Brazil utilities baulk at government plan for cheaper electricity

Leonardo Goy – Reuters, 11/09/2012

Refusal by large Brazilian power utilities to renew their concessions on the government’s terms has put in doubt the viability of President Dilma Rousseff’s plan to lower electricity costs to spur economic growth.

Minas Gerais state electricity company Cemig decided not to renew concessions for three of its hydroelectric dams that produce 2,500 megawatts (MW).

The Sao Paulo state utility Cesp and power transmission company Cteep are also expected to reject the extension of their concessions in exchange for its commitment to provide cheaper electricity.

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