Brazil’s power companies report huge losses in 2012 forced by cheaper electricity bills

Monday, April 1st 2013 - 19:56 UTC

Full article 13 comments

Latinamerica’s largest power company Eletrobras, managed by the Brazilian government reported losses equivalent to 3.4bn dollars last year which were mostly attributed to a bill promoted by the administration of President Dilma Rousseff ro reduce electricity bills both for industry, agriculture and home consumption. Read full article

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ChrisR
So, it is actually 5.25 Bn USD that the tax payers of Braisl will have to cover. And that is without the 6.08 Bn USD from Ebitda.

I bet that makes sense to them.

I wonder if the 'increase' in the economy (has there REALLY been one) when stripped out to the bottom line is NOWHERE NEAR this 11.33 Bn USD that has been lost.
Apr 01st, 2013 - 08:21 pm - Link - Report abuse 0
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mastershakejb
I honestly don't see Brazil or Argentina EVER, EVERRRR becoming successful (ie: GDP per capita in line with first world English native speaking countries) when they run their economies/governance like this.
Apr 01st, 2013 - 09:09 pm - Link - Report abuse 0
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bushpilot
They're just over-reporting the damage so they can charge more money.
Apr 01st, 2013 - 09:27 pm - Link - Report abuse 0
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redpoll
Perhaps its time for Paraguay to gently remind Brazil and Argentina that quite a lot of thier underpriced electrical supplies come from that country
Apr 01st, 2013 - 09:30 pm - Link - Report abuse 0
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mastershakejb
instead of cutting billions of dollars off electric bills, they should have invested in more efficient equipment/practices, to save customers in the long run. Argentine-tier stupidity/mismanagement sinks another economy with incredible potential.
Apr 01st, 2013 - 09:56 pm - Link - Report abuse 0
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Shed-time
@5 You are correct, it is rare indeed that an attempt to manipulate free markets actually works. Better to invest the money in something worthwhile like more efficient infrastructure, education and gain the savings that way instead.
Apr 01st, 2013 - 10:06 pm - Link - Report abuse 0
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Anglotino
Cutting electricity prices in the hope of generating economic growth..... would have been a good idea if that was the cause of low growth in the first place.

Brazil open your eyes!

http://blogs.ft.com/beyond-brics/2013/04/01/chart-of-the-week-brazils-bottlenecks/
Apr 02nd, 2013 - 12:13 am - Link - Report abuse 0
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Baxter
4 redpoll . How right you are ! You would be amazed at how little they pay for the electrical supply . Some would call it robbery !
Apr 02nd, 2013 - 01:16 am - Link - Report abuse 0
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Sergio Vega
even with cost cut the Brazilian economy grew just 0,2% in 2012........

It demonstrated that Dilma & gang is a bad Government, as well as all her friend neighbors......except Paraguay...Special case is Chile because is not a neighbor.....and successful......!!!
Apr 02nd, 2013 - 02:25 am - Link - Report abuse 0
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yankeeboy
Dilma is destroying Brazil. She has no idea how to run a country. I hope the Brazilians wake up and get rid of her at the next election or they can kiss their hope of becoming a relevant nation goodbye.
Apr 02nd, 2013 - 11:37 am - Link - Report abuse 0
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Shed-time
@10 I'm not convinced that one person is destroying brazil. I'm pretty sure that it's a culture that reinforces specific undesirable activities that ultimately lead to a country's demise. Putting the blame on one person, although figuratively understandable, is unlikely to illuminate the whole truth, and nothing but the truth, of why these countries seem incapable of success.
Apr 02nd, 2013 - 11:50 am - Link - Report abuse 0
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ChrisR
Too much is expected from the Presidents of these countries.

They are EXPECTED to make all the decisions and ensure the country moves forward.

The real problem is of course that the incumbents THINK they are doing a good job.

Oh dear.
Apr 02nd, 2013 - 08:30 pm - Link - Report abuse 0
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yankeeboy
The President is the leader of the country. He/She is supposed to take it in the direction that is best for their people. I don't specifically blame Dilma any more than I blame Obama. I don't think either one of them are good leaders though. They are both over their heads and have no idea what to do.
Apr 02nd, 2013 - 10:44 pm - Link - Report abuse 0
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