The Federal Government published, this Monday (13), a decree that creates ENBpar (Brazilian Company of Participations in Nuclear and Binational Energy). It is a public entity organized in the form of a corporation, which will be linked to the MME (Ministry of Mines and Energy), as provided for in the law that determines the rules for the privatization of Eletrobras.
Basically, the new state-owned company will have the function of guaranteeing the Union's control over the maintenance of the operation of nuclear plants in the country, as well as the ownership of the share capital and the acquisition of services from the plants managed by Eletrobras, specifically Eletronuclear and Itaipu Binacional.
The company will also be responsible for managing financing contracts that use resources from the RGR (Global Reversion Reserve) signed until November 17, 2016 and the administration of Union assets under the management of Eletrobras.
The published decree also highlights that ENBpar will be responsible for taking care of the current account of Procel (National Electric Energy Conservation Program) and the management of commercialization contracts for energy generated by projects contracted within the scope of Proinfa (Alternative Sources Incentive Program of Electrical Energy).
Privatization
In July of this year, President Jair Bolsonaro sanctioned, with vetoes, the MP (Provisional Measure) that provides for the privatization of Eletrobras, a state-owned company that currently accounts for around 30% of the electricity generated in Brazil. The measure had been approved in May in the National Congress, It was changed by the senators and had to be voted on again by the deputies on June 21st. 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.
