Government And Aneel Defend ICMS Cut To Reduce Electricity Bill Tarif

Written by Fabio Lucas Carvalho

Published on 13/05/2022 at 13:50

Rio de Janeiro – Consumo de energia elétrica, lâmpada e interruptor de luz. (Fernando Frazão/Agência Brasil)

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Government and Aneel Participate in Hearing in the Chamber of Deputies to Discuss Solutions to Reduce Electricity Bill. ICMS Cut Was Defended

On last Thursday, the 12th, in a hearing at the Chamber of Deputies, representatives of the Federal Government and the National Electric Energy Agency (Aneel) defended that the ICMS charged on the electricity bill should be cut. This would be the best alternative to lower the electricity bill nationwide nationally.

How Does the ICMS Charge Work on the Electricity Bill?

The Tax on Circulation of Goods and Services (ICMS) is a tax collected by the states. According to data released by Aneel, on average, taxes represent 30.5% of the total electricity bill. Alone, the ICMS represents 21.3% of the total electricity bill for Brazilians.

energy electricity bill — *Rio de Janeiro – Electricity consumption, light bulb, and light switch. (Fernando Frazão/Agência Brasil)*

The hearing took place after the Chamber approved urgency in the bill that suspends increases in the electricity bill. In the state of Ceará, for example, the electricity bill will increase by 24.88% for consumers.

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Government and Energy Sector Concerned About the Bill

The possible approval of the bill is generating great concern for the electric sector and the federal government. The main reason is that the increases are already foreseen in contracts with distributors. In case of noncompliance with the increases, legal disputes may occur, with a significant chance of needing to pay compensations.

As an alternative to the bill, Domingos Romeu Andreatta, Deputy Secretary of Electric Energy at the Ministry of Mines and Energy, advocated for the approval of a constitutional amendment proposal (PEC), which is already under consideration in Congress, that would limit the ICMS rate on the electricity bill to 10%.

“In the case of Ceará, the ICMS represents 28.8% of the final price of electricity. This is also a project that brings us considerable interest,” defended the deputy secretary.

Meanwhile, Mário Menel, president of the Electric Sector Associations Forum (Fase), rejected the measures currently on the table. According to him, the solution to the problem will only happen with the reduction of taxes, which currently already account for 49% of the electricity bill. “Congress approves subsidies, and Aneel is not to blame,” he analyzed.

Government And Aneel Defend ICMS Cut To Reduce Electricity Bill Tarif

Government and Aneel Participate in Hearing in the Chamber of Deputies to Discuss Solutions to Reduce Electricity Bill. ICMS Cut Was Defended

How Does the ICMS Charge Work on the Electricity Bill?

Government and Energy Sector Concerned About the Bill

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Government And Aneel Defend ICMS Cut To Reduce Electricity Bill Tarif

Government and Aneel Participate in Hearing in the Chamber of Deputies to Discuss Solutions to Reduce Electricity Bill. ICMS Cut Was Defended

How Does the ICMS Charge Work on the Electricity Bill?

Government and Energy Sector Concerned About the Bill

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