This Thursday, March 19, the Council of Ministers approved three diplomas to reinforce energy sovereignty and security and protect the most vulnerable consumers in the event of a declaration of an energy crisis resulting from the increase in oil and gas prices.
The new consumer protection mechanism comes into operation if, at retail, there is an increase of more than 70% in the price of energy, or more than 2.5 times the average price of the last five years, exceeding R$180 per Megawatt/hour (MWh).
If an energy crisis is declared, the Government can take measures to support domestic customers and companies, setting limits on the price of energy “below cost price”as explained by the Minister of the Presidency.
This difference, which will be supported by the State, “will be recovered later”, he said.
The energy price cap will also have to be accompanied by energy efficiency measures. Families will have to reduce their consumption to 80% of what they consumed the previous year, and companies to 70% of the previous year’s consumption.
This mechanism, according to the Minister of the Presidency, could be used in the event of an energy crisis being declared, “which will happen if prices continue to rise”.
In this case, the support given by the Government cannot be considered European Union (EU) State aid.
The Council of Minister also approved measures to protect the most vulnerable consumers, through adoption of payment plans with extended terms and the prohibition of cuts in energy supply during periods of high consumptionwhether in winter or summer.
At the meeting, the strengthening energy production capacity from renewable sourcesin order to increase decentralized production and production for self-consumption and thus reduce energy dependence on fossil fuels at the national level.
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