Eletrobras privatization left for next Brazil administration

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Wednesday, July 11, 2018

Brazil's lower house of Congress will not vote on the bill to privatize state-run utility Eletrobras this year.

Lower house speaker Rodrigo Maia said the privatization should be dealt with by the next administration, following the October presidential election. Opposition lawmakers had been pressuring Maia not to put the bill to a vote during the second half of the year.

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The announcement came shortly before the lower house approved a separate Eletrobras bill allowing the sale of six of its distribution subsidiaries. The auction to sell up to 90% of Eletrobras' shares in its subsidiaries in the northern states of Roraima, Amazonas, Piauí, Alagoas, Rondônia, and Acre is scheduled for July 26 on São Paulo's B3 stock exchange.

The bill, which still needs to clear the senate, also modifies an electric power subsidy program to fully cover the electricity bills of low-income families consuming up to 70kWh per month. Currently, these families get discounts of 10% to 65% for consumption of 30kWh to 220kWh.