Argentina ends electricity subsidies to save $4 billion

Updated: Jan 29, 2016 - 5:56 PM

BUENOS AIRES, Argentina (AP) — Argentina is ending subsidies on electricity bills, and officials say the move will save the government $4 billion this year.

Authorities are declining to estimate how much consumers' power costs will rise as a result, though some Argentina news media say bills could jump as much as 500 percent for some users.

The government says it spent a total of $51 billion over the past 13 years to keep consumers' power bills down.

Energy Minister Juan Aranguren said at a Friday news conference that a new "social tariff" is being introduced on wealthier users that will provide money to help reduce the impact on poorer households from the end to subsidies.

Leave a Reply