The governor of Formosa, Gildo Insfrán, has signed Decree 7/25, through which it is established that the provincial government will subsidize one hundred percent of the Distribution Added Value (VAD) of energy with its own funds. This measure is aimed at benefiting more than 106 thousand residential users of low and medium income who consume up to 700 kWh per month and will be in effect from December 1, 2024, to March 31, 2025.
In the governor's words, the intention of this measure is to protect the economy of Formosa households in light of the reduction in subsidies and the increase in energy prices at the national level. Insfrán highlighted that these increases have been significant, reaching up to 3662% in power pricing and 3217% in the transportation tariff of medium and high tension in the last year.
Insfrán also announced that a reformation of the Provincial Subsidy Program Effort Formoseño will be carried out to fully cover the only aspect of the tariff that depends on the provincial orbit, which will benefit 90% of residential users of low and medium income throughout the territory. During the months of highest consumption, users will only have to pay for the concepts of energy, power, and transportation, which are established exclusively by national jurisdiction authorities.
Finally, the governor emphasized that despite the paralysis of strategic works for the provincial energy system and the difficult economic and social scenario of the country, this effort has been decided. This monthly investment will exceed 1.4 billion pesos with the aim of protecting the economy of the inhabitants of Formosa.
