Brazil's dim future

By DANIEL HELFT The Industry Standard June 26, 2001

- As a rule, the only time Brazil's economically and racially diverse populace rallies together is to support the national soccer team. But squeezed by the worst energy crisis in their country's history, Brazilians have recently been demonstrating a surprisingly unified front - dimming lights and turning off TVs in a nationwide effort to cut energy consumption by 20 percent.

That's the magic figure Pedro Parente, the government's "blackout minister," estimates will prevent Brazil from falling foul to the rolling blackouts now tormenting Californians. Blackouts could also cripple the growth prospects of Latin America's largest economy and intensify the ripples of a recession running through an already uncertain region.

The emergency plan, announced in June by President Fernando Henrique Cardoso, asks households that consume on average more than 200 kilowatts per hour each month - about a third of Brazilian homes - to cut back by 20 percent compared to a year ago. For those who comply, energy will come cheaper and even for free. Those who don't will face surcharges of up to 200 percent of their electricity bill. Industry, too, has joined the effort. The government is offering companies an added incentive: They will be allowed to sell the energy they don't use to others.

Not surprisingly, Brazilians have become instant experts in energy conservation. "By now we know exactly how much electricity we'll burn each time we turn on a house appliance," laughs Margarita Palatnik, managing editor at the financial site Patagon.com.

The government has cut its own energy consumption 35 percent, turning off the lights on public buildings and monuments and dimming streetlights. And in a sign of just how serious the crisis is, nighttime soccer games have been banned.

Though Brazilians seem to have accepted the cutbacks, that doesn't mean they're applauding their government. After all, the crisis hit after a serious drought depleted reservoirs that feed Brazil's hydroelectric dams - the source of more than 90 percent of the nation's energy. Brazilians are now asking why their leaders never noticed such a glaring weakness. Other critics question whether a plan based on consumer benevolence can really succeed.

Brazil's leaders must hope it does, or they may soon find themselves permanently in the dark. As one popular e-mail message being forwarded around the country reads: "I will not use hot water. I will unplug my refrigerator and stop using my air conditioning. But next year, I will vote."

(Distributed by Scripps Howard News Service, http://www.shns.com.)

http://www.knoxstudio.com/shns/story.cfm?pk=BRAZIL-ENERGY-06-26-01&cat=II

-- Martin Thompson (mthom1927@aol.com), July 24, 2001

Answers

Of course the fact that there population has doubled in a short period of time doesn't have anything to do with there energy shortage. What's going to happen when there population doubles again?

-- Guy Daley (guydaley1@netzero.net), July 24, 2001.