Brazilian power companies brace for free market

Nov 16, 1998 01:00 AM

Oct. 5, 1998 It is not clear what will happen with the Brazilian energy market after 2003, when consumers will be freed to select their own energy suppliers.
Since 1995 large energy consumers, above 10 MW, were allowed free access to the market, and now consumers with 3 MW are also free to select supplies, while up to 2003 consumers up to 0,3 MW will also benefit.
Power distribution companies are busy reorganising operations, to offer services to keep customers. For instance Cemig plans to introduce a tailor made service in Minas Gerais state, that includes to set up 105 small power plants next to consumption centres, totalling a capacity of 1,600 MW or 28,5 % of the company's installed capacity.
Cemig, that receives 1.7 mm cmpd of natural gas also wants to expand to receive 12 mm cmpd, of which 5 mm cmpd to be used in thermal power generation and the remainder for industrial uses.
Cemig is also reorganising creating a holding to manage subsidiaries in power generation, transportation, and distribution.

Source: not available
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