The government announced a new rate for electricity and gas services that will affect the pockets of all families. With the argument of ending the subsidies, the government decides another adjustment in services when last week’s shortage and payment of surcharges for liquefied gas after energy forecast errors by Javier Milei’s management are still fresh.
Through the Official Gazette, this Wednesday, June 5, the government announced strong increases in electricity and gas rates for industry, businesses and homes, which will be in effect from June of this year. The Resolution 90/2024 argues that, due to previous regulations, the energy sector was unable to cover supply costs. And Users, unaware of the real price of energy, consume inefficiently and irresponsibly. and that the energy sector is underfunded, which is why it has needed increasing contributions from the National Treasury.
These resolutions are possible thanks to the decree 55/2023which establishes the emergency of the National Energy Sector and the controversial decree 70/2023which remains in force and which established the public emergency in economic, financial, fiscal, administrative, pension, health, tariff and social matters until December 31, 2025.
The Resolution 92/2024 sets the new seasonal price of electrical energy in $57,214 per megawatt/hour. Meanwhile, the wholesale cost of electricity and gas for all sectors N1, N2 and N3 will be the same. What the government will do is subsidize each sector according to the category in which it is located. Thus, for the low income (N2) the bonus will be 71.9% and for the average income (N3) of 55.9%. Only a base consumption of 350KWh per month for the N2, who had never had a consumption limit before, and 250kwh per month for the N3 (the previous limit was 400kwh). All extra consumption will be charged at full rate. While the sectors identified as high income, N1, will not be subsidized.
In this framework, there is a last 60 day period Since the publication of these resolutions, to register in it Registry of Access to Energy Subsidies (RASE).
In the electricity sector, these increases occur in the context of the negotiation carried out by the Ministry of Economy with the Administrative Company of the Wholesale Electricity Market Sociedad Anónima (CAMMESA), to which it owed $1.06 billion pesos between December and January. Finally, the wholesale company accepted the government’s offer: the payment in bonds that are quoted in dollars at 50% of the value of the debt and mature in 2038. According to a note published in Clarín, this meant a loss of US$100 million for electric generators.
In the gas sector, we must mention the great shortage which occurred last week and was resolved, at least partially, by the improvised import of supply from Brazilpaying it US$22 million. This shortage was reflected in restrictions on CNG stationsmainly in Santa Fe and Córdobaas well as restrictions on the industry.
According to Agustín Gerez, former president of ENARSA interviewed on A24, one of the causes of this shortage was the government’s decision to stop public works on the compressor plant Néstor Kirchner gas pipeline. This compressor plant allows the gas pipeline to be made more efficient and go from transporting 11 million m3 to 16 million m3. «From July to May of this year, the gas pipeline “It saved us US$2.5 billion in imports”Gerez specified. Another cause was the lack of planning for the necessary imports for the entire year 2024.
The energy tariff falls on the middle and low income sectors of society, and on the pockets already hit by the liquefaction of salaries, the increase in transportation, medicines, food and an interannual inflation in April of 287.9%, according to data from INDEC itself.
ANRed
