Energy and Fuel Secretariat

ENERGIA AND COMBUSTIBLES

Decree No. 965/1966

GAS. - New selling price.

Bs. As., 11/2/66

VISTO file No. 511.146/65 of the Secretary of State for Energy and Fuels, by which Gas of the State proposes the modification of the current tariff system for the provision of services to his office, and

CONSIDERING:

That the proposed modifications originate from the increases produced in the different fields of exploitation, such as raw materials, transports and various services;

That it is necessary — in terms of rates for large consumptions — to maintain the relationship with prices authorized for other fuels, for the purpose of observing the proper balance in the market;

That in order not to distort the same, it is up to the above mentioned rates to govern from the date the prices of the fuel - oil were fixed;

That with respect to the gas prices for the production of electricity for the provision of public services, it is appropriate to maintain the equalization at the price that the usins pay for the fuel-oil to the equivalence of higher heat power;

That it is not appropriate to grant the preferential price for electric public service usins when the consumption of natural gas replaces in the respective generation equipment, to liquid fuels lighter than the fuel - oil;

That the proposed increase for liquefied gas is fully justified by being in a large proportion of imported products, not on the other hand a greater impact on the family economy;

Notwithstanding the tariff increases, it is necessary to provide the State Gas company with the supplementary financial means for the realization of the property investment programmes it is responsible for;

The granting of credit through the formal banking system and other State entities will be necessary for this purpose;

Notwithstanding the expected increases in gas rates by nets, it is considered prudent to maintain the current minimum billings to date;

For this reason, and attentive to what the Secretariat of State for Energy and Fuel;

The President of the Argentine Nation,

Decrete:

Article 1 — Apply for the services of natural gas by networks of Gas of the State the following rates, the application of which shall apply from the billing issued on 14 February of the current year; with the exceptions indicated in each case:

I. Locations north of the Colorado River, except the provinces of Mendoza and Salta: Eight pesos with ten cents national currency (m$n. 8,10), the unit of 9,300 calories for all consumptions of up to two hundred (200) units/day.

Consumers whose average exceeds two hundred (200) units/day of 9,300 calories, which occur from 7 January of the current year, will be billed according to the scales established in annexed table No. 1, which is part of this decree.

II. Provinces of Mendoza and Salta: Six pesos with forty cents national currency (m$n. 6,40), the unit of 9,300 calories, for all consumptions of up to two hundred (200) units/day.

Consumers whose average exceeds two hundred (200) units/day of 9,300 calories, which occur from 7 January of the current year, will be billed according to the scales set out in annexed table No. 2, which is part of this decree.

III. (a) Locations south of the Colorado River, except Cutral-Có, Comodoro Rivadavia and Rio Grande: Four pesos with eighty-six cents national currency (m$n. 4,86) the unit of 9,300 calories.

The consumptions that occur from 7 January of the current year, which exceed the base of five hundred (500) units/day average, of 9,300 calories, sa will bill at the price of four pesos with eighty-six cents national currency (m$4.86), up to that basic amount, and the amount of four pesos with thirty-five cents national currency (m$n. 4,35), each surplus unit.

(b) Comodoro Rivadavia and Rio Grande: Three pesos with six cents national currency (m$n. 3.06), the unit of 9.300 calories.

(c) Cutral-Có: Two pesos with forty-six cents national currency (m$n. 2,46), the unit of 9,300 calories.

The rates of points (b) and (c) shall govern for current consumers, as well as for those who in the future are incorporated into service, provided that their consumption is not intended for commercial and/or industrial activities.

Consumers of a commercial or industrial nature who have been incorporated in accordance with article 2, paragraph III, of Decree No. 6.152/60 shall pay the rates specified by article 2 of this decree.

Art. 2° — Note in four pesos with thirty-five cents national currency (m$n. 4,35), the unit rate of 9,300 calories for new consumers who are incorporated into service in the localities of Comodoro Rivadavia, Rio Grande and Cutral-Có, whose consumptions are intended for commercial and/or industrial activities.

This rate is based on the consumption that has occurred since 7 January of the current year.

Art. 3° — Manage for the consumption of gas for the production of energy in public service power plants, the rate resulting from the equating at the price that these abonen for the fuel-oil to the equivalence of higher heat power.

Art. 4° — The award of the above-mentioned preferential price is excepted when the consumption of natural gas replaces in the respective generating equipments the lighter liquid fuels than the fuel-oil. In these cases you will govern the corresponding rate for industrial consumptions.

Art. 5° — Look for the whole country with the same validity as that determined in Article 1 of this Decree, the ten pesos rate with forty-six cents national currency (m$n. 10,46), per unit of 9,300 calories for propane gas and/or indiluted butane distributed by nets, whatever the type of consumption for which it is intended.

Art. 6° — Note the rate of nineteen pesos with eighty cents national currency (m$n. 19,80), the kilogram, for liquefied gas services distributed in cylinders by Gas of the State, from the date established by article 1.

Art. 7° — E! Ministry of the Economy of the Nation shall take the necessary measures to provide for the establishment of short- and medium-term credit operations through the agencies of the official banking system and/or other institutions of its dependence, to the extent necessary to complement the funding required for the implementation of the State's Gas heritage investment programmes.

Art. 8° — Keep the remaining provisions contained in Decrees Nos. 6767/62, 962/63 and 892/65 which are not expressly amended by this Decree.

Art. 9° — The present decree will be endorsed by the Minister Secretary in the Department of Economics and signed by the Secretary of State for Energy and Fuels.

Art. 10. - Communicate, publish, give to the National Directorate of the Official Register and archvese.