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The Government already defines a “transition fee”

The Secretary of Energy, Darío Martínez, reaffirmed this Thursday that the Government intends get to march with a transition fee defined that « will not reflect the dollarized scheme » applied during management Let’s change or maintain a « permanent freezing process ».

« From now to March we are in a negotiation process with the distributors and carriers and we are going to a transition rate that will not be the dollarized Comprehensive Rate Review (RTI) of the previous government nor will it maintain a permanent freezing process, » he said. Martínez in dialogue with the portal La Mañana de Neuquén.

The official explained that there is a « need to move towards a transition scheme » in order to leave behind the RTI (still in force). « The impact it would generate would be devastating and that is why the President (Alberto Fernández) began the negotiation process by setting March as the deadline. », large.

 

 

Rates 2021: How will the new collection scheme be

The idea of ​​readjustment promoted by the national government is outlined in« maintain a relationship between rates, wages and pensions » and as part of that premise, add « the use of subsidies in a much more efficient way », Martinez reviewed.

The Secretary of Energy also predicted that « being able to handle subsidies more intelligently will reflect different impacts according to the ability to deal with the tariff, » although he insisted that in all the process it will be necessary « keep subsidies in constant GDP terms, at 1.7% ».

 

In other of the points addressed, Martínez mentioned the need to « sanitize » to the Administrator of the Wholesale Electricity Market (Cammesa). « The Ministry of Energy has already started the negotiation process with the distribution companies that have been financed through indebtedness with the wholesale company, » he questioned.

 

Natural Gas: Challenges for winter management

When asked about the requirements of provision of natural gas that the country will have for the winter months, Darío Martínez assured that the Government analyzes with the oil companies how much they will be able to increase their production to face the peak of demand, as well as the possibility of increasing purchases of Liquefied Natural Gas (LNG) through a new regasification ship or via Chile.

Thus, the official highlighted the « positive impact » that the recently implemented Gas.Ar incentive program will have with « a public investment scheme that will stop the decline » of production that the sector had been registering, which also « will mean the recovery of jobs and the incorporation of new SMEs to the hydrocarbon industry. »

Among other alternatives under analysis, Martínez also mentioned the call for a new bidding process planned for the winter months, for which the dialogue with the producers is underway to analyze to what extent they will be able to increase their offer in the coming months, together with works that may be carried out to make the transport infrastructure and the use of gas pipelines more efficient, such as  » the possibility of the ship (which would reopen the strategy finalized in 2018), such as comparing with what can be brought from Chile or not, but progress will be made in what is least costly for Argentina« .