The associations of Consumer defense prepare to ask the Minister of Economy, Martin Guzman. The official advanced a new increase in electricity and gas rates, scheduled for June, and instructed the Secretary of Energy to initiate administrative proceedings in that direction, which should be perfected at a public hearing.

Cepis, Deuco, Adduc and other associations requested that this hearing take place face-to-face and not virtual, as happened with the latter, because of the pandemic. And also that Martin Guzmán personally explained the “Obligations assumed by the State of Argentina in the memorandum of Economic and Financial Policies agreed with the International Monetary Fund ”.

The claims of these associations are corresponding to most Christian officials of the energy area. Electric Power undersecretary, Federico Basualdo, has already conducted a hearing that ended with a 20% increase in the city of Buenos Aires and suburbs. Disagree with another increase.

At the end of January, the Secretary of Energy held a public hearing with the aim of reducing subsidies on the cost of gas. The Undersecretary of Hydrocarbons -which is dependent on Energy- presented a report, to reduce them. Federico Bernal -controller of Enargas- is against the withdrawal of subsidies.

Ang Consumer advocacy associations have questioned the position of the Secretary of Energy. Bernal liked those criticisms, also mentioned in vice. And Executive Power has not reduced subsidies.

“It is imperative that the person who leads and reports to the citizens is the Minister of Economy, as he has been the highest authority responsible for the area and head of the one that has conducted negotiations with the international financial organization,” they said. now. Consumer Defense associations in a note addressed to the Ministry of Economy.

Electricity and gas rates rose 20% in March. The Ministry of Economy wants a reduction in energy items. For this reason, it advocates lowering subsidies from Executive Power to cost generation. For this reason, Guzmán considers that the increase in these services should be at least another 20%-22%for most clients, with a total of 42%-44%. Guzman instructions of the Secretary of Energy to gather information to conduct a public hearing, as advanced Clarion.

As proposed by the minister, low -income sectors will pay a rate increase equal to 40% of the variation in the wage variation coefficient (CVS). This is about a last 20%. On the other hand, most clients will face increasing their charges similar to 80% of CVS (this will give between 42% -44% final). 10% of customers with higher incomes will lose State subsidies on the cost of gas and electricity, which is the most subsidized portion of their bills. For that segment, the increase could exceed 200%.

Energy subsidies will be US $ 11 billion in 2021. Russia’s invasion of Ukraine has triggered prices of products that Argentina imports, such as LNG (liquid gas that arrives on ships) and fuels used to generate electricity when there is no natural gas. For that reason, there are specialists who estimate subsidies this year at US $ 20,000 million.

Guzmán provided energy subsidies of US $ 3,000 million, which is approximately 0.6% of GDP. But those numbers are made “at a later time”, when the price of energy products (like gas) is different from the current one. “We are in a different global situation from which these plans are being implemented. This uncertainty must be taken into account,” the minister explained. when he went to legislative committees to defend misunderstanding with the IMF.

Consumer associations that want to raise their voices have always objected to rate increases. They did this during the Mauricio Macri administration and also in some attempts by the current administration, which did not progress in 2021 or 2022.

“We don’t yet know how much they cost to get the gas. The Energy Secretary does not answer that question. We don’t know if the rates are fair and reasonable, ”said Paula Soldi, from Cepis, which typically aligned Kirchnerism with rates, at a hearing that took place at the end of January.