Paraguay power company chief ousted over Atome contract dispute, union claims

Miguel Ángel Báez, a retired former technical manager, has been appointed as the new president of Paraguay's state power company, ANDE. His predecessor, Félix Sosa, was abruptly dismissed on July 27, 2026, after leading the company since August 2020. The union representing ANDE workers, Sitrande, asserts that Sosa's removal is a direct consequence of his refusal to grant favorable, frozen tariffs to the British company Atome.

Atome is seeking a 15-year contract with rates below ANDE's current pricing to establish a fertilizer and green hydrogen plant in Villeta. The company had publicly warned of a potential $650 million investment cancellation if its demands were not met. Sitrande's general secretary, Adolfo Villalba, stated that the change in leadership was due to "annoyance" with Sosa for not signing the contract.

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He did not sign the contract with Atome and that is why they changed him, there is no doubt about that. They got annoyed with President Sosa.

Despite the change in leadership, Sitrande remains firm in its stance. Villalba emphasized that the union will not concede to special pricing for private entities like Atome. He argued that no private energy provider would agree to freeze prices for 15 years, highlighting the financial implications for ANDE. The union, while valuing that a professional from within the company now leads ANDE, expressed concern over the political circumstances of Báez's appointment.

The new administration faces significant operational challenges beyond tariff negotiations, including personnel shortages and infrastructure demands within Paraguay's electrical system.

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We are very firm about giving away energy to any company like Atome and company. ANDE has its tariff and that must be respected. No private provider would withstand freezing their prices for 15 years.