A report of the Argentine Institute of Energy General Mosconi (IAE Mosconi) revealed that last October the cost average of generation of electrical energy recorded a 271% increase in year-on-year comparison with the same month of 2023, despite the 14% drop compared to the previous month. Likewise, andhe price paid by demand rose 3% in the tenth month of the year and has accumulated an increase of 360% year-on-year.
“With these values, The average price paid by demand covered 84% of generation costs in October. In the same month of 2023, the average price paid for the demand covered 68% of the costs,” the specialists explained. The “mismatch” between costs, price and rates of electric energy “has been maintained for a prolonged period while costs grow 226% annually, the average price paid by demand does so at 275%, this indicates an increase in coverage annual”.
Furthermore, the year-on-year increase in costs was above the wholesale internal price index (IPIM): in the same period it grew 179% year-on-year, while energy prices did so at a greater magnitude.
The Rates and Subsidies Observatorydependent on the Interdisciplinary Institute of Political Economy (IIEP-UBA), reported that the rate delay in the country was dragging on, hand in hand with subsidies, which since their implementation in 2002 reached their peak in 2014, when they represented 3.4% of GDP.
In 2019 they were reduced to 1% of GDP, and rose again to close to 2% in the administration of Alberto Fernández, according to the Center for the Implementation of Public Policies for Equity and Growth (CIPPEC).
The Government authorized a new increase in electricity rates of 2.5% in December
The national government advances in the process of adjustment of prices of public services, and made official an increase in electricity rates which will take effect from December. This increase, previously defined by the Minister of Economy, Luis “Toto” Caputo, was formalized with the publication of the new tariff tables of the companies providing the service, including Edenor, Edesur, Distrocuyo SA, Transpa SA, Epen, Trasnoa, Transcomague, Transnea, Transba and Transener.
The update includes the values corresponding to various categories and subcategories, including the Own Distribution Cost (CPD), the Cost of Energy Supplied in Bad Conditions (CESMC) and the Cost of Energy Not Supplied (CENS). Likewise, the annexes specify the new applicable costs for residential users according to their level.
The resolutions issued by the National Electricity Regulatory Entity (ENRE) establish that The new rates came into effect on December 1. The adjustment will imply an average increase of 2.5% in electricity bills. However, the impact on the ballots It will vary depending on the level of consumption and income of each family group.
A household spends $134,173 during November to cover its energy, transportation and drinking water needs, according to the report from the IIEP Rates and Subsidies Observatory (UBA-CONICET). This spending decreased 0.2% compared to the previous month, but slowed for the third month in a row. The basket of public services already represents 50% of the minimum vital and mobile wage, which stands at $271,571.22.
Source: Ambito
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