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President Michel Temer published this Thursday (28/12) a provisional measure that removes the prohibition on privatizing Eletrobras and its subsidiaries from a law that deals with the electricity sector.
CREA-RO
Michel Temer intends to privatize Eletrobras, a state-owned electricity company.
reproduction
The MP removes from Law 10,848/2004, which deals with energy commercialization, the article that excluded Eletrobras and its subsidiaries — (Furnas, Companhia Hidro Elétrica do São Francisco (Chesf), Eletronorte, Eletrosul and Companhia de Geração Térmica de Energia Electricity (CGTEE) — from the National Privatization Program.
Sanctioned by former president Luiz Inácio B2B Lead Lula da Silva, the law removed Eletrobras from the privatization program created by his predecessor, Fernando Henrique Cardoso.
This is the third provisional measure B2B Lead issued by Temer to pave the way for the sale of Eletrobras. In June 2016, the president published MP 735, approved by Congress and converted into Law 13,360/16, which facilitates the transfer of control of assets and the privatization of Eletrobras distributors.
In August this year, the government announced its intention to privatize the state-owned company, responsible for a third of the country's energy generation. According to the Ministry of Mines and Energy, Eletrobras' equity value is R$46.2 billion and the company's total assets total R$170.5 billion.
In a document sent to Eletrobras and President Michel Temer at the end of November, the ministry states that one of the possible models for the business is to make the sale through a capital increase operation, with the possibility of being added to a secondary offering of company shares belonging to the Union, which would have less than 50% of the company.
The sending of the project to Congress was announced for December 22nd, when the parliamentary recess officially began, but was postponed until next year. The privatization of Eletrobras has generated controversy and the government is facing resistance, including among allies in the National Congress, where two fronts have already been created against the sale of the company and its subsidiaries.

Isolated systems
The MP also deals with contracting energy for systems that are not interconnected to the National Interconnected System. Located in difficult-to-access regions, as is the case in some locations in the North, isolated systems are primarily supplied by thermal plants. According to the National System Operator (ONS), there are currently around 250 isolated locations in Brazil.
“Consumption in these locations is low and represents less than 1% of the country’s total load. The demand for energy in these regions is mainly supplied by diesel-fueled thermal plants.”
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