The Government reversed the planned increase in electricity and gas rates in July, while it will not apply adjustments to the fuel tax either.
This was announced by official sources to Noticias Argentinas.
The objective of the measure is to prevent additional pressures on the cost of living.
The aim is to avoid increasing the pressure on the cost of living in that month and to ease up on the accelerator by imposing more costs on households that have suffered a sharp loss of purchasing power.
The intention is to take into account seasonality (i.e. higher consumption in winter).
The decision was made, in principle, only for July rates with the intention of supporting the recovery of the population’s purchasing power.
The measure is in place for household consumption next month and, depending on the billing date, in principle most users would pay for it in August.
Earlier this month, the Government modified the maximum subsidized consumption caps and bonuses on wholesale electricity and natural gas prices for N2 (low-income) and N3 (middle-income) users in accordance with the Transition Period established by Decree No. 465/24.
The measure marks the beginning of a process to move from a generalized subsidy regime to a targeted one, in which the user can know the cost of kW of electricity and m3 of natural gas, which is identical for everyone.
Likewise, it may determine what assistance the 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).
Taking an average consumption bill of 250Kw, the increase in the different categories will be:
– N1 (high income): A bill of $24,710 to $30,355 pesos (increase of 23%). In July, if the consumer maintains the same consumption, he/she will pay the same amount, i.e. $30,355. This covers a universe of 1.5 million households.
– N2: (low income) goes from an average bill of $6,295 to $12,545,260 (99% increase). Comprises 1.9 million users.
– N3 (average income) from $6,585 to $16,850 (increase 156%). Covers 1 million customers.
In the case of gas rates, July consumption will not increase either. That is to say, the user will pay exactly the same as in June, as long as their consumption is the same.
For the current month, increases in the established gas tariff schedule of 9.2% for the N1 segment, 33% for N2 and 10% for N3 were established.
