After increases in bills of up to 400% in June, the Government postponed the planned increase in electricity and gas rates with the aim of postponing the measures and avoiding additional pressures on the cost of living.
In this regard, there will also be no adjustments to the fuel tax. In this case, the tax was to be updated by 115% and the impact at the pump was to reach around 20% in different parts of the country.
The measures are taken after knowing the data on the loss of purchasing power to slow down the costs on families. At the same time, in July, in addition to being a high consumption season due to low winter temperatures, there is the winter break period, which means even more expenses for households. The intention is to generate seasonality.
Initially, the decision was made for July rates with the intention of supporting the recovery of the population’s purchasing power. The measure is established for household consumption in the seventh month and, depending on the billing date, in principle most users would pay it in August.
Electricity and gas subsidies
At the beginning of June, the Government modified the 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 system of generalized subsidies to a targeted one, in which the user can know the cost of the kilowatt of electric energy and the cubic meter of natural gas, which is identical for all.
It will also be possible to determine what assistance the State provides to users according to their payment capacity and which reaches up to a limited consumption limit by recognizing a lower payment (bonus). Taking an average consumption bill of 250 Kw, 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). 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, 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.
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