New rate increase: how much will have to be paid at the AMBA in November

A new increase in water and sewer rates of the Buenos Aires Metropolitan Area (AMBA)whose coverage carries out Argentine Water and Sanitation (AySA)will impact the pockets of Argentines. It will be 4% starting in Novemberwhich adds to the 5% that occurred in October. In this way, it is the service that has increased the most in recent years, and it puts the budget of the consortia in check.

AySa supplies the Autonomous City of Buenos Aires (CABA) and 26 districts of the Buenos Aires suburbs, in addition to being one of those that the government intends to privatize.

It was in the first nine months of the year that suffered the biggest subsidy cutwhich fell by 58% compared to the same period in 2023, according to the most recent Rates and Subsidies report from the Interdisciplinary Institute of UBA-Conicet.

Water and sewer rates: how increases are calculated

The 4% increase arises from a polynomial formula established last April by the Ministry of Public Works after a Public Hearing procedure.

It takes into account the wage index (IS), the internal wholesale price index (IPIM) and the consumer price index (CPI) and monthly increases that have been applied monthly since last June, as provided by the resolution 9/2024 of Public Works.

The formula returns a “modification coefficient K”which from October to November increased from 1,419.32 to 1,476.39. The rate distinctions are by area and the low segment continues to maintain a 15% subsidy: this is the rate that applies to residential users and vacant lots in low areas. The social rate program is also still in force for those who cannot afford to pay the entire bill.

Increases in water rates: how much will you have to pay

For the areas considered high income (covers 20% of the total) that receive water and sewer services, the average rate since November would be $25,238an increase of 31% since the application of the new calculation system last April.

In the case of the middle zones (37% of the total), the average payable will be $22,920 and for the low areas (44%) of the total, the average rate will reach $18,417. In this way, the average cost to pay for the water and sewer service will be the next month $21,410.

For those who have water service, but not sewage, the paradox arises that the “high” zone (but which represents only 1% of those who have only that service) will pay a bill of $40,318 for that service alone, while the zone medium and low will pay bills of $13,204 and $7,021 respectively.

The evolution of rates throughout the year

According to the latest report from the UBA-Conicet Rates and Subsidies Observatory, last September the average bill for water and sewer service for the AMBA, including taxes, was $25,798.

That report, prepared when the 5% increase that was already in force in October was already known, estimated that In the first ten months of the year the average bill for water and sewer service increased 289%more than the 162% that in the same period increased the average rate of electric energy service, but less than the 601% that increased the public Transportation service and 715% that of Natural Gas.

The main difference in favor of the water service is that its coverage is estimated at 100%, against an average of 53% for all public services.

The same report specified that in the first nine months of the year the subsidies to AySA were $29,358 million, a very less value compared to the $5.2 trillion (millions) of energy subsidies (including electricity and gas) and 1 .4 billion to transportation.

Thus, subsidies to AySA were the ones that fell the most in real terms (that is, taking into account the effect of inflation) so far this year, 58%, against 37% that fell in the same period. energy subsidies and 39% transportation subsidies.