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The second reform of the Brazilian electric sector

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  • Luciano Losekann

Abstract

The Brazilian electric sector went through a redesign of its structure in the mid-1990s. This reform initiated a transition to a more competitive environment in the generation and supply of electricity with a wider participation of private companies. The rationing of electricity in 2001/2002 interrupted this process. In the second reform of the Brazilian electric sector, after the rationing, the state took back the coordination of the sector as means to pull back any possibility of new rationing and also to make the tariffs as low as possible. The electricity trade was concentrated on a pool of distributors in a scheme of public auctions. This paper briefly explains the two reforms and analyses the results of those auctions. We estimate that the Brazilian electric sector is still vulnerable to adverse hydrology periods. In other words, the goals of the new model designed for the Brazilian electricity sector have not been achieved.

Suggested Citation

  • Luciano Losekann, 2008. "The second reform of the Brazilian electric sector," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 29(1/2), pages 75-87.
    • Handle: RePEc:ids:ijgeni:v:29:y:2008:i:1/2:p:75-87
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    Cited by:

    1. Losekann, Luciano & Marrero, Gustavo A. & Ramos-Real, Francisco J. & de Almeida, Edmar Luiz Fagundes, 2013. "Efficient power generating portfolio in Brazil: Conciliating cost, emissions and risk," Energy Policy, Elsevier, vol. 62(C), pages 301-314.
    2. Mehmet Ugur & David Sunderland (ed.), 2011. "Does Economic Governance Matter?," Books, Edward Elgar Publishing, number 14356.
    3. Cláudio de Araújo Wanderley & John Cullen & Mathew Tsamenyi, 2011. "Electricity Sector Reforms and the Tariff Review Process in Brazil," Chapters, in: Mehmet Ugur & David Sunderland (ed.), Does Economic Governance Matter?, chapter 10, Edward Elgar Publishing.
    4. Resende, Marcelo & Cardoso, Vicente, 2019. "Mapping service quality in electricity distribution: An exploratory study of Brazil," Utilities Policy, Elsevier, vol. 56(C), pages 41-52.
    5. Hunt., Julian David & Stilpen, Daniel & de Freitas, Marcos Aurélio Vasconcelos, 2018. "A review of the causes, impacts and solutions for electricity supply crises in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 208-222.

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