Argentine court rejects electricity tariff hikes
BUENOS AIRES, Aug 3 (Reuters) - An Argentine court upheld a ruling by a lower circuit to block government-proposed hikes in electricity tariffs, local media reported late Wednesday, a ruling that could complicate the state's bid to reduce Argentina's fiscal deficit.
The decision by a federal judge in Buenos Aires province reaffirmed a previous decision in July handed down by a court in the city of La Plata.
The Argentine government had ordered a significant increase in electricity prices at the beginning of the year with the purpose of reducing the generous subsidies the state pays to keep energy prices low.
The issue is now likely to go to Argentina's Supreme Court, although the federal court ruling will affect efforts to reduce the deficit in the short term.
Since coming to power in December 2015, center-right President Mauricio Macri has undone many of the protectionist policies of the leftist governments that preceded him in a bid to jump start the nation's moribund economy.
The measures, however, have led to protests from Argentines upset at increased prices and lowered purchasing power. (Reporting by Juliana Castilla; Writing by Gram Slattery; Editing by Paul Tait)
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