The government of Argentina plans to invest APe 2,000m (US$414.9m) to consolidate and expand distribution networks of electricity and natural gas.
This investment will be made through two trust funds of APe 1,000m ($207.4m) each, the amount of which will be allocated to works including the construction and expansion of 25 substations in the electricity sector, as well as the laying of the gas at 1.5 million homes across the country.
The work planned for the power sector include the construction and expansion of 10 substations between the towns of Almirante Brown Buenos Aires, Lomas de Zamora, Juan Domingo Peron, Esteban Echeverría, Ezeiza, Lanús, Cañuelas, Quilmes, and Florencio Varela Berazategui.
The investment programme will be financed through a fixed tariff segmentation, which fluctuate according to consumption. The new segmentation tariff on electricity service provides a flat increase of APe 4 bimonthly for households that consume up to 300 kWh and an increase of APe 10 for those who consume between 301 and 650 kWh. Those segments represent 72% of the users. The gas bill will contain a fixed amount: an extra Ape 4 will be charged bimonthly for households consuming up to 500 m3/year; the extra charge will be APe 5 for those who consume between 501 and 650 m3/year, APe 6.5 for consumption of 651-800 m3, and APe 8.5 for consumption of 801-1,000 m3. These four segments represent 57% of total gas consumption.