Federal Government Approves Law Authorizing Eletrobrás Privatization and Vetoes Mandatory Employee Reuse

Jair Bolsonaro Sanctioned The Law That Allows For The Privatization Of Eletrobras And Paves The Way For The Federal Government To Act. One Of The Provisions Of The Text Approved By The President Determined That The Executive Power Would Reuse Employees Of The State Electric Company And Its Subsidiaries

The current President of the Republic, Jair Bolsonaro, sanctioned on Tuesday (13) the law that allows for the privatization of Eletrobras, paving the way for the federal government to proceed with actions regarding the state electric company. The text approved by Bolsonaro included a total of 14 vetoes to provisions that were approved by the National Congress. One of the provisions determined that the Executive Power would reuse employees of Eletrobras and its subsidiaries.

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Contracting Of 8 GW

President Jair Bolsonaro also blocked an article that established that the board of the National Electric System Operator (ONS) should be approved by the Senate. Other provisions of the Eletrobras privatization text, of interest to the market, such as the contracting of 8 GW of gas thermoelectric plants and the extension of contracts for incentive programs for sustainable energy, were maintained.

In the process of privatization of Eletrobras, there will be an increase in the share capital with the waiver of the Union’s subscription rights to shares. Essentially, the Federal Government will have its 61% stake in the state company dissolved. The issuance of shares is expected to occur by the first bimonthly period of 2022.

Evaluation Studies Of Eletrobras

After the approval of the Federal Government’s law, the next step will be to complete the evaluation studies of Eletrobras, defining the value and quantity of shares that will be offered. In the middle of this step, the following aspects will be studied: The current situation of the company, its assets and liabilities, value generation capacity, and growth prospects over the years.

The CPPI will be responsible for approving these studies, which will be coordinated by BNDES. The council will also define the final modeling of the privatization operation approved by the Federal Government based on the guidelines of the new law.

The studies will also be sent to the Federal Court of Accounts for approval. According to the Ministry of Mines and Energy, with the eventual approval from TCU and CPPI, the next step will be for Eletrobras to hold a shareholders’ meeting, where the Union will not vote on certain matters to allow the issuance of new shares to be approved.

Profile Of Eletrobras Employees

The total number of male employees in the company is 503, and in its subsidiaries, it is 11,446. The number of female employees is 277, which is much lower. In the subsidiaries, there are only 2,765 female employees.

Among employees aged 18 to 35, there are 74 in the company and 1,661 in the subsidiaries. From 36 to 60 years old, the number increases to 642 in Eletrobras and 10,724 in the subsidiaries. Above 60, there are only 64 in the company and 1,826 in the subsidiaries.