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The Vote On The Privatization Of Eletrobras Will Take Place This Wednesday (19); Find Out How This Provisional Measure Could Directly Impact Consumers’ Electricity Bill
According to Arthur Lira, President of the Chamber of Deputies, the MP authorizing the privatization of Eletrobras will be voted on today, Wednesday (19), and could affect consumers’ electricity bills for the next 30 years. Although the vote for the privatization is scheduled, the report from Deputy and Rapporteur Elmar Nascimento has not yet been officially released.
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MP 1.031/2021 Proposal Authorizes The Privatization Of Eletrobras
The proposal sent to the National Congress by the Government foresees that Eletrobras will sell new ordinary shares on the Stock Exchange, which would not be purchased by public banks and the Union. Another provision of the proposal is that the Union will have the right to one special share, known as Golden Share, which confirms veto power, even if it holds a small stake in the company.
The MP for the privatization of Eletrobras also establishes that the company will spend R$ 3.5 billion over ten years to revitalize the São Francisco River basin, another R$ 295 million to reduce energy generation impacts in the Amazon, and another R$ 230 million for the reservoirs of the Furnas plant.
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The Impact Of Privatization On Consumers’ Electricity Bill
The Association of Engineers and Technicians of the Eletrobras System (Aesel) released a technical note showing the impacts of privatization on consumers. One of them is an increase of approximately 14% in consumers’ electricity bills.
The document states that this will happen because Eletrobras, which currently offers one of the lowest prices in the energy generation market, will suffer from the de-quoting of plants.
At the current time, the price of energy delivered by the plants, which are quoted, is approximately R$ 61/MWh. Thus, with privatization, a process of de-quoting would begin, increasing prices on consumers’ electricity bills over the next 30 years of concession. It is worth mentioning that Eletrobras currently holds 52% of the country’s hydroelectric energy reserves, 30% of generation, and 45% of transmission.
About Eletrobras
With over 90% of its installed capacity from renewable and low CO2 emission sources, Eletrobras is a leader in electricity transmission and generation and is part of the electricity bill for various consumers, helping to make it more affordable and cheaper, and also contributing to making Brazil’s energy matrix one of the most renewable and clean worldwide.
The company also operates in the energy efficiency and commercialization sectors, in addition to programs such as the Light for All Program, Procel, and Proinfa. Furthermore, the company has planned investments between 2018 and 2022 of about R$ 19.756 billion.
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