Chesf reports losses of R$ 265,1 million in the first half of the year.
The São Francisco Hydroelectric Company (Chesf) recorded a net loss of R$ 265,1 million during the first half of this year; in the same period of 2012, the state-owned company reported a net profit of R$ 1,072 billion; the 124,7% decrease in the company's performance is mainly linked to the Federal Government's decision to reduce the electricity bill paid by Brazilian consumers.
PE247- The São Francisco Hydroelectric Company (Chesf) recorded a net loss of R$ 265,1 million during the first half of this year. In 2012, the state-owned company posted a net profit of R$ 1,072 billion. The 124,7% decrease in Chesf's performance is mainly linked to the Federal Government's decision to reduce the electricity bill paid by Brazilian consumers.
With this decision, since January Chesf has been forced to negotiate energy at lower prices than those previously practiced. As a result, the revenue generated by the operation (energy sales) and maintenance of the power plants has decreased by 53,5% in the first half of the year, going from R$ 3,5 billion in 2012 to R$ 2,5 billion in the first half of the year.
Law No. 12783, which regulated the reduction of tariffs, also standardized the compensation from the Federal Government related to investments made by companies whose concessions were due to expire in 2015. Chesf received a portion of the R$ 6,5 billion foreseen, and the remainder of the amount will only be transferred in 2015.
Part of the loss is also attributed to the ongoing Voluntary Dismissal Plan. The Company has allocated a provision of R$ 721 million to enable the VDP, which aims to reduce payroll expenses in the medium term.