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Energy: what is regulation for?

image credit: Rafael Herzberg
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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  • Jun 13, 2021
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Energy: what is regulation for?

The question seems silly but it occurs frequently for companies and institutions in Brazil.

Clients for whom I provide consultancy, and who wish to expand their activities, are faced with a harsh reality: the difficulty of increasing their contracted demands before their local concessionaire.

The reason is simple. They lack the economic-financial capacity to place the investments needed to reinforce their grid infrastructure,. Of course meeting the increase in the load in their market is one of the regulatory requirements.

I mean, we live in a make-believe world. where those who need to expand, donate the associated investment to their concessionaire. And everything stays as it is!

But there is a price to pay. Brazilian energy, including this condition, is one of the most expensive in the world.

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Thank Rafael for the Post!
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