New social tariffs for Brazil


Edison Lobao,
Minister of Mines
and Energy, Brazil
Brasilia, Brazil — (METERING.COM) — January 26, 2010 – Brazil’s president Luiz Inácio Lula da Silva has signed a new law with revised provisions for a social tariff, which is likely to increase the number of beneficiary households up to approximately 22.5 million.

All energy consumers with incomes up to half the minimum wage and on social programs registered with the Ministry of Social Development and Fight Against Hunger will be included as beneficiaries.

Reductions range from 10 percent to 65 percent, depending on consumption. Users who consume up to 30 kWh per month will receive a 65 percent reduction of their bill, and those who consume from 31 kWh to 100 kWh will receive a 40 percent discount, while above 100 kWh the discount falls to 10 percent.

Rural dwellers who consume up to 50 kWh/month will be exempt from payment. Those who consume the 51 kWh to 100 kWh will have 40 percent discount, and from 101 kWh to 220 kWh the discount is 10 percent. With this measure, the government plans to extend the benefit to low income consumers who consume up to 220 kWh per month.

Minister of mines and energy, Edison Lobao, said the change was necessary to modify the criteria for exemption, which previously was based on energy consumption.

“It was found that not only the consumption of energy is a parameter for a social tariff. Now it will benefit low income consumers, increasing the universe of beneficiary families by about 3 million from 19.4 million to 22.5 million.”