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Water crisis in Brazil may demand new measures and raise electricity bills – ANEEL

RIO DE JANEIRO, BRAZIL – The shortage of hydroelectric power, amid the worst rainy period in reservoir areas in 91 years may require new exceptional measures with the potential to raise electricity bills, such as more expensive thermal generation and energy imports from neighboring countries, said on Tuesday (17) electricity regulator ANEEL’s director Elisa Bastos.

“Depending on hydrological evolution and consumption, costs may be higher,” she said.

In a hearing at the Chamber of Deputies’ Mines and Energy Commission, she said ANEEL is still considering complementary measures to the values of the tariff flags when faced with an “exceptional” situation.

After raising the cost of the red level 2 tariff flag by 52%, a public consultation was opened to assess the prospects for an additional increase. “The subject was discussed in public consultation, received input until late July and we are assessing the contributions received and considering measures,” she said.

According to the director, the current “hope” for the hydroelectric situation is “rainfall,” in addition to consumers’ reaction to higher costs and the appeals of campaigns for conscious energy use.

The director pointed out that authorities are assessing the best measures, focusing on guaranteeing electric power supply and less costly solutions for consumers.

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