Brazil and Paraguay agree on the first Itaipú tariff reduction in 13 years

Brazil and Paraguay agree on the first Itaipú tariff reduction in 13 years

Sao Paulo (Globe Live Media).– The authorities of Brazil and Paraguay announced this Tuesday an agreement to lower the rate for this year of the energy generated by the Itaipu binational hydroelectric plant by 8.2%, in the first reduction of this type since 2009.

“Paraguay and Brazil ratify the commitment to an open and permanent dialogue, always betting on the best use of the energy resource supplied by Itaipu,” the Brazilian Ministry of Mines and Energy said in a note.

The Brazilian party defended establishing a value of 18.97 dollars per kilowatt, while the Paraguayan party was committed to maintaining 22.60 dollars per kilowatt, “expanding the value available for operating expenses,” the information said.

In the end, they reached a compromise and agreed on a unit cost of electricity services for this year of $20.75 per kilowatt.

“This is the first reduction in Itaipu’s rate after thirteen years, allowing the reduction of the electricity bill of the consumer of the energy generated by the hydroelectric plant,” said the Brazilian Ministry of Mines and Energy.

Before this agreement, the reduction of the Itaipu rate had begun to be discussed previously by the president of Brazil, Jair Bolsonaro, and his Paraguayan counterpart, Mario Abdo Benítez, in different meetings.

In this way, the two South American countries close one of the points pending renegotiation within the founding treaty of the Itaipu binational company, which will be 50 years old in 2023.

With 20 generating units and 14 gigawatts of installed power, Itaipu supplies about 10.8% of the energy consumed in Brazil and 88.5% of Paraguayan consumption.

Melissa Galbraith
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