The Government suspended the electricity and gas price increases for July

The Government suspended the electricity and gas price increases for July
The Government suspended the electricity and gas price increases for July

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.

At the beginning of this month, 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 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 per kW of electrical energy and m3 of natural gas, which is identical for all.

It may also determine what assistance the State provides to users based on their ability to pay, which reaches up to a limited consumption limit by recognising 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 (an increase of 23%). In July, if the same consumption is maintained, the bill 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 (middle income) from $6,585 to $16,850 (156% increase). It includes 1 million clients.

In the case of gas rates, consumption in July 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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