Clipping of news on Brazilian Culture, Law and Citizenship
01/19/2015
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Simulations based on the 'tariff reality' of each region of the country and the budget of the CDE show worse results than the most pessimistic expectations so far
The extraordinary tariff revision will be provided to balance the books of the distributors
The bills will have a high even higher than estimated in recent days and reach up to 60% in the Southeast, South and Midwest, said a government source told Reuters news agency. The estimate considers the extraordinary increase in February and ordinary adjustments for electricity distribution throughout the year. In the case of North and Northeast regions, the increase in tariffs would be on average around 25%. The source had access to simulations based on "tariff reality" of each region of the country and the budget of the Energy Development Account (CDE).
The calculations, however, do not include a possible extension of the term of payment of 17.8 billion reais loans last year for banks to electricity distributors. If lengthened the period of two to four years, as desired, may be reduced by half the effect of the payment of the loan in ordinary adjustments. Thus, the combined effect of extraordinary review more adjustments could be "below 50%" in the Southeast, South and Midwest, according to this source.
The estimate of the Mines and Energy Minister Eduardo Braga is much more optimistic. This week he said the tariff adjustment should be below 40%, against the projection of one's National Electric Energy Agency (ANEEL).
Expenses - The extraordinary tariff revision will be provided to balance the books of the distributors in order to cope, mainly to the increase of 46% in the Itaipu energy prices and increased spending on CDE, after the National Treasury decided not to supply the account this year. Next Tuesday, Aneel will open public hearing on the 2015 budget of the CDE, which will be this year expenditure of 26 billion reais and R$ 3 billion revenue, according to the source.
As the National Treasury should not make contributions to the account this year, a difference of 23 billion dollars will be paid through the tariffs of energy consumers. Between expenditure stands by the CDE in 2015 are, for example, payment of compensation to generators and transmitters, which should total about 5.5 billion reais, subsidies for low-income consumers rate (2 billion dollars) and encouraging generation with coal (1.2 billion reais).
Source: SEE
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This article was translated by an automatic translation system, and was therefore not reviewed by people.