Rates without subsidies: hikes could reach 400% in Puerto Madero, Palermo, Belgrano and other expensive neighborhoods in Buenos Aires

Puerto Madero has the most expensive value per square meter in the city of Buenos Aires (REUTERS / Agustin Marcarian.)

In the first weeks of 2022, the Government will finally implement tariff segmentation, a mechanism by which users of gas and electricity services with greater purchasing power will no longer receive subsidies in the total amount of the bill. Rates are part of the agenda of topics under discussion in the negotiation with the International Monetary Fund (IMF).

Although no formal announcements have been made yet, according to official sources, the tariff segmentation would reach 500,000 users. “The segmentation program will advance over the universe of users who are in a position to face full payment for energy, removing the subsidy that currently exists,” they pointed out.

Currently, 60% of the rate in the AMBA area is subsidized. And from the Government they anticipated that in a first stage, the segmentation will affect 10% of the users of the City of Buenos Aires and of the 24 municipalities of the Buenos Aires suburbs

Currently, 60% of the rate in the AMBA area is subsidized. And from the Government they anticipated that in a first stage, the segmentation will affect 10% of the users of the City of Buenos Aires and of the 24 municipalities of the Buenos Aires suburbs.

What increases will face those who will stop receiving subsidies? Official sources pointed out as an example that a department that today pays $ 500 for electricity in a high-income neighborhood would go to $ 2,500 per month, according to projections managed by distributors. This represents a rise of 400 percent.

In red, the areas of the city with the highest prices for properties
In red, the areas of the city with the highest prices for properties

Although it was not yet informed who will stop receiving the subsidized rate, government sources indicated that the valuations of the homes in which the services are provided will be used as a parameter. For this, the electricity service regulator (ENRE) will define “geographic areas” in which it will gradually remove subsidies.

In the city of Buenos Aires, for example, those who live in properties where the square meter exceeds USD 3,700 will pay full rates and in the province of Buenos Aires, closed neighborhoods, financial activity and gambling will no longer receive assistance.

In the city of Buenos Aires those who live in properties where the square meter exceeds USD 3,700 will pay full rates and in the province of Buenos Aires those who live in gated communities will no longer receive assistance

For the segmentation, the market value of the properties will be taken and a work carried out jointly by ENRE and Conicet will be taken as a basis. However, for users who stop receiving the subsidy there will be an “appeal instance”, where it will be reviewed on a case-by-case basis.

According to the monthly price survey carried out by the Zonaprop real estate sales platform, the average price of a property in CABA stands at USD 2,366 per square meter. The price range finds its maximum value in Puerto Madero with USD 5,552 per square meter. They are followed by Palermo with USD 3,053 and Belgrano with USD 2,937. At the other end, the minimum value is in Lugano with USD 1,143.

Official sources announced that there will be an appeal when the segmentation is applied
Official sources announced that there will be an appeal when the segmentation is applied

The specialized consultancy firm Reporte Inmobiliario warned that As a neighborhood in itself in the city of Buenos Aires, only Puerto Madero exceeds the value of USD 3,700 per square meter. “Then that value is currently exceeded only in specific cases in some properties in certain neighborhoods of the northern corridor of CABA, from the center to the south there are practically no properties with that price per square meter,” he explained José Rozados, owner of the consultancy.

“Barrio Parque and certain blocks of Palermo, Belgrano and Recoleta could also contain that price level per unit of surface area but it is not even homogeneous, on Libertador with an open view and the river and with good quality standards there will be units with that price, but on the perpendicular street, even on the same block, it is likely not, ”the specialist warned.

The specialized consulting firm Reporte Inmobiliario warned that as a neighborhood in itself in the city of Buenos Aires, only Puerto Madero exceeds the value of USD 3,700 per square meter

One of the key points of segmentation will be to determine that the user at each address is the same person who owns the service. For this reason, the Energy and Gas regulatory entities are promoting a campaign to re-register their users.

For the rest of the users, who will continue to have the subsidized rate, the estimated increases for 2022 will move between 17% and 20%, with only one increase throughout the year, according to official information. In the case of electricity distribution, this recomposition is the basis for AMBA homes, while the increase in gas will be nationwide.

Currently, 60% of the rate in the AMBA area has subsidies
Currently, 60% of the rate in the AMBA area has subsidies

The official criterion for next year is that any rate increase is below inflation. During 2021, there was an increase of 9% for electricity service and 6% for gas on average and then prices remained fixed.

In December 2019, at the beginning of the Government of Alberto Fernández, a renegotiation of the Comprehensive Rate Review (RTI) had been decided that came from the Government of Mauricio Macri, and that should not extend for more than two years. Last week, through a decree, the Government extended that period and extended the interventions of the Electricity Regulator (Enre) and Enargas until December 31, 2022.

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Reference-www.infobae.com

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