In a press conference that began at noon on Tuesday, the National Government announced how the reduction of subsidies in electricity, water and gas services will be applied. This measure affects some 4 million households across the country, with the aim of reducing the fiscal deficit.

A total of 270 thousand homes they will lose all gas subsidies; some 400 thousand those of electricity; Y 3.5 million they will run out of benefits in the water rate from November. The Ministry of Energy said that the rate segmentation policy “is part of the efficient use of the resource by users of electricity and natural gas.” In turn, he indicated that “the aim is for the subsidies to reach those who really need them.”

“The amount of gas demanded by households is not related to income level and is directly linked to weather conditions, number of household members, construction characteristics of the home and the efficiency of domestic equipment,” the government report said. . He pointed out that “the consumption of gas through networks in homes located in the coldest regions of the country doubles that of temperate regions.”

In the case of electricity, a total of 399,156 users will lose all subsidies. Meanwhile, in the case of water, high level users will suffer a total removal of the subsidy from November 1. Some 3.5 million water users will lose all subsidies starting in November.

People pay 30% per liter of water of what it costs to make it drinkable. The State covers 70% of the service and 30% is covered by the company with collection income.

gas segmentation

In the case of gas, the Registry made it possible to identify users who have requested to maintain subsidies according to their family income and particular situations:

• Level 1: higher income and people who did not apply for registration.
• Level 2: lower income recorded. Provisionally, beneficiaries of the social rate will be included.
• Level 3: average income.

In Level 1 there were 269,725 users; in 2, 2,880,090; and in 3, 2,599,550.

They clarified that “the amount of gas demanded by households is not related to income level and is directly linked to climatic conditions, number of participants in the household, construction characteristics of the home and the efficiency of domestic equipment.” “The consumption of gas through networks in homes located in the coldest regions of the country doubles that of temperate regions,” they explained.

But in more extreme cases, such as between the province of Santa Cruz and the City of Buenos Aires, the difference is 11 to 1. This difference is mainly explained by the use of heating required to air-condition the home environments and is decisive for preserve the health and guarantee the survival of its members.

To the Level 1 A total reduction of the subsidy will be applied for all consumption, with an increase of 167%. Level 2 stays at the current rate.

In the Level 3, a volume equivalent to 70% of the average of the minimum and maximum thresholds of each category and subzone is subsidized. The surplus will increase 167%.

The increases for Levels 1 and 3 will be applied gradually in 3 bimonthly periods (from the consumption of August, October and December 31).

In March 2022, an increase of 20.1% was applied to the average bill for residential users due to variations in the remuneration for the gas transportation and distribution service. In June 2022, an increase in the price of gas was authorized for users who were not beneficiaries of the Social Rate, which meant an impact on the average bill of 18.5%.

The increases due to the removal of subsidies will be applied gradually every two months starting in September (November and January afterwards), implying an average rise of close to $500 per month per step, and $1,500 accumulated in the 3 bimonthly periods.

Electricity segmentation

According to the RASE, 8,890,998 of electrical energy have been recorded: in Level 1: 399,156 (4.49%); in 2: 5,040,120 (56.69%); and in 3: 3,451,722 (38.32%).

A consumption limit of 400 kWh per month per household will be applied to maintain the subsidized rate. And another of 550 kWh for localities that do not have natural gas through networks.

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