Does the fare increase require a public hearing?

The first gas tariff increase by Mauricio Macri’s management stopped by decision of the Supreme Court of Justice. The court ruled that any correction had to pass through the filter of public hearings, even if not binding. This opened up a new question for the ongoing process: Doesn’t the upcoming fix require the same mechanism, from the audience?

The government understands that it is not necessary. But Mauricio Roitman, former president of the gas regulator (Enargas), interprets that this consultation procedure must be carried out.

In the government they understand that this is not a rate hike. That it is a removal of subsidies, for which the need for this process is not such. They also claim that there was a previous public hearing, in which the segmentation and its purpose were reported. There, consumer rights associations said an increase would come.

“The public hearing they already held was for segmentation. But now there is a change in the consumption limits and thresholds, so there are changes with respect to segmentation. This change justifies a hearing, “Roitman points out.

The government has reported an increase in the cost of gas paid by consumers. This is the gas that distributors buy from producers and then bring to customers. This gas is called a “wellhead” or “system entry point” (PIST).

For sectors that lose grants, it will increase by 167%, although the final impact on ballot papers is 100%. It will also increase in that proportion for those who consume above the block they are allowed.

“The public hearing must include all the sections that make up the final bill: wellhead price (PIST), transportation and distribution of natural gas”, we read in the sentence called “Cepis”, with which the Supreme Court stopped an increase in gas tariffs in 2016. The highlighted part corresponds to what Juan Carlos Maqueda condemned.

“Maqueda stresses that no matter whether or not there are market mechanisms for gas purchases, public hearings must be held,” explains Roitman, elected president of Enargas through a competition based on precedent and merit.

“The majority vote was that if the state intervened, it was always a public hearing, for all members,” Roitman points out. “It was not necessary if it was born from a market value, without state participation. But in the current gas supply there are contracts signed under the Gas Plan (a state stimulus to production), so if a hearing is needed, ”he writes.

The Cepis ruling arises from the resistance of consumer associations to the tariff increases proposed by the Mauricio Macri administration. These groups opposed the rate hike when former Economy Minister Martín Guzmán promoted it, in the face of resistance from Kirchnerism. But until now they have not commented on this impulse taken by the new Minister of Economy, Sergio Massa.