Fri, Oct 31

Brazil: Will MP 1304 be interesting?

The new "energy law" is intended to generate a positive expectation because it addresses a list of important issues for the electricity sector. From tax incentives to the reduction of charges.

It will be interesting to discover, after its approval, if Brazil will improve its position in $/kWh in relation to the BRICS (Brazil, Russia, India, China and South Africa).

We have been lagging behind for many years! If, objectively, Brazil reduces its cost per kWh consumed, including all costs, great!

It will have been worthwhile because it will clean up subsidies, charges, incentives, crony projects, power theft and will stimulate a vigorous demand response program, and the list goes on!

To reiterate: Brazil has a list of some of the cheapest energy sources in the world, BUT the total cost paid is NOT. The central question is: will everything included in the MP 1304 package put us on a competitive level or not?

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