Coronavírus: proibidas de cortar energia por 90 dias, a inadimplência ultrapassa R$ 4 bi e distribuidoras recorrem ao MME

Coronavirus: Prohibition on Cutting Power for 90 Days, Delinquency Exceeds R$ 4 Billion and Distributors Turn to the Ministry of Mines and Energy (MME)

Written by Flavia Marinho

Published on 29/04/2020 at 14:55

Updated on 29/04/2020 at 15:09

Coronavírus: proibidas de cortar energia por 90 dias, a inadimplência ultrapassa R$ 4 bi e distribuidoras recorrem ao MME

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Coronavirus: Electric Power Distribution Companies in Brazil Have Recorded the Highest Default Rate After Aneel Decided That Distributors Cannot Cut Off Electricity for Residential Customers and Essential Services Companies for 90 Days, Even in the Case of Non-Payment. Court Prohibits Distributors from Cutting Electricity and Water to Estaleiro Mauá

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According to data collected by the National Electric Energy Agency (Aneel), due to the pandemic, there has been a revenue drop of about 9 percent since mid-March compared to last year.

According to the report signed yesterday (28) by the Aneel director, Sandoval Feitosa, “The default rate has more than tripled: it went from 3.9% in April 2019 to 12.9% in recent days. This percentage represents a default of 2.46 billion reais”.

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The 14 percent reduction in total energy consumption since the start of the isolation measures adopted in the country to combat the spread of the virus has led to a revenue decline.

The data from Aneel regarding revenue were obtained from “part of the distributors” and consider the period from March 21 to April 19.

“Adding the market reduction and the increase in defaults, it is seen that distributors are dealing with a total revenue reduction of around 4.3 billion reais”, the report pointed out.

Amid the strong impacts on the market, electric power distributors have requested a support package from the Ministry of Mines and Energy for the sector.

The government has already published a provisional measure that should allow obtaining loans from banks to support the cash flow of distributors during the pandemic.

The electric power companies have estimated that to navigate through the “turbulence” associated with the pandemic, they may need an injection of between 15 billion and 17 billion reais.

Coronavirus: Prohibition on Cutting Power for 90 Days, Delinquency Exceeds R$ 4 Billion and Distributors Turn to the Ministry of Mines and Energy (MME)

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