With the goal of reducing the value on the electricity bill of consumers in MS, the state government approved the bill that proposes the reduction of ICMS on the light bill as long as the hydric scarcity banner created by Aneel lasts
On Wednesday (22), the Legislative Assembly of Mato Grosso do Sul (ALMS) approved in a second vote the bill that reduces the ICMS on the electricity bill of consumers during the period that the hydric scarcity banner is in effect. There were 19 votes in favor and none against.
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The state government of MS itself sent the bill that will reduce the ICMS on the electricity bill to the Assembly. This project is part of State Law 5,707/2021, which reduces the ICMS value when the National Electric Energy Agency (Aneel) declares a red tariff banner.
The hydric scarcity banner created by Aneel foresees an additional fee of R$ 14.20 on consumers’ electricity bills for every 100 kilowatt-hours consumed until April of next year.
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The new level for the electricity bill in MS represents an increase of R$ 4.71, equivalent to 50%, compared to the red banner level 2, which until now was the highest level, at a cost of R$ 9.49 for 100 kWh. The decision declared by Aneel is due to the water crisis impacting the reservoir levels of hydroelectric power plants, which is currently one of the main electricity providers to consumers.
Federal Government Praises the State of MS for Creating the Bill
Speaking about the water crisis affecting Brazilian reservoirs in a live broadcast earlier this month, President Jair Bolsonaro praised the decision of MS Governor Reinaldo Azambuja to not impose additional taxes on consumers.
So far, it is the only state that has reduced the ICMS on the electricity bill during the period when the hydric crisis banner is in effect. Jair Bolsonaro also praised the MS government for reducing fuel prices, concerned about mitigating the impact of rising gasoline, ethanol, and diesel prices.
According to Bolsonaro, in advocating for a balance in the pricing of gasoline, ethanol, diesel, and other fuels, MS is the state that charges the lowest ICMS. The tax was reduced from 17% to 12% for gasoline and from 25% to 20% for ethanol in the state.
RJ Will Also Reduce ICMS on Fuels
The governor of the State of RJ, Cláudio Castro, states that he agreed to negotiate a reduction in ICMS to help lower the fuel prices for consumers.
According to Cláudio, in addition to government support, it is necessary for some other sectors that directly influence prices to contribute as well. The bill could have a significant impact on consumers when refueling, as taxes represent a large portion of product prices, and Rio de Janeiro currently has some of the highest prices in the entire southeastern region.

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