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BRASILIA, Jan 12 (Reuters) - Special rate increases for some Brazilian electricity distributors are inevitable in the face of higher power costs from the giant Itaipu dam and expected increases in subsidies for system expansion and poor consumers, the head of Brazil's electricity regulator said on Monday.
Romeu Rufino, director general of the regulator, known as Aneel, said the additional subsidies will have to be made up by rate increases for consumers.
This is because the Treasury has no plans to put money in the country's CDE electricity subsidy and expansion fund in 2015 despite a Congressional plan to provide it with 9 billion reais ($3.37 billion) in its 2015 budget.
$1 = 2.6733 Brazilian reais Reporting by Leo Goy; Writing by Jeb Blount in Rio de Janiero; Editing by Leslie Adler