Warning over new Brazilian power crisis

Insufficient investment in Brazil's power sector over the next three years will lead to another blackout like the one that led to the nine-month rationing suffered in 2001-2002, the Brazilian Metallurgical & Materials Assn (ABM) congress has been told.

Pinguelli Rosa said the new model now being worked out by the Brazilian government for the country's power sector foresees the creation of a pool of state and private-sector companies, which should allow all generators to sell to all distributors, thus improving operating conditions and avoiding a build-up of financial pressure on certain companies.

"At the moment state-generated...

Published

July 25, 2003

14:37 GMT

Rio de Janeiro