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Alckmin Issues Partial Vetoes to Power-Sector Reform, Nixing Curtailment Payouts and PRP Shift

Officials cite consumer tariff increases from congressional add‑ons that created legal risk.

Overview

  • Acting president Geraldo Alckmin formalized more than ten vetoes to MP 1.304 in the Diário Oficial on November 25.
  • The government removed the broad curtailment compensation rule, retaining only the Eduardo Braga provision that limits payouts to cuts caused by transmission or reliability constraints.
  • An amendment to change the Price of Reference for Petroleum was rejected over concerns about legal uncertainty and threats to ongoing oil and gas investments, including projects affecting Petrobras.
  • Additional vetoes scrapped restrictions on new autoproduction arrangements, the use of CDE funds to distribute TV receiver equipment, and mandatory annual R&D and efficiency spending by power retailers.
  • The Planalto justification warned of higher electricity tariffs and judicial disputes, and Minister Alexandre Silveira noted the vetoes could face resistance in Congress.