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Energy (Brazil): a dangerous decision

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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  • May 6, 2022
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Energy (Brazil): a dangerous decision

The eventual suspension by the National Congress of tariff readjustments of the  electric power distributors may jeopardize the credibility, and regulatory and legal security of the contracts.

This type of procedure has already been tried in the not too distant past and the results were terrible, as we all know.

It is a populist "tool", widely used in election years to "hold" (momentarily) inflation and favor of the party who wants to remain in power.

Will this initiative succeed in Congress or will there be the discernment to reject it given the harm it would cause?

Do we learn from past mistakes or are there more important factors for those in power?

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