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Brazilian power market: "precarious"?

image credit: Is respect for sale in Brazil?
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 11, 2020

Brazilian power market: "precarious"?

News published by CanalEnergia shows - again and wide in the open - the sad scenario in which the electricity power sector is inserted in Brazil for years in a row.

The issue in focus of the news is the "urgency" of the proposal that deals with the debts of the "GSF" that lasts for 5 years.Yes you read correctly!

The bottom line has two prevalent aspects:

1) Lack of responsibility and correction of principles

The leaders - all of whom have to do with the electricity sector - do not "make it happen" - I mean ... what is necessary to respect the existing official rules? How to enforce it?

2 °) Customers are in fact alienated

They do not fight as they should to resolve a situation involving about 2 USD Billion of default, making the Brazilian power  market without robustness and credibility.

It is high time to turn around this situation. Instead of sharply transferring the cost of this misconduct  to power prices and tariffs, actions to make the rules respected is only but a must.

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