Brazil and Paraguay reduce Itaipu's electricity tariff by 19,5%

The hydroelectric plant's Board of Directors adjusted the value from 20,75 US$/kW to 16,71 US$/kW for 2023
Brazil and Paraguay reduce Itaipu's electricity tariff by 19,5%
Dam at the Itaipu plant on the Paraná River, between Brazil and Paraguay. Photo: Disclosure/Itaipu

A Itaipu Binational defined, this Monday (17), the electricity service charge for the year 2023. The value set in 16,71 US$/kW it is 19,5% lower than the cost in 2022, which was 20,75 US$/kW. 

The definition took place in extraordinary reunion of the Board of Directors of Itaipu, at the headquarters of MME (Ministry of Mines and Energy), in Brasília (DF), and in video conference with Itaipu headquarters in Asunción, Paraguay.

During the meeting, the Brazilian and Paraguayan counselors in consensus on Cuse (Unit Cost of Electricity Services), that is, the cost of Itaipu's energy production.

Cuse basically considers exploration expenses (the operation, maintenance and management of the company and socio-environmental projects), Annex C charges (such as payment of royalties), in addition to loans and financing, including construction debt of the plant, which was fully paid in February this year.

In Brazil, Itaipu tariff is one of the components considered to define the Transfer Fee, applied to the consumer from ANEEL (National Electric Energy Agency).

The Transfer Tariff is formed by the sum of the Cuse, the remuneration paid to Paraguay for the energy transferred, among other components.

This value is approved by ANEEL and charged by ENBpar (Brazilian Nuclear and Binational Energy Holding Company) from energy distributors. 

Review

According to the Brazilian general director of Itaipu, Enio Verri, the reduction in tariff brings benefits to the consumer of energy without causing harm to the quality of the provision of services at Itaipu, such as the supply of clean and renewable energy for Brazil and Paraguay, in addition to maintaining socio-environmental projects and investments in the sustainable development of both countries.

“This agreement represents mutual respect between Brazil and Paraguay. We reached a binational consensus, with a significant reduction, maintaining Itaipu's capacity for social, environmental and infrastructure investments”, guaranteed Verri.

Itaipu Board

Itaipu's Board of Directors is made up of 12 advisors, six Brazilians and six Paraguayans, and two representatives from the Ministries of Foreign Affairs, one from each country.

The Council meets every two months or in extraordinary convocation, such as this Monday (17). 

With 20 generating units and 14 thousand MW of installed power, Itaipu Binacional is a world leader in the generation of clean and renewable energy, having produced, since 1984, 2,9 billion MWh.

In 2022, it was responsible for 8,6% of Brazil's electricity supply and 86,3% of Paraguay's. 

Photo by Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

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