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Rationing or a marginal cost increase?

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 23, 2021

Rationing or a marginal cost increase?

What should a company believe?

There are official representatives of institutions in the Brazilian electricity sector who claim that the situation is very serious and that the natural consequence is a rationing.

Other representatives argue that it will only be a question of marginal increase in tariffs (regulated) and power prices (deregulated). Nothing else!

Between these two lines of thought, how to act since they are two very different animals?

My preferred approach as a consultant, is to simulate the two scenarios for the client, discover the challenges to be faced, create solutions and thus prepare for a solid decision making process.

This "rite" allows for a "structured" approach, far better in costs than improvising decisions in the heat of the events - whether rationing or an increase in costs.

What do you prefer?


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Rafael Herzberg's picture
Thank Rafael for the Post!
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