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Electricity and gas rates: how is the user segmentation plan that is discussed in the Government

2021-08-22T01:48:45.373Z


The wealthiest households would pay the full rate, which today would imply increases of 80%. For the middle class, subsidies would follow, tied to inflation. The poorest households would pay only the social tariff.


Martin Bidegaray

08/21/2021 18:40

  • Clarín.com

  • Shows

Updated 08/21/2021 6:40 PM

For months, the government has been internally discussing a plan to modify the allocation of

energy subsidies

.

The Minister of Economy, Martín Guzmán, attributed to these subsidies a

“pro-rich”

bias

, that is to say that it favors higher-income households 

and heated up a debate that takes place inside the ruling party.

The

freezing

of rates is one of the campaign slogans of the Frente de Todos.

The budget reflects this:

no spending grows faster than energy subsidies

.

In June and July, they rose twice as much as in 2020. This year they are on track to approach

$ 900 billion

.

The subsidies so that they do not raise the rates scale at a rate that the increases to retirees or social plans do not have.

One of the ideas that circulates within the Government is to

divide the subsidies into three groups

, which could be called thus, roughly:

“well-off”;

"Middle class" and "underprivileged sectors".

The first segment represents between

10% and 15% of the population

and are the sectors with the highest purchasing power. There, internal government lines suggest that they are in a position to pay the

“full” rate

. In other words, from 2022, they should face

increases of more than 80%

compared to now, in addition to next year's inflation.

The second category is

"middle class

.

"

They are middle-income segments, which

cover the basic baskets, but which are not comfortable either.

There, the recommendation would be that they pay increases in line

with the rate of inflation

, starting next year.

Unlike the "affluent" sectors;

they would continue to receive subsidies to cover half their bill or even more.

Then there is the

"social rate".

It would be assigned to all households mired in poverty, which are

more than 40% of the country,

although not all have connection to electricity or gas distribution.

There, the government's idea is

zero increase

.

In other words, continue to subsidize everything or almost everything.

The implementation of this plan motivates

debates in the ruling party

. On the one hand, there is Minister Guzmán. On the other, the "Federicos".

Federico Basualdo,

as undersecretary of Electric Energy, and

Federico Bernal,

controller of Enargas (gas regulator). The Secretary of Energy,

Darío Martínez

, has no interference in tariff matters. He wanted to have it, but Basualdo and Bernal have the support of Vice President C

ristina Fernández de Kirchner

and that makes their voices predominant.

The partial removal of subsidies requires

“fine tuning”

.

Fernández de Kirchner announced it at the beginning of his second term, but was unable to specify it.

The main fear of the ruling party is that middle sectors will receive rate increases that are designed for "high" income households.

"There will be rate increases in 2022.

But the indication is that they cannot be interpreted as

'great rates

' in the media," says an official who worked on the issue.

"If we manage to apply the rates well to the wealthy sectors, there should be no problems," says another official source.

Companies and the Government claim that there are databases that allow

"georeferencing" to work

.

In principle, this is to remove subsidies in "affluent" neighborhoods (Puerto Madero, Recoleta, the most exclusive areas of the northern suburbs).

However, pitfalls can appear in that zoning.

The ownership of public services is not always in the name of the user.

Retirees and pensioners who reside there also complicate this task.

The

Anses register

can be used to assign these subsidies.

But in the ruling party they want to be very careful.

“An error in the removal of a subsidy and the opposition will say that it is a 'great rate'.

We are going to be prudent to ensure that it is impeccable ”, reason within the Government.

While gas rates increased 6% nationwide, electricity distribution rates rose 9% in Buenos Aires.

The State already pays 7 out of every 10 pesos for electricity bills.

The electricity and gas distributors demanded increases of 50% for this year, which were not granted.

“The budget had implicit rate

increases of the order of 35% in order to meet fiscal goals.

That was approved unanimously in the National Congress, even by the governing coalition, ”explained specialists

Julián Rojo and Alejandro Eintoss

in a paper.

The recompositions assigned so far have only been for the distribution companies and their margins.

But

costs continue to escalate

and there is a delay of 80%, at least, according to these specialists.

The government still has the possibility to increase rates after the elections.

In the case of gas, it could happen if Minister Guzmán entrusts this task to the comptroller Bernal.

In the light, it seems more distant.

"If these increases did not occur,

the year would end with a subsidy account close to 10 billion dollars

, a dynamic already observed in 2011 and that puts us at the gates of a second wave of subsidies, but without resources to finance it. .

Look also

Electricity rates: in the interior they pay up to 3 times more than in Buenos Aires

Vaca Muerta: claim that the gas reaches Misiones first before being exported to Brazil

Source: clarin

All news articles on 2021-08-22

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