Electricity rationing hammers Brazilian households

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Electricity rationing hammers Brazilian households June 4, 2001

By Andrei Khalip

RIO DE JANEIRO (Reuters) - Electricity rationing came down hard on households throughout energy-starved Brazil Monday, sparking a wave of anger and complaints that the government and power firms have mishandled the crisis.

Kilowatts replaced soccer game results as the main topic of conversation in streets and workplaces after households around this sprawling country received notices from their electricity companies detailing their new power quotas. Client support lines at power distribution companies were hopelessly tied up.

Power rationing for industry and commerce kicked into full swing Friday as the government sought to slash electricity usage in much of Latin America's largest country by 20 percent over the next six months.

President Fernando Henrique Cardoso, who has already softened the initial rationing plan following popular protests and legal challenges, met with the task force Monday to decide on the size of surcharges for quota-breakers.

Cardoso is expected to deliver a television address after the meeting. Local media have speculated he may halve the maximum surcharge of 200 percent or even scrap surcharges in order to avoid legal challenges.

Brazil crashed headfirst into its energy shortage after years of under-investment and poor planning left the country precariously dependent on hydroelectric plants for more than 90 percent of power. A recent severe drought tipped the balance.

LACK OF PREPAREDNESS STRIKES

Liete Couto Quintal, 33, received a monthly energy quota of 30 kilowatts per hour for a household of two, which is about enough to keep her refrigerator running for 10 days if all other domestic appliances and lights were switched off.

``The government has said that it will cut off power to quota-busters in the most appalling cases, but with a limit like that it is easy'' to far exceed the limit, she said. ``I'm scared they'll just cut us off.''

A tired phone operator at Rio de Janeiro's power utility Light finally explained to Quintal that there had been an error and all quotas below 100 KWH should be ignored.

Power companies, for their part, have lashed out at the government for waiting until the last minute to detail the plan. ``We don't know if there will be switchoffs, if surcharges will go or not -- there is too much confusion to say anything,'' said a spokeswoman for power distributors association Abradee.

Errors aside, energy-conscious consumers found themselves in a much more difficult situation than those who wasted electricity, while many houses with electric water pumps or stoves may simply be left without water and hot food.

``I don't know how to cut,'' said schoolteacher Luzia Costa dos Santos, 65, who is consuming 250 KWH and whose target now is 175 KWH. ``I'll be ironing clothes at my daughters' as she has a bigger quota. I hope she buys a washing machine, too.''

HASTY PLAN FOR SURPRISE CRISIS

Brazil's government, battling its worst power crunch in at least three decades, has thrown the plan together over the past few weeks, seeking to avert California-style blackouts.

Economists warn rationing would slow the growth of South America's largest economy to less than 3 percent this year, from a previously expected 4.5 percent, slash foreign investment and trigger layoffs.

A recent poll showed most Brazilians blame the government, not the drought, for the crisis. Most people believe the government had done nothing to avoid the crisis and even government officials admit they were caught by surprise.

The rationing plan has already run into legal hurdles as consumers protest surcharges and power cutoffs for exceeding quotas, arguing that electricity is an essential service.

And critics warn that rationing, especially a softer plan, may not be enough to avoid rolling blackouts. They say the government should have done more to develop power stations that rely on fuels including natural gas.

After more than a week of delays, the government Monday published a long-awaited set of rules for importing natural gas that may help Brazil draw investment into gas-fired plants.

The rules oblige state oil Petrobras to absorb fluctuations in the foreign exchange cost of imported natural gas, providing thermoelectric power plants with natural gas at a fixed price in local currency.

^ REUTERS@

http://www.individual.com/story.shtml?story=d0604161.800

-- Martin Thompson (mthom1927@aol.com), June 04, 2001

Answers

Tuesday, 5 June, 2001, 01:30 GMT 02:30 UK Power rationing hits Brazilians

Lights out: Brazil's radical plan takes effect

Millions of Brazilians have started to comply with an electricity rationing programme aimed at easing the country's acute energy crisis. The government has ordered consumers to make electricity savings of 20% or face heavy surcharges - or even temporary power cuts.

It's absurd, electricity is a basic, not a luxury Sao Paulo resident Amarilis Saraiva

Industry has been ordered to make cuts as well - all part of an attempt to tackle the shortages caused by a severe drought which has reduced Brazil's output of hydro-electric power.

But electricity companies say the plan is extremely difficult to implement because many people have not been properly notified of the targets and the companies lack the staff to go into homes and cut power supplies.

Confusion

The BBC's Tom Gibb in Sao Paulo says the rationing has started with a great deal of confusion.

Consumers and power companies have both attacked the government for not clearly outlining the guidelines.

Illegal electricity connections add to the problem "We don't know if there will be switch-offs, if surcharges will go or not," a spokesperson for a power distribution company told the Reuters news agency.

Others say they will not be able to meet the targets and are likely to have their power cut off.

"I don't know how to cut. I'll be ironing clothes at my daughter's as she has a bigger quota," schoolteacher Luzia Costa dos Sanos said.

Economic costs

Others oppose the order outright.

"It's absurd, electricity is a basic, not a luxury. With this rationing people are losing their rights," said Sao Paulo resident Amarilis Saraiva.

The government is facing a host of lawsuits designed to declare the measures unconstitutional, and President Fernando Henrique Cardoso has relaxed the initial rationing targets.

Our correspondent says electricity usage by both consumers and industry has fallen sharply over the last month.

A number of companies are also laying off workers amid predictions that the crisis could seriously hurt Brazil's economic recovery.

http://news.bbc.co.uk/hi/english/world/americas/newsid_1370000/1370332 .stm

-- Martin Thompson (mthom1927@aol.com), June 04, 2001.


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