Brazil Among Countries with Most Expensive Energy
The cost of electricity in Brazil is one of the highest in the world. To give you an idea, at the beginning of 2015, the Federation of Industries of Rio de Janeiro (Firjan) released a ranking where Brazil appeared in sixth place among the countries where energy is most expensive. According to the survey, the country was behind only India, Italy, Singapore, Colombia, and the Czech Republic.
International Comparison
Data from Firjan also indicated that the value of MW/h in Brazil was R$ 402.26, 46% higher than the international average, which was around R$ 275.00.
Causes of High Cost
But what are the reasons that make energy here so expensive? One of the main justifications is the excess of taxes that are levied on the bill. Currently, the final amount paid for energy involves federal, state, and municipal taxes and sectoral charges, which are added to the consumed value.
Bill Composition
The final amount that appears on the electricity bill is composed of 50% taxes and 50% of the amount actually spent by the consumer.
Economic Impacts
In addition to the impact on the life of the final consumer, more expensive energy makes it unfeasible to expand or build new factories, halts the implementation of enterprises, and also slows down infrastructure works. In other words, one thinks twice before investing, and this harms the country’s competitiveness in the most different sectors.
