Brazil’s federal regulatory agency Aneel approved rate electric energy rate increases of between 23% and 36% for 6 million consumers in three states, the agency said. The agency said that beginning Thursday, consumers in the northern state of Para would see an increase averaging 35%, while consumers in the south and southeastern states of Santa Catarina and Espirito Santo will see average increases of 23% and and 24% respectively. Agency officials said the rate adjustments are part of a plan to offset loans granted to energy distributors to cover for increased costs of electricity brought by drought and poor generation conditions at many of the country’s hydroelectric facilities. The government earlier in the year authorized some $5 billion in loans to distributors from private banks to cover for the costs of thermal-electric generational alternatives. Many analysts expect that the government will have to continue raising rates following this years elections compensate for rising costs. In a note Tuesday, Aneel said rate adjustments could occur in “two cycles” in 2015 and 2016, but that the size of adjustments would depend on a series of factors, including the amount of rainfall received at hydrolectric reservoirs in the coming year and alteration of energy quota rules following the expiration of existing concession contracts in 2015.