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Sunday, August 14, 2022

this is how electricity rates will be segmented

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This week, the Minister of Economy, Serge Massaanticipated that the almost 4 million households that did not request subsidies in the rate segmentation “they will be the first cut” and will stop receiving the benefit, and anticipated that a scheme will be implemented to promote savings in energy consumption.

In this sense, Massa indicated that “among the more than 9 million who did ask to maintain the subsidy, saving by consumption will be promoted,” and he explained that in electricity up to 400 kilowatts will be subsidized, in terms of gas the removal will continue the same logically and in water, the application of the haircut by segmentation will begin in September.

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Speaking at the headquarters of the Palacio de Hacienda, the head of Economy explained that the measures have to do with the fact that “the global context made energy and water more expensive between 4 and 10 times according to the area of ​​the world in which it touches.” live each one.

In this framework, Massa argued that, as a government, it faced “a segmentation that today shows us that almost 4 million households did not apply for subsidies, and that will be a first cut.”

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“Among the more than 9 million who did ask to maintain the subsidy, we are going to promote consumption savings. Not only for the economy of public accounts, but also for the progressivity of the system and for efficiency in the use of resources. We cannot continue with a scheme in which whoever spends the most on energy or water is the one who receives the most subsidies,” he specified.

Specifically, he explained that in electricity “up to 400 kilowatts will be subsidized, reaching 80% of users but only 50% of total residential consumption.”

In the case of gas, “the removal will follow the same logic, based on climatic differences and distribution costs, but also respecting the seasonality of the various regions of our country. In water, the application of the removal by segmentation will begin in September”, continued Massa.

“We assume the challenge of taking care of public accounts, but as a society we have to assume the commitment to take care of our energy and natural resources,” concluded the new minister.

Rate segmentation

In the registration stage by DNI termination number that concluded last Sunday, more than 9 million residential users of electricity and natural gas services registered in the Registry of Access to Energy Subsidies (RASE), within the framework of the rate reordering policy undertaken by the national government and mentioned today by Massa.

With an estimated universe of some 15 million residential users for electricity and gas distribution services, it is expected that some 11 million will access the subsidized rate, either the social rate (level 2, with fewer resources) or the intermediate sector ( level 3, the largest group of clients).

The increases will only be applied to users of level 1, with higher income, and to those who have not completed the form, while levels 2 (lower income) and 3 (average income) will not have any modification with respect to the rate they were paying.

Level 1 users will begin to pay the full rate (without subsidies) gradually in a process that will culminate at the end of the year and will be reflected in an average increase of $1,200 per month from September to completing about $3,500 from January of 2023.

Source: Ambito

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