The deep recession and the number of holidays contributed to the very low level of energy consumption. The biggest drop was seen in gas distribution.
Secondary energy production suffered its biggest monthly drop in June since the worst of the Covid-19 pandemicas a result of the recession and the fewer working days that month. This happened despite the fact that improvements were observed in the cumulative total for the second quarter.
The INDEC reported this Tuesday that The Synthetic Energy Indicator (ISE) sank 10.8% compared to May, thus meaning the deepest negative variation since April 2020, when a 21.9% collapse was verified following the quarantine decreed at that time by the Government of Alberto Fernández.
In year-on-year terms, the contraction was 5.2%. Within the components of the ISE, the main fall was observed in the Gas distributed to industries and homes (-6.6%)not including that delivered to power plants.
Also, for the power generation (net of that used as an input in the production process of power plants) the decline was 6.1%while for the petroleum derivatives (which includes diesel, fuel oil and naphtha, among other products) production fell 3% compared to June 2023.
Still, in the second quarter The ISE showed an increase of 1.3% compared to the same period last year and 1.5% compared to the first quarter of 2024.
For the third quarter (which is about to end), a survey conducted by INDEC showed that Half of the firms in the electricity sector expected domestic demand to increase, while the other half did not foresee any change.
In the gas sector, 83.3% of the surveyed firms did not estimate increases In demand and in the oil sector, this percentage was 63.6%.
It is worth remembering that the ISE measures the performance of the energy sector’s production based on a representative set of secondary forms of energymade up of the different energy products that come from the different transformation centers and whose destination is the various consumer sectors or other transformation centers.
The industry collapsed in June
A little over a month ago, INDEC itself had reported that The industry plummeted 20% year-on-year in JuneWhile the number of holidays played a role, the depth of the recession was reflected in the fact that the level of production was at levels of June 2020, when the economy was still under strict health restrictions.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
