Energy Surplus May Help Brazil Achieve Fiscal Target

05/05/2017 - 13h45

The Brazilian government is considering the possibility of auctioning off distributors' energy surpluses, enabling the government to achieve its fiscal target by turning a profit of up to R$ 27 billion (US$ 8.5 billion).

Today, distributors can only sell in a regulated market, with pre-determined prices. The sector is currently putting up with a lack of demand ever since the recession led to an oversupply.

The Government is considering the possibility of freeing up the market, setting aside the use of pre-determined prices and enabling sellers to conduct business with big industries.

The funds would help the government build up revenues in order to tackle a R$ 129 billion (US$ 40 billion) deficit and achieve its 2017 fiscal target.

Translated by THOMAS MATHEWSON

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