The rates They are a sensitive issue for the government, which has kept this year’s increases to a minimum in order to control the impact on inflation. In the summer, the electrical energy increases because the demand increases. To prevent companies from demanding a rate update, the Ministry of Energy froze the wholesale price of electricity between November 2021 and April 2022.
Through resolution 1020 published in the Official Gazette, it guaranteed distributors that won’t charge you a higher price of the one who has been billing them. Thus, you will prevent companies such as Edenor, Edesur and Edelap from demanding that you raise your rates during the summer.
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The generation cost of energy represents around the 40% of the final value of the invoice, since distributors cannot transfer it directly to their users. The difference between what appears on the ballots and the real cost is shared between the subsidies provided by the State and the part absorbed by the companies.
Tariff segmentation still pending
The freezing of the wholesale price of electricity will give the Government time to advance in the segmentation of rates promoted by the Ministry of Economy. The idea of the portfolio led by Martín Guzmán is redirect subsidies to energy so that they reach the most vulnerable sectors of society. On the other hand, users who are in better economic conditions would see increases in their rates.
The segmentation work has been underway for several months, but progresses slowly. In the final stretch of the electoral campaign, the Buenos Aires candidate for the Frente de Todos Victoria Tolosa Paz, anticipated that by the end of the year the segmentation will be ready and the Government will be able to advance in remove subsidies for electricity and gas. “We have to correct it, as it says Alberto Fernandez. Subsidies for people who do not need them are a doubly unnecessary expense, “said the candidate.
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It is not the first time that the candidate refers to the tariff issue. In September he had already proposed the creation of a single registry of public service holders. Through this instrument, providers will have to identify users to facilitate the State the cross with other data available, in order to determine whether or not the user needs a subsidy.
In the recitals of Resolution 1029/2021, the Ministry of Energy made reference to the need to keep moving forward in segmentation of users in four groups: residential; demands less than 300 kW –Non-Residential–; demands greater than 300 kW; and demands greater than 300 kW from “Public Organizations and Entities that provide Public Health and Education Services.
A single rate adjustment in 2021
This year electricity rates had a single increase, of 9%, which has been in force since May. The adjustment was the result of discussions between Guzmán and the Secretary of Electric Energy, Federico Basualdo. The head of the Palacio de Hacienda wanted to increase rates in a larger proportion, in order to reduce the burden of subsidies.
Basualdo, on the other hand, wanted a single raise, less than 10%. The tension escalated and Guzmán asked the secretary to resign, who resisted in his position supported by the hard wing of Kirchnerism. Finally, Basualdo’s vision prevailed and rates only went up 9%.
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