Imminent announcement of a further increase in electricity and gas: about 30%

The Ministry of Energy can not announce a rate increase without first having called a public hearing. Since August 2016, after the decision of the Supreme Court, the energy portfolio held hearings to discuss the wholesale price of energy, the value of gas at the wellhead and the tariff revision for gas carriers and distributors. . And also to transfer to the public increases in transport and distribution margins due to the adjustment for inflation.

tarifazo luz gas

According to published Ámbito Financiero Iguacel could announce the application of the Half-Year Price Adjustment for Edenor and Edesur, which was to govern from tomorrow, 1 August. I could do this with the argument that, in previous occasions, there were other outstanding issues such as the second and third stages of the global tariff review, and that now it is only an increase due to the increase in costs.

the increase would only apply to both electricity distributors and would have no effect on the budget deficit. But in reality, the biggest problem of the government lies in the subsidies that Cammesa, the company operated by the state that operates the electrical office, requires. Cammesa has to pay in pesos, according to the value of the dollar, the remuneration to the producers and the liquid fuels which replace the gas in winter, whereas the distributors of all the country pay the energy with a dollar estimated at 19 $, 60.

According to legislation, the wholesale price of electricity should be fixed in May and November, with revisions in August and February if necessary. But the value of energy is not determined by supply and demand, but is set by the state and discussed in open court, such as gas. If budget emergencies lead to higher energy prices per resolution, the government would add the problem of unfavorable new judicial decisions.

As for the increase in electricity will be less than 30%, said Iguacel in a television program, we must consider the price of energy on the one hand and on the other hand, and that the first l represents 40% of the bill with taxes, and the second 38% approximately.

If the wholesale price is revised, one must decide whether the devaluation is about 43%, second whether the transfer will be retroactive or not, and the third if the contributions still have to be reduced. . from the Treasury to the Cammesa. The definition of these aspects, which will depend more on Nicolás Dujovne than Iguacel, will determine if the audience increase is less than or equal to 30%.

Finally, for the moment there would be no urgency to change the schedule with gas prices that must be reversed in October.