Pedro Rodrigues, from CBIE, talks about the new guidelines published by the government for the distribution segment
O Poder360in partnership with the CBIE (Brazilian Infrastructure Center), launches another episode of the program this Friday (June 28, 2024) Infrastructure 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 93rd episodeRodrigues talks about the new rules for the renewal of energy distribution concessions in Brazil, published as a decree in the DOU (Official Gazette of the Union) on June 21, 2024. Read the full of the decree published in the Official Gazette of the Union (PDF – 256 kB).
The day before publication, the Minister of Mines and Energy, Alexandre Silveirapresented 17 points that companies will need to meet to ensure the maintenance of their contracts. Among the items listed is the limitation of dividend distribution to 25% – the legal minimum – for companies that fail to meet technical and economic criteria in the provision of the service. This was the point of greatest tension among the government’s proposals to tighten distribution rules.
The inclusion of the mechanism had already been signaled by the government and the distributors tried to remove it from the final text. Abradee (Brazilian Association of Electric Energy Distributors) understands that the limitation could be harmful to energy consumers, as the prospect of dividends is the driving force for raising funds for investment.
The entity representing the distributors stated that although the guidelines for the extension of concession contracts create regulatory stability and legal certainty for the segment, “challenging criteria” were inserted into the text, which, according to Abradee, will demand more investments and additional costs.
“It is important to define reasonable deadlines and conditions, preserving market competitiveness. At the end of the day, advances need to be good for both consumers and distributors”says Rodrigues.
Watch (2min29s):
INFRA IN 1 MINUTE
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