Elizabeth Johnson

Managing Director, Brazil Research

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Brazil: Implications of the electric concession renewal package

Overview

The Dilma administration issued a decree on 11 September that will cut electricity costs by 16-28 per cent. The decree reduces taxes on electricity and also slashes rates paid to transmission and generation companies in exchange for the renewal of their concessions. Together with other recent measures to trim banking spreads, reduce railway fees and lower taxes for industry, this move is an important component of Dilma’s goal of reducing the “Brazil cost”, curbing inflation and...

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