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Due to the subsidy cap, another five million households will receive an increase in their electricity, gas and water bills

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Due to the subsidy cap, another five million households will receive an increase in their electricity, gas and water bills

Serge Massa,

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It will be increases in electricity, gas and water tariffs in addition to those already announced. This was announced by the Minister of Economy, Sergio Massa. The measure will have an impact on 9 million homes who consume those services with heavy subsidies.

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The increase in the electricity bill will include the Consumption exceeding 400 KwH per month. This includes the four million households who will lose their grants – because they haven’t signed up for the grant register or declared “high income” so they can afford the costs – and another five million who will continue to maintain state aid, but with a ceiling.

Even if Massa did not specify it, the subsidy would only have been maintained low consumption families. In Buenos Aires, they are the fare categories known as R1, R2 and R3 Of electricity. For the rest that has been noted in the subsidy register, they will continue to have a base (of 400 Kwh) at a lower price, but they would face a higher cost for the rest of their consumption. A company estimate explains that an average invoice – less than $ 2,000 – it could go up in the $ 5,500 / $ 6,000 range, at least in the summer.

This decision by Massa clashes with Kirchnerism’s view on tariffs. Front of All specialists argue that households with lower incomes do not have access to the natural gas network. And which are heated with appliances. In this way its consumption is high and it should continue to be taken care of.

There will also be higher gas tariffs. Massa refused to explain it, although he made it clear that there will be an analysis by region. An industry-managed quote is that of a block 500 cubic meters per year. And, from there, apply larger amounts to tickets. The “annual” view of consumption predicts that demand will increase a lot in winter. “Cold zones” (such as Patagonia or other places with temperature) could start with a higher subsidized block.

Aysa, the water company of Buenos Aires and suburbs, had predicted an increase in bills of 32% in two lots. Massa has announced that it will apply segmentation there as well from September. This implies that the company – whose owner is Malena Galmarini, Massa’s wife – will be able to have higher tariff schedules for middle and high income families.

The Minister of Economy has closed the “segmentation”, even if there are families who are still enrolling. According to their data, there are four million families who are not in need of subsidies: are the ones who have not signed up or, in doing so, they reported a high income (of $ 348,000 net monthly, ownership of three properties or three cars). The rest – -10 million households – will receive a portion of the subsidies.

There’s a transform into an official policy with tariffs. The Secretary of Energy, Darío Martínez had announced that families who will continue to receive subsidies they would keep the amount of the ballots until the end of the year. Massa goes in another direction: customers will keep the subsidies, but up to a limit. After there, they will have to pay more for their tickets, even if it wasn’t detailed. The official definition passed from the maintenance of benefits for the medium-low sectors, to the maintenance of aid only for a certain amount of consumption.

Middle class, which predominates in the R4-R5-R6 tariff categories (consumption exceeding 400 KwH) will have to deal with bills higher than those that have arrived paid from 2019 to today.

The national status assigned 11,000 million dollars in subsidies for electricity and gas costs in 2021. Due to rising energy prices, this amount could increase $ 15 billion this year. Massa intends to reduce this amount. The extent of the tax savings will only be known when there are new rate charts.

Distributors will be able to charge customers a greater percentage of the cost of the electricity they consume, according to Massa’s claims. The former deputy is a friend of Daniel Vila and José Luis Manzano, shareholders of Edenor, one of the two companies that bring electricity to homes in Buenos Aires. The other is Edesur.

Galmarini – owner of the Aysa- had announced that he would ask his regulator for a “segmentation of tariffs” for water.

“To the extent that the Aysa tariff does not increase at the rate of inflation, the coverage of operating expenses is reduced through the own income deriving from the billing of the services provided. And, consequently, the need for subsidies from the National Treasury increases through current transfers “, reads a video of his presentation.

The collection of taxes allowed him to face only 35% of the costs. You will now be able to recalibrate from the “segmentation” application.

Source: Clarin

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