Removal of subsidies: how is the new segmentation that Sergio Massa will apply to gas, electricity and water going?

While the definition of who will occupy the Energy Secretariat has been completed, Sergio Massa continues with the measures affecting the territory. The main one, for now, is the removal of subsidies for consumption exceeding a certain limit (so far only electricity is known, which will be 400 kw, but It is necessary to define the one for gas and the one for water) of those who have signed up for such aids.

Hence, there will be two ways to lose benefits. One is the targeting you advertised that didn’t launch Martin Guzman and that Silvia Batakis completed with the launch of Registration form.

there is three groups: the “social”, with incomes below the basic basket ($ 104,216.80 in June); the middle, with income between $ 156,325.2 and $ 364,758.8, and the high income, above $ 364,758.8. The first two had to keep the subsidies e the third would lose them.

But now Massa added a new cut: in the middle income bracket they will also lose subsidies those who consume more than 400mW per month.

The minister’s announcement generated some Doubts which they then tried to cancel from Economics.

Here are some details of what Massa wants to apply as early as September:

First, all those who they did not ask to keep the help in the Register of Access to Energy Subsidies (RASE). As of Monday, more than 9 million families were registered. Registrations remain open but a first phase has been closed to make the initial cut. There are 4 million people who haven’t signed up.

In a second step, those who have signed up and asked to keep the grants will have a second cut: whoever pays the social rate will continue as before. And the rest of those who receive a benefit but don’t have a social rate will have a limit by which they will lose that benefit.

The limit for the case of electricity will be 400 kilowatts per month. Anyone who exceeds this consumption will pay the full rate on the excess. For example, if you consume 401 kW, you will pay 1 kW without subsidy. And if you consume 500 kw, you will pay more for the extra 100 kw.

An annual average will not be made, but consumption will be taken month by month.

The fact that the subsidized user consumes more than 400 kW will not take him out of the grant base. “The idea is to have progressivity in terms of income and promote energy saving”, say close to Massa.

According to the accounts of the Economy, 80% of the population consumes 50% of electricitywhile the richest 20% of the user group consumes the other 50%.

How much will the increase be?

I still don’t know for sure how much will the increase be with the removal of subsidies. On Tuesday, the Ministry of Energy announced the new natural gas tariffs that will be applied to residential users of the network service that will remain without subsidies according to the provisional adjustment established by the Government, between 1 June and 1 October. .

The fare re-composition varies according to the area. In some cases it reaches 167%.

The increases will be paid in three installments and will be retroactive in June. The The December invoice will be the one that will reflect the new amount.

The resolution defines, for example, that a family in the orbit of Metrogas that loses subsidies and that today pays 10.05 pesos per cubic meter (m3) of gas, will pay in the first step (of the three foreseen) in which the subsidies will be reduced by $ 13.41 per m3; $ 18.60 on the second pass, and finally, you’ll pay $ 25.80 on the third. That is, more than 150% today.

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