Residential and commercial customers who receive on their bill a range of energy consumption between 0 and 200 kilowatt hours (kWh) per month are the ones that have experienced the greatest increase in electricity ratein percentage terms, since the Superintendence of Electricity (SIE) began in November last year the gradual dismantling of the subsidy until 2026.
Residential and commercial customers represented 49.30% of the income from energy sales in 2021 of the electricity distribution companies of the South (Edesur), East (Edeeste) and North (Edenorte), according to reports from the Ministry of Energy and Mines.
The most recent resolution of the SIE with the adjustments that will apply for the April-June quarter establishes an adjustment of 9% in relation to the recently ended January-March quarter, for the transition rates for customers in the BTS-1 segment (residential) with consumption range from 0 to 300 kWh per month. The SIE justifies it by “the current and widespread volatility in the international prices of mineral coal, natural gas, oil and derived fuels used for electricity generation.”
When comparing the values contained in said resolution with the rates applicable to October 2021, the month before the dismantling of the subsidy began, residential customers with first consumption of kWh between 0 and 200, have experienced an increase of 36%, in average, in the electricity rate, going from 4.44 pesos in October to 6.05 pesos for those of Edesur, for the quarter that begins; 5.97 pesos for those from Edenorte and 6.17 pesos for those from Edeeste.
In the case of businesses (which correspond to the BTS-2 segment), the first kWh between 0 and 200 were the ones that experienced the greatest increase, with 50%, on average, when taking into account the three electricity distribution companies.
In October, the rate to be applied in this consumption range was 5.97 pesos per kWh; for the new quarter April-June it will be 8.62 pesos for Edesur clients, 9.57 pesos for Edenorte clients and 8.79 pesos for Edeeste clients.
The authorities support the dismantling of the subsidy to the electric power in the Electric Pact, signed in February 2021 by the business, political and government sectors. The goal is to bring the rate to a level that reflects the real cost of the service, with gradual increases to be determined by the SIE every three months.
Before the clearing began in November of last year, the rate for the electricity service of the three distributors remained unchanged since June 2011.
In October of last year, a few days after the first clearing began, the Electricity Superintendent, Rafael Velazco, said: “The measure seeks to align the costs of the current rate with its real price. Currently, the range that pays the least is from zero to 100 kilowatt hours and the subsidized rate is 4.44 pesos, but the real one is 10.50 pesos. Why such a big difference? Because we have 10 years and four months that those 4.44 pesos are not touched.
For the first rate adjustment, a resolution was adopted for the months of November-December 2021, but a modification was made for December that increased the fixed charge for monthly consumption of 101 kWh onwards for residential customers from 128.08 pesos to 140.20 pesos.
