The expectation that Jair Bolsonaro will make an effort to complete the privatization of Eletrobras provoked euphoria in the market. The state-owned company's shares helped to boost the Ibovespa, the main index of the São Paulo Stock Exchange (B3), with an 8,6% rise in shares in the trading session.

In the report that the Ministry of Planning of the Michel Temer government delivered to the transition team. One of the great challenges to be faced by the next government, the privatization of Eletrobras it is considered a strategic decision, with short and medium term effects. So much so that the document highlights only the sale of the electricity company as a priority, although Michel Temer's Investment Partnership Program Secretariat has other qualified privatizations. LEARN ABOUT THE NEW GOVERNMENT'S PLANS FOR STATE STATE COMPANIES IN THE COUNTRY.

The president of Eletrobras, Wilson Ferreira Júnior, stated that if privatization does not take place by December 31, Amazonas Energia will be liquidated, that is, Eletrobras will close its subsidiary and the Union will have to assume the service provision. Eletrobras has a loss of R$ 1,6 billion in the third quarter. The balance is much worse than the R$550 million profit recorded in 2017; in the accumulated result for the year, however, the result of the state-owned company is positive by R$ 1,275 billion.

The economic and financial scenario of Eletrobras restricts the company's performance in expanding the offer of generation and transmission of electric energy, which becomes costly to society by reducing competition in the market due to the limitation of a large competitor. With the privatization of distributors, it would have a positive impact of R$ 8,6 billion. This value refers to the reversal of unsecured liabilities of these companies, the concessionaires already sold should positively revert R$ 3 billion.

Court suspends privatization of Eletrobras

This Wednesday, the 49th Labor Court of Rio de Janeiro decided to nullify the 170th extraordinary general meeting of Eletrobras, which took place in February this year, which decided on the sale of the state's electricity distributors. Pursuant to the decision of Judge Raquel de Oliveira Maciel, the parties must refrain from proceeding with the process of privatization or liquidation of the distributors and present a study on the impact of privatization on employment contracts and on the rights acquired by their employees, under penalty of payment of BRL 1 million.

Eletrobras said that it had not been notified of the referred decision and that it would manifest itself when it received the notification.

The decision comes after Eletrobras sold four of its distributors this year. Four of the six Eletrobras distributors have already been sold. In July, Companhia Energética do Piauí (Cepisa) was sold, which should sign the concession contract this Thursday (18), and in August, Companhia de Eletricidade do Acre (Eletroacre), Centrais Elétricas de Rondônia (Ceron) and Boa Vista Energia, in Roraima. There are still units to be privatized in Amazonas, whose auction was scheduled for the 27th of this month but was postponed to December 10th, with the delivery of documents on the 6th, and that of Alagoas.

Companhia Energética de Alagoas (Ceal) has the sale suspended by decision of Minister Ricardo Lewandowski, of the Federal Supreme Court, and Amazonas Energia has the auction scheduled.

Amazonas Distribuidora is part of the six distributors that the government wants to privatize in 2018. In the case of Amazonas Energia, the postponement of the auction was due to the need to conclude negotiations on a debt between Eletrobras and Petrobras, estimated at around R$ 15 billion, which concerns the purchase of fuel for thermoelectric plants in the State. The terms of the renegotiation fell with the rejection, by the Senate, of the bill that dealt with Amazonas Energia and solved the company's pendencies. Since then, the government has been trying to find a solution for the company.  RESUME OF THE WORKS AT THE ANGRA 3 NUCLEAR PLANT WILL REFLECT IN THE CONSUMER'S POCKET