Paraguay Suspends Power Cutoffs Over Unpaid Bills Amid Ueno Bank Crisis

ASUNCION, Nov 13 (NNN-Xinhua) -- Paraguayan President Pedro Alliana announced on Thursday that electricity disconnections over unpaid bills would be suspended until Dec 31 to ease financial pressure on households affected by the Ueno Bank crisis, reported Xinhua.

In a post on social media, Alliana said customers would be allowed to repay outstanding electricity bills in up to 24 interest-free instalments, without late-payment penalties. The first instalment could be included in their next bill.

He also announced that the state-run National Electricity Administration (ANDE) would keep electricity tariffs unchanged for at least one year.

"We will not leave Paraguayan families without electricity because of unpaid bills," Alliana said, adding that he had instructed ANDE President Felix Sosa to introduce measures to ease the financial burden on households, particularly those affected by the banking crisis.

At a press conference, Sosa said the suspension of disconnections would cover all ANDE customers except those in the special intensive consumption category. The instalment payment arrangements would be available to low-voltage customers, who account for about 97 per cent of ANDE's customer base.

The measures also include arrangements for customers whose electricity payments made through Ueno Bank or the digital payment platform WEPA between Nov 2 and 3 have not yet been registered in ANDE's system. Customers can submit payment receipts for verification.

Sosa said the measures were intended to cushion the impact of the banking crisis, ensure uninterrupted electricity supply and provide customers with greater flexibility in settling outstanding bills.

Ueno Bank, one of Paraguay's major digital lenders, was placed under resolution by the Central Bank of Paraguay on Nov 2 after regulators found that its capital had fallen below the required minimum. The move disrupted banking services and left millions of customers temporarily unable to access their accounts, affecting households, businesses and public institutions.

The crisis has also raised concerns over the exposure of public funds and the stability of the country's financial system. 

--NNN-XINHUA