Hernandarias: Itaipu Binacional provided information on Monday about the cost per unit of electricity that will apply to ANDE and ENBPar in 2023. The tariff was set at US$16.71 per kilowatt/month, which is an intermediate level between Paraguay’s and Brazil’s demands.
The tariff set by the Board of Directors for 2023 was set at US$16.71 per kilowatt/month for the energy consumers, the National Electricity Administration (ANDE) and the Brazilian Nuclear and Binational Energy Holding Company (ENBPar).
The two countries have been bickering since 2021 and through much of 2022 over how to set that year’s energy tariff, eventually resulting in a tentative agreement of $20.75 per kilowatt/month.
Paraguay requested that this amount should remain unchanged, while Brazil proposed a reduction to just over US$12 Kw/month. Finally, an intermediate value was agreed that will apply for this year.
At the same time as setting the 2023 tariff, the Itaipu authorities agreed that each margin (Paraguay and Brazil) will have access to an amount in excess of $400 million to carry out projects and ensure the continuity of high-impact works and programs to ensure for the population. Before paying off the Itaipu debt, that amount was US$200 million for each side.
In this context, Paraguay – in addition to its request to maintain the tariff – calculated that after the full payment of the hydroelectric power plant debt, funds of US$ 1 billion would be available for each side for socio-environmental works.
However, local authorities assured that the $400 million will guarantee the continuity of the major projects that will benefit the country. At the same time, this sub-tariff will allow ANDE to save approximately $100 million per year to be used to improve the distribution network.
For Félix Sosa, the head of ANDE, this intermediate tariff is important because it does not apply 100% of the values set out in Appendix C. “Paraguay will be in a better position to revise Annex C. The Paraguayan electricity system will be strengthened technically and financially,” he said.
The new agreement also guarantees the revenues, which will be remitted monthly to both countries as royalties, profits and compensation payments, as specified in Annex C of the contract and the relevant reversal notes.
Both countries are expected to start dialogue on Annex C of the treaty and the corresponding reversal notes from August this year.
For supporters of maintaining the tariff, the reduction in the tariff is more beneficial for Brazil, since ENBPar receives 80% of the electricity generated by Itaipú Binacional.
Newspaper / Itaipú
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