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Home New director of Itaipu announces increase in the plant's energy tariff, resulting in higher costs in the electricity bill of Brazilian consumers

New director of Itaipu announces increase in the plant's energy tariff, resulting in higher costs in the electricity bill of Brazilian consumers

18 March 2023 to 14: 28
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New director of Itaipu announces increase in the plant's energy tariff, resulting in higher costs in the electricity bill of Brazilian consumers
Photo: Itaipu Binacional/Reproduction

The Itaipu Power Plant has just announced an increase in its energy tariff. Measure, taken together with Paraguay, should impact the electricity bill of several consumers Brazilians.

This week, Enio Verri, the new director general of Itaipu, announced that the energy tariff for the Itaipu plant will be reviewed and will increase. O value of R$ 85,62 per kW has been in effect since January XNUMX of this year in the country, but it was unilaterally fixed by the Bolsonaro administration, without consulting the Paraguayan partner. The rate agreed between the two countries last year was R$ 109,73.

About 85% of the energy from the Itaipu Power Plant is consumed by Brazilians

When the value of energy tariff was announced, as a positive legacy from the past government, specialists in the energy sector were already warning that the current government would have the political burden of increasing the tariff, which should generate an increase in consumers' electricity bill.

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According to Verri in an interview, the big question is that Paraguay is unlikely to agree to lower it to R$ 85. The value of the energy tariff for the Itaipu plant is directly linked to the country's revenue, and they are in an electoral process, the situation is not the best for that. The executive points out that his role as director of the plant is to try, as much as possible, for the cheapest rate possible for the country.

Despite the fact that the energy generated by the Itaipu Power Plant is divided half and half between the two countries, Paraguay does not consume all of its share and, in the end, Brazilians in the South, Midwest and Southeast consume 85% of the energy distributed, with impacts in the electricity bill of these regions.

Verri took office last Thursday (16th), in a prestigious ceremony attended by industry technicians, politicians and government representatives from both sides of the border, including presidents Luiz Inácio Lula da Silva (PT) and Mario Abdo Benítez.

Annex C of the bilateral treaty

The general director reinforces that the council of the Itaipu Power Plant will be formed by a majority of ministers. On Tuesday, almost all the names were confirmed in a meeting with President Lula and ministers Rui Costa, Alexandre Padilha and Alexandre Silveira. Verri says he can't mention all the names because the president asked to take a final look, but until then the council was made up entirely of ministers. This choice seeks to show the importance of the plant in an important moment of negotiation.

Starting this year, the representatives of Brazil and Paraguay should participate in the renegotiation of the so-called Annex C of the bilateral treaty, which governs the financial structure of the company and the commercialization of the plant's energy. Negotiations should begin after the inauguration of the new president of Paraguay, which takes place in the month of August.

One of the topics that will be discussed in the renegotiation is whether there will be changes in the way of calculating the hydroelectric energy tariff, which directly impacts the electricity bill of several Brazilians. Currently, the unit does not make a profit and the amount that goes to the electricity bill should only cover the binational's expenses.

Itaipu's Board intends to review the management of the plant's socio-environmental mission

Verri points out that the new directors are still being chosen, but already confirms names like Carlos Carboni, lawyer for the Coordination Directorate, former chief of staff of the Civil House when Gleisi Hoffmann was minister.

Luiz Fernando Delazari, former Secretary of Security for Paraná, also took over the Legal Board. The new general director warns that he plans to review the management of the so-called socio-environmental mission of Itaipu. According to the director, the problem, in recent years, is that the infrastructure projects remained and were not carried out, in the same proportion as, previously, investments in the socio-environmental issue.

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