Argentina modifies electricity spot price remuneration model
Argentina’s government has modified the remuneration scheme for electricity spot prices, and which includes the changing of base capacity values for thermal and hydro generation to Argentinian pesos since the exchange rate used to calculate the currency difference was calculated at a lower rate than the current one.
Resolution 31/2020 also modifies the formula used to calculate total capacity payments for thermal and hydro generation, and the resolution incorporates an additional capacity payment item by regulating capacity payments for availability during high performance hours (defined as the 50-hour period in which the higher dispatch of net thermal generation is registered in each month), according to a bulletin from law firm Martínez de Hoz & Rueda.
The Resolution also sets forth a monthly update formula for all values denominated in pesos based on the Consumer Price Index and the Internal Wholesale Prices Index published by Argentina’s national statistics and census office (INDEC), and removes all rules under Resolution SRRME N° 1/2019 referred to the remuneration of those generators managing their fuel supply.
