Criticism of cutting new subsidies | Reasons used by consumer entities

Beware of consumer entities The shortcomings of advertising lift subsidies in light, gas and water. They argue that the partition is as advertised It was not discussed in a public hearing And that The income criterion adopted in the model is limited because it does not take into account household spending conditions. They assert that the complete abolition of subsidies for companies and unions is new and they expect it Consumption limit according to each category of natural gas It can generate opposite incentives.


Claudio Boada, of the Users and Consumers Union, recalls that “in A public hearing in mid-May discussed eliminating subsidies for people with incomes over 350,000 pesos. It would affect 10 percent of the population, they said. Now it is not per capita income but household income, i.e. it directly affects the middle sectors. Both this change and the new ceilings were not analyzed at the public hearing. In the water, fragmentation is not discussed“.

“Neither gas, nor electricity nor water is authorized for a new increase because public hearings have not taken place. Wholesale prices, although free prices, when billed, modify the consumption relationship in the public service It must therefore be evaluated at a public hearing. “There are several legal rulings in this regard,” said Osvaldo Bassano of ADOC.


“Using the apportionment model, we go for 350,000 pesos per family group, not per capita, which about 30 percent of the population enters into. The big problem here is that income is analyzed, not expenses, that is, it is not a real socio-economic study. If you’re a renter, have a chronic illness, or have many school-age children, that’s not taken into account,” says Boada.

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“On the other hand, consumer entities ask That the record has a dynamic character, but so far this does not seem to be the case. Whether it’s for users who haven’t signed up yet, or people who have lost their jobs, or moved, or whatever, The information in the registry does not affect the following month, but the government appears to be laying out a blueprint for the cutsThe first was at the end of July, but the next is unknown when it will be. In other words, although the registry is open, it is not clear that this information is evaluated on a monthly basis. This misinformation occurs because everything is based on the statements of officials, since there was only an official decision setting gas prices at the wellhead for distributors,” adds Boada.

Pedro Bosetti, of Deuco, confirms that “There are 5 million users who have not yet signed up for the registry. It is very dangerous to cancel support directly in these casesbecause there are many reasons not to provide the affidavit, such as not engaging with technology or moving away from urban centers.”

New removals

“It seems, The division also includes the general rate, i.e. companies and unionsThis is the opposite of what the same officials told us a few weeks ago. This action will have an impact on expenses,” Boada points out.

Regarding the electricity consumption ceilingThe standard does not take into account that there are many neighborhoods that rely heavily on electricity and are also weak. There are places in La Matanza or José C. Paz that do not have sewers or gas installations. The social average does not cover all of these cases. Think of someone who earns just over 100,000 pesos a month, renting a half-built house, with little air, old appliances and no gas. In these cases, the maximum of 400 kWh per month is very low”, adds Boada.

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In the case of gas, Boada says, “It is reasonable to take into account the climatic conditions and consumption curves of each location, but it is based on a false premise, because the initial investment of money is necessary for the responsible use of the resource. In addition, the chosen scheme is bad, because if the family is within the category, You may want to consume more to enter the next tier and be lower than the new tier threshold“.

Bussetti calculates that “the entry into force of the 400kw/h cap will result in the Edenor and Edesur . area in the middle income bracket between 46 and 129 percent. In natural gas, the increase will also be significant for these sectors.”

Freddie Dawson

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