Brazil’s Eletrobras to Receive $500 Million in Regulatory Decision

The logo for Eletrobras, a Brazilian electric utilities company, is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York on April 9, 2019. (Brendan McDermid/Reuters)

Brazilian state-run utility Eletrobras said on Tuesday that electric sector regulator Aneel ruled that the company would receive a $500 million credit related to the “fuel consumption account” program.

Centrais Eletricas Brasileiras SA as the company is formally known said in a securities filing that the ruling related to its affiliated companies Amazonas Energia, Eletroacre, Ceron, and Boa Vista Energia.

The fuel consumption account program helps to pay for thermoelectric power generation in the north of the country, which is generally not connected to the electricity grid, and is therefore far more expensive.

Eletrobras said it will receive the money in 60 monthly payments adjusted for inflation.