Argentina's planning minister Julio de Vido has announced prices paid by the country's largest residential power users will rise 8.1%, state news agency Telam reported.
Specifically, residential clients that consume more than 600kWh every two months will be affected by the price hike.
"In will only affect 24% of households," de Vido said, adding a group of 1.6mn households consumed around 50% of the country's total power capacity.
Commercial power prices will not increase by more than 10%, according to Telam.
The rate increase will allow the government to avoid new subsidies for the country's power sector, according to the minister.
de Vido added the 100% of the increased revenues will be used for investment plans already submitted by generators and distributors.
While some residential consumers will end up paying 8% more for power, distributors should see their take rise by around 20%, director of power consultancy Fundelec Cecilia Laclau told BNamericas.
"It reality, distributors will see revenues rise around 20%," Laclau said. "The end-rate users pay includes fees for both distribution and generation. What's happening here is taxes will be less. The final increase is 8%, but distributors will see their take rise 20%."
An increase for power generators has yet to be determined and was not included in de Vido's announcement, she added.
Around 35% of what end clients pay currently goes to generators and another 35% goes to distributors, according to Laclau.
"It's good for the industry," she added. "At least something is happening."