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Energy: prices/tariffs will go up in Brazil

Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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Energy: prices/tariffs will go up in Brazil

The order to end the water crisis related costs will probably be carried out, in the best Brazilian style.

Electricity distributors will receive loans to pay for the increases. The counterpart will be, in the next tariff revisions, that ANEEL (National Electric Energy Agency) will increase them to reflect the new associated costs.

The immediate objective of relieving consumers will be fulfilled, despite a subsequent increase that will be aggravated by interest rates, which in Brazil are substantially above the competitive international parity.

And so, Brazil is increasingly distancing itself from competitive references in $/MWh. For our Government officials it has always been like this: the challenge is only perceived in the short term, which conflicts with a capital-intensive sector that needs to have a long term strategy.

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Thank Rafael for the Post!
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