The external scenario of conflict between Russia and Ukraine and possible volatility and devaluation of shares of Eletrobras and companies of the group should not alienate investors or affect the privatization process of the company in the electricity sector, said today (22) the president of the state-owned company, Rodrigo Limp, in an online press conference.
According to him, the schedule is maintained and expects to conclude the privatization process on May 13.
“Eletrobras is a long-term asset. We work with the expectation that there will be great interest in capitalizing the company”
For the privatization of the company, there are internal and external steps to be fulfilled. Among the internal phases, Limp mentioned the preparation and publication of the offer, negotiations with the Securities and Exchange Commission (CVM) and holding a financial roadshow (meetings with potential investors). Externally, he cited the approval of the process by the Federal Audit Court (TCU).
Commenting on the risk of market concentration in the area of energy generation, with the transfer of 30% of the participation from the State to the private sector, Limp argued that Eletrobras will no longer be the controller of Itaipu and Eletronuclear, which the percentage of generation is already decreasing.
He also recalled that the Administrative Council for Economic Defense (Cade) has the function of preventing this market concentration.
”Regulation is there to prevent any effect of market concentration in the electricity sector. Today we do not have that vision”. And he added: “We trust the regulation of the sector to guarantee the proper functioning of the market”.
cove 3
Regarding the Angra 3 Nuclear Power Plant, the president of Eletrobras said that the company has made investments in the so-called Critical Path Acceleration Plan. The next step is the definition of the tariff by the National Energy Policy Council (CNPE), after the studies have been completed by BNDES. The planned completion date for the plant has been pushed back by one year, from November 2027 to November 2026.
Considering the sanctions imposed by the international community on Russian companies, Limp was asked about the Angra 3 memorandum of understanding with the State Nuclear Energy Company of Russia (Rosatom), including the prospect of the Russian company participating in the construction consortium.
According to him, there is no information about Rosatom’s participation in the consortium, because it is a process that will still be built in terms of the definition of the tariff. Limp also informed that the transfer of control of Itaipu and Eletronuclear, already approved by Aneel, will only be completed after the privatization of Eletrobras.
provisions
The president of the state-owned company also commented on the company’s result in 2021, in which it obtained a profit 11% lower than in 2020. According to him, the drop was the result of operating provisions, which had a net increase of R$ 7.519 billion, with emphasis on the increase of R$ 10.8 billion related to the compulsory loan.
According to him, the current management of Eletrobras has been improving the provisioning criteria and expects that judicial decisions will now follow the company’s positions. In the case of unfavorable decisions, he informed that the company will have to make provisions, and admitted that there are a large number of lawsuits, in several courts.
