Privatization of Eletrobras could affect the consumer's pocket, leaving the electricity bill more expensive for the next 30 years according to Aesel data

The vote on the privatization of Eletrobras will take place this Wednesday (19); find out how this provisional measure could directly impact consumers' electricity bills

According to Arthur Lira, President of the Chamber of Deputies, the MP that authorizes the privatization of Eletrobras will have a vote today, Wednesday (19), and could affect the consumer's electricity bill for the next 30 years. Despite the vote for privatization being scheduled, the opinion of deputy and rapporteur Elmar Nascimento has not yet been officially released.

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Proposal for MP 1.031/2021 authorizes the privatization of Eletrobras

The proposal that was sent to the National Congress by the Government foresees that Eletrobras will sell new common shares on the Stock Exchange, which would not be bought by public banks and by the Union. Another prediction of the Proposal is that the Union will be entitled to a special action, which is known as Golden Share, which confirms veto power, even if she has a small stake in the company.

The Eletrobras privatization MP also establishes that the company spends R$ 3,5 billion in ten years to revitalize the São Francisco river basin, another R$ 295 million to reduce the energy generation courses in the Amazon, and another R$ 230 million for the reservoir basins of the Furnas plant.

The impact of privatization on the consumer's electricity bill

The Association of Engineers and Technicians of the Eletrobras System (aesel) released a technical note that shows the impacts of privatization on consumers. One of them is the increase of approximately 14% in the consumer's electricity bill.

The document states that this will happen because Eletrobras, which currently offers one of the lowest prices in the power generation market, would suffer from the decoupling of plants.

At the present time, the value of energy delivered by the plants, which are quoted, is approximately R$ 61/MWh. Thus, with privatization, a process of descotization would begin, increasing prices on the consumer's electricity bill for the next 30 years of the concession. It is worth remembering that, currently, Eletrobras owns 52% of the hydrological reserves of electric energy in the country, 30% of generation, and 45% of transmission.

About Eletrobras

With more than 90% of its installation capacity from renewable sources and low CO2 emissions, Eletrobras is a leader in transmission and generation of electricity and is present in the electricity bill of several consumers, contributing to make it more accessible and cheap, and also contributes to making Brazil's energy matrix one of the cleanest and most renewable in the world.

The company also operates in the energy efficiency and commercialization sectors, in addition to programs such as the Light for All Program, Procel and Proinfa. In addition, the company has planned investments between 2018 and 2022 with approximately R$ 19,756 billion.