The Government would be considering the suspension of increases in electricity and gas rates for the month of July. This measure, if implemented, would be significant in the current economic context, since it would have as its aim to ease the economic burden on households during the winterwhen the consumption of these services increases considerably. The decision would be in line with the efforts to improve the purchasing power of the population, which would be especially relevant in an economy marked by inflation and exchange market volatility.
In detail, the measure would stipulate that household consumption in July would not have increases in their rates, although depending on the billing date, most users would see this benefit reflected in their August bills. This decision would not only attempt to mitigate the economic impact of higher seasonal consumption, but would also would seek to provide a respite amid previous tariff adjustments.
In early June, the Government had modified the maximum subsidized consumption caps and bonuses on wholesale prices of electricity and natural gas for users classified in different income segments. These changes would be part of a transition process towards a more targeted subsidy regime.. The objective would be for users to know the real cost of the kW of electrical energy and the m3 of natural gas, and to be able to identify State assistance according to their ability to pay.
To illustrate, with an average consumption of 250 kWh, bills would vary significantly between different income segments:
- High income users (L1): They would see a 23% increase, going from $24,710 to $30,355. This segment would cover approximately 1.5 million homes.
- Low income users (L2): This group, which would comprise 1.9 million users, would experience a 99% increase, with bills rising from $6,295 to $12,545.
- Middle-income users (N3): With a 156% increase, bills in this segment would go from $6,585 to $16,850, encompassing 1 million customers.
It is important to note that for electrical energy, N1 users would not have consumption capswhile N3 users would have a limit of 250 kWh/month (previously it was 400 kWh/month) and N2 users a maximum subsidizable amount of 350 kWh/month.
As for the gas rates, July consumption would not see increases either. This would mean that users would pay the same as in June, as long as their consumption remains the same. However, it is worth remembering that in June rate increases were applied that ranged between 9.2% for the N1 segment, 33% for N2 and 10% for N3.
This temporary rate freeze strategy could be a direct response to the need to sustain purchasing power and avoid further economic deterioration in a period of high energy demand. At the same time, it would reflect the complexity of managing tariff policies in a context of persistent inflation and multiple economic pressures.
On the other hand, the exchange gap close to 50% would continue to be a risk factor significant for the Argentine economy. The rise of the blue dollar would generate uncertainty and put even more pressure on domestic prices, exacerbating inflation. This scenario would impose additional challenges both for the Government’s economic policies and for the personal finances of citizens.
The question of bonus The June 2018 bonus would also become a topic of interest. The payment of the half-bonus would represent an additional income for workers, but would also imply a considerable outlay for companies. In this context, maintaining stable rates could provide a small relief for both households and SMEs who would face the need to balance their books in a challenging economic environment.
