06/21 Closing Prices / revised 06/21/2024 21:59 GMT |    06/20 OPEC Basket   $85.68  +$0.14 cents 06/21 Mexico Basket (MME)  $76.19  -$0.28  cents | 05/31 Venezuela Basket (Merey)  $70 45   -$4.36 cents | 06/21 NYMEX WTI Texas Intermediate July CLN24 $80.73  -$0.56 cents  | 06/21 ICE Brent August  BRNQ24 $85.24  -$0.47 cents  | 06/21 NYMEX Gasoline July RBN24 $2.51  +0.5%  |  06/21 NYMEX  Heating Oil July  RBN 24   $2.49  -1.3% | 06/21 Natural Gas July NGN24  $2.71   -1.3%  | 06/21 Active U.S. Rig Count (Oil & Gas)   588  -2  | 06/21 USD/MXN Mexican Peso   18.1130 (data live)  | 06/21 EUR/USD   1.0693  (data live)  | 06/25 US/Bs. (Bolivar)   $36.37250000 (data BCV)

Court clears path for Brazil to renew energy distribution concessions – Reuters

Pylons of high-tension electricity power lines are seen during sunset in Brasilia, Brazil June 6, 2022. REUTERS/Ueslei Marcelino
Pylons of high-tension electricity power lines are seen during sunset in Brasilia, Brazil June 6, 2022.(Ueslei Marcelino/Reuters)

Reporting by Leticia Fucuchima

SAO PAULO
EnergiesNet.com 01 26 2024

A Brazilian court on Wednesday cleared a hurdle for the government’s renewal of concessions contracts representing 60% of the energy distribution market in South America’s largest country.

Brazil’s government has been working since 2022 on new guidelines over the extension of energy distribution contracts, but it has yet to release a final version, already affecting one concession.

On Wednesday Brazil’s court of auditors said that new guidelines would not need its approval, a decision which could help streamline concession renewals.

In a statement, Brazil’s energy and mining ministry said the court’s decision allows it to continue with the energy distributors contracts renewal process.

International energy groups, such as Italy’s Enel (ENEI.MI) and Portugal’s EDP (EDP.LS), are among the 20 concession contracts expiring by 2031.

Brazilian law says the government should formally express to companies that it intends to renew their energy distribution contracts no less than 18 months before the concession is due.

EDP’s contract in Espirito Santo state was the first one to miss this deadline last week. EDP’s CEO for Brazil, Joao Marques da Cruz, said in a statement sent to Reuters that the firm trusts Brazilian authorities and expects the contract to be renewed with no extra costs.

Meanwhile, Marcos Madureira, president at Brazil’s energy distributors association Abradee, said distributors “aren’t in a good” situation, as the uncertainty around concession renewal can affect new investment decisions.

Reporting by Leticia Fucuchima; writing by Andre Romani; Editing by Brendan O’Boyle and Leslie Adler

reuters.com 01 24 2024

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com


CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved
 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

 
 
Scroll to Top