The Lula government reached an agreement with Paraguay on the tariff to be charged for energy from the Itaipu plant, after months of negotiations. The countries also committed to premises to be followed regarding the matter. The current tariff, charged at $16.71 per kW per month, will rise to $19.28.
According to individuals involved in the negotiations, however, Brazilian consumers will not feel the increase because the difference will be refunded, through a sort of cashback from the binational to ENBpar (the Brazilian state company that holds a 50% stake in the hydroelectric plant).
The mechanism was developed to increase the amount received by the neighboring country in selling energy to its own consumers while Brazilians do not feel the tariff increase.
The value to be practiced this year and in the following calendars is still higher than what could be charged if only the operational cost of the plant were taken into account ($10.77), although it remains below what Paraguay originally demanded ($22.70).