The government decided to postpone the plan to eliminate the segmentation of subsidies, after reversing the increase in electricity rates. The Ministry of Energy has announced it will implement a phased reduction in the subsidies benefiting around 9.5 million low- and middle-income households in Argentina.
In the words of the Secretary of Energy, María Tettamanti, the idea of eliminating the income-based segmentation of subsidies in electricity and natural gas bills has been temporarily halted. However, the reduction of the subsidies will continue, a process that will affect the majority of residential users in the country, being distributed gradually until the end of 2025.
For his part, the Minister of Economy, Luis Caputo, acknowledged that it was a communication error and clarified that the intention is to unify the electricity and gas subsidies for N2 classes (with higher subsidies) and N3 (with lower subsidies than N2) throughout this year. The increase in public utility rates will be around 1% for the next month, maintaining a gradual increase rate that will range between 8% and 12%.
