Fri, Oct 30

Brazil: The Free Power Market and the Public Deficit

Over the next two years, the free energy market will become available to all consumers, including those connected to the low-voltage.

Given the advantage of lower prices compared to regulated tariffs, a massive migration to the free market is to be expected.

What puzzles me is: how will the significant drop in tax revenue—currently collected through electricity bills—be addressed?

The issue involves a loss of tax revenue amounting to billions of Dollars per year.

And what about this impact on public finances—how will it be handled?

It is crucial that the federal and state governments clarify how they intend to deal with this matter. Or, as so often happens in our country, will we simply "let things take their course"?

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