Why did Javier Milei declare an emergency in the energy sector?
President Javier Milei issued a decree declaring an emergency in the energy sector on Monday and ordered the energy secretariat to start revising electricity and gas tariffs. This marks the first step in the government’s plan to cut utilities subsidies, which will lead to significantly higher prices for end users.
How long will the energy emergency last?
This marks the first step in the government’s plan to cut utilities subsidies, which will lead to significantly higher prices for end users. The energy emergency will last until December 31, 2024, by which time the new tariff scheme should be in place, according to Monday’s decree, which bears the signatures of Milei and his ministers.
What is happening in Buenos Aires?
As of now, the Energy Secretariat has increased natural gas tariffs by at least 150%, the Public Works Secretariat has approved a 209% rise in Buenos Aires water fares, and the National Electricity Regulation Office (ENRE) announced hikes starting at 120%. These new prices came into effect on April 1.
When will a new electricity tariff be applied in Argentina?
Those who do not have a domestic gas supply, for example, may consume more electricity because they use it to cook. In Argentina, modifications to utility tariffs have to be approved at a public hearing. If this new scheme is approved in December, it could be applied in February, Caputo said last week. Otherwise, it will be applied in March.
What is Argentina's contingency plan?
This tender is part of a series of measures that the government of Argentina has been developing since October 2024 with the Contingency Plan, which includes short, medium and long-term actions to recover an electricity system that was in a critical state in December 2023.
How much does a 100 cubic meter energy bill cost?
The Energy Secretariat posted a chart on X saying that users consuming 100 cubic meters will pay AR$15,830 (US$17.5 at the official rate), AR$23,678 (US$26.1), and AR$24,285 (US$26.8), depending if they are from a low, middle, or high-income home, respectively. That would mean increases ranging from 150% to 500% after taxes.
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Changes in the energy situation in the last 12 months that are likely to have an impact on future direction or policy. It is possible to summarise the current energy situation in Argentina as follows. Argentina and renewable energy resources. Currently, extensive regions of the country have wind and solar energy sources.
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The President of Argentina announces an ''emergency'' in the energy sector, citing obsolescence and inadequate infrastructure. A new decree aims to review energy tariffs, involving regulatory entities and potential rate increases. With some of Latin America''s lowest electricity prices, the proposed hike could impact inflation, pushing it to nearly 200%.
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