Power subsidies to be cut in Argentina

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Julio De Vido,
Argentine Minister
of Planning
 
Buenos Aires, Argentina — (METERING.COM) — November 4, 2008 – Following an earlier promise the Argentine government has announced plans to cut subsidies to the power sector worth more than Ar$807 million (US$240 million) annually.

Making the announcement last week, planning minister Julio De Vido said the cut in subsidies would result in an increase in electricity prices for the approximately 750,000 largest residential users who use more than 1,000 MWh per two month period, or about 8 percent of the country’s 9.5 million homes.

In addition four percent of commercial buyers and two percent of industrial buyers will be affected.

De Vido said the reduction of the subsidies promotes a redistribution of wealth, adding: “This is not a price hike, but the substitution of subsidies paid by the state.”