MercoPress. South Atlantic News Agency

Itaipú: No progress after Presidents of Brazil and Paraguay meet

Peña and Lula will meet again to discuss the price of electricity from itaipú

Talks between Presidents Luiz Inácio Lula da Silva of Brazil and Santiago Peña of Paraguay reached nowhere Monday in Brasilia as both leaders failed to reach an agreement over the Itaipú dam electricity fares. However, dialogue will continue.

In a wishful joint declaration, the Itaipú 2024 rates were left for a future meeting, together with the discussions about Annex C of the hydroelectric power plant Treaty.

Lula said in a press conference at the Itamaraty Palace that there were still “discrepancies” regarding the fares to be applied this year for the sale of energy from the dam to the distribution companies in each nation. The Brazilian president also highlighted that 2024 was a “wonderful year for both countries because we finally finished paying the debt we had when we started the construction of Itaipú, 50 years ago.”

Peña said that building the dam and paying off the investment was an achievement by both countries. He added that the new challenge ahead was the production of sustainable electricity. “In Paraguay and Brazil we are world champions in this,” he underlined.

Brazil's National Electric Energy Agency (Aneel) estimated the price should stand at US$ 17.66 per KW/month from the current one is US$ 16.71 per KW/month effective as of Jan. 1, 2024. Paraguay intends to increase that figure.

He also recalled that Paraguay now holds the pro tempore presidency of Mercosur and Brazil the presidency of the G-20, which makes them relevant players in a globalized world.

Peña arrived in Brasilia after attending the troubled inauguration in Guatemala of President Bernardo Arévalo and Vice President Karin Herrera. The ceremony was delayed by supporters of the outgoing head of state Alejandro Giammattei, who rejected Arévalo's election.

“The will of the people is respected, that is why we raise our voice in defense of democracy. The sovereign people of Guatemala expressed their will at the ballot box and it is inadmissible to interrupt this process. This will must be respected,” said Peña then.