This group brings together the best thinkers on energy and climate. Join us for smart, insightful posts and conversations about where the energy industry is and where it is going.

Post

Is the Brazilian power sector out of control?

Is the Brazilian power sector out of control?

For those who analyze the electric sector looking at the regulation, in official companies and institutions, the assessment can only be of institutional strength, predictability and legal security.

However, there is a worrying signal. The sector is based on an untied foundation of the competitive world: it is a permanent transfer of costs to the customer, whether residential, commercial, industrial or institutional.

Taxes, subsidies, incentives, power theft (delicately referred to as "non-technical losses"), official defaults are all transferred to the tariffs.

On the other hand, energy companies controlled by the State (Federation and States) are in a very weak financial/economical situation and unable to invest to expand their businesses..

An emblematic example of this situation is the recent statement by the governor of Minas Gerais, who, in an interview, declared that CEMIG did not have the resources to invest in the required (electric) access to a foreign industry that wished to settle in the state.

What else will need to happen for us to become aware of the real situation in the electricity sector?

Rafael Herzberg's picture

Thank Rafael for the Post!

Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.

Discussions

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »