The National Secretariat of Energy finally launched the full removal of subsidies for users who did not register in the Registry. Those who have not completed the process will experience a 60% increase
In the small letters of the Official Gazette this Tuesday, a previously anticipated hit to the pocket is discovered. There, resolution 323/23 was published this morning, which provides that N1 users pay 100% of the cost of energy, without any official help.
This announcement has its counterpart in the points that were made known about the fourth revision of the agreement between the International Monetary Fund (IMF) and the Argentine Government. One of these referred to energy subsidies: the tariff segmentation scheme that was launched last year is going to be “strengthened” or “accelerated”. This means that As of May, subsidies for higher-income residential users will be eliminated (above $572,386.50 per month) and for commercial users by the end of 2023, as reported.
Strictly speaking, last March the withdrawal of official aid should have ended, which began in September 2022 and should have ended six months later. It was arranged gradually, in three sections of 20%, 40% and 40%.
However, the last segment of the haircut was never applied, the second was done only halfway and, in addition, the seasonal price of energy was delayed, with which, in practice, today all residential users pay, on average, the 41% of what it costs to produce it.
This new reduction means that users who paid $9.36 per KWh until April will now pay $21.21. In other words, those who did not sign up for the registry will have a 60% increase this month.
Users who can request to maintain the subsidies are those with income between 1 and 3.5 basic baskets, equivalent to $163,539 and $572,386.50 (Level 3). Those with monthly income below a basic basket maintain the subsidies (Level 2) and those with more than 3.5 baskets lose them (Level 1).