Nevertheless, the Milei administration announces increases in electricity rates effective January 1.
On New Year’s Eve, millions of people were left without power in the Buenos Aires Metropolitan Area (AMBA), as a result of a fire at the Bosques Substation, which is controlled by the Southern Distribution Company (EDESUR), a major private electric utility company in Argentina.
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Although the company reported that electricity service was being restored gradually, thousands of homes remained without power overnight. The outage coincides with a heat wave that exceeds temperatures of 86 °F.
Meanwhile, the administration of far-right President Javier Milei officially announced increases in electricity rates effective January 1. According to the measures, the Northern Distribution and Marketing Company (EDENOR) will apply a 2.31% increase, and Edesur a 2.24% increase.
Residential Level 2 and Level 3 users, who are low-income with energy subsidies, will receive discounts applied to the wholesale energy price. These are calculated based on the value paid by Residential Level 1 users, higher-income households.
The neoliberal shock therapy being imposed by Argentina’s libertarian President Javier Milei has been a nightmare for average working people.
In April alone, the costs of housing, water, electricity, and gas shot up by 35.6%. In Buenos Aires, they rose by 40.4%. In one month! https://t.co/w6ULkruC69 pic.twitter.com/saqbKvoejm
— Ben Norton (@BenjaminNorton) July 18, 2024
However, the Targeted Energy Subsidies (SEF), which will be implemented during 2026, sets an income ceiling equivalent to three total basic food baskets. Households that exceed this amount will lose their energy subsidies.
Furthermore, the electricity price hikes come on top of the ones in gas and water. The National Gas Regulatory Entity (ENERGAS) also announced increases of between 2% and 3% in gas bills.
Previously, the Milei administration had approved the 2026 Budget, with cuts to Science and Education. It estimates an annual inflation rate of 10.1%, a figure considered optimistic given the acceleration of prices in basic services.
#FromTheSouth News Bits | Argentina: The Senate approved a budget that cuts funding for key sectors such as education and science. pic.twitter.com/6luXKU9IiO
— teleSUR English (@telesurenglish) December 30, 2025
teleSUR: JP
Source: EFE
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