Electricity And Gas Prices Surge; Consumers And Industries Call For Relief From Charges And Taxes From The Government

Written by Flavia Marinho

Published on 13/04/2021 at 14:16

Conta de luz / Fonte: Reprodução Google

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With Electricity and Gas Prices Soaring, the National Confederation of Industry Asks Bolsonaro to Exempt Federal Taxes on Electricity for 90 Days

Investors, consumers, and industries are on alert with the surge in electricity and natural gas prices during the pandemic, prompting Jair Bolsonaro’s government to deal with requests for relief from charges and taxes that weigh on consumers’ electricity bills.

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Aneel is working to prevent electricity prices from rising further – which are projected to increase by more than 10% for electricity tariffs in 2021. The agency has already postponed adjustments for distributors like CPFL and Energisa.

“Everything is concerning. On one hand, we must acknowledge this extremely delicate and difficult moment due to the pandemic. On the other hand, any changes in the regulatory and tariff processes would create significant legal insecurity,” said Claudio Sales, president of the Acende Brasil research center.

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Industry representatives have expressed concern over a trend of steep increases in electricity costs, which even affect large companies that purchase energy through bilateral negotiations in the free market.

Under CNI’s Proposal, the Federal Government Should Cover Costs for 90 Days, Also Eliminating Federal Charges.

To boost the economic recovery during the crisis caused by the coronavirus, the National Confederation of Industry (CNI) stated that it has been advocating for measures to reduce electricity costs with the government.

“One of the suggested measures is the exemption from federal taxes and sectoral charges that apply to electricity bills for a period of 90 days,” the entity said in a statement, estimating that this could reduce electricity costs by 25%.

Taxes account for about 30% of electricity bills, with 4% of federal taxes being PIS and Cofins, while charges that fund programs like Light for All and various subsidies to trigger thermal plants account for 14% of the total.

Bolsonaro Opposes Higher Electricity and Gas Prices

Experts have projected double-digit increases in tariffs for 2021, which has caused irritation for President Jair Bolsonaro, who stated in February that the government would “intervene in electricity,” which he labeled as a “problem.”

The 39% increase in natural gas starting next month has also drawn criticism from the president, who said on Wednesday that the state company’s move was “unacceptable,” although he noted that he would not interfere.

One of the main factors behind the rise in electricity prices has been the use of thermal plants since October last year along with the soaring dollar against the real. The U.S. dollar has a significant impact on the IGP-M, an index that adjusts part of the contracts in the electricity sector. The production from the Itaipu hydropower plant is also priced in dollars.

The director-general of Aneel, André Pepitone, stated that the agency is expected to present its proposals for tariff relief within two weeks.

Electricity And Gas Prices Surge; Consumers And Industries Call For Relief From Charges And Taxes From The Government

With Electricity and Gas Prices Soaring, the National Confederation of Industry Asks Bolsonaro to Exempt Federal Taxes on Electricity for 90 Days

Read Also

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

Under CNI’s Proposal, the Federal Government Should Cover Costs for 90 Days, Also Eliminating Federal Charges.

Bolsonaro Opposes Higher Electricity and Gas Prices

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Electricity And Gas Prices Surge; Consumers And Industries Call For Relief From Charges And Taxes From The Government

With Electricity and Gas Prices Soaring, the National Confederation of Industry Asks Bolsonaro to Exempt Federal Taxes on Electricity for 90 Days

Read Also

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Under CNI’s Proposal, the Federal Government Should Cover Costs for 90 Days, Also Eliminating Federal Charges.

Bolsonaro Opposes Higher Electricity and Gas Prices

At over 8,800 meters above sea level, the summit of Mount Everest is made up of rocks that originated at the bottom of an ocean about 500 million years ago and were pushed to the highest point on Earth by the collision of tectonic plates.

Iran enters the center of a climate alert after the war emitted 5.6 million tons of CO2 in two weeks, surpassing the annual pollution of entire countries.

Buried under China, a colossal machine weighing 20,000 tons began operating as the largest neutrino detector on the planet and, in just 59 days, surpassed results that science took half a century to achieve.

With 11,000 tons and sensors capable of hunting submarines at long distances, the Type 055 has become one of the most feared floating arsenals of the Chinese navy.

A bright yellow mushroom imported from Asia escaped from a cultivation farm in the United States in 2010 and is now aggressively spreading across 25 states, destroying entire communities of native fungi in American forests.

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