Associations and entities that represent the electricity sector are concerned about the new report from Provisional Measure No. 1,055 – the so-called Water Crisis MP – which aims to guarantee the supply of energy to Brazilian industries and homes in the midst of the biggest drought in the last 91 years.
The new report, presented by federal deputy Adolfo Viana (PSDB/BA), on October 1st, has been receiving criticism for adding topics that clash with the purpose of the measure – the famous “jabutis”.
The document basically adds changes to the electricity sector, changing laws and guaranteeing benefits to generation sources that have no relation to the topic. Among the most controversial topics are those that provide for subsidies for coal plants and the construction of new gas pipelines for thermoelectric plants.
At the beginning of this week, at least ten entities in the energy sector signed a manifesto rejecting the MP, claiming that the movement brings unnecessary benefits to most segments of the economy.
The entities also point out that the document creates distortions and delays the modernization of the electricity sector. “We need clear rules and measures that reduce the cost of our energy, to continue in a sustainable movement to recover the economy, generating jobs and income for Brazilians”, highlighted the manifesto.
Calculations made by one of these entities – ABRACE (Association of Large Industrial Energy Consumers and Free Consumers) – indicate that the changes made to the MP could generate a bill of up to R$ 46.5 billion to be paid by consumers in electricity bills.
The numbers show that just in the article that provides for the apportionment of the construction of new gas pipelines there will be an additional cost of R$ 33 billion in the value of Brazilians' electricity bills. Furthermore, the extension of the end of the coal subsidy will also add another R$ 2.8 billion to tariffs.
Entities that signed the manifesto
- HUG – Association of Large Industrial Consumers of Energy and Free Consumers.
- ABDAN – Brazilian Association for the Development of Nuclear Activities.
- ABSOLAR – Brazilian Association of Photovoltaic Solar Energy.
- ABEEólica – Brazilian Wind Energy Association.
- ABEMI – Brazilian Association of Industrial Engineering.
- ABIAPE – Brazilian Association of Investors in Energy Self-production.
- HUG – Brazilian Association of Energy Traders.
- ABRADEE – Brazilian Association of Electricity Distributors.
- ANACE – National Association of Energy Consumers.
- APINE – Brazilian Association of Independent Electricity Producers.