The Government authorized an increase of at least 65% in electricity rates for middle and low-income users, effective since June. This adjustment is due to an increase in the seasonal price of energy and changes in the subsidized limits for levels N2 and N3, significantly affecting the monthly bills of these users.
The measure was made official in four resolutions published in the Official Gazette this Wednesday by the Ministry of Energy, led by Eduardo Chirillo, under the Ministry of Economy of Luis Caputo. The new seasonal energy price is set at $57,214 per megawatt/hour, a necessary adjustment after more than a year of freezing in the wholesale scale. The subsidies applied are 71.9% for low-income households and 55.9% for middle-income households that already have a bonus.
About electricity rates
-New subsidized consumption limits are established for residential users, differentiated by Level (1, 2 and 3) and geographical area.
-Bonuses are established on the price of energy for Level 2 and Level 3 users.
-ENRE is instructed to apply the new criteria in the preparation of tariff tables.
-Measures are established to update the registry of RASE beneficiaries.
-A compensation mechanism is established for public electricity distribution service providers for the loss of income derived from bonuses.
-The provinces are invited to adhere to the new criteria.
In accordance with Resolution 94/2024, the objectives of the measure are to focus subsidies on users who really need them, promote responsible and efficient energy consumption, and gradually reduce subsidies to the energy sector.
Subsidized consumption caps
-Level 1: They do not have a subsidy.
-Level 2: 350 kWh/month (base consumption) + surplus consumption at full price.
-Level 3: 250 kWh/month (base consumption) + surplus consumption at full price.
-Cold zones (Level 2): 700 kWh/month (base consumption) + surplus consumption at full price.
-Cold zones (Level 3): 500 kWh/month (base consumption) + surplus consumption at full price.
Bonuses
-Level 2: 71.92% on the price of Segment N1 for base consumption.
-Level 3: 55.94% on the price of Segment N1 for base consumption.
Gas rates
Along with these changes, the Government simplified the tariff scheme for gas and electricity, affecting households segmented into three levels: high (N1), low (N2) and medium income (N3). Unlike previous adjustments, this new scheme distributes the cost of cutting subsidies among all users, including those with low and middle incomes.
The Government announced that it will analyze these incomes, crossing them with the bases of the National Tax and Social Identification System (SINTyS) and other sources of information managed by the Ministry of Innovation, Science and Technology, to verify the data. This task is not easy, as the Ministry of Energy recognized when pointing out the deficiencies of segmentation during the previous government. For this reason, a transition period of six months was established to implement the Basic Energy Basket (CBE), with the possibility of extending it up to one year.
The objective of the CBE is for the State to subsidize residential users when the cost of energy exceeds a percentage of their income, determined by the Ministry of Energy. This percentage is expected to be approximately 10% of revenues (5% for gas and 5% for electricity). In these cases, the State will make a direct transfer to the beneficiary through a virtual card or CBU, or through a discount on the invoice.
Regarding the caps or subsidized consumption limits, the official decision contemplates in the case of natural gas
-N1 has no stops.
-N3 maintains in force the limits established in the Resolution of the Ministry of Energy no. 686, according to distributor.
– N2, the same consumption limits apply as for N3.
Thus, the price of gas in the user’s final bill will increase starting in June 2024. The exact increase will depend on the consumption of each user and the subsidy scheme to which it applies.
Finally, remember that the Ministry of Energy will supervise the implementation of these changes and will make necessary adjustments during the Transition Period to ensure adequate distribution of subsidies and promote responsible and efficient consumption habits.
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