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Custo de Capital das Concessionárias de Distrubuição de Energia Elétrica no Processo de Revisão Tarifária 2007-2009

Author

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  • Katia Rocha
  • Fernando Camacho
  • Gabriel Fiuza

Abstract

The current methodology adopted by the Aneel to estimate the rate of return (cost ofcapital) applied in the periodic tariff revision is improved via some modifications inthe following parameters: country risk, exchange rate risk and regulatory risk.We recommend the global CAPM methodology with some adjustments for thespecifics of the Brazilian electricity sector such as the addition of the total magnitudeof the country risk premium, which the current regulation considers only partially.Such approach makes the correction for the exchange risk premium unnecessary.Since country risk is a volatile parameter presenting a continuing falling over the last3 years, several scenarios are analyzed.The appropriate rate of return is estimated in real terms at 10.6% ? 12.3%. Therelevance of the rate of return adopted by the regulatory agency and the recognitionthat, in the long run, private investors have to recover the opportunity cost of capital(including the country, regulatory and project-specific risks) are crucial issues indiscussions over the best regulatory practices.

Suggested Citation

  • Katia Rocha & Fernando Camacho & Gabriel Fiuza, 2006. "Custo de Capital das Concessionárias de Distrubuição de Energia Elétrica no Processo de Revisão Tarifária 2007-2009," Discussion Papers 1174, Instituto de Pesquisa Econômica Aplicada - IPEA.
    • Handle: RePEc:ipe:ipetds:1174
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