What's Happening
A bill being processed in the Senate may have a devastating impact on the electricity bills of Brazilian consumers. Bill No. 5.027/2019, which originally aimed to amend a law to expand the discount on energy tariffs for irrigation and semi-artesian wells, was modified to include "riders" that provide for the mandatory hiring of thermal power plants and small hydroelectric power plants.
According to a calculation made by the Brazilian Association of Large Industrial Energy Consumers and Free Consumers (ABRACE), the approval of this bill may cost up to R$ 1.3 trillion over the next 30 years to Brazilian consumers. This represents a significant increase in electricity bills, with an annual cost of R$ 44.2 billion from 2032, which could reach R$ 54.9 billion annually if added to the flexibilities of the legislation that privatized Eletrobras.
Why It Matters
The impact of these "riders" is not limited to just increasing electricity bills. They also harm consumers, go against the interests of the electricity sector itself, and benefit few players, especially in the fossil fuel market. Furthermore, the Senate's proposal can contribute to destroying the electricity sector, making it less competitive and harming the national industry as a whole, as well as society in general.
As stated by Paulo Pedrosa, president of ABRACE, "They [riders] don't die even with a stake in the heart. It's a tough game. Some have already been knocked down a dozen times and keep coming back. The irony is that if they win once, they win forever. This doesn't apply to consumers".
The Science Behind It
The inclusion of "riders" in bills is a common practice in the National Congress, but it can have serious consequences for the environment and the economy. The mandatory hiring of thermal power plants and small hydroelectric power plants can increase the country's dependence on non-renewable energy sources, contributing to global warming and air pollution.
Furthermore, the expansion of fossil fuel infrastructure can have negative impacts on public health and the environment, especially in areas close to vulnerable communities. It is essential that lawmakers consider the long-term consequences of their decisions and prioritize the transition to renewable and sustainable energy sources.
Bigger Picture
Bill No. 5.027/2019 is not an isolated case. There is a growing trend to include "riders" in bills that aim to benefit specific economic interests, to the detriment of the population's well-being and the environment. It is essential that citizens are aware of these practices and demand transparency and accountability from their representatives.
ABRACE and eight other associations sent a letter to the president of the Senate, Davi Alcolumbre, expressing concern about the "riders" included in the substitute bill to PL 5.027. The letter highlights the importance of considering the long-term consequences of these decisions and prioritizing the transition to renewable and sustainable energy sources.
What's Next
It is essential that Brazilian consumers are aware of this proposal and demand that their representatives prioritize the well-being of the population and the environment. The approval of Bill No. 5.027/2019 may have serious consequences for the economy and the environment, and it is essential that lawmakers consider the long-term consequences of their decisions.
Furthermore, it is crucial that citizens are informed about the practice of including "riders" in bills and demand transparency and accountability from their representatives. Participatory democracy is essential to ensure that decisions are made for the benefit of the population and the environment.
Source / Reference
Source: ClimaInfo