Power Regulator Oks Rate Hikes In 4 More States

Brazil’s power regulator Aneel authorized a new round of electricity rate hikes for power distributors in four states, the agency said Tuesday. Aneel said it would permit rate hikes of between 22% and 32% to a total of 5.5 million consumers in the Northeastern states of Paraiba, Alagoas, Piaui and Maranhão beginning on Aug. 28. The agency earlier this month authorized rate hikes in Para, Santa Catarina,  Espirito Santo, São Paulo and the Federal District.  The increases come as the government seeks ways to offset the impact of low water levels and rising costs brought by low rainfall at the country’s hydroelectric facilities this year and the need to substitute them with thermoelectric generation. Authorities last week confirmed that due to the impact of recent poor weather conditions they expect additional increases to also be put into effect in 2015 and 2016.