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The new increase in electricity tariffs corresponding to July will affect users who are supplied by the National Interconnected Electricity System (SEIN), confirmed Energy and Mining Investment Supervision Agency (Osinergmin).
In the case of residential consumers, they will have an increase of 0.60% on average, while industrial and commercial consumers will have an increase of 0.19%, which applies from the 4th of this month.
Why are rates going up?
Osinergmin explained to Management that the distribution value-added (VAD) update was done by applying its update formulas as a result of changes in the wholesale price index.
Other factors influencing rate hikes are exchange rateand higher prices for copper and aluminum, the cost of which is invested in electricity distribution networks, are adjusted monthly.
How will the increase in electricity tariffs affect?
As for the current government, home users their rates rose to 12.27%, but in the industry the growth is greater, since it grew by 7.2% only from January to July 2022, and under the current presidential administration it reached 18%.
In metropolitan Lima alone, rates for domestic consumption rose by 0.39% and for industry by 0.36%, according to the consultancy Enerkory. For this reason, receipts corresponding to July will rise for the seventh month in a row, and although they report small monthly fluctuations, the accumulated amount is 2.59%.
Subsidy
To cope with this increase, a law proposed by the executive was approved. which seeks to reduce the electricity tariff to 16%the benefit reaches low consumption household users and will be paid by higher consumption users through cross-subsidization through the Electricity Compensation Fund (FOSE), this will come into effect in 2023.
Source: RPP
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