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A few days after leaving the country, President Michel Temer signed a law that promises to reduce the weight of subsidies in the consumer's lighter bill. By decree, Temer decided that several cuts currently financed by the Energy Development Account (EDC) "will be reduced at the rate of twenty percent per annum on the initial value, until the rate is zero" .
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CDE banks for example, reductions on energy bills for rural businesses, low-income families and social programs such as Luz Para Todos. Currently, the reductions for these audiences funded by the sector fund reach 40%.
With the decree published in the Official Journal (DOU) on Friday 28th, Temer also removed specific benefits for areas such as irrigation and aquaculture, rural electrification cooperatives and sanitation services. The original regulation closed "the cumulative application of discounts", prevailing the most favorable to the consumer. However, these areas were outside this requirement. The now published text is no exception and prohibits cumulative subsidies for all sectors.
In recent years, consumers have paid more expensive energy bills to cover the cost of subsidies in the industry. In 2019, consumers will have to pay 17,187 billion rubles. The amount was approved this month by the National Electric Power Agency (Aneel) so that it can cover the CDE's budget, built into the electricity bill to cover social programs, tariff reductions and subsidized loans for the sector. According to Aneel, consumers paid R17.956 billion to cover CDE costs in 2018
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