Distributors assess that light bill relief actions are already close to limit

Electric energy distributors see limited space for immediate relief in tariffs, such as the massive use of tax credits, and argue that Congress and the federal government should focus on structural solutions to lower the electricity bill, especially at the peak of charges and taxes.

Members of Congress have asked the Minister of Mines and Energy, Adolfo Sachsida, for a solution to double-digit tariff adjustments.

But the president of the Brazilian Association of Electric Energy Distributors (Abradee), Marcos Madureira, says that interference in the tariff procedures of the National Electric Energy Agency (Aneel), preventing readjustments provided for in the contract, will not be on the table for discussion.

“The process that is in place is done correctly and adequately, there is nothing to discuss or prevent from being carried out,” he said.

At the beginning of the month, the Chamber of Deputies approved an urgent request for a draft legislative decree (PDL) that suspends tariff readjustments in Ceará and could be extended to other states – a measure considered unconstitutional and reckless by experts and agents in the sector.

The Speaker of the Chamber, Arthur Lira (PP-AL), said that Sachsida will try to “exit” the energy readjustments, and that an action in Parliament would depend on that to discuss or not the PLD in the plenary.

This Thursday, Lira said that he will put to a vote next Tuesday (24) a proposal that sets a ceiling of 17% for the rate of the Tax on the Circulation of Goods and Services (ICMS), a state tax, on fuel and electricity, as a way of seeking relief from prices.

The energy distribution sector asked for an agenda with the new minister to discuss issues in the sector, but there is still no meeting scheduled.

On ways to momentarily relieve the electricity bill, Madureira recalled that recent actions, such as the billionaire loans taken by the sector due to the pandemic and the water crisis, have already eased high tariffs in recent years and diluted a bill that still needs to be paid.

“It could be a financing, we already had two recent ones that were established at a time when there was a complicated situation. But it will raise the values ​​forward. It can be made (that decision) as long as one considers it,” she pointed out.

Regarding the approximately R$ 60 billion in tax credits that have already been used to minimize tariffs, Madureira explained that there is no way to take advantage of them in a massive way due to the procedures with the Federal Revenue.

“The flow of enabling these credits (in the Revenue) respects how much the distributor has to pay in taxes in the period. I cannot make the compensation above the amount I have to collect in taxes in a given month. This sets a limit on how much one can utilize,” she noted.

There could even be an advance of funds, but that decision would not be under the responsibility of the distributor, added Madureira.

According to Aneel, around R$13 billion in tax credits have already been returned to Brazilian energy consumers since 2020, which resulted in an average reduction of 5% in tariffs.

charges and taxes

The distributors’ representative recalled that tariff relief could come from Eletrobras’ capitalization offer, which could move BRL 25 billion and should allocate BRL 5 billion this year alone to reduce the Energy Development Account (CDE).

The main burden of the electricity sector, which provides funds for public policies and subsidies, the CDE is funded mainly by the electricity bill. This year, consumers will be responsible for BRL 30.2 billion of the CDE’s total bill, compared to BRL 19.6 billion in 2021.

Although the capitalization of Eletrobras had an important advance this week, with the green light from the Federal Audit Court (TCU), the resources for the CDE are not fully guaranteed, as the offer has not yet taken place.

Madureira says that, if there is this injection of revenue in the CDE, there would be an extraordinary review of the tariffs. “If we have a reduction in the CDE, we can have an extraordinary review to reduce the readjustment” in 2022, he explained.

Structural changes

The president of Abradee defended structural solutions to reduce energy costs in the country.

“Just last year, the CDE jumped from R$ 24 billion to R$ 32 billion. The growth of this burden is very high, you have to look inside, there are incentives that are no longer necessary”, he highlighted, mentioning the discount on the wire for renewable energy projects.

According to data from the association, charges and taxes account for 49% of the total electricity bill.

“There are some bills in Congress, one of establishing threshold values ​​for taxes, which are important”.