Tariff segmentation, which implies the removal of subsidies to electricity and gas costs, will affect the “Decile of greater economic capacity”, as explained by the Secretary of Energy, Darío Martínez. “For 90% of service users of electricity in the AMBA, the impact of segmentation will be zero, “the official said at a conference.
At this stage, the removal of grants will apply to the higher income segments. According to the decree that went into effect in the process, they are those who have a monthly income for $ 350,000, three cars or three properties. YesIt is estimated that it will reach 10% of families. According to an estimate by the Ministry of Energy, there are 920,000 customers in the supply of electricity and 760,000 in gas.
Electricity and gas bills increased between 40% and 42% for most customers. It was in two increments, in March and June. The lowest income segments, or beneficiaries of a social plan, only had a 21% increase.
“The government’s goal is that grants in Argentina are used more efficiently and intelligently,” explained Martínez, presenting the registration process together with Cammesa’s vice president, Santiago Yanotti, and the Secretary appointed for Energy Planning, Gonzalo Soriano. Yanotti is from the kidney of Martínez, while the brand new Soriano arrives with the political endorsement of Yanotti.
“The government is moving towards more equal and equitable access to energy services for Argentines, concentrating subsidies on those who need them most “Martinez pointed out. 90% of families are in the middle and low income bracket, so they will continue to receive the benefit.
The executive branch requests that all families be entered in the grant register. It merely estimates that it will not be necessary for those who believe they meet the conditions for the increases to be removed. The government also stated, in unofficial statements, that homes where a beneficiary of social or state assistance plans resides should not be registered. When the Secretary of Energy crosses the data with the income system (Sintys), he will identify the families and keep the subsidies, according to Energy.
Registration activated today for users of natural gas and electricity services to maintain or access a reduced rate, organized by date bands from today to the end of the month based on the termination number of the DNI (see page …) a measure framed by the government’s goal of “using subsidies in Argentina more efficiently and intelligently”. According to Martínez, the tax savings this year due to the removal of subsidies will reach 15,000 million dollars.
By 2023, the tax relief is projected to be around $ 80 billion. This is because the electricity-intensive summer will show higher rates for the highest income decile.
The enrollment in the form of subsidies to the medium and low segments – which will keep them – suggests that the “segmentation” may evolve next year and reach more customers.
Cammesa, the wholesale operator of the electrical system, charges all distributors the same cost for the supply. Then, the distributors in each zone add a margin (called “distribution added value”). For this reason, Córdoba and Santa Fe have higher rates than Buenos Aires. It is because their regulatory entities have approved ticket increases.
If subsidies on electricity and gas costs are removed from the top income decile, it is assumed that distributors will no longer have a subsidy in that line. They have to pay the full cost. And transfer it to ballot papers.
Martin Bidegaray
Source: Clarin
