The president of the National Administration of Power Plants and State Transmissions (UTE), Silvia Emaldi, argued that the state company Uruguay “is working on a new competition framework” from the authorization of the Executive power for private generators to provide renewable energy not conventional; but that this will not have an impact on the rates.
The decree of Ministry of Industry, Energy and Mining (MIEM) that enabled private non-conventional renewable energy generators to continuously supply the service to large consumers generated controversy and accusations of wanting to make it more flexible—or move towards a privatization- the sector in the country. Tensions resurfaced with the news that Coca-Cola Femsa Uruguay is one of the first major customers you will lose UTE, while it will work with the renewable energy that will provide the farm with photovoltaic panels Albisu -a private company- Leap.
Asked about it, Emaldi maintained that it is “a gradual process” and that “UTE is working on a new competition framework”.
“We believe that the generation offers that the company has from hydraulics, thermal, solar and wind and biomass are an offer that guarantees a service 24 hours a day, 365 days a year and, well, we are in this framework of competition trying to lead as we have always done more value to all customersto households, to small and medium-sized companies and also to large companies that in this case may choose to have the energy provided by a private generator within a framework that is limited to some 60 companies,” explained the president of joint venture at a press conference.
Regarding the criticism that the decision of the Executive Power has received, the hierarch pointed out that “the privatization occurred in the previous period when joint venture incorporated 45% of its generation of private sources, of private, wind, solar and biomass generators that were incorporated between 2012 and 2018″. For Emladi, “a new path is opened for the competence”. “But we keep betting on generate better deals for all our clients and that they choose us”, he added.
The impact of the new decree on rates
An issue that generated concern from the possible loss of customers of joint venture was the impact that this new scenario can have on the rates for the rest of the consumers, while the state company You will also lose large amounts of income. —considering the weight of customers who may opt for private generators as energy providers.
In this regard, Emaldi pointed out that “they are not expected to increase” the rates. “What is true, like any company, we never like to lose clients but, in turn, we are gaining many others because consumption in the country continues to grow“, he stressed, adding that “the annual growth in consumption in the country is of the order of 2% and we are in figures between 3% and 5%. This year we plan to close with 5%.”
Along the same lines, the chief specified that “we are gaining in other uses and we are placing a very strong focus on the replacement of fossil fuels. For example, with the introduction of air conditioning in greater volume, heat pumps, electric mobility and, without a doubt, also with offers that we will make to large customers as well.”
On the other hand, the state company will continue to obtain income even from those businesses between private parties, since it will charge a Toll for the use of his transmission and distribution network, which remains monopolistic. “What is enabled from the law of the regulatory framework is that generation is no longer just the responsibility of joint venture but of other actors”, clarified Emaldi.
Source: Ambito
