For Pedro Rodrigues, from CBIE, the distributor’s request for judicial recovery illustrates “the precariousness in the segment”
O Power360in partnership with the CBIE (Brazilian Infrastructure Center), launches this Friday (June 7, 2024) another episode of the program Infra in 1 Minute. In weekly analyses, Pedro Rodriguespartner in the consultancy and specialist in oil and gas, talks about the main issues related to the energy sector.
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In this 90th episodeRodrigues talks about the judicial recovery process of Light SA –in 2023, the company presented a debt estimate of R$11 billion.
On May 29, 2024, the company’s recovery request was approved at a creditors’ meeting. Now, the plan goes to court for approval.
For the CBIE partner, Light’s situation illustrates the problems in the distribution sector in Brazil. “Over the last year, the distributor’s case has become emblematic for the distribution of national electrical energy, illustrating the precarious conditions of operation in the segment”it says.
And keeps going: “The main factor behind the company’s financial losses was the high rate of theft and energy theft in its concession area. In addition to losses of this nature, accounts were also pressured by the reduction in the consumer base, the return of tax credits and debts incurred during the pandemic. All these variables impact other distribution concessionaires, threatening the quality of service provided to consumers”.
Pedro Rodrigues states that approval of Light’s judicial recovery is a “important” towards renewing the company’s concession. He says, however, that it is necessary to clearly define the guidelines that will form the basis of the new contract, to guarantee “a fair and safe environment for both the dealership and the consumer”.
Watch (2min25s):
INFRASTRUCTURE IN 1 MINUTE
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