After R$ 5 Billion Transfer from Eletrobras for Tariff Reduction, Aneel Opens Public Consultation

Aneel Will Consult Eletrobras’ Transfer to CDE, Aiming to Reduce Energy Rates

Aneel, the National Electric Energy Agency, initiated a public consultation on Tuesday, 21, regarding the transfer that Eletrobras will make to the Energy Development Account (CDE), aiming to assist in reducing energy rates.

The transfer made by Eletrobras aimed to reduce the tariff impacts anticipated with the declassification of the company’s plants that were privatized. After the new contracts made with Eletrobras’ plants, they will be able to sell energy in the free market and not just to distributors.

For the year 2022, the transfer of R$ 5 billion is forecasted to be applied to the Account, which constitutes the formation of tariffs, by the first 15 days of July, according to Aneel. In the coming years, the plan is for payments to be made by April 30 in varying amounts until 2047.

Recomendado para você

Oil and Gas

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

The Technical Agenda and the Fair in the City of Macaé Should Boost Discussions on Investments, Energy Transition, and Development of the Oil, Gas, and Energy Chain in the National...

Paulo Nogueira

1

In total, the transfer is estimated at R$ 71.1 billion. Despite the legislation providing for a total transfer of R$ 32 billion, Aneel considered in the calculation the incidence of WACC (7.31%) on the resources that will be provided annually. Although the consultation will be open from June 22 to August 5, the amount may already be considered in tariff reviews that will be judged by Aneel starting this Tuesday.

Eletrobras Contribution Reduces Rate Adjustments for 3 Distributors

The R$ 5 billion subsidy from Eletrobras for moderating energy rates and the return of tax credits to electricity consumers helped reduce the annual rate adjustments for three distributors.

Aneel also validated average rate adjustments for the year 2022 this Tuesday. The adjustments will be 8.80% for Cemig, 10.98% for RGE Sul, and 4.90% for Copel. The figures were well below the increases exceeding 20% approved for several distributors at the beginning of 2022, which caused dissatisfaction and a reaction from lawmakers. The main reason for the moderation in rates was the return to consumers of tax credits resulting from the “decade’s thesis” of the Supreme Court, which decided to exclude ICMS from the PIS/Cofins tax base.

At Cemig, the return of credits reduced financial components included in the calculation of the distributor’s rates by 15.20 percentage points. For RGE Sul, the effect was a negative 7.30 p.p., and for Copel, a negative 13.3 p.p. According to the privatization law, Eletrobras must inject approximately R$ 32 billion into the Energy Development Account (CDE) by 2047.

Aneel Takes Important Actions to Reduce Energy Rates

According to Aneel’s directors, the agency has been emphasizing the importance of current actions to reduce rates in a scenario of inflationary pressure.

Director Helvio Guerra reported that there was a joint effort from Aneel, Congress, and the government, and also mentioned that the cap on ICMS charges should have a significant effect on future adjustments. The measure was approved by Congress and awaits presidential approval.

Camila Bomfim, interim general director of Aneel, emphasized the need to reassess the scope of the CDE, which, as previously mentioned, corresponds to the fund of the electricity sector financed by the electricity bill that supports public policies and subsidies.

“There’s still much to discuss, whether those subsidies should remain, for how long, and whether some of them could be transferred to the Federal Budget… It’s a dialogue worth opening,” Bomfim says.