Starting January 1, The government made changes to the support system For electricity and gas users in residential areas, and for bottle consumers. Here are the main questions and answers about the new system.
What changes as of January 1?
The government will implement a new energy subsidy system. There will be no division according to income levels (high, middle and low): there will be only two categories of users, Who will get benefits and who will not. Furthermore, the bonuses will not be applied uniformly throughout the year, but only in months when energy consumption is higher.
What about income segmentation?
The current hash (N1, N2 and N3) is deleted. The new threshold for support will be three total basic baskets, which today equates to $3.6 million. But data on asset status and consumption will also be cross-referenced to determine whether a household will receive the benefit.
What happens to users already registered with RASE today?
Those already registered on the Register for Access to Energy Subsidies (RASE) will not have to register again: their data will be automatically migrated and can be updated every month with a sworn statement.
What will electricity support look like?
Eligible families will receive Support a 50% discount on basic consumption of 300 kilowatt-hours per month in summer and winter, and 150 kilowatt-hours in spring and fall. If they consume more than this limit, they pay the surplus without support.
In addition, exceptionally, during the next year there will be Additional 25% bonus in January Which will decrease every month by two percentage points until it disappears in December 2026. Thus, next January, the total electricity subsidy will be 75%, in February 73%, in March 71%, and so on.
Until now, the subsidy has covered 100% of a block of up to 350 kWh per month for low-income people and up to 250 kWh for middle-income people.
How will gas subsidy work?
50% subsidy on a specific consumer segment (Varies by user’s geographic region) It will only apply between April and September, whereas before it was year-round.
Exceptionally, During 2026, there will be an additional 25% bonus in January. Therefore, gas that does not have a subsidy in the summer will receive a 25% discount. This increase will be reduced by 2% per month until it disappears in December 2026.
Will there be any additional benefits in the first year?
Yes, from January an additional 25% premium will apply, which will be reduced by 2% each month until it disappears in December 2026. Therefore, exceptionally, electricity will have a 75% subsidy on basic consumption in January (50% + additional 25%) and gas a 25% subsidy for that month only. In February, the electricity subsidy will be 73%, gas subsidy 23%, and so on every month.
How much will the increases be?
Each user will get a different increase depending on the hash they were in (High, middle and low income) and according to their consumption, as the biggest change is focused on the state supporting smaller quantities of demand.
For example, in May, when the temperature starts to drop, Electricity subsidy will be only 50% for the first 150 kilowatt-hours consumed, after it was 100% previously. It is a bonus to consume up to 250 kWh for middle-income users and 350 kWh for low-income users.
How much will users pay for electricity and gas?
According to the Department of Energy, with the new scheme, In months with high electricity demand, 35% of users pay an average bill of less than $22,000; 66% less than $44,000, and 81% less than $67,000.
In the case of gas, during the winter, 56% would pay less than $14,000; 75% less than $56,000, and 83% less than $73,000.
What about high-income users?
There will also be a significant increase in prices, as previously they were paying the “without subsidy” reference price set by the Ministry of Energy, but that does not reflect the true cost of gas and electricity. The government decided to “transparent” this price and make users, industries and companies pay the real cost.
For example, in December, high-income users, industries and companies will pay an average gas value of US$2.94 per mmBtu (the English measurement used in this sector), while starting in January, this value will rise to US$3.80 and remain constant throughout the year.
In electricity, the cost of electrical energy will rise from $58,901 per kilowatt-hour in January to a value of more than $100,000.
What happens if a family loses support, and then their income declines?
You will be able to update your sworn statement in the RASE and request support again. The review takes place monthly, allowing situations to be corrected quickly.
What happens with the bottles?
3.36 million beneficiaries of the home program will be integrated into the new system. They will receive a similar monthly bonus To the total value of a 10 kg bottle ($15,000) in the winter and 50% of the cost per month during the rest of the year.. As of January, they must register on the official website of the Ministry of Energy (www.argentina.gob.ar/subsidios).
How does the change in support system affect industries and companies?
The change will also strongly impact industries and companies that have not signed long-term contracts. They have to pay the market price (spot) at every moment.