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Saving the Brazilian power sector

There are four actions involved:

1) Privatization

Thus Brazil gets rid of the cronies, the sleazy deals, the economic-financial imbalances that characterize the great majority of the generation and distribution companies controlled by Federal, State and Municipal Governments.

2) Merit of costs

Regulators and public institutions linked to the power sector should be obliged to guide all their behavior around cost merit, because it is about putting Brazil back on the map of competitive global parity.

3) Liabilities

Hundreds of billions USD form a liability that needs to be resolved permanently in order for the sector to regain balance and, above all, predictability. Before this happens, we will continue with uncertainties and risks completely out of global competition.

4 °) A huge list of "external" costs

Special charges, taxes, incentives and others should be removed ASAP. Let the clients choose how they want to contract power and mitigate the associated risks.

These are quite simple and urgent actions but ... there are powerful people interested in maintaining the exploitation of all who pay the bill.

Will we have the courage and determination to turn around this situation, or will we remain in the third world?

Rafael Herzberg's picture

Thank Rafael for the Post!

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