in subsidies.

READ MORE► Electricity and gas rates: the Government eliminated energy subsidies through DNU and gradually transfers the real costs to users

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 that is identical for everyone, and the assistance that the National State provides to users according to their ability to pay 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:

  • Those with high incomes (N1)
  • Low-income households (N2).
  • Average income (N3).

The N2 and N3 are those that cover the least part of the costs of the energy they consume.

How it will impact the Luz ballots

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The area headed by Eduardo Rodríguez Chirillo decided to update the Seasonal Energy Price (PEST) for the May-October period to $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.

Likewise, new consumption limits were set, so users who exceed them will pay more for electricity service.

Light: new limits on subsidized consumption

Gas and electricity: how much will rates increase after segmentation and the removal of subsidies

Gas and electricity: how much will rates increase after segmentation and the removal of subsidies

Gas and electricity: how much will rates increase after segmentation and the removal of subsidies

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”.

Gas Rates: the changes that arrive on the bills

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Energy also updated the price of natural gas at 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 N1 users (high income) They will continue to pay the entire PIST price determined since they do not receive subsidies.

The N2 users (low income) will have a 64% bonus on the price paid by high-income earners, while residential N3 (medium) 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.

READ MORE► Unmissable tips to save gas at home and pay less on the Litoral Gas bill in Santa Fe

From Energy they clarified that “the specific subsidy regimes such as Social Rate and Cold Zone“, while “for Public Good entities, Neighborhood and Town Clubs, and other categories of comparable non-profit users, under the terms of Laws No. 27,218 and 27,098, discounts 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.”

The 3 objectives of the new tariff scheme proposed by Javier Milei

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The Government extended the freeze and postponed increases in electricity and gas rates until March.

The Government extended the freeze and postponed increases in electricity and gas rates until March.

  • Pass on the real costs of energy to users.
  • Promote energy efficiency.
  • Ensure vulnerable residential users access to the essential consumption of electricity, network gas and bottled gas.
 
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