2024-01-08 14:56:00
He Government ordered that gas service rate segmentation Starting next April 1, a new scheme will be in force to provide subsidiesas announced this Monday, January 8, by the Secretary of Energy, Eduardo Rodríguez Chirillo.
In the framework of the public hearing to define a new increase in gas rates, Chirillo stressed that the “retrofitting“of subsidiess will aim to “focus on the most vulnerable sector” of the users.
What’s coming: elimination of tariff subsidies but without shock
According to the Secretary of Energy, “the segmentation of subsidies carried out by the previous Government has had flaws, since users continue to receive generalized subsidies and, in addition,There is a lack of user pattern control.”
Details of the new scheme to set subsidies for energy rates
In that sense, he explained that the “change proposal” will include some changes, including:
- “determine the total income of the family group and
- establish a basic energy basket with types of consumption in the different areas of the country, so that the subsidy that the State will grant is differential when the price of that basic basket exceeds a certain percentage of the total income of the cohabiting group.”
Rodríguez Chirillo spoke this way within the framework of the public hearing for the temporary adjustment of gas transportation and distribution rates, which takes place this Monday, January 8.
The meeting is virtual and is organized byl National Gas Regulatory Entity (Enargas). As established, during this hearing the monthly rate update index will also be debated.
In his presentation, Rodríguez Chirillo indicated that there will be a “new conceptualization” of subsidies, with a “gradual transfer” of the price of the PIST (Entry Point to the Transportation System) for the “progressive readjustment” of these state transfers.
He maintained that he intends to “guarantee basic energy consumption for all users” and that the current tariff segmentation will be maintained in the first quarter, with a “new scheme” that will begin to be implemented starting in April.
The main change will be the adoption of a Basic Energy Basket, instead of the current criterion of using the equivalent of 3.5 times the Total Basic Basket (CBT) prepared by the National Institute of Statistics and Censuses (Indec).
The new basket – not yet specified – will aim to “determine the income of the cohabiting group” and to “cover basic needs of people with different types of consumption in areas of the country.”
Some definitions from the Secretary of Energy regarding the subsidy system
- “Currently, there is an exhaustion of a model that has come to an end and that has left us in a situation of vulnerability of energy systems.”
- “Previous administrations left a situation that can be summarized as follows: the current energy system is highly disinvested, underfunded, inefficient, at risk of shortages and with a trade balance deficit of US$30 billion in the last ten years.”
- “Among our objectives are ensuring supply, reversing the deficit energy trade balance in the short term, ensuring that tariffs ensure the financial sustainability of the sector, reallocating subsidies to the most vulnerable sectors, and ensuring that the private sector is responsible for the expansion of infrastructure at your own risk.
What the Enargas auditor said
Meanwhile, the Enargas auditorCarlos Casares, He maintained that although there were temporary adjustments, regulated by a 2020 decree, “A definitive renegotiation agreement has not been reached. Therefore, that stage is considered completed.”
In his opinion, “in this new management “It is considered necessary to provide clear and precise signals for efficient and rational consumption for different types of users.”
As stated by Casares, the objective is to “prevent the provision of gas transportation and distribution services from leading to the obsolescence of the assets of the providing companies and a deepening of the inconveniences derived from the lack of renewal of networks and their expansion.” “.
Finally, the Enargas auditor indicated: “Given these conditions, It is necessary to adopt measures to ensure the continuity of public gas services. Therefore, in addition to carrying out the tariff readjustment, it is necessaryor approve periodic adjustments”Casares highlighted.
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