Last Thursday (17), congressmen of the Federal Senate approved the text of the MP for the privatization of Eletrobras, and employees across Brazil fear mass layoffs after privatization and are on strike

MP for the privatization of Eletrobras is approved and about 450 employees of the Furnas Hydroelectric Power Plant in MG are at risk of becoming unemployed. Against the sale, employees from all over Brazil are on strike. The energy company, which is currently a state-owned company, is the largest in Latin America, and according to some of the senators it has made billionaire 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 still return to the Chamber of Deputies and, shortly after, will be sanctioned by the President of the Republic, Jair Bolsonaro. The state of MG will be one of the most impacted by the privatization of Eletrobras.

The Furnas Hydroelectric Power Plant, which is located on the course of the Rio Grande, between the municipalities of São João Batista do Glória (MG) and São José da Barra (MG), is controlled by Eletrobras and is very active in the economy of the cities .

According to the leader of the Electricians Union of Furnas, Ricardo Fernandes, there is a high probability that the privatization will result in a mass layoff at the Furnas Power Plant, of approximately 450 people. He claims that, if that happens, it will directly disrupt the economy of the MG region, which has no industry.

Workers at the Furnas Plant go on strike

Approximately 450 workers at Usina de Furnas in MG held a 72-hour strike against privatization. The strike began earlier this Tuesday (15th) and not only involved employees at the Furnas Plant, but also around 12 workers throughout Brazil, who demonstrated against the sale of Eletrobras.

Ricardo Fernandes says that, in order to avoid a shutdown of the electrical system, only operating activities have been maintained and also maintenance workers will only attend to emergency services.

Increase in consumer electricity bills after privatization

Another impact that will affect the entire country will be the increase in consumers' electricity bills. Eletrobras plants generate energy and distribute it throughout the country and are committed to transferring it to distribution companies for a single price, which is currently R$ 62 per megawatt/hour. With the privatization, the owner will be able to sell the energy generated in the free market, which is currently around R$ 250 to R$ 290 per megawatt/hour.

According to Emerson Andrada, general coordinator of the Union of Electricians of Minas Gerais, it is important to use past examples to project the future. The privatization of the Triângulo Mineiro plants, which belonged to Cemig, caused the price of a megawatt/hour to rise from R$40 to almost R$150. .