On Monday (17), ITAIPU Binacional set the electricity service tariff for the 2023 exercise. The rate of 16.71 US$/kW is 19.5% lower than the cost charged in 2022, which was 20.75 US$/kW. The decision was made during an extraordinary meeting of the Board of Directors of Itaipu, at the headquarters of the Ministry of Mines and Energy (MME) in Brasília (DF), and via video conference with the Itaipu headquarters in Asunción, Paraguay.
During the meeting, Brazilian and Paraguayan counselors reached a consensus on the Unit Cost of Electricity Services (Cuse), which is the cost for energy production at Itaipu. The Cuse takes into consideration, among other factors, the construction debt of the hydroelectric plant, which was paid off on February 28 of this year, with a total payment of US$ 63.5 billion.
Therefore, the reduction of Itaipu’s tariff reflects the new cost scenario of the binational dam, benefiting energy consumers without compromising the quality of Itaipu’s services, such as the supply of clean and renewable energy to Brazil and Paraguay, the maintenance of socio-environmental projects, and investments in sustainable development in both countries.
“This agreement means mutual respect between Brazil and Paraguay. We reached a binational consensus with a significant reduction, maintaining Itaipu’s capacity for social, environmental, and infrastructure investments, according to the guidelines of President Lula’s government,” ensured Itaipu’s Brazilian General Director, Enio Verri.
The tariff is charged to buying entities, the Brazilian Nuclear and Binational Energy Holdings Company (ENBPar), and Paraguay’s National Electricity Administration (Ande). In Brazil, the Itaipu tariff is one of the elements considered for setting the Resale Tariff applied to consumers by the National Electric Energy Agency (Aneel).
First meeting
The Board of Directors meeting on April 6th was the first with the presence of the new members appointed by President Luiz Inácio Lula da Silva. During the meeting, the ministers Alexandre Silveira de Oliveira (Mines and Energy), Fernando Haddad (Finance), Esther Dweck (Management and Innovation in Public Services), Rui Costa (Chief of Staff) and Michele Caputo Neto took the oath of office. The Minister of Foreign Affairs, Ambassador Mauro Vieira, is also a member of the Board, but did not participate in the meeting. One Brazilian council member is still to be appointed.
The Board of Directors is composed of 12 council members, six Brazilians and six Paraguayans, and two representatives from the Ministries of Foreign Affairs, one from each country. The Board meets every two months or in extraordinary sessions, such as this one on Monday (April 17). The term of the Brazilian council members runs until May 16, 2024.
Understand
Itaipu Tariff, called Cuse – Unit Cost of Electricity Services – considers operating expenses (operation, maintenance, and management of the company and socio-environmental projects), Annex C charges (such as payment of royalties), as well as loans and financing (including the construction debt of the plant, which was fully paid in February of this year).
The Resale Tariff, in Brazil, is made up by the sum of Cuse, the remuneration paid to Paraguay for the energy supplied, among other components. This value is approved by the National Electric Energy Agency (Aneel) and charged by the Brazilian Nuclear and Binational Energy Holdings Company (ENBPar) from energy distributors.
