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January 14, 2022
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Decree amortizes financial impact of drought on the electricity sector

The presidential decree that regulates mechanisms to face the financial impacts caused by water scarcity in the electricity sector was published in today’s edition (14) of the Federal Official Gazette. These mechanisms were created by Provisional Measure No. 1078, published in December last year. Decree amortizes financial impact of drought on the electricity sectorDecree amortizes financial impact of drought on the electricity sector

THE PM published in December foresaw the use of resources that would be collected through tariff charges, to deal with the extra expenses of the electricity sector. Through these resources, we sought to amortize the financial impacts on the sector.

already the decree published today (14) creates the Water Scarcity Account, by the Electric Energy Commercialization Chamber (CCEE). It will receive the necessary resources to cover, “totally or partially, the additional costs resulting from the situation of water scarcity for the concessionaires and permissionaires of public service of electric energy distribution”.

According to the General Secretariat of the Presidency of the Republic, the MP enabled the structuring of financial operations guaranteed by the Energy Development Account (CDE), in order to mitigate the effects of the increase in electricity generation costs on distributors and energy consumers. electricity.

And to prevent consumers who migrated to the Free Contracting Environment from evading bearing the additional costs borne by distributors, the MP provided for instituting a tariff charge for migration cases.

“Given the systemic nature of these additional costs, the charge will be borne by all consumers served by the impacted distributors, except for the portion of deferrals, which will fall on the consumers of each distributor that obtains financing for this component”, justified the Secretariat.

The expectation is that, with the new decree, the “hygidity of the entire electrical system will be guaranteed, in order to allow the rapid injection of resources into the distributors”. At the same time, he adds, the aim is to make it possible for the transfer to consumers of the additional costs observed in the generation of electricity to be done “in a smooth and diluted way over time”.

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