Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Indexes  >  Bolsa de valores de Sao Paulo  >  Ibovespa    IBOV   BRIBOVINDM18

IBOVESPA (IBOV)
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsAnalysisHeatmapComponents 
News SummaryAll newsNews of the components ofTweets

Brazil may allow Eletrobras to raise rates at dams impacted by 2012 rules - source

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/05/2017 | 04:30pm CET
A view of the headquarters of Brazil's power company Eletrobras in downtown Rio de Janeiro

Brazil may allow Centrais Elétricas Brasileiras to raise rates at dams affected by a 2012 sector overhaul and potentially sell them, a person close to the matter said on Wednesday, helping the state-run power utility cut debt and narrowing the government's budget deficit.

Eletrobras, as the company is known, was forced to charge lower rates at several dams in exchange for the early renewal of their operating licenses as part of a plan by former President Dilma Rousseff to try to force down electricity prices. Current rates are often barely enough to cover operating costs.

The person, who is close to Energy Minister Fernando Coelho Filho and requested anonymity because discussions are private, said the government may allow some hydroelectric power dams owned by Eletrobras to sidestep those regulations, which are under review.

That would increase the value of those plants, potentially paving the way for a sale, the person said, citing the Xingó and Tucuruí dams as possible beneficiaries of the measures.

"Based on current discussions, the proceeds will be shared between the government, consumers and the electricity sector," the person said.

A full sale of subsidiaries, including Chesf and Furnas, is not currently under discussion, the source added. Newspaper O Estado de S. Paulo reported on Wednesday that those units could potentially be privatised.

Those plans would integrate a wider free-market reform of the power industry, the latest in a series of regulatory revamps spearheaded by President Michel Temer as he seeks to improve the business climate and boost investment in Latin America's largest economy.

They could also bolster public accounts at a time when a slower-than-expected economic recovery weighs on tax collecting, fuelling doubts over the government's fiscal target and raising the prospect of tax increases.

Common shares in Eletrobras <ELET3.SA> jumped 4.2 percent to 13.18 reais in morning trading, the biggest gainer on Brazil's benchmark Bovespa stock index <.BVSP>.

Under Chief Executive Wilson Ferreira Jr., the state-owned company has sold assets and aggressively cut costs in a bid to soothe investor concerns over mounting debt.

(Reporting by Luciano Costa and Rodrigo Viga Gaier; Writing by Ana Mano and Bruno Federowski)

By Luciano Costa and Rodrigo Viga Gaier

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on IBOVESPA
10/30DJSurge in Global Stocks Fueled By Investors 'Buying the Dip' -- WSJ
10/29DJWhy Are Markets Rising Everywhere? Investors Can't Stop Buying Every Dip
07/13 Brookfield, Renova talks cool over management rights, sources say
07/05 Exclusive - Oaktree enters race for Brazil's Renova, sources say
07/05 GOL LINHAS AEREAS INTELIGENTES : Brazil's Gol shares jump on strong second-quart..
07/05 Brazil may allow Eletrobras to raise rates at dams impacted by 2012 rules - s..
06/27DJU.S. Stocks Slide as Tech Sector Remains Under Pressure
06/27DJNasdaq Slides as Tech Sector Remains Under Pressure
06/27DJNasdaq Slides as Tech Sector Remains Under Pressure
06/27DJNasdaq Slips as Tech Sector Remains Under Pressure
More news
News of the components of IBOVESPA
01:37p PUBLIC OFFERING OF SHARES FOR PETROB : Granting of Registration by CVM
01:14p RUMO : Wabtec Signs Contract Worth $5 Million To Provide Yard Train Control For ..
09:17a EMBRAER : Air Algrie mulls options apropos ATR72-500 fleet renewal
12:42a CENTRAIS ELETRICAS BRASILEIRAS : Market Announcement - 12.13.17 - Official Lette..
12:12a COMPANHIA PARANAENSE DE ENERGIA COPE : Notice to Shareholders
12:02a CENTRAIS ELETRICAS BRASILEIRAS : Notice to Shareholders - 12.13.17 - Interest on..
12/13 PETROLEO BRASILEIRO PETROBRAS : Brazil's Lula says he'll beat corruption charges..
More news
Chart IBOVESPA
Duration : Period :
Ibovespa Technical Analysis Chart | IBOV | BRIBOVINDM18 | 4-Traders
Technical analysis trends IBOVESPA
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Heatmap :