Paraguay's Energy Sector Cautions Against Tariff Favoritism in New Regulations

Paraguay's private sector has reacted positively to the recent regulation of Law 7599 on non-conventional renewable energy, viewing it as a significant opportunity for mass self-generation and a potential mitigator of medium-term energy deficits. The new framework allows large investment projects to establish their own generation systems, covering their demands and selling surplus energy back into the national grid.

This mechanism opens the door for international capital to inject electricity into the system, utilizing the transmission lines of the National Electricity Administration (ANDE) for a fee. While this scheme is considered highly beneficial for large-scale generation, optimism is tempered by persistent concerns regarding the government's pricing policies for high-technology sectors.

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We were very concerned about the decrees. It seems complicated to give priority to certain levels of industries.

The Chamber of Electromechanical Works Construction Companies (CECOEL) has voiced apprehension, stating that modifications to the tariff decrees remain open to interpretation and have not addressed the core issues. CECOEL President Ing. Gianmarco Felippo argues against creating a system that favors specific economic segments with privileges over a strategic resource that is becoming scarce and is of declining quality for other productive activities.

CECOEL warns that granting preferential tariffs or exclusive access to power raises technical alarms about the sustainability of the interconnected system in the medium term. The organization contends that prioritizing certain industries for energy consumption at preferential rates is neither fair nor sustainable, potentially leaving other sectors without adequate power. They emphasize that opportunities should be equal for all, especially concerning a resource as critical as energy.

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Opportunities must be the same for everyone.