MercoPress. South Atlantic News Agency

Former Paraguayan President welcomes Milei's Yacyretá tariff adjustment

Duarte Frutos highlighted that these funds were crucial to finance works, hospitals, university scholarships, and social programs

Former Paraguayan President and Yacyretá Binational Entity (EBY) Director Nicanor Duarte Frutos said Argentine President Javier Milei's decree adjusting the energy tariff from US$ 17 to US$ 28 per megawatt-hour (MWh) was the right thing to do and insisted that the measure did not violate any treaty. It rather establishes an effective charge for energy consumption to be paid by his country's National Electricity Administration (ANDE) and the Wholesale Electricity Market Administration Company (CAMMESA).

“If this is complied with, Yacyretá's annual billing would be in the order of US$ 570 million. If we divide it in two, the right bank would have around US$ 270 million per year,” said Duarte Frutos, who noted that these funds were crucial to finance works, hospitals, university scholarships, and social programs.

However, he disagreed with President Santiago Peña's decision to incorporate the Yacyretá scholarships into a national program, considering it a mistake.

Addressing criticisms labeling the agreement as a “betrayal,” Duarte Frutos dismissed them as politically motivated. “There is a political interest in raising this as a betrayal, and there is ignorance of national interests. When politicians or technicians start to lose objectivity, they become vulgar comedians,” he pointed out. “This is an agreement that comes to fix many things and that has a time of 5 years until Annex C is addressed again,” he elaborated.

He also defended the appointment of Miguel María Olmedo to Yacyretá’s Board of Directors, stating that the presence of a physician in the entity is not inappropriate. “The presence of a physician on the Yacyretá Board does not constitute an aberration. It is true, it will depend on the will of the appointee,” he maintained.

Duarte Frutos also stressed that Yacyretá and Itaipu should not be viewed solely as energy producers but as institutions contributing to national development in health and education.

Milei's measure aligns with the 1973 Yacyretá Treaty, reinforcing equal energy rights and co-ownership between the two nations. It allows for coordinated energy withdrawal and economic compensation for unused energy. Paraguay’s Yacyretá head, Luis Benítez, welcomed the tariff increase, highlighting its role in addressing financial challenges, stabilizing budgets, and supporting projects like Aña Cuá.

“The Yacyretá Binational Entity values this step as part of the technical and energy cooperation process between Paraguay and Argentina, reaffirming its commitment to continue working in favor of regional integration, sustainable development, and the mutual benefit of both countries,” the EBY said in a statement.