Energy: hidden cost (Brazil)
A situation that I have observed frequently is the unplanned interruption of the supply of electricity to companies and institutions. If it were below the established regulatory limit, it would not even be of note. “It’s part of the process”.
But reality shows that in selected cases in which I have provided consultancy, these interruptions were well above the limit. So what?
The interruptions result in (1) loss of revenue, (2) increased costs associated with restarting production processes, and (3) loss of workforce hours (which need to be paid but cannot generate value).
I have seen cases in which (1) an industry had to change its location due to the importance of the interruptions and (2) there was a need to invest and install a high-voltage access, since it was unfeasible on medium-voltage.
And so, the allocation of “extra” costs in operations must be considered in strategic planning to deal with this lack of compliance with regulations. And what I see most frequently is the change of productive activities to other countries, given that the total cost is lower than in Brazil.
