One day, Congress rejects taxes. The next, it sends us a bill for R$200 billion

Congress has frowned and warned that it will not accept Fernando Haddad's tax package. Showing that it is not joking, it inflicted severe defeats on the government this week: it put forward a proposal to suspend the increase in the IOF and overturned several of Lula's vetoes.

It turns out that, in this rush, the parliamentarians took the opportunity to resurrect the riders that will be paid by the energy consumer. Our electricity bill will be more expensive thanks to the kindness that the Legislature decided to do to entrepreneurs in the electricity sector, especially renewable energy generators.

Yes. One day, leaders in Parliament are shouting that Brazil can no longer afford taxes, subsidies and tax incentives. The next day, they are sending a bill of almost R$200 billion to the population to pay.

The cost of the benefits is estimated at R$197 billion by 2050, which should increase electricity bills by 3.5%, according to calculations by Abrace (an association of large consumers) and the National Front of Energy Consumers (FNCE).

The riders that Congress brought back to life oblige the country to contract a certain amount of renewable energy, regardless of supply and demand.

The "jabutizal" includes market reserve for small hydroelectric plants, extension of subsidized renewable energy contracts and mandatory contracting of a hydrogen plant in the Northeast and wind farms in the South.

It is worth remembering that, at this time, the National Electric Energy Operator (ONS) has cut part of the production of solar and wind farms for the simple fact that generation is above consumption.

As everything in the Legislative package is compulsory and largely subsidized, more competitive sources – that is, cheaper ones – will be automatically excluded from competition in future energy auctions.

The consumer is the one who pays. After all, we are used to it: in 2024, we will pay R$48 billion in all types of subsidies to the electricity sector, according to Aneel, the regulatory agency. Almost 15% of the bill goes to cover these favors.

The new benefits that increase electricity bills had been included by members of parliament last year in a bill that dealt with another issue – the regulation of offshore wind energy. After mobilizing organizations representing consumers, Lula vetoed the sections . What members of parliament and senators have done now is overturn the vetoes and, therefore, reestablish the benefits for generators.

Take a deep breath, because it could get worse. Congress has postponed the analysis of another provision, which requires the contracting of gas and coal-fired thermoelectric plants. If this point is also reinstated in the legislation, the impact by 2050 will total R$545 billion, equivalent to a 9% increase in the electricity bill, according to the PSR consultancy.

"By overturning the vetoes of the Offshore Wind Farms Law, the National Congress becomes responsible for the increase in Brazilians' electricity bills and for creating definitive chaos in the electricity sector," said the FNCE in a statement. The organization is considering filing a lawsuit with the Supreme Federal Court (STF) against the tariff hike.

In addition to all this, we will have to pay, as always, the annual energy adjustments and the "flags" that are added to the bill when there is no rain. And soon there will be another increase, of 1.4% , which the government has decided to pass on to the tariff of the "common" consumer in order to eliminate the electricity bill of the low-income population.