Brazil Congress Allows Eletrobras Privatization in Final Vote
- Government stake to be diluted through offering of shares
- Drought has caused consumer electricity bills to skyrocket
Eletrobras transmission towers in Rio de Janeiro, Brazil.
Photographer: Dado Galdieri/BloombergThis article is for subscribers only.
Brazil’s lower house approved a plan to privatize power utility giant Eletrobras, opening the door for the government to raise an estimated 60 billion reais ($11.9 billion) through an offering of shares of the company.
Lawmakers approved the bill by 258-136 votes one day before its June 22 expiration. The privatization will allow the economy ministry to raise funds to offset part of a recent jump in electricity prices, which are expected to increase further in coming months as a drought pushes the country to use more costly thermoelectric energy in lieu of hydroelectric sources.