Provisional Measure 579, announced by the federal government in September, proposes a drastic reduction in the taxes and fees that contribute to Brazil’s energy costs, considered among the highest in the world.
The consulting firm Hiria recently held a conference on Brazilian government initiatives to remake the rate-setting model and reduce electricity costs to industry and consumers..
For months, electricity market players have awaited definite answers regarding electricity concessions. On September 17, the government published MP 579 and extended the term of current electricity concessions. The news put pressure on the shares of publicly traded companies in the sector and left numerous uncertainties unresolved. This panel will discuss these changes and the consequences of 579 for energy prices.
The discussion over the effects on profitability were a bit hard to understand, on first glance, in light of Cemig’s posting of a third-quarter profit of nearly R$ 1 billion, up 43%…
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