Abstract

This paper reviews the causes and consequences of the crisis for the electricity sector in Brazil from the market reform introduced by the government FHC, the adjustment promoted by the Lula government in 2004, and the failed attempt by the government Rousseff 2012. The costs arising from the lack of effective planning and of efficient criteria for contracting expansion of capacity, the deficiencies in the representation of plants for the operation led to a path of skyrocketing tariffs, mistrust in the capacity of ensuring energy supply, public property destruction, and loans to be paid by consumers in the future. The main conclusion is that we need a deep review of the organizational structure, management, planning, operation and maintenance of the Brazilian electric system.

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