Argentina power watch: Price hikes, hydro levels

Argentina has hiked prices for large private sector electricity clients supplied directly by Buenos Aires metropolitan area distributors Edenor and Edesur.

Under a price review, state news agency Télam reported, the rate applicable to around 2,000 large clients will rise 24%. This follows an increase of 90% earlier in the year that applied to non-residential users.

Prices remain unchanged for residential users following a 9% increase in May.

The rise in the final electricity bills that the large users have to pay will be under 16%, local media outlet EconoJournal reported federal energy department sources as saying. 

Annual inflation in Argentina was running at 50% in June.

Cash-strapped Argentina has a hefty power sector subsidy bill. Subsidies are funneled through wholesale power market administrator Cammesa. 

In January-May, Cammesa received 170bn pesos (US$1.75bn) in government transfers, up 79% year-on-year and accounting for 74% of associated funds utilized, local think tank the General Mosconi energy institute said in a report, citing data from budget and financial administration association ASAP.

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Hydroelectric reservoir levels in the Paraná river basin are “far below normal,” EBY, the binational joint venture that operates the Yacyretá hydroelectric power plant on the Argentina-Paraguay border, said.

The reservoirs – in Brazilian territory – are at about 35% of capacity, down from 52% last year.

EBY expects levels to keep dropping and for this to have an impact on power generation.

The river flow rate at the dam complex in July averaged 6,200m3/s, the seventh lowest reading for the month on record for 1901-2020, EBY said.

The average flow rate for 2020 was 9,300m3/s, the eighth lowest reading over the 119-year period.

The plant is operating 12 of its 20 turbines on account of hydrological conditions, using under 1.1GW of its 3.2GW of installed capacity, Télam reported.

In related news, Argentina recently authorized an increase in imports of diesel this year.

Via a decree, the government lifted the ceiling on imports of the fuel by 700,000m3.

The decree cited the need to cover demand spikes by the electricity generation sector.

Argentina’s hydroelectricity production in June was 1,777GWh, down 34% year-on-year, according to Cammesa. Overall thermoelectric generation in June was 8,267GWh, up 25.7% year-on-year.