Spending on tackling the water crisis exceeds government estimates | Photo: Marcello Casal Jr / Agência Brasil
Expenditure resulting from measures taken against the country’s water crisis reached 16.8 billion reais – an amount that exceeds the estimate of 13 billion reais by the Ministry of Mines and Energy until November of this year. The cost includes actions such as the activation of thermoelectric power stations and the import of energy from Uruguay and Argentina.
As the file informs the “Estadão / Broadcast”, “the variation of the verified cost compared to the forecast is due to the deterioration of the operating conditions throughout 2021, as well as to the increase in the costs of fuel for the production of electricity from thermoelectric power stations “.
The measures were taken by the federal government in an attempt to prevent another blackout in the country throughout this year. The costs are pro-rated among all electricity consumers, and the increase is expected to continue in the years to come.
Also to finance the fight against the water crisis, the government this year instituted the “water scarcity flag”, which charges an additional R $ 14.20 for every 100 kilowatt-hours (kWh) consumed. In addition, the National Electric Energy Agency readjusted the energy tariff for Brazilian consumers by 52% in 2021.