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ECONOMY | 29-12-2021 14:47

Argentina to raise power, natural gas prices by 17% and 20% in 2022

Argentina is preparing to announce hikes to household utility tariffs in 2022, with a 17 percent cap on electricity prices and 20 percent cap on natural gas prices.

Argentina is preparing to announce hikes to household utility tariffs in 2022, with a 17 percent cap on electricity prices and 20 percent cap on natural gas prices, according to a government official who asked not to be identified because the matter is not yet public knowledge.

The increases will be announced between January and February and will be in effect for the whole year. The main criterion is to keep increases below inflation after price hikes of nine percent for energy and six percent for gas in 2021. Currently, Argentina's annual inflation is over 50 percent.

The government will also seek to implement "tariff segmentation" in early 2022 for Greater Buenos Aires, which will reduce utility subsidies for 500,000 users. Initially, the measure will affect 10 percent of consumers in Buenos Aires City and 24 surrounding municipalities. In the capital, those living in properties where the value of a square metre exceeds US$3,700 will pay the full amount.

Currently, 60 percent of the rates in Greater Buenos Aires are subsidised.

 

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by Jorgelina do Rosario, Bloomberg

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