Public hearing: the removal of electricity and gas subsidies for the richest will be “gradual”

Explained by the Government, by a public audiencethe criteria you will use in making segmentation of fees. That is, the households that have to pay higher than usual increases -42%- on electricity and gas bills.

The undersecretary of Energy Planning, Andrés López Osornio, explained that it will be applied a reduction in household subsidies which they follow certain geographical and income conditions.

the officer he did not specify how much the increase would be for those houses. This is estimated to be between 100% and 150% in the case of electricity in Buenos Aires. But no mention is made of how much it will reach domestically or in gas concessions. “It is proposed to gradually eliminate these subsidies,” said.

In a clear presentation, López Osornio said that two variables will be used: the location in the polygons of “high income” (the neighborhoods with the highest real estate values ​​in Buenos Aires, the northern suburbs and countries) plus total household income. The latter will be useful internally, he said.

The price of electricity that appears on the invoices is there 82% state subsidy, while the amount of gas in the charges also is 75% subsidized. In winter, this proportion can reach 90%, because more imported gas is used, whose price is higher.

The Government wants to implement segmentation, or eliminate subsidies since Junebut the companies said some complicated to achieve this. Gas distributors (nucleated in Adigas) are warning that they need to at least 8 weeks (2 months) to identify households that will lose subsidies.

The Minister of Economy, Martín Guzmán, has already announced some particular users may pay the “full cost” of the gas and electricity they consume. However, after the rise in energy prices due to Russia’s invasion of Ukrainethose costs increased.

The total removal of subsidies indicates disbursements between four and five times higher than the current. To reduce this impact, the Government is evaluating an increase of between 100% and 150%, according to the documents it administers.

Current subsidies have a “get-rich-quick” bias, according to López Osornio. This is because the 10% of households with the highest income are also the ones who consume the most electricity and gas.

That way, the highest decile of income receives between 15% and 18% of the total amount of subsidies energy, which is US $ 11,000 million in 2021.

Deputy Jimena Latorre, who followed the hearings thoroughly, criticized the segmentation because you think that will end in courtbecause customers will resist the high rise.

Undersecretary López Osornio validated the first segmentation method carried out by Enre (the electricity regulator), which used polygons from high -income geographical areas.

This work was done by Enre together with the Undersecretary of Electric Power, under the leadership of Frederic Basualdo. Since that official and Guzmán could not agree on future rates, did not participate in any of the hearings. But López Osornio – who was responding to the minister – used data from Enre and the Undersecretary of Electric Power.

There are approximately 500,000 households located in the neighborhoods with the highest real estate values ​​in the city of Buenos Aires, along with two of the suburbs (Vicente López and San Isidro) along with the country. That survey, which has existed since the summer, was taken as valid.

To cover the interior, the Undersecretary of Energy Planning added a second criterion, that is revenue. Households earning $ 314,000 per month will lose the subsidy (equivalent to 3.5 total main baskets). That will be more useful indoors.

ownership of three buildings, three cars or boats It will also cause subsidies to disappear, as explained at the public hearing.

That standard would govern both for the removal of gas and electricity subsidies. However, the work carried out so far corresponds to the distribution of electricity (lighting).

NE