Argentina’s newly appointed Energy and Mining Minister, Juan José Aranguren, declared a state of emergency for the National Electricity System yesterday, saying the national energy network was so deteriorated that “if we don’t take preventative measures, it could collapse.”
Energy and Mining Minsiter Juan José Aranguren (Photo via Prensa Argentina)
“This is meant not to alarm people, but to recognise a reality,” explained the minister in a press conference, adding that both short term and medium term measures need to be taken.
Aranguren said that the average number of power cuts experienced each year had increased sharply during 12 years of Kirchnerist governments. “In 2003 we had six hours of cuts per user per year and now it is 33. That shows deterioration,” he said.
Power cuts are more likely in areas supplied by Edesur than those supplied by Edenor, Aranguren explained. The countries two largest energy suppliers, which both operate in the Greater Buenos Aires area, are in “very different situations” in terms of “the state of their cables and transformers” and “how old their systems are”.
Aranguren, former CEO of the Argentine branch of oil giant Shell, claimed that the current state of the system is due to the fact that contracts with electricity suppliers have not been renegotiated for 14 years. He also highlighted “a tariff scheme that does not encourage a rational and efficient use of energy”, referring to the low prices Argentines pay for electricity thanks to extensive state subsidies.
On Monday the minister announced that there would be gradual changes to the energy subsidy system for individuals in order to improve the service, attract investment and reduced dependence on imports. However, he has so far declined to give further details on a timeline for subsidy removals and price increases.
“We will do this gradually, we cannot charge the market rate on 1st January or 1st March. Based on what the population can pay, we will do this in a gradual manner,” he said.
Specifics on plans to curb energy use have not been released, but Aranguren did not rule out planned power cuts, saying that if these were to occur the public would be kept informed via the web page of National Body for Energy Regulation (ENRE).
He said that they were not considering dimmer lighting in public buildings nor changes to the timezone in order to take advantage of day light hours, solutions implemented during previous energy shortages. Such measures would be ineffective, he said, given that the main burden on the electricity system is air conditioning.
“We believe that we must give an example and tell public buildings to avoid putting their air at 18 degrees and set it at 22, 23 or 24 degrees instead.”
Guidelines on responsible energy usage will be released soon by the Undersecretary for Energy Saving and Efficiency.
This week high temperatures across the country caused electricity demand to reach 23,000 megawatts. The highest demand on record occurred on 20th January 2014 with 24,034 megawatts. The system’s maximum capacity is 26,000 megawatts.
Buenos Aires during a blackout. (photo: Fede Salvo/Flickr)
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