Energy crisis leaves Brazil in perpetual twilight June 18, 2001

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By Carlos A. DeJuana

BRASILIA, Brazil (Reuters) - Like most Brazilians, Joao Ferreira is doing his best to meet the energy rationing targets unveiled by the government a month ago.

The restaurant manager says his house is a bit darker now with the lights off and that the television isn't on as often. Instead of doing laundry twice a week, his wife does it all at once.

``My biggest difficulty has been with the electric shower,'' says the father of two, referring to the energy-guzzling device typically used to heat Brazilian showers.

``I try to lower the temperature, but my kids only want to take hot showers.''

Long seen as a land of plenty, Brazil, Latin America's largest country, has found itself struggling with an acute energy shortage.

Experts blame poor government planning, underinvestment and a severe drought that has dried up the hydroelectric reservoirs which power about 90 percent of the country.

Aiming to avoid California-style power blackouts, the Brazilian government presented the emergency rationing program to this country of 170 million people on May 18.

Two weeks later, on June 1, it went into effect.

The announcement that the government would fine or, indeed, cut off power to consumers who didn't slash their energy consumption by an average of 20 percent sent Brazilians flying in search of energy economizing stoves and lamps.

Hit by a slew of lawsuits, the government has had to soften the measures.

But Brazilians are still unplugging their TVs and stereos with an almost religious zeal. And as stores flick off half the lights, shopping malls are caught in perpetual twilight.

NOT QUITE THERE

Despite the efforts, the three regions currently under rationing affecting about 80 percent of the population have not cut their energy use by enough yet.

In the first two weeks of rationing, the Center-West region and Southeast area, which includes the economic hubs of Sao Paulo and Rio de Janeiro, have slashed consumption by 16.9 percent, according to the National Grid Operator.

The Northeast, a tropical region increasingly geared toward the tourism industry, has saved 18.3 percent.

The Northern Amazon region is due to come under a softer rationing program in July.

But the government said last week that better-than-expected rains in the first few days of rationing helped offset the shortfall. If the rainfall remains heavier than predicted, the chances of blackouts and stiffer measures may decrease.

``The program is moving along fine,'' said Luciano Portolano, an energy analyst at ABN Amro in Sao Paulo.

``If things continue like they are, and we have some rain to help out, I think we can avoid blackouts,'' she said, adding that the most crucial months for rain will come later in the year.

Still, plans to boost power capacity and increase transmission lines have been dusted off but won't be on line until 2002.

And as some companies are forced to stall or lower production, economists say the rationing will cool Brazil's once red-hot economy, cutting its expansion this year to below 3 percent from earlier forecasts of over 4 percent.

One thing does appear sure, though. Just about everyone blames the government and President Fernando Henrique Cardoso, whose popularity has plunged. In Brasilia alone, Cardoso's approval rating has sunk to 28 percent from 46 percent in April, according to a poll in Correio Braziliense newspaper.

Lucia Helena Gomez reckons the government knew about the crisis and sprung the rationing on Brazilians to distract them from allegations of corruption in Cardoso's government.

The mother of two says the whole thing is depressing.

``Our soccer teams aren't doing well, the currency is depreciating and the Senate is full of corruption,'' she says.

She's turned the fax and stereo off at her newspaper stand and unscrewed the lightbulb in her refrigerator. Still, she says she won't meet her goal since she recently bought a computer.

``Once you computerize everything, you can't just undo it,'' she laments.

``This isn't a very serious country.''

http://www.individual.com/story.shtml?story=d0618111.000

-- Martin Thompson (mthom1927@aol.com), June 18, 2001

Answers

Brazil's Answer To Energy Crisis: Flashlights ( June 18, 2001 )

The lights of Rio are going dim or going out entirely.

At the famed Copacabana Palace hotel, they've cut off the distinctive outdoor lights. And the late night discos are switching to candle light.

Brazilians realized just how serious the country's energy crisis had become when night games for the soccer championships, a true passion, were cancelled at the Maracana Stadium, the world's largest stadium.

It's all part of a government edict to virtually every business and residence across Brazil to cut the use of electricity 20 percent or have the power cut off for up to six days.

The soccer finals had to be moved to a stadium deep in the Amazon region, where there's a surplus of electricity — something like moving both the Super Bowl and the World Series to the middle of South Dakota.

"We have a problem, we cannot lie about that anymore and we've got to ask the people for some sacrifice," says Eduardo Paes, the Brazilian secretary of environment. Paes is the official in charge of enforcing the mandatory cutbacks in Rio, a program which urges residents to buy flashlights and get used to a new, darker way of life.

"We're gonna cut the lights of your houses, your home, your office, your work, your company, your factory," he says. "Obviously we are facing bad moments and people are scared."

Severe Drought Halts Water Power

At the heart of Brazil's energy crisis is the fact that 90 percent of the country's power comes from water through hydro- electric dams. One of the worst droughts in memory has drastically cut the production of electricity.

It's a potential disaster for Brazil's economy, the eighth largest in the world.

But officials say they'd rather enforce these measures than damage the environment with more power plants.

"[If you come to Rio, you'll see] this beautiful view of the Sugar Loaf," says Paes, "you're not going to see it anymore." The lights will be extinguished. But not on the famed statue of Jesus that stands over Rio.

A television campaign to urge conservation is now underway and the true test will come next month when the new power bills are sent out. Those that failed to meet the required 20 percent cut will have their power shut off.

http://199.97.97.163/IMDS%PMAINTL0% read%/home/content/users/imds/feeds/abcnews/2001/06/18/eng- abcnews_world/eng-abcnews_world_222303_4724749690775306202

-- Martin Thompson (mthom1927@aol.com), June 19, 2001.

Having their power cut off? Doesn't that seem somewhat drastic? Can you imagine the hue and cries of protest in this country if a similar policy were implemented?

-- QMan (qman@c-zone.net), June 19, 2001.

I didn't realize that Brazil was the world's 8th largest economy. Drastic production cutbacks there cannot help but effect, adversely, the world's economy. What a kick in the head--after California, which ranks 5th.

How much more bad economic news do we need?

-- JackW (jpayne@webtv.net), June 19, 2001.