• iCS - Climate and Society

Bill modernizes the power sector and reduces energy costs

Civil society has submitted a manifesto to the National Congress asking for urgency in the approval of the opinion of the rapporteur


Bill 414/2021, which modernizes the power sector and contributes to the reduction of the cost of energy, is the subject of a manifesto by civil society associations and institutions sent to the National Congress. In the document, the urgency in the approval of the Bill is requested, preserving the guidelines found in the opinion of the rapporteur, deputy Fernando Coelho Filho (UNIÃO/PE). Among the important advances made available in the manifesto and in the text of the Bill, are:


1 - The transparency of energy prices and tariffs, by avoiding costs of charges paid by consumers and which, in the end, are earned by generators “outside of the contracts,” providing predictability to the final cost of energy;
2 - The correct distribution and allocation of costs of the system, avoiding opportunistic behavior in the market with the old and well-known socialization of costs in the sector, through the separation of guarantees and energy;
3 - The separation of the activities directly related to the infrastructure of distribution, a regulated natural monopoly, from the commercialization of energy, a competitive activity, guaranteeing appropriate protection for small consumers;
4 - The non-extension of the discount on the wire to low voltage consumers who install self-generation, as a rule through private photovoltaic systems, avoiding unnecessary subsidies that would generate billions in costs to other consumers;
5 - The allocation of resources from grants to affordable tariffs through the CDE, offsetting the high cost of public policies attributed to consumers and the possibility of the allocation of R&D resources;
6 - The guarantee of a 0.5% percentage of the tariffs applied in energy efficiency projects, provided that the effectiveness of the use of resources is guaranteed, including the consideration of leverage mechanisms.

Signed by: iCS, ABRACE, CONACEN AND UNIÃO PELA ENERGIA


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