May 27, 2022 12:40 pm

Juan José Aranguren, on the rates: “They try to hide the reality”

Last week it was revealed -once again- the fragility of the electrical system in Argentina, after massive power outages that occurred during the heat wave. In this context, the former Minister of Energy Juan Jose Aranguren He gave his opinion about the instability in the regulatory framework, the almost frozen rates and the lack of investment in the sector.

“The same policy is being repeated before we arrived, try to hide the reality. When a good is scarce and expensive what we have to do is try to consume it rationally, try to apply energy efficiency and if you give bad price signals to a consumer, he tends to consume more. With a subsidy, what we are causing is to exacerbate demand, that subsidy ends up causing a fiscal deficit that is remedied with emission, which later turns into inflation,” he said in dialogue with Joaquín Morales Solá.

The former official maintained that the freezing or tariff delay brings more problems than benefits and questioned the leadership. “We do not know how to properly communicate the reasons why it is convenient to reflect production and generation costs in prices and tariffs,” he said.

News in development

Reference-www.lanacion.com.ar

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