Gas distribution and transportation companies They have asked the government for tariff increases of up to 500% starting February 1 and a monthly update system. The requests were submitted to the gas regulator (Enargas) on Sunday ahead of a public hearing on January 8 to define the new “transitional” tariff tables.
Metrogas, the distributor of half the city of Buenos Aires and suburbs, indicated in his presentation that he needs a 376% recomposition.. The company explained that the adjustment takes place over a period of time from 2018 to December 2023, where the rate was “frozen”, without counting in the calculation of “palliatives” in March 2021, June 2022 and May 2023.
The proposed increases mean that residential users with lower consumption in the three categories (R1, R2 and R3) will pay a bill of 4,318 dollars and those who consume more will pay 19,333 dollars, according to the average consumption currently recorded. More than half of customers fall into the R1 category, the one with the lowest consumption. In small and medium-sized businesses and industries, the fixed rate will be between $10,903 and $41,215, depending on consumption.
The other AMBA competitor, Nature, thoughtful increases from 438% to 639%. On invoices they represent amounts ranging fromfrom $4,555 for the R1 category e $20,809 for R3-4, which are the most consumed. According to the company, the impact for a typical customer is in $5,416 per month, since the medium category (R2-3) represents 70% of the total residential customers.
Gasnea reported a delay in rates of between 437% and 703%, Gasnor reported a delay of between 438% and 704%, Camuzzi Gas Pampeana requested an average increase of 421%, Southern Gas Transporter (TGS) requested an increase of 567% to cover the delay from March 2019 to December 2023 and Ransoms stated that it requires an average adjustment of 481%.
The companies proposed these adjustments as “transition tax” until there is a more complete and comprehensive review of tariffs in 2025. In addition to this recomposition from February 1st, distributors and transporters have asked monthly updates based on the General Wholesale Price Index (IPIM) published by INDEC.
The last complete overhaul was carried out in April 2017. Then, in April 2019, Mauricio Macri’s management froze the planned increases. The Government of Alberto Fernández declared the emergency law suspending the global review, a scheme of temporary increases was authorized (2021 and 2022) and from September the increases concerned the removal of subsidies at the cost of gas.
Since last week, Javier Milei’s government has declared the energy emergency until 31 December 2024 and ordered that a scheme of temporary adjustments be defined during this period until the negotiation of the overall revision is completed. In this context, Enargas has called a public hearing to analyze the tariff increase and a new monthly update system.
The regulatory body listens to proposals, evaluates them and makes its decisions. That is, the opinions of audience participants they are not binding. The electricity regulator (ENRE), meanwhile, has yet to convene the hearing to define the respective tariffs. The Executive extended the intervention of both organizations without designating the respective authorities.
The Secretary of Energy, Eduardo Chirillo, met last week with the executives of gas companies, a market in which two transporters and nine distributors owned by seven business groups operate. “The meeting was a presentation and we proposed to update what we have lost due to inflation since the last formal increase,” they explained from a company in the sector.
Today the gas bill is made up of 41% of the production value or wholesale price (PIST), 11% of the transport value, 24% of the distribution value and 24% tax.. What is subsidized is the production price paid by the oil companies. Then, distributors and carriers purchase the gas and pass that cost onto your bill, along with other services, including taxes.
According to the IIEP Tariffs and Subsidies Observatory (UBA), In December the State covered 67% of the costs of supplying electricity and natural gas to domestic users.. The average bill in the country for an N1 (high income) gas user this month was $5,043 per month, for an N2 (low income) it was $2,325 and for an N3 (middle income), $2,690.
The Minister of Economy, Luis Caputo, seeks to reduce economic subsidies (energy and transport) from 1.7% to 1% of GDP in 2024. Real energy subsidies decreased by 22% accumulated in December, growing at below inflation. Caputo is negotiating with the IMF a new framework with tighter limits to reduce subsidies and achieve fiscal balance next year.
Source: Clarin
