Argentina's New Energy Subsidy Scheme Targets Low-Income Households
The Argentinian government has implemented a new energy subsidy scheme, the Focalized Subsidies Regime, to help households manage their energy costs. This comes after the previous administration's subsidies were largely removed, leading to significant price increases. The new scheme targets households based on their income and socio-economic situation.
The scheme categorizes households into three levels based on their economic capacity. Level 2 users, classified as low income, receive a substantial discount of up to 80% on their basic energy consumption. Level 3 users, considered medium income, access a partial discount of approximately 50%. The state covers between 80% and 87% for electricity and 16-20% for gas for these groups. In the Metropolitan Area of Buenos Aires, for instance, group 2 receives a 65% discount and group 3 receives a 50% discount, with monthly adjustments for inflation and wages.
Households in Patagonia receive an additional 22% increase in their income ceiling and participate in the Cold Zone regime, ensuring a gas subsidy of up to 50%. The scheme aims to guarantee access to electricity and gas for essential needs like heating, cooking, and refrigeration. Subsidies are applied nationwide, with adaptations for gas expansion zones and exceptions for those who are electrically dependent or social beneficiaries. Households can request subsidies if their total monthly income is below 3.5 basic baskets.
The Focalized Subsidies Regime, operating under Decree 332/2022 and Decree 465/2024, segments households and provides tailored discounts on an 'essential energy basket'. It aims to reduce the cost of energy services for those most in need, ensuring access to electricity and gas for essential purposes. Residential users register in the Registry of Access to Energy Subsidies (RASE) to apply.
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