BRAZIL PRESIDENT: CHEAPER ELECTRICITY WILL REDUCE ENERGY COSTS AND GENERATE JOBS
President Dilma Rousseff announces historic cuts in energy prices for industry and consumers; Says that Brazilian Electricity Regulatory Agency study may lead to even greater reductions
Category: Investment, Brazil
Ideas get bigger when you share them...
News about The Brazilian State
BRASILIA - September 12, 2012 (InvestorIdeas.com Newswire) At a ceremony held yesterday at the Presidential Palace to detail new energy cost reduction policies, President Dilma Rousseff stated that the reduction in the price of energy for residential and industrial customers may be even greater than the percentages announced on September 6. On that date President Rousseff announced that residential consumers would see an average energy cost reduction of 16.2 percent and industries would see an average cost reduction of up to 28 percent starting from the beginning of 2013. In yesterday’s meeting President Rousseff stated that the reduction may be increased after the Brazilian Electricity Regulatory Agency (ANEEL) has concluded a study on energy supply contracts.
"From the beginning of 2013, residential consumers will see a reduction in their electricity bills of 16.2 percent and industries will see a reduction between 19 and 28 percent. These reductions may be even greater when ANEEL concludes their studies in March and presents the results in relation to energy supply contracts that will expire between 2016 and 2017," President Rousseff said, "Therefore, these figures allow me to say that we are taking an historic measure."
The President said that the government will renew concession contracts with energy generation, transmission and supply companies that are set to expire by 2017 and thus, ensure a cost reduction by 2013. According to President Rousseff, the renewal of concession contracts will allow investments financed by consumers to see a return on their investment. The President indicated, furthermore, that concessionaires will be compensated for investments yet-to-be paid off and will have free capital that will provide for much better investment conditions.
Companies with assets that have not been depreciated or amortized will receive indemnity payments calculated by ANEEL based on "Replacement Cost New" methodology, which has been used in the revision of tariff concessions.
"In sum, the renewal of energy generation, transmission and supply concessions under the terms we are establishing will benefit everyone, without exception," said President Rousseff, further stating that, "In addition, energy prices will drop as a result of the government's decision to reduce the taxes that every Brazilian electricity bill incurs and contributions that the National Treasury will make to fund policies aimed at the less privileged bracket of the population."
Minister of Mines and Energy Edison Lobão said that cheaper energy will generate a great impact on the economy, reducing costs, generating jobs and improving the living conditions of Brazilian citizens.
Source: Blog do Planalto
The Secretariat for Social Communication (SECOM) of the Presidency of Brazil is responsible for coordinating the public relations activities for the government of Brazil . The official website of the Brazilian State is www.brasil.gov.br. The official social media accounts for the Brazilian State are on Facebook and Twitter at http://www.facebook.com/BrazilGovNews/ and twitter.com/BrazilGovNews.
This news is published on the Investorideas.com Newswire and its syndicated partner network
Get Investorideas.com investor news and stock alerts
Free Sign Up: http://www.investorideas.com/Resources/Newsletter.asp