ANDE warns of tariff deficit and rejects private energy subsidies

Miguel Ángel Báez Reyes, president of Paraguay's National Electricity Administration (ANDE), has warned that the state utility faces significant financial obstacles due to the inability to implement realistic technical tariffs. He noted that selling energy below operating costs prevents the institution from securing the margins necessary to fund major infrastructure projects.

Báez Reyes stated that current revenues are insufficient to sustain the required work plan. While the entity currently executes between Gs. 300 and 400 million annually in infrastructure, the actual operational requirement is approximately Gs. 1,000 million, a figure deemed unfeasible without state sovereign guarantees.

Regarding private sector involvement, Báez Reyes rejected the idea of the state subsidizing large-scale private projects, specifically mentioning the Atome proposal. He argued that long-term contracts with reduced rates contradict global energy market trends, where prices are expected to rise over the next decade. He also suggested adopting consumption models similar to Brazil, using time-of-use tariffs to encourage efficiency.