Brazil's electricity regulator Aneel approved a R35bn ($6.7bn) budget for the 2023 CDE energy development fund.
The CDE is Brazil's most important financial mechanism to manage subsidies in the power market. All electricity consumers pay for CDE costs through tariffs. The fund finances tariff discounts for incentivized sectors, fuel costs for isolated systems' generation, and access to electricity for low-income consumers.
The 2023 budget is 9.4pc higher than the R32bn in 2022, mostly because of R702mn in subsidies that were added for off-grid generation. Recently-privatized Eletrobras will add another R620mn to the budget to compensate for being able to sell power from hydroplants that were financed by Brazilian consumers.
