Tuesday, December 30, 2014

Argentina freezes electricity rates in Buenos Aires

The government of Argentina seems willing to make a big fiscal effort to prevent electricity rates increase across the country, crucial for the future of President Kirchner. A promise to finance works for governments to maintain electrical ironed ballots in 2015 just added another offer: will be responsible to cover salary increases to be defined in the next joint negotiations in the sector, which should begin in the first quarter . Thus, it will reinforce a trend that began with Edenor and Edesur, the two largest companies in the industry, faced for years a critical situation and need the help of the state to deal with a part of wages.

In recent weeks, several provinces announced that apply increases in light slips from January. But Planning Minister Julio De Vido, drowned those intentions from the outset by extending tariff convergence plan, which on paper arises from agreements between the provinces and the Government. This initiative began earlier this year, is that the Casa Rosada finance works needed to sustain and improve the functioning of the electrical system in the provinces in exchange for distributors do not touch their rates, a challenge in a context of ever-increasing costs.

The plan had some difficulty from the point of view of the governors, especially the delays of planning to turn the funds for the settlement system. Therefore, most provincial helmsmen not want to renew it. However, the ability of conviction De Vido was stronger than the negative.

Until now signed eight provinces. These Jujuy, Tierra del Fuego, Neuquén, Formosa and Jujuy. Yesterday put his name the governor of Buenos Aires, Daniel Scioli.

After the meeting, De Vido said that "the rate convergence means public investment in electrical infrastructure for the entire province of Buenos Aires, but essentially means continue a popular tariff scheme, which encourages and promotes energy consumption, but mainly to improve the quality of life of our people. "

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