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Distributors rush to spin off generation assets - Brazil

Published: Thursday, September 8, 2005 16:16 (GMT -0400)More news from Brazil

By Business News Americas staff reporters

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Brazil's power regulator Aneel has approved the plans of several distribution companies to spin off new generation units in line with federal legislation that requires distribution operations be separated from other business by September 15, local press reported.

Aneel has also granted some extensions on the deadline to spin off generation assets.

Among the distribution companies that have had their plans either approved or the deadline extended are Elektro, Light, Cemat, Celpa, Coelba, Celtins and Caiuá.

There are 64 power distribution companies in the country and most have some kind of power generation operations.

For example, São Paulo-state distributor Elektro has 4MW in two small-scale hydroelectric plants, which will be managed by a holding company separate from its other operations in 90 days.

Light, which operates in the southeastern state of Rio de Janeiro and is controlled by France's state power company EDF, has been granted until December 31 to spin off its 852MW installed capacity under a new holding company.

Meanwhile Santa Catarina state power company Celesc is also seeking an extension from Aneel because it has plans to sell its generation assets.

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