MercoPress. South Atlantic News Agency

Holidays to forget blackouts

Legal controversies about the implementation of energy rationing has convinced the Brazilian government to seriously consider a proposal by distributors to declare Mondays national holiday, thereby increasing electricity savings.

National grids warned the government they could not apply selective sanctions to those consumers who violate energy consumption restrictions, and courts in Río banned companies from charging additional rates to those homes that consume more than 200 KW monthly, as was decreed by government. Restrictions and blackouts expected to begin next June have been postponed until July, but Brazilian officials have warned they could be extended until the end of the year unless people understand the seriousness of the situation or rains help fill the half empty dams, from where 90% of Brazilian electricity is generated. "There are only two options, either people save energy or we have massive blackouts", stressed Mr. David Zybersztajn, responsible for the rationing program. According to the Brazilian press the government is considering the Monday holiday option which described as an "additional" step, will be extensive to retail, banks and services. However industry will be allowed to discuss the issue directly with energy suppliers. Government officials and private consultants estimate the energy crisis could cost Brazil up to two points of the four that the country's economy was expected to grow this year.In Wall Street investors are demanding the government deregulate the electricity sector