RE: Trouble10 Jun 2026 17:46
AI summary FYI mistakes are possible., but it makes sense it's a powerful argument that tax payers are picking up the cost of the subsidy. Two opposing views on how to run an economy and Peter has come up against Paraguay unions before when using skilled oil rig workers from outside Paraguay. Will they come round, who knows, but I suspect compromises will be on the table can the government argument that its already agreed carry any weight. Looks like a Paraguay stand off.
Paraguay's Executive Branch officially revoked Decrees 5306 and 5307 (along with their April modifications, 5860 and others). President Santiago Peña's administration made the decision following pushback from engineering unions and industry sectors over preferential energy rates for large consumers, high-density computing, and green hydrogen.
Key Details & TimelineThe Decision: The government officially deactivated the decrees to safeguard the financial and technical sustainability of the state utility, ANDE (Administración Nacional de Electricidad).
The Catalyst: The decrees, originally signed in January 2026, established special long-term, low-cost electricity rates (such as sub-$$27/MWh deals) to attract heavy industries like cryptocurrency, data centers, and "convergent" green tech.
The Pushback: Engineers and labor unions (such as SITRANDE and the Unión de Ingenieros de la ANDE) strongly protested, arguing the decrees bypassed technical tariff autonomy and risked passing a multibillion-dollar deficit onto everyday taxpayers.
Current Status: In a press conference at Mburuvicha Róga, Cabinet Chief Javier Giménez and Minister Marco Riquelme confirmed the cancellation. However, they clarified that a major pre-existing contract with the British firm Atome Energy remains under review and protected, keeping tensions with certain utility workers ongoing.