Aysa asked for a 138% rate increase, but Caputo refused so as not to overheat inflation

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The Minister of Economy, Luis Caputowants to balance with the rate increases of public services so that the market believes that the inflation is slowing strong and will return to a monthly figure in the second quarter.

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Here because, rejected the proposal of the public company Agua y Saneamientos Argentina (AySA) for a 138% increase in water and sewerage services in the city and Greater Buenos Aires. Previously, the minister had postponed gas increases to mid-March or early April, although he had authorized an electricity adjustment starting this month.

The company operating in the Buenos Aires metropolitan area (AMBA) will have to send this Friday to the Ministry of Economy another tariff scheme for 2024 and lower its costs.

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To meet her expenses, Aysa obtains income from tariffs and subsidies provided by the national state. Therefore, if you do not get the Government to enable your offer, You will have to postpone investments in maintenance and reduce unnecessary expenses.

The cost of water

The first proposal, presented to the now vacant Ministry of Infrastructure – which contains the Ministry of Public Worksformally responsible for this service, established that average tickets would range from approximately $6,400 to $15,200, but this needs to be rethought.

Aysa estimated that at December 2023 values, resources of approximately $602,437 million would be needed in 2024, including operating expenses (opex) for $455,446 million and improvements and maintenance (capex) for 146,990 million dollars. But the expected tariff revenues, if there were no new increases, would amount to 253,518 million dollars and would cover 42.1% of the total costs. That is, the remaining 57.9% would have to come from subsidies or get a 138% tax rate increase in order not to depend on the country’s money.

However, not having enough revenue, the state water and sanitation company will have to reduce expenses for the improvement and maintenance of the network, as well as design a new scheme for its operation.

Aysa’s tariffs are controlled by the Water and Sanitation Regulatory Agency (ENRE), which in turn falls under the orbit of Public Works, responsible for Córdoban Luis Giovine.

Like his compatriots Osvaldo Giordano, from Anses, and Franco Mogetta, from Transport, the secretary of Public Works was frozen by Javier Milei’s fight with the governor Martín Llaryora after the failure of the “omnibus law”. And Guillermo Ferraro’s exit from Infrastructure has left a pseudo anarchy in the portfolio, which Caputo now manages directly but without dialogue with officials.

Source: Clarin

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