Put: Antonio Carlos Mazzucco

The final text of the Provisional Measure for the privatization of Eletrobrás was forwarded for presidential sanction, after being processed in the National Congress.

In order to be approved, the original text was amended with material that was not part of the original proposal, and in the final version, it began to include “jabuticabas”.

Of note is the amendment that authorizes the Federal Government to build the Tucuruí Power Line, an energy transmission system that will connect Roraima to the national electrical system, without the need for environmental licenses from Ibama and Funai, a measure that goes against the entire system of environmental protection for future generations, since the transmission line in question passes through 122 kilometers of indigenous territory, made up of 31 villages. The issue gains relevance because the provision is contrary to ILO Convention 169[1], and, for this project that affects the indigenous population, FUNAI is required to participate in environmental licensing.

There is also an extension of contracts for power plants built by Proinfa, the Program to Incent Alternative Sources of Electric Energy, with the aim of increasing the share of electric energy produced by Independent Autonomous Producers, designed based on wind, small hydroelectric and biomass sources, in the National Interconnected Electric System. This measure generates additional costs for the consumer, since PROINFA costs are shared among all classes of end consumers served by the National Interconnected Electric System.

The contracting of natural gas-fired thermoelectric plants, which are to be installed in the North, Northeast, Central-West and Southeast regions, to supply 8 MW of energy for 15 years, will also increase the cost of electricity, which will be paid by consumers. The increase in price will occur because the gas-fired plants will be located in areas without infrastructure for the transportation of natural gas, which must be built.

Another amendment made to the Provisional Measure establishes the market reserve for contracting Small Hydroelectric Power Plants (PCHs), whose construction and operation depend only on authorization from Aneel (in other cases, there is a requirement for an auction for the concession of the exploration of the waterfall), however, production is not controlled by the ONS (National Electric System Operator), that is, the PCHs are exposed to hydrological risk, therefore making it difficult to fulfill the contract.

Furthermore, with privatization, employees dismissed up to one year after privatization may be reallocated to other state-owned companies, maintaining, or even increasing, spending on public servants by other public companies, as well as the use of employees being an unconstitutional measure, according to Binding Precedent No. 43.[2].

Therefore, despite the Federal Government considering that the Provisional Measure is beneficial due to the increase in investments in the country and gains to the public coffers, non-governmental entities considered that privatization will increase the cost of energy for the consumer.[3]. In this regard, it is also worth noting that in addition to the increase in electricity bills, sectors that have energy inputs will be affected, once again generating an increase in consumer goods due to privatization.

[1] Article 6 1. In implementing the provisions of this Convention, governments shall: (a) Consult the peoples concerned, through appropriate procedures and in particular through their representative institutions, whenever legislative or administrative measures are contemplated which may affect them directly; (b) Establish means whereby the peoples concerned may participate freely, at least to the same extent as other sectors of the population and at all levels, in the adoption of decisions within effective institutions or administrative and other bodies responsible for policies and programmes concerning them; (c) Establish means for the full development of the institutions and initiatives of the peoples and, where appropriate, provide the necessary resources for this purpose. 2. Consultations in the implementation of this Convention shall be conducted in good faith and in a manner appropriate to the circumstances, with a view to reaching agreement and obtaining consent on the proposed measures.

Article 7 1. The peoples concerned shall have the right to determine their own priorities with regard to the development process in so far as it affects their lives, beliefs, institutions and spiritual well-being, as well as the lands they occupy or otherwise use, and to control, to the extent possible, their own economic, social and cultural development. In addition, these peoples shall participate in the formulation, implementation and evaluation of national and regional development plans and programmes likely to affect them directly. 2. The improvement of the living and working conditions and the level of health and education of the peoples concerned, with their participation and cooperation, shall be a priority in the overall economic development plans of the regions in which they live. Special development projects for these regions shall also be designed to promote such improvement. 3. Governments shall ensure that, wherever possible, studies are carried out among the peoples concerned with a view to assessing the social, spiritual, cultural and environmental impact of the proposed development activities on them. The results of these studies shall be considered as fundamental criteria for the implementation of the activities mentioned. 4. Governments shall adopt measures in cooperation with the peoples concerned to protect and preserve the environment of the territories they inhabit.

[2] Any type of appointment that allows a civil servant to be appointed, without prior approval in a public competition for his/her appointment, to a position that is not part of the career in which he/she was previously appointed is unconstitutional.

[3] https://economia.ig.com.br/2021-06-18/eletrobras-privatizacao-custo.html; https://g1.globo.com/economia/noticia/2021/06/23/como-privatizacao-da-eletrobras-deve-encarecer-cerveja-carne-e-leite.ghtml; https://www.correiobraziliense.com.br/economia/2021/06/4932847-privatizacao-da-eletrobras-avanca-com-aprovacao-de-mp-na-camara.html