Electricity and Gas Rates Rise in September and Subsidized Limit Changes

The national Government formalized the transition rate schedules that will apply from September, with average increases of 1.75% for electricity and 1.40% for natural gas.

The national administration also made an exceptional modification to the electricity subsidy scheme. The monthly subsidizable consumption will remain at 200 kWh, instead of reducing to 150 kWh as originally contemplated by the Focused Energy Subsidies regime (SEF).

The decision applies to residential households included in the assistance system and will be implemented without distinction by biogeographic zone. The Government attributed the change to the international increase in energy costs, mainly oil and gas.

Impact for Neuquén

The average electricity increase applies to distributors Edenor and Edesur, which operate in the Buenos Aires Metropolitan Area. For this reason, the percentage cannot be directly applied to Neuquén bills, where provincial regulations and service providers such as Neuquén's Provincial Energy Authority (EPEN) are involved.

In the case of natural gas, the modifications have national scope. In Neuquén, Camuzzi Gas del Sur is one of the main reference distributors. The average increase announced for September is 1.40%, below the 2.1% inflation recorded in July, the latest available INDEC data at the time of the announcement.

For September, the extraordinary electricity subsidy was set at 25% and adds to a base of 50%, while for natural gas it will be 24.5%, based on an equivalent base subsidy. Thus, total coverage can reach 75% in electricity and 74.5% in gas for users covered by the regime.

The new rate schedules also include components linked to the Five-Year Rate Review, a monthly update calculated using a combination of IPIM and IPC indices, and adjustments in transport, capacity and energy values from the Wholesale Electricity Market. In the case of Neuquén, the final impact will depend on each rate schedule and the composition of the bill.

With information from Mejor Energía.