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Law 14.182/2021 that allows the privatization of Eletrobras was sanctioned by the President of the Republic, Jair Bolsonaro, this Tuesday (13th). The measure, already published in the Official Gazette of the Union, aims to expand the company's investment capacity in electricity generation and transmission in the country.
The company's privatization model will be through capitalization. It means that the Government no longer controls one hundred percent of the capital and shares Eletrobras' responsibility with private initiative shareholders. The idea is that the capitalization will strengthen the institution, making it the largest Brazilian corporation in the electricity sector.
According to the Ministry of Mines and Energy, the capitalization of Eletrobras will occur through the issuance of new shares, which should be carried out by the first two months of 2022. In other words, the Government will not sell or auction the company's current assets. What the company will do is issue new shares to capitalize, generating a pulverization of Eletrobras shares among several investors.
Now, the next step is to complete the company's valuation studies and define the value and quantity of shares to be offered to the private sector. These studies are being coordinated by the National Bank for Economic and Social Development (BNDES) and must be approved by the Investment Partnership Program Council (CPPI) and the Federal Court of Accounts (TCU).
“Today, we take off Eletrobras' moorings. This robust and specialized company is made up of highly qualified and committed employees to act with the necessary agility in a business environment undergoing profound technological and behavioral changes. Eletrobras will be a world-class Brazilian corporation with pulverized capital focused on energy generation, commercialization and transmission, becoming one of the five largest renewable generation companies in the world”, said the Minister of Mines and Energy, Bento Albuquerque.
Improvements for the population
The Federal Government estimates that the capitalization will provide the entrance of new resources for the Union. The measure foresees the development of fundamental projects for the whole country. Are they:
- The creation of an attractive environment for investors, increasing competitiveness in the sector and reducing prices for consumers. According to the Ministry of Mines and Energy, the estimated tariff reduction for captive consumers will be 5-7%;
- Revitalization of water resources in the São Francisco and Parnaíba river basins: R$ 3.5 billion in 10 years;
- Structural reduction of energy generation costs in the Legal Amazon and improvement in the navigability of the Madeira River and the Tocantins River: R$ 2.95 billion in 10 years;
- Revitalization of the water resources of the hydrographic basins, in the area of ??influence of the reservoirs of the Furnas hydroelectric plants: R$ 2.3 billion in 10 years;
- The law also provides, according to the Ministry of Mines and Energy, for the end of the quota system. As a result, energy can be freely traded on the market, and the hydrological risk, currently paid by the consumer, becomes the responsibility of the electricity generator.


Mr. Alessandro Jacob speaking about Brazilian Law on "International Bar Association" conference

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