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On Thursday (17), Senators in the Federal Senate Approved the Text of the MP for the Privatization of Eletrobras, and Employees Around Brazil Fear Mass Dismissals After Privatization and Are on Strike
The MP for the privatization of Eletrobras is approved, and about 450 employees of the Furnas Hydroelectric Plant in MG face the risk of unemployment. Against the sale, employees across Brazil are on strike. The energy company, which is currently a state-owned enterprise, is the largest in Latin America, and according to some senators, it has reported billion-dollar profits in recent years.
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Vote to Privatize Eletrobras and Its Impacts in MG
The MP for the privatization of Eletrobras was approved with 37 votes against and 42 in favor. The text will return to the Chamber of Deputies and will soon be sanctioned by the President of the Republic, Jair Bolsonaro. The state of MG will be one of the most affected by Eletrobras’s privatization.
The Furnas Hydroelectric Plant, located along the Rio Grande, between the municipalities of São João Batista do Glória (MG) and São José da Barra (MG), is controlled by Eletrobras and plays a major role in the economy of the cities.
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According to the president of the Furnas Electricians’ Union, Ricardo Fernandes, there is a high probability that privatization will result in mass layoffs at the Furnas plant, affecting approximately 450 people. He states that if this occurs, it will directly disrupt the economy of the MG region, which lacks industry.
Furnas Plant Employees Go on Strike
Approximately 450 workers at the Furnas Plant in MG held a 72-hour strike against privatization. The strike began at the start of this Tuesday (15) and involved not only employees of the Furnas Plant but also around 12,000 workers across Brazil who protested against the sale of Eletrobras.
Ricardo Fernandes states that, to prevent a power system shutdown, only operational activities were maintained, and maintenance workers will only attend to emergency services.
Increase in Consumers’ Electricity Bills After Privatization
Another impact affecting the entire country will be the increase in consumers’ electricity bills. Eletrobras’s plants generate energy and distribute it across the country and are committed to passing it on to distribution companies at a flat rate, which is currently R$ 62 per megawatt-hour. With privatization, the owner will be able to sell the generated energy in the free market, which currently ranges from R$ 250 to R$ 290 per megawatt-hour.
According to Emerson Andrada, general coordinator of the Electricians’ Union of Minas Gerais, it is important to use past examples to project the future. The privatization of power plants in the Triângulo Mineiro region, which belonged to Cemig, caused the price of megawatt-hours to rise from R$ 40 to nearly R$ 150. If Eletrobras becomes more expensive, it will impact electricity bills across Brazil.
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