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Paraguay energy workers protest preferential tariffs for foreign firms
🇵🇾 Paraguay /Energy & Infrastructure

Paraguay energy workers protest preferential tariffs for foreign firms

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Paraguayan energy workers protested against preferential electricity tariffs for high-consumption companies, including the British firm Atome.
  • Union leaders argue these tariffs, established by recent decrees, will harm citizens and the state-owned ANDE energy company.
  • Atome plans to open an eco-fertilizer plant in 2028, and the debate centers on the energy price it would pay compared to ANDE's technical costs.

Workers from Paraguay's state-owned National Energy Administration (ANDE) protested against preferential electricity rates granted to companies with significant energy consumption, particularly citing the British firm Atome. Union officials contend that these special tariffs, introduced by decrees earlier this year, are designed to benefit foreign companies at the expense of Paraguayan citizens and ANDE itself.

We have a few traitors who want to sell our energy to the company Atome with a privileged contract that will harm citizens, the institution (ANDE), and lead us to bankruptcy.

— Adolfo VillalbaThe general secretary of the ANDE Workers' Union (Sitrande) Adolfo Villalba criticized the government's preferential energy tariffs for companies like Atome.

Adolfo Villalba, general secretary of the ANDE Workers' Union (Sitrande), expressed strong opposition, stating that the preferential contracts are akin to "selling our energy" under privileged terms. He warned that such agreements could lead to bankruptcy for the state company and negatively impact the public. The controversy specifically targets Atome, which is set to inaugurate an eco-fertilizer plant in 2028.

The core of the dispute lies in the proposed energy price for Atome, reportedly set at $30 per megawatt-hour for 15 years. Union leaders argue this is significantly lower than ANDE's technical tariff, which they claim is around $44 per megawatt-hour. Villalba asserted that if companies cannot afford the already low regional energy prices, they should seek operations elsewhere rather than expecting Paraguay to subsidize their ventures.

If they cannot pay the cost of energy, which is already the cheapest in the region, then unfortunately they have to go to another country. It cannot be that we have to give away the only thing we have for them to come and set up.

— Adolfo VillalbaVillalba emphasized that Paraguay should not subsidize energy costs for foreign companies.

ANDE President Félix Sosa acknowledged that Atome, which has had a contract with the company since 2022, requested a more predictable long-term rate. He indicated that discussions are ongoing to determine an appropriate tariff, noting that Atome's current rate is approximately $33 per megawatt-hour. Sosa assured that he would not sign any contract detrimental to ANDE. The planned Villeta plant will utilize hydroelectric power from the Itaipu dam, which Paraguay shares with Brazil.

I will not sign any contract that is detrimental to ANDE.

— Félix SosaANDE President Félix Sosa assured that he would protect the interests of the state energy company.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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