A “Transition towards Targeted Subsidies” was defined

A “Transition towards Targeted Subsidies” was defined
A “Transition towards Targeted Subsidies” was defined

This Tuesday, the national government announced that, from June 1 to November 30, the “Transition Period towards Targeted Energy Subsidies” will be carried out, a process to redirect electricity and gas subsidies. In addition, it promotes re-registration in the Registry of Access to Energy Subsidies (RASE).

According to Decree 465/2024, published in the Official Gazette, energy subsidy regimes will be restructured at the national level. The main objectives are the transfer of the real cost of energy to users, the promotion of energy efficiency and guaranteeing residents access to the essential consumption of electricity and gas.

According to the regulations, during this transition, discounts will be maintained for users in levels 2 and 3, low and medium income, respectively. However, they will be the most affected sectors, since the limit that prevents applying increases that exceed 40 and 80 percent of the Salary Variation Coefficient (CVS), respectively, is eliminated.

To continue on topic…

In addition, the inclusion criteria for each level of segmentation established during Martín Guzmán’s management in Economics will be reviewed. Likewise, the Ministry of Energy may establish a single category of residential users who need assistance to access “essential” energy consumption.

Also, the Ministry of Energy is granted a series of powers, which include the application of caps on subsidized consumption volumes for all residential segments, whether electricity or gas. Or the entry into force of discounts or bonuses for users of levels 2 and 3 in the energy component of the rate.

In this sense, in the first stage, the consumption limit that already applies to those in level 3, of 400 KWH per month, would be extended to level 2 users. If more than this is consumed, the wholesale price of gas and electricity “established by the Ministry of Energy or resulting from the interaction of market agents” will be paid.

Finally, “the existence of other current benefit and/or subsidy regimes for energy will be considered, for purposes of adaptation, elimination and/or replacement.” This should contemplate a mechanism that establishes benefits that correspond to public good entities, neighborhood clubs and other non-profit associations.

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