The decree changes how electricity tariffs are indexed to the US dollar exchange rate, using monthly averages from the Central Bank of Bolivia rather than the exchange rate on the 25th of each month. Government officials, including presidential spokesman José Luis Gálvez and Hydrocarbon and Energy Minister Marcelo Blanco, have insisted the modification does not constitute a tariff increase but rather adjusts calculation methodology to prevent abrupt fluctuations. Blanco stated the government has no plans to increase electricity or liquefied petroleum gas tariffs in the short term, though he declined to commit to maintaining frozen prices through the end of the administration.
Neighborhood associations in El Alto, La Paz, Tarija and southern Cochabamba characterized the decree as a new “tariffazo” against household economies. Some residents staged pot-banging protests Friday in areas including the San Miguel plaza in southern La Paz, demonstrating against rising costs of basic services and staple goods. Former President Evo Morales attributed the measure to International Monetary Fund demands and warned of privatization of state enterprises.
Trade union representatives indicated they would keep their demands separate from partisan political interests, particularly avoiding alignment with mobilizations supporting unspecified former presidents. Energy analyst Boris Gomez stated the decree would not substantially increase electricity costs, though the sector awaits November bills to verify government claims. The measure adjusts tariff formulas monthly for node prices and transmission fees, and semi-annually for transmission system investment and operating costs, incorporating dollar exchange rates, consumer price index data, and fuel costs for generators.
This article was curated and published as part of our South American energy market coverage.
