A profusion of proposals in the Legislature repeats the old paths of the subsidy and the market reserve
In a scenario where the United States, the European Union and China combine energy transition strategies with major projects to strengthen their production chains, Brazil must be attentive to its opportunities. No one disputes that we have unique conditions for producing power clean, cheap and safe. And that in this way we could reindustrialise our economy, transforming the country and generating jobs and income.
The security of energy supply, the competitive price and the contribution to the global climate issue are worth gold in a scenario where the crisis is increasingly visible, added to the instability resulting from the conflict between Ukraine and Russia. The interruption of international production chains caused by the war has forced the world to reflect on the functioning of markets, on the role of governments in protecting their economies and on the implementation of strategic objectives related to security.
It is precisely this reflection that can help us. We need to look at our energy markets, especially in the electricity sector and natural gas. Our huge potential for renewable energy and pre-blown gas, with the recognition of gas as a fuel for the energy transition, is an example of a project worthy of encouragement.
In Brazil we have been moving away from cheap, clean and safe energy for decades. We always make choices to the detriment of the consumer and which welcome the most diverse interests in the energy bill.
In the electricity sector we have various markets in which, due to the most diverse mechanisms, it is possible not to pay for the transmission and distribution of energy, sector charges and system costs. In some of them, taxes are not even paid. Since there is no magic, these costs are always passed on to other consumers.
As far as the gas sector is concerned, we have a law that is fine and which should create a national market based on diversity and competition, but as commonly happens in the country, it is not “attacking”. In practice, we could have a gas market dominated by local champions.
In the energy debate, we need to reflect on whether what we intend to change is moving us towards or away from clean, affordable and secure energy. Also due to lack of mobilization in the sector, important decisions end up being captured by fallacious arguments, but which cover certain causes. With this, a profusion of proposals in the Legislature repeats the path of the old, the path of the subsidy, that of the market reserve.
The consumer will stop paying all these undue costs only when we correctly answer the question of the moment: what energy do we want? / PAULO PEDROSA IS PRESIDENT OF THE BRAZILIAN ASSOCIATION OF LARGE INDUSTRIAL ENERGY CONSUMERS AND FREEDOM CONSUMERS (ABRACE)
Source: Terra
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