Julio de Vido,
Minister of Planning
 
Buenos Aires, Argentina --- (METERING.COM) --- August 1, 2008 - New residential electricity tariffs have been announced in Argentina and will provide funding for new investments in the sector including new meters.

The new tariffs are applicable to the three utilities Edenor, Edesur and Edelap, which provide electricity in Greater Buenos Aires and the provincial capital, La Plata, and amount to an average increase of 21 percent. The largest consumers who use more than 1,201 kWh in a two-month period will incur the largest increase of 30%, while the lowest consumers who use less than 650 kWh will not face any increase. Other consumers between these limits will face an increase from 10% to 25%, depending on their consumption.

Industries and businesses, for which tariffs were increased in 2006, will receive a 10 percent increase.

In announcing the new tariffs, which are effective from July 1 – and the first since the freezing of rates following the economic crisis in late 2001 – minister of planning Julio de Vido said that they will affect about 1.02 million residential customers, amounting to about 24 percent of households, with the remainder consuming below 650 kWh.

De Vido said that the new tariffs will result in a saving of subsidies towards electricity consumption of $300 million (US$98 million). They will also contribute towards new investment in the energy sector of over $6 billion ($2 billion) over the next 10 years, including the laying of 2,800 km of high, medium and low voltage networks and the installation of 195,000 new electric meters.

The new tariffs should also contribute to more rational use of electricity, according to de Vido.

Together the three utilities have a total of 5.03 million customers, of which 4.3 million are residential.