The Financial Collapse of 2001 Unwinding Message Board

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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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To: Gemlaoshi who wrote (3877)	11/1/2019 6:51:59 AM
From: elmatador	Read Replies (1) of 13801

I recall when Brazil privatize the electricity sector and screwed. Their goal was to raise quickly cash (hyper-inflation had ended 1994/5 and this is important) and the best was to sell the Distribution but they kept the Transmission and Generation. They should have had privatized the whole sector, up and downstream. Here is where they made the mistake Post hyper inflation two things happened in parallel:. First the middle class expanded and consumed more. Second the Chinese started exporting cheap appliances and the consumers bought more electrical appliances. The sector were used to a type of long term planning and were caught with their pants down by the above. The Transmission had bottlenecks ended up causing the blackout of 2001. Worse: The Law of the Unintended Consequences struck. The left used the black out to attract the voters pissed with the incumbent and elected Lula. Big mistake. They learned the lesson and created the Energy Research Company - EPE in 2004. TThe Energy Research Company - EPE aims to provide services to the Ministry of Mines and Energy (MME) in the area of ??studies and research aimed at subsidizing the planning of the energy sector, covering electricity, oil and natural gas and their derivatives and biofuels. The company was created by means of an interim measure converted into law by the National Congress - Law 10.847, of March 15, 2004. And the realization took place in a decree of August 2004. The EPE was created with the aim of rescuing the constitutional responsibility of the national state to secure the foundations for the sustainable development of the country's energy infrastructure. Since its inception, EPE's activities have been consolidated as a fundamental part of a cycle of activities that begins with the definition of policies and guidelines within the scope of CNPE - National Energy Policy Council and MME. From these definitions materialize the studies and research that will effectively guide the development of the Brazilian energy sector.

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