Prorrate Government removes subsidies to avoid inflationary impact

Prorrate Government removes subsidies to avoid inflationary impact

Officials of the Ministry of Economy admitted that Resolutions 119/25 and 120/25 of the National Electricity Regulatory Entity (ENRE) published on Tuesday, February 4 in the Official Gazette, they came out with a “mistake” And they will be corrected this week, with new publications in the BO.

Instead of clarifying that the impact on rates for the unification of the bonus in the subsidies was “Annual” the ENRE published that it will be fully applied in February 2025. However, Official sources assure that this readeacuation of the subsidies will be prorated throughout the year.

Specifically, the new tariff pictures of Edesur and Edenor They established that in February 2025 the average invoice before taxes of R-level 1 (high income) users would increase on average-with respect to the table in force to January 2025-a 2%; while in the case of R-level 2 users (low income) and R-level 3 (average income) would increase an average one 12.3% and a 8.4%respectively. These three percentages are what the Government now decided to proratrate on the tickets throughout the year.

Thus, the N1 will receive monthly increases due to subsidies until the end of the year of 0.16%; For N2 it will be 1,025%, and for 0.7%N3.

In parallel, in economics they ratified this medium that remains in force as of February 1.5% rate increase for electricityin line with the plan Monthly MicroDevaluation (Crawling Peg) and the fuel rise that has been applying the Treasury.

Pro therefore, The increases in the February Rate of Light Iran of 1.6% to maximum 2.5%.

What is the adequacy of energy subsidies

Last week the Ministry of Energy in charge of María del Carmen Tettamanti established, through the ENRE and the National Gas Regulatory Entity (Enargas), New tariff paintings that will impact user invoices from February 1, 2025.

The auction in The final invoices were set at 1.6% for natural gas by networks and 1.5% for electricity.

But also Energy unified bonuses on the price of energycorresponding to low -income users (N2) and media (N3). “In order to guarantee a sustainable and equitable electricity supply and energy for all users, avoid shortage and ensure the economic viability of the energy sector,” he said.

In this way, the Government formalized a new cut in the subsidies to light and natural gas rates, which reaches about 9.5 million homes belonging to the average and low income segments. From now on, these users will receive a “bonus“Lower in the price of energy in both public services.

What are the consumption stops and new bonuses

The current subsidy scheme is divided into three segments: high -income users (level 1), who pay the full price of services, low -income (N2) and average income (N3), who receive discounts with discounts with consumption stops.

In electricity level 2 the base consumption limit was set in 350 kWh/month; While for the demand for categorized users at level 3, the base consumption limit was set in 250 kWh/month. Above those bumpers, pay the full rate, as well as the N1 of higher income and zero subsidies.

But the new cut affects N2 and N3with a reduction in subsidies of the 65% For the first group and 50% for the second, both in electricity and in gas.

Compared to the bonuses in force since last June, the N2 and N3 suffered major discounts, of 71.2% and 55.94% In electricity, and 64% and 55% In natural gas, respectively.

In addition, the government announced that in line with the objective of simplify Natural gas social rate. Now, the payment of compensation will be made directly to the producers and not to the distributors. “In this way, we remove intermediaries and speed up the payment chain,” they said days ago.

The data of the Registration of access to energy subsidies (RASE) They reveal that until December 2024, 9.5 million electricity users and 5.3 million natural gas received subsidies, which represents a decrease of approximately 800,000 beneficiaries compared to the total residential users before the start of the management of Javier Milei.

Source: Ambito

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