Author: Walter Fróes

Source: Canal Energia - RJ - ARTICLES - 28/08/2009

In just over a year, Brazil will meet President Lula's successor. Would it be premature to start discussing, at this moment, issues that will involve the country in the scenario of a new government? We understand that it is not. On the contrary, it is already necessary to establish some ideas so that the future federal administration can accurately assess economic and social priorities, continue the policy of fiscal responsibility and, above all, correctly choose the strategies that will be adopted. All this so that the country moves faster and faster towards the developed and fairer society that all Brazilians have dreamed of for decades.

Although the polls still have a few months to decide who will be the new holder of the Planalto Palace, except for some last minute surprise, there are the following postulants: Aécio Neves, Ciro Gomes, Dilma Rousseff, José Serra and Marina Silva. Of these, opinion polls generally highlight Dilma and Serra as those who currently have the highest support rates.

Assuming that the main candidates will be Dilma and Serra, what to think about the future of the electricity sector? Both have interventionist views. Minister Dilma, when at the head of the Ministry of Mines and Energy, built a model for the electricity sector that had the dual characteristic of preserving the fields conquered by the private sector and, at the same time, strengthening the State's presence in the energy segments in a different way. general. Also in this last line, the progress of conditions for the growth of the free market was interrupted. As for Governor José Serra, his attitude of imposing, without discussion, tax substitution in the payment of ICMS is symptomatic. His Finance Secretary even suggested that Aneel (National Electric Energy Agency) "shut up". Add to that your incessant war against the Central Bank, which is a regulatory agency.

From this angle, therefore, there would not be many differences between the two candidates. Given this scenario, the question would be: what is the Brazil we want?

Although there are still those who are longing for an orthodox State intervention in the economy in general, especially in view of the mistaken assessment of the current global crisis, it is fair to imagine and wish that Brazil deserves much more than that.

Obviously, the role played by the State cannot be ruled out, but our country cannot believe that it has a qualified managerial profile. Although there are some islands of excellence in public administration, it would be more appropriate for a country with the characteristics of Brazil for the State to formulate, regulate and inspect. Thus, there would be spaces for the private sector to fulfill its role, offering quality services and better prices to consumers.

In this sense, the candidates and the forces that support them are asked to simply let Brazil work. Those who travel through our country know that we have an extraordinary land, with countless opportunities in various fields, endowed with a hard-working, creative and responsible people. However, for these characteristics to stand out, there must be economic freedom. This is also true for the energy sector.

One of the biggest frustrations that Brazil has experienced in recent years was to find, in the moments before this crisis, that there was enormous international liquidity, associated with the great interest in channeling resources for investments in infrastructure in our country. however, there is great distrust in relation to the private initiative, making the available resources not to be directed to these projects. Only in the moments closest to the beginning of the crisis did the government wake up and make moves to take advantage of these resources. Meanwhile, we waste time and money, out of pure prejudice. Today, there is an interest in attracting capital, but international liquidity is no longer the same. What emerged from this crisis, specifically, were restrictions on the circulation of money. In short: we have lost magnificent opportunities to implement many infrastructure projects in Brazil, including in the electricity sector.

Future candidates for the Presidency of the Republic must understand that Brazil needs to improve the rules of the game. To achieve this, it is necessary to establish clearer and more stable regulations, strengthen regulatory agencies, and define the treatment that will be guaranteed to investors. Only then will we attract investments.

Investing in electricity is unattractive to anyone who is only interested in speculating. It is, after all, an area in which the results only appear after many years and heavy investments. So, only those who really believe in the country's potential are at risk in the electricity business. For these, it is necessary that the rules are solid, so that they can develop their projects and properly calculate the return on investments. It never hurts to remember that Brazil is not the only part of the planet that is attractive to investors.

In this sense, the future president needs to be aware that one cannot “play” with Aneel. We cannot have an electric sector regulatory agency just for “English to see”. The existence of a strong, well-structured agency, without political influence, with highly qualified technical staff, with an adequate budget and free from the current restrictions imposed by the Executive, is the best guarantee that can be offered to investors. Those who, in their conspiratorial reveries, believe that investors are interested in a disqualified agency are sorely mistaken. Far from it.

Investors want Aneel to be strong and in perfect operating condition. What is the point of having, today, for example, an agency that does not have enough staff to examine the projects presented to it?

The next election, therefore, is the perfect time to evaluate everything we have been doing in the field of electric energy, including the increasing use of fossil fuels in the electric matrix. Is this the way?

In matters that concern only the Executive, whoever succeeds President Lula needs to realize that it is no longer possible to live with secret minutes in the area of ​​electricity, when the internet is there to provide a huge service on behalf transparency.

With two strong candidates with such close ideas, the risks are great for those who believe in market freedom and the autonomy of regulatory agencies. It remains to be hoped that the future President of the Republic, whoever he may be, knows how to overcome some political and, perhaps, ideological convictions, and understands that Brazil has much more to gain from opening spaces for private investors and with the autonomy of regulatory agencies, especially Aneel.

Walter Fróes is the controller of CMU Comercializadora de Energia