According to what official sources explained, the increases will be capped at 80% of the salary variation coefficient. “In this way we guarantee that they also remain below inflation and that a path of recovery of purchasing power is carried out”they said. Since the beginning of the year, the Government has been assuring that a single increase of around 20% would be carried out, but the new project could bring a complementary increase during 2022. Specifically, if that formula were applied retroactively to 2021, the update would have to be closer to 42%.
According to the draft of the pre-agreement with the Monetary Fund that was circulated weeks ago, the Government will undertake a multiple strategy to reduce energy costs and increase the transfer of generation costs. At the same time, it is pointed out that subsidies to commercial users will be gradually reduced and their progressiveness to households will be improved through a segmentation system. “Short-term actions are focused on guaranteeing the planned reduction of 0.6% of GDP in energy subsidies in 2022”complete the aforementioned document.
On this point, Alberto Fernández announced that the decile with the highest income of the population will no longer receive energy subsidies. The universe covered is in line with what the National Entity for Energy Regulation (ENRE) anticipated would be carried out for the Metropolitan Area of Buenos Aires. as far as he could tell Ambit, that cut would apply to another nine urban areas. It remains to be seen whether the segmentation criterion will be purely geographical, as the ENRE had proposed in December, or whether other variables will come into consideration.
According to private estimates, if the flat increase is close to 40%, residential users who stop receiving the subsidies will reflect a final increase of close to 100% on their bills. In any case, the President affirmed that there will be a claim window: “If any person considers it unfair to stop receiving a subsidy that in their opinion corresponds to them, they can always make their claim so that their right is recognized in a timely manner”.
At the end of last year, energy subsidies rose to 2.2% of GDP
and they regained participation as an explanatory factor of the fiscal imbalance. The Government points out that part of the reduction of that red also comes from the finalization of resolution 46/2017 for the promotion of the production of unconventional Gas in Vaca Muerta. In any case, all the projections are tied to an international context of uncertainty, which could bring about an even greater escalation in energy prices.
Source: Ambito
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