Brazil's government plans to
renew concessions for electric utilities by presidential decree,
in a bid to reduce regulatory uncertainty that has damped
investments and mergers in the sector, Folha de S.Paulo
newspaper reported on Friday, citing a draft of the proposal.
The decision means the government has abandoned plans to
take back the concessions, which end between 2015 and 2020, and
auction them again, Folha said.
Officials at Brazil's Aneel utility regulator have argued
that electric utilities face difficulty in raising funds from
banks to invest in transmission lines or secure long-term energy
sales and purchase contracts because of doubts on the concession
renewal, the daily said.