The Government will finally begin the process of redirecting subsidies. This was determined by the publication in the Official Gazette, which presents the “Transition Period towards Targeted Energy Subsidies”, valid until November 30. In addition, it promotes re-registration in the RASE, with a view to eliminating the segmentation of the previous government.
Decree 465/2024 determines the restructuring of energy subsidy regimes at the national level. The objectives are three: transfer to users the real costs of energy, promote energy efficiency and ensure residential residents access to the essential consumption of electricity and gas.
This scheme, which seeks to categorize households according to “subsidiarity situation”, will be in force from June 1 to November 30, 2024. However, it may be extended one time, for a period of six months, if The Ministry of Energy provides it by resolution.
The central objective is change the structure of distribution of subsidies and focus them under the parameters of the Basic Energy Basket (CBE), marked by income criteria and georeferencing. In any case, on this point there is no major news: the Decree only talks about calibrating the variables of this subsidy regime based on the results observed during the Transition Period.
Energy rates: what will be the impact on users
Under this logic, although The transition period includes discounts for low (N2) and medium (N3) income users, it is the same sectors that will be initially affected because the Decree eliminates the limit that prevents applying increases that exceed 40% and 80% of the Salary Variation Coefficient (CVS), respectively.
Also The inclusion criteria in each of the segmentation levels established during the management of Martín Guzmán will be reviewed at the head of the Ministry of Economy. Likewise, the Ministry of Energy may establish a single category of residential users who require assistance to access “essential” energy consumption.
Meanwhile, the transition proposes the granting of a series of powers to the body that leads Eduardo Chirillo, such as the establishment of limits on subsidized consumption volumes for all residential segments, both for electricity and gas, or the application of discounts or bonuses on N2 and N3 users in the energy component of the rate.
On this last point, The Decree proposes to compensate the nine distribution companies that stop collecting when applying said discounts and bonuses.
At the same time, in a first stage they will be able to extend to Level 2 users the consumption limits that already apply to Level 3 users, of 400 KWH per month. Above these quantities 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 publication in the Official Gazette ensures that during the validity of the Transition Period, “the existence of other benefit regimes and/or subsidies for energy in force must be considered, in order to recommend or proceed with their adaptation, elimination and /or replacement.” However, Energy must also provide a mechanism to establish benefits that correspond to public good entities, neighborhood clubs and other non-profit entities.
For the titular specialist of the consulting firm Paspartú, Juan José Carbajales, It is about putting together a basic “light” energy basket. However, he considers that the “weakened” institutionality and the “increasingly cracked” social mood will be key to the viability of the attempt “that not even the strengthened Macri regime could achieve.”
Source: Ambito
