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Paraguay: New regulation framework for Electric industry will seek to avoid private oligopoly

 |  April 26, 2016

An ambitious project for the creation of a regulatory framework for the Electric industry has now moved on to a Study and Revision phase, where the same will be analysed in order to avoid rushing from the current State-owned monopoly into a private oligopoly, said Ernesto Samaniego, former manager at the National Electricity Administration (ANDE).

Mr. Samaniego pointed to Argentina as a role model for their reform, calling it one of the best in the world. “At one point, because of the high supplies, energy prices in Argentina dropped by up to 50%. The prices fell so much that back in ’92, Argentineans tried to shut down the Yacyretá field, because the rates were unpayable.

The new regulation has proposed creating a regulator, who would be charged with overseeing the Electric industry’s activities, grant licenses and enforce any future regulation. The main objective is the protection of users’ interests, through high quality standards in service and supply of electricity.

Full Content: ABC Paraguay

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