Blackout: Bolsonaro Exempts Amapá State Residents from Electricity Bills

RIO DE JANEIRO, BRAZIL – The General Secretariat of the Presidency announced that President Jair Bolsonaro on Wednesday, November 25th, signed a provisional measure (MP) exempting Amapá state residents from paying their electricity bills. According to the Planalto Palace, the exemption is applicable to the bill covering the thirty days prior to the date of the MP’s publication.

On November 3rd, a fire in a substation transformer left 14 of the state’s 16 cities with no power. There were more than 80 hours without electricity; currently the population is limited in terms of supply, on a rotation system.

In an ordinance published on Friday, November 21st, in the Federal Gazette, Alexandre Lucas Alves, the national secretary for Civil Protection and Defense, recognizes “by summary procedure, the state of public calamity in the Amapá state area, affected by the disaster”.

In order to finance the benefit granted to Amapá residents while not raising the electricity bill for consumers in other states, the government issued a Provisional Measure releasing an extraordinary credit line to cover the exemption, through the Energy Development Account (CDE). As compensation, it anticipated by one month the end of exemption from collection of the Tax on Financial Transactions (IOF) on credit, insurance and exchange transactions. In a decree also signed on Wednesday, President Bolsonaro shortened the validity of the IOF tax exemption to November 26th; the exemption was originally scheduled to last through December 31st.

The signing occurred in a ceremony closed to the press, at the Brasília Air Base, in which several officials were present, including president of the National Congress Senator Davi Alcolumbre, who is from Amapá state.

“We are helping somewhat, I know they deserve much more, but we are doing our best here. We also thank the parliament which has been in favor of passing this provisional measure”, said the President on a social media streaming during the signing of the MP. “This is a great gesture for the people of Amapá who endured this tragedy for over 20 days. I am sure that here is a way to repair the damage to the Amapá residents, to sign a provisional measure and recognize the hardship they have gone through,” said Alcolumbre.

“Through this measure we are trying to protect the state’s consumers, while causing no damage that would render the [power] company unfeasible. In parallel, all other measures are enabled to determine liability resulting from potential inadequate use of the public power supply service,” added the portfolio.

Provisional measures have the force of law once published in the Federal Gazette. However, they must be passed by Congress to become permanent laws. The government also allowed the National Institute of Social Security (INSS) to anticipate the payment of social welfare benefits (retirement benefits and pensions) and assistance (BPC) to Amapá’s residents.

According to the General Secretariat, Bolsonaro also issued a second MP to free an extraordinary credit of R$80 million to the Ministry of Mines and Energy. This amount will enable the transfer of resources to the Energy Development Account (CDE), the Planalto reported.

“The amount will be reimbursed by the federal government’s own resources and will not burden consumers or electricity bills of other states. To this end, an extraordinary credit will be granted, with the increase in expenses offset by the end of the exemtion for IOF (Tax on Financial Transactions), which would have remained in force until the end of the year,” reported the portfolio.