Martin Guzman, Minister of Economy
By the end of the year, the values of electricity and gas bills will triple for higher-income families. The Ministry of Economy has announced that it has ordered the implementation of the “segmentation”, or the removal of subsidies 10% of the population with the highest income.
Those customers will pay the “full cost of the energy component of the respective service ”, reported the Legal and Technical Secretariat.
This implies that a family has paid a $ 2,000 a month bill for electricity will pay more than $ 6,000 (about $ 6,400), according to estimates made by consultants and which also circulate in government offices. The same would happen with gas bills.
The increase will be between 210% and 220%, according to specialists, which implies that final bill amounts will triple by the end of the year. As announced, the new values it will apply retroactively in June.
Although it announced the measure, the government left several issues pending over its implementation. As reported, the removal of grants will take place in three stages.
“Users who will be responsible for the entire cost of the energy component of the respective service, by virtue of the meeting at least one of the following conditions, Considering family members as a whole: net monthly income exceeding a value equivalent to 3.5 Total Basic Food Baskets (CBT) for a 2 household according to INDEC, “the government reported. This represents an income of $ 330,000 per month.
In addition to their income, the removal of the subsidies will affect owners of three cars under the age of five, owners of three properties or owners of a “luxury plane or boat”. Also to “holders of corporate assets who show full economic capacity”.
Those who understand that they must keep the benefit must register with a base and apply for it.
However, there has remained a lot of confusion in the government over implementation.
In principle, the Undersecretary for Energy Planning – who reports to the Secretary for Energy – it must “identify” the households and / or users whose income justify the removal of subsidies. From there, ask the Secretary of Energy to pass on the increases.
The Undersecretary for Planning is Santiago López Osornio, identified with the Minister of Economy, Martín Guzmán. But the implementation will have to be entrusted to Darío Martínez, the Secretary of Energy, who oscillates between Guzmán – his boss – and the more Kirchner officials, who are reluctant to these increases.
Clarione He consulted several specialists on the extent of the increase. The majority who indicated it in something more than 200% asked not to be identified. The sources of the executive power also had the same calculation of the increase, between 210% and 220%.
“Everything will depend on whether they take the annual average of the supply cost or the current one”, explained Juan José Aranguren, former Minister of Energy between the end of 2015 and the middle of 2018. “Likewise, we have to see what kind of exchange they will choose: the current one or the average one. Things get complicated when it comes to electricity in non-federal jurisdictions. We will have to wait for the decisions of the demand authority referred to in article three of this decree to see what further increase this year corresponds to those of level 1 “, said the former official, current head of the consultancy firm Energy Consilium.
The current increase will only impact households with higher incomes, i.e. between 10% and 15% of the population. The remaining 85% will no longer have the increases received so far: 40% for the majority of users and 20% for beneficiaries of the social rate or pensioners.
Martin Bidegaray
Source: Clarin
