This is a new update of the energy price due to the segmentation implemented by Sergio Massa. When will each residential sector pay?
For iProfessional
02/02/2023 – 8:50 p.m.
The Secretary of Energy of the Nation confirmed that This month the third and last increase in electricity rates will be applied, contemplated in the tariff segmentation plan announced by Sergio Massa. This is the mechanism chosen by the minister to gradually remove subsidies in electricity and gas services, according to each residential sector and its corresponding income.
With the aim of meeting the fiscal goal imposed by the IMF and approaching a balance in the income and expenses of the State, the entity managed by Flavia Royón published the new prices of the Wholesale Electricity Market (MEM)one of the components of the final value of the fee.
Increase the electricity rate in February: how much are you going to pay?
In Resolution 54/2023 published today in the Official Gazette, the values were established within the framework of the Summer Quarterly Reprogramming, for the period between February 1 and April 30.
These increases represent around 50% of the final price paid by consumers in the Buenos Aires Metropolitan Area (AMBA), while in other provinces it has a weight of less than 20%. The rest of the items that are considered in the tariff are taxes, transportation and distribution, which have different incidence depending on the district and explain the price distortion between the different regions of the country.
As estimated by the former Secretary of Energy, Emilio Apud, the final impact on Edenor and Edesur’s bills will average between 17% and 20% for higher-income residential users and 8% for middle-class homes. For households with lower income or that have some type of social assistance (level 2), the rate will not be modified.
However, the areas with the highest purchasing power will be greatly affected. Is that the rise in the seasonal price of energy will be between 36.1% and 38.1%which represents a 40% reduction of the subsidy that was in force.
Massa and Royón launched a tariff segmentation mechanism, to cut subsidies little by little.
According to the new table of values, these households will pay for the Stabilized Energy Price (PEE) between $9,257 MW/h for the valley hour (of less consumption) and $9,365 MW/h for the peak hour. Without subsidies, they would be costing $13,090 and $13,102, respectively.
This increase also impacts those medium-income users (Level 3), who will have approximate increases of 26% for a block of consumption in excess of demand. In this case, the Stabilized Energy Price will vary between $3,943/MWh (peak hour) and $3,756/MWh (normal hour) for the consumptions that are within the established limit. For the surplus, $9,365/MWh and $9,311/MWh will be paid, respectively.
Although the Government speaks of the “third and last increase”, new price updates due to inflation are not ruled out and to increase the income of electricity distribution and transport companies, such as Edenor and Edesur (AMBA), and those that operate in the different provinces of the country.
