Electricity, Water, Gas & Internet – Multi-Source Analysis

Understanding utility costs in Paraguay is not just a practical concern it is a key financial variable for expats, investors, retirees, and digital nomads planning to relocate to Asunción or other major urban centers.

Paraguay is frequently labeled as a “low-cost” country. While that reputation is largely justified, the real picture is more nuanced. Monthly utility expenses are not determined by location alone, but by consumption behavior particularly electricity usage driven by air conditioning in a subtropical climate.

In a country where summer temperatures regularly exceed 35°C (95°F), energy consumption patterns can significantly influence total living costs. A well-managed household can maintain exceptionally low utility expenses. A high-usage household may see a noticeable increase, though still within competitive regional standards.

This analysis is grounded in official tariff schedules from national providers, publicly announced regulatory updates, and current pricing published by major service operators. The goal is to provide a clear, data-based framework — not anecdotal estimates — so that prospective residents and property investors can model realistic monthly utility budgets with confidence.

1. Electricity in Paraguay (ANDE)

Electricity in Paraguay is provided by ANDE (Administración Nacional de Electricidad).

Thanks to hydroelectric power from Itaipú and Yacyretá dams, Paraguay enjoys some of the lowest generation costs in the region. However, residential billing follows a specific structure that many foreigners find unusual.

Official Residential Tariff Structure (Category 142 – Updated November 2024)

According to ANDE’s official tariff schedule (Pliego de Tarifas No. 21, updated November 27, 2024), residential electricity is charged per monthly consumption bracket:

Important Technical Detail: Single-Tier Billing

Unlike progressive systems used in Europe or North America, Paraguay applies a single-tier billing model.

This means:

If your total monthly consumption falls within a bracket, the entire consumption is billed at that bracket’s rate.

Example:
If you consume 450 kWh in one month, all 450 kWh are billed at 403.82 Gs/kWh (301–500 bracket).

It is not calculated progressively by segments.

This detail significantly impacts summer electricity costs.

Minimum Charges

ANDE may apply a minimum monthly charge depending on contracted power capacity (for example, up to 3.0 kW contracted load corresponds to a 15 kWh minimum).

Electricity Cost Simulations (Asunción Apartment)

Moderate Consumption — 200 kWh/month

200 × 365.45 Gs = approx. 73,090 Gs
≈ USD 10

Medium Consumption — 450 kWh/month

450 × 403.82 Gs = approx. 181,719 Gs
≈ USD 25

High Consumption — 800 kWh/month

800 × 420.27 Gs = approx. 336,216 Gs
≈ USD 45–50

What Drives Electricity Costs Higher?

Air conditioning.

In Asunción’s summer (temperatures frequently above 35°C / 95°F), apartments with:

• 2–3 split AC units
• 6–10 hours daily usage
• Larger floor areas (100–120 m²)

can easily reach 600–900 kWh per month.

Electric water heaters also increase consumption significantly.

2026 Outlook

There have been public discussions regarding gradual tariff adjustments starting in 2026, particularly targeting higher consumption brackets. However, low and moderate residential consumers are expected to remain relatively protected compared to industrial users.

2. Water and Sewage (ESSAP)

Water services in Asunción are typically provided by ESSAP (Empresa de Servicios Sanitarios del Paraguay).

Key Billing Rule

Sewage service (alcantarillado sanitario) is billed at:

100% of the water consumption charge.

In practice:

If water usage costs 80,000 Gs
Sewage = additional 80,000 Gs
Total = 160,000 Gs

This doubling effect surprises many newcomers.

2025 Tariff Update

In October 2025, ESSAP implemented tariff updates approved by ERSSAN, citing over a decade without price adjustments and accumulated operational costs.

Service fees updated include:

• New connections
• Reconnection
• Meter replacement
• Drain cleaning
• Technical service charges

Typical Monthly Water Costs (Urban Apartment)

Small apartment, 1–2 people:
• Water: 60,000 – 120,000 Gs
• With sewage included: 120,000 – 240,000 Gs total

In modern residential buildings, water may be partially or fully included in condominium fees.

3. Gas (GLP – LPG Cylinder System)

Paraguay does not generally use centralized gas pipelines for residential buildings.

Instead, households rely on LPG cylinders (garrafas).

Official Reference Pricing (Petropar Ñande Gas)

Petropar publishes official reference pricing:

• Approx. 7,374 Gs per kilogram
• 10–13 kg cylinders typically cost 95,000 – 123,000 Gs

Private distributors may vary slightly.

In early 2026, Petropar announced price reductions for certain fuel and LPG products.

Typical Gas Usage

• 1–2 people cooking daily:
One 10–13 kg cylinder lasts 4–8 weeks.

Average monthly cost:
60,000 – 120,000 Gs

If hot water is electric rather than gas-based, gas consumption decreases significantly.

4. Internet Costs in Asunción

Fiber optic internet is widely available in central neighborhoods including:

• Las Mercedes
• Villa Morra
• Carmelitas
• Recoleta

Major providers include Claro, Tigo, and Personal.

Published Plan Pricing (2026)

• Claro Fiber 100 Mbps: approx. 95,000 Gs/month
• Tigo packages (higher speeds): 150,000 – 250,000 Gs
• Personal Fiber: similar pricing tiers

Realistic monthly range for reliable fiber internet:

95,000 – 200,000 Gs
≈ USD 13–27

Bundle packages (internet + TV + mobile) cost more.

5. Total Monthly Utility Budget Estimates

Scenario A — Moderate Usage (1–2 people)

Electricity: 90,000 – 160,000 Gs
Water + Sewage: 120,000 – 200,000 Gs
Gas: 60,000 – 100,000 Gs
Internet: 95,000 – 150,000 Gs

Total:
365,000 – 610,000 Gs
≈ USD 50 – 85

Scenario B — High AC Usage (Summer Conditions)

Electricity: 250,000 – 380,000 Gs
Water + Sewage: 150,000 – 240,000 Gs
Gas: 80,000 – 120,000 Gs
Internet: 120,000 – 200,000 Gs

Total:
600,000 – 940,000 Gs
≈ USD 80 – 130

6. Why Utilities in Paraguay Remain Competitive

Even with moderate tariff adjustments, Paraguay remains cost-competitive due to:

• Hydroelectric energy production
• Low taxation on utilities
• Competitive broadband market
• No extreme winter heating costs
• Lower regulatory burden compared to Europe

Compared to Argentina, Chile, or most EU countries, total monthly utilities are significantly lower.

Key Takeaway for Expats and Property Investors

Paraguay does not have expensive winter heating seasons like Europe or North America. Instead, energy costs peak during the summer months when temperatures in Asunción frequently exceed 35°C (95°F). For this reason, AC usage patterns define whether your monthly utility bill stays extremely affordable — or climbs into higher brackets.

However, even in higher consumption scenarios, Paraguay remains one of the most competitive capital cities in South America in terms of total utility costs.

For expats, this means:

• Predictable and manageable monthly expenses
• No surprise energy tax surcharges
• Stable hydroelectric energy supply
• Affordable broadband access

For property investors, the implications are even more important:

Lower operating costs increase tenant affordability.
Higher affordability improves occupancy stability.
Stable occupancy improves long-term yield sustainability.

In a market like Asunción — where rental yields can outperform many developed countries — keeping utility costs competitive strengthens the entire investment model.

Paraguay’s hydroelectric foundation continues to provide a structural cost advantage that many neighboring countries simply do not have.

FAQ – Utilities Cost in Paraguay (2026)

1. Is electricity expensive in Paraguay?

No. Electricity in Paraguay is among the cheapest in South America due to hydroelectric production from Itaipú and Yacyretá dams. Costs depend mainly on consumption level, especially air conditioning use.

2. Why can electricity bills increase significantly in summer?

Paraguay uses a single-tier billing system. If your monthly consumption moves into a higher bracket, the entire consumption is billed at that higher rate. Heavy AC usage during summer often pushes households into higher tiers.

3. Is water expensive in Asunción?

Water itself is affordable, but sewage is billed at 100% of water consumption. This effectively doubles the water portion of the bill. In many apartment buildings, water may be partially included in condominium fees.

4. Is gas supplied through pipelines?

In most residential properties, no. Paraguay commonly uses LPG cylinders (garrafas). A 10–13 kg cylinder typically lasts 1–2 months for a small household.

5. How much does internet cost in Asunción?

Fiber internet plans typically range between 95,000 and 200,000 Guaraníes per month depending on speed and provider. Reliable high-speed connections are widely available in central neighborhoods.

6. What is a realistic total monthly utility budget for a couple?

For 1–2 people in a modern apartment:

Moderate usage:
USD 50–85 per month

High summer usage:
USD 80–130 per month

7. Are utility prices expected to increase in 2026?

There have been discussions about gradual adjustments, particularly targeting high consumption brackets. However, Paraguay remains structurally competitive due to its hydroelectric energy base.

8. Are utilities cheaper than in Argentina or Brazil?

Yes, generally. Paraguay benefits from lower taxation on utilities and abundant hydroelectric energy, making electricity particularly competitive compared to many neighboring countries.

9. Do lower utility costs impact rental yields?

Absolutely. Lower operating expenses improve tenant affordability, which supports occupancy rates and strengthens long-term rental yield performance.

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