The Government decided that electricity and gas increases will not come into effect in July. But, it deregulates rates on cable, cell phones and internet. increases
The Government reversed the planned increase in electricity and gas rates, while it will not apply adjustments to the fuel tax while eliminating regulations that limited increases in internet, cell phone and cable rates.
In the next few hours, the Executive Branch will publish a decree in which it will postpone the increase in the ICL scheduled for next Monday, as it happened in May and June. From July 1, the increase in the tax will result in a rise of only 1% in the final prices of gasoline and diesel, much less than the 18% expected.
The aim of postponing the measures is to avoid additional pressure on the cost of living and to ease the accelerator by imposing higher costs on households that have suffered a sharp loss of purchasing power. The intention is to take into account seasonality (i.e. increased consumption in winter).
The decision was initially made only for July rates. The measure is established for household consumption and, depending on the billing date, in principle most users would pay it in August.
At the beginning of the month, the Government modified maximum subsidized consumption limits and bonuses on wholesale prices of electricity and natural gas for N2 (low income) and N3 (medium income) users in accordance with the Transition Period established by the Decree No. 465/24.
The measure marks the beginning of a process to move from a generalized subsidy regime to a targeted one. 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 (23% increase). In July, if you maintain the same consumption, you will pay this same figure, that is, $30,355. It covers a universe of 1.5 million homes. – N2: (low income) goes from an average bill of $6,295 to $12,545,260 (99% increase). It comprises 1.9 million users. – N3 (average income) from $6,585 to $16,850 (156% increase). It includes 1 million clients.
In the case of gas rates, there will be no increase in July consumption either. This means that the user will pay the same as in June, as long as their consumption is the same. For the current month, increases in the established gas tariff table of 9.2% for segment N1, 33% for N2 and 10% for N3 were established.
The National Telecommunications Entity (ENACOM) eliminated regulations that limited increases in internet, cell phone and cable rates, through Resolution 13/2024.
The legislation repeals a series of regulations that established limits on increases in telecommunications services, including that they could not apply increases greater than 10% per month. Now companies will have free rein to stipulate the updates to their values.
The decision of the organization intervened at the beginning of the year will come into force from its publication, so the impact on cable, cell phone and internet rates could already be reflected as early as July.
