Application of the Perceptor Hierarchical Model to the negotiations on the cost of electricity service of a binational hydropower plant: the case of ITAIPU

In 2023, the partners of the ITAIPU Binational Entity, Paraguay and Brazil, will have to review Annex C of the ITAIPU Treaty, which relates to the conditions of the tariff structure and commercialization of the energy produced by the power plant. The governments must define strategies for the negotiation based on the diversity of interests of the different segments of society, particularly in Paraguay, where the debate on these negotiations extends to society in general. Given the location and importance of ITAIPU for the region, the negotiation to be held should devote considerable effort to the revision of Annex C of ITAIPU. This article evaluates the implications of the components of the Cost of Electricity Service (CSE) in terms of what Paraguayan society considers important, using a multiple criteria type methodology called Perceptor Hierarchical Decision (PHD). For this purpose, surveys were carried out to know what the respondents want according to their needs. We evaluated the influence of the CSE components on the fulfillment of the PND 2030, taking into account the preferences of society. The results show that the component that relates to Energy Assignment is the one that could help to achieve greater objectives of the National Development Plan (PND) 2030. These results suggest that this component should be taken into account when preparing the negotiation strategy, taking into account the considerations.