President Luiz Inácio Lula da Silva intends to issue a provisional measure next week designed to reduce Brazil's electricity prices by securitizing payments owed by the country's largest power generation companyaccording to an official familiar with the plan.
The government hopes that the measure, which must be ratified by legislators after its publication, reduce the price of energy in the regulated market by 3.5% this yearaccording to a draft of the proposal to which Bloomberg had access.
The plan, Part of Lula's drive to boost economic growth without creating inflation is based on the securitization of payments that Centrais Eletricas Brasileiras SAwhich was privatized in 2022, must be carried out by the government.
The left-wing president has been putting pressure on cabinet members to present projects to shore up the economy and stop the decline in popularity before the municipal elections in October.
Negotiations between Eletrobras and the government are still ongoing, according to another person with direct knowledge of the matter. The provisional measure is an independent initiative, unrelated to the ongoing negotiation.
