Bolsonaro sanctions Eletrobras MP with vetoes; understand the changes

President Jair Bolsonaro (no party) sanctioned, with vetoes, the MP (Provisional Measure) that provides for the privatization of Eletrobras, a state-owned company linked to the MME (Ministry of Mines and Energy) and which accounts for 30% of the energy generated in Brazil. The sanction was published, this Tuesday (13), in the Official Gazette of the Union.

Custom-made had already been approved by the Chamber in May of this year, but it was changed by senators and needed to be voted on again by deputies on June 21. It was only with this approval that the document was sent for presidential sanction.

The MP's focus is to sell Eletrobras shares until the Federal Government no longer holds 60% of the state-owned company's shares and only owns 45% of the company. The idea behind this, according to the Government, is to make the Brazilian electricity sector more competitive and efficient.

According to the Union, the privatization of the state-owned company will help guarantee a reduction of up to 7,36% in the amount paid by Brazilians on their electricity bills. However, sector entities claim that the value will become more expensive, because parliamentarians included measures in the text that will generate costs to be paid by consumers.

Vetoed points

Among the main points vetoed by the president are the topics that forbade the extinction of some subsidiaries of the state-owned company and the right for employees fired by the company to acquire Eletrobras shares at a discount.

Bolsonaro also excluded the item that required the government to use employees laid off from the company for one year and the obligation for Eletrobras to relocate the population that is within the range of high-voltage transmission lines. The requirement for the names nominated for the board of directors of the ONS (National Electric System Operator) to undergo a hearing in the Senate was also left aside by Bolsonaro.