Two bills propose subsidy extensions, but Congress hasn’t heard about them yet

Michael Taylor
Michael Taylor

Global Courant

While the last propane subsidy ended on June 15 and now consumers must pay Q5.40 per pound of the product, the energy subsidy expires on June 30 for more than 447 thousand users who, as of July 1, will have to pay full social rate.

However, in the legislative direction is the initiative of law 6263, which proposes to extend the temporary contribution for the electricity subsidy for three months, applying it in the same way as to date. That is, to cover the consumer segment from 89 to 125 kilowatt hours (kWh) per month.

This group includes around 447,500 families, according to data from the Ministry of Energy and Mines (MEM), which as of July 1 will lose the subsidy that allowed them to pay only Q1 per kWh, so the increases will go from 38% 100% in the collection.

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If approved, the law would allow the subsidy to be extended for 3 months by adding Q77 million to the amount in force until this end of the month, with which the extraordinary subsidy would amount to a total of Q274 million.

Meanwhile, bill 6262 proposes the extension of the gas subsidy also for three months, but with Q0.60 per pound, so that, compared to the current price of Q5.40 to the final consumer, the price per pound would be of Q4.80.

With this, the proposed subsidy for the 10-pound cylinder would be Q6; for the 20, Q12; the 25-pound one would have Q15 support and the 35-pound one would be subsidized with Q21, according to the document. The subsidy that was in force until June 15 covered Q0.80 per pound, that is, the consumer paid Q4.60 per pound.

The proposal consists of adding another Q115 million to the Q150 million approved this year, so that the contribution would reach Q265 million and was presented by parliamentarians Sergio Arana, Aníbal Rojas, Marvin Alvarado and Maynor Mejía, according to the names that were see in the document. Until Thursday, June 29, no other proposals had entered, it was reported in Congress.

await results

Consulted in this regard, the president of the Congressional Energy Commission, Edgar Dubón García, who is part of the Todos bench, said that the issue is pending discussion and there is no definition.

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Regarding a possible expansion of subsidies, he said that it will depend on the in-depth analysis that must be done, since each subsidy is a significant financial amount and “it would be necessary to see how positive the result is socially.” For the moment, he expressed that they (the deputies) have not been summoned to another plenary session to discuss this issue. At the beginning of the month, there was a session whose agenda included these issues, but the necessary quorum to carry it out was not achieved.

They also tried to consult the president of the Finance Commission, the deputy of Vamos, Cándido Leal, but he did not respond.

Last week, the Minister of Energy and Mines, Alberto Pimentel, opined that if the temporary subsidy loses its validity and the extension is not approved beforehand, the legal support of the bill that exists in Congress is lost because it proposes extending a measure in force that, after June 30, would no longer exist. The MEM also did not give an account this week if it will promote another proposal.

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Two bills propose subsidy extensions, but Congress hasn’t heard about them yet

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