Electricity and gas subsidies: next Tuesday the details about the rates and the limits on consumption will be known



The Secretary of Energy, Flavia Royón, in a meeting with the Minister of Economy and Energy officials
The Secretary of Energy, Flavia Royón, in a meeting with the Minister of Economy and Energy officials

The long-awaited announcement of the new rates for electricity and natural gas —based on segmentation and consumption caps— that was scheduled for this week will take a few more days. This was confirmed by the new Secretary of Energy Flavia Royon in statements to Radio 10. The new date scheduled for the announcement is next Tuesday at noon.

“We are working. This week has been very intense. It is about being very clear with people because we have the maxim that this rate update, first, be below the salary variation index (CVS) and that it be only for the level of high purchasing power. The social tariff will not undergo a new update this year”, he detailed.

It is only a portion of the users that will suffer the update and the decision is to take care of people with fewer resources (Royón)

“Energy is a commodity that must be taken care of. We estimate that during the weekend we can conclude that the intention is that it be very clear to people. It is only a portion of the users that will suffer from the update and the decision is to take care of people with fewer resources, ”he stressed.

There are still several doubts about how the new rate scheme will work, especially the deadlines for its application. The distribution companies assured that they have not yet received details of the changes or the lists of users to whom they must bill the full rate, without subsidies.

The new rate scheme for gas and electricity is delayed
The new rate scheme for gas and electricity is delayed

On the other hand, it was also announced that among the more than 9 million households that asked to maintain the gas and electricity subsidy in recent weeks, the Government is going to apply caps to the subsidized rate, which will be different by region, where they will take into account climatic differences and the cost of distribution, as well as seasonality.

Royón highlighted that in a global context where there is talk of restrictions and increases in energy costs. Argentina was able to carry out a winter without cuts. “The Argentine reality has been very different from the world reality where energy costs have also skyrocketed; This speaks of the policy of guaranteeing the energy supply for Argentines and for the industry, but also of all the possibilities that this sector has to be self-sufficient and also to be an exporting complex”, the secretary pointed out.

He also listed the announcements for the sector that were made this week, including the signing of contracts for the start of construction of the Néstor Kirchner gas pipeline. “It is a strategic work for the country and it would also put us in an international context; all the gas that can be produced in Vaca Muerta, the second largest shale gas reserve in the world, could be extracted. The decline in the North could be reversed, where we are importing gas from Bolivia and in the future Vaca Muerta gas can be accessed and exported”, he predicted.

In addition, he highlighted other works that will be launched. A private investment of USD 700 million for the development of the Fénix Project for the production of natural gas in the Austral Basin, off the coast of Tierra del Fuego; and another of more than USD 1,400 million to increase the capacity of the Valle pipeline that connects the field with Bahía Blanca.

“This speaks of all the magnitude that Argentina has to supply itself to the country and so that the Argentine industry can also access a competitive price,” said Royón. Lastly, he indicated that off-shore gas projects such as the one in the Austral Basin or in the Argentine Sea have “very high environmental standards”.

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