MercoPress. South Atlantic News Agency

Argentina: gas “rational use” program begins Friday

Argentina will begin next Friday a natural gas “rational use” program forcing 4,1 million clients to save between 5 and 10% of normal consumption and therefore avoiding higher bills.

"There's no energy crisis, under no circumstances will homes be left without gas. It's a plan to consume gas, a non renewable resource, in a more rational manner", said an Energy Secretary spokesperson in Buenos Aires.

The message to home consumers is quiet clear, given last year's experience, "no rates increase but in exchange consumption savings", added the spokesperson.

The decision becomes effective April 15 and extends until September 30.

To ensure the new system there will be a 2003 bimestrial consumption and temperature graphic so 2005 consumption comparisons are made on identical or similar climatic conditions.

Argentina has three basic categories, below 500 cubic metres of gas consumption annually; between 500 and 1,000 cubic metres annual consumption and above 1,000 cubic metres.

The third category in 2005 will have to save 10% on 2003 consumption levels; the second category 5% and those below the 500 cubic metres threshold will not be exposed to fines but gas distributors must help them to reduce consumption.

Those users who exceed consumption limits will have to pay for the each additional cubic metre 0,11 Argentine cents. The basic rate for gas in Argentina is 0,15 cents.

Jorge Lapeña a former Argentine Energy Secretary described the energy situation as "a structural crisis" because the gas transporting system and electricity generating plants are insufficient.

"This winter we'll see a more complicated situation than last year" stressed Mr. Lapeña who believes the governmen0t will be forced to invest growing funds for the purchase of alternative fuels. "We're facing a chronic energy shortage and until the government admits we need an additional gas pipeline and new electricity generating plant things will get worse before they begin improving".