MP that would increase electricity bill may expire

The Senate presidency informed party leaders this Sunday (25) evening that there will be no semi-presential session on Monday (26). The president of the House, Senator Rodrigo Pacheco (PSD-MG), scheduled the next session for October 4th. The change cancels the appreciation of MP (provisional measure) 1,118, which was scheduled for this Monday. The MP expires on Tuesday (27).

Initially, 1,118 dealt with issues related to the fuel sector. It canceled the use of tax credits from social contributions from enterprises that buy fuel for their core business, such as aviation and bus companies. However, it received in the Chamber two amendments unrelated to this theme, popularly known as tortoises. Both change rules in the electricity sector.

A change creates a new subsidy, estimated at R$8 billion. If approved, it would raise the electricity bill of all Brazilians. The increase would vary from 1.45% to 5.67%, according to estimates by Abrace (Brazilian Association of Large Energy Consumers and Free Consumers).

The other amendment extends by two years the deadline for the entry into operation of clean energy projects entitled to subsidy. Initially, those who obtained the grant with a benefit would have four years to complete the project. The term was extended to six years in the proposal that reached the Senate. With this, about R$ 10 billion in costs for the consumer, which would expire, may be extended.

Congress has been proactive in creating subsidies, which favor businesses but hurt consumers. The changes made in the Chamber met the request of companies in the wind sector in the North and Northeast, which will have increased costs with changes in the charging rules for energy transmission.

Consumer protection organizations made numerous contacts in the Senate in the last 20 days to explain how the changes in the House would impact the electricity bill. The expectation was to remove the tortoises from the text or convince the House not to vote for the MP.