SAO PAULO, Dec 4 (Reuters) - Brazil’s federal government is preparing a new aid package for the nation’s electricity distributors, a source with knowledge of the situation told Reuters on Thursday.
Brazil’s electricity distributors are currently dealing with high spot-market energy prices after low rainfall required the use of more expensive thermal power. In some cases tariffs charged to consumers, which are regulated and adjusted periodically, have not been enough to cover the higher costs.
The aid package will use part of a 4 billion reais ($1.56 billion) fund set aside by the government for the sector, said the source, who spoke on condition of anonymity due to the sensitivity of the talks.
The funding will not include bank loans, which have been part of previous aid packages to distributors, the source added.
$1 = 2.567 Brazilian reais Reporting by Aluisio Alves; Writing by Asher Levine Editing by W Simon