The Ministry of Energy, commanded by the massista from Salta Flavia Royón, gave the go-ahead for a new increase in electricity rates
For antonio rossi
12/31/2022 – 6:13 p.m.
Almost at the same time that he closed an agreement with the oil companies to postpone until mid-January the average rise of 4% that is scheduled for fuels; The Ministry of Energy, led by the massista from Salta Flavia Royón, gave the go-ahead for a new increase in electricity rates that begins to run from the first minute of 2023.
This is the rate adjustment for electricity companies that operate the medium and high voltage transmission networks at the national level, which had been dealt with in a public hearing held at the end of November. Although the increases granted in the specific revenues of electric carriers range between 153.55% and 155.96%, the final impact on the bills of residential users throughout the country will range between 2.87% and 3.15%.
This is due to the fact that, unlike what happens with the tariff increases for the generation and distribution sectors that have a marked incidence in the final bills, the updates of the income corresponding to the electric transmission companies cause a minimal repercussion in the composition of the invoices received by users.
The operators of the transmission lines play a key role in the national electricity system and since the beginning of the current Government, they have been demanding an improvement in their income that allows them to face the growing operating and salary costs and the minimum investments in maintenance that the networks and facilities require.
The final impact on the bills of residential users throughout the country will range between 2.87% and 3.15%
In the presentations made at the public hearing, the eight concessionary companies of the electric transport service warned that they were facing a “critical economic and financial situation due to the skyrocketing inflation and the increases in operating and salary costs registered in the last semester”.
After highlighting that in the last three years they had only received one average improvement of 70% Faced with an accumulated increase in operating costs of more than 370%, the carriers came out to claim an adjustment in their income that ranged between 190% and 210% to be able to operate and maintain the service until December 2023.
What other improvements did the carriers ask for?
Along with these increases, the companies also requested the application of a quarterly rate update scheme that would counteract the double negative effect of rising inflation and the constant rise in operating and salary expenses.
After evaluating the proposals of the companies and with the approval of the energy area, the intervention of the National Electricity Regulatory Entity (ENRE) – led by the Buenos Aires massista Walter Martello – resolved to authorize the following increases in the income of the carriers:
-Transener: 154.51%
-Transnoa: 153.55%
-Transnea: 154.73%
-Transcomahue; 155.49%
-Distrocuyo: 155.01%
-EPEN: 145.77%
-Transba: 154.07%
-Transpa: 155.96%
In the case of TRANSPA -the private transport company that has Aluar as its main shareholder and the Camuzzi gas company and a group of electrical cooperatives in the area as minority partners-, the regulatory entity added to the increase granted the payment of a fixed monthly fee of $ 305 million over five years to offset the investment by the company in repairing the Futaleufú-Puerto Madryn high-voltage line, which had been damaged and out of service by a snow storm in mid-2020.
Regarding the request for an automatic rate adjustment mechanism every three months, the ENRE decided not to proceed, with which the carriers must manage to transit all of 2023 without receiving another increase.
This adjustment for electricity transport will be followed in February by two more rate increases that are on the horizon for the generation and distribution sectors. On the one hand, the last batch of increases in the value of energy derived from the “tariff segmentation” will come; that are being applied to residential users with higher incomes and middle class households that consume more than 400 kWh per month in the metropolitan area and more than 650 kWh in the provinces that make up the Norte Grande region.
The carriers requested an automatic rate adjustment mechanism every three months and the ENRE decided not to proceed
The increases for that block of users had started in October with a 20% reduction in subsidies that gave way to an average rate adjustment of 40%. It continued on November 1 with a second pruning of 40% of the current subsidies that triggered a new average rise of 80% in the price of energy. And it aims to conclude in February, with the elimination of the last portion of the 40% of the subsidies that will once again trigger another average increase of 80% in the wholesale price of energy. The transfer of these increases to the invoices will imply for these home customers final increases ranging from 90% to 110%.
On the other hand, the specific increases foreseen for the distributors of the metropolitan region Edenor and Edesur will arrive. The scope of these adjustments will be discussed at the public hearing that is scheduled for January 23.
Once the previous instance of the hearing has been fulfilled -which will not be binding and will be developed through a digital platform-, the Government must define the definitive percentages of the increases that will be applied as of February to improve the income of Edenor and Edesur.
Despite the fact that they have not yet officially made the presentations, from the two distributors they have already anticipated that they are dragging a delay in their income corresponding to the VAD (Distribution Value Added) of 290% which, if fully transferred to the tariff of the service, would imply an average increase in final bills of the order of 90%.
