The Government of Javier Milei officially announced this Tuesday the details of the elimination of subsidies on energy rates, which will come into effect this June, as part of a new assistance scheme.
This means that users, especially middle- and low-income residential users, that is, the middle class, will see significant increases in their electricity and gas bills, along with new lower subsidized consumption limits.
According to preliminary estimates reported by economists, residential users are expected to face increases that could exceed 155% in electricity rates. As for gas, more moderate increases are expected, up to 30% compared to previous bills.
It is important to note that, due to the current segmentation of subsidies, there are three categories of households: high income (N1), low income (N2) and middle income (N3). N2 and N3 households only cover a small part of the costs of the energy consumed, which includes not only the cost of the energy itself, but also transportation, distribution and taxes.
According to Resolution 92/2024 of the Ministry of Energy, the Seasonal Energy Price (PEST) for the May-October period was established at $71,411 per megawatt hour (MWh).
Meanwhile, N1 households, as well as businesses and industries, will pay $57,214 per MWh. For N2 households they will have a discount of 71.9% and N3 households a 55.9% discount on this price on their bills. These last two segments previously paid only 4% and 3%, respectively, of the current value until April. (InfoGEI)Ac
