The Limited Times

Now you can see non-English news...

Rates: gas distributors ask for increases that would impact between 15% and 25% in the bills


It is for their service, which represents a third of the bill. Next March 16 will be the public hearing.

Martin Bidegaray

03/03/2021 10:10

  • Clarí

  • Economy

Updated 03/03/2021 10:10

Gas distributors will request a

51% -148% recomposition

at the public rate hearing that will take place in two weeks.

But that increase will not go directly to the ballots because that increase will improve their margins and distribution services is only one of the components of the invoices.

Thus, the impact of the "distribution" component could translate into an increase of between 15% and 25% in the most prudent scenario, and it would triple if the regulator agreed to higher increases.

The proposed increase covers until December 2021, due to the emergency.

Since 2022, the companies expect that the comprehensive rate review regime (RTI) has been regularized.

The gas distribution service carves about

a third of the




The largest charge is

the cost of the gas itself

, whose technical name is PIST (Price Income to the Transportation System).

The Ministry of Energy called a hearing for March 15 to define that price.

There will be information on how much the authorities estimate that gas producers will charge.

At that hearing, it will begin to define how much of the price of gas will be transferred to "priority demand", that is to say, to households.

The following day, the Enargas hearing will take place to discuss the firms' distribution margins.

Between what is discussed in both hearings and the authorities summarize,

the final increase

in the gas rate will come out.

It will be the sum of the price of gas and its distribution service.

Metrogas, one of the two distribution companies in the city of Buenos Aires and the suburbs and controlled by YPF,

requested a restructuring of 148%


That would be to catch up on April 2019, when it was

the last adjustment.

That would imply

a rise of more than 45% on the final ballot.

But, in response to the emergency, the company lowers its claim to 58%, waiting to renegotiate in 2022.

The impact on the ballots would be between 10% and 25%,

depending on the source consulted.

In the Government they see it around 10%, but a consultant and former official who is an expert in the sector supposes that this level of recomposition would make the bill more expensive by 25%, just for this concept.

In line with Metrogas,


(Gas BAN), which supplies the other half of the city and the suburbs

claim a maximum increase of 128%

and a minimum of 51%.

"It would impact on the final bill of customers in about a 15% increase, on average," according to that firm, if they grant the 51% that it offers as part of the effort.  

Beyond the minimum and maximum prices, the distributors propose two other variants to the Executive Power.

One is to apply increases in variable charges (consumption) and not so much in the fixed charge, and the other option is the other way around: leaving a higher fixed charge (for the rate category) and less weight for consumption.

If the public hearing supports it, the final impact on the bills will be

between $ 102 per month for 52% of Metrogas households,

always around distribution.

31% of customers would pay between $ 140 and $ 160 a month more than now, to which you must add taxes.

Another 14% of customers would pay between $ 400 and $ 784 a month more.

And the 3% that consume the most gas will experience a higher cost of $ 1,500 per month, according to Metrogas.


Look also

What about the dollar and fees after Alberto Fernández's swerve?

Rates: the Government talks about pesifying but already has committed payments in dollars

Source: clarin

All business articles on 2021-03-03

You may like

Trends 24h


© Communities 2019 - Privacy