The government goes to court to resume the auction of subsidiaries of Eletrobras – News

AGU and BNDES appealed TRF2 against the decision of the Federal Court in Rio de Janeiro that suspended the auction of 6 Eletrobras energy distributors

AGU and BNDES call for a decision to suspend the auction of Eletrobras distributors

AGU and BNDES (Brazilian National Bank for Economic and Social Development) appealed on Friday (13) to TRF2 (Federal Regional Court of the 2nd Region) to overturn the preliminary injunction of the 19th Federal Court of Rio de Janeiro which suspended the auction of six subsidiaries of 39; Eletrobras of energy distributors.

The decision, (19659004) The suspension was requested by the Association of Employers of Eletrobras and granted by the Brazilian Electricity Regulatory Agency ("Eletrobras"). by the Federal Court of Rio de Janeiro, which in its initial badysis of the case, understood that there was no legislative authority for the sale of distributors.

In the appeal, AGU explains that the authorization has already been given by

AGU and BNDES also point out that the TCU (Court of Accounts of the Union) recently recognized the legality of the Auction, in this year's decision. And that maintaining subsidiaries under the control of Eletrobras will jeopardize the continuity of electricity supply in the states where the companies operate – Acre, Alagoas, Amazonas, Piauí, Rondônia and Roraima – and will impose an excessive load to local consumers.

according to the AGU, because subsidiaries rely on high investments to keep operating – resources that can only come from private buyers, given the financial constraints facing the company. Union and Eletrobras itself.

in the appeal, that the six companies accumulated a loss of R $ 4.5 billion in 2017, so that the operations were maintained with the help of the global reversion reserve ( RGR).

"How are the resources The delays in the sale of the subsidiaries will represent in the future a higher cost for the future."

AGU and BNDES also warn that if the distributors are not sold , they should be liquidated by Eletrobras – which would mean a possible dismissal of employees and a risk of discontinuity

In addition to the court decision that suspended the auction, two other separate injunctions also threaten the appeal of Offers – one by the Federal Supreme Court Minister (19459008) Ricardo Lewandowski who vetoed the sale of Ceal, the distributor of Eletrobras to Alagoas, and a court of Piauí, which suspended the effects of a meeting of Cepisa, in Piauí, which approved the sale of the company

. The Eletrobras strategy said the state in the state is that injunctions are being reversed quickly by the government, which would make the auction feasible, albeit with some delay.

"We are working on the auction with all distributors at the end of August," said the source, who requested anonymity.

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