360% increases in light and 100% gas

Argentina, October 20, 2010: According to the resolution published in the Official Gazette yesterday, the National Regulatory Authority for Electricity (ENRE) allowed distributors under its jurisdiction, Edenor, Edesur and Edelap, the application of full rate charts without deductions for allowances, as approved in November 2008.

The Government had set temporary suspensions called tariff charges in last winter to quell the protests when it met the standard, two years ago. ‘In the two months from June to July, the state subsidized 100% of those charges, while August to September it covered 70% of that growth.”

Spokesmen for the Federal Ministry of Planning clarified that “People will pay the same amount they paid last year if they use the same amount.” And that “last year, we had created the category of ‘exception’ to those who paid social plans or the minimum pension, or are unemployed or lack of gas and running water.”

Resolution 550/2010 of ENRE clarifies that “electricity distributors must publish in the media the tariff in force, something the companies have already made in recent days.”

According to the distributors, “the average annual turnover for households that consume more than 1800 cubic meters of gas, or 13% of the total, which is located at 1768 pesos. Failng to implement the suspension of subsidies in the winter, the annual bill increased to 2230 pesos.”

The fee increases on average more than 70% the cost of gas to large consumers.