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What will the post-covid Brazilian electric sector look like?

image credit: Debt has become a very important factor
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...

  • Member since 2003
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  • May 21, 2020

What will the post-covid Brazilian electric sector look like?

There is a consensus that one of the most important effects of the pandemic will be the significant increase in debt. From Brazil as a country, from companies and institutions and from individuals.

Analysts predict that a not insignificant part of companies will close their doors for lack of viability.

Those who are able to continue their operations should enter a "state of war" to minimize costs and survive.

The electricity sector cannot escape this challenge because the tradition of simply passing on costs to the tariffs is not viable on this journey.

It will be necessary to expunge a list of dubious programs involving subsidies, incentives, research and development programs and many others. Now the priority is to survive.

The decision may be difficult due to the implications but it is conceptually very simple. Actually obvious!

Rafael Herzberg's picture
Thank Rafael for the Post!
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Dr. Amal Khashab's picture
Dr. Amal Khashab on May 21, 2020

As you said the priority is to survive all. Therefore I expect all countries, companies, and institutions will take very hard conservative programs in all directions. The main target is to lessen expenditures as much as they can. No ways for incentives at all but maybe some longer grace periods. In general, it looks like a state of war shrinked economy.

Rafael Herzberg's picture
Rafael Herzberg on May 21, 2020

Sure! Better to engage in a great "war" effort but survive! 

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