En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

 

Eletrobras to auction indebted distributors for 30 cents - sources

 

 

 

By Reuters Staff

RIO DE JANEIRO
Petroleumworld 10 02 2017

State-run Eletrobras , Brazil's largest power utility holding company, will auction its inefficient and heavily indebted electricity distribution subsidiaries for a symbolic 1 real ($0.31) to the buyers who offer to charge the lowest rates to consumers, sources said on Thursday.

The two sources with direct knowledge of the matter, but who requested anonymity because they were not authorized to speak publicly, said this would allow the buyers to invest more to improve the service of the companies located in the North and Northeast of Brazil.

Brazil's government plans to sell the six distribution companies in the first quarter of 2018 before it privatizes Eletrobras.

“The idea is to sell the distributors to whoever offers to charge the lowest rates, because the consumer has nothing to do with the company's problems, and sell for 1 real. Otherwise, nobody would be interested,” one of the sources said.

The companies of the Eletrobras group owe state-run oil company Petrobras S.A. about 10 billion reais ($3.1 billion), mainly for fuel supplies for thermal power generation.

Eletrobras said it would not comment on the sales until shareholders have decided on a formula for the company's privatization.

On Wednesday, Chief Executive Wilson Ferreira Jr said Eletrobras will start selling stakes in dozens of ventures such as wind farms and transmission lines in October. ($1 = 3.1822 reais)



Reporting by Rodrigo Viga Gaier; Writing by Anthony Boadle; Editing by Sandra Maler from Reuters.

reuters.com 01 28 2017

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 

Nov 13-14 ;
Mexico City, Mexico

 

 

 

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.