The wholesale component encompasses energy and capacity purchases, transmission costs, and other charges set by the national Energy Secretariat and transferred to distribution companies. EPEC’s value-added distribution component covers operational and maintenance costs for delivering electricity to homes, businesses, and industrial users. The disparity between federal and provincial contributions was particularly pronounced in May, when the wholesale adjustment contributed 8.67 percent to the final tariff versus 1.02 percent from provincial distribution. February showed a similar pattern with 6.79 percent and 0.83 percent respectively.
The provincial government emphasized that the total tariff increase exceeded 44 percent, substantially above inflation for the same period. EPEC President Claudio Puértolas indicated that progressive reduction of national subsidies and wholesale energy cost increases drove the pricing evolution, which exceeded inflation rates. The provincial administration also highlighted that the elimination of the Cold Zone assistance program left hundreds of thousands of users paying full tariffs, further increasing living costs.
The statement marks escalating political distancing between Llaryora’s provincial government and the national administration. The governor has publicly criticized national economic direction at multiple public works inaugurations. Opposition figures challenged the provincial narrative, with ERSEP board member Juan Negri arguing that provincial taxes including municipal surcharges represent approximately 20 percent of bills and constitute the primary driver of Córdoba having the country’s highest electricity costs.
The provincial wholesale tariff mechanism includes monthly adjustments through a formula considering salary indices, wholesale prices, and banking rates, approved by ERSEP in June 2024 despite internal regulatory objections. Córdoba has simultaneously experienced significant private employment losses, compounding economic pressures on residents facing utility cost increases substantially outpacing inflation metrics.
This article was curated and published as part of our South American energy market coverage.
