Free Market Energy in Brazil Should Account for Up To 50 Percent of Consumption

RIO DE JANEIRO, BRAZIL – In ten years, the free market for energy should account for over half of Brazil’s consumption, concentrating all large-scale industrial and commercial consumption, and possibly also the largest residential segment, according to Wilson Ferreira Junior, president of state-owned power giant Eletrobras.

“I strongly believe in this market, I think it is the way out, just like in other countries in the world, and it is part of the modernization project of the sector,” said the executive, mentioning a Senate bill, during a live broadcast last Friday afternoon promoted by Genial Investments.

He particularly stressed the segmentation trend observed by marketing agents and the customization of contracts and services in the free market, to better serve consumers. And he pointed out, in particular, the growing interest in certified energy from renewable sources.

“And we will have an advantage in this, us Eletrobras and Brazil, but ourselves more than Brazil,” he said, referring to the fact that the state-owned company’s electric grid counts on 96 percent of renewable sources, while in Brazil this rate is about 80 percent.

Ferreira Jr. also noted that after a time of lower prices, affected by the reduction in economic activity caused by the pandemic, the start of a rebound is visible, reflecting the markets’ optimism about the economic recovery.

The president of Eletrobras downplayed the problems faced by some free-market agents when social distancing measures were first implemented, a time when consumers went to court seeking injunctions that would allow for flexibility in contracts. “There is very little attempt to change contracts,” he said.

According to him, Eletrobras only recorded renegotiation requests for the payment of bills due to cash flow problems faced by its customers.

“This is a rigorous market, where bilateral relations are very important, and that largely explains why there is no cheating,” Ferreira Jr. said, referring to a potential attempt by consumers to seek a reduction in contracts to benefit from the price drop in the spot market.

Source: Estadão Conteúdo