Minister says Brazil’s energy and water crisis has been “overcome”

RIO DE JANEIRO, BRAZIL – “The country has overcome the energy crisis, we had neither rationing nor blackouts. It was very different from what happened in Brazil in 2001,” when energy supply and distribution was compromised throughout the country, the Minister assured during a live broadcast alongside Brazilian President Jair Bolsonaro.

Last year’s severe drought left the Brazilian hydroelectric dams, responsible for the majority of energy consumed in the country, at minimum levels and forced the government to activate reserve thermoelectric plants and to implement energy consumption measures for fear of a blackout or rationing.

While not mentioning the blackouts recorded in the northern state of Amapá last year, Albuquerque celebrated the Executive’s management of the water and energy emergency, which forced an “exceptional” operation of the Latin American giant’s thermoelectric plants and energy imports from countries such as Argentina and Uruguay.

However, the Minister acknowledged that the price of electricity in Brazil remained “a little higher” in 2021. With a rise of almost 22%, the increase in electricity prices, triggered by the coronavirus pandemic and the lack of rainfall, was one of the main culprits of high inflation in Brazil in 2021, which closed the year at 10.06%, its highest in 6 years.

“Our electricity bill remained a little higher, but we also overcame that. The country continues to grow, generating employment and income,” Albuquerque said, adding that the government is working to restore water reservoirs, which will allow the cost of energy to drop this year, he said. He pointed out that the heavy rains since October have led to a significant improvement in reservoirs, although he warned that the situation “still demands attention, even though it is much better” than last year.

“That is very positive and reassures us that we will not have issues in 2022,” he stressed. For his part, Bolsonaro said that he is negotiating with Congress the approval of a bill that could reduce both fuel and electricity tariffs this year, when he intends to run for reelection in next October’s presidential elections.

He further said that the government is not responsible for the extra rates charged on the electricity bill for several months due to the emergency situation that the country is experiencing. “When a new rate is introduced in the electricity bill, it is to pay for an energy source that is more expensive than hydroelectric. We don’t know when, but that is going to end.”

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