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If the Governor gives up appointing, he does not govern

Rafael Herzberg's picture
Consultant energy affairs, Self employed

Rafael Herzberg - is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil * Focus on C level, VPs and upper managers associated to energy related info,...

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  • Dec 27, 2023
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If the Governor gives up appointing, he does not govern
Ronaldo Caiado, Governor of Goiás (source Estadão)

This phrase really says it all!

Brazilian companies and public institutions are important tools in political bargaining.

It has always been like that. This is a "supra partisan" conduct. It's the famous "it's giving that you receive" as coined by the then deputy Roberto Cardoso Alves, in the last century.

In the energy sector, in particular, this "posture" has been rigorously followed for many decades and always allows for a list of "tortoises" (projects without economic sustainability, but which serve the interests of cronies).

For this central reason, the price of Brazilian energy has been the highest among the BRICS (Brazil, Russia, India, China and South Africa) for many years. The cost of the "tortoises" is shared - without ceremony - among all consumers.

This is despite the fact that our matrix is essentially renewable, which should result in lower costs than our competitors who need thermal plants that require expensive fuel.

The most necessary solution to "turn around this situation" is privatising companies in the sector. At least this madness would be put to rest.

When will we “get real”?

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