Energy: the challenge of the Brazilian budget

Energy: the challenge of the Brazilian budget

Economic analysts have published articles that converge on a harsh reality.

Revenues are overestimated and expenses are underestimated.

The consequence of this possible scenario is an important, systemic and lasting imbalance in our public accounts.

For the electricity sector, which is capital intensive, this is a situation that makes it difficult for investors to decide regarding the expansion of supply, given the lack of predictability  and legal safety.

At stake the gradual introduction of electric vehicles, the projected power consumption growth and the electrification of many energy conversion processes, replacing fuel sources.

Is this what Brazil wants?  

The interesting and convenient approach would be to have a REALISTIC budget. However, the will of governments, politicians and cronies  to open up expenses to make the usual “fiscal spree” viable prevails.