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Brazil: Regulator may intervene if privatization of electricity distribution fails

"The regulatory agency has even all the elements necessary, if the privatization unfeasibility is characterized" said Pedrosa.


Reuters Brazil
Updated: 23-03-2018 22:29 IST
Brazil: Regulator may intervene if privatization of electricity distribution fails

Wednesday afternoon's electricity blackout in Brazil brought chaos to airports, subway systems, schools and traffic. (Image Credit: Reuters)

An eventual failure in the government's plans to privatize six electricity distributors of state-owned Eletrobras, which operate in the North and Northeast, may require corporate intervention from regulator Aneel, the executive secretary of the Ministry of Mines and Energy, Paulo Pedrosa said on Friday .

"The regulatory agency has even all the elements necessary, if the privatization unfeasibility is characterized, the agency already walks with a parallel plan B, to bid for separate concessions ... An alternative if this solution, which is extreme, is adopted, would be to make a provisional intervention in the companies," Pedrosa told reporters after attending an event in São Paulo.

In this case, Aneel's bid would seek investors interested in taking over the operations in the concession areas of Eletrobras' companies, which would have to be settled by the state company, which would assume costs, such as those generated by the shutdown of all employees.

Also Read | Power supply back to normal in Brazil

Wednesday afternoon's electricity blackout in Brazil brought chaos to airports, subway systems, schools and traffic in some of the largest Brazilian cities, such as Recife, Salvador, and Belém.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

COUNTRY : Brazil

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