Aid to the electricity sector should increase the electricity bill by 20%



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The costs of the coronavirus crisis in the electricity sector must be passed on to consumers across the country, including those considered “large.” According to the association of large energy consumers (Abrace), the expectation is a 20% increase in bills, diluted over the years.

Credits: Alex Regis

The discussion right now is about how this cost will be diluted. It is true that a large part should go to the rate, including interest, but the size of this is what worries. The government is still finalizing the way in which assistance will be provided to the sector, after members of the Executive itself and of the National Electric Energy Agency refuse to include all costs in the rate.

The main measure that has been designed for the electricity sector is a $ 1 billion loan to electricity distributors. The financing will reach R $ 17 billion, which will be paid in 60 months. The loan will be coordinated by BNDES and granted by a group of private banks, in a fund called Conta-Covid.

The loan is necessary, the government evaluates, to maintain the financial sustainability of the distributors and the entire electricity sector, since these companies are the basis of the system. Hence the special concern. The government sees the loan as an alternative to prevent a possible default problem in the distributors from generating a domino effect in the sector.

“In addition to the current situation of the increase in energy tariffs, the impact of the currently proposed measures may reach an increase of more than 20% in energy tariffs, with an effect on inflation and detrimental results for the economy in the long term” , says the letter from the associations.

Rates were already being pressured by the dollar (which refers to the Itaipu account), higher transmission costs and the reserve energy bill (when the consumer pays to maintain the stability of the system).

A strong default in the sector is already taken for granted. Aneel has already banned the cut in the power supply of those in debt. There is also a sharp drop in demand, with an impact on current contracts.

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