Residents of the Pará state now experience the highest residential electricity costs in Brazil.
Following an 11% rise from the local provider, Equatorial PA, the energy cost increased to R$ 0.96 per kWh, excluding certain fees.
Nationally, the average stands at R$ 0.72 per kWh.
Equatorial PA, which took over the former Celpa in 2012, serves around 2.9 million consumers in Pará.
Pará’s economy relies heavily on mining, especially iron ore and bauxite production.
The state also benefits from the Amazon’s timber and agriculture. Infrastructure challenges persist, impacting potential growth.
Before this increase, it was fourth in energy cost rankings. The latest data now places it above Enel Rio.
The tariff revision process in Pará was contentious. Initially, a 16% rise was suggested, but local opposition led to a consensus of 11%.
The state has a significant energy loss, attributed to both technical failures and theft, influencing this hike.
In Pará, supplying electricity across expansive regions with sparse consumer density is challenging.
The provider covers all 144 municipalities in Pará, a significant portion of Brazil’s landmass. This geographical spread escalates distribution costs.
Equatorial PA emphasized the challenges of their operational logistics due to the state’s vastness.
pThe low population density and primary residential energy consumption mean higher individual costs.
Many in Pará struggle with bill payments due to high poverty and energy costs. About 77% of residential users benefit from a Social Tariff, funded by a national energy account.