Eletrobras free market power prices up 24pc

Brazil's state-controlled power utility Eletrobras posted a 24pc increase in prices for power sold to bilateral contract clients during the first quarter of 2022, compared to the average price in the first quarter 2021.

The company sold power to free market clients at an average price of R202.00/MWh in the first quarter, while the average price a year earlier was calculated at R163.19/MWh. For regulated market consumers the increase was even steeper, with prices up by 30pc in the first quarter compared to the previous year to R395.46/MWh.

Eletrobras posted a 13pc decrease in the volume of energy sold during the first quarter compared to a year earlier, at 42.7TWh. But because of high power prices the company still increased its generation revenue to R6.5mn, from R5.8mn a year earlier.

The company's profit increased by 69pc, to R2.7bn in the quarter, compared to R1.61bn a year earlier.

The government is in the process of privatizing the company, currently waiting for a decision from the federal audit court (TCU) about its finances, after one of the court's ministers suspected Eletrobras might have set aside an extra R9bn ($1.75bn) as impairments.

By Rebecca Gompertz