Brazil: Electricity bill to fall 18% without putting companies at risk, says Economy Minister

RIO DE JANEIRO, BRAZIL – The end of the extra tariff for electricity bills may cause residential consumers’ bills to fall 18% next month, without jeopardizing the financial health of energy companies, said the Minister of Economy, Paulo Guedes, on April 7.

At an event to launch credit instruments of Banco do Brasil, the minister said that the removal of the water scarcity flag considered the levels of reservoirs and was not decided based on “decrees”.

“The electricity bill will fall 18% next month, without a decree, without putting companies at risk, on the contrary,” declared the minister. According to him, the health of the companies in the electric sector is recovered, while previous governments harmed the sector with interventionist policies.

On April 6, President Jair Bolsonaro announced the end of the tariff flags on the electricity bills. Through social networks, the president informed that the recovery of the reservoirs of hydroelectric plants would cause the government to grant the green flag to all energy consumers as of April 16. He predicted a reduction of about 20% in tariffs.

ENERGY SECURITY

Speaking at the Banco do Brasil event, Guedes said that the government is managing to change the axis of international discussions about the environment. According to the minister, Brazil is consolidating itself as a country with an essential role in ensuring food and energy security on a global scale.

“This war [between Russia and Ukraine] only complicates things, but the great truth is that Brazil is being perceived as a major agent, with a decisive role, of food security and energy security,” commented Guedes.

With information from Agência Brasil