Although the government has not yet given further details about the final impact on the ballots, the increase can reach up to 155% in the case of electricity, while in gas it would be between 9 and 33%. The increases will be applied to the seasonal price (PEST) of electricity and the price of gas at the Point of Entry to the Transportation System (PIST).
How are gas prices?
In the case of gas, said transfer will be carried out, for the N1 residential users (high income) and productive sectors (commerce and industry) at 3.30 USD/MMBTU, depending on the distributor.
In relation to the N2 (low income) and N3 (middle income)For June 2024, the transfer of the new PIST, with the bonuses according to Decree 465/24, will be done as follows:
N3: The base consumption is 2.34 USD/MMBTU, according to the distributor. Excess consumption is paid at 3.30 USD/MMBTU.
N2: The base consumption is 2.14 USD/MMBTU, according to the distributor. Excess consumption is paid at 3.30 USD/MMBTU. For the Buenos Aires Sur, Chubut Sur, Province of Neuquén, Cordillerano, Santa Cruz Sur and Tierra del Fuego Tariff Subzones, excess consumption is paid at 2.50 USD/MMBTU, for the tariff regime. cold area.
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Gas will increase, on average, between 9 and 33% depending on the user level.
The Ministry of Energy of the Nation exemplified, as an example, what the increase will be like during June 2024, at the three levels of segmentation. The average value of the final monthly invoices will be the following:
- N1, with an average consumption of 149 m3, will go from $25,756 to $28,142, that is, 9.2% more.
- N3, with an average consumption of 171 m3, will go from $24,465 to $26,865 (+9.8%).
- N2, with an average consumption of 159 m3, will go from $15,638 to $20,797 (+33%).
On this basis, ENARGAS will define the new tariff tables with the transportation and distribution values. This price update at the Injection Point to the Transportation System is carried out after having postponed the adjustment that was scheduled for May 2024.
How are the electricity prices?
On the other hand, new values were set for the Stabilized Price of Electrical Energy (PEE), Stabilized Price of Transportation (PET) and Power Reference Prices (POTREF). The PEST transfer will be, according to the peak hours (6:00 p.m. to 11:00 p.m.), off-peak (11:00 p.m. to 5:00 a.m.) and rest times (5:00 a.m. to 6:00 p.m.):
N1 (high income) and productive sectors (commerce and industry): Between $56,019 and $59,298/kWh.
N3 (average income): The base consumption changes to $30,000/kWh, while the excess consumption changes to the values indicated for segment N1.
N2 (low income): The base consumption changes to $20,000/kWh, while the excess consumption will be paid at the values indicated for segment N1.
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In this way, in order to achieve normalization of the electricity sector, a single price is established for all users that will allow residential users to contribute with greater coverage of the supply cost. By way of illustration, if we consider average residential consumption of 260 kwhthe average value of the final monthly invoices will be the following, according to segmentation level:
- N1 will go from $24,710 to $30,355 (+22.8%)
- N3 will go from $6,585 to $16,850 (+155.8%)
- N2 will go from $6,295 to $12,545 (+99.2%)
Federal and provincial energy distributors must show on their users’ bills the amount of the bonus that each one receives from the National State. On this basis, the National Electricity Regulatory Entity (ENRE) and local jurisdictions will define the new tariff tables with the transportation and distribution values, as appropriate.
Targeted subsidies
From the Ministry of Energy they explained that “this is how it is done the beginning of the process to move from a generalized subsidy regime to a targeted onein which the user can know the cost of kwh of electrical energy and m3 of natural gas, which is identical for everyone, and the assistance that the National State provides to users according to their payment capacity and which reaches up to a limit of limited consumption through the recognition of a lower payment (bonus).”
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The Government launched a “Transition Period” to implement a new tariff regime.
Currently, subsidies are segmented according to three types of households: high-income (N1), low-income (N2) and middle-income (N3). The N2 and N3 are those that cover the least part of the costs of the energy they consume.
The reduced consumption limits will be:
- In the case of natural gas: N1 has no limits. N3 maintains in force the limits established in the Resolution of the Ministry of Energy No. 686, according to the distributor. The same consumption limits apply to the N2 as for the N3.
- In electrical energy: N1 has no limits. N3, subsidized amount of 250 kWh/month, replacing 400 kWh/month; N2 will have a maximum subsidized consumption of 350 kWh/month, leaving aside the fact that these users did not have any limit to subsidized consumption, encouraging efficient and responsible consumption with this measure.
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, only for the period from June 1 to August 31, 2024, are: N3 , 500 kWh/month and N2, 700 kWh/month.
Consumption less than the established limits is called base consumption. Consumption at the limits established above will be considered excess consumption and They will be paid at the PIST and PEST prices set by the Ministry of Energy, without bonus.
On the other hand, the bonuses on wholesale prices set by the national Government will be the following:
- 1) Natural Gas: For N1 users there will be no bonus, they pay the PIST (Entry Point to the Transportation System) price set by the Ministry of Energy. The N3 pay 55% of the gas price in PIST, corresponding to the N1. Excess consumption will be valued at the gas price in PIST, without bonus. The N2 pay 64% of the gas price in PIST, corresponding to the N1. Excess consumption will be valued at the gas price in PIST, without bonus.
- 2) Electric Energy: For N1 users there will be no bonus, they pay the PEST price set by the Ministry of Energy. N3 users will pay 55.94% of the price defined for the N1 segment, without bonus. The excess consumption will be valued at the price defined for N1. And N2 users will pay 71.92% of the price defined for N1. Excess consumption will be valued at the price defined for N1, without bonus.
