NewsWhore
11-14-2011, 04:00 PM
On Friday, 11 November, the Fernandez administration sent the Bill for the Adjustment of the Electricity Tariffs to the Senate. The proposal sets a maximum of a 1.5% monthly increase in the service. Earlier last week, Minister of Economy Temistocles Montas said the International Monetary Fund was pressing the government to approve an 18% increase in the electricity tariff as a condition for approving the imminent reviews of the Stand-by Arrangement.
The PLD government holds the majority in the Senate and the Chamber of Deputies.
The government wants to borrow US$250 million from the IDB for the power sector, but the IDB will not lend if the IMF does not give its go ahead.
In the presentation of the bill, President Fernandez highlights that the bill seeks to satisfy the request of society so that the electricity rate reflects the movement of international fuel prices, especially when these reflect significant price decreases. Nevertheless, the same Fernandez government has been reticent to implement decreases in the petrol law, with fuel prices still at the same levels as when petrol prices were much higher.
The bill would cover 6 Fuel Oil 3.0% Sulfur. Average of the daily balance of the US Golf Coast Waterborne, 0.5% S Fuel No. 2, natural gas and coal.
The bill contemplates an automatic monthly adjustment of the price of electricity to reflect these pries. The prices would be adjusted no later than the 25th of each month and the Superintendence of Electricity will determine the average of the variation of the fuel prices.
More... (http://www.dr1.com/index.html#3)
The PLD government holds the majority in the Senate and the Chamber of Deputies.
The government wants to borrow US$250 million from the IDB for the power sector, but the IDB will not lend if the IMF does not give its go ahead.
In the presentation of the bill, President Fernandez highlights that the bill seeks to satisfy the request of society so that the electricity rate reflects the movement of international fuel prices, especially when these reflect significant price decreases. Nevertheless, the same Fernandez government has been reticent to implement decreases in the petrol law, with fuel prices still at the same levels as when petrol prices were much higher.
The bill would cover 6 Fuel Oil 3.0% Sulfur. Average of the daily balance of the US Golf Coast Waterborne, 0.5% S Fuel No. 2, natural gas and coal.
The bill contemplates an automatic monthly adjustment of the price of electricity to reflect these pries. The prices would be adjusted no later than the 25th of each month and the Superintendence of Electricity will determine the average of the variation of the fuel prices.
More... (http://www.dr1.com/index.html#3)