Despite the new decree sent by the Ministry of Economy, Governor Quintela maintains his economic policy of not applying the increase to protect the workers’ pockets.
18:19 | Friday June 14, 2024 | La Rioja, Argentina | Fenix Multiplatform
Through Decree 465/2024, published in the Official Gazette with the signature of the Minister of Economy, Luis Caputo, a gradual removal of electricity and gas subsidies was made official starting in June, for the low and medium income segments, the which represent seven out of ten residential users. Furthermore, based on resolution 90/2024 of the Ministry of Energy, it was indicated that limits will be established on these subsidies. Given this panorama, the governor of La Rioja, Ricardo Quintela, announced within the framework of the visit to paving works in the 26 de Mayo neighborhood that the province will not apply the new increase in electrical energy,
In this context, the Rioja president stressed that this decision is only taking place in La Rioja. “It is the only province that did so, we have had a conversation with mayors, deputies, with the mayor of Capital and with the entire Cabinet, to make a decision of these characteristics,” he indicated, adding: “By virtue of that, we “We have made the decision not to apply the new tariff schedule that is in force.”
It should be noted that the decree signed by Caputo provides for a transition period that will last from June to November, with the possibility of extending it for six more months, until the application of the Basic Energy Basket (CBE). On the other hand, it should be noted that, until 2023, there was no limit on what surplus was consumed in the N2 category (low income), maintaining this characteristic even during the first increase in 2024. However, as of the new decree, low-income users will be subsidized up to 350 KWh per month, and the surplus in energy use will cost from $2,900 to $57,214. In this way, the lowest-income user will have 350 kw at a value of $25,000 per mega, while consumption that exceeds 350 kw will be at $57,214, which translates into an increase of 1,820%.
On the other hand, the N3 user category (intermediate income), which in the previous table enjoyed up to a consumption of 400 kw, with a differentiated price of $3,750 within that subsidized band, will now see the consumption limit reduced to 250 kw and with a value of $25,200 per mega.
As stipulated, there will be another increase that will take effect in August, September and October. Although we will have to wait to know more details, the trend indicates that, in the last quarter, there will no longer be any type of subsidy for any of the categories of users.
A present state
In May, through a decree promoted by Governor Ricardo Quintela, La Rioja became the only province in the country that managed to stop the brutal increase implemented by the economic policies of President Javier Milei and the Minister of Economy Luis Caputo. This was achieved thanks to the implementation of credit notes by the Electricity Distribution Company of La Rioja (EDELaR) to pay the new invoices without the established increase.
To stop the consequences of the price liberalization ordered by the national government, the decree stipulated that the increases in the electricity rate imposed by the Milei government be frozen, suspending consumption for the month of February 2024 and the application of the table. tariff that the distribution company Edelar had to charge users in the month of April, with the aim of “avoiding aggravating the situation of the population and economic sectors.”
“When one governs, one does so to generate conditions of well-being for the people, because that is the constitutional obligation that a government has, to generate well-being for society,” Quintela said at the time of making this decision for the benefit of the workers.
