Paraguay's National Electricity Administration (ANDE) has signaled that it may delay the application of the tariff adjustment for a portion of its customers until negotiations with Brazil on the new Annex C of the Itaipu Treaty are concluded. The state-owned company's president, engineer Félix Sosa, confirmed that the government is still analyzing the appropriate timing for the update, which has not occurred since 2017.
In recent statements, Sosa highlighted that the definition of Annex C — the document establishing the price formula for energy generated by the Itaipu Binational Hydroelectric Plant — is a determining factor for ANDE's financial health. “The final tariff that the system will receive will be the direct result of this negotiation,” he said. According to the Paraguayan Ministry of Foreign Affairs, the agreement is expected to be finalized by mid-year, following the full payment of the plant's construction debt in 2023.
The possibility of waiting for the new Annex C gains strength given ANDE's need to achieve a profitability of 8% to 10% on its assets, as provided for in current regulations, to ensure sustainability and expand the distribution network. Sosa acknowledged that the technical structure requires a gradual price adjustment, starting with large industrial consumers and excluding 90% of customers, but noted that a favorable agreement at Itaipu could inject additional resources or funds for structural investments, acting as a financial “buffer.”
The announcement of a possible tariff update has drawn criticism from users, who point to persistent power outages, and from industry experts, who advocate for reducing operational losses as a priority. Sosa, however, reiterated that the government is analyzing the matter calmly. “We need an adequate tariff to sustain investments, but one that allows us to maintain one of the most competitive tariffs in the region,” he said, adding that ANDE also seeks to ensure that Itaipu has resources to invest in new generation sources.