The government officially announced the cuts this Wednesday Subsidy In Electricity Tariffswith a greater impact on middle- and low-income users, who will see their bills increase by more than 155% in some cases. But cuts were also applied to the subsidized consumption limit for each household.
The arrival of winter implies more consumption energySo this change in the amount of subsidised electricity each household receives could result in larger bills.
As per the current subsidy split, there are three types of users: High (Level 1), low (Level 2) and middle (Level 3) income. However currently no users cover the full cost of energy, those known as N1s have no bonus on their bill.
For their part, the subsidized consumption limit for middle-income (N3) people was 400 kWh per month until May and was reduced to 250 kWh per month from June. Electricity used above that limit will be considered surplus that distributors will charge without subsidies.
Until May, low-income users (N2) had no consumption limit, meaning they received assistance regardless of their electricity use. From June they will have a limit of 350 kWh per month and will have to pay in full for the rest of the electricity used.
In this framework, it is important for all households to know how much energy the appliances or devices in the home consume. N2 and N3 represent approximately 11 million users. EdesurOne of the two distributors of Buenos Aires Metropolitan Area (AMBA)made an estimate for a 70 square meter house with the following appliances that consumes 267.97 kWh per month:
According to official data Secretary of EnergyN1 has 5.3 million users, N2 has 8 million and N3 has 2.7 million users. That is to say, the subsidized consumption limit affects approximately 11 million families throughout Argentina, with each having a limit on their consumption depending on the residential category in which they are located.
To clarify the final bills, Enerji estimated the increase taking into account the average residential consumption of 260 kW:
● N1 will increase from $24,710 to $30,355 (22.8%).
● N3 will increase from $6,585 to $16,850 (155.9%).
● N2 will increase from $6,295 to $12,545 (99.3%).
With this increase, commercial, industrial and residential users cover 65% of the actual cost of electricity and can reach 70 percent. According to energy sources, by May the coverage reached an average of 45%. The government intends that next year everyone will pay 100% of the value of the service, but at least these six months will be a progress in this “transition plan” that can be extended for six more months.
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