Guidance was given by Lula in a meeting with sector representatives; reformulation of rules will aim to review measures that impact the electricity bill
The president Luiz Inácio Lula da Silva (PT) determined the creation of a working group to discuss a project to reform the electricity sector. The guidance was given to the Minister of Mines and Energy, Alexandre Silveiraduring a meeting this Wednesday (April 10, 2024) with representatives from the area.
O Power360 found that the group will listen to sector agents and congressmen to prepare a proposal by the end of the year that aims to review rules that impact the electricity bill. The forum will be coordinated by Silveira, who will also be responsible for assembling the team.
The meeting with sector representatives and experts lasted around 3 hours. It was held behind closed doors and was aimed at presenting ideas to reduce electricity bills. Among the proposals, the Power360 found that the reduction of subsidies funded by energy tariffs or transfer of part of them to the Union budget were mentioned.
Lula said when opening the debate that he is dissatisfied with the price of energy for the poorest. He said that the government already has all the diagnoses of the sector's situation, but that it is now necessary to develop the remedy in dialogue with the National Congress and with companies in the sector.
According to the president, this year his administration will present to society what he called “new energy program for the country, which is fair and inclusive”. He also stated that he intends to hold an open debate with society so that the people who pay the bill are aware of the current situation in the electricity sector.
Silveira said the sector is heading towards “on the edge of the cliff”. He stated that in addition to the structural measures to reformulate the segment, it is necessary to think about changes in the short term to finance the subsidies that are currently paid for by the energy bill.
According to Luiz Eduardo Barata, president of the National Energy Consumers Front, the meeting was positive and a 1st step towards implementing changes that provide a reduction in tariffs.
“We highlight the problems that we perceive in terms of cost and tariffs, in addition to the sustainability of the sector and cost issues. We see that both the president and the ministers are aware of the sector’s problems and recognize the need to reformulate the sectoral framework”he said.
The meeting was held 1 day after Lula to sign the MP 1,212 of 2024published this Wednesday (10.Apr) on DOU (Official Gazette of the Union). The text anticipate resources owed by Eletrobras that would be paid in the coming years to reduce the electricity bill. It also extends subsidies for renewable energy sources.
The provisional measure was seen by the market – financial and electricity – as a palliative. Entities speak of a serious risk that it will cause the opposite effect by extending subsidies and ending Eletrobras' annual contributions to the CDE (Energy Development Account), which make the burden of charges less for consumers.
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