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Furnas employees file a lawsuit against Eletrobras privatization

Hayden Walsh by Hayden Walsh
April 25, 2022
in News
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Furnas employees file a lawsuit against Eletrobras privatization
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The Furnas Employees Association (Asef) filed a public civil action against the privatization of Eletrobras, increasing the request for injunctions to suspend the process, which has been questioned by the parameters and methodologies used to calculate the sale price.

The request for an injunction to the Federal Court of the 1st region by the employees specifically questions the resolution of the National Energy Policy Council (CNPE) which, among other issues, established the value added by the new electricity generation concession contracts at around R$ 67 billion. electric energy conditioned to the granting of new concession contracts, whose object is the set of hydroelectric plants with a total of 26 gigawatts (GW) of installed capacity, to be granted as a result of Eletrobras privatization.

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In addition, Alef calls for greater transparency in the elaboration procedure, criteria and metrics of the respective resolutions and ordinance 544 of the Ministry of Mines and Energy (MME), which discusses the physical guarantees of the company’s hydroelectric plants.

The association emphasizes that the sale of a company the size of Eletrobras, the largest energy company in Latin America, cannot be done without the security of the correct valuation price, as would be happening, and that it is necessary to protect public assets.

“In this way, the privatization of a company of this magnitude with a patent potential to cause damage to public assets and, consequently, to the entire Brazilian population, is an event of necessary judicial assistance through public civil action, since it encompasses the collective and also the protection of public and social patrimony”, affirms the action.

Tags: EletrobrasEmployeesfileFurnaslawsuitprivatization
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Hayden Walsh

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