Eletropaulo Climbs After Bigger-Than-Expected Rate IncreaseNey Hayashi
Eletropaulo Metropolitana SA advanced, snapping two days of losses, after Brazil’s electricity regulator allowed the utility to raise rates by more than it had requested.
The shares rose 0.2 percent to 10.29 reais at the close of trading in Sao Paulo, after earlier climbing as much as 2.5 percent. The Ibovespa stock benchmark added 1.6 percent.
Eletropaulo will be allowed to increase its rates by 18.66 percent starting tomorrow, Romeu Rufino, the head of regulator Aneel, told reporters in Brasilia today. The unit of U.S.-based AES Corp. was seeking a 16.7 percent raise.
“The decision is a sign that the regulator is taking a more market-friendly approach toward the companies,” Felipe Rocha, an analyst at Guide Investimentos brokerage, said by phone from Curitiba, Brazil.
Eletropaulo has rallied 9.9 percent this year, while the Ibovespa has climbed 4.6 percent.