Issue 86 • February 2014

Aristotle and the controversy over the risk of rationing

OPINION

This issue analyzes (and challenges) simulations carried out recently by CMSE to support the government's claims that there is no risk of rationing, as well as the (unofficial) news that the March PMO would indicate a 5.7% risk of failure, lower than that estimated by PSR.

REGULATIONS

In this section, we detail all the expenses of the Treasury with contributions and subsidies to the electricity sector in 2013 (actual) and 2014 (estimated) and recall how we reached this situation.

JURIDICAL

This section analyzes preliminary injunctions and regulatory efficiency in the Brazilian electricity sector.

ENVIRONMENTAL

The subject of this section is outstanding and recurrent: illogicality in blaming dams for flood damage (in the pattern of the wolf and lamb fable), highlighting the current case of Madeira river.

SUPPLY

This section examines (and challenges) a criticism of CMSE (in the form of calculation of the 2014 structural supply capacity) to our assertion that the current supply difficulties are mainly due to structural factors; the severe drought and high demand at the beginning of the year would only be the ﬁlast strawﬂ that unbalanced an already weakened system.

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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.