Argentina electricity price hikes expected
BUENOS AIRES, February 1, 2017 – Argentine Minister of Energy and Mining Juan José Aranguren said on Tuesday that about 83% of electricity consumers in greater Buenos Aires could see electricity price hikes.
The hikes will be between 60% and 90%, due to cuts to government subsidies. According to the ministry’s numbers, the cutback will affect customers of two power distribution companies: Edenor and Edesur.
The minister also said that the move is an attempt to hit a fiscal deficit target of 4.2% of GDP, down from 2016’s rate of 4.6%. In early 2017, these measures could lead to an initial rise in inflation, which in 2016 averaged around 40%.
Argentina’s energy subsidy rollbacks began in 2016 under President Mauricio Macri’s government. In September 2016, the administration put forth a plan to raise electricity prices by as much as 300% for some consumers, a decision which has been upheld by the Supreme Court.