We had the opportunity to watch the Webinar “The Weight of Light: Tariffs, Charges and Inefficiencies”, on 04/06. A great chat with Paulo Pedrosa, President of ABRACE and Luiz Eduardo Barata, President of the National Energy Consumers' Front.
“Paulo Pedrosa warned during a webinar that Brazil is wasting its potential for clean and cheap energy with charges and subsidies”.
For Luiz Barata, “the disorganization of the sector increases the cost of energy: poorly distributed subsidies, high taxes, and political decisions pass on unnecessary costs to the final consumer”.
Our review
The rate in Brazil today is high. That's why it's said that energy here is cheap, but the electricity bill is expensive. The problem lies in the amount of subsidies it carries.
The main proposal of the provisional measure envisages increasing the number of low-income consumers exempt from paying electricity bills or entitled to a discount, reaching about half of the population.
According to the article, published in Editorial O ESTADO DE SÃO PAULO on 23/05/2025, about Provisional Measure No. 1300, dated 21/05/2025, the benefit will cost around R$ 4.45 billion, and its cost will be passed on to other consumers, such as the middle class and the electrointensive industry. Why not for the Treasury?
Just to cite one example, in Colombia, a meritorious social project like this is funded in its entirety, by the Government, through its Treasury. For these and other public interests, the electricity rate in that country is not as expensive as in Brazil.
Antonio Araújo da Silva
Expensive energy threatens competitiveness, Abrace warns: https://bit.ly/43NpMgK
Disorganization of the sector increases energy costs, says Luiz Eduardo Barata: https://bit.ly/45a9roU
