Brazil's veto on power contracts law affects Ferbasa, electro-intensive industries

Brazil’s government has vetoed parts of a provisional law that would allow the renewal of long-term energy contracts without alterations in tariffs and price adjustment criteria.

The measure would affect mainly electro-intensive industrial consumers such as ferro-alloys producer Ferbasa, which was hoping to be able to renew its contract with state-owned power company Chesf that expires at the end of the first half of 2015.

"The proposal would have harmful effects on the low tariffs in the electricity sector and to competition in the sector,” the...

Published

Danielle Assalve

January 21, 2015

13:10 GMT

São Paulo