Minister says to study the use of public resources to reduce electricity bill price

The Minister of Mines and Energy, Alexandre Silveira, studies the use of public resources to partially subsidize the energy bill of Brazilians.

In an interview with the newspaper The globethe minister suggested that this could be included in the electricity sector reform project, which should be presented to Congress over the next two months.

Silveira pointed out that the energy tariff is an essential input for industry, commerce and economy in the country, and that finding a budget solution to structurally reduce tariffs would be positive for Brazil.

However, he recognized tax difficulties by commenting on the need to balance subsidies with the public budget.

“It is impossible to put R $ 40 billion from CDE (energy development account) in the budget, but I believe there are items in the CDE that are not directly linked to the electricity sector and could be allocated to the budget,” he said.

Silveira stated that public resources could be used to relieve monthly energy invoices, which would also help in the recovery of government popularity.

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This year, it is estimated that consumers will bear R $ 36.5 billion in incentives for wind and solar plants, irrigation and reduction of tariffs for low-income families. This amount represents about 15% of the total paid in electricity bills.

The minister also mentioned the intention to expand the energy market.

“We want to open the Free Energy Market for more consumers, allowing them to buy directly from the generator, something that is only available for large consumers today,” he explained.