Starting in May, Javier Milei’s administration seeks to reduce the number of categories of subsidized users from two at present (middle and low income) to one. Households whose income is less than one and a half family baskets would continue to receive subsidies.
The Government’s intention is to continue reducing subsidies for electricity consumptionbut official sources recognize that “It is difficult to get out of a scheme as regulated as the current one”. In the immediate future, one objective that has been set is reduce the number of categories of subsidized users starting in May from two in the present (middle and low income) to one, that is to say that the universe is divided between subsidized and non-subsidized. Households whose income is less than one and a half family baskets would continue to receive subsidies.
The authorities had the intention of making changes to the subsidy scheme starting in January, but due to the technical difficulties involved in these modifications, they decided to “be rigorous in the analysis of the impact” and postpone the decisions.
He World Bank and the Inter-American Development Bank (IDB) are providing assistance to fine-tune the subsidy system. The Government points out that there are problems with the data, which is why they are working to improve information systems, both in terms of hardware and software. “so that the subsidies go to those who really need them.”
In this sense, the Ministry of Energy is carrying out a gradual task of purifying the beneficiary base, in collaboration with different ministries. Besides, They will carry out a rate review with transporters and distributors. This is a discussion about the rates to be charged and investments in the network for the next five years.
Standardization
The official plan for next year contemplates energy regulatory normalization. Between the second half of January and the first half of February, public hearings would be called to evaluate the investment plans of the regulated companies, the objectives of improving the quality of public services and the needs for rate increases.
In principle, the authorities have made it clear that the intention of the Government is to have new electricity and gas rates defined by the end of March or beginning of Aprilwith Final increments for single-digit users.
Source: Ambito
