Senate cancels plenary session and MP with measures for the electricity sector expires

Senate President Rodrigo Pacheco (PSD-MG) canceled the deliberative session that was scheduled for this Monday (26), according to information from Agência Senado. The initiative leads to the expiry of Provisional Measure 1,118, which deals with tax credit on fuels and includes measures for the electricity sector.

Approved last month by the Chamber of Deputies, the MP would have to be voted on by Tuesday (27) so as not to lose its validity, but the president of the Senate called another deliberative session only for October 4, according to Agência Senado.

The original text of the MP provided for the use of tax credits by companies that buy fuel for their own use, but it ended up being approved by deputies with measures unrelated to its content, included at the last minute in the opinion of the rapporteur, deputy Danilo Forte (União- EC).

Among the proposals related to the electricity sector, were the extension of the term for the start-up of new renewable generation projects and the application of a “locational signal” in transmission tariffs, considering regional development issues.

The inclusion of “tortoises” in the electricity sector was criticized by associations such as Abrace, which represents large consumers of electricity and gas, and also by directors of the regulatory agency Aneel (National Electric Energy Agency).

The wind energy association ABEEólica, on the other hand, positioned itself in favor of the MP, arguing that it acts to expand renewable generation capacity in Brazil and that its impact on consumers would be neutral.

According to Agência Senado, Pacheco convened a new session for October 4, at 4 pm, to analyze MP 1,119/2022, which reopened the deadline for migration of federal public servants to the Complementary Pension Foundation for the Federal Public Servant ( Funpresp).