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Rationing Prevention Measures May Lead to Political Conflict – 06/15/2021 – Vinicius Torres Freire

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Rationing Prevention Measures May Lead to Political Conflict - 06/15/2021 - Vinicius Torres Freire

The government and the electricity sector administration have taken measures to prevent electricity rationing this year, although there is less certainty about the risk of accidental power outages. So say private sector experts, many of whom have experience in government. The bigger issue is whether these measures will be implemented.

Risks: 1) political opposition in Congress or from local governments; 2) the risk of getting decisions in court; 3) that there is no emergency power supply (insufficient imports, lack of gas for CHP plants, failures of these stations, etc.); 4) conflict between institutions involved in the regulation of energy and water use.

In late May, the National Electricity System Operator (ONS) published a study on the risk of energy shortages, a risk largely resulting from the emptying of hydropower reservoirs in the Parana River Basin. The assumptions of these projections are very “conservative” (it is assumed that almost everything goes very wrong, roughly speaking). Reservoirs will fall to record lows by November; certain actions can prevent critical emptying. If the dams are below a certain level, the plants produce little or no energy. If they can use less water, the energy that will not be produced will be replaced by that which will come from thermoelectric plants, which are much more expensive, or from other regions of the country.

Chief among these measures is the change in regulatory requirements, according to which a certain amount of water seeps from dams into the river below some factories and is maintained at the level of others. These requirements exist because water is not only used to generate electricity: flooded lakes support tourism, irrigation and other industries; minimal runoff prevents rivers from becoming too low, which negatively affects shipping, fish and water supplies.

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Those affected by these changes, which are already being implemented, complain, of course, in a legitimate manner. The complaint, of course, has a political effect. Senator Rodrigo Pacheco (DEM-MG), President of the Senate, even wants to legislate the minimum water level in the Furnas reservoir. If he succeeds, then perhaps other water addicts will say the same.

One challenge is to balance the risk of dam emptying, which could lead to a rationing disaster, with the loss of those who depend on water for other purposes. This balance includes payments for damage to victims, which must be included in the electricity bill.

In addition, given the risk of political or judicial conflict, the government is planning an interim measure that centralizes emergency solutions, partly removing the authority of involved institutions such as the National Water Resources Agency and Ibama. There are fears that this measure may be authoritarian, interventionist, to the point of refusing the tractor in interests not related to electricity.

In addition, plant owners fear that they will be sued for damage caused by changes in water levels and flow from the dams they operate.

Alexander Zukarato says the announced measures include proposals from ONS, of which he is the planning director. That is, even under the “conservative” scenario, there will be water. The question is in implementation. The ONS manages the transit and source of electricity generation in the country.

“The next 45 days are fundamental [para a implementação]“And reducing the flow of hydropower plants is ‘urgent,’” says Luis Barroso, director-president of PSR consulting company and former president of Empresa de Pesquisa Energética, affiliated with the Ministry of Mines and Energy. PSR believes that the ONS scenario was even immensely conservative, but agrees with the proposed measures to avoid the worst. Interaction with other people

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Politics

The dollar continues to reflect the political scenario

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The dollar continues to reflect the political scenario

Yesterday, financial agents evaluated the opposite decision of the Federal Supreme Court (STF) regarding the so-called secret budget. In addition, a decision was made by STF Minister Gilmar Méndez to issue an injunction that would exclude the Bolsa Família from the spending cap rule, with investors trying to understand how this measure would affect the processing of the transitional PEC in the Chamber of Deputies. Oh this PEC!!!!

Since he is an exchange investor, any reading that the budget will be exceeded or become more flexible will negatively affect the exchange market, whether through the PEC or in any other way. We will continue with volatility today.

Looking beyond, the US Central Bank (Fed), although slowing down the pace of monetary tightening at its December meeting, issued a tougher-than-expected statement warning that its fight against inflation was not yet over, raising fears that rising US interest rates will push the world’s largest economy into recession.

The currency market continues to react to political news. The voting on the PEC is saved for today. It is expected that it will indeed be reviewed to open the way tomorrow for discussions on the 2023 budget.

Yesterday, the spot price closed the selling day at R$5.3103.

For today on the calendar we will have an index of consumer confidence in the eurozone. Good luck and good luck in business!!

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Andrés Sánchez consults with the Ministry of Sports, but refuses a political post.

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Goal.com

The former president of the Corinthians dreams of working for the CBF as a national team coordinator. He was consulted shortly after Lula’s election.

Former Corinthians president Andrés Sánchez was advised to take a position in the Ministry of Sports under the administration of Lula (PT). However, he ruled out a return to politics. dreams of taking over the coordination of CBF selectionHow do you know PURPOSE.

No formal invitation was made to the former Corinthian representative, only a consultation on a portfolio opportunity with the new federal government, which will be sworn in on January 1, 2023.

Andrés was the Federal MP for São Paulo from 2015 to 2019. At that time he was elected by the Workers’ Party. However, the football manager begs to stay in the sport, ruling out the possibility of getting involved in politics again.

Andrés Sanchez’s desire is to fill the position of CBF tackle coordinator, which should become vacant after the 2022 World Cup. Juninho Paulista fulfills this function in Brazil’s top football institution.

The former president of Corinthians was in Qatar to follow the World Cup along with other figures in Brazilian football. During his time in the country, he strengthened his ties with the top leadership of the CBF.

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Politics

The EU has reached a political agreement on limiting gas prices – 19.12.2022

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Germany sentenced Russian to life imprisonment for political murder by order of Moscow - 12/15/2021
BRUSSELS, DECEMBER 19 (ANSA). European Union countries reached a political agreement on Monday (19) to impose a natural gas price ceiling of 180 euros per megawatt hour (MWh). The main sources of income for Russia and the minimization of the use of energy as a weapon by the regime of Vladimir Putin.

The agreement was approved by a supermajority at a ministerial meeting of member states in Brussels, Belgium, after months of discussions about the best way to contain the rise in natural gas prices in the bloc caused by Russia’s invasion of Ukraine. .

The value set by the countries is well below the proposal made by the European Commission, the EU’s executive body, in November: 275 EUR/MWh. However, the countries leading the cap campaign were in favor of an even lower limit, around 100 EUR/MWh.

Germany, always wary of price controls, voted in favor of 180 euros, while Austria and the Netherlands, also skeptical of the cap, abstained. Hungary, the most pro-Russian country in the EU, voted against.

The instrument will enter into force on 15 February, but only if natural gas prices on the Amsterdam Stock Exchange exceed 180 euros/MWh for three consecutive days. In addition, the difference compared to a number of global benchmarks should be more than 35 euros.

Italy, the EU’s biggest supporter of the ceiling, has claimed responsibility for the measure. “This is a victory for Italy, which believed and worked for us to reach this agreement,” Environment and Energy Minister Gilberto Picetto tweeted.

“This is a victory for Italian and European citizens who demand energy security,” he added.

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Currently, the gas price in Amsterdam is around 110 EUR/MWh, which is already a reflection of the agreement in Brussels – in August the figure even broke the barrier of 340 EUR/MWh.

However, Russia has already threatened to stop exports to countries that adhere to the ceiling. (ANSA).

See more news, photos and videos at www.ansabrasil.com.br.

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