Senate approves basic text for privatization of Eletrobras

Measure should return to the House after changes in senators; text has to be approved by Congress by the 22nd to not lose its validity

Fábio Rodrigues Pozzebom/Agência BrasilText that provides for the privatization of Eletrobras must be approved by the next 22nd in order not to lose its validity

The basic text of the Provisional Measure (MP) that makes the privatization of the Eletrobras was approved by the Senate on Thursday, 17, after a series of debates and changes in the version endorsed by Chamber of Deputies. The proposal received the approval of 42 senators, while 37 were against. As the senators passed the MP with amendments, the text goes back to a new vote by deputies. The agenda must be approved by the Congress until the next day 22 so as not to lose its validity. The MP’s vote was scheduled for Wednesday, 16, but was postponed amid negotiations with different parliamentary fronts to ensure approval. The rapporteur, senator Marcos Rogério (DEM-RO), changed part of his opinion this morning. Among the changes, he withdrew the amendment that determined the contracting of thermoelectric plants as a condition for the sale process and subsidies for coal until 2035.

The text was approved by the Chamber of Deputies on May 20 after changes in the highlights. MP 1031 was sent by the federal government in February this year, in the third attempt of the Unity since 2018 in privatize the company. The text provides for the capitalization of Eletrobras with the issuance of new shares in the financial market. The Union, which currently holds most of the company’s shares, will not be able to participate in this purchase, resulting in the reduction of its share to less than 50%. Despite no longer being the majority shareholder, the federal government will have a golden share, as the special actions that give veto power in strategic decisions are called. The text also determines that no shareholder can retain more than 10% of the company’s voting capital and that employees dismissed in the first year after capitalization can use the termination to buy shares at the price they had before the publication of the MP.

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