Leonardo Goy & Anna Flavia Rochas – Reuters, 10/18/2011
Brazil’s state-run power utility Eletrobras could pare back ambitious investments in Latin America’s largest economy as the renewal of electric concessions threatens to pinch cash flow.
Brazil is nearing a decision this year on power industry concessions, with signs pointing to a steep cut in rates for almost all of Eletrobras’s transmission contracts and about 40 percent of its generation contracts.
“No one is taking care of this. Cash flow is going to fall off steeply at Eletrobras and the government isn’t giving the issue due attention,” said a lawmaker in the governing coalition, who asked not to be named.