He Government will cut the Subsidies Energy to more than 150,000 users of the cold zone regime. As he could know TNthe executive detected beneficiaries who have two or more meters recorded in the scheme that gives a 50% discount on the gas invoice. Nation will reduce the benefit to 30% in those cases, through a resolution in the Official Gazette.
The measure is part of a restructuring of the distribution of state subsidies that seeks to deepen the Ministry of Economy in the medium term. He already removed the energy benefits this week at 15,500 users of Puerto Madero and neighborhoods closed. “There are more than 370,000 accounts registered with 150,000 holders in cold areasindicating that they have two or more meters and that they are not in a situation of vulnerability, “they express in Balcarce 50.
The cold zone regime It was created through Law 25,565 to grant subsidies in gas rates to the users of the Patagonia regions and of the Puna. It was extended in 2021 to new subzones through Law 27,637, which had a distinction for vulnerable users, such as retirees, social monotributists and beneficiaries of plans, among others. He was also extended until December 31, 2031.
The scheme It is supported by a surcharge that is charged to natural gas users -This year grew from 5.44%to 6%, but can reach 7.5%- which applies to the price of the product at the point of entry to the transport system (pist) and is transferred to the fiduciary fund for subsidies of residential gas consumption. The trust had in 2024 revenues of $ 322,210 million and expenses for $ 377,021 million in transfers to the private sector.
The Government It has the power to increase or decrease the percentage amount of the subsidy, but cannot modify the zonal guidelines without a bill sanctioned by both chambers. The fund was created in 2002 through Law 25,565 and is the only trust that was excluded from cutting of structures agreed with the International Monetary Fund (IMF).
The total universe of the cold zone regime covers more than 4,300,000 beneficiaries on a 9,400,000 register. Users who have 30% discount reach 1,700,000 and are distributed between Buenos Aires (692,046), Córdoba (338,136), Santa Fe (294,625), Mendoza (218.922), Salta (68,741), San Juan (61.187), San Luis (44,348) and La Rioja (29).
There are currently 2,586,742 users with 50% subsidies Among the provinces of Buenos Aires (637,274), Córdoba (374,466)Santa Fe (268,906), Río Negro (233,164), Neuquén (204,514), Mendoza (203,043), Chubut (176,928), La Pampa (136,770), Santa Cruz (112,823), Salta (65,798), Tierra del Fuego (52,147), San Juan (58.783) San Luis (50,889), and La Rioja (17), among others.
The total beneficiary entities covers seven distributors and 42 gas subdistributers by networks and six packaging companies of packaging, which are regulated by the National Gas Regulatory Entity (Enargas).
The Secretary of Energy, María Tettamanti, extended until May 31 Decree 465 of 2024, which enabled the restructuring of energy subsidies regimes to “ensure a transition that allows: transfer to users real costs of energy, promote energy efficiency and ensure vulnerable residential users access to indispensable consumption of energy ”.
Argentina’s Cold Zone Energy Subsidies: What you Need to Know
Time.news sits down with energy policy expert, Dr. Elena Ramirez, to discuss the recent changes to argentina’s energy subsidies and what it means for consumers.
Time.news Editor: Welcome, Dr.Ramirez. Argentina’s energy sector is again making headlines. The government is making changes to the “cold zone regime.” Can you explain what’s happening and who is affected by these energy subsidy cuts?
Dr. Elena Ramirez: Thank you for having me. The Argentine government is indeed adjusting its energy subsidy program, notably the “cold zone regime,” which provides discounts on gas bills to users in colder regions like Patagonia and Puna.What’s new is the government is reducing subsidies for beneficiaries who have multiple meters registered under the same holder, assuming they are not in a vulnerable situation. They’ve identified around 150,000 users fitting this description and will reduce their discount from 50% to 30%. Furthermore, around 15,500 users in affluent areas like Puerto Madero have already seen their subsidies removed.
Time.news Editor: So, it sounds like the government is targeting those who are potentially abusing the system. Is this a critically importent savings measure regarding Argentina energy subsidies?
Dr. Elena Ramirez: Absolutely. This is part of a broader restructuring effort by the Ministry of Economy to optimize the distribution of state subsidies. The government has identified over 370,000 accounts held by 150,000 users in these cold areas, indicating multiple meters per holder. By focusing on these users, they aim to make the system more equitable and efficient. The savings will contribute towards reducing the fiscal deficit.
Time.news Editor: This “cold zone regime” dates back to 2002. How does it work, and why is it vital for Argentinians living in these regions?
Dr. elena Ramirez: The cold zone regime, established by Law 25,565, was created to alleviate the burden of high gas costs for residents in the colder regions of Argentina, where heating is essential. It was expanded in 2021. The scheme is funded by a surcharge on natural gas users, which is currently around 6% but can go up to 7.5%. These funds are then transferred to a trust specifically for subsidizing residential gas consumption.
Time.news Editor: The article mentions that this particular trust fund was excluded from cuts agreed upon with the IMF. Why is that the case?
Dr. Elena Ramirez: Exactly, this fund is considered crucial. The government needs to balance fiscal responsibility with the social needs, especially in the northern and southern parts of the country where these gas subsidies are really helpful for the people when it comes to heating.
Time.news Editor: Who are the beneficiaries of these gas subsidies currently, and how manny people are we talking about?
Dr.Elena Ramirez: The cold zone regime currently covers over 4.3 million beneficiaries out of a registered 9.4 million. Around 1.7 million users receive a 30% discount, distributed across provinces like Buenos Aires, Córdoba, and Santa Fe. Meanwhile, approximately 2.5 million users enjoy a 50% subsidy in provinces, including Buenos Aires, Córdoba, Santa Fe, Río Negro, and Neuquén, among others.
Time.news Editor: What practical advice would you give to our readers who might be affected by these changes in energy subsidies in Argentina?
Dr. Elena Ramirez: First, understand your energy consumption.Check your gas bills and identify if you have multiple meters registered under your name. Those with multiple meters should expect a reduction in their subsidy from 50% to 30%. Also, explore energy-efficient practices to lower consumption, such as improving insulation, using energy-efficient appliances, and adjusting thermostats. Stay informed about any new resolutions or announcements from the Secretary of energy, as these policies can evolve.
Time.news Editor: Dr.Ramirez, thank you for your time and insights. It’s crucial for our readers to be informed about these changes and understand how they can navigate the evolving energy landscape in Argentina.
