Argentina Cancels Planned Electricity Rate Hike

The Argentine government has reversed an electricity tariff increase of up to 12.3% for medium and low-income households, following public discontent due to power cuts during a heatwave. Official sources revealed that an official resolution will be published soon to formalize this decision.


Argentina Cancels Planned Electricity Rate Hike

The government decided to reverse the increases in electricity rates that were scheduled for February, which averaged 12.3% for middle and low-income households, according to the National Electricity Regulatory Agency (ENRE). A resolution that will reverse this increase is expected to be published in the Official Bulletin in the coming hours.

In Casa Rosada, they expressed their displeasure with ENRE's decision to implement these increases without prior consultation. It is argued that the measure was taken considering the recent power outages caused by the heatwave, with the aim of not exacerbating social discontent.

The Ministry of Energy explained that the increase in rates was due to an error in the drafting of the resolutions that formalized the new values for users in the Autonomous City of Buenos Aires and the Greater Buenos Aires area. The measure also involved a unification of discounts for middle and low-income users.

The changes proposed a reduction in the percentages of energy subsidized by the state for users in these sectors, which would have led to increases of 2% to 12.3% for different income levels. An average increase of 4% for businesses and industries was estimated.

As part of these decisions, a 4% increase in the Distribution Value Added (VAD) in the electricity distribution segment for February was announced. Thus, it was established that, compared to January, bills before taxes would increase by 2% for high-income users, and by 12.3% and 8.4% for low and middle-income users, respectively.