Brazil's Cheaper Electricity Comes at a Cost

President Rousseff cuts utility rates to boost a sagging economy
Workers repair an electricity line in Olinda, Brazil Photograph Christophe Simon/AFP via Getty Images

When customers of Brazil’s electric utilities get their bills in March, they will find they owe anywhere from 18 percent to 32 percent less than they did in February. Credit Brazilian President Dilma Rousseff for the drop, part of her effort to boost growth. If her plan works, consumers will spend the savings on Brazilian goods and services, while Brazilian companies will profit from the drop in costs to improve productivity and become globally competitive. Subsidiaries of multinationals such as aluminum giant Alcoa will also benefit from cheaper power.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.