The Superintendency of Electricity (SIE) established a 9% adjustment to the rate per kilowatt hour (kWh) for the April-June quarter of this year, in relation to the rate set in the quarter ending March 31, for residential customers of companies electricity distributors from the North (Edenorte), the South (Edesur) and the East (Edeeste).
through resolution SIE-021-2022-TFadopted on March 28, the SIE explains that the 9% to be applied to BTS-1 end users (residential) with a consumption range of 0 to 300 kWh per month, is due “to the current and widespread volatility in the international prices of mineral coal, natural gas, oil and derived fuels used for the generation of electricity”.
The adjustment is part of the gradual removal of the subsidy to electricity rateestablished in the Electric Pact, which began to be executed in November of last year and will be quarterly until 2026.
With the new changes, at least in the rate for residential customers and for small businesses (BTS-2), there will be increases in kWh ranging from 0.49 pesos to 2.68 pesos.
Small business customers of Edenorte and part of the residential customers (depending on their consumption) will be the ones that will have the greatest increase.
For customers with more installed power, the resolution also applies rate adjustments.
“The instability of variables that has caused the generalized increases in prices at the international level has been weighed”Superintendency of Electricity
Prior to its first adjustment, the rate for the electricity service of the three distributors remained unchanged since June 2011.
The dismantling of the subsidy, established in the Electric Pact signed in February 2021 by the business, political and government sectors, aims to bring the rate up to a level that reflects the real cost of the service, with gradual increases determined by the Superintendency of Electricity every three months, by resolution.
The National Agreement for the Reform of the Electricity Sector (Electricity Pact) provides for a quarterly adjustment of the transition rate to be applied to regulated users based on variations in the average purchase price, variations in the exchange rate, loss reduction and improved efficiency.
In the resolution, signed by the superintendent Rafael Velazco, it is explained that, for the purposes of issuing the Reference Rate and Rate to be applied for the period April-June 2022, the instability of variables that has caused the generalized increases in the international prices of mineral coal, natural gas, oil and derived fuels used for the generation of electricity.
“The adjustment of the Transition Rate to be applied to BTS-1 with a consumption range of 0 to 300 kWh/month by nine percent has been considered as a mitigation measure” in relation to the quarter January-March 2022precise.
