Electricity Bills Will Increase 6.78% in Brazil with New Energy Tariff

Modality will run from today to April; Minister admits that energy has crisis worsened

Brasília and Rio de Janeiro

The current Brazilian water crisis enters a new level this Wednesday (1st), when a new tariff becomes effective. It will remain in effect until April 2022 and will increase the electricity bill by 6.78%. The social tariff for low-income citizens will not be affected.

Called “Hydric Scarcity”, the banner advertised by the National Electric Energy Agency tries to combat the increase in costs resulting from the prolonged shortage of water, passing them on to the consumer, and avoiding rationing.

On TV, Minister Bento Albuquerque (Mines and Energy) admitted that the situation had worsened and asked for a reduction in consumption.

With the biggest water crisis in 91 years, the hydroelectric plants lost space in the offer to the more expensive thermal ones.

The import of energy and the use of thermal plants will increase expenses of R$ 13.2 billion from September to November. For economist André Braz, from FGV, the new tariff will raise consumer inflation by 0.3 percentage point to 0.9% this month. The higher costs indicate the need to reduce consumption by overtaxing it.

With one more, the government avoids readjusting the level 2 red banner by 50%, affecting fewer consumers and sparing the popularity of Jair Bolsonaro.

Translated by Kiratiana Freelon

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