The Latin American Power Group (Olade), an entity made up of 27 nations, yesterday launched the Power Inflation indicator for Latin America and the Caribbean, with info from 16 economies, together with Guatemala, which was calculated at 1.96% in a single yr. , common.
The Olade indicator represents the ultimate value index of the power sector (IPCE) that measures the variation in client costs of the merchandise which might be a part of the power basket. This consists of merchandise that meet the power wants of households reminiscent of residential electrical energy, home fuels (reminiscent of LPG, pure gasoline, charcoal and firewood) and fuels for personal autos (gasoline, diesel oil, biofuels reminiscent of ethanol and biodiesel). , pure gasoline for autos, LPG and electrical energy for electrical vehicles). 70% of the index is defined by fuels, it was indicated.
Olade didn’t present information for Guatemala specifically. Other than information from the Nationwide Statistics Institute on the full weighting merchandise of the Shopper Value Index (CPI) basket, round 9.5% refers to this phase, if the products positioned within the classification of transportation reminiscent of fuels for private transportation, together with gasoline (with a weighting of three.45% and diesel (0.23%).
In different companies, electrical power consumption represents 2.48% of the full basket; gasoline (LPG) 1.14%; and stable fuels are 2.20%, which incorporates coal with 0.03%; firewood with 2.10% and ocote with 0.07%.
Within the context of the electrical energy era disaster because of the drought, the Minister of Power and Mines, Víctor Hugo Ventura, indicated that the electrical energy price has been secure for the ultimate client, though different segments have skilled will increase. Amongst these, giant customers (trade or firms) who’re provided by purchases within the spot market (buy and sale with out contract).
In fuels, he stated that oil costs are decrease than what had been forecast for the yr, so the value has not had drastic variations.
Different issues
Andrés Rebolledo, government secretary of Olade, defined that to reach on the information for the brand new indicator, the habits of costs within the power sector was noticed and analyzed from January 2022 to March 2024, concluding that at the moment a interval of stabilization of power costs in most regional economies, following a stage of upward development proven between 2021 and the start of 2022, since till June of that yr it was on the rise.
This was primarily attributable to three components: the conflict between Russia and Ukraine; an inflation peak recorded in Could 2022 (common of 18.41%); aside from the truth that a number of economies started to droop subsidies utilized in the course of the pandemic, whereas a weak financial restoration progressed, till July 2023.
For the reason that second half of 2023 and the start of 2024, a reasonable development of the indicator is proven, which displays facets of the linkage of gas costs in lots of nations with the worldwide value of oil, which has been risky, however rising. for many of that interval. In July, August and September 2023, unfavorable figures had been mirrored following which there was an upward development.
Compared by area, it’s famous that the rise in power inflation within the OECD nations (Group for Financial Cooperation and Growth) has been way more pronounced than in Latin America and the Caribbean, so on this area, the Costs had been much less delicate to the results of the conflict between Russia and Ukraine, along with being extra resilient to shocks in worldwide costs.
It’s because there’s “a pure protection” derived from the excessive participation of renewable power, which at the moment represents 65% of electrical energy era, because of the personal manufacturing of oil, pure gasoline and biofuels, defined Rebolledo.
When requested concerning the instances of Central American nations that aren’t producers of oil and pure gasoline and that rely on the worldwide market, he stated that one facet of their favor is that the area has {an electrical} interconnection that has been round for round 30 years, which has allowed to be extra unbiased and has not required rationing.
Lastly, Olade really helpful persevering with with the diversification of the power matrix to proceed incorporating renewable energies, along with sustaining long-term power provide contracts, as they assist generate value stability over time. Likewise, strengthen electrical integration between nations to be extra resilient within the face of electrical energy era crises reminiscent of droughts in nations that rely closely on hydroelectric vegetation.
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