Brazilian government expects to announce power companies bailout in May- ministry [Reuters]
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Source: Reuters
Brazilian government expects to announce power companies bailout in May- ministry SAO PAULO, April 20 (Reuters) - The Brazilian government expects to announce details of a bailout to power companies next month, Mines and Energy Ministry Secretary Rodrigo Limp told Reuters on Monday. While industry lobby groups have mentioned the power companies would need up to 17 billion reais ($3.2 billion) in credit, Limp said there is no final decision about the size of the bailout needed. A presidential decree earlier this month has allowed the pass-through of the credit cost to consumers in the tariff. Limp said consumers would pay over the long term, and the cost would be deferred up to five years. Private sector and state-controlled banks are discussing the details of the credit, Limp said. In addition to the drop in demand for electricity, power companies are complaining of potential higher delinquency rates after power regulator Aneel forbade service cuts for three months to residential and
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