Natural gas distributors and transporters will present their proposals this Monday of increases in public service tariffs, in a public hearing to be held starting at 9 a.m. and virtually, and that it will be the starting point for a series of monthly adjustments from which it will begin to be applied “February or March“.
Public hearing 104, called by the National Gas Regulatory Body (Enargas) a with resolution 704/2023, Exhibitors representing distribution and transport companies, sector associations and chambers, user and consumer protection bodies, legislators and mayors will participate. There will be at least 124 exhibitors.
According to the event program, the first exhibitor assigned will be the Minister of Energy, Eduardo Rodríguez Chirillo; which will be followed by Martín Vauthier, representing the Ministry of Economy.
Among those registered is the former Minister of Public Works and current head of Infrastructure and Public Services of Buenos Aires, Gabriel Katopodis, among other exhibitors.
If all members spoke and used the time available, the hearing could be extended for at least one more day.
The notice specifies seven points to be addressed, among which the “determination of a monthly update index of the tariffs of the public natural gas transport service and the public gas distribution network service” stands out.
In this way, the the increases will be made gradually during 2024, in a manner that could be extended for another two years, if we take into account that Caputo claimed that the reduction of subsidies for public services (among which the main ones in terms of amount are energy services) will be implemented gradually over the course of the three year old.
The remaining six points are:
- The temporary adjustment of the tariffs of the public natural gas transport service.
- The temporary adjustment of the tariffs of the public gas distribution service through the networks.
- The transfer into the tariff of the price of gas purchased according to the terms of the Basic Rules of the Distribution License.
- The treatment of the incidence of the cost of rental and/or transport of Liquefied Petroleum Gas (LPG) with respect to the locations supplied with diluted propane/butane gas by the networks.
- The treatment of the impact of the price of gas on the cost of unaccounted for natural gas (NCNG).
- The reversal of the Northern Pipeline.
The new demand subsidy regime will contemplate the most vulnerable sectors a consumption threshold to be defined -both in gas and electricity- from which all surpluses will be invoiced at the full rate.
“The cut in subsidies is 2 points of GDP, more or less 40% of the deficit. In energy we cannot say how the tariff will end because we are moving towards a different scheme, with a business optimization scheme. The application will be subsidized. Instead of giving to companies, we will help those who have less,” Caputo said.
Although proposals for tariff adjustments have been made exceed 350%it must be taken into account that the public hearing is not binding, i.e. the The Ministry of Energy may or may not consider these requests.
The choice to apply a monthly update index clarifies that the increases will not be made all at once but gradually.
SN
Source: Clarin
