The Secretary of Energy, Darío Martínez, and the Undersecretary of Electricity, Federico Basualdo
The removal of subsidies for electricity and gas bills, made official Thursday by the government, will be aimed at people with higher incomes than initially estimated. The decree that whitened the removal of the grants, the consequence of which will be an increase in tickets, on Thursday reached family groups with a monthly income of $ 333,000. That was the equivalent of 3.5 total basic baskets (CBT).
But that indicator will change next Tuesday, due to inflation updates, which will increase the value of the base basket. And it will reach the equivalent of 3.5 total base baskets (CBT). $ 350,000. In other words, the removal of benefits will affect family groups whose income reaches $ 350,000 rather than $ 333,000, as estimated Thursday, at the time of the decree’s publication.
The removal of subsidies has already been in effect since yesterday, for which electricity and gas distributors could begin charging tariffs without consumer subsidies starting in June, according to official sources. However, companies support it they need to know the directions of their regulatory bodies to remove the benefits. They should be informed on how to implement the new rate charts.
Families who want to keep benefits must fill out a form that will be valid from next week. The government already owns it, but hasn’t made it public yet, which will happen after the holidays. If the customer of a home you have less than $ 350,000 in income in June and fill out the form, you could keep state aid.
All families in need of government assistance will need to fill out a form. Families with an income of $ 350,000, three cars, or three properties will lose benefits and you will see increases. The rest must be filled in, without exception.
The government plans to effectively remove the subsidies to families with incomes over $ 330,000 that were in effect on Thursday when the decree was published. But if the inhabitants of a dwelling fill out the form next week and claims to earn less than $ 350,000, you can keep the benefits. It’s because that income statement will be processed in the systems when the floor (the equivalent of 3.5 baskets) is already worth $ 350,000.
If you don’t even fill out the form, the government will take the $ 330,000 income that was in effect Thursday as a “plan” to remove the subsidies as a starting point. But for those who meet the official requirements – and are willing to show they need state assistance to pay their bills – attention will be paid if they claim to be making less than $ 350,000, because the update will go into effect next week.
The removal of subsidies this year will only be effective for the 10% of the population with the highest income. But the middle and lower sectors, who don’t make $ 330,000 or $ 350,000, have to complete it anyway. During this year they will not have further increases, except for the 42% announced so far.
The impact of removal subsidy on utility bills is still a sticky area. The Energy Department estimates it will be $ 1,500 in the next average electricity bill. But companies believe that – if the regulations are respected as dictated – the update will be superior and tickets will be tripled, at least in the distribution of electricity.
But, in 2023, the state will consider whether they need to continue to keep the benefit, so it needs to have this information from users. The beneficiaries of social plans or other state aid are already identified, and will continue to be heavily subsidized, even if they do not fill out the form. But the middle sectors, which do not benefit from any state aid, will have to complete the government prescriptions.
How household income will be calculated also raises concerns among households. The government intends to calculate the income of all components of a home. For example, in the case of a couple, they will take the formal worker’s declared income, and if the other is self-employed, they will be assigned the average income of their category on that tax return.
The income of self-employed workers is variable, but they should be below a certain degree depending on the category they are enrolled in in the AFIP. From there an “average” will be taken and added to a formal worker’s salary, which is declared. That number will allow the government to determine if they reach the $ 350,000 needed to remove the subsidies.
But if the Executive Power makes a calculation of the income of a family that its members consider wrong, the registration to keep the benefits will be the possibility to upload the information and modify it, in order to preserve state aid.