MercoPress. South Atlantic News Agency

Uruguay prepares for a serious power shortage because of lack of rainfall

The reservoirs of the dams are at critical levels

Uruguay’s state-owned power company UTE, is spending over seven million dollars per day to contain the deficit originated in poor rainfall that threatens production from the country’s four main hydroelectric generating plants.

The government has also announced plans to promote power savings among residential clients and has warned that all government offices must comply with mandatory strict low-consumption measures otherwise “they will be closed”.

Meanwhile Uruguay has ensured a supply 24 hours per day for the next six months of 120MW from Brazil. The original request was higher but the south of Brazil is also suffering the consequences of months-long drought.

“Maybe the volume agreed is less than expected but under current circumstances for UTE this injection of power is crucial for our future planning”, said UTE president Gonzalo Casaravilla.

The average price for the Brazilian MWH has been estimated at 300 US dollars, if and when the lines to not have to cross Argentine territory in which case a toll must be added.

Likewise Uruguay’s Director from the Energy Department Ramon Mendez said that Brazil is also willing to provide more power during daytime if it has the sufficient surplus, and for which a mechanism to bill the MWH has been agreed.

Argentina meanwhile will be supplying UTE with 200MWH until the end of the month, which offers a time-span for rainfall to help refill the hydroelectric reservoirs, if the climate is benign and according to this time of the year.

Meanwhile the Ministry of Industry and Energy will be releasing a decree with strict electricity consumption standards in government offices “to preach with the example”, anticipated Energy director Mendez.

Air conditioners will have to operate below 21 degrees centigrade; buildings’ facades illumination will be reduced to the indispensable; all electric appliances must be plugged off after use and heating equipment must have quality certification.

In the first four months of the year Uruguay’s hydraulic generating deficit and a higher than estimated oil price have resulted in an additional expenditure for UTE of 500 million dollars.

UTE last year had a turnover of 1.52 billion dollars with domestic sales of 8.018 GW and power generation of 9.806 GW.