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Government aims to begin removing subsidies from middle and low sectors in March

Government aims to begin removing subsidies from middle and low sectors in March
February 7, 2024 – 14:06

Energy is rushing the implementation of the new basket that will replace segmentation, after having postponed the removal of subsidies to households in the middle and low segments to avoid judicialization.

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The Government aims to begin the removal and reformulation of subsidies on gas and electricity rates for households in the medium and low segments in March. Official sources told Ámbito that they estimate that this will be possible after the call for the public hearing on February 29 is made official.

This Wednesday, the Ministry of Energy published in the Official Gazette the call for said public audience through Resolution 8/2024 published in the Official Gazette. There, the system of “basic energy basket” with which it will seek to replace the current segmentation scheme among high, middle and low income households implemented last year.

The Ministry of Economy seeks to accelerate the pace of adjustment of subsidies. Days ago, it implemented an increase in the seasonal price of electrical energy for businesses, industries, and public entities (with impacts that in some cases are between 200% and 400%, according to estimates by specialist Julián Rojo), but in the case of Residential users only applied it to those in level 1 (high income).

Originally, it was planned to apply it to the three segments, however, it was decided to postpone the increase in middle and low households until the new basic energy basket is approved to avoid judicialization that would slow down the process of removing subsidies. In January, Secretary Eduardo Rodríguez Chirillo had said that the public hearing to approve the scheme that will replace the segmentation of subsidies would be held in March and that it would come into force in April, but now they are seeking to accelerate the process so as not to delay the adjustment.

NOTE IN DEVELOPMENT…

Source: Ambito

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