The economy tries to raise tariffs from this Thursday: because it will be difficult for it to arrive in time

The Secretary of Energy has promised that, starting from Thursday, the new electricity and gas tariffs. They will reflect the removal of benefits for some customers and the reduction for others. This situation will result in a 100% increase in gas bills and between 20% and 200% in electricity bills.

The electricity distributors (Edesur and Edenor in Buenos Aires) and gas distributors (Naturgy and Metrogas are the ones that distribute the AMBA) have not yet received the communications on which new tariff schemes will be applied. They also have no data on the implementation of segmentation.

The bills with the corresponding consumption in September should already have adequate values ​​with the removal of subsidies. Anyway, only those cards will be charged in October.

Both companies in the sector and experts in the energy sector explain this the Government has not yet defined five fundamental steps, which has to give this week. Energy officials explained Clarione that on “Monday” there will be definitions. But until that happens, here are the unknowns:

1-Notification of cancellation of grants

There are 3.5 million households who will keep some subsidies, but lose others, in electricity. The figure reaches 2.6 million customers in the case of natural gas through the networks. The Secretary of Energy has already defined who these customers are. Now it is necessary to notify the regulatory bodies (Enargas in gas and Enre in electricity of the AMBA) of the names of those customers. You must also report families who will no longer receive state subsidies, because they did not apply for them.

Edenor and Edesur must identify customers who lose full or partial subsidies in their records. There are 4 million families who have not been registered in the subsidy register. In principle, the Minister of Economy -Sergio Massa- considered that all those customers disavowed the subsidies. But the energy sources then specified that there could be families without access to the technology – and who could not go to ANSeS to complete the registration of subsidies – who would continue to receive subsidies.

Lower-income families will keep the benefits. Conversely, those with middle income (earning between $ 100,000 and $ 250,000) will lose a portion. With a gas bill of $ 1,600 (typical consumption) they will pay $ 2,400. Instead, for those who lose benefits, that bill will be $ 3,100.

The government has set limits which will continue to be subsidized. From there, you will have to pay the full price. In gas, a schedule of regions and customer classes was drawn up. In electricity, a “full” price will be charged for consumption above 400 kWh.

2 – The new invoice values

The Secretary of Energy has already determined the new gas price on the invoice. It’s called PIST (point of entry into the system) and was 80% subsidized. The Undersecretary for Hydrocarbons must now notify distributors what the applicable tariff will be, should it be based on that. The value of the gas will grow by 167%. But since it is only one of the three costs on the invoice (the others are distribution and taxes), the impact will be 100%.

The situation is much more complicated in electricity. Cammesa, the wholesale administrator of the electrical plant, told distributors that they should pay more for electricity: about $ 5,400 on $ 15,000, which is the monomic cost, the value used as a parameter. But this notification has not yet been formalized.

Should distributors must reflect a 20% increase in costs through their invoices. But again, each province has different rules. The regulation of electricity distribution is provincial. Except in the city of Buenos Aires and the suburbs, where it is national.

Edenor and Edesur will receive new rate charts. They are the ones that will reflect the loss of subsidies plus an increase in the cost of electricity itself (it’s called PEST). The Under-Secretary for Electricity is promising them for this week.

3 – Combining the removal of subsidies with new pricing schemes

Distributors must upload data from three categories of customers: those who lose the subsidy, keep it partially, or keep it completely. Among the 4 million who have not “registered”, there are thousands of families who will support them. They are the ones who have a minimum income and who have failed to register. The question is whether the state will identify them in the next few days. Or he will send them to distributors on the same list of customers who have renounced grants because they claim to have financial solvency.

Then, along with this information, you need to upload the rate charts. It is estimated to be a complex task in terms of loading data. In addition, there will be blocks on the consumption of electricity and gas which will continue to be subsidized, but “extra” charges for surpluses. In electricity, when 400 kWH is exceeded, the surcharge will be paid at a price without subsidies. In gas, it changes depending on the area: in the colder areas of Santa Cruz, consumption is 11 times higher than in Buenos Aires.

In gas, the new amount – above the surplus – is 167% higher than the previous one. The subsidized consumption will be an annual block. It is estimated that the government will communicate what part of that block can be consumed month to month. Residential gas demand is low between November and March, but rises in April and rises in the cold months. The government’s management of subsidized blocks is still unknown.

4 – The need for public hearings

The increase in gas tariffs in 2016 became uneven due to a ruling by the Supreme Court of Justice. There it was stipulated that the changes should go through a public hearing process. Beware of this situation, there will be public hearings for the gas price increase. The increase will be 167%. The official intention is to pass this situation through a non-binding consultation. Consumer protection associations have requested it.

In the electricity distribution (light) there will also be a variation in the values ​​paid by households. But the government has not yet decided whether or not to enable hearings. Some important definitions are missing in the light. In Energy they promise they will materialize this week.

5 – Errors, setbacks and clarifications

Consortia will lose their electricity subsidies, as will other so-called “general” customers. The Ministry of Economy rejected this situation. But later they admitted to only contemplating consortia classified as residential, which are those with few units. Instead, “general” users will keep gas subsidies. It is out of fear of the government that bakeries complain about “tariffs”. Buildings will benefit from the benefit that those working with the use of gas will keep.

Neighborhood clubs or school picnics will keep subsidies. There was a statement from the Secretary of Energy, Flavia Royón, which was misunderstood in this sense. They asked about “general” users and neighborhood clubs. The official replied on behalf of the generals, implying that the same thing happened to them as to neighborhood associations. Then it cleared up.

The government also announced that grant registration will remain open until the end of the month. This happens with online applications. But several people turned to ANSeS and failed to complete the process. They were told that this window expired on August 12, although the social security agency continued to work shifts.

All these reverse gears allow for the possibility of making corrections. The government has problems defining which homes are all with access to the electricity grid. According to the Executive, it is because there are many cooperatives and small companies that provide the service. Energy requires the collaboration of the provinces which is not yet functioning, according to industry sources