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Chilean Private Sector Blamed
for Gas Crisis
Argentina advised Chile today
that instead of blaming it for
that country´s gas retentions,
Chile should look into what the
private enterprises charge
Chilean families for that fuel.
Argentina´s minister of
Planning, Julio De Vilo,
affirmed that the responsibility
for the hike in prices paid by
Chilean consumers does not lie
with his government, but in
those companies monopolizing
distribution to residential
consumers in Chile.
In statements to National
Televisión (TVN). De Vito
highlighted that private
enterprises buy gas from
Argentina at 1.80 dollars the
BTU (British Thermal Unit). This
is a unit of energy used in the
United States. It is also still
occasionally encountered in the
UK, in the context of older
heating and cooling systems. In
most other areas, it has been
replaced by the SI unit of
energy, the joule (J).
This BTU is then sold to its
consumers at over 24 dollars,
that is more than 20 times the
original price.
“More than analyzing the value
of retention of exports imposed
by Argentina, you have to check
what is paid for the gas at the
border by companies who
transport and distribute it in
Chile and how much they charge
consumers for the fuel”, said De
Vilo.
In response to the persistence
of journalists, the Argentinean
minister denied mentioning
companies participating in the
profitable business by their
names but indicated the issue
was dealt by president Nestor
Kirchner with Michelle Bachelet
during their encounter Friday
during the Mercosur summit in
Cordoba, Argentina.
The Chilean government rejected
a demand by several members of
parliament insisting on the need
to regulate gas domestic prices,
as Argentina does, to protect
the population from big business
speculation with a basic product
such as gas.
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