Subject: brazil ' s rationing plan : a step away from market mechanisms ? - cera
alert
title : brazil ' s rationing plan : a step away from market mechanisms ?
url : http : / / www 20 . cera . com / eprofile ? u = 35 & m = 2381
rationing plan continues to evolve as threat looms
brazil ? s hydro reservoirs ? current stored energy is well below the levels
necessary to assure supply throughout the dry season . despite a general
acceptance that rationing is becoming inevitable , the brazilian government has
not announced how it will be implemented . key issues include the following :
* it is too late to sufficiently increase supply to avoid a crisis .
* the power shortage could reduce gdp growth by 0 . 5 to 1 . 5 percent .
* immediate implementation of rationing will minimize the depth of the required
cuts .
* * end * *
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