The National Electricity Regulatory Entity (ENRE) convened a public hearing for next February 17 in which it is expected to analyze the proposals for a new service rate table, both in the wholesale section and the one that will govern temporarily for the concessionaires Edenor and Edesur, which operate in the Metropolitan Area of Buenos Aires (AMBA).
The hearing will begin at 8 a.m. and will be held virtually, in accordance with the provisions of the Entity’s resolution 25/2022 published today in the Official Gazette.
On the occasion, the 2022 Tariff Transition Regime proposed by Edenor and Edesur will be presented.
In addition, the determination of the Power Reference Prices (Potref) and the Stabilized Energy Price (PEE) will be analyzed in the Wholesale Electricity Market (MEM), as well as the stabilized price of transport for the Tierra del Fuego System Wholesale Electricity Market (Memstdf), together with the Tariff Transition Regime proposed by the Neuquén Provincial Energy Entity (EPEN).
In the same order, the proposals of the electricity transport companies Transener, Transba, Distrocuyo, Transpa, Transco, Transnea and Transnoa will be heard.
The ENRE specified in a statement that the objective of the hearing is to “provide an adequate solution for the situation for the benefit of the users, as well as for the concessionaires”.
This transitory solution will be given under the premise of sustaining “the necessary provision of public electricity transport and distribution services, in safe conditions and guaranteeing the respective supply, as well as the continuity and accessibility of said essential public services,” he added.
“The Transitional Regimes that result from the Public Hearing on the matter of transportation and distribution of electric power will govern until a Definitive Renegotiation Agreement is reached,” he indicated in this regard.
About rate increases
The ENRE made reference in the statement to the rate increases applied during the Presidency of Mauricio Macri.
Regarding this aspect, he pointed out that together with the Ministry of Energy “it continues to work on proposals for Transitory Regimes aimed at reversing the consequences of the tariff increases of the previous administration and continuing the path of recovery of the economy of households, businesses and SMEs “.
The call is part of the purpose of the Government of adjust the rates of public electricity and gas services with percentage increases lower than those of projected inflation.
In both cases, it is expected that the rate increases will be applied in a segmented manner, according to the purchasing power of the users.
In this sense, in the annexes of the resolution, the ENRE underlined that the investment plans and financial projections of the concessionaires must have as macroeconomic premises an annual inflation of 33% and a dollar price at the end of the year of $131.1 , in line with the provisions of the Budget bill, which was finally rejected by the opposition in the Chamber of Deputies.
These increases, in addition to trying to correct tariff arrears, seek to mitigate the impact of spending on subsidies to economic sectors, which in 2021 represented expenditures greater than the primary deficit.
The budget project allocated for this year $873,397 million in subsidies to the energy sector, a sum equivalent to 1.5% of the Gross Domestic Product (GDP), below the $878,481 million last year, according to the analysis of the Argentine Association of Budget and Public Financial Administration (ASAP).
In matters related to wholesale and transportation market prices, the hearing will be chaired jointly or alternately by the Secretary of Energy, Darío Martínez, and the Undersecretary of Electric Energy, José Basualdo, or the officials that they eventually designate in their replacement.
Regarding the analysis of the distributors’ proposals, the public hearing will be chaired by the ENRE’s comptroller, María Soledad Manín.
Participation is open to “any natural or legal person, public or private, that invokes a subjective right, simple interest or right of collective incidence”, in accordance with the requirements set forth in the public hearing procedure, it was indicated in the resolution.
To do this, they must register in the Registry of Participants, through the ENRE website, between zero hour on January 31 and 11:59 p.m. on February 14.
