Paraguay Business Council Demands Solution to Energy Tariff Crisis

Paraguay's private sector is demanding immediate government action to resolve the uncertainty surrounding the annulment of energy tariff decrees. The Consejo Asesor Empresarial met with President Santiago Peña to express concerns that the administration's policy reversals are damaging the country's international credibility and jeopardizing a significant investment.

The core of the issue lies in the annulment of decrees that previously limited contracted power to 250 megawatts and offered preferential tariffs for high-intensity industries. This framework was crucial for Atome's $665 million green hydrogen project in Villeta. Atome's president, James Spalding, stated the investment will collapse unless the government guarantees a fixed tariff of $30 per megawatt-hour for 10 years.

Enrique Duarte, president of the Paraguayan Industrial Union (UIP), was blunt in his assessment. "What happened yesterday does not help at all. This is not about finding winners or losers; we all lose in a situation like this," he stated. Duarte emphasized that the business community expects the national electricity company (ANDE) to resolve the situation quickly to remove it from the national and international agenda, as it harms Paraguay's image.

"We complain about people's money, consumption, and wages, but quality employment will only come from these large investments," Duarte added. The government's indecision not only affects current businesses but also deters future investment, potentially impacting Paraguay's recently achieved second investment grade status.