2023-05-08 03:30:00
Prior to the last rate increase, and the removal of subsidies to the Tier 1 sector, the national government allocated a total of approximately 2,500 million dollars in transfers to cover current expenses in the first quarter of the year. This is a level similar to that seen last year, although with higher payments to Energía Argentina (Enarsa, exIEASA).
Unlike what was seen in the same period last year, total transfers were split almost evenly between the Wholesale Electricity Market Administration Company (Cammesa) and Enarsa. While in the first quarter of last year Cammesa kept more than 85% of the subsidies.
The preliminary data is official from the Open Budget and the Argentine Association of Budget and Public Financial Administration (ASAP). They were compiled by the consulting firm Economy and Energy (E&E) led by Nicolás Arceo.
- US$ 2.460
- million is the estimated figure of what the State used for subsidies between January and March of this year.
Between January and March 2022, the State allocated some 2,843 million dollars in subsidies while the estimated total for this year reached 2,460 million dollars of which. A difference of regarding 382 million dollars between one year and another.
How the subsidies were distributed
According to what the data shows, the transfers that the State made to Cammesa were 1,142 million dollars, during this first quarter of the year. This means that they were reduced by regarding 1,328 million dollars compared to what was seen last year.
A good part of these funds are used to cover a percentage of the electricity rate that users do not pay on their bills. This is a key point, since, hand in hand with the rate segmentation, the Government sought, at least, to contain this million-dollar loss of fiscal resources.
- US$ 1.167
- million is what the State gave to IEASA in the first quarter of the year.
The sharp reduction in transfers to Cammesa was offset by a substantial increase in subsidies to Enarsa. In the analysis quarter, the State gave some 1,167 million dollars to the state firm, almost 5 times what he spent last year, in those months.
These amounts do not necessarily mean that more gas was imported this year, but it reflects the change in the contracting of Liquefied Natural Gas (LNG) vessels that was made. In February, Enarsa awarded 30 cargoes and, unlike other years, not only did it do so earlier in the year, but it also offered advance payments, with the aim of securing lower market prices.
This way, going clean, the government transferred 48% of the subsidies to Cammesa in the first quarter (85% in 2022) and to Energía Argentina 49% (7% in 2022). The remaining percentage (3%), which represented close to 79 million dollars, was used, to a greater extent, to pay for the program to stimulate gas production (Plan Gas.Ar).
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