As reported in January, a tariff increase parameter was established that has a ceiling of 20% and said increase, if so ordered by the aforementioned authorities, could be applied simultaneously with the segmentation work already delivered.
Through a document prepared to be presented at the public hearings where the rates from Energy, The Undersecretary of Electric Power made official that it plans an increase of between 17% and 20% in electricity bills for this year.
The agency stated that “it is believed appropriate to review the coverage of users of the cost of generation and transportation and, consequently, the price that is passed on to users,” according to the newspaper Clarín. This implies gradually removing subsidies, as required by the International Monetary Fund (IMF).
The 2022 increases are justified -according to this body- “with the perspective of continuing on the path of economic recovery.” The national State subsidizes 65% of these costs. In other words, customers pay 35% of what the electricity is worth.
Although official sources had already expressed that the increase would be between 17% and 20% in the ballots, the presentation of the Undersecretary of Electric Power is the written confirmation of that decision.
“Generation costs are expected to increase in 2022 compared to 2021. With the economic recovery that the country is experiencing, it is believed appropriate to advance in the review of seasonal prices,” says a document from the agency headed by Federico Basualdo.
“For this reason, pricing is proposed to be defined in such a way that the final impact on users’ bills ranges between 17% and 20%. The release of funds in terms of current subsidy to the price of energy will contribute to the execution of infrastructure works to strengthen the operation of the electrical system with an inclusive and federal approach”, establishes that work.
Yesterday, the companies Edesur and Edenor considered “essential” a “tariff adjustment” for electricity services, but they avoided disclosing the percentage of increase they seek to obtain.
According to both companies -which operate in the Metropolitan Area of Buenos Aires (AMBA)- if the current tariff values are maintained, their operating deficits would increase in 2022 by $43,236 million (in the case of Edesur) and $56,817 million (Edenor).
The distributors raised their economic-financial projections to the comptroller of the National Electricity Regulatory Entity (ENRE) María Soledad Manín, within the framework of the public hearing that will take place on February 17.
On that occasion, both distributors and carriers will formally present their rate adjustment proposals. Within the framework of the hearing, it is estimated that both Edenor and Edesur will announce the percentage of increase they intend.
The Government estimates an increase of 20% on average for the electricity service, but as it also seeks to carry out a segmentation of rates -as announced by the Minister of Economy, Martín Guzmán- many users will no longer be subsidized and will pay the full value of the service, although the social tariff will be maintained.
Before the ENRE, Edesur pointed out that, without tariff adjustment, the company’s cash flow would have an additional deficit of $43,236 million.
Edenor, for its part, presented two scenarios: one with the macroeconomic assumptions set by the ENRE based on the Budget Bill (33% inflation and dollar at $131.10 at the end of the year) and another based on estimates made by the company itself in October of last year (46.8% and $153.40 for both indicators, respectively).
The result of the projection for 2022 with the macro variables sent by the ENRE shows a cash deficit of $50,849 million, he explained about the first of the options.
Then, regarding the need for funds according to his estimates, he indicated that it amounts to a total of additional $56,817 million to cover the deficit for the period.
Source: Ambito
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