Subsidies in the electricity sector will cost BRL 35 billion in 2023, informs Aneel

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Most of the amount, BRL 29.6 billion, will be borne by consumers through charges included in the electricity bill. Budget for the Energy Development Account was approved this Tuesday. Low-income people can get discounts on their electricity bills Disclosure/Equatorial The National Electric Energy Agency (Aneel) approved this Tuesday (7) a budget of R$ 34.986 billion for the Energy Development Account (CDE) in 2023. The CDE is a fund used to fund subsidies granted by the government and Congress through the energy sector (see details at the end of the article). According to Aneel, the R$ 34.986 billion are needed to fund the benefits and public policies granted via the electricity sector this year. Most of the amount – BRL 29.572 billion – will be borne by energy consumers in 2023, through two charges included in electricity bills: CDE-Uso, apportioned among all consumers (free and captive), and CDE-GD , apportioned among captive consumers (served by distributors) and intended to cover only the subsidy for distributed generation. The remainder of the CDE budget will be raised through other revenues, including contributions from the privatized Eletrobras, fines, resources from research, development and energy efficiency programs and cash in the CDE account. Where does the money go? Still according to the budget approved by Aneel, the main expense that the CDE will cover in 2023 will be the Fuel Consumption Account (CCC), in the amount of R$ 12 billion. The CCC is a subsidy for the production of thermoelectric energy in regions not connected to the national electrical system. Then there are tariff discounts on energy distribution, which will cost R$ 9.3 billion this year. The third largest expense is the social energy tariff, which grants a discount on the electricity bill to low-income families. This expense is estimated at R$ 5.6 billion. There are also several other subsidies that are funded via the CDE (see the end of this report) and that make the account reach almost R$ 35 billion in 2023. Criticism Aneel directors criticized the high value of subsidies planned for this year. They argued that part of these subsidies needs to be reviewed by Congress and the government and part paid by the National Treasury, and not by the energy consumer. “Some subsidies are extremely important, low income is indisputable. The CCC is also important because consumers are not to blame for being isolated in the system and would not have the slightest condition to pay the energy bill if they did not have the CCC subsidy”, stated director Helvio Guerra. “On the other hand, today we have sources that are benefited and no longer need subsidies”, added Guerra, referring to renewable energy sources that are also subsidized via the CDE. The director recalled that “nothing or almost nothing that is here [no orçamento da CDE] was placed by Aneel, by the regulation. Everything comes from the law”, emphasizing that Aneel is only responsible for approving the CDE budget and supervising the application of resources. universalization of the electric energy service throughout the national territory; concession of tariff discounts to several users of the service: low income; rural; irrigating; public service of water, sewage and sanitation; generation and consumption of energy from incentivized sources, etc.; tariff discounts in isolated electrical systems; subsidies for the production of thermoelectric energy in isolated systems; and subsidies for national mineral coal; subsidy to cooperatives and small concessionaires in the energy sector; subsidy for distributed generation.

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