Minister promises 4% reduction in electricity bills with provisional measure

The government foresees a reduction of close to 4% in energy bills with the issuance of a provisional measure containing a series of actions to pay off loans in the electricity sector that have been burdening consumers, said this Tuesday the Minister of Mines and Energy, Alexandre Silveira.

The provisional measure for the electricity sector, which has been promised since the end of last year and was forwarded this week to the Civil House, should promote tariff relief, mainly through the use of resources obtained by the government in the privatization of Eletrobras.

The main action planned is the securitization of around 26 billion reais that would be contributed by Eletrobras in the long term in the Energy Development Account (CDE) to pay the Covid Account and the Water Scarcity Account – two loans that were taken out in times of stress in the electrical sector and that are weighing on the electricity bill.

“This bill is now a delayed-effect bomb that exploded in the lap of the Brazilian consumer, we are going to pay these bills, allowing a reduction of around 4% in the energy bills of all Brazilians”, stated the minister in an interview with CNN.

Still according to Silveira, the MP will “make compatible” the energy transmission projects auctioned by the government since last year with new wind and solar generation projects in the Northeast.

This point, however, will extend billion-dollar subsidies to renewable energy projects that have not yet managed to get off the ground. These subsidies are also paid by consumers via electricity bills and are the fastest growing, being among the main ones funded by the CDE.