Energy from the Angra 3 nuclear plant could increase electricity bills by 2.9% per year, says government

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Calculations are from the Energy Research Company and Aneel and are included in the TCU report. For cuts, the government must consider the cost when deciding whether to continue the works. The energy that will be generated by the Angra 3 nuclear plant could increase the electricity bill by 2.9% per year. The calculations are from the state-owned Energy Research Company (EPE) and Aneel and are included in a report by the Federal Audit Court (TCU). Court of Auditors sees the prospect of an increase in the energy bill due to the construction of the Angra 3 plant. TV Globo/ Reproduction This Wednesday (10), the Court of Auditors determined that the government consider the cost of energy when making the decision on the continuity of works at Angra 3. In total, according to EPE, the nuclear plant should cost consumers R$43 billion. The value already considers the contracting of other energy sources in place of Angra 3 – in other words, the nuclear plant is more expensive than all other sources by R$43 billion. According to the case’s rapporteur, minister Jorge Oliveira, this cost is the average of EPE’s simulations, whose scenarios point to expenses of up to R$77 billion, paid by consumers. “Regardless of the potential positive externalities of the project for national nuclear policy, the burden on consumers will be much higher if the construction of Angra 3 continues than if the Project is abandoned,” said Oliveira. The minister highlights, however, that the cost of the tariff is not the only factor to be considered. “Decision-making is not only based on the cost of the tariff, which may be projected for consumers, but also on a strategic bias to be defined by the Executive branch.” Read also: Bolsonaro government almost quadrupled tax benefits and failed to comply with fiscal responsibility in 2022, says TCU TCU approves ‘preventive inspection’ in Petrobras refinery works targeted by Lava Jato TCU releases agreement between government and Viracopos to discuss end of re-tendering, and concessionaire waits set permanence in 2024 Why is energy so expensive? The costs of completing the Angra 3 works will be paid at the cost of selling the energy to the regulated market – that is, to the distributors’ consumers, such as residential and rural consumers, as well as smaller businesses and companies. In 2019, Eletronuclear hired the National Bank for Economic and Social Development (BNDES) to structure a financing model for the completion of the works. The bank is also analyzing a strategy for restructuring Angra 3’s debts. The bank concluded that the best model would be to hire engineering services to complete the works and market financing – to be remunerated by the energy tariff. However, the model has not yet been finalized, according to the TCU. According to the court, an additional R$19.4 billion would be needed to complete the plant. The cost of abandoning the works is estimated at R$13.6 billion. ANgra 3 under construction Eletronuclear Construction since 1981 Angra 3 has been under construction since 1981, but the works suffered several interruptions due to financial issues, termination of contracts and suspicions of corruption. In 2020, the state-owned Eletronuclear approved the resumption of the plant’s so-called “critical path” – a set of works necessary for its completion within the deadline, scheduled for 2029. The plant has more than 60% of the physical works completed. Last year, the TCU’s technical area found that work on the nuclear plant was at a “very reduced pace”, with possible impacts on the project’s completion schedule. The conclusion depends on the financing operation being studied by BNDES, since the bank needs to propose an energy tariff that can pay off the loan. The tariff, in turn, must be approved by the National Energy Policy Council (CNPE) – made up of government ministers and President Lula. It is up to the government to decide whether to continue the works or abandon the Angra 3 project. In this Wednesday’s session (10), TCU ministers even spoke of “negligence” on the part of the government. “With each month that passes, the cost of maintaining the work at a standstill, awaiting the definition of whether it will continue or not, is already a very relevant fact. More than R$2 billion [por] year of the cost of stopped work”, said Oliveira.

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