Minister defends use of public resources to reduce electricity bills

Alexandre Silveira is considering including the measure in a bill that aims to reform the national electricity sector
Minister defends use of public resources to reduce electricity bills
Photo: Freepik

the minister of Mines and Energy, Alexandre Silveira, stated that the Federal Government intends to send to the National Congress, within a period of up to 60 days, a bill to reformulate the guidelines of the national electricity sector.

In an interview with the newspaper The Globe, published this Friday (7), the minister highlighted that one of the pillars of the proposal will be the review of subsidies included in the electricity bill, with the aim of alleviating the cost of the tariff for consumers.

One of the possibilities under study is the partial withdrawal of benefits currently financed by the CDE (Energy Development ) – a fund that subsidizes, among other initiatives, the generation of solar and wind energy, in addition to incentives for irrigation and reduced rates for low-income consumers.

The idea would be to reallocate part of these resources to the Federal Budget in order to cover part of the cost of consumers' electricity bills.

According to the minister, the need for reform in the electricity sector is gaining strength in light of the decline in President Lula's (PT) popularity and the pressure of energy tariffs on inflation.

“The tariff is an essential input for the country’s industry, commerce and economic activity. If we can find a budgetary solution to structurally reduce the tariff, it will be a positive step forward,” said Silveira.

In 2025, Brazilian consumers are expected to pay approximately R$36,5 billion in incentives for the CDE. “I have to be realistic: it is impossible to transfer the R$40 billion from the CDE to the Budget. But there are items in the CDE that are not directly related to the electricity sector and that could be reallocated,” the minister highlighted.

According to Silveira, the proposal to reform the electricity sector will require alignment between different ministries and strategic coordination with the National Congress.

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Photo by Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

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