Eletrobras points out in a note that the new state-owned company will not be created immediately. This will only occur upon “approval of the PL by the National Congress”

Even with the resistance of Congress in accelerating the privatization of Eletrobras, at the end of last month, the Ministry of Mines and Energy requested the inclusion of BRL 4 billion in the 2021 Federal Budget, for the creation of the state-owned company that will assume the company's assets. after sale. Company of the Eletrobras group will invest 1 billion reais in hydroelectric plants in Bahia

This transfer is part of the privatization program of the federal holding company for the energy sector. Eletrobras itself informed the stock market, on 22/07, of the request forwarded to the Ministry of Economy.

The resources would be necessary to ensure the Union's participation in the capital of the new company, which, according to technicians participating in the negotiations, could pay at least part of the works of the Angra 3 plant, in Angra dos Reis (RJ), which are paralyzed since 2015.

The new state-owned company will be created based on Bill 5.877/2019. This company, therefore, will enable the Union to continue holding control of Eletrobras Termonuclear SA (Eletronuclear) and shareholding in UHE Itaipu Binacional. Finally, the future company will also be responsible “for the assets of the Union under the administration of Eletrobras and for government programs”.

One way out would be to propose to a private interested party a maximum 49% stake in the company or in the plants. In the case of Angra 3, China and the US – who are fighting a commercial and geopolitical dispute around the world – want to be partners. Russians and French are also considering getting into this business.

The justification for keeping these activities in the hands of the Union is that there would be legal difficulties in transferring them in full to the private sector.
In the case of generators in Angra, the obstacle is in the Constitution. It forbids the private exploitation of nuclear energy —today carried out by Eletronuclear, from Eletrobras.

However, stresses the note from the new state-owned Eletrobras will not be created immediately. This will only occur upon “approval of the PL by the National Congress”.

Read other news about Eletrobras

• Eletronuclear will present to ELETROBRAS its plan to accelerate the work on the Angra 3 nuclear power plant
• Privatization of Eletrobras generates an expectation of R$ 16,2 billion for the Government
• Finally, work on the Angra 3 nuclear power plant begins in October 2021

In any case, bringing the two companies together in a single holding makes room for the government to take advantage of hydroelectric resources in the future to offset the deficit in Angra.

Itaipu's debt is due, leaving the company without these obligations from 2023. This, in the view of those who defend the plan, would free consumers from further rate increases. With Itaipu and the revenues from Angra 1 and 2, it would be possible to complete Angra 3 and the revenues from the complex could be used later for new works or to pay dividends to the government. It is estimated that the plant will require investments of around R$ 17 billion.

The reorganization of Angra and Itaipu began to be planned in the Michel Temer (MDB) government and was rescued in the Bolsonaro administration. The plan is a condition for the privatization of Eletrobras and is foreseen in the Executive's bill for the sale of the company, which releases a new state company for the activities.

But the text, sent in November 2019, has not yet advanced. To proceed, it depends on the approval of the President of the Chamber of Deputies, Rodrigo Maia (DEM-RJ). Maia says that the privatization of Eletrobras is essential, but that there are other priorities at the moment, such as defending the ceiling and reforms. For him, Congress should not deal with controversial issues now.

Even before the pandemic, privatization of the company was seen as something difficult to approve. The sale has been publicly treated as a priority since the Temer government.