www.provedor.nuca.ie.ufrj.br/english
Energy Bulletin
issue 80 - Jul 02nd to Jul 06th, 2001



01. Privatization
02. Investment
03. Financing
04. Contract and Purchasing
05. Merger and Acquisition
06. Regulation
07. Electric System
08. Moreover




 

1. Privatization


The president Fernando Henrique Cardoso has announced that his government has decided "to insist on the present electric industry privatization model" and affirmed that private and public investments will ensure energy supply in 2003 even if the level of rains reach only 66% of the present level. (06.07.2001)

The Minister of Mines and Energy, José Jorge, has said that the electric industries' privatization will continue, including Furnas. It is not clear yet when Furnas will be privatized. (05.07.2001)

The government of the State of Paraná will open Copel's data room on 16.07.2001 and publish the company's privatization public notice by the end of August. The State wants to hold the company's auction during the second week of October, regardless of the country's energy problems. (02.07.2001)

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2. Investment


On 06.07.2001, the government will once again try to reach an agreement with the States to exempt the purchase of equipment for energy plants of the ICMS tax. (05.07.2001)

Two companies of Rio Grande do Sul: Camil, in Itaqui, and Urbano, in São Gabriel, already operate with energy generated by plants run by rice husks. Also, CGDe, along with Koblitz and Companhia Estadual de Energia Elétrica (CEEE) are investing in using biomass for generation energy. The consortium plans to invest about R$ 120 mi to build 10 thermoelectric plants in Rio Grande do Sul. (05.07.2001)

Bardella Indústrias Mecânicas is looking for a partner to produce thermoelectric plants equipment in the country. (05.07.2001)

Comgás is celebrating a 40% sale increase in the first half of 2001 in relation to last year's. Today, daily sales are about 7 millions m3. In order to supply new clients, the company is investing R$ 256 mi in the expansion of gas ducts networks. (05.07.2001)

The IMF has indicated is not recommendable for electric energy government owned companies to resume making investments since it would cause a negative impact in the country's primary superavit goal. (05.07.2001)

The president Fernando Henrique Cardoso affirmed on 04.07.2001 that the government will invest in the generation of a thousand MW generated by aeolian projects in the Northeast, specially in Ceará. The bill may reach US$ 1 bi, since each MW demandUS$ 1 mi. (05.07.2001)

The French group SIIF Energies do Brasil, according to its president Henri Baguenier, is willing to invest US$ 500 mi to generate 500MW of aeolian energy in Ceará. (05.07.2001)

The president Fernando Henrique Cardoso has announced the federal government will invest heavily in the generation of aeolian energy. (04.07.2001)

On 03.07.2001, the works for the construction of Campos Novos hydroelectric power plant began. The enterprise should be read by March 2006, take R$ 1.2 bi and be able to generate 880 MW. (03.07.2001)

The Northern region of Brazil will be the next target of Companhia Vale do Rio Doce (CVRD) for energy generation investments. The dispute for the construction concession of hydroelectric plants such as Tocantis-Xingú (TO), Serra Quebrada (TO), Santa Isabel (TO), Estreito (TO) and Belo Monte (PA) will stress the company's new steps in Aneel's auctions. (03.07.2001)

The Companhia de Força e Luz Cataguazes-Leopoldina (CFLCL) will inaugurate in September, 2001, the first phase of the thermoelectric plant that will be built in Juiz de Fora, MG. In total, R$ 165 mi will be invested to generate 103 MW by the consortium formed by Cat Leo Energia and the US company Alliant Energy. (03.07.2001)

According to the Ministry of Industry of Canada, with 350 energy companies, the Brazil is the third most desirable place to invest now, after China and India. (03.07.2001)

SBB International and Powerbase are 2 examples of Canadian interest in the Brazilian energy sector. The first one began to export transmission towers to Cemig in 2000 and SBB is now negotiation with Furnas and Copel. Powerbase is looking for a Brazilian partner to manufacture diesel generators or turbines. (03.07.2001)

The Program for Contracting Electric Energy from Small Hydroelectric Power Plants
(PCH-Com), launched by Eletrobrás in March 2001 may not happen. Even though the company warranties it will buy the whole generation, never mind the 80% financing offered by BNDES, investors are concerned with the R$ 67 per MWh fixed by Eletrobras. (03.07.2001)

The minister Pedro Parente said it is not possible yet to calculate the energy readjustment rates due to the new generation costs, specially alternative generation projects. He also said the government will have a 30% participation in the investments of the emergency program that the government will announce on 05.07.2001. (03.07.2001)

In the next 5 years, Petrobras will make available above R$ 1 bi, besides the resources already contemplated by the budget, to invest in energy offer expansion programs. (02.07.2001)

Petrobras will wait for the result of the open contest for the expansion of Gasbol's transportation capacity to decide whether it will further increase its investments in Bolivia. Depending on the auction's results, the company will have to increase its investments in at least US$ 100 mi in Bolivia. (02.07.2001)

The Brazilian biscuits factory Piraquê will invest US$ 4 mi in a generation project. (02.07.2001)

Petrobras will be transformed into a energy company until 2003. According to the company, it will search other types of energy, such thermoelectric and gas to decrease the oil dependency. The company will invest R$ 300 mi by 2005 in research . (29.06.2001)

EDP may finance 60% of the project of the Peixe hydroelectric plant project. The total expected investment is US$ 434 mi. The Portuguese company owns 95% of the consortium formed with Grupo Rede (that owns the remaining 5%). (29.06.2001)

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3. Financing


El Paso Energy will negotiate partnerships with the main pension funds of the country to develop new gas thermoelectric projects, if the Bolivia-Brazil gas duct (Gasbol) is expanded to 25 millions m3 daily in the next months. El Paso will then ensure initially 3 millions m3 for its 3 plants in Brazil: Araucária (PR), Macaé Merchant (RJ) and Paracambi (RJ) and may expand the number of projects for plants or even commercialize the product for other parties. (06.07.2001)

Light will continue to take the market's opportunities to do the hedging of its dollar debt. The goal is a hedging for US$ 250 mi due in 2002. (06.07.2001)

The Central Bank has surprised the market by announcing on 06.07.2001 that it will use US$ 6 bi by the end of 2001 to stop the dollar rise. 2 weeks after the Central Bank's announcement of heavy interventions, the dollar continued to rise. Experts believe the country will have to circulate US$ 50 bi in 2002 in a environment lacking dollars. (06.07.2001)

On 05.07.2001, Eleazar de Carvalho, BNDES director, denied that the sale of 8% of Petrobras' preferential capital and 3.5% of its total capital that belongs to the National Treasure are being done in a hurry to meet the Central Bank's demand for dollars. (06.07.2001)

The market of debt titles closed 05.07.2001 with a sharp drop and the C-Bond broke its support level. Country risk premiums also rose significantly, indicating the discomfort towards Argentina. (06.07.2001)

Unable to postpone its US$ 61.2 mi debt in euro commercial papers due on June 14th, Celesc begins to work towards selling part of its actives to pay the debt. The company will auction the 19.3% it owns of Companhia Catarinense de Águas e Saneamento (Casan). (05.07.2001)

The commercial dollar was once again dealt above R$ 2.40 for sale two weeks after the Central Bank announced it would intervene in the market to keep the exchange rate from rising. On 05.07.2001, the dollar increased by 2,85% and reached R$ 2.422, the highest value since June 21st. (05.07.2001)

The cautious stance of the Central Bank in relation to the dollar increase has generated talks of the possibility the government is elaborating a package of anti-dollar measures to stop the real devaluation. (05.07.2001)

According to the Monetary Policy director of the Central Bank, Luiz Fernando Figueiredo, the bank will sell US$ 6 bi in the market from now to the end of 2001. The interventions may happen daily. (05.07.2001)

The energy crisis is opening a new perspective to property insurance companies covering operational risks. ACE expects a 20% increase of this portfolio in 2001 in comparison to last year, with premiums of about R$ 70 mi in Brazil. (05.07.2001)

The fuel price increase impact over inflation will be 0.38 point, and the inflation goal is now 5.8% for the year. (05.07.2001)

The Argentinean crisis is getting more dramatic and the time to solve it is running out. The country's risk rate has reached 1.094 points. (05.07.2001)

On 03.07.2001, the Central Bank once again intervened in the exchange rate by selling dollars, but wasn't able to stop the dollar increase, that closed at R$ 2.352, a 0.81% increase in relation to the previous day. (04.07.2001)

The emission of debentures grew by 88.7% in the first half of 2001 in relation to the same period in 2001. R$ 5.769 bi in debentures were issued in the first semester of 2001 in comparison with R$ 3.057 bi of the first semester of 2000. (04.07.2001)

After announcing the intention of making a US$ 250 mi loan, Eletropaulo Metropolitana has announced the emission of eurobonds with the goal of raising from US$ 200 mi to US$ 250 mi, due in 20 months. The titles would be due in March 2003 and promise a 10.38% to 10.63% interest. (04.07.2001)

The political complications of Argentina has influenced the exchange market. The banks' concern about the country's future is rising and it also impacts Brazil. The demand for hedge has increased agian and the dollar reached R$ 2.356. (04.07.2001)

According to Fitch agency, the hopes of recovery of Latin American companies is being undermined by 3 factors: the decrease of consumer's confidence, reduction of exportations and lack of liquidity in capital markets. (04.07.2001)

In the last agreement revision with FMI, the government will recalculate the value of the net public debt and the quarterly inflation goals of 12 months, based on the current exchange rate (about R$ 2.30) and the new inflation expectation for 2001, of 5.8%. With the real devaluation, the net debt that should be at R$ 612.5 bi in September, was already at R$ 618.5 bi in May. (04.07.2001)

In the first half of 2001, Brazil and Argentina were the only emerging countries whose bonds devaluated. (03.07.2001)

On 02.07.2001, the Argentinean risk index measured by EMBI+, of JP Morgan reached 1.062 points. (03.07.2001)

After floating and non-embarked thermoelectric plants of the aeolian plants, now it's time for co-generation investments. Energy Works do Brasil, an independent energy producer of Iberdrola plans to invest US$ 50 mi in eight projects to generate 50MWh in Ceará. (03.07.2001)

Pension funds have proposed to the minister Pedro Parente the use of the money being kept aside for income tax payment in investments for energy generation. Pension funds and the government have been fighting for years to define if they should or not pay income tax. (03.07.2001)

Standard & Poor's kept Brazil's risk rating in BB- for long term credit in foreign currency and BB+ for long term in local currency and B for short term credits. S&P's main Brazil analyzer, Lisa Schineller, has listed some positive factors like "a consistent macroeconomic strategy", including floating exchange regime and inflation goals. (02.07.2001)

During the first week of May, the tax used in one day deals for large companies (Hot Money) was between 2.06% and 4.63% per month. Small and medium companies closed deals between 2.15% and 5.24%. In relation to duplicate discount for 31 deals for large companies, the tax fluctuated between 1.79% and 2.60% per month. For small and medium companies the fluctuation was from 2.60% to 3.35%. In this week, large companies obtained taxes between 24.20% and 60.10% per year of prefixed flow capital, while small and medium paid from companies 37.19% to 67.65%. (02.07.2001)

On 30.06.2001, the Central Bank said the Brazilian government has designated Daiwa Securities and Nomura Securities to lead the launching of Brazilian foreign debt titles in the Japanese market. The raising should correspond to 180 bi ienes - orUS$ 1.5 bi - and should be concluded within a month. (02.07.2001)

With a BNDES financing of R$ 57.2 mi for co-generation expansion projects the Cerradinho, of Catanduva, and the Companhia Energética Santa Elisa, of Sertãozinho, will begin to offer a 46.4 MW surplus per year from May 2002 on. (02.07.2001)

The government will sell 32% of ordinary shares of Companhia Vale do Rio Doce (CVRD) perhaps during the last quarter of 2001. Its value today is about US$ 2 bi. (02.07.2001)

The Brazilian raising of foreign bonds and loans in the first semester of 2001 have confirmed the record for first semesters, but were a little under the expectations. The total was almost US$ 17.5 bi, a 57% growth in relation to the first semester of 2000. (02.07.2001)

BNDES will receive a US$ 1.5 bi credit line from BID in order to finance energy projects of small companies. The negotiation will be concluded by the end of 2001 and will be the largest repass ever from BID to the BNDES. (01.07.2001)

There are about 50 energy generation, modernization and expansion projects under analysis at BNDES. Most of them are hydroelectric plants projects. Only 6 of them are thermoelectric projects plants included in the government's priority program. (01.07.2001)

The dollar increase has taken the Brazilian public debts to the highest levels in two years, according to the Central Bank. In May, it was at R$ 618.51 bi, or 51.9% of the GNP. (30.06.2001)

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4. Contract and Purchasing


Companhia Siderúrgica de Tubarão (CST) is already reviewing the contract with Escelsa that ends on 31.12.2001. Currently, the company produces 192 MW and sells 29 MW to Escelsa. (06.07.2001)

The government will create a emergency commercialization company in order to ensure a smooth transition from the present energy deficit situation to a balanced scenario that should happen in 2003. The program will allow the purchase of 4 thousand MW in average so to allow generation and offer increases of any source and at short time. (06.07.2001)

CGEC is facilitating the offer of aeolian energy in order to multiply its offer by 2000% by the end of 2003. Eletrobrás will ensure the purchase for at least 15 years and will pay from 10 to 20% more for the plants that begin operating by December, 2002. (06.07.2001)

Bandeirante Energia, distribution company of most of the countryside of SP, has already intermediated the commercialization of 30 thousand MWh through bilateral contracts between its clients. (05.07.2001)

On 04.07.2001, the MME signed a contract with Enro, Petrobras and Furnas to advance the production of 225 MW from October to the second week of July, 2001. This will represent a 0.8 point gain in the reservoir levels in the next 6 months. (05.07.2001)

In 2002, Comgás will begin supplying gas the two major co-generation projects of its concession areas: 3 Ambev's beer factories that will consume 10 millions of m3 monthly of generating 35 MW, and the plant Rhodia in Paulínia, able to generate 100 MW - that will use 30 millions of m3 monthly. (05.07.2001)

Large industrial consumers are preferring to make bilateral deals instead of using the auctions promoted by MAE and Bovespa. Conservative estimates believe these deals are 3 times higher than Bovespa's auctions. (04.07.2001)

A new turbulence has fell on Asmae during the first week of July, 2001. A group of 3 agents were elected to take the institution's reigns. One of their first measures was to stop the process of MAE's contracts financial accounting. (04.07.2001)

MAE's energy surplus auctions at Bovespa have started July with no deals. On 02.07.2001, there were 3 sale offers adding up to 1.880 MWh with prices from R$ 499.00 to R$ 600.00. For purchase, a total of 150 MWh for R$ 150.00. (03.07.2001)

CPFL has decided to innovate and is allowing its corporation clients to offer at its site their energy surplus. In the last 3 days, the site sold R$ 300 thousand in energy in this way. (03.07.2001)

The energy stock market coordinated by Cemig and Fiemg have dealt about 20 thousand
MWh during the last week of June, when it began to function. (03.07.2001)

During its first week, the energy auctions held at Bovespa by Asmae have confirmed the expectations and had very small volume of deals. One thing is for sure: sale and purchase offer prices are far from consensus. (02.07.2001)

In Light's concession area by 29.06.2001 no company had shown interest in the energy auctions. Only 5 of the 97 high tension clients have requested the Certification of Goal Reduction Right's Use. (02.07.2001)

Duke Energy has postponed the beginning of the virtual energy auction for 02.07.2001. The reason is that the company does not want it to be mistaken by the purchase and sale contracts dealt at Bovespa for MAE. (02.07.2001)

The Angra 2 nuclear power plant is Furnas' new darling. The unity was able to revert the R$ 600 mi debt to MAE and has begun to produce dividends to Eletrobrás. The volume of energy sold in the market reaches R$ 900 mi. (02.07.2001)

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5. Merger and Acquisition


The last phase of the complex restructuring of Light and Eletropaulo, separating the partners AES and EDF, will be officially presented on 06.07.2001. Besides Lightgas, controller of Eletropaulo, the US company AES will take on the whole telecommunications areas of both companies. (06.07.2001)

The US company PSEG purchased more 49% of Endeersa (distribution company of
Entre Rios, Argentina) increasing its participation to 90%. The company's employees own the remaining 10%. (03.07.2001)

CPFL has sent a proposal to Serra da Mesa plant and 521 Participações S.A aiming to buy 518.887.616 nominative shares of Rio Grande Energia S/A. (03.07.2001)

Celesc will have 20% participation of the Foz do Chapecó hydroelectric plant. The company's inclusion in the society that will be created for the project is already agreed by the members of the auction winning consortium: Companhia Vale do Rio Doce, CEEE and Serra da Mesa Energia S/A. (02.07.2001)

Celesc has ended negotiations with the group VBC, formed by Votorantin, Bradesco and Camargo Corrêa, and will have a 10% participation of the Barra Grande plant, that will be built by the Grupo de Empresas Associadas Barra Grande (VBC, Alcoa Alumínio S/A, Valesul Alumínio and Departamento Municipal de Eletricidade). (02.07.2001)

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6. Regulation


On 05.07.2001, CGE published the resolution # 23 giving 30 days for the thermoelectric plants to present their conditions to start functioning by the end of 2003. Those companies that do not present the documents will be excluded from the PPT and will not have the warranty of gas to run their turbines. (06.07.2001)

MAE's agents will request more time to discuss the rules of its relations within the spot market and alleviate Aneel's decisions. According to the official schedule, all current issues should be resolved by 13.07.2001, when a MAE extraordinary general meeting will happen to endorse Comae's members, and to approve MAE's organizational structure and the adjustments to the Market Agreement. (06.07.2001)

Aneel has approved Coelba's restructuring model, creating 2 companies: Coelba Geração (generation) and Coelba Transmissão (transmission). In spite of this, Aneel has filed a administrative lawsuit against the company for not meeting one of the contract's clauses. (06.07.2001)

Pedro Paulo Schmidt, director of AES Sul, has said that 2 Aneel decisions, under Comae, have generated economic and financial impact on companies. One of them is about the system service duties (about R$ 400 mi), that Aneel determined to be divided between the South and Southeast distribution companies. The other decision is related to the addition production of Itaipu. (06.07.2001)

CGEC has released notices reviewing the consumption goal of automobile industries of the industrial complexes of General Motors (SP), Peugeot Citroen (RJ) and Honda (SP). (06.07.2001)

Companies that have delivery commitments that may be delayed due to the rationing could rest.
There are legal fundaments allowing the revision of contracts. (06.07.2001)

The licensing of the first gas thermoelectric plant to start functioning in the country, AES' plant that has started to operate in November, 2000 in Uruguaiana (RS), has taken almost 3 years to be granted and confronted Fepam and Ibama about the use of subterranean water. (05.07.2001)

On 04.07.2001, CGEC released the names of the sectors that will not have their supply cut even if they do not meet their rationing goals. They are the same that would be totally spared by the original rationing plan. (05.07.2001)

On 04.07.2001, CGEC has decided to equal sectors of industry, commerce, rural consumer and urban households for energy supply cuts in case of they don't meet their goals. (05.07.2001)

The rules for the industrial, services and commercial sectors were soften by CGEC. They now will receive a warning before having their supply cut, instead of having it straight cut 48 hrs after receiving the first bill. (05.07.2001)

Aneel has approved the creation of new normative values (VNs) for the thermoelectric plants that use gas aiming to limit the full repass of costs to consumers. The new values are only good for the plants of the government's thermoelectric priority program (PPT). (04.07.2001)

Aneel has authorized a 11.65% energy transmission readjustment rate from July 1st on. The last readjustment was 13 months ago, for this reason the IGP-M was taken into consideration. The rates paid by distribution companies will go from R$ 3.235.40 to R$ 3.612.19 per MW. (04.07.2001)

The Department of Environmental Impact Analysis (Daia) of São Paulo is in a hurry to analyze the 17 projects it has right now. (04.07.2001)

On 04.07.2001, CGEC will release the resolution defining the energy cuts of those who do not meet the rationing goals. (04.07.2001)

The government has decided the weekly holidays will be necessary only if the level of rains is lesser that the estimated by ONS. (04.07.2001)

The judge Lourival Gonçalves de Oliveira of Minas Gerais has granted to Minasgás Distribuidora de Gás Combustível the right of not meeting the rationing goal during 150 days and not having to buy energy at different prices of the regular rates. (04.07.2001)

ANP has found a solution for Petrobras to get enough gas to feed its plants without violating the norm that limits the company's participation in the expansion of existing gas ducts, including Gasbol. Petrobras will need 40 million of m3 daily for its plants and can't expand the gas ducts alone. (04.07.2001)

CGEC is not yet considering advancing the summer savings time, although the idea may happen since it may save about 1% in the Southeast, South and Center-West regions. (03.07.2001)

On 10.07.2001, Aneel will hold a public hearing to establish Escelsa energy rate readjustments from 08.08.2001 on. The deadline for expositors is 06.07.2001. (03.07.2001)

Since the Provisory Measure # 2.512 was declared constitutional by the Supreme Court, it is more difficult, but not impossible, to file lawsuits against it. (03.07.2001)

OCDE evaluates that Brazil has to improve the electric energy industry's regulating scenario in order to attract private investments for the country. (03.07.2001)

The government does not plan to revise the 15% reduction goal until 30.07.2001, when the
CGEC and the State governments will reevaluate the quotas. (03.07.2001)

The environmental license for the installation of diesel generators up to 10 MW for industrial ends and only during the rationing period may be granted within 72 hrs by Companhia de Tecnologia de Saneamento Ambiental (Cetesb). (03.07.2001)

Aneel has granted a 16.61% rate readjustment for Eletropaulo and 13.51% for Companhia de Energia Elétrica do Tocantins (Celtins) for a year from 04.07.2001 on. (03.07.2001)

On 01.07.2001 or 02.07.2001, the governor or Pará, Almir Gabriel, should sign a decree granting exemption of ICMS taxes to all importation made by energy generation groups as long as the operation is done through Belém's harbor. (02.07.2001)

During the first week of July, CGEC should end the plan establishing the criteria for energy cuts that will be adopted if the rationing fails. (02.07.2001)

CGCE will change the criteria used to calculate the energy consumption reduction and it will be easier to meet the 20% reduction goal. The present goal was calculated based on the consumption of 2000, which was lower than today's, for this reason today's 20% represent in fact 25%. (02.07.2001)

The president of the Supreme Court (STF), minister Marco Aurélio de Mello, has stated the government gave superpowers to CGEC, which would be not constitutional. This aspect is not being questioned by the Court. (30.06.2001)

In order to encourage the construction of thermoelectric plants, the government has proposed to the Congress the tax exemption to natural gas and coal used for energy production. The Finances minister, Pedro Malan, has encouraged the States to exempt the natural gas productive chain from the ICMS tax. (30.06.2001)

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7. Electric System


Once its 35% rationing goal met, the city of Rio de Janeiro will begin to reevaluate the city's rationing strategy in order to turn off sub-used areas and restore the light to used ones. (05.07.2001)

Electric energy rates will increase from January 2002 on, when the transportable thermoelectric plants will begin to operate in an emergency mode. (06.07.2001)

With the addition of 1.050 MW of aeolian energy in the next 2 years, as announced on 05.07.2001, the small hydroelectric plants (PCHs) sector promises to strengthens its demands for the some kind of privileges. (06.07.2001)

A committee organized by the government has already mapped all generation equipment available in other countries. In July 2001 there will be possible to call the businessmen interested in the deals, through public announcements. (05.07.2001)

The energy savings in the 4 first days of July was 22.1% in the Southeast and Center-West regions and 24.1% in the Northeast. (06.07.2001)

The North region is far from meeting its 15% reduction goal. In the first 4 days of volunteer rationing the saving was only 8.2%. The region's reduction goal may have to reach 20%.
(06.07.2001)

The purchase of energy from embarked plants, of about 4 thousand MW, will cause differentiated readjustments for different kinds of consumers, which will mean a higher rate for the industry. According to Pedro Parente, the rates will be applied in a form inversely proportional to the subsidies received. (06.07.2001)

According to a research done by the newspaper Valor, only 22 of the PPT are now being analyzed by environmental agencies. Of the 49 PPT's projects, 14 have been approved and are being built. Most projects are not working faster due to the companies that have not submitted the complete paperwork yet. (05.07.2001)

The State of Rio Grande do Sul (RS) has reached a 6.18% saving in June and is working on expanding it in the next months. (05.07.2001)

A committee organized by the government has already mapped all generation equipment available in other countries. In July 2001 there will be possible to call the businessmen interested in the deals, through public announcements. (05.07.2001)

The report of 9 of the 13 energy distribution companies of São Paulo show that 11.4 millions of venues met or surpassed the 20% reduction goal in June 2001. (05.07.2001)

The president Fernando Henrique Cardoso announced on 05.07.2001 the emergency program to increase the country's electric energy offer, the Electric Energy Emergency Program, coordinated by the minister José Jorge. It counts with 21 hydroelectric plants and 15 thermoelectric ones included in the PPT. By the end of 2003, these new plants will generate 19.918.9 MW. (05.07.2001)

The Brazilian government is considering buying 500 MW from Peru, that may enter the country as soon as the transmission lines are built. (05.07.2001)

The first real step towards the construction of a thermoelectric plant in the State of Rio
Grande do Norte, the Termoaçu plant, was taken on 03.07.2001 with the donation of a 160 thousand m2. The plant should begin operations by October, 2003. (04.07.2001)

Norte Fluminense plant has advanced with Siemens-Westinghouse the delivery of 2 turbines in 6 months. (04.07.2001)

3 of the 4 main hydrographic basins that feed the Brazilian electric systems have registered a drop in its water storage levels in comparison with the week of June 25th to July 2nd. The Rio Grande basin, responsible for 31% of the Southeast sub-system, had a 22.3% last week and 22.1% this week. (04.07.2001)

CGEC is still considering buying energy from electro intensive companies in order to keep the reservoirs levels. (03.07.2001)

Cataguazes-Leopoldina already owns the project and the equipment for the installation of five new small plants in Minas Gerais that together will generate 100 MW. (03.07.2001)

CGEC' s member, Mauro Arce, has confirmed that soon the government will announce the energy supply emergency plan that will contemplate the addition of 4 thousand MW to the country's generation system, 1 thousand for the Northeast and the rest for the Southeast and Center-West. (03.07.2001)

Cemig will not be able to meet the government's determination of cut the energy of the consumers who do not reach their 20% goals. According to the company, 10% to 12% of the residential consumers will have to pay overrates. (03.07.2001)

On 30.06.2001, the deadline for the country's cities to reduce their energy consumption by 35% ended, but not all were able to do so. In Minas Gerais, Cemig was able to do so in all its 774 concession area's towns, or 90.7% of the State's cities. (03.07.2001)

The balance of the first 30 days of rationing confirmed 19%, for the Southeast and Center-West. Nevertheless, the last week of June reached 21.6%. (03.07.2001)

For CGEC's member, Mauro Arce, there is only a 10% that the country will suffer blackouts. (03.07.2001)

In June, the State of Catarina saved 6.9% of energy in relation to June of 2000, according to Celesc. (03.07.2001)

Brasilia reduced its energy consumption by 24.70% in comparison to the average of May, June and July, 2000. Rio de Janeiro saved more than 20%, 21.9% being in Light's area.
Eletropaulo has registered a 25.6% drop of the energy consumption in June, which was within the company's expectations. (03.07.2001)

The consumption of energy in the whole country dropped by 15% in relation to May and June of last year. The highest savings happened in the Northeast (19.5%), Southeast/Center-West (18.8%) and South/Mato Grosso do Sul (2.4%). (02.07.2001)

During the first week of July the government will announce a set of measures to increase energy generation: 26 thermoelectric and 21 hydroelectric plants will be ready by 2003, adding up to 16 thousand MW. (02.07.2001)

On 01.07.2001, the State of Pará and some regions of the States of Tocantins e Maranhão, included in the North Region Interconnected System, will start to save 15% of energy consumption in relation to the average consumption of May, June and July of 2000. (02.07.2001)

CGEC's coordinator, minister Pedro Parente, has considered the report of 29.06.2001 positive. He said that if the reservoir levels grow as expected during the dry season there will be no need of blackouts - at least until August. (02.07.2001)

The North and Southeast/ Center-West have already been sending about 1 thousand MW and 300 MW, respectively, to the Northeast, but the transmission system is at its limit. Nevertheless, the president of ONS, Mário Santos, does not recommend the use of holidays in the region. (02.07.2001)

Eletronuclear has advanced the dates for changing the fuel of Angra 2 power plant from May 2002 to February in order to free 100 MW more energy to the Brazilian interconnected system during the dry season. (02.07.2001)

The energy rationing may become a great business for distribution companies. They may gain more money not selling energy. The annex 5 of the contracts between generation and distribution companies says the generation companies have to pay to the distribution ones part of the energy they won't deliver due to the rationing. But the generation companies are questioning the validity of the annex 5, and a long court fight may happen on this. Officially, Brasilia says it will honor the contract. The bill may reach R$ 5.5 bi if the rationing will last over 7 months. Among the distribution companies, there is a growing movement towards rate increases. (01.07.2001)

Pimenta Bueno will be the first city of Rondonia to build a power plant from wood bio mass which have very little environmental impact. (01.07.2001)

The Northeast region was the furthest from the 35% public illumination reduction goal. Bahia reached the lowest, 15%. Pernambuco, 27%, and Ceará and Paraíba, 33%. Of the country's 16 States included in the rationing areas, only 16 of them, plus Brasilia, were able to meet the 35% goal. Aneel and the CGEC will meet to analyze info and define penalties. (30.06.2001)

According to experts, the announced 5% reduction of electric tension will not lower the residential consumption, will oblige large consumers to use their own generators and will increase the risk of fires. (29.06.2001)

Sebrae will launch the Energetic Intelligence Sebrae to reduce the consumption of micro and small companies (MPE) in up to 30%. The program will cost R$ 21 mi and plan to reach not only the 4.5 millions of registered MPE, but the whole existing 13 millions. (29.06.2001)

Índice



 

8. Moreover


Owner of a market formed by 1.564 million consumers and with a gross revenue of about R$ 1.050 bi in 2000, Celg has R$ 529.617 mi to receive from the State of Tocantins (R$ 140 mi) and city halls (about R$ 98.910 mi). (06.07.2001)

Trying to defend themselves against the complaints they receive, Endesa and Iberdrola are announcing improvements in their services, but stressing many of their problems is due to bureaucratic difficulties imposed by city halls. (06.07.2001)

From 06.07.2001 on, AmBev start operating 10 mobile generators in 9 factories - Jundiaí, Jacareí, (SP), Agudos (RJ), Camaçari (BA), Juatuba (MG), Estância (SE), and Cuiabá (MT). (06.07.2001)

At least 2 industrial sectors do not endorse CNI's research stating that 76% of the companies will only meet their rationing goal if they dismiss employees: shoe and textile. (06.07.2001)

In June 2001, the Companhia Paulista de Força e Luz (CPFL) registered a R$ 70 mi revenue drop due to the 20% reduction of energy distribution in its concession area. This means 23% of the company's total revenues. (06.07.2001)

The government is optimist with the new consumption habits caused by the rationing that may reduce the demand of 2002 and 2003. (06.07.2001)

The companies Albras, Alunorte, Camargo Corrêa Metais e Vale do Rio Doce, that buy energy from Eletronorte, were able to meet their 15% reduction goal in the first day of rationing in the North region. (05.07.2001)

A research of Fundação Getúlio Vargas (FGV) indicates the services sector has already began to suffer the impact of energy rationing and expects a 33% sale reduction in the Southeast during June and July 2001. (05.07.2001)

The group Votorantim has reduced its production by 10% in order to meet its energy reduction goal. (05.07.2001)

The shoe industries of Franca (SP) do not intend to fire employees yet. (05.07.2001)

Inpe has created a Internet site (www.inpe.br) with info about the energy crisis for consumers, energy concessionaires and companies seeking to elaborate rationing plans. (05.07.2001)

According to the energy secretary of the MME, Afonso Henriques, the group of economists of the IMF were introduced to the first rationing results, the mechanisms of energy auctions and the program for energy offer increase. (05.07.2001)

Usiminas has met the 20% rationing goal in June 2001 and still closed the semester with a record volume of sales for the Brazilian market. (04.07.2001)

Besides Volkswagen, Fiat and Scania, Honda and Toyota will also have collective vacations during 10 days in July. (04.07.2001)

In order not to reduce production and avoid unemployment, GE-Celma, a General Eletric company, is using energy transferred from other GE operations in Brazil. (04.07.2001)

A CNI research with 918 industries of the country indicate that 63.1% of them will have to fire employees in order to adjust to the rationing. (04.07.2001)

According to Fiesp, for more than half of the industries of the State of São Paulo, energy costs represent less than 3% of production total costs. Even though, 60% of the companies should look for alternative energy generation forms. (04.07.2001)

The production of São Paulo industries registered in May 2001 a 1.9% growth in relation to May 2000. Nevertheless, comparing April 2001 and May 2000, the growth was 6.4%.(04.07.2001)

Employees of CTEEP,EPTE and Emae began a 24 hr strike at midnight of 03.07.2001. (03.07.2001)

The Brazilian energy crisis will affect the economy's growth in 2001, according to a OCDE report, of Fundação Getúlio Vargas. (03.07.2001)

Coelba's estimates for 2001 is to loss about R$ 140 mi to R$ 150 mi of operational margins. In Brasilia, CEB is losing money. (03.07.2001)

The Rio de Janeiro State secretary of Planning, Development and Tourism, Tito Ryff, said that in spite of the rationing impact the State's economy will be able to expand in the next years due to the maturation of the R$ 53 bi already invested and the State's ranking of investment intentions according to Simonsen & Associados. (02.07.2001)

The Brazilian Institute of Consumer Defense (Idec) has released an official note lamenting the Supreme Court's decision of considering the rationing measures constitutional. Idec's coordinator, Marilena Lazzarini, said the institution is now studying legal means to protect the citizens. (02.07.2001)

The Brazilian Association of Electric and Electronic Industries (Abinee) will revise the sector's growth perspectives for this year. In January the expectation was a 19% growth rate, but it should be lower now. (02.07.2001)

Telemar Minas had to use the help of generation groups to reach its energy reduction goal. The company had to use 74 of its 122 generation groups during 6 hours per day. (02.07.2001)

The Ministry of Science and Technology and Finep will try to find out whatever there is of new technologies in alternative energy production that may not yet being placed in the market. (01.07.2001)

The public rate increases will be responsible for half of the inflation expected by the government, which will be of 5.8% in 2001 (the double of the value that was estimated only 3 months ago). (30.06.2001)

The government of the State of Rio de Janeiro admits a cooling down of the State's economy due to the dollar increase and energy crisis, stressing that the process may worsen during the second semester. (29.06.2001)

Índice


http://www.agestado.com.br/ (SP); http://www.jc.com.br/ (PE); http://www.jc.com.br/ (PE); http://infoener.iee.usp.br/ (SP); http://www.jb.com.br/ (RJ); http://www.correioweb.com.br/ (DF); http://www.dm.com.br/ (GO); http://www.zh.com.br/ (RS); http://www.tribunadabahia.com.br/ (BA); http://www.jcam.com.br/ (AM); file:///C:/WINDOWS/TEMP/%20http://www.correiodabahia.com.br/r (BA); http://www.opovo.com.br/r (CE); http://www.dpnet.com.br/ (PE); http://www2.uol.com.br/JC/ (PE); http://www.opopular.com.br/ (GO); http://www.folhadoestado.com.br/ (MT); http://www.correiodopovo.com.br/(RS); http://www.gazeta-rs.com.br/jornal/materias.htm(RS); http://www.an.com.br/ (SC); http://www.diario.com.br/ (SC); http://www.iberdrola.com/; http://www.guiaenergia.com.br/; http://www.ft.com/; http://www.iberdrola.com/; http://www.enron.com/; http://www.einsight.com./http://www.guiaenergia.com.br/


Editor: Prof Nivalde J Castro - UFRJ

João Paulo Cuenca and Felipe Carvalhal - Economists

Eletrobrás-UFRJ Research Group

Contact: ifes@race.nuca.ie.ufrj.br

 


You can find the largest data base on the Brazilian Electric Sectors at
http://www.provedor.nuca.ie.ufrj.br/eletrobras/