Energy (Brazil): “Covering the sun with a sieve”?
Reducing tariffs through the “provisional” MP that establishes a financial operation in which the federal government undertakes to use the resources from the privatisation of Eletrobrás to pay off some loans, which are currently embedded in consumers’ electricity bills is only but “creative accounting”, which seen in a longer term will not reduce costs.
What needs to be done is to reduce actual costs in the electricity sector. Systemically. Do what the countries have already done and Brazil has not.
Implementing demand response programs, eliminating subsidies that are no longer necessary, reducing “power theft and no longer approving”crony projects”is what should be on the agenda.
Meanwhile, the populism that has reigned in the electricity sector for decades remains firm and strong!
