Rates: A family spends more than $130,000 a month to cover the cost of utilities

Rates: A family spends more than 0,000 a month to cover the cost of utilities

October 27, 2024 – 15:48

According to a study prepared by the IIEP Rates and Subsidies Observatory run by the UBA-Conicet, the smaller increase is due to the decrease in consumption and increases in water.

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The average cost of utilities for a representative household of the Buenos Aires Metropolitan Area (AMBA) It decreased in October for the second consecutive month, falling 2.5% compared to September, according to a report prepared by the IIEP Rates and Subsidies Observatory run by the UBA-Conicet.

The report states that in October an average AMBA household, without subsidies, spends $134,414 a month to cover its energy, transportation and drinking water needs at home, which implies 2.5% less than September, when a cost of $141,534 was reached.

When arguing the decrease, the IIEP maintained that “this reduction in spending on public services compared to September is explained by 1) lower consumption of electricity and gas that decrease once the winter seasonal peak has passed, while the tariff tables were slightly modified, electricity increased by 3.1% and natural gas by 0.5% on average, and 2) due to increases in the water rate tables.”

Likewise, he specified that “in AMBA homes, public service rates are paid that, on average, They cover 53% of the costs and, therefore, the State takes care of the remaining 47%“although he clarified that “this coverage is uneven between household segments and between services.”

At this point, he warned that “the rate coverage of the costs of public services is higher than that observed in the last eleven months and with an upward trend due to rate increases that complement greater stability in costs outside of seasonal peaks.” “and contributed that it is 11 percentage points higher than the average of the last ten months (42%).

Despite rate increases, they estimate that water and gas prices are still well below inflation

The water rate increased more than 700% so far this year

The water rate increased more than 700% so far this year

How much the basket of public services increased in the Milei era

Compared to December 2023, the study showed that the cost of the total basket increased 369% as a result of the updates to transportation, electricity, natural gas and water rates.

In this regard, he stated that “in the Disaggregated by service, it is observed that the most significant increase was in the gas bill natural with an increase of 715% compared to December 2023 and is explained by both rate increases and the increase in seasonal consumption”.

At the same time, he explained that “Electricity spending increased 162% while public services that do not depend on seasonal factors show an increase of 601% for transportation and 289% for water.”

In this way, the IIEP revealed that “the AMBA public services basket for October represents 12.2% of the average salary estimated registered month, while the proportional weight of transportation spending reaches 42% and is significantly higher compared to the other services”.

Source: Ambito

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