In an interview with Bruno Kleinau, Energy Metering Planner and Controller for Celpe (Companhia Energetica de Pernambuco), one of Brazil’s distribution companies, he tells MI: “Brazil is very dependent on hydroelectric plants, which in turn are depend on rain to keep the reservoirs at the right levels. Currently we are going through a period where the reservoirs are at their lowest levels and we are using thermal power plants, hence energy is more expensive. If the dams and reservoirs continue emptying, we will not have enough power to meet the energy demand of the population.”
As a country, Brazil has more than 50 million electricity customers, of which 85% are residential consumers. The distribution sector is largely privatised (more than 60% of the sector is private) and is regulated by ANEEL, the National Electric Energy Agency, which is responsible for determining both the regulatory framework and tariffs for which electricity is sold by the distributors. Distribution concessions are based on geographic area and type of customer.