Electricity and diesel prices became targets of offensive by Congress and government

The Jair Bolsonaro government (PL) and the congressional summit are preparing a new offensive to reduce adjustments to the electricity bill and fuel prices less than five months before the elections.

Articulators of the agreement estimate that the package of measures could lead to a reduction of approximately 20% in electricity bills and practically neutralize the readjustments planned for this year – some of them exceeding 20%.

The negotiations are intensified at a time when Bolsonaro’s disadvantage widens in the polls in relation to Luiz Inácio Lula da Silva (PT). A new Datafolha survey shows the former president with 54% of valid votes, enough for him to be victorious in the 1st round if the election were held today.

Parliamentarians allied to the government are committed to the articulations because they seek re-election to their respective positions this year and are concerned about the size of the increases in energy tariffs, an item that strains the pockets of especially low-income consumers.

Government pressures Aneel to anticipate resources that subsidize electricity bills

The list of proposals includes the ICMS (Tax on the Circulation of Goods and Services) collection on energy, recently approved in the House and which still needs to be voted on in the Senate. Alone, this measure should have a 6.6% reduction in tariffs, according to internal government estimates.

There are also initiatives that allow the injection of resources into the CDE (Energy Development Account), which finances subsidies and discounts on electricity bills.

On one front, the government and Congress pressure Aneel (National Electric Energy Agency) to include in the CDE budget a forecast of R$ 5 billion in revenues to be obtained with the capitalization of Eletrobras.

The amount may provide a 2.3% reduction in tariffs, but it was not foreseen by the regulatory agency due to the uncertainties surrounding the company’s privatization process — which still needed to be scrutinized by the TCU (Union Court of Auditors).

With the final approval of the model by the court of accounts, which includes the allocation of R$ 5 billion to the CDE later this year, there is an articulation behind the scenes so that the agency can immediately account for the resource. This would allow for an extraordinary tariff review for all consumers.

The MME (Ministry of Mines and Energy) sent a letter to Aneel on May 23 informing that the investment of R$ 5 billion in the CDE should be made by the end of July. In practice, according to government sources, the document serves for the regulatory agency to accelerate the procedures for including this amount in the budget and grant the discount on the tariff as soon as possible.

With an eye on articulation, Aneel extended for 15 days the tariffs currently practiced by Cemig, which serves 8.8 million consumer units in Minas Gerais. “We agreed to extend the tariff adjustment so that the R$ 5 billion that are guaranteed with the capitalization process [da Eletrobras] already bring tariff attenuation not only for consumers of Minas Gerais, but also of other units of the federation”, said the rapporteur of the process, Sandoval Feitosa, director of Aneel.

Return of credits to electricity consumers generates dispute with distributors

The government and Congress are also articulating the vote on a bill that returns consumers an invoice of R$ 60 billion in PIS/Cofins credits, constituted after the STF (Federal Supreme Court) determined the withdrawal of ICMS from the calculation basis. of the federal tax.

According to government estimates, the measure alone can generate an average reduction of 5.2% in tariffs.

as showed the Sheetthis benefit is currently disputed by distributors, who want to appropriate a portion of these tax credits.

The debate in this case stems from the judgment on the basis for calculating the PIS/Cofins in the STF (Supreme Federal Court). In 2017, the court ruled that over the years the tax collection was wrong and the Union had to reimburse companies in the tens of billions.

In the case of energy, however, the tax collection always fell on the electricity bill and was paid by the consumer. The project determines, based on this argument, the full destination of the refunded amounts for the reduction of the users’ electricity bill.

The expectation is also that the text will result in an immediate absorption of this benefit, in addition to the metrics adopted today by Aneel.

The measure, however, must face resistance from distributors, who not only want to keep a part of the funds, but may also face cash difficulties if all credits become a discount at once.

Government and Congress articulate to anticipate renewal of concessions

Although it faces obstacles to being voted on now and will only have an effect in the medium to long term, the government and Congress also articulate to include in the bill 414/2021, which deals with the new legal framework for the electricity sector, an authorization for the early renewal of concession contracts for a set of hydroelectric plants in the Union not operated by Eletrobras.

The renegotiation of these contracts would generate a new grant payment – ​​an amount transferred by the companies to the State in exchange for the right to exploit a certain public asset under the rules and prices practiced by the free market.

The injection of new resources would be used to offset the increases in the electricity bill. According to different government officials interviewed by the Sheetthe operation may result in an injection of up to R$ 10 billion in the CDE, with an average impact of a 5% reduction in tariffs.

In general, grant amounts are allocated to the National Treasury. In this case, however, the government would give up part of the resources to allow the payment of a portion to be made directly to the CDE. Within the government, there is talk of a division of 50% for the Treasury and 50% for the CDE.

The idea is considered viable by government officials, as the renewal of Eletrobras’ contracts in the post-privatization period already provides for the division of resources between the Treasury and the CDE. The model is pacified within the government and also in the control instances.

The proposal has already been discussed by the Ministry of Economy, by the new Minister of Mines and Energy, Adolfo Sachsida, and by members of the National Congress. However, this is a more medium-term measure: its processing would take place around 210 days after the text is sanctioned, which is still pending in the Chamber of Deputies.

The problem is that the Chamber is facing difficulties in voting on PL 414. A wing of deputies wants to include Brasduto, a fund to subsidize the expansion of a gas pipeline network to serve thermoelectric plants. The government does not agree with the inclusion of the initiative in the law, due to the billionaire cost, but deputies say they will obstruct the vote on the text if it is not included.

There are also negotiations to prohibit the collection of ICMS when tariff flags are activated, increasing the cost of energy.

Subsidy to truck drivers is proposed to offset higher fuel prices

On another front, the government also wants to attack the rise in fuel prices, which remains an obstacle to Bolsonaro’s electoral ambitions.

Therefore, the Ministry of Economy and the Chamber’s leadership are discussing the creation of a subsidy for truck drivers, which can occur through the delivery of a voucher to members of the category.

Another idea, defended by the new nominee for the presidency of Petrobras, Caio Mario Paes de Andrade, is to give transparency and publicity to the calculation of the state-owned company that sets the price of fuels.

The proposal is to approve a project authored by the leader of the PT, Reginaldo Lopes (MG), which makes it mandatory to disclose the prices and costs of the state-owned company in the sale of oil derivatives. The opposition asked for a vote on the text as a counterpart to the approval of the project that set a ceiling for ICMS on fuel.

“It is mandatory to disclose the values ​​referring to the components that influence the prices of oil derivatives sold in the country by Petrobras”, says the Lopes project.

Although the assessment is that the impact on price should be small, giving transparency to the state-owned company’s account can serve as ammunition in Bolsonaro’s speeches. The bet of allies is that it will be clear that the company charges exaggerated prices and benefits from the account.

The issue of energy and fuel prices has mobilized Congress at the end of the voting window before the official start of campaigns.

Earlier this month, deputies even approved a faster procedure for a draft legislative decree that stopped the readjustment of almost 25% authorized by Aneel in the state of Ceará. The measure had the support of the president of the Chamber, Arthur Lira (PP-AL).

MEASURES FOR ENERGY AND FUELS

• Contribution of R$ 5 billion from the privatization of Eletrobras to the CDE (Energy Development Account): reduction of 2.3% in the electricity bill
• Project that provides full refund of PIS/Cofins credits to consumers: 5.2% reduction in electricity bills
• Project establishing a ceiling for charging ICMS on energy: 6.6% reduction in electricity bills
• Prohibition of charging ICMS on additional cost caused by energy tariff flags
• Valid for truck drivers and taxi drivers and apps
• More transparency from Petrobras in fuel pricing

Fábio Pupo collaborated.