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

OPINION

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.

REGULATIONS

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.

ENVIRONMENTAL

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.

SUPPLY

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.