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Economy Subsidies for electricity and gas: what will be the criteria to access the new scheme prepared by the Government - Infobae

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Subsidies for electricity and gas: what will be the criteria to access the new scheme prepared by the Government - Infobae


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Source:


February 28, 2024

Before the public hearing this Thursday, the Ministry of Energy published a document with the details of the new criteria for assigning subsidies, centered on the Basic Energy Basket (CBE). Who will be excluded and who will continue with assistance

By Agustin Maza

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From May there will be a new criterion for assigning subsidies. (Illustrative Image Infobae)
The Ministry of Energy announced this Thursday the details of what will be the new scheme for allocating subsidies for electricity and gas that the Government of Javier Milei is studying to apply from May. The criteria to access assistance will be more restrictive than those in force with the segmentation that began at the end of 2022, so many users will see new increases in their energy bills during the coming months due to the withdrawal of assistance.



The axis of the new subsidy policy will be the formation of a Basic Energy Basket (CBE) by which the basic consumption “for a decent life” of electricity and natural gas will be determined , depending on the bioenvironmental zone of the country in which each resides. user and the number of household members. As access to natural gas through networks is not universal in the country, the situation of those who consume bottled LPG or use only electricity, which is present in almost all regions, will be taken into account.


The determination of the CBE will take into account the prices and rates in force at each point of supply. The State will subsidize residential users when the cost of that basket exceeds a percentage of the income of the “cohabiting group” that will be defined by Energy.

https://www.infobae.com/economia/20...que-forma-reclamar-si-no-recibo-el-descuento/
The secretary of the area, Eduardo Rodríguez Chirillo , had anticipated that it could be around 10% (5% gas and 5% electricity) and that the difference is what will be subsidized through a direct transfer to the beneficiary, via card. virtual or CBU, or through a discount on the invoice.


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The Ministry of Energy will present the new subsidy scheme at a Public Hearing this Thursday.

To consider the basic energy consumption needs of the home, three typologies were defined according to the number of cohabitants: type 1 (up to two people), type 2 (3 or 4 people) and type 3 (5 or more people) .

Who will be able to access the subsidy?​

That the applicant household that meets the inclusion criteria (low income measured in relation to the CBE) will be determined through the information declared in the Registry of Access to Energy Subsidies (RASE) , implemented during Alberto 's administration Fernández and Sergio Massa as Minister of Economy.

In RASE you have a series of tables, from which certain information can be derived:

• One with data about the applicant and the energy and gas meters, their distributors and the customer ID. A total number of cohabitants (majors and minors), also the applicant's income.

• Another linked to this with the data of each cohabitant over 18 years of age, with their personal data and the income of each one.

With the date of the last update of the income declared in the registry (applicant included), the amounts will be adjusted by the salary variation coefficient (CVS), which for Energy is the indicator that best approximates the evolution of registered salaries. The sum of the cohabitants' income adjusted by the CVS for the month of calculation would be used as Cohabitant Group Income (IGC).

With the information from the DNI / CUIL of the members of the cohabiting group, the declared income will be crossed with information from the National Tax and Social Identification System (SINTyS) and other State sources, to corroborate the verisimilitude of the registered declarations.

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Starting in May, some users will lose their subsidy and will have new increases. (Illustrative Image Infobae)

Who is excluded from the subsidy?​

But the Ministry of Energy will take into account other items given the possibility of “underdeclared” income. For this purpose, it published a list of the criteria that could be taken into consideration for the rejection or exclusion of assistance, so it is considered that this segment of the population has full capacity to pay:

To minimize undeclared income errors, the Government determined that if the user meets any of these conditions, they will not be able to access the subsidy, regardless of whether the CBE exceeds the percentage of income determined by the Secretariat:

  • to. Ownership of an aircraft.
  • b. Ownership of a luxury boat or for recreational purposes.
  • c. Full ownership of two or more properties.
  • d. Ownership of at least one car less than 5 years old or two cars less than 10 years old.
  • and. Ownership of at least one luxury or collectible automobile regardless of its registered age.
  • F. Ownership of prepaid medicine not linked to employment in a dependency relationship (total or by referral).
  • g. More than one trip to non-neighboring countries in the last 5 years.
  • h. Membership on the board of directors or being the owner of a private company (IGJ).
  • Yo. Credit card consumption exceeding five Minimum Living and Mobile Wages (SMVM), which is equivalent to $1 million.
  • j. Purchase of foreign currency in at least one of the last three months.
  • k. Consumption in virtual wallets exceeding five Minimum Living and Mobile Wages (SMVM), which is equivalent to $1 million.
  • l. Mobile phone consumption exceeding 25% of the Minimum Living and Mobile Wage (SMVM), which is equivalent to $50,700 since March. The value of the Minimum Living and Mobile Wage for March will be 202,000 pesos.

Bioenvironmental zones​

For the purposes of determining the CBE, a geographical division was used that allows considering the existing heterogeneities in energy access, uses and consumption in the different bioenvironmental zones of the country. For this objective, six bioenvironmental zones were adopted to consider the energy requirements for all uses, especially refrigeration, heating, domestic water heating, food preservation and cooking, lighting, among others.

The 6 zones adopted by Energy are those shown on the following map:

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The bioenvironmental zones determined by Energía will be six, from very warm to very cold.
The subsidy segmentation scheme that the previous Government applied since the end of 2022 contemplated three levels: N1 high income, N2 low income and N3 medium income . Users whose income exceeds 3.5 times the Indec Total Basic Basket ($2,088,880.5 in January), which measures the poverty line for a typical family of four members, are classified as N1 and do not receive a subsidy.

Also excluded are households located in the district of Patagones (Buenos Aires), Chubut, La Pampa, Neuquén, Río Negro, Santa Cruz or Tierra del Fuego, which exceed $2,548,434.89 per month in income. Added to this are those who own three or more vehicles less than five years old, three or more properties, a boat, a luxury aircraft or are holders of corporate assets that demonstrate full economic capacity. They also do not have the possibility of accessing the Single Free Exchange Market to buy dollars.

The north of the Minister of Economy, Luis Caputo , continues to focus on the need to cut spending on subsidies. By 2023, the volume of these expenditures reached 2.1% of the Gross Domestic Product (GDP) , with the energy sector contributing 1.6 percentage points, which represents approximately 9,683 million dollars, according to estimates made by the International Monetary Fund (IMF) and the consulting firm Economía & Energía . The objective has been set for 2024 to reduce these subsidies to 1.3% of GDP in general terms, and to 1.1% specifically in the energy field.
 
Sounds like a LOT Of people will be cut from subsidies but these all sound reasonable to not be subsidized if you meet any of these criteria.
 
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