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The Director of the Itaipu Hydroelectric Plant Informed That the Drop in the Electricity Bill Will Occur with the Settlement of the Debt for the Construction of the Plant
General João Francisco Ferreira, the Brazilian Director-General of the Itaipu Binacional Hydroelectric Plant, announced yesterday that the electricity bill will see relief next year due to the settlement of the debt incurred for the construction of the plant. The total payment for the work will conclude in 2023; however, the management of the hydroelectric plant stated that the impact on the electricity bill for Brazilians may occur as soon as next year.
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Announcement of the Reduction of the Electricity Bill with the Settlement of the Debt of the Itaipu Plant
The Brazilian Director-General made the announcement yesterday through an article (the day the Itaipu Plant celebrated 37 years of energy generation). During this period, the plant has already accumulated production of nearly 2.8 billion megawatt-hours. All the energy already produced by the plant would be enough to light up the entire world for about 45 days.
The Itaipu plant is responsible for nearly 15% of all electricity consumed in Brazil and 90% of Paraguay’s electricity consumption. General João Francisco Ferreira states that with the reduction in tariffs (which will influence the electricity bill), Brazil and Paraguay will be able to attract more investments and create more job opportunities.
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The management of the Itaipu plant informed G1 that, starting next year, the plant’s tariff will be reduced by up to R$ 4 billion. Already in 2023, this reduction will reach R$ 10 billion. The general states that from now on, the plant will work together with the government so that, as early as 2022, there can be a significant reduction in the Itaipu tariff. Starting in 2023, when the construction debts are fully settled, the reduction in tariff will be even greater, significantly influencing the electricity bills of Brazilians.
Costs of the Itaipu Hydroelectric Plant
The management of the Itaipu plant indicated that currently, the payment of the construction debt corresponds to nearly 70% of the company’s costs and that the reduction in tariffs will not affect other costs such as the execution of works and royalties. The general explains that the drop in tariffs, besides being an effective compensation for those who paid for the construction of this massive work, will also be very important for the economic recovery.
Aneel (National Electricity Agency) is the agency that determines the electricity tariff values for consumers, and at this point, it is not possible to know what the effective reduction in the electricity bill will be with the potential change in the Itaipu plant’s tariff.
Itaipu Council Has New Name Appointed by President Jair Bolsonaro
President Jair Messias Bolsonaro appointed today (05/06) Cida Borghetti, former governor of the state of Paraná, to take over the Board of Directors of the Itaipu Binacional Plant. Cida will have a term until May 16, 2024, filling the vacancy left by former minister Carlos Marun, who was dismissed.
Cida Borghetti assumed the position of governor of the state of Paraná in April 2018, when then-governor Beto Richa resigned to run for a Senate seat. This is the third change in the Itaipu Plant Board in less than ten days. On April 28, Eletrobras President Rodrigo Limp replaced Wilson Ferreira Júnior. On April 30, Otávio Brandelli took over the position and was soon replaced by Carlos Alberto Franco França.
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