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Electricity rates: the Government recalculates and "softens" the increases

2024-03-27T12:36:11.429Z

Highlights: The Government decided yet another change in the electricity rates of the Buenos Aires Metropolitan Area. Starting this Monday, April 1, it will "soften" the increases for households with higher consumption, above 600 kilowatt-hours (kWh) per month. The Edenor and Edesur rates will be updated again in May and will be indexed based on the evolution of salaries (55%) and the combination of wholesale and retail inflation. S.N. says those who do not have gas usually double their electricity demand to compensate for that energy source.


It benefits high consumption users. It is because they had previously unified the tariff categories and it had a high impact on users who consume more than 400 kWh per month.


The Government decided yet

another change

in the

electricity rates

of the Buenos Aires Metropolitan Area (AMBA), where

Edenor and Edesur operate.

Starting this Monday, April 1,

it will "soften" the increases

for households with higher consumption, above 600 kilowatt-hours (kWh) per month.

The modification was made official this Wednesday through resolutions 198 and 199/2024 of the National Electricity Regulatory Entity (ENRE).

On February 16,

the Government had reduced the residential rate categories from 9 to 4,

which generated a great dispersion of the percentage increases.

Depending on the level of segmentation and rate category, a user could have

final increases

in their tickets of

between 90% and 300%.

The effect of eliminating the 9 categories and unifying them into 4 led to households with consumption greater than 600 kWh per month seeing an

increase of 424% in fixed charges

and

345% in the value of variable charges.

And the effect was a big jump in the bills that started arriving in recent days.

Now, with this regulatory change, the Government divided the residential categories for the AMBA into 6 and authorized a real reduction in the rates of users who consume between 601 and 700 kWh per month;

a reduction in fixed charges but an increase in variable charges for those who demand more;

and an increase in those that fall in the block from 501 to 600 kWh.

The average consumption of a home in Buenos Aires is between 300 and 350 kilowatt-hours per month, but those who do not have gas usually double their electricity demand to compensate for that energy source.

Therefore, those who do not have gas service may have a huge adjustment in their electricity rates.

The Edenor and Edesur rates will be updated again in May

and will be indexed based on the evolution of salaries (55%) and the combination of wholesale and retail inflation.

As Clarín said, in February the Government defined the total removal of subsidies at the national level for all Level 1 households (N1, high income) of the segmentation, businesses, industries, hospitals, schools, clubs, buildings and public lighting , among others.

In mid-March, the first jumps began to be seen in the bills of all non-residential users, with increases of more than 300% and which only reflect a portion of the two-month period until the elimination of State aid is fully reflected.

S.N.

Source: clarin

All business articles on 2024-03-27

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