The Government Completed the Privatization of Eletrobras Distributors



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Equatorial is the winner of the auction that will take place this Friday, December 28 and will be the new controlling company of Companhia Energética de Alagoas

The government of President Michel Temer has completed the privatization process . six distributors of the Eletrobras group this Friday, December 28th. Equatorial won the B3 auction, the São Paulo Stock Exchange, and will be the new majority shareholder of Companhia Energética de Alagoas (Ceal), the last electricity distributor still under the control of Eletrobrás. The winning proposal provided for a combined rate of tariff easing and zeroing.

The Ceal auction has still not been enforced by a preliminary injunction, obtained by the Alagoas State of the Federal Supreme Court (STF) in June. pbaded, suspended on December 3 by the author of the injunction, Minister Ricardo Lewandowski. The entire privatization process was conducted by the BNDES, under the coordination of the Ministry of Mines and Energy (MME) and with the support of Eletrobras.

In accordance with the rules of the auction, the new dealer must make a capital contribution of R $ 545.7 million. before taking over the company and investing for $ 837.2 million in the first five years of the concession. CEAL still has a remaining debt of R $ 1.8 billion. The company serves about 3.3 million people in the state of Alagoas. Since the 1998 federalization, Eletrobras has contributed about 2.6 billion rubles to the company, which currently employs around 1,200 people and has several subcontracted companies.

From August to December, the company used $ 688 million in loans from the Global Reversion Reserve (GRR). Over the past five years, the company's debt level has increased on average by R $ 210 million a year. As at December 31, 2016, the distributor had accumulated losses of approximately R1.3 billion.

According to Eletrobras, the privatization of the group's distributors had become necessary because of the government's inability to clean up companies and to provide an adequate service. consumers. Eletrobras will focus on transmission and production activities.

In April of this year, an estimate from Eletrobras indicated that the six distributors had recorded a cumulative loss of R $ 22.1 billion until 2017. Only in the first quarter of 2018, negative result was 1.9 billion rand. In 2016, shareholders of Eletrobras at the Extraordinary General Meeting (AGE) had already decided that there was no longer any economic-financial conditions allowing them to continue operating companies.

Privatized in 2018

July 26 In 2018, Equatorial Energia sold Cepisa (Piauí) with a winning offer consisting in obtaining a 100% discount on the tariff flexibilities (cost of the goods). operations, non-technical losses and loans from the global reversion reserve) and to allocate R $ 95 million to the federal government. 19659004] The Energisa Group buys Ceron (Rondônia) and Eletroacre (Acre) on August 30th, offering respective reductions of 21% and 31% in tariff flexibility. Also on that date, the consortium Oliveira Energia / Atem bought Boa Vista Energia (Roraima). The same consortium was with Energia's Amazonas Distribuidora at another auction held on December 10th. Both consortium offers did not have negative goodwill.

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