Electricity concessions: uncertainties may cause shocks

Resumo

President Rousseff has important decisions to make before 2015: whether to extend concessions for about 31 gigawatts in electricity generation and contracts for transmission and distribution throughout the country. Extension, which is not currently authorized, would require sending a bill to Congress and issuing an interim decree. The alternative, under current rules, is for the concessions to revert to the federal government. Liliana Lavoratti analyzes the implications of each choice.