According to Reuters, the Brazilian government is expected to start trimming its list of taxes and levies on electricity – which currently contribute to making Brazil’s power the third most expensive in the world.
‘Energy prices are fundamental for competitiveness,’ Nelson Hubner, director general of power regulator Aneel told the Reuters-sponsored Latin American Investment Summit.

Foreign competitors

The plans look set to challenge the current status quo -- under which concessions are only allowed one renewal before they revert to the state -- which can either run the utility itself or resell it at a competitive auction that may draw big spending foreign competitors.
An example of the process was seen last December, as Latin America’s biggest power utility company, Electrobas, lost out in a $3.5 billion bidding battle for the Portuguese government's stake in its national utility EDP to China's Three Gorge.

Future investment

According to the report, Brazil’s energy ministry has been discussing the issue with concession holders for several years. It is understood that both the government and key state-led utilities want the law passed soon, so that they can plan for future investments.