Tariffs: what are the differences in the price of electricity between the AMBA and the rest of the country

Power lines near the Atucha I atomic power plant in the province of Buenos Aires, Argentina. Fires near the town of Campana caused failures that generated a blackout in large cities of the country. March 1, 2023. REUTERS/Matias Baglietto

The price gaps between the electricity rates paid in the AMBA and in the rest of the country have been increasing in recent years, especially since December 2019. One of the causes lies in the particularity of each one. of the provincial regulatory frameworks.

Although the price of wholesale energy is the same throughout the country, the final cost per KWh consumed is highly variable depending on the area. “This is explained, without counting taxes, by the differences in the Value Added Distribution (VAD) that each distributor charges its customers and that is authorized by the provincial regulatory entities except in the AMBA that is under national jurisdiction,” according to a report prepared by the Observatory of tariffs and subsidies IIEP (UBA-Conicet).

In addition, since last year, the segmentation of tariffs made it even more complex and increased the dispersion of tariffs since for the different segments of users -according to their income level- the place where to find the lowest tariff can vary.

According to the report, the country’s average rate for a user in the N1 segment (high-income households), with data available as of February 2023, is $5,174 per month for a 300 KWh monthly bill. In this sense, the lowest value per KWh is charged in Jujuy ($3,539) and Tierra del Fuego ($3,545) while the highest value is received by users in Neuquén ($8,171) and Santa Fe ($8,135).

AMBA users in the N1 segment are below the country average with prices of $3,667 for Edenor and $3,661 for Edesur.

Observatory of tariffs and subsidies IIEP (UBA-CONICET)

In turn, the country’s average rate for an N3 user (middle-income households) is $3,406. In this case, the lowest value per KWh is charged in the AMBA, with $1,783 for Edesur users and $1,791 for Edenor users. Meanwhile, the highest average value is received by users in Neuquén, with $7,339 always for a 300 KWh monthly bill. In this segment, the highest bill is almost 5 times higher than the lowest.

On the other hand, the country’s average rate for an N2 user (low-income households) is $3,106. In this case, the lowest value per KWh is charged in Formosa (which still has the rate chart for January) while the highest value is received by users in Santa Fe, with $5,865. At this level, the highest bill is 4 times higher than the lowest.

AMBA users in the N2 segment are below the country average with prices of $1,527 for Edenor and $1,521 for Edesur.

For high-income users, and for the country’s average, the price of energy represents 54% of the bill, while 46% is occupied by the distribution value. In the case of the largest bill, at the high income level for Neuquén it is made up of 34% for the value of energy and 66% for the VAD, while at level 2 this relationship is 17% and 83 % respectively for the same province and at level 3 is 18% and 82% respectively in the jurisdiction.

“In the other jurisdictions the same situation is observed: the lower the income level, the higher proportion is occupied by the VAD and the lower the price of energy,” explained the observatory’s report.

Observatory of tariffs and subsidies IIEP (UBA-CONICET)

The AMBA average electricity tariff, equivalent to 300 KWh per month, has been reduced -in real terms- since December 2019. In turn, the different levels determined in the subsidy segmentation program have behaved differently since its implementation.

Between January 2019 and August 2022, the residential rate for average consumption fell 64%. Thereafter, the average fee for Tier 2 (low-income) and Tier 3 (middle-income) users continued their downward trajectory until today, while the final bill for N1 (high-income) users increased after implementation. of subsidy segmentation.

“However, if there is no increase in rates for the remainder of the year, a reduction in the bill in real terms is expected for the three levels of residential users,” they explained.

In March 2019, the value of the invoice reached the maximum of the series with a price -in the currency of February 2023- of $7,155. This was equivalent to 3% of the salary in that month, measured from the Average Taxable Remuneration of Stable Workers (RIPTE).

In February 2023, meanwhile, the average AMBA bill for an N1 user is $4,660 while for an N 3 it is $2,257 and for an N 2 it is $1,921. With these numbers, and taking the last published value of the RIPTE, in January 2023 the invoices of a high-income user represented 1.8% of the average salary; while bills from low- and middle-income users accounted for 1 percent.

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