In the last few hours, it was reported that electricity rates in the province of Buenos Aires will have a sharp increase, as announced by the authorities. The measure implies increases ranging from 118% for high-income residential users to 413% for small businesses, and 186% for public agencies. The increase is justified by the transfer to the provincial tariff tables of the increase in the wholesale price of energy and the reduction of subsidies established by the Ministry of Energy of the Nation. The province’s Ministry of Infrastructure and Public Services specified the details of the hikes in an official statement. This increase is in addition to the accumulation of debts by provincial distributors and cooperatives, which have maintained their operations with energy subsidies and partial payments to Cammesa. It is estimated that, adding the increase in the cost of energy and the Distribution Value Added (VAD) to clean up the debt with the management company, the rate will suffer an average increase of 180%. Although these measures are expected to contribute to reducing subsidies and generating tax savings, they also raise concerns about the impact they will have on the economy of households and small businesses. The provincial government has announced that the sanctioned tariffs will be in effect for a transitional period of one year, while a five-year tariff review is carried out to ensure the quality of supply and the execution of necessary investments in the energy sector. A monthly adjustment mechanism will be applied from April onwards to maintain the real value of the transitional tariff.
Original source in Spanish
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