2023-12-18 01:19:08
The National Government would declare in the next few hours the energy emergency. Furthermore, it is expected that it will arrange for the intervention of electricity and gas regulators.
As reported by Noticias Argentinas, it would be through a decree of necessity and urgency that would be published this Monday in the Official Gazette.
The emergency will be declared in the generation, transportation and distribution segments of electrical energy under federal jurisdiction; and of natural gas transportation and distribution.
The decree instructs the Ministry of Energy of the Nation to establish the mechanisms for the «price sanctions under conditions of competition and free accessmaintain income levels in real terms and cover investment needs, to guarantee the continuous provision of public services for the transportation and distribution of electricity and natural gas under adequate technical and economic conditions for providers and users of all regions. categories.
It would also determine the start of the rate review in accordance with article 43 of Law No. 24,065 and article 42 of Law No. 24,076 corresponding to public service providers.
transportation and distribution of electrical energy under federal jurisdiction and transportation and distribution of natural gas.
The DNU would establish that the entry into force of the resulting tariff schedules might not exceed December 31, 2024.
In addition, the intervention of the National Electricity Regulatory Entity (ENRE) and the National Gas Regulatory Entity (ENARGAS) is provided for, starting January 1, 2024 and until the appointment of the members of the Board of Directors that result from the selection process provided for in article 8 of this decree.
Until the rate review process is concluded, they may be approved «temporary adjustments of rates and periodic adjustments»aiming at the continuity and normal provision of the public services involved, on account of what results from the tariff review provided in the aforementioned article 3.
The decree determines the application of mechanisms that enable citizen participation in the process of temporary tariff adjustment, which will be carried out taking into account the provisions of the “General Regulation of Public Hearings for the National Executive Branch» approved by Decree No. 1172 of December 3, 2003 and its amendments or the own regime of
participation that the Regulatory Entity provides in accordance with its current regulations.
The Government advances in the plan to reduce subsidies
After the economic announcements of Luis “Toto” CaputoJavier Milei’s government is working on its reduction of subsidies to gas and electricity rates. Both the National Gas Regulatory Entity (ENARGAS) and the National Electricity Regulatory Entity (ENRE) called a public hearing on January 8, 2024, to authorize the increase in the price of services.
Through resolution 704 published last Friday in the Official Gazette, the ENARGAS hearing on January 8 will have as objective to approve the increase in rates for residential users in the public natural gas service.
Although the presidential spokesperson, Manuel Adorni, had announced that the removal of subsidies would be implemented as of January 1, in regulated public services such as gas and electricity, public hearings need to be held with the participation of different sectors; and The administrative process that opens following the hearings takes at least 30 or 40 days. In addition, regulatory entities must prepare a report for the increase to be confirmed.
With information from Noticias Argentinas and TN
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