For residential users, Uruguay holds the highest tariff at $269/MWh, with Chile closely behind at $258/MWh. Brazil and Argentina present mid-level prices at $203/MWh and $112/MWh, respectively, while Paraguay again leads with the lowest residential cost near $68/MWh. The residential tariff consistently surpasses industrial rates across all countries, with Uruguay displaying the widest margin, where household prices are nearly twice those for industrial consumers.
These tariff disparities are closely tied to national energy structures and policies. Paraguay’s extensive surplus hydroelectric generation enables it to sustain low prices. Conversely, Uruguay’s diversified generation portfolio integrates costs from renewable, thermal, and biomass sources alongside fiscal contributions that elevate retail prices. Chile’s reliance on a mix of imported fossil fuels during hydro shortages, combined with an expansive transmission network and complex contract structures, contributes to its elevated tariffs. Brazil’s significant hydro presence subjects prices to fluctuation based on hydrological cycles, while Argentina’s subsidies moderate direct consumer rates.
The significant price gaps present implications for industrial competitiveness and household affordability amid ongoing energy transition agendas. Understanding this heterogeneous pricing landscape will be critical for project developers, policymakers, and investors navigating markets in the Southern Cone throughout 2026.
This article was curated and published as part of our South American energy market coverage.
