Issue 66 • June 2012

Why tariffs exploded... And how to reverse the situation


In this section we analyze the main factors that led to a significant increase of energy tariffs in recent years and we quantify the benefits to consumers of implementing three lines of action: (i) adjusting the remuneration of generation and transmission assets whose concessions expire from 2015; (ii) rationalization of charges; and (iii) changes in the taxation of PIS/COFINS.


The subjects analyzed in this issue are: (i) Review of the RAP of tendered transmission concessions; (ii) Public hearing dealing with the figure of the energy retail trader, and (iii) Proposal to amend the form of allocation to distribution utilities of charges RGR, TFSEE and P&D.


In this section we analyze the complicated situation of hydroelectric plants that were tendered preceding the requirement of the Prior Environmental License for participating in auctions. The individual evaluation of each of these projects illustrates the main obstacles encountered and presents important lessons about how to make hydroelectric projects environmentally feasible.


This section presents an overview of electricity supply in Brazil, through the structural balances of energy and peak developed by PSR. We analyze such factors as: delays in new power plants, transmission constraints and uncertainties in future generation.

Electronically published since 2006, the PSR Energy Report is a monthly newsletter developed by PSR, whose main objective is to present a comprehensive and current analysis of regulatory, legal issues, water resources and environment and supply of the electricity sector in Brazil.