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21% power rates increase in Brazil
21% increase
This is the market expectation for 2022 with respect to electricity tariffs in Brazil.
The main reasons:
* Inclusion of projects with no feasibility in selected privatizations
* Dispatch of thermal power plants to face the crisis
* Voluntary Demand Reduction incentive program
* Water scarcity "flag" (additional costs)
* Emergency auction for capacity
* Loans to distribution companies
And so the cost of Brazilian electricity is increasingly distant, in the light of the market (BRICS - Brazil, Russia, India, China and South Africa).
The electricity sector needs - urgently - honesty, professionalism and application of established practices in the energy sector. In the meantime, Brazil is going downhill.
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