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More than 60% of industrialists believe that there will be rationing, points out CNI

 

 

A SURVEY SHOWS THAT 83% OF ENTREPRENEURS IN THE SECTOR FEAR INCREASED COSTS 

Beatriz Puente*, from CNN, in Rio de Janeiro  

August 10, 2021 at 2:15 pm | Updated August 10, 2021 at 7:22 pm

A survey carried out by the National Confederation of Industry (CNI) indicates that 63% of businessmen in the industrial sector believe that  electricity rationing  is a possibility for Brazil, given the low reservoirs and the red flag in the electricity bill.

The survey also points out that nine out of ten entrepreneurs are concerned about the current scenario of water crisis, and 98% believe that there will be an increase in prices. The biggest fear of the industrialists heard by the CNI is the increase in the cost of energy: 83% indicated this as the main concern.   

The water crisis is due to the low in the reservoirs of hydroelectric plants, which represent 60% of renewable energy production in the country and are the cheapest source. According to the Ministry of Mines and Energy, in July, the Southeast/Midwest and South subsystems operated below 50% of capacity: 25.97 and 47.87%, respectively. Northeast and North were a little better: 54.81% and 79.11%. However, the forecast is that the four subsystems present a fall in August. Thus, the Northeast would fall to 49% and would be the third to operate below 50%.    

Two weeks ago, the National Electric System Operator (ONS) warned that the level of reservoirs in Brazil could reach the limit in mid-November.  

INFLATION VILLAIN

The Extended National Consumer Price Index (IPCA) was pressured by the sector. Inflation was 0.96% in July, the highest value for the month since 2002 , and above the rate of June, which was 0.53%, according to data released by the Brazilian Institute of Geography and Statistics (IBGE) in this Tuesday (10). Electricity, which jumped 7.88% in July, had the biggest individual impact on the index.  

                                                              

CNI's energy specialist, Roberto Wagner Pereira, warned of the consequences of the water and energy crisis, which could affect the industrial sector.  

“There is a clear concern about the risk of rationing and rising energy costs. This may have an impact on the resumption of production in the industrial segment, at a time when the industry is starting to recover its productivity”, says Pereira.  

Among the businessmen consulted by the confederation, 22% claim that they intend to change the hours of operation of their companies to reduce energy consumption during peak hours, in response to the water crisis. However, nearly two-thirds of companies found implementing this time shift to be difficult or very difficult.  

CNI interviewed 572 companies, 145 of which were small, 200 medium and 227 large, in the period from June 25th to July 2nd. 

*Under supervision of Stéfano Salles

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Topicshttps://www.cnnbrasil.com.br/business/2021/08/10/mais-de-60-dos-industriais-acreditam-que-havera-reamento-aponta-cni

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