The Main Goal Of Eletrobras Privatization Is To Reduce Electricity Tariffs And Not Just Revenue Generation

Written by Roberta Souza

Published on 26/02/2021 at 09:16

Eletrobras

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According to the Secretary of Energy of the MME, the tariff reduction will be a result of changes caused by MPs after privatization

The Secretary of Energy of the Ministry of Mines and Energy, Rodrigo Limp, stated that the main objective of Eletrobras’ privatization is to allow for a reduction in electricity bills rather than the collection itself. The Federal Government submitted provisional measures (MP) to the National Congress on Tuesday (23) to accelerate the privatization of Eletrobras. The text stipulates that the government can reserve the right to veto decisions of state-owned companies through preferred actions.

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According to Rodrigo Limp, the tariff reduction will result from changes brought about by the Provisional Measures after privatization. He stated that these changes include improvements in efficiency and changes in the contracting system of some of the company’s hydroelectric plants.

The text of the MP sent to Congress confirms that Eletrobras will pay the government a sum of money after privatization, currently estimated at R$ 50 billion. Half of this – about R$ 25 billion – will be used to reduce costs that increase electricity bills, while the other half will be allocated to the federal government.

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The Secretary of Energy of the Ministry of Mines and Energy says that “It is clear that we consider the fiscal aspect of the country, but this project in no way has a revenue aspect. I would say that the main goal of the project is to bring benefits to electricity consumers.”

The provisional measures foresee changes in the contracting scheme of some hydroelectric plants of Eletrobras. These plants will exit the quota system, where electricity prices are lower and determined by the National Electric Energy Agency (Aneel), and will be converted to an independent production system, where the company will freely negotiate prices.

The Main Goal Of Eletrobras Privatization Is To Reduce Electricity Tariffs And Not Just Revenue Generation

According to the Secretary of Energy of the MME, the tariff reduction will be a result of changes caused by MPs after privatization

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