Electricity prices in City, Greater Buenos Aires to rise 24 percent

Electricityprices in Buenos Aires City and Greater Buenos Aires will rise 24.4 percent on average in August, the Energy Ministry confirmed on Wednesday.

Around 35 percent of the capital’s population will pay 233 pesos (US$8.50) per month on average following in the increase, while 37 percent will pay 643 pesos (US$23.30) and 10 percent will pay 1,000 (US$36.20), according to Energy Ministry calculations.

“It means that almost everybody in the Buenos Aires Metropolitan Area (AMBA) will pay less than 1,000 pesos per month,” Energy Minister Javier Iguacel said at a press conference announcing the changes.

He guaranteed that the ‘social rate,’ or subsidised tariffs, under which 4.3 million people qualify, would continue.

The Mauricio Macri government has been rolling back multibillion-peso subsidies on consumer energy and trans- port prices since it took office in late 2015. Iguacel took aim at former officials of the Cristina Fernandez de Kirchner administrations for encouraging the use of electric heating devices.

“It’s not that the price is wrong,” he said, referring to the new price scheme, rather that electric heating “is a naturally and scientifically inefficient type of energy.”

He added: “Therefore, I recommend those who have electric heating to reduce usage to the minimum possible.”

The Energy Ministry also announced the full removal of electricity subsidies for shopping centres, banks, big businesses and casinos.

“They will pay for electricity what it is worth,” Iguacel said.

The minister insisted that the increases are “in line with inflation” and “not the dollar because the cost of electricity is tied to the peso.”