This was announced yesterday evening by the Secretary of Energy, Flavia Royón a gas increase of 28.3% for “high-income” customers, who will receive a one-time 28.3% raise, he tweeted, but did not explain how to get to that number.
Energia will authorize two gas bill increases. One is due to the higher cost of gas itself, i.e. how much households pay for that supply. The other is for distributors, i.e. companies that bring gas to homes, businesses and industries.
The Government had estimated that the increase in the price of gas (it’s called PIST and that’s what the producers are asking for) would be published today in the Official Gazette. But still that post is not available.
“There will be no increases in the value of natural gas for users enrolled in Level 2, whose only annual increase will be concentrated in the transport and distribution components. For their part, users included in tiers 1 and 3 of the current rate segmentation will receive an increase that includes increases in the value of fluid, transportation and distribution,” the official said.
For Argentina to reduce energy subsidies -one of the commitments agreed with the IMF-. an 80% increase is required. That would be the floor for high-income sectors, called N1. They are the ones who have not asked to continue receiving state subsidies, or to receive salaries and have goods for which the government believes they do not need that discount.
N1 customers would pay the full gas price. The Government explained that the resolution on this matter will be published on Friday. But it’s not gazetted yet, so it’s impossible to verify the ad.
“The micro and small enterprises that are in the MIPYME register will continue to be reached by the subsidies, while the large enterprises will have an increase of 28.3%. It is an increase that takes care of the neighborhood businesses, the neighborhood and the growth of industry against inflation”, according to Royón.
In a public hearing, the Government presented several alternatives to eliminate the subsidies. Until now, it had subsidized 67% of the cost of the gas. His intention was to preserve that percentage or reduce it.
Gas distributors also asked for an increase in a public hearing on Wednesday. It was 290% of his income and would translate into a $1,500 final impact on ballots. This is an increase close to 60%. In two weeks, the Government will decide how much to transfer distributors’ orders to customers.
In December, Energía held a hearing to reduce government spending on gas bills. “He presented four proposals in that direction: an increase in the cost of gas paid by households, the incidence of which on bills goes from 21% to 54%.
Royón communicated that the impact on bills due to the increase in the cost of gas is 28%, but no details were provided on how this increase was achieved. It would apply to high income sectors as well as medium sectors. The latter will maintain a block of “subsidized” consumption, but will have to pay the same price as families with greater purchasing power when they go beyond their subsidized consumption. The “floor” for determining the surplus differs by region (higher in cold areas, lower in warm areas).
The increases in the cost of gas and the values that distributors will charge will add to that already applied with the removal of the concessions made with the segmentation, in force in gas since September. Since, the gas bill that was paid $1,605 in June has already gone up $1,000 and would now be worth $2,600. This is not noticed because consumption decreases during the summer months. But if consumption were the same, the sectors called N1 -high income- would pay that amount.
“The three and a half million low-income users who obtained the subsidy for registering with RASE this year will not have increases in the gas value component. The segmentation database is still open and those households that do not require it or have a high income will receive a one-time increase of 28.3%,” Royón explained in a tweet.
NS
Source: Clarin
