The legislative advance to charge hydroelectric companies a fee for the use of water from the Limay and Neuquén rivers It could cause problems if there is no agreement in Neuquén and Río Negro on the price, the former representative of the Interjurisdictional Authority of Cuencas (AIC) warned yesterday. Elias Sapag. During a presentation in the Energy Commission of the Legislature, the engineer warned both provinces should enact “mirror” laws and was critical of the initiative that has already been approved in the neighboring province, at the request of Governor Alberto Weretilneck.
The law passed in Río Negro established that the collection in up to “5% of the amount invoiced for any sale that the concessionaire of the use” of public waters, while the initiative being debated in Neuquén determines that the price will be set per cubic meter.
Both Elías Sapag and Ricardo Cazeneuvewho were part of the leadership of the state-owned Emhidro, pointed out in their speech that, Possibly, the national government will choose to grant the current concessionaire companies again the operation and maintenance of the dams located on both basins, a decision that will be detrimental to being able to generate a mixed company together with the national government and the province of Río Negro.
“The decision cannot be deferred beyond the month of August, the last month until which the national State can continue to extend the expired terms of each concession,” warned Cazeneuve, who stressed that, in the event that the province is marginalized from the possibility of accessing the income generated by hydroelectric uses, it should be urged that the new concession contract establish a price for the use of the resource intended for energy generation.
On this point, Sapag assured that its collection is possible by remembering that This type of fee is charged to oil companies, irrigation companies and cities.“why we won’t be able to charge the hydroelectric plants,” he analyzed.
Both guests estimated that the province can to collect a total of 47.3 million dollars a year for this concept, a value “much higher” than what enters Neuquén in royalties. In the 2024 budget, it was estimated to raise about 6.9 billion pesos in this concept.
Cazeneuve explained that, Through both basins, nearly 50,000 million cubic meters circulate per year. and that, if the turbine generation that would correspond to Neuquén is calculated, the volume of cubic meters would amount to 31,536 million.
On this amount, the cost in dollars of the cubic meter should be multiplied, which is equivalent to $0.0015. The guest highlighted that the result is equivalent to 47 million dollars per year and that its impact on the final cost of the electricity rate would be around 5.9 dollars for each megawatt/hour. “It is a high number, but it does not contrast with the new electricity rate that the national government plans to implement,” he indicated.
The canon could finance Cerro Rayoso
Sapag referred to the need to allocate the resources generated by the collection of the fee to the construction of new dams in the upper part of the Neuquén River. He considered that in this way the possibility of suffering new floods will be mitigated, more energy will be produced and, consequently, the necessary financial support will be obtained to advance a works plan aimed at promoting new hydroelectric ventures undertaken by the province itself.
On this point, Cazenueuve projected that If the 47 million dollars are invested over eight years, the province will be able to cover the cost that demands the work of the hydroelectric venture designed to Cerro Rayoso. He added that, if the planning is moved over time, the necessary financing could also be accessed to carry out the plant planned for La Invernada.
The project under discussion, however, provides for a distribution of the fund to subsidize the electricity rate, provide soft loansbuild bridges and coastal defenses or finance solar parks and geothermal power plants.
Criticism of Río Negro
Both Sapag and Cazeneuve asked to work together with Río Negro and reconcile the mirror regulations regarding the collection of the fee. When referring to the issue, they were critical of the law passed by the neighboring province this month by questioning that its collection is based on the price of the electricity rate, an amount set by the national government arbitrarily.
When comparing it with Neuquén’s proposal, to establish a price on the cubic meter of water, they also exposed the enormous difference in collection that it would imply. While in Neuquén it is intended to obtain, by collecting the fee, a figure higher than 47.3 million dollars, the collection in Río Negro would only reach 5 million dollars a year.
