BRASILIA, Jan 7 (Reuters) - State-run banks in Brazil will likely loan 2.5 billion reais ($932 million) to the country’s energy distributors as they face soaring power costs, the director of energy watchdog Aneel said on Wednesday.
The details of the loan from Banco do Brasil SA, Caixa Econômica Federal SA and state development bank BNDES are still being discussed by the country’s new finance and energy ministers, Aneel’s Reive Barros said.
The loans would cover short-term operations for November and December that the distributors have been unable to cover with fees from consumers, he said.
Power distributors have struggled to pay the country’s spot market electricity clearinghouse, known as the CCEE, since a drought that started a year ago reduced the energy available from hydroelectric dams, normally responsible for about two-thirds of the country’s electricity.
Distributors have had to buy spot market power, much of it generated by expensive natural gas or fuel oil, to meet rising consumer demand.
The loan in discussion would be the third to distributors in less than a year. In April, 10 banks provided a 11.2 billion reais loan and a second loan was secured in August.
Representatives from Caixa and Banco do Brasil did not immediately comment on the loan. A representative for BNDES was not immediately available for comment.
$1 = 2.68 reais Reporting by Leonardo Goy; Writing by Caroline Stauffer; Editing by Chris Reese