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Economy Daniel Vila assured that the electricity rate will continue to increase and analyzed the Milei government - Infobae

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Daniel Vila assured that the electricity rate will continue to increase and analyzed the Milei government - Infobae​


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April 22, 2024

The businessman, a shareholder in a controlling company of Edenor, anticipated that starting in May there will be monthly adjustments in the rate. In addition, he reviewed the first months of the Government's management


Daniel Vila: "The light will continue to increase"

Daniel Vila , shareholder of Edelcos , the controlling company of the energy distributor Edenor , anticipated that electricity will continue to increase.


The raises each of you received in April reflect the February raise authorization. And on May 1, a new rate comes into effect that takes into account the consumer price index, the increase in wages, and the wholesale price index. The government has decided that this increase will be monthly: it will be updated month by month ,” reported the businessman when interviewed on the Desayuno Americano program on the América channel.


Vila explained that companies in the sector are going through a complex situation due to a network of decisions that recent governments have adopted that have caused, for example, the State to accumulate a debt of 1.2 billion dollars with Edenor.

“The government subsidizes energy generators. The distributor, as is the case with Edenor or Edesur, has a percentage already determined in the concession contract that is called VAD and it is a formula that does not change. Since the generator is subsidized, the distributor is going to lose. What Edenor charges you in your home is not enough to pay its costs, salaries, taxes, network maintenance, you do not make investments,” he introduced.


And he developed: “What do we distributors finance ourselves with all these years? With the intermediary, which is CAMMESA, a mixed company that mediates the purchase and sale of energy. The companies paid part of it and with the other we faced salaries, costs, and maintenance works. That generated a lot of debt that companies have. Edenor has a debt with CAMMESA of 760 million dollars. Now, by not recognizing that formula in the concession contract, the State has also generated a credit for the companies, which today is 1,200 million dollars. Consequently: we owe 760 million dollars and they owe us 1,200 million.”


The businessman estimated that the Government's decision to postpone the payment of debts, as in the case of Edenor, contributes to the surplus that Javier Milei has achieved since he became President. In fact, tonight the President will provide a chain message to highlight the numbers of economic management. According to the vision of Vila -and other specialists-, the elimination of the fiscal deficit is the result of the decision to freeze public works, not pay debts, liquefy salaries and pensions.

“If it's not a business and they owe you so much, why are you still a shareholder in the company?” asked Pamela David, host of the program, following a question asked by a viewer. “ Yes, it is business, of course, what happens is that the State did not comply and does not comply with the formula that the concession contract has, which is the Added Value of Distribution; To the extent that the State complies with that, it is a business ,” Vila replied.

Pamela David also asked what will happen to users who begin not paying their bills due to the increases. " We provide the service and we comply with the contract, someone is going to have to pay for the electricity: the consumer or the State... or the companies will go bankrupt and we will be left without electricity ," said one of the owners. from the America channel.

Vila also spoke out in favor of maintaining the subsidy scheme to protect vulnerable sectors. It is an indirect way to increase the salary of that sector, he indicated. “Now in my case, I live in Palermo and have a large house, they don't have to subsidize me, I will have to save energy and do certain things so that the bill is not so large,” she exemplified.

Daniel Vila's opinion on Milei's government​


Daniel Vila analyzes the government of Javier Milei
When asked about the first months of Javier Milei's administration, Vila took a negative view of the economy. “I believe that at this moment what there is is a large transfer of resources from the private sector to the public sector, salaries do not rise, SMEs close, companies do not earn, and those who have dollars are changing them into pesos ; Those dollars go to the Central Bank and they are giving you pesos. Entrepreneurs who do not invest also look for their savings, resources that they have saved and change them ,” he explained.

At some point people are going to get tired of this mechanism or they are not going to have more dollars ,” he concluded.

And he pointed out: “ What I see in this government is that there is no plan, we don't know where we are going, what we know there is a big cut .”

I cut you, I cut you, I cut you, I liquidate your salary. The surplus is not a surplus either because if I tell you that Edenor is owed 1.2 billion dollars, then that is not real. They are going to have to take advantage of that fiscal surplus to pay those who owe them. The salary does not increase because economic activity is recessive, there is no movement, there is no consumption, there is no investment, which is the most serious thing and it is not seen that in the short term there will be investment ,” he continued.

Vila said that he knows Milei having crossed paths with him in the programs where the economist attended as a guest, but they do not have a fluid relationship. He said that he hopes that as President he will work to unite Argentines: “ He should have the obligation to do so, but I see that every day what he does is divide us more; We live from crack to crack and that's how it goes for us .”

“Can it turn out well? God willing, I hope, no one wants things to go wrong, but when you see a patient with a temperature, runny nose, his body hurts... surely he has the flu or cold, but he is not healthy. This doctor, this president we have, in addition to bringing us together, has to tell us where we are going. “It is not enough to cut, adjust and fight ,” he concluded.

“Why did Milei win?” they asked him. “There was a fatigue with Kirchnerism, there were many years of government, 12 years of Kirchnerism plus 4 of Alberto, that is tiring, especially when there is such a hard and biased position. Kirchnerism sowed a lot of hatred. This division in Argentina starts with 125, when the fight between Néstor Kirchner and Clarín begins. And there we Argentines began to divide and go through years of division and hatred. That annoyance that we Argentines felt led us to seek radical change. A 180 degree turn, even if it is something new, unknown, we wanted to change. We didn't want anything similar to what there was. With the message of caste, the president won the election,” he replied.
 
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