Uruguay faces soaring energy costs

Rising global oil prices and a reduced level of hydropower have contributed to the increasing costs of producing energy in Uruguay, according to the country’s state-controlled power company UTE.
To-date, UTE has spent $180m in efforts to meet its energy demand, which represents 26 per cent of the $690m the power company had estimated it would spend this year, according to a report by Noticias Financieras.
Gerardo Rey, director of UTE, said these costs are above what the company has budgeted for the year. But he added that autumn and winter are traditionally seasons when Uruguay’s rainfall was higher than the rest of the.
This should result in greater use of the hydroelectric plants and a lower reliability on thermal power plants, the director said.
However, winter is also the season when energy demand increases to its highest level.
For more Financial news.