The Brazilian Government could pay as much as 2.8 billion reals (£880m) to energy companies for cuts in electricity tariffs, reports claim.
President Dilma Rousseff is set to sign a “presidential decree” today, which will allow Government-controlled utility Centrais Eletricas Brasileiras to pass on the cash to 64 power distributors in the country, according to reports. That is expected to help distributors reduce customers’ energy bills by an average of 20%.
Brazil’s Energy Minister told reporters: “We anticipate the payment of 2.8 billion reals for power distributors. This money is due to be paid until December and compensates distributors so that they do not pass the price to consumers.”
The country is said to have cut power prices last year to reduce production costs and in a bid to help curb inflation.
Earlier this month the UK Government published guidance for energy intensive users in the UK to claim up to £113 million in compensation for the extra power costs caused by the impact of European carbon pricing schemes.