Argentina will increase electricity tariffs

The Government of Argentina announced an increase in electricity tariffs that will take effect in April. The main objective is to “normalize the electricity sector” and promote the efficient use of energy in the South American country. According to official sources, this increase will affect different user groups proportionally.

• Higher Income Users: The electricity bill for this group will increase by up to 150 % for average consumption.
• Sectors with Lower Purchasing Power: Here, the increase will be around 65 %. However, if the electricity consumption reaches 600 KW/h (the average being 380 KW/h), the increase could be as high as 130 %.

The Ministry of Energy of Argentina has pointed out that during the period 2019-2023, electricity tariffs remained static, with insufficient punctual adjustments. This lack of updating distorted the real costs of electricity supply, affecting both users and the technical and revenue-raising operation of the system as a whole.

The Department of Energy, under the administration of ultra-liberal Javier Milei and subordinate to the Ministry of Economy, considers this “tariff correction” to be essential for restoring relative prices in the economy, ensuring the economic self-sufficiency of the electricity system and laying the foundations for promoting private investment.

Next steps will include measures to restore the functioning of the wholesale market, reallocating subsidies to help those with lower purchasing power, and promoting responsible and efficient use of energy for intensive consumers.

K. Tovar

Source: Bancaynegocios

(Reference image source: @RadNalCo, X)

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