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Due to a reduction in subsidies, the electricity bill will increase 30%, and there is still one more increase to go


The Government withdrew subsidies in the cost of electricity and that will impact the bills. An increase is still pending for Edenor and Edesur, which is imminent.

The Government advanced in a new removal of the subsidies in the electricity bills.

As part of the segmentation, the Ministry of Energy has been removing subsidies for the cost of electricity, which end up having an impact on the final bill.

From Wednesday, clients called N1 -high income, or who want to continue maintaining the possibility of accessing the savings dollar-

will pay around 30% additional on their bills


Although the increase corresponds to February, the impact will be when they pay in February.

Since the segmentation was implemented, electricity bills have risen between 100% and 120%, depending on the amount of consumption of each client.

A bill that averaged $2,000 in mid-2022 in March will cost twice as much.

In any case, the recomposition is almost at the same level of the annual inflation of 2022 (94.8%).

Another increase will arrive in the coming weeks that will impact the profit margins of Edenor and Edesur, the distributors in Buenos Aires.

It is estimated that the increase will be 30%.

It is being defined by the regulatory entity (Enre).

This organism announced new fines to Edesur -of $250 million-, product of interruptions in the service.

The cost of electricity represents more than half of electricity bills.

56% of what is paid corresponds to this concept.

Distributors (Edenor-Edesur) only

keep 17% of what they charge

on invoices.

The rest are taxes.

The distributors requested an emergency increase in electricity bills.

Both accused the "granting power" (the national State) of

not complying with the regulatory framework that governs the provision of electrical service

in Buenos Aires.

Its managers stated that they have been losing money.

Edenor requested an immediate increase in bills of between $1,000 and $1,500 per month so as not to continue having red in 2023.

A third of households have been having increases in electricity bills since October.

But that increase does not remain in the hands of the distributors.

This increase is so that the national State subsidizes less the cost of electricity.

The Government had been subsidizing the price of electricity until September.

In other words, households did not pay the cost of this service.

The subsidy included more than half the price of electricity consumed by households


The electricity bills contain the cost of electricity itself, the margin of the distribution of the companies that take it to homes, and taxes.

The amount of electricity is governed by the "monomic price".

At the end of 2022, that amount was $11,700 per MWh (the sector's unit of measurement).

By mid-year, households were paying less than half ($4,600) of that price.

Now, that payment will rise to $9,400 for users of distributors.

And the total cost was upgraded to $13,000.

In this way, although less than before,

residential customers will continue to be subsidized


Big clients run out of subsidies


They must pay $13,000 per MWh.

The lower segments (referred to as N2) will feel almost no increases.

The media (referred to as N3) will continue to pay a subsidized price for the majority of the ticket.

But they will pay a higher amount for "surpluses" at certain pre-established levels of consumption.

The current budget for this year estimates a drop in energy subsidies.

The Minister of Economy, Sergio Massa, did not provide specific numbers but percentages: in 2022 they represented 2.3% of GDP, while in 2023 they will bite into 1.6% of that cake.

Estimates by specialists calculate that this implies going from the US$15,000 million that was allocated last year for this purpose to a range of between US$11,000 million and US$12,000 million by 2023.

Energy experts are studying the impact of their corrections in order to determine whether or not meeting this goal is feasible.

It is estimated that Cammesa, the system's wholesale administrator, should collect more because large customers will already pay for electricity without discounts, for example.

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Source: clarin

All business articles on 2023-02-04

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