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Selling off assets has filled government coffers, but ended up boosting power prices

The head of Brazil's national electricity regulator, Aneel, is still not completely behind the Eletrobras privatization plan, saying it will have a significant and prolonged effect on electricity prices. “Selling off assets has filled government coffers, but ended up boosting power prices, Aneel president Romeu Rufino said following the approval of a 16% increase in power prices at utility Copel. If the government sells assets with amortized investments, it should pass on savings to consumer power prices, he said.”

Source: Valor Econômico

Eletrobras Privatization Proposal Moves Ahead

The Congressional Joint Commission has voted in favor of Provisional Measure 814/2017 (MP-814), which authorizes the privatization of Eletrobras and six of its subsidiaries. Congressman Henrique Fontana denounced the measure, saying “this is a report that determines the increase of energy bills by roughly 5 percent. It facilitates the privatization process and sale of Brazilian public property. Even worse, it proposes that 20 percent of the Social Fund, money derived from Pre-Salt oil and Pre-salt gas that, until this moment, was reserved for investment in education and healthcare, will be withdrawn to finance a gas pipeline construction program.”

Source: www.telesurtv.net