Starting at 9 in the morning, gas distributors and transporters will present their adjustment proposals for the sector.
The natural gas distributors and transporters will meet tomorrow from 9 in the morning at public hearing 104 called by the National Gas Regulatory Entity (ENERGAS) to make its proposals on rate increases. From this meeting, the monthly adjustments that will be applied between “February and March”, according to the Minister of Economy, Luis Caputo.
124 exhibitors will participate in the audience representing companies, associations and sectoral chambers, user and consumer defense entities, legislators and mayors. 108 will be able to speak and the remaining 16 are alternative speakers of the entities.
The Secretary of Energy, Eduardo Rodríguez Chirillo will be in charge of opening the hearing and then will speak Martín Vauthier, representing the Ministry of Economy. On the opposition side, one of the most prominent speakers is the former Minister of Public Works of the Nation and current head of Infrastructure and Public Services of the province of Buenos Aires, Gabriel Katopodis.
Rates: proposed 350% increases
Regarding the proposals for rate adjustments, it is expected that the figures exceed a 350% increase. In any case, it is important to keep in mind that the public hearing is not binding, the Secretary of Energy will independently determine the adjustmentsalthough it may take into account the proposals of the different entities.
The Minister of Economy, Luis Caputo had anticipated that “the Subsidy cuts are 2 points of GDPmore or less the 40% of the deficit. You cannot say in energy how the rate will end because we are going to a different scheme, with a business optimization. The demand is going to be subsidized. “Instead of giving to companies, we will help those who have the least.”
ENERGAS hearing: the most important points
The call to the hearing was formalized through the resolution 704 of December 14, 2023 and was published the next day in a special supplement of the Official bulletinin line with the decision of the Government of reduce subsidies to energy services and determine a tariff update scheme.
The hearing will begin at 9 a.m. virtually, it will not be binding and it will address seven points specified in article 1 of the resolution.
- The temporary adjustment of the rates of the public natural gas transportation service;
- The temporary adjustment of the rates of the public gas distribution service through networks;
- The transfer to rates of the price of gas purchased under the terms of the Basic Rules of the Distribution License
- The determination of a monthly update index for the rates of the public natural gas transportation service and the public gas distribution network service.
- The treatment of the incidence of the cost of freight and/or transportation of Liquefied Petroleum Gas (LPG) will also be considered with respect to localities supplied with propane/butane gas indiluted by networks;
- The treatment of the incidence of the price of gas on the cost of unaccounted for natural gas (NGNC) and, therefore,
- The reversal of the Northern Gasduct.
The highlight of the agenda was inclusion of the point that establishes that rate adjustments will be made on a monthly basis.
Source: Ambito
