The director of the National Administration of Power Plants and State Transmissions (UTE) on behalf of the Broad Front, Fernanda Cardona, filed an appeal against the decree of the Executive power that enables private non-conventional renewable energy generators to supply long-term firm power in Uruguay.
Both Cardona and the director for Town meeting, Enrique Pees Bozhad already publicly expressed their criticism of the government decree that authorizes the entry of private companies not only for the generation of non-conventional renewable energy such as wind, photovoltaic solar and biomass; but also to its supply in large quantities and in the long term.
For directors, it is a “privatization decree” and that “the entry of private companies into energy generation” is being made as flexible as possible in a market that offers low production prices thanks to the investment of UTE. And this unfair competition will mean, in addition, a loss of large clients for the state company, as well as losses of up to 280 million dollars annually.
Faced with this situation, Cardona maintained through his Twitter account that “we will travel all the necessary paths to challenge a political decision that harms the public company and to each and every Uruguayan”. The comment accompanied the announcement of the filing of the appeal against the executive decree.
“At least put a transition cost as in any game rule that is changed. (…) For joint venture It’s very serious, joint venture he made observations and evacuated a hearing where he was against this”; she had requested during the week, in dialogue with Montevideo Noticias.
The government’s defense
The owner of the Ministry of Industry, Energy and Mining (MIEM), Omar Paganini, referred to the criticisms of the directors of the joint venture and considered that “they are painting a horror landscape just not to change.”
“The reaction that joint venture is going to lose all the big clients at once and that is going to be very bad is basically terrorism”, the minister maintained, in dialogue with El País. For Paganini, unlike what the directors of the state company postulate, the decree is “an opportunity” for private investment comes to the country and? joint venture “you can focus your investment is where they are most valuable, which is in the distribution and transmission network.”
Regarding the possibility that the government initiative opens for large UTE consumers to opt for contracts with private generators, Paganini assured that this cannot happen “overnight.” Likewise, the chief recalled that the company will charge tolls for the use of their networks, even in contracts between a private generator and a consumer, so the hypothetical loss of large customers could not be total either. What there will be, according to Paganini, is a greater competence which will, in turn, improve the electrical system as a whole from higher investments.
Finally, with respect to the potential rise in tariffs for UTE, The minister said that the rates are set by the Executive Power and pointed out that from the MIEM they are “convinced” that “the UTE accounts are going to be healthy” to be able to face the situation of decline of large customers. “There is no reason to say” that rates could go up, “it is a short-term vision which they are having. The eventual flight of customers is not going to be a stampede, it cannot be suddenly, today they would have nowhere to flee, it is a dynamic that is going to be slow, ”he said.
Source: Ambito
