Deputies can vote today (19) MP on privatization of Eletrobras

The Chamber of Deputies may vote this Wednesday (19) on MP 1031/21 (Provisional Measure 1031/21) which creates the conditions for the privatization of Eletrobras, which today accounts for 30% of the energy generated in the country. The Plenary session is scheduled for 1:55 pm.

The privatization model provides for the issuance of new shares to be sold on the market without the company's participation, resulting in the loss of voting share control currently held by the Union.

Despite losing control, the Union will have a special class action (golden share) which guarantees veto power in decisions of the shareholders' meeting in order to prevent any one of them or a group of several from holding more than 10% of Eletrobras' voting capital.

The text's rapporteur, deputy Elmar Nascimento (DEM-BA), is negotiating some changes with the parties and the government. Among them, the reduction in payments that the Union owes to the company for the incorporation of assets that have not been fully amortized and the commitment to invest in thermoelectric plants by the new state-owned company to be created to take over Itaipu and Eletronuclear.

Social program

The rapporteur of the provisional measure included the forecast that 25% of Itaipu's financial surplus, estimated at around US$ 1 billion per year, will be allocated to the creation of a new social program. The other 75% would be used to subsidize the reduction of the electricity bill.

According to Nascimento, these terms were agreed with the government. “This was a new feature included at the request of the government, a request from President Bolsonaro that we will comply with,” said the deputy.

Third privatization attempt

This is the government's third attempt to privatize Eletrobras in recent years. The first time was in January 2018, through PL 9463/18. The project was discussed in a special committee, but was not voted on. Some points of MP 1031 were already included in the opinion presented to the commission, such as the allocation of resources to the São Francisco River basin.

The second time was in November 2019, with PL 5877/19. Now, the government hopes to move forward with privatization through a provisional measure, effective immediately.