Brazil lagging behind the market: what to do?

The tariffs and the price paid for Brazilian electricity are not competitive. This harsh reality has been shown to me several times by directors of multinational companies who compare their units around the world.

One of the reasons is the CDE - Energy Development Account - one of the main charges in the Brazilian electricity sector, in addition, of course, to taxes.

The CDE finances:

  • Subsidies for low-income consumers

  • Discounts for irrigation and aquaculture

  • Discounts for incentivized sources (wind, solar, biomass, small hydroelectric plants

  • Cost of Fuel for isolated systems, such as in the Amazon region

  • Tariff moderation — avoiding sharp increases in electricity bills

  • Compensation and public policies defined by the government


In recent years, the CDE has grown significantly due to:

  • Expansion of subsidies

  • Increased fuel costs in isolated systems

  • Public policies financed via tariffs, not the federal budget

  • Compensation for old assets (RBSE)


It is more than time to "clean up" these costs so that the country can compete. This will generate more value, which would benefit EVERYONE much more.


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